Date of accrual of tax.
SEC. 56. Date of accrual of tax.—The real
property tax for any year shall attach and become due and payable on the
first day of January and from the same date said tax and all penalties
subsequently accruing thereto shall constitute a lien upon the property
subject to such tax. Said lien shall be superior to all other liens,
mortgages, or encumbrances of any kind whatsoever; shall be enforceable
against the property whether in the possession of the delinquent or any
subsequent owner or possessor, and shall be removable only by the
payment of the delinquent taxes and penalties. The real property tax
on properties actually, directly, and exclusively used for educational
purposes as provided under Presidential Decree No. 261 shall begin to
accrue on January 1, 1975.
Collection of tax to be the responsibility of treasurers.
SEC. 57. Collection of tax
to be the responsibility of treasurers.—The collection of the real
property tax and all penalties accruing thereto, and the enforcement of
the remedies provided for in this Code or any applicable laws, shall be
the responsibility of the treasurer of the province, city or
municipality where the property is situated.
Assessor to furnish treasurer with assessment roll.
SEC. 58. Assessor to furnish treasurer with
assessment roll.—The provincial or city assessor shall prepare and
submit to the treasurer of the province, city or municipality, on or
before the thirty-first day of December of each year, an assessment roll
containing a list of all persons to whom real properties have been
newly assessed or reassessed and the value of such taxable properties.
Notice of time for collection of tax.
SEC. 59. Notice of time for collection of tax.—The
provincial or city treasurer shall, on or before the thirty-first of
January each year, cause notice of the periods during which real
property tax may be paid without penalty in their respective
jurisdiction to be posted at the main entrance of the provincial
building or city hall and of all municipal buildings and in a public
conspicuous place in each barrio, and published in a newspaper and
announced by crier at least three times.
The form and detail of the notice shall be prescribed by the
Secretary of Finance: Provided, however, That in lieu of or in
addition to such notice, the Secretary of Finance may require
notification in any province, municipality, or city to be accomplished
through the mailing of individual tax bills which shall state the exact
amount of the annual tax due, the amount of quarterly installment, its
due date, the delinquency, and the applicable penalty.
Payment of real property taxes in installments.
SEC. 60. Payment of real property taxes in
installments. —Real property taxes may, in the discretion of the
taxpayer, be paid without penalty in four equal installments; the first
installment to be due and payable on or before March thirty-first; the
second installment, on or before June thirty; the third installment, on
or before September thirty; and the last installment, on or before
December thirty-first, except the special levies authorized under
Sections forty-seven and fifty-five of this Code which shall be governed
by the local ordinance or Department Order issued by the Secretary of
Finance, as the case may be.
Any person who is in any provincial,
city or municipal treasurer office on the last day of any period
established for the payment of the real property tax without penalty,
ready and prepared to pay but is unable to do so because of the great
number of taxpayers, shall be given a suitable card entitling him to pay
the tax without penalty on the next business day.
SEC. 61.
Tax discount.—If the basic and additional real property tax
levied for the Special Education Fund or any quarterly installment
thereof is paid in full within the prescribed period of payment, the
taxpayer shall be granted a discount on the tax due as follows: twenty
per cent on the tax due and payable during the year 1974; fifteen per
cent on the tax due and payable during the year 1975; ten per cent on
the tax due and payable during the year 1976; and five per cent on the
tax due and payable during the year 1977; Provided, however,
That the tax discount herein authorized shall apply only to lands and
not to improvements; Provided, further, That only lands without
any delinquency shall be granted the same; and Provided, finally,
That the discounted tax shall not be lower than the tax corresponding
to the next preceding tax year.
Beginning with the calendar year 1978 and thereafter, the
President of the Philippines may, at his discretion or upon
recommendation of the Secretary of Finance, authorize the grant of
discounts on taxes due on real property at such rates and for such
periods as he may fix, if he deems that the public interest so requires.
Payment under protest.
