Article 4. Appraisal And Assessment
Section 7. Assessment and Appraisal of Real Property – All real properties, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is located using the governing schedule of value as basis.
For purposes of assessment, real property shall be classified as residential, agricultural, commercial, industrial, mineral and special. The City Assessor is required to prepared a schedule of values of all classes of real property found in the City every three (3) years for submission and approval by the Sanggunian Panlungsod pursuant to the rules and regulations promulgated by the Department of Finance.
Section 2 (A) (4). Assessment Levels – The assessment levels to be applied to the current and fair market value of real property for taxation purposes shall be as follows:
(a) On Lands
Class Assessment Levels
Residential------------------------------------20%
Commercial-----------------------------------50%
Industrial---------------------------------------50%
Agricultural------------------------------------40%
(b) On Buildings and Other Structure
a. Residential
Fair Market Value
Over Not Over Assessment Level
PhP175,000.00 0%
175,000.00 300,000.00 10%
300,000.00 500,000.00 20%
500,000.00 750,000.00 25%
750,000.00 1,000,000.00 30%
1,000,000.00 2,000,000.00 35%
2,000,000.00 5,000,000.00 40%
5,000,000.00 10,000,000.00 50%
10,000,000.00 60%
b. Commercial / Industrial
Fair Market Value
Over Not Over Assessment Value
PhP300,000.00 30%
300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
750,000.00 1,000,000.00 50%
1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
5,000,000.00 10,000,000.00 75%
10,000,000.00 80%
(c) On Machineries
Class Assessment Levels
Commercial 80%
Industrial 80%
(d) On Special Classes – The assessment levels for all lands, buildings and machineries and other improvements:
Actual Use Assessment Levels
Recreational 15%
Cultural 15%
Educational 15%
Scientific 15%
Hospital 15%
Local Water Company 10%
Government-owned or controlled
corporations engaged in the supply
& distribution of water &/or generation
& transmission of electric power 10%
the assessment levels in paragraph (a) hereof shall be applied initially during the first general revision of real property to be undertaken pursuant to Sections 2 (A) (25) & Section 2 (A) (28) of this Code.
Section 9. Imposition of the Basic Real Property Tax – There is hereby levied an annual ad valorem tax on the assessed value of real property such as land, buildings, machinery and other improvements affixed or attached to real property located in the City of Olongapo, at the following rate:
Class of Property Rates of Levy %
Residential 2.00%
Commercial 2.00%
Industrial 2.00%
Special 2.00%
Agricultural 2.00%
Mineral 2.00%
Section 10. Additional Levy on Real Property Tax for the Special Education Fund (SEF) – There is hereby levied an annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF).
Section 11. Classes of Real Property for Assessment Purposes – For purposes of assessment, real property shall be classified as residential, commercial, industrial, agricultural, mineral or special by the City Assessor.
Section 12. Special Classes of Real Property – All lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water company, and government-
owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power shall be classified as special.
Section 13. Actual Use of Real Property as Basis for Assessment – Real property shall be classified, valued, and assessed on the basis of its actual use regardless of where located, whoever owns it, and whoever uses it.
Section 14. Time of Payment – The real property tax herein levied together with the additional levy on real property for the Special Education Fund shall be due and payable on the first (1st ) day of January. The same may, however, at the discretion of the taxpayer, be paid without interest/penalty in four (4) equal instruments: the first installment, on or before March 31; the second installment, on or before June 30; the third installment, on or before September 30; and the last installment, on or before December 31.
Both the basic tax and the additional one percent (1%) SEF tax must be collected simultaneously. Payment of real property taxes shall first be applied to prior years delinquencies, interests, and penalties, if any and only after said delinquencies are settled, tax payments may be credited for the current period.
Section 15. Tax Discount for Advance and Prompt Payment – (Based on Ordinance No. 51, Series of 1997) if both the basic real property tax and additional SEF tax or the whole amount of assessed taxes due in a given tax year are paid in full on or before the first working day of January of that particular year, the taxpayer shall be entitled to a twenty percent (20%) discount for “Advance Payment”. Provided, however, that when taxes due on either the 1st , 2nd , 3rd and 4th quarters are paid in advance before the beginning of any particular quarter or quarters in addition to the taxes due on the current quarter, the taxpayer shall be entitled to a discount of ten percent (10%) for “Accelerated Payment.” When, however, taxes due within a given quarter is paid on time, that is within the particular period, the taxpayer is given a five percent (5%) discount for “Prompt Payment.” Provided further, that such discounts shall only be granted to properties without any delinquency.
Section 16. Collection and Distribution of Proceeds – The collection of the real property tax with interest thereon and related expenses, and the enforcement of the remedies provided for in this Article or any applicable laws, shall be the responsibility of the City Treasurer. The City Treasurer may deputize the Barangay Treasurer to collect all taxes on real property located in the barangay; Provided, however, that the premium on the bond shall be paid by the City Government.
The proceeds of the real property tax, including interest thereon, the proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction, and fifty percent (50%) of the tax paid under protest in accordance with the provisions of this Article; shall be distributed as follows:
(a) City Share – Seventy percent (70%) to the general fund of the City of Olongapo; and
(b) Barangay Share – Thirty percent (30%) which shall be distributed among the component barangays of the City in the following manners:
1. Fifty percent (50%) share shall accrue to the barangay where the property is located.
2. Fifty percent (50%) shall be divided equally among the component barangays.
The share of the barangay shall be released directly to the Barangay Treasurer within five(5) Days after the end of each quarter without the need of any further action, and shall not be subject to any lien or holdback for whatever purpose subject to such rules as may be prescribed by the Commission on Audit.
The proceeds of the additional one percent (1%) SEF tax shall accrue entirely and shall be automatically released to the City School Board for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development.
Section 17. Appraisal of Real Property – All property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the City in accordance with the rules and regulations promulgated by the Department of Finance for classification, appraisal and assessment for real property pursuant to the provisions of the Local Government Code.
Section 18. Declaration of Real Property by the Owner or Administrator. – It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements within the City of Olongapo, or their duly authorized representative, to prepare, or cause to be prepared, and file with the City Assessor, a sworn statement declaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. Such declaration shall contain a description of though property sufficient in detail to enable the Assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein referred to shall be filed with the City Assessor once every three (3) years during the period from January first (1st) to June thirtieth (30th) commencing with the calendar year 2002. Provided, that, any person acquiring at any time real property in Olongapo City shall file with the City Assessor a sworn statement declaring the true value of the subject property within sixty (60) days after the acquisition or upon completion or occupancy of the improvement, whichever comes earlier.
For this purpose, the City Assessor shall use the standard from known as Sworn
Declaration of Property Values prescribed by the Department of Finance. The procedures in filing and the safekeeping thereof shall be in accordance with the guidelines issued by the said Department.
Failure on the part of the real property owner or administrator to file the sworn statement within the prescribed period as herein above fixed shall be penalized based on the total fair market value of real property whether previously declared or undeclared, taxable or exempt based on the following schedule of penalties(based on Ordinance No. 116, Series of 2000):
RESIDENTIAL LANDS AND IMPROVEMENTS
MARKET VALUE PENALTIES
175,001 Below 175,000 = PhP 100.00
175,010 - 300,000 = 200.00
300,010 - 500,000 = 300.00
500,010 - 750,000 = 400.00
750,010 - 1,000,000 = 500.00
1,000,000 - 2,000,000 = 1,000.00
2.000,000 - 5,000,000 = 2,000.00
5,000,000 - 10,000,000 = 3,000.00
10,000,010 Above = 5,000.00
COMMERCIAL OR INDUSTRIAL LANDS & IMPROVEMENTS
INCLUDING MACINERIES
MARKET VALUE PENALTIES
300,001 Below 300,000 = PhP 500.00
300,010 - 500,000 = 600.00
500,010 - 750,000 = 800.00
750,010 - 1,000,000 = 1,000.00
1,000,010 - 2,000,000 = 2,000.00
2,000,010 - 5,000,000 = 3,000.00
5,000,001 -
5,000,010 - 10,000,000 = 4,000.00
10,000,010 - above = 5,000.00
For purposes of this Section, a building, whether residential or commercial, having a Market Value of less than PhP175,000 and is the only one owned by a declarant in Olongapo is EXEMPT from penalty.
Section 19. Duty of Person Acquiring Real Property or Making Improvement Thereon. –
(a) It shall be the duty of any person or his authorized representative,
acquiring at any time real property situated in the City or making any
improvement of real property, to prepare, or caused to be prepared, and
file with the City Assessor, a sworn statement declaring the true value
of subject property, within (60) days after the acquisition of such
property or upon completion or occupancy of the improvement,
whichever come earlier.
(b) In the case of houses, buildings, or other improvement acquired or
newly constructed which will require building permits, property
owners or their authorized representatives shall likewise file a sworn
declaration of the true value of the subject house, building, or other
improvement within (60) days after: (1) the date of a duly
notarized final deed of sale, contract, or other deed of conveyance
covering the subject property executed between the contracting parties;
(2) the date of completion of occupancy of the newly constructed
building, house, or improvement whichever comes earlier; and (3) the
date of completion or occupancy of any expansion, renovation, or
additional structures or improvement made upon any existing building
house, or other real property, whichever comes earlier.
(c)In the case of machinery, the sixty-day period for filing the required
sworn declaration of property values shall commence on the date of
installation thereof as determined bi the City Assessor. For this
purpose, the City Assessor may secure certification of the building
official or engineer.
(d)Property owners or administrators who fail to comply with the above
provision shall be subject to a penalty based on a schedule of penalties
provided for in Section 2 (A) (14) of this Code.
Section 20. Declaration of Real Property by the City Assessor. –
(a) When any person, natural or juridical, by whom real property is
required to be declared under Sections 2 (A) (14) and 2 (A) (15) of
this Code refuses or fail for any reason to make such declaration
within the time prescribed, the City Assessor shall himself declare
the property in the name of defaulting owner, and shall assess the
property for taxation in accordance with the provisions of this Article.
(b) In case of real property discovered whose owner or owners are
unknown, the City Assessor shall likewise declare the same in the
name of the Unknown Owner until such time that a person, natural
or juridical, comes forth and files the sworn declaration of property
values required under either Sections 2 (A) (14) and 2 (A) (15) of
this Code, as the case may be.
(c) No oath shall be required of a declaration made by the City Assessor.
Section 21. Listing of Real Property in the Assessment Roll. –
(a) The City Assessor shall prepare and maintain an assessment roll
wherein all real property shall be listed whether taxable or exempt,
located within the territorial jurisdiction of the City. Real property
shall be listed, valued and assessed in the name of the owner or
administrator, or anyone having legal interest in the property.
(b) The undivided property of a deceased person may be listed, values
and assessed in the name of the estate or of the heirs and devisees
without designating them individually, and undivided real property
other than that owned by a deceased may be listed, valued and
assessed in the name of one or more co-owners: Provided, however,
that such heir, devisee, or co-owner shall be liable severally and
proportionately for all obligations imposed by this Article and the
payment of the real property tax with respect to the undivided
property.
(c) The real property of a corporation, partnership, or association shall be
listed, valued and assessed in the same manner as that of an individual.
(d) Real property owned by the Republic of the Philippines, its
instrumentalities and political subdivisions, the beneficial use of
which has been granted, for consideration or otherwise, to a taxable
person, shall be listed, valued, and assessed in the name of the
possessor, grantee or of the public entity if such property has been
acquired or held for resale or lease.
Section 22. Proof of Exemption of Real Property from Taxation. – Every person, by or for whom real property is declared, who shall claim tax exemption for such property under this Articles, shall file with the City Assessor within (30) days from the date of the declaration of real property sufficient documentary evidence in support of such claim including corporate charters, title of ownership, articles of incorporation, by-laws, contracts, affidavits, certifications and mortgage deeds, and similar documents.
Section 23. Real Property Identification System. – All declarations of real property, made under the provisions of this Article shall be kept and filed under a uniform classification system to be established by the City Assessor pursuant to the guidelines issued by the Department of Finance (DOF) for the purpose.
Section 24. Notification of Transfer of Real Property Ownership. –
(a) Any person who shall transfer real property ownership to another shall
notify the City Assessor within sixty- (60) days from the date of such
transfer. The notification shall include the mode of transfer, the
description of the property alienated, the name and address of the
transferee.
(b) In addition to the notice of transfer, the previous property owners shall
likewise surrender to the City Assessor the tax declaration covering the
subject property in order that the same be cancelled from the
assessment records. If, however, said previous owner still owns
property other than the property alienated, he shall, within the
prescribed sixty-days (60) period, file with the City Assessor, an
amended sworn declaration of the true value of the property or
properties he retains in accordance with the provisions of the Secs. 2
(A) (14) and 2 (A) (15) of this Code.
Section 25. Duty of Register of Deeds to Apprise City Assessor of Real Property Listed in Registry.
(a) To ascertain whether or not any real property entered in the Registry
of Property has escaped discovery and listing for the purpose of
taxation, the Register of Deeds shall prepare and submit to the City
Assessor, within six (6)months from the date of the Local Government
Code(January 1, 1992) and every year thereafter, an abstract of the
registry, which shall include brief but sufficient description of real
properties entered therein, their present owners, and the dates of their
of their most recent transfer or alienation accompanied by copies of
corresponding deeds of sale, donation, or partition or other forms of
alienation.
(b) It shall be the duty of the Register of Deeds to require every person
who shall present for registration a document of transfer, alienation or
encumbrance of real property, to accompany the same with a
certificate to the effect that the real property subject for transfer,
alienation, or encumbrance, as the case may be, has been fully paid of
all real property taxes due thereon. Failure to provide such certificate
shall be a valid cause for the Register of Deeds to refuse the
registration of the documents.
© The Register of Deeds and Notaries Public shall furnish the City
Assessor with copies of all contracts, selling, transferring, or otherwise
conveying, leasing, or mortgaging real property registered by or
acknowledged before them, within thirty- (30) days from the date of
registration or acknowledgement.
Section 26. Duty of Official Issuing Building Permit or Certificate of Registration of Machinery to Transmit Copy to the City Assessor. –
(a) Any public official or employee who may now or hereafter be
required or regulation to issue to any person a permit for the
construction, additional, repair, or renovation of a building, or
permanent improvement on land, or a certificate of registration for any
machinery, including machines, mechanical contrivances, and
apparatus, attached or affixed on land or to another real property, shall
transmit a copy of such permit or certificate within thirty (30) days of
its issuance to the City Assessor.
(b) Any official referred to in paragraph (a) hereof shall likewise furnish
the City Assessor with copies of the building floor plans and/or
certificate of registration or installation of other machineries which
may not be permanently or temporarily attached to land or another real
property but falling under the definition of the machinery as per rules
and guidelines issued by the Department of Finance (DOF).
Section 27. Duty of Geodetic Engineers to Furnish Copy of Plans to the City Assessor. – It shall be the duty of all Geodetics Engineers, public or private, to furnish
Free of charge to the City Assessor with a white or blueprint copy of each of all approved original or subdivision plans or maps of surveys executed by them within thirty (30) days from receipt of such plan from the Land Management Bureau, the Land Registration Authority, or the Housing and Land Use Regulatory Board as the case may be.
