REAL

PROPERTY
TAXATION

Collection
Collecting authority
The collection of RPT shall be
the responsibility of the city or
municipal treasurer concerned.
He may deputize the barangay
treasurer to collect
all taxes on real property located
in the
barangay provided the latter is
bonded. [Sec. 247, LGC]
Duty of assessor to furnish
local treasurer with
assessment rolls
The provincial, city or
municipal assessor shall
prepare and submit to the
local treasurer, on or before
December 31 of each year, an
assessment roll containing a
list of all persons whose real
properties have been newly
assessed or reassessed and
the values of such properties.
[Sec. 248, LGC]
Notice of time for collection of tax
a. Date of Accrual

The local treasurer shall post the notice of Real property tax for any year shall accrue
on the 1st day of January. [Sec. 246, LGC]
the dates when the tax may be paid without
interest at a conspicuous and publicly
accessible place at the city or municipal hall: b. Periods to Collect
General Rule: Within 5 years from the date the
1. on or before January 31 of each year in the taxes become due
case of basic RPT and additional tax for SEF;
Exception: In case there is fraud or intent to
or
evade payment of tax, within 10 years from
2. on any other date in the case of any other discovery of fraud or intent to evade payment
tax. [Sec. 270, LGC]
The notice shall also be published in a newspaper of general
circulation in the locality once a week for 2 consecutive weeks.
[Sec. 249, LGC]

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1. The local treasurer is legally prevented from collecting the tax;

2. 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 to collect; and

3. The owner of the property or the person having legal interest

therein is out of the country or cannot be located. [Sec. 270, LGC]

Grounds for suspension of prescriptive period

RULES ON PAYMENT
2. Any special levies
shall be governed by
ordinance of the
Payment of RPT Sanggunian
concerned. [Sec.
1. Payment of RPT and the additional 250, LGC]
tax for SEF, without interest, may be
made in 4 equal installments:
Note:
1st: March 31 Payments of RPT shall first
be applied to prior years’
2nd: June 30 delinquencies, interests and
3rd: September 30 penalties, if any, and only
after the delinquencies are
4th: December 31 settled may tax payments be
credited for the current
period. [Sec. 250, LGC]

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 Discount for advance or
prompt payment
1. Advance payment – not exceeding
INTERESTS ON UNPAID RPT
20% of annual tax due [Sec. 251,
LGC]
Interest at the rate of 2% per
2. Prompt payment – not exceeding
month on the unpaid amount 10% of annual tax due [Art. 342,
or a fraction thereof until the LGC IRR]
delinquent tax shall have
been fully paid, but the total
interest shall not exceed 36
months [Sec. 255, LGC]

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c. Remedies of LGUs
1. Local Government’s Lien
The RPT shall constitute 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 interests and
expenses. [Sec. 257, LGC]. It constitutes a
lien on the property from the date of
accrual (i.e., January 1) [Sec. 246, LGC].
Issuance of notice of
delinquency
When the real property tax
becomes delinquent, the
local treasurer shall post a
notice of delinquency at the
main hall and in a publicly
accessible and conspicuous
place in each barangay of
the LGU concerned. [Sec.
254, LGC]
 c. Remedies of LGUs
2. Administrative Action g. Before the date of sale, the proceedings may be
stayed by paying the delinquent tax.
1. Levy on real property
h. Sale of the real property [Sec. 260, LGC]
a. warrant of levy
i. Redemption of property [Sec. 261, LGC]
b. warrant shall include a duly authenticated certificate
j. If not redeemed, the local treasurer shall
c. Warrant must be mailed to or served upon the delinquent
k. execute a deed conveying the property to the
owner or person having legal interest in the property.
purchaser. [Sec. 262, LGC]
d. Written notice of levy with the attached warrant served
l. l. Purchase of property by local treasurer [Sec. 263
upon the assessor and the Register of Deeds where the
and 264, LGC]
property is located.
e. Register of Deeds annotate the levy Further levy until full payment
Levy may be repeated if necessary until the full due,
f. The levying officer submit a report on the levy to the including all expenses, is collected. [Sec. 265, LGC]
Sanggunian within 10 days
c. Remedies of LGUs 2. Distraint of personal
property
2. Administrative Action
The notice of delinquency shall
state that personal property may
be distrained to effect payment.
It shall likewise state that any
time before the distraint of
personal property, payment of
the tax with surcharges, interests
and penalties may be made.
[Sec. 254, LGC]
c. Remedies of LGUs
The LGU concerned may
enforce the collection of the
3. Judicial Action basic RPT or any other related
tax by civil action in any court of
competent jurisdiction. The civil
action shall be filed by the local
treasurer within the period
prescribed for collection (i.e., 5
years or 10 years) under Sec.
270 of the LGC. [Sec. 266, LGC]
 6. Taxpayer’s Remedies
a. Contesting the Valuation of Real Property
i. Appeal to the Local Board of Assessment Appeals (LBAA)
Who may appeal
Any owner or person having legal interest in the property who is not satisfied with the action of the local assessor in the assessment of his
property may appeal to the LBAA by filing a petition under oath, together with copies of the tax declarations and such affidavits or documents
submitted in support of the appeal. [Sec. 226, LGC]
When to appeal
The appeal must be filed within 60 days from the date of receipt of the written notice of assessment. [Sec. 226, LGC]
Period to decide on the appeal
The LBAA shall decide the appeal within 120 days from the date of receipt of such appeal. [Sec. 229(a), LGC] Note: The LBAA shall have the power
to summon witnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena and subpoena duces tecum. [Sec.
229(b), LGC]
Motion for reconsideration with local assessor not allowed
The procedure likewise does not permit the property owner the remedy of filing a motion for reconsideration before the local assessor. [Fels
Energy Inc. v. Province of Batangas, G.R. No. 168557 (2007)]
When appeal to LBAA not required
An exception to the rule on exhaustion of administrative remedies is where the controversy does not involve questions of fact but only of law.
Under Sec. 229(b) of the LGC "the proceedings of the Board shall be conducted solely for the purpose of ascertaining the facts." It follows that
appeals to the LBAA may be fruitful only where questions of fact are involved. [Ty v. Trampe, G.R. No. 117577 (1995)]
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 6. Taxpayer’s Remedies
a. Contesting the Valuation of Real Property