SEC. 62. Payment under protest.— (a) When a taxpayer
desires for any reason to pay his tax under protest, he shall indicate
the amount or portion thereof he is contesting and such protest shall be
annotated on the tax receipts by writing thereon the words "paid under
protest". Verbal protests shall be confirmed in writing, with a
statement of the ground, therefor, within thirty days. The tax may be
paid under protest, and in such case it shall be the duty of the
Provincial, City or Municipal Treasurers to annotate the ground or
grounds therefor on the receipt.
In case of payments made under protest the amount or portion
of the tax contested shall be held in trust by the treasury and the
difference shall be treated as revenue
In the event that the protest is finally decided in favor
of the government, the amount or portion of the treasurer and the
difference shall be treated as revenue.
In the event that the protest is finally decided in favor of
the government, the amount or portion of the tax held in trust by the
treasurer shall accrue to the revenue account, but the protest shall be
decided finally in favor of the protestant, the amount or portion of the
tax protested against may either be refunded to the protestant or
applied as tax credit to any other existing or future tax liability of
the said protestant.
Repayment of excessive collections.
SEC. 63. Repayment of excessive collections.—When
it appears that an assessment of real property was erroneous and unjust
when made and the same is reduced because of such error or injustice,
and not by reason of damage incurred or deterioration suffered by such
property subsequent to the date of original assessment, the taxpayer
shall be entitled to the proper refund for taxes and penalties paid by
him for not more than three years.
Timely notice shall be given
by the Provincial or City Treasurer to every taxpayer whose assessment
is so reduced and he shall be furnished a certificate showing the amount
or refund to which he is entitled for payment already made.
SEC.
64. Restriction upon power of court to impeach tax. —No
court shall entertain any suit assailing the validity of a tax assessed
under this Code until the taxpayer shall have paid, under protest the
tax assessed against him nor shall any court declare any tax invalid by
reason of irregularities or informalities in the proceedings of the
officers charged with the assessment or collection of taxes, or of
failure to perform their duties within this time herein specified for
their performance unless such irregularities, informalities or failure
shall have impaired the substantial rights of the taxpayer; nor shall
any court declare any portion of the tax assessed under the provisions
of this Code invalid except upon condition that the taxpayer shall pay
the just amount of the tax, as determined by the court in the pending
proceeding.
Notice of delinquency in the payment of the real property tax.
SEC. 65. Notice of delinquency in the payment of
the real property tax.—Upon the real property tax or any installment
thereof becoming delinquent, the provincial or city treasurer shall
immediately cause notice of that fact to be posted at the main entrance
of the provincial building and of all main entrance of the provincial
building and of all municipal buildings or municipal or city hall and in
a public and conspicuous place in each barrio of the municipality of
the province or city as the case may be. The notice of delinquency shall
also be published once a week for three consecutive weeks, in a
newspaper of general circulation in the province or city, if any there
be, and announced by a crier at the market place for at least three
market days. Such notice shall specify the date upon which the tax
became delinquent, and shall state that personal property may be seized
to effect payment. It shall also state that, at any time, before the
seizure of personal property, payment may be made with penalty in
accordance with the next following section, and further, that unless the
tax and penalties be paid before the expiration of the year for which
the tax is due, or the tax shall have been judicially set aside, the
entire delinquent real property will be sold at public auction, and that
thereafter the full title to the property will be and remain with the
purchaser, subject only to the right of the delinquent taxpayer or any
other person in his behalf to redeem the sold property within one year
from the date of sale.
Penalty for delinquency.
SEC. 66. Penalty for delinquency.—Failure to
pay the real property tax before the expiration of the period for the
payment without penalty of the quarterly installments thereof shall
subject the taxpayer to the payment of a penalty of two per centum on
the amount of the delinquent tax for each month of delinquency or
fraction thereof, until the delinquent tax shall be fully paid: Provided,
That in no case shall the total penalty exceed twenty-four per centum
of the delinquent tax. The rate of penalty for tax delinquency fixed
herein shall be uniformly applied in all provinces and cities.
SEC. 67. Remedies cumulative, simultaneous and
unconditional.-Collection of the real property tax may be enforced
through any or all of the remedies provided under this Code, and the use
or non-use of one remedy shall not be a bar against the institution of
the others. Formal demand for the payment of the delinquent taxes and
penalties due need not be made before any of such remedies may be
resorted to; notice of delinquency as required in Section sixty-five
hereof shall be sufficient for the purpose.
