Aquino vs.

Quezon City

Facts:

This is a consolidated petition involving the validity of the auction sales of two
real properties by the Quezon City local government for failure to pay real property
taxes.

*First*

Spouses Efren and Angelica Aquino’s 612-square meter lot in East Avenue
Subdivision, Diliman, Quezon City was sold by the Quezon City local government
through the Treasurer’s Office at a public auction on February 29, 1984 to private
respondent Aida Linao, due to their failure to pay property taxes from 1975 to 1982.
Prior to the auction, the spouses were given Notice of Intent to Sell at their last known
address.

*Second *

Solomon Torrado’s failure to pay real property taxes on Lot 8 located at No. 20
North Road, Cubao, Quezon City, led to the City Treasurer’s issuance of a Notice of
Intent to Sell to his address of “Butuan City” as indicated in his tax register. Said notice
was returned by reason of “Insufficient Address.” On a later date, a Notice of Sale of
Delinquent Property was sent to the same address and similarly returned unclaimed.
Thereafter, a public auction was held and the property was sold to Veronica Baluyot. A
Notice of Sold Property was then sent to Solomon Torrado in the same address as
before, which was returned unclaimed. A Final Bill of Sale was executed by the City
Treasurer, on May 29, 1985, transferring it to the name of Veronica Baluyot. Baluyot
later sold the property to Corazon and Maximino Uy (spouses Uy). Spouses Uy also sold
the property to DNX Corporation.

Issue:

Whether or not the auction sales of the two properties for failure to pay property
taxes are valid?
Ruling:

It is valid.

Under Section 65 of P.D. no. 464 (Real property Tax Code), the owner of real property
subject to tax is supposed to be given a Notice of Tax Delinquency stating that if the
property tax is not paid, the local government would sell the real property to satisfy the
tax in arrears. It must be noted that said Section 65 is to be construed together with
Sections 66 and 78 and all three sections operate in reference to tax methods in
general.

While under Section 73 thereof, a Notice of Sale at Public Action must be sent to the
owner of the real property, notifying him that since there was failure to heed the first
notice (Sec. 65), the local government would now sell his delinquent property at public
auction on a specified date to satisfy the tax in arrears. Under the same section just
mentioned, such notices may be sent at either (i) at the address as shown in the tax
rolls or property tax record cards of the municipality or city where the property is
located or (ii) at his residence, if known to such treasurer or barrio captain.

In both petitions, the City Treasurer opted to comply with the first option, therefore the
procedure for giving out notices in auction of sales or property tax delinquency was
complied with.

STATCON NOTE:

A statute must be construed as a whole. The meaning of the law is not to be extracted
from a single part, portion or section or from isolated words and phrases, clauses or
sentences, but from a general consideration or view of the act as a whole. Every part of
the statute must be interpreted with reference to the context.