Section 28. Preparation of Schedule of Fair Market Values. –
(a) Before any general revision of property assessment is made pursuant
to the provision of this Article, there shall be prepared by the City
Assessor a schedule of fair market values for the different classes of
real property situated in the City for enactment of a separate ordinance
by the Sangguniang Panlungsod. The schedule of fair market values
shall be published in a newspaper of general circulation in the City or
in the absence thereof, shall be posted in the City Hall and in two other
conspicuous public places in the City.
(b) In the preparation of schedules of fair market values, the City Assessor
shall be guided by the rules and regulations issued by the Department
of Finance.
Section 29. Authority of City Assessor to Take Evidence. – For the purpose of
obtaining information on which to base the market value of any real property, the City Assessor or his deputy may summon the owners of the properties to be affected or persons having legal interests therein and witnesses, administer oath, and take deposition concerning the property, its ownership, nature, and value.
Section 30. Amendment of Schedule of Fair Market Values. – The City Assessor may recommend to the Sangguniang Panlungsod amendments to correct errors in valuation in the schedule of fair market value. The Sanggunian shall act upon the recommendation within ninety (90) days from receipt thereof.
Section 31. General Revision of Assessments and Property Classification.
(a) The City Assessor shall undertake a general revision of real property
assessment and once every three (3) years thereafter.
(b) The general revision of assessments and property classification shall
commence upon the enactment of an ordinance by the Sangguniang
Panlungsod adopting the schedule of fair market values but not later
than December 31, 1993.
Section 32. General Revision Assessment; Expenses Incident Thereto. –
Expenses incident to the general revision of real property assessment shall be shared proportionately by the City, City Schools Board and the barangays. The share of the City shall be provided in the appropriation ordinance. The share of a barangay shall be based on its share of the proceeds of the real property law.
Section 33. Valuation of Real Property. – In case where (a) real property is declared and listed for taxation purposes for the first time; (b) there is an ongoing general revision of property classification and assessment; or (c) a request is made by the person in whole name the property is declared, the City Assessor or his duly authorized deputy shall, in accordance with the provisions of this Article, make a classification the property is declared, the City Assessor or his duly authorized deputy shall, in accordance with the provisions of this Article, make a classification, appraisal and assessment of the real property and the same shall not be increased oftener than once every three (3) years except
in case of new improvements substantially increasing the value of said property or any change in its actual use.
Section 34. Date of Effectivity of Assessment or Reassessment. –All assessments or reassessment made after the first(1st) day of January of the succeeding year: Provided, however, that the real property due to its partial or total destruction, or to a major change in its actual use, or to any great or sudden inflation or deflation of real property.
Values, or to the illegality of the assessment when made or to any other abnormal cause, shall be made within ninety (90) days from the date any such cause occurred, and shall take effect at the beginning of the quarter next following the reassessment.
Section 35. Assessment of Property Subject to Back Taxes. – Real property declared for the first time shall be assessed for taxation purposes for the period during which it should have been liable but in no case for more than ten (10) years prior to the date of initial assessment: Provided, however, that such taxes shall be computed on the basis of the applicable schedule of values. Assessments levels or taxes rates in force during the corresponding period.
If such taxes are paid on or before the end of the quarter following the date the notice of assessment was received by the owner or his representative, no interest for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of two percent (2%) per month or a fraction thereof, from the date of receipt of the assessment until such taxes are fully paid.
Section 36. Notification of New or Revised Assessment. - When real property is assessed for the first time or when an existing assessment is increased or decreased, the City Assessor shall, within thirty (30) days, give written notice of such new or revised assessment to the person in whose name the property is declared. The notice may be delivered personally or by registered mail or through the assistance of the Punong Barangay to the last known address of the person to be served.
Section 37. Appraisal and Assessment of Machinery. –
(a) The fair market value of a brand new machinery shall be the acquisition cost including the installation cost freight. In all other cases, the fair market value shall be determined by dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost.
(b) If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling and installation charges at the present site. The cost in the foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency rate as fixed by the Bangko Sentral ng Pilipinas.
Section 38.Depreciation Allowance of Machinery. – For purposes of Assessment, a depreciation allowance shall be made for machinery at a rate of five percent (5%) of its cost or its replacement or reproduction cost, as the case may be, for each year of use: Provided, however, that the remaining value for all kinds of machinery
shall be fixed at twenty percent (20%) of such original replacement, or reproduction cost for so long as the machinery is useful and in operation.
Section 39. Organization, Powers Duties, and Function of the City Board of Assessment Appeals. –
(a) The City Board of Assessment Appeals shall be composed of the Register of Deeds of the City, as Chairman, the Prosecutor designated or assigned to the City and the City Engineer as Members, who shall serve as such in an ex-officio capacity without additional compensation.
(b) The Chairman of the Board shall have the power to designate any employee of the City to serve as Secretary to the Board also without additional compensation.