Distraint of personal property for delinquency.
SEC. 68. Distraint of personal property for
delinquency.— After delinquency in the payment of the real property
tax for the year has occurred, payment of such tax may be enforced by
distraining the personal property including the crops growing on land of
the delinquent taxpayer. In such case, the provincial or city treasurer
or his deputy shall issue a duly authenticated certificate, based upon
the records of his office, showing the fact of delinquency and the
amount of tax and penalty due, and this shall be sufficient warrant for
the seizure of any non-exempt personal property belonging to the
delinquent taxpayer in question. Such process may be executed by the
provincial or city treasurer, his deputy, or any officer authorized to
execute legal process.
Personal property exempt from distraint or levy.
SEC. 69. Personal property exempt from distraint or
levy.—The following property shall be exempt from distraint and the
levy of attachment or execution for delinquency in the payment of the
real property tax:
Tools and the implements necessarily used by the delinquent
taxpayer in his trade or employment.
One horse, cow, carabao, or other beast of burden, such as
the delinquent taxpayer may select, and necessarily used by him in his
ordinary occupation.
His necessary clothing, and that of all his family.
Household furniture and utensils necessary for
housekeeping, and used for that purpose by the delinquent taxpayers,
such as he may select, of a value not exceeding three thousand pesos.
Provisions, including crops, actually provided for
individual or family use sufficient for four months.
The professional libraries of lawyers, judges, clergymen,
doctors, school teachers, and music teachers, not exceeding five
thousand pesos in value.
One fishing boat and net, not exceeding the total value of
five thousand pesos, the property of any fisherman, by the lawful use of
which he earns a livelihood.
Any material or article forming part of a house or
improvement of any real property.
Sale of distrained personal property.
SEC. 70. Sale of distrained personal property.—Property
seized upon process under Section sixty-eight hereof shall, after due
advertisement, he exposed for sale at public auction to the bidder, and
so much of the property shall be thus sold as may be necessary to
satisfy the tax, penalty, and cost of the seizure and sale. The
purchaser at such sale shall acquire an indefeasible title to the
property.
Advertisement in such cases shall be given by notice
stating the name of the owner of the property to be sold, date, time,
place and cause of the sale, posted for twenty days before the date of
the auction at the main entrance of the city or municipal hall, or
municipal building, and at a public and conspicuous place in the barrio
or street where the property was seized, and announced by crier at the
market place at least three market days before the auction sale.
The sale shall take place, in the discretion of the provincial or city
treasurer or his deputy, either at the main entrance of the municipal
building or city or municipal hall or at the place where the property
was seized. If no satisfactory bid or no bid at all is received in the
place mentioned, the distrained property may be sold anywhere in the
province or city at public auction, after the advertisement and due
notice to the owner of the property.
Redemption of distrained property.
SEC. 71. Redemption
of distrained property.—The owner of personal property seized for
non-payment of taxes may redeem the same property from the collecting
officer at any time after seizure and before sale by tendering to him
the amount of the tax, penalty and costs incurred up to the time of
tender. The costs to be charged in making such seizure and sale shall
only embrace the actual expenses of seizure and preservation of the
property pending the same, but no charges shall be imposed for the
services of the collecting officer or his deputy.
Return of officer and disposition of proceeds.
SEC. 72. Return
of officer and disposition of proceeds.- The officer conducting a
sale under Section seventy hereof shall make immediate return of his
proceedings and a memorandum thereof shall be entered by the provincial
or city treasurer in his records. The excess, if any, of the proceeds of
the sale of the distrained personal property over the tax, penalty and
costs of sale and seizure and any of the property remaining unsold in
the hands of the officer, shall be returned to the taxpayer.
SEC.
