SPIT

Real Property Taxation

RPT - a direct tax on ownership of lands and buildings or other improvements thereon.
Characteristics:
1. direct tax on ownership of RP
2. proportionate % of assessed value
3. creates a single indivisible obligation
4. ad valorem tax
5. local tax - admin by LGU; only cities and provinces and muni within MM /muni outside no
power

Types of RPT
1. Basic - not exceeding 1% AV provinces; 2% Cities and muni S233
2. Special Levies
1. Special Educ Fund - 1% additional real estate tax S235
2. Additional ad valorem on idle lands - not exceeding 5% AV S 236
3. Special assessments - S23
1. if government incurred costs and adjacent lands increase in value; recover at
least 60%
2. imposed on lands spec benefited by public works projects and improvements
3. shall not exceed 60% of actual cost
4. not apply to:
1. Lands exempt from RPT
2. Remainder donated to LGU for construction

Fundamental principles
1. appraised at current FMV
2. classified accdg to purposes on the basis of its actual use (principal/predominant use)
3. assessed o the basis of a uniform classification within LGU
4. appraisal, assessment levy and collection shall not be let to any private person
5. appraisal and assessment shall be equitable

FMV and Assessed Value

FMV is the amount which the purchaser willing but not compelled to buy… (Army Navy v. )

Nature of RPT - direct AV indivisible obligation

Taxing power of LGU is delegated by Congress (not consti delegation)
Muni outside MM and brgys have not power to levy real estate

Exemption S234
Tests of Exemption
Ownership exemption - govt coops
Character - charitable inst church and non profit or religious cemeteries church or cemetery
itslef
Usage Exemption - charitable educ

PH Fisheries Dev v CBAA Dec 5 2010

Tax exemption is not transferable - NPC v CBAA 171470 Jan 30 2009

Appraisal of RP S201
Declaration of RP
1. Owner/Admin once every 3 yrs during Jan 1 to Jan 30 S202
2. Newly Acq - 60d from acquisition
3. Back assessment - cannot exceed 10y

Listing in Assessment Rolls

• Listing of RP (taxable/exempt) within juris of LGU
• All decl shall be kept and filed under a uniform classification to be set by prov city or muni
assessor S201

Persons upon whom listed

• owner, admin or anyone having legal int
• if undivided RP, estate, heirs co-owners
• corp, partnership and association

AV*FMV*1/2%

Assessment levels under S218 are ceilings

applied to market value
S219 General Revision
S222

Collection
Date of Accrual Jan 1 of every year S246
Collecting Auth - City/Muni Treasurer
Muni - may be a bonded collection agent

Remedies
1. By administrative action thru levy on RP
2. by judicial action

S 254 notice of delinquency

Warrant of levy / notice of delinquency

against delinquent rp
advertise sale
sale
report of sale to sanggunian within 30d after sale
preparation of cert of sale
issuance of special deed to purchaser
issuance of final deed upon expiration of 1yr redemption period

Disposition of proceeds in excess of delinquent tax, interest and expenses of sale remitted to
owner of real property; Owner not deprived of possession and rentals until expiration of time
allowed for its redemption

LGU may purchase if there is no bidder OR highest bid is insufficient to pay RPT, charges and
interests

Civil Action - filed by local treasurer within 5 or 10 years as provided for under LGC

Sang may sale and dispose RP and proceeds will accrue to general fund

Levy may be repeated if necessary until full amount is due, inc all expenses
need not cover delinquent prop only but may be extended on other properties until fully paid

REFUND
Payment under Protest.
No protest shall be entertained unless taxpayer firs pays the tax. “paid under protest”

Taxpayer Rmedies
Valuation
Appeal to LBAA
Request for Review with Assessor Callanta v Abellana - cannot file with local assessor since siya
yung nag-issue; invite corruption
within 60d from receipt of notice of assessment

Appeal to CBAA within 30d from receipt of decision of board

CBAA decision is final and executory no more appeal
R65 pwede pa naman prerogative

Effect of Payment of Tax

• An appeal on the payment of assessment of RP hall in no case suspend collection of
corresponding realty taxes on property
• Protest with local treasurer
• appeal to lbaa 60 days meringue deemed denial
• apeaal to cbaa within 30d
• appeal to CTA en banc 15 days
• appeal to SC R45 15 days