(c) The Chairman and Members of the City Board of Assessment Appeals shall assume their respective positions without need of further appointment or special designation immediately upon effectivity of this Code. They shall take an oath or affirmation of office i9n the manner herein set forth:
I,___________________, after having been appointed to the position of ________________, in the City of Olongapo and now assuming my position as ___________________of the City Board of Assessment Appeals solemnly swear that I will faithfully discharge to the best of my ability the duties of this position and of al others that I am holding, or may hereafter hold, under the Republic of the Philippines, and that I will support and defend the Constitution of the Philippines, and I will obey the laws and legal orders promulgated by the duly constituted authorities of the Republic of the Philippines, and that I will well and truly hear and determine all matters and issues between taxpayers and the City Assessors submitted for my decision, and that I impose this obligation upon myself voluntarily, without mental reservation or purpose of evasions.
So help me God. ____________________
Signature
Subscribed and sworn to before me on this __________ day of ____________,
200___ at ______________________________ Philippines.
_____________________
Signature of Officer
Administering Oath
Section 40. Meeting and Expenses of the City Board of Assessment Appeals.
(a) The City Board of Assessment Appeals shall meet once a month and as often as necessary for the prompt disposition of appealed cases. No member of the Board shall be entitled to per diems or traveling expenses for his attendance
in Board meetings, except when conducting an ocular inspection in connection with a case under appeal.
(b) All expenses of the Board shall be charged against the General Fund of the City Mayor and the Sangguniang Panlungsod shall appropriate the necessary funds to enable the Board to operate effectively.
Section 41. Filing of Assessment Appeals. – Any owner or person having legal interest in a property who is not satisfied with the action of the City Assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the City Board of Assessment Appeals by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declaration and such affidavits or documents submitted in support of the appeal.
Section 42. Action by the City Board of Assessment Appeals. –
(a) The Board shall decide the appeal within one hundred twenty (120) days from the date of receipt of such appeal. The Broad, after hearing,
shall render its decision based on substantial evidence or such relevant
evidence on record as a reasonable mind will accept as adequate to
support the conclusion.
(b) In the exercise of its appellate jurisdiction, the board shall have the
power to summon witnesses, administer oaths, conduct ocular
inspections, take depositions, and issue subpoena ad testificandum and
subpoena duces tecum. The proceedings of the Board shall be
conducted solely for the purpose of ascertaining the facts without
necessarily adhering to technical rules applicable in judicial
proceedings.
© The Secretary of the Board shall furnish the owner of the property or
the person having legal interest therein and the City Assessor with a
copy of the decision of the Board. In case the City Assessor concurs in
the revision or the assessment, it shall be his duty to notify the owner
of the property or the person having legal interest therein of such fact
using the form prescribed for the purpose. The owner of the property
or the person having legal interest therein or the City Assessor who is
not satisfied with the decision of the Board may, within thirty (30)
days after receipt of the decision of said Board, appeal to the Central
Board of Assessment Appeals. The decision of the Central Board of
Assessment Appeals shall be final and executory.
Section 43. – Effect of Appeal on the Payment of Real Property Tax –
Appeal on assessment of real property made under the provisions of this Code shall, in no
case, suspend the collection of the corresponding realty taxes on the property involved as
assessed by the City Assessor, without prejudice to subsequent adjustment depending
upon the final outcome of the appeal.
Section 44. – City Assessor to Furnish City Treasurer with Assessment Roll. –On or before the thirty-first (31st) day of December of each year, the City Assessor shall
Submit an assessment roll containing a list of all persons whose real properties have been
newly assessed or reassessed and the values of such properties to the City Treasurer.
Section 45. – Notice of times for Collection of Taxes. – The City Treasurer shall, on or before the thirty-first (31st) day of January each year, in the case of the basic
real property tax and the additional tax for the SEF or any other date to be prescribed by
the Sangguniang Panlungsod in the case of any other tax levied under this Chapter, post
the notice of the dates when the tax may be paid without interest at a conspicuous and
publicly accessible place at the City Hall. Said notice shall likewise be published in a
newspaper of general circulation in the locality once a week for two (2) consecutive weeks.
Section 46. – Payment Under Protest –
(a) No one shall be entertained unless the taxpayer first pays the tax. There shall
be annotated on the tax receipts the words “paid under protest.” The protest
in writing must be filed within thirty (30) days from payment of the tax to the
City Treasurer who shall decide the protest within sixty (60) days from
receipt thereof.
(b) Fifty percent (50%) of the tax paid under protest shall be held in trust by the
City Treasurer. The other fifty percent (50%) shall form part of the proceeds
to be distributed in accordance with Section (A) (12) of this Code.
© In the event that the protest is finally decided in favor of the taxpayer, the
amount or portion of tax protested shall be refunded to the protestant, or
applied as tax credited against his existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of the sixty-day period
prescribed in subparagraph (a), the taxpayer may, within sixty (60) days from
the date of receipt of the written notice of assessment, appeal to the City
Board of Assessment Appeals by filing a petition under oath in the standard
form prescribed thereof, together with copies of the tax declaration and such
affidavits or documents in support of the appeal.
Section 47. – Notice of Delinquency in the Payment of the Real Property Tax.
(a) When the real property tax or any other tax imposed under this
Chapter, becomes delinquent, the City Treasurer shall immediately
cause a notice of delinquency to be posted at the main entrance of the
City Hall and in a publicly accessible and conspicuous place in each
barangay or be published once a week for two (2) consecutive weeks
in a newspaper of general circulation in the City.
(b) Such notice shall specify the date upon which the tax becomes
delinquent and shall state that personal property may be distrained to
effective payment. It shall likewise state that at any time before the
distraint of personal property, payment of tax with surcharges,
interests and penalties may be made in accordance with Section 2 (A)
(66) of this Code, and unless the tax, surcharges and penalties are paid
Before the expiration of the year for which the tax is due, except when
the notice of assessment or special levy is contested administratively
or judicially, the delinquent real property will be sold at public
auction, and the title to the property will be vested in the purchaser,
subject, however, to the right of the delinquent owner of the property
or any person having legal interest therein to redeem the property
within one (1) year from the date of sale.
Section 48. – Remedies for the Collection of Real Property Tax – For
collection of the basic real property tax and any other tax levied under this Chapter, the
City may avail of the remedies by administrative action through levy on real property and
sale of real property by public auction or by judicial action.
Section 49. – City Government’s Lien.- The basic real property tax and any other tax levied under this Chapter, constitutes a lien on the property subject to tax, superior to all liens, charges or encumbrances in favor in any person, irrespective of the owner or possessor thereof, enforceable by administrative or judicial action and may only be extinguished upon payment of the tax and the related interests and expenses.
Section 50. Levy on Real Property. – After the expiration of the time required to pay the basic real property tax or any other tax levied under this Chapter, real property subject to such tax may be levied upon through the issuance of a warrant of levy on or before, or simultaneously with, the institution of the civil action for the collection of the delinquent tax. The City Treasurer, when issuing a warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of a legal execution throughout the City. The warrant shall be mailed to or served upon the delinquent owner of the real property or person having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or the occupant of the property. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the City Assessor and the Register of Deeds of the City, who shall annotate the levy on the Tax Declaration and Certificate of the Title of the Property, respectively.
The levying officer shall be submit a report of the City Mayor and the Sangguniang Panlungsod on the levy within ten 10(days) after receipt of the warrant by the owner of the property or person having legal interest therein.
Section 51. Penalty for Failure to Issue and Execute the Warrant. – Without prejudice to criminal prosecution under Revised Penal Code and other applicable laws, the City Treasurer or his deputy who fails to issue or execute the warrant of levy within 1 (one) year from time the tax becomes delinquent or within thirty (30) days from the date of the issuance thereof, or who is found guilty of abusing the exercise thereof in an administrative or judicial proceeding shall be dismissed from the service.
Section 52. Advertisement and Sale. – Within thirty (30) days after service of the warrant of levy, the City Treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be affected by posting a notice
At the main entrance of the City Hall and in a public accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the City. The advertisement shall specify the amount of the delinquent tax, the interest, due thereon and expenses of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein, may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the City Hall building, or on the property to be sold, or at any other place as specified in the notice of sale.
Within thirty (30) days after the sale, the City Treasurer or his deputy shall make a report thereof to the City Mayor and the Sangguniang Panlungsod, and which shall form part of his records. The City Treasurer shall likewise prepare and deliver to the purchaser a Certificate of Sale which shall contain the name of the purchaser; a
description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings. Provided however, that proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.
The City Treasurer may advance an amount sufficient to defray the cost of collection through the remedies provided for in this Article, including the expenses of advertisement and sale.
Section 53. Redemption of Property Sold. – Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest thereon, or his representative shall have the right to redeem the property upon payment to the City Treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency of the date of sale, plus interest of two (2 ) percent (2%) per month on the purchase price from the date of redemption. Such payment shall invalidate the Certificate of Sale issued to the purchaser and to the owner of the delinquent real property or person having legal interest therein shall be entitled to a Certificate of Redemption which shall be issued by the City Treasurer or his deputy.
From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof.
The City Treasurer or his deputy upon receipt of the Certificate of Sale, from the purchaser shall forthwith return to the latter the entire amount paid by him plus interest of (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale.
Section 54. Final Deed to Purchaser. – In case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the City Treasurer shall execute a deed conveying to the purchaser said property free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests.
Section 55. Purchase of Property by the City Government for Want of Bidder. – In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay real property tax and the related interest and cost of sale, the City Treasurer conducting the sale shall purchase the property in behalf of the City Government to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected on the records of his office to the City Mayor and Sangguniang Panlungsod. It shall be the duty of the Register of Deeds upon registration with his issuance of any such declaration of forfeiture to transfer the title of the forfeited property to the City without the necessity of an order fro a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or any of his representatives, may redeem the property by paying to the City Treasurer the full amount of the real property tax and the related interest and the cost of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the City.
Section 56. Resale of Real Estate Taken for Taxes, Fees or Charges. – Sangguniang Panlungsod may, through a separate ordinance and upon notice of not less than twenty (20) days, sell and or dispose of the real property acquired under the preceding section at public auction. The proceeds of the sale shall accrue to the General Fund of the City.
Section 57. Further Distrait or Levy. – Levy may be repeated if necessary until the full amount due, including all expenses are collected.