73. Advertisement of sale of real property at public auction.—After
the expiration of the year for which the tax is due, the provincial or
city treasurer shall advertise the sale at public auction of the entire
delinquent real property, except real property mentioned in subsection
(a) of Section forty hereof, to satisfy all the taxes and penalties due
and the costs of sale. Such advertisement shall be made by posting a
notice for three consecutive weeks at the main entrance of the
provincial building and of all municipal buildings in the province, or
at the main entrance of the city or municipal hall in the case of
cities, and in a public and conspicuous place in barrio or district
wherein the property is situated, in English, Spanish and the local
dialect commonly used, and by announcement at least three market days at
the market by crier, and, in the discretion of the provincial or city
treasurer, by publication once a week for three consecutive weeks in a
newspaper of general circulation published in the province or city.
The notice, publication, and announcement by crier shall state the
amount of the taxes, penalties and costs of sale; the date, hour, and
place of sale, the name of the taxpayer against whom the tax as
assessed; and the kind or nature of property and, if land, its
approximate areas, lot number, and location stating the street and block
number, district or barrio, municipality and the province or city where
the property to be sold is situated.
Copy of the notice shall
forthwith be sent either by registered mail or by messenger, or through
the barrio captain, to the delinquent taxpayer, at his address as shown
in the tax rolls or property tax record cards of the municipality or
city where the property is located, or at his residence, if known to
said treasurer or barrio captain: Provided, however, That a
return of the proof of service under oath shall be filed by the person
making the service with the provincial or city treasurer concerned.
Stay of sale of real property.
SEC. 74. Stay of sale of real property.—At any time
during or before the sale the taxpayers may stay all proceedings by
paying the taxes and penalties due on the real property up to the time
of tender and costs to the provincial or city treasurer or his deputy
conducting the sale.
Discretion of provincial or city treasurer to buy real property in behalf of province or city.
SEC. 75. Discretion of provincial or city treasurer
to buy real property in behalf of province or city.—In case there
is no bidder at the public auction of the delinquent real property, or
if the highest bid is for an amount not sufficient to pay the taxes,
penalties and costs of sale, the provincial or city treasurer may, in
his discretion, buy the delinquent real property in the name of the
province or city for the amount of taxes, penalties due thereon, and the
costs of sale.
Certificate of sale to be issued purchaser, province or city.
SEC. 76. Certificate of sale to be issued
purchaser, province or city.—The purchaser at public auction of
delinquent property shall receive from the provincial or city treasurer,
or his deputy, a certificate setting forth the proceedings had at the
sale, a description of the property sold, the name of the purchaser, the
sale price, as well as the exact amount of the taxes and penalties due
and the costs of sale. The person in whose name the property is listed
and assessed shall be furnished with a copy of the sale certificate.
Report of sale to provincial or municipal board or city council.
SEC. 77. Report of sale to provincial or municipal
board or city council.—The provincial or city treasurer or his
deputy shall make a report to the provincial or municipal board or city
council of the sale within thirty days thereafter, and shall make the
same appear in his records.
Redemption of real property after sale.
SEC. 78. Redemption of real property after sale.—Within
the term of one year from the date of the registration of sale of the
property, the delinquent taxpayer or his representative, or in his
absence, any person holding a lien or claim over the property, shall
have the right to redeem the same by paying the provincial or city
treasurer or his deputy the total amount of taxes and penalties due up
to the date of redemption, the costs of sale and the interest at the
rate of twenty per centum, on the purchase price, and such
payment shall invalidate the sale certificate issued to the purchaser
and shall entitle the person making the same to a certificate from the
provincial or city treasurer or his deputy, stating that he had redeemed
the property.
The provincial or city treasurer or his deputy shall, upon
surrender by the purchaser of the certificate of sale previously issued
to him, forthwith return to the latter the entire purchase price paid by
him plus the interest at twenty per centum per annum herein
provided for, the portion of the cost of sale and other legitimate
expenses incurred by him, and said property shall thereafter be free
from the lien of said taxes and penalties.
Possession and usufruct of real property with-in one year from date of sale.
SEC. 79. Possession
and usufruct of real property with-in one year from date of sale.—After
the sale and before redemption, or before the expiration of the term of
one year fixed in Section seventy-eight hereof for such redemption, the
real property shall remain in the possession of the delinquent
taxpayer, who shall have the right to the usufruct thereof.
