Taxpayer’s remedies I. Administrative (a) Protest Appeal to the Local Board of Assessment Appeals (LBAA) Appeal must be filed within 60 days from the date of receipt of the written notice of assessment (a) By filing a petition under oath in the form prescribed for the purpose (b) Copies of tