TARLAC STATE UNIVERSITY - COLLEGE OF BUSINESS AND ACCOUNTANCY

2ND SEMESTER ACADEMIC YEAR 2021-2022

TAX 3 – SPECIAL TAXATION

COLLECTION OF REAL PROPERTY TAX However, the payment of the special levy (special
assessment) shall be governed by ordinance of the
Date of Accrual of Tax Sanggunian concerned.
The real property tax for any year shall accrue on the The date for the payment of any tax imposed under this
(1st) day of January and from that date is shall Title without interest shall be prescribed by the
constitute a lien on the property which shall be Sanggunian concerned.
superior to any other lien, mortgage, or encumbrance
Payments of real property taxes shall first be applied to
of any kind whatsoever, and shall be extinguished only
prior years’ delinquencies, interests, and penalties, if
upon the payment of the delinquent tax (Sec. 246,
any. Only after said delinquencies are settled may tax
LGC).
payments be credited for the current period (Sec. 250,
LGC)
Collection of Tax
The collection of the real property tax with interest Periods Within Which to Collect Real Property Taxes
thereon and related expenses, and the enforcement of
The basic real property tax and any other tax levied
the remedies provided for in Title II of the LGC or any
under Title II of Book II of the LGC shall be collected
applicable laws, shall be responsibility of the city or
within five (5) years from the date they become due.
municipal treasurer concerned (Sec. 247, LGC).
NO action for the collection of the tax, whether
The city or municipal treasurer may deputize the administrative or judicial, shall be instituted after the
barangay treasurer to collect all taxes on real property expiration of such period.
located in the barangay. Provided, that:
In case of fraud or intent to evade payment of the tax,
a. the barangay treasurer is properly bonded for such action may be instituted for the collection of the
the purpose; and same within ten (10) years from the discovery of such
fraud or intent to evade payment.
b. the premium on the bond shall be paid by the
city or municipal government concerned (Sec. Note: For purpose of the ordinary prescriptive period
247, LGC) of 5 years, the real property tax accrues on the 1st day
of January. The special levy accrues on the 1st day of
Note: Before any document of transfer, alienation,
the quarter following the effectivity of the ordinance
or encumbrance of real property may be registered,
imposing the levy (Secs. 245 and 246, LGC).
the Registry of Deeds shall required the
presentation of a certificate or clearance issued by
Suspension of the Running of the Prescriptive Periods
the Local Treasurer concerned to the effect that all
current and past year basic real property tax, the The running of prescription within which to collect shall
additional special education fund levy, other real be suspended for the time during which:
property taxes, and the tax on transfer of real
1. The treasurer is legally prevented from collecting
property ownership due on the subject property,
the tax;
have been paid in full including interests or
2. The owner the property or the person having
penalties due thereon (Art. 300(b), LGC IRR).
legal interest therein requests for
reinvestigation, and executes a waiver in writing
Payment of Real Property Taxes in Installments
before the expiration of the period within which
The owner of the real property or the person having to collect; and
legal interest therein may pay the basic real property 3. The owner of the property or the person having
tax and the additional tax for Special Education Fund legal interest therein is out of the country or
(SEF) due thereon without interest in four (4) equal otherwise cannot be located (Sec. 270, LGC).
installments:
1. first installment to be due and payable on or
before March 31;
2. second installment, on or before June 30;
3. third installment, on or before September 30;
and
4. last installment on or before December 31.
 TARLAC STATE UNIVERSITY - COLLEGE OF BUSINESS AND ACCOUNTANCY
2ND SEMESTER ACADEMIC YEAR 2021-2022
TAX 3 – SPECIAL TAXATION

TAXPAYER’S REMEDIES However, if what is being questioned is the

very authority and power of the assessor to
1. Protest and Assessment Appeals
impose the tax, the administrative
Payment of the tax under protest proceedings provided in the LGC will not
apply.
Within 30 days In Cases where immediate resort to the
courts is allowed without the taxpayer
exhausting the administrative remedies
File Protest with
provided by law, the taxpayer can bring the
Local Treasurer
matter to the Regional Trial Courts (RTCs).
If a taxpayer is not satisfied with the
Within 60 days
decision of the RTC, the taxpayer may file,
within thirty (30) days from receipt of the
Protest is Denied or assailed decision, a Petition for Review with
Not Acted Upon the Court of Tax Appeals (CTA). A Division of
the CTA shall hear the case.
Within 60 days b. Appeal taken to the CTA shall not suspend
the payment, levy, distraint, and/or sale of
any property of the taxpayer for the
Appeal to the Local Board of
satisfaction of his tax liability as provided by
Assessment Appeals (LBAA) existing law.
Provided, however, that when in the
Within 120 days opinion of the CTA the collection may
jeopardize the interest of the Government
Adverse Decision of the LBAA and/or taxpayer, the CTA, at any stage of
the proceeding, mas suspend the said
Note: Within the same 30 days from the collection and require the taxpayer either
time of receipt of the adverse decision, to deposit the amount claimed or to file a
Within 30 days the taxpayer can also file a Motion for surely bond for not more than double the
Reconsideration with the LBAA amount with the CTA (RA 9282) **

Appeal to the Central Board of 2. Claim for Refund or Credit

Assessment Appeals (CBAA) When an assessment of basic real property tax,
or any other tax levied under this Title II of the
LGC, is found to be illegal or erroneous, and the
Adverse Decision of the CBAA tax is accordingly reduced or adjusted, the
taxpayer may file a written claim for refund or
credit for taxes and interest with the provincial
Within 30 days
or city treasurer within two (2) years from the
date the taxpayer is entitled to such reduction
File a Petition for Review with or adjustment.
the Court of Tax Appeals (CTA) The provincial or city treasurer shall decide the
claim for tax refund or credit within sixty (60)
days from receipt thereof. In case the claim for
Notes: tax refund or credit is denied, the taxpayer may
a. A taxpayer must first exhaust his avail of the remedies as provided in
administrative remedies, i.e. file a protest “Assessment Appeals.”
with the local treasurer, and appeal to the
LBAA, before seeking redress from the
courts.
 TARLAC STATE UNIVERSITY - COLLEGE OF BUSINESS AND ACCOUNTANCY
2ND SEMESTER ACADEMIC YEAR 2021-2022
TAX 3 – SPECIAL TAXATION

3. Injunction
When in the opinion of the CTA the collection
may jeopardize the interest of the Government
and/or taxpayer, the CTA, at any stage of the
proceeding, mas suspend the said collection
and require the taxpayer either to deposit the
amount claimed or to file a surely bond for not
more than double the amount with the CTA
(RA 9282) **