Issuance of final bill of sale.
SEC. 80. Issuance of final bill of sale.—In
case the delinquent taxpayer or his representative, or any person
holding a lien or claim over the property, fails to redeem the same
within the period of one year from the date of sale as provided in
Section seventy-eight hereof, the provincial or city treasurer shall
make an instrument sufficient in form and effect to convey to the
purchaser the property purchased by him, free from any encumbrance or
third party claim whatsoever, and the said instrument shall succinctly
set forth all proceedings upon which the validity of the sale depends.
Any balance of the proceeds of the sale left after deducting the amount
of the taxes and penalties due and the costs of sale, shall be returned
to the owner or his representative.
SEC. 81. Disposition of real property acquired by
province or city,—The provincial or city treasurer shall have charge
of the delinquent real property acquired by the province or city under
the provisions of Section seventy-five during which time the delinquent
taxpayer shall have possession and usufruct of such property in
accordance with Section seventy-nine hereof. Said treasurer shall take
steps within one year from the date of issuance of final bill of sale to
dispose of the delinquent real property at public auction; but at any
time before the auction sale, any person in his own right may repurchase
such property by paying the total amount of the taxes and penalties due
up to the time of repurchase, the costs of sale, and other legitimate
expenses incurred by the province or city with respect to the property,
and an additional penalty of twenty per cent on the purchase price: Provided,
however, That any such repurchase at or before auction sale shall
be subject to the right of the delinquent taxpayer or his representative
or any person holding lien or claim over the property to further redeem
said property within one year from the date of acquisition by the
province or city, in the manner provided in Section seventy-eight
hereof: and Provided, further, That if the treasurer has
entered into a contract for the lease of the property in the meantime,
any repurchase made hereunder shall be subject to such contract.
Collection of real property tax through the courts.
SEC. 82. Collection of real property tax through
the courts.—The delinquent real property tax shall constitute a
lawful indebtedness of the taxpayer to the province or city and
collection of the tax may be enforced by civil action in any court of
competent jurisdiction. The civil action shall be filed by the
Provincial or City Fiscal within fifteen days after receipt of the
statement of delinquent certified to by the provincial or city
treasurer. This remedy shall be in addition to all other remedies
provided by law.
Suits assailing validity of tax sale.
SEC. 83. Suits assailing validity of tax sale.—No
Court shall entertain any suit assailing the validity of a tax sale of
real estate under this Chapter until the taxpayer shall have paid into
court the amount for which the real property was sold, together with
interests of twenty per centum per annum upon that sum from the
date of sale to the time of instituting suit. The money so paid into
court shall belong to the purchaser at the tax sale if the deed is
declared invalid, but shall be returned to the depositor if the action
fails.
Neither shall any court declare a sale invalid by reason of
irregularities or informalities in the proceedings committed by the
officer charged with the duty of making sale, or by reason of failure by
him to perform his duties within the time herein specified for their
performance, unless it shall have been proven that such irregularities,
informalities or failure have impaired the substantial rights of the
taxpayer.
Payment of delinquent taxes on property subject of controversy.
SEC. 84. Payment of delinquent taxes on
property subject of controversy.—In any suit involving the ownership
or possession of, or succession to, real property, the court shall, on
its own motion or upon representation of this provincial, city or
municipal treasurer or his deputy, condition the award of such
ownership, possession or succession to any party to the controversy upon
the payment to the court of the taxes and penalties due on the property
and all the costs that may have accrued to the treasurer by reason of
his representation.
Treasurer to certify delinquencies remaining uncollected.
SEC. 85. Treasurer to certify delinquencies
remaining uncollected.—The provincial, city or municipal treasurer
shall prepare a certified list of all real property tax delinquencies
remaining uncollected or unsatisfied for at least one year in his
jurisdiction, and a statement of the reason or reasons for such
non-collection or non-satisfaction, and shall submit the same to the
Secretary of Finance on or before December thirty-first of the year
immediately succeeding that in which the delinquencies have occured with
a request for assistance in the enforcement of the remedies for
collection provided hereunder.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