Section 58. Collection of Real Property Tax Through the Courts. – The City Governement may enforce the collection of basic property tax or any tax levied under this article by civil action in any court of competent jurisdiction. The following civil action shall be filed by the City Treasurer within the period prescribed in Section 2 A (58)
(a) The City Treasurer shall furnish the City Legal Officer a certified statement of delinquency, who, within fifteen (15) days after receipt, shall file the civil action in the name of the City in the proper court of competent jurisdiction.
(b) In both cases, that is, where he claim is either cognizable by an inferior court or by the regional trial court, the City Treasurer shall furnish the City Legal Officer the exact address of the defendant where he may be served with summons.
Section49. – City Government’s Lien. – The basic real property tax and any other tax levied under this Chapter, constitutes a lien on the property subject to tax superior to all liens, charges or encumbrances in favor of any person, irrespective of the owner or possessor thereof, enforceable by administrative or judicial action, and may only be extinguished upon payment of the tax and the related interest and expenses.
Section 50. – Levy On Real Property. – After the expiration of the time required to pay the basic real property tax or any other tax levied under this Chapter, real property subject to such tax may be levied upon through the issuance of a warrant of levy on or before, or simultaneously with, the institution of the civil action for the collection of the delinquent tax. The City Treasurer, when issuing a warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of a legal execution throughout the City. The warrant shall be mailed to or served upon the delinquent owner of the real property or person having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or occupant of the property. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the City Assessor and the Register of Deeds of the City, who shall annotate the levy on the Tax Declaration and Certificate of Title of the Property, respectively.
The levying officer shall submit a report to the City Mayor and the Sangguniang Panlungsod on the levy within ten (10) days after receipt of the warrant by the owner of the property or person having legal interest therein.
Section 51. – Penalty for Failure to Issue and Execute Warrant. – Without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, the City Treasurer or his deputy who fails the issue or execute the warrant of levy within one (1) year from time the tax becomes delinquent or within thirty (30) days from the date of the issuance thereof, or who is found guilty of abusing the exercise thereof in an administrative or judicial proceeding shall be dismissed from the service.
Section 52. – Advertisement and Sale. – Within thirty (30) days after service of the warrant of levy, the City Treasurer shall proceed to publicly advertise for sale or auction the property or a useable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the City Hall and in a public accessible and conspicuous place in the barangay where the real property or located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the City. The advertisement shall specify the amount of the delinquent tax, the interest, due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein, may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance or the City Hall building, or on the property to be sold, or at any other place as specified in the notice of sale.
Within thirty (30) days after the sale, the City Treasurer or his deputy shall make a report thereof to the City Mayor and the Sangguniang Panglunsod, and which shall form part of his records. The City Treasurer shall likewise prepare and deliver to the purchaser a Certificate of Sale which shall contain the name of the purchaser, a
description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings: Provided, however, that proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.
The City Treasurer may advance an amount sufficient to defray the cost of collection through the remedies provided for in this Article, including the expenses of advertisement and sale.
Section 53. Redemption of Property Sold. – Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest thereon, or his representative shall have the right to redeem the property upon payment to the City Treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of two percent (2%) per month on the purchase price from the date of redemption. Such payment shall invalidate the Certificate of Sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a Certificate of Redemption which shall be issued by the City Treasurer or his deputy.
From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof.
The City Treasurer or his deputy upon receipt of the Certificate of Sale, from the purchaser shall forthwith return to the latter the entire amount paid by him plus interest of two (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale.
Section 54. Final Deed to Purchaser. – in case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the City Treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests.
Section 55. Purchase of Property by the City Government for Want of Bidder.- In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay real property tax and the related interest and cost of sale, the City Treasurer conducting the sale shall purchase the property in behalf of the City Government to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected on the records of his office to the City Mayor and the Sangguniang Panlungsod. It shall be the duty of the Register of Deeds upon registration with his change of any such declaration of forfeiture to transfer the title of the forfeited property to the City without the necessity of an order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or any of his representatives, may redeem the property by paying to the City Treasurer the full amount of the real property tax and the related interest and the cost of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the City.
Section 56. Resale of Real Estate Taken for Taxes, Fees or Charges. –Sangguniang Panlungsod may, through a separate ordinance and upon notice of not less than twenty (20) days, sell and/or dispose of the real property acquired under the preceding section at public auction. The proceeds of the sale shall accrue to the General Fund of the City.
Section 57. Further Distraint or Levy. – Levy may be repeated if necessary until the full amount due, including all expenses is collected.
Section 58. Collection of Real Property Tax Through the Courts. – The City Government may enforce the collection of basic real property tax or any tax levied under this article by civil action in any court of competent jurisdiction. The following civil action shall be filed by the City Treasurer within the period prescribed in Section 2 (A) 58:
(a) The City Treasurer shall furnish the City Legal Officer a certified statement of delinquency, who, within fifteen (15) days after receipt, shall file the civil action in the name of the City in the proper court of competent jurisdiction.
(b) In both cases, that is, where the claim is either cognizable by an inferior court or by the regional trial court, the City Treasurer shall furnish the City Legal Officer the exact address of the defendant where he may be served with summons.