ii. Appeal to the Central Board of Assessment Appeals (CBAA)

Who may and when to appeal

The owner of the property or the person having legal interest therein or the assessor who is not satisfied with the decision
of the LBAA, may, within 30 days after receipt of the decision of said LBAA, appeal to the CBAA. [Sec. 229, LGC]

Period to decide and finality of decision

The CBAA shall decide cases on appeal within 12 months from the date of receipt thereof, which shall become final and
executory 15 days after receipt thereof by the appellant or appellee, as the case may be. [Sec. 9, Rule 3, Chapter VII,
Manual of Real Property Appraisal and Assessment Operations]

Effect of appeal on the payment of tax

Appeal on assessments of real property shall not suspend the collection of the corresponding realty taxes on the property
involved as assessed by the provincial or city assessor without prejudice to subsequent readjustment depending upon the
final outcome of the appeal. [Sec. 231, LGC]
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 6. Taxpayer’s Remedies

b. Contesting a Deficiency Tax Assessment

i. Payment of RPT under Protest; Exceptions

General Rule:
No protest shall be entertained unless the taxpayer first pays the tax. There shall be
annotated on the tax receipts the Words "paid under protest". [Sec. 252, LGC]. When the
taxpayer questions the excessiveness or reasonableness of the assessment, the taxpayer
is required to first pay the tax due before his protest can be entertained. [NPC v. Provincial
Treasurer of Benguet, G.R. No. 209303 (2016)]
Exception: “Payment under protest” is not a prerequisite when the issue is the legality or
validity of the assessment. Certainly, it would be unjust to require the realty owner to first
pay the tax, the validity of which he precisely questions, before he can lodge a complaint
to the court. [NPC v. Municipal Government of Navotas, G.R. 192300 (2014)]
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 6. Taxpayer’s Remedies

b. Contesting a Deficiency Tax Assessment

ii. File Protest with Local Treasurer
Period to file protest - The protest in writing must be filed within 30 days from payment of the
tax to the provincial, city or municipal treasurer. [Sec. 252(a), LGC] Note: The tax or a portion
thereof paid under protest, shall be held in trust by the treasurer. [Sec. 252(b), LGC];
Period to decide - The local treasurer shall decide the protest within 60 days from receipt.
[Sec. 252(a), LGC]
Decision on the protest
a. If the protest is decided in favor of the taxpayer, the amount or portion of the tax protested
shall be refunded to the protestant, or applied as tax credit against his existing or future tax
liability. [Sec. 252(c), LGC]
b. If the protest is denied or the 60-day period expired, the taxpayer may appeal to the LBAA
and subsequently to the CBAA pursuant to Secs. 226 and 229 as in the case of assessment
appeals. [Sec. 252(d), LGC]

Note:
A claim for exemption from the payment of RPT pertains to the reasonableness or correctness of the assessment by the local assessor, a
question of fact which should be resolved, at the very first instance, by the LBAA. [NPC v. Provincial Treasurer of Benguet, G.R. No. 209303
(2016)]
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 6. Taxpayer’s Remedies

b. Contesting a Deficiency Tax Assessment

iii. Refunds or Credits of RPT

Repayment of excessive collections
When an assessment of RPT is found to be illegal or erroneous and the tax is accordingly
reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and
interests with the provincial or city treasurer within 2 years from the date the taxpayer is
entitled to such reduction or adjustment. The provincial or city treasurer shall decide the claim
for tax refund or credit within 60 days from receipt thereof. [Sec. 253, LGC]

Remedy in case of denial by the local treasurer

In case the claim for tax refund or credit is denied, the taxpayer may follow the procedure in
questioning an assessment (i.e., appeal to the LBAA, then to the CBAA, and subsequently to the
CTA En Banc). [Sec. 253, LGC]
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 6. Taxpayer’s Remedies

c. Compromising an RPT assessment

Condonation or reduction of RPT

1. The Sanggunian:, in case of general failure of crops or substantial decrease in the price of agricultural or
agri-based products or calamity, may, by ordinance, condone or reduce taxes and interest for the succeeding
year/s in the city or municipality affected by the calamity. [Sec. 276, LGC]
2. The President of the Philippines may, when public interest so requires, condone or reduce the real property
tax and interest for any year in any province or city or municipality within Metro Manila. [Sec. 277, LGC]
Compromise by authority of the President
The CTA allowed the compromise agreement between Batangas City, represented by its Mayor, and the
taxpayer since it was entered into in line with an executive order issued by the President to address the real
property tax issues of independent power producers through the reduction of their tax liabilities and the
condonation of fines, penalties and interest on deficiency taxes. [Kepco Ilijan Corporation v. CBAA, CTA EB No.
909 (2013)]
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Thank you