Section 59. Action Assailing Validity of Tax Sale. – No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein under this Article until the taxpayer shall have deposited with the court the amount for which the real property was sold, together with the interest of two (2%) per month from the date of sale to the time of the institution of the action. The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails.
Section 60. Payment of Delinquent Taxes on Property Subject of Controversy. In any action involving the ownership or possession of, or succession to, real property, the may motu propio or upon representation of the City Treasurer or his deputy, award such ownership, possession or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action.
Section 61. Treasurer to Certify Delinquencies Remaining Uncollected. -The City Treasurer or his deputy shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year, and a statement of the reason or reasons for such non-collection or non-payment, and shall submit the name to the City Mayor and the Sangguniang Panlungsod on or before the thirty-first (31) of December of the year immediately succeeding the year in which the delinquencies were incurred with a request for assistance in the enforcement of the remedies for collection as provided therein.
Section 62. Periods Within Which to Collect Real Property Taxes. – The basic real property tax and any other tax levied under this Article shall be collected within five (5) years from the date they have become due. No action for the collection of the tax,
whether administrative or judicial, shall be instituted after the expiration of such period. In case of Fraud, or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment.
The period of prescription within which to collect shall be suspended for the time during which: (a) the City Treasurer is legally prevented from collecting the tax; (b) the owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; or (c) the owner of the property or the person having legal interest therein is out of the country or otherwise cannot be located.
Section 63. Condo nation or Reduction of Real Property Tax and Interest. In case of calamity in the City, the Sangguniang Panlungsod by ordinance passed prior to the first (1st ) day of January of any year and upon recommendation of the City Disaster Coordinating Council, may condone or reduce ,wholly or partially, the taxes and interest thereon for the succeeding year or years in the areas affected by the calamity.
Section 64. Condo nation or Reduction of Tax by The President of the Philippines. – The President of the Philippines may, when public interest so requires, condone or reduce the real property tax and interest for any year in the City.
Section 65. Duty of the Register of Deeds Notaries Public to Assist the City Assessor. – It shall be the duty of the Register of Deeds and Notaries Public to furnish the City Assessor with copies of all contracts selling transferring, or otherwise conveying, leasing or mortgaging real property received by, or acknowledge before them.
Section 66. – Insurance Companies to Furnish Information. – Insurance companies are hereby required to furnish the City Assessors copies of any contract or policy insurance on buildings, structures and improvements insured by them or such other documents Which may be necessary for the proper assessment thereof.
Section 67. – Fees in Court Actions. – As provided in Sec. 280 of the Local Government Code, all certificates documents, and papers covering the sale of delinquent property to the City if registered in the Registry of Property, shall be exempt from the documentary stamp tax and registration fees.
Section 68. – Fees in Registration of Papers or Documents on Sale of Delinquent Real Property to the City. – As provided in Sec. 281 of the Local Government Code, all certificates documents, and papers covering the sale of delinquent property to the City if registered in the Registry of Property, shall be exempt from the documentary stamp tax and registration fees.
Section 69. – Sale and Forfeiture Before Efectivity of this Code. – Tax delinquencies incurred, and sales of forfeitures of delinquent property effected before the effectivity of this Code shall be governed by the provisions of applicable ordinances or laws then in force.
Section 70. – Interest on Unpaid Real Property Tax. –
Section 71. Penalties for Omission of Property from Assessment or Tax Rolls.
Any officer charged with the duty of assessing a real property who willfully fails to assess or who
Intentionally omits from the assessment or tax roll any real property which he knows to be taxable, or who willfully or negligently under assesses any real property, or who intentionally violates or fails to perform any duty imposed upon him by law relating to the assessment of taxable real property shall, upon conviction, be punished by imprisonment of not less than one (1) month nor more than six (6) months, or by a fine of not less than One Thousand Pesos (Php1,000.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.
The same penalty shall be imposed upon an officer charged with the duty of collecting the tax due on real property who willfully and negligently fails to collect the tax and institute the necessary proceedings for the collection of the same.
Any officer required in this Article to perform acts relating to the administration of real property tax to assist the City Assessor or City Treasurer in such administration, who willfully fails to discharge such duties shall, upon conviction, be punished by imprisonment of not less than one (1) month but not more than six (6) months or by a fine of not less than Five Hundred Pesos (Php500.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.
Section 72. Penalties for Delaying Assessment of Real Property and Assessment Appeals. Any government official or employee, national or local, who intentionally and deliberately delays the assessment of real property or the filing of any appeal against its assessment shall , upon conviction, be punished by imprisonment of not less than one (1) month but not more than six (6) months, or by a fine not less than Five Hundred Pesos (Php500.00) but not more than Five Thousand Pesos (Php5,000.00) but both such imprisonment and fine, at the discretion of the court.
Section 73. Penalties for Failure to Dispose of Delinquent Real Property at Public Auction. The City Treasurer who fails to dispose of delinquent real property at public auction in compliance with the pertinent provisions of this article and any other local officials whose acts hinder the prompt disposition of delinquent real property at public auction shall, upon conviction, be subject to imprisonment of not less than one (1) month but not more six (6) months, or a fine of not less than One Thousand Pesos (Php1,000.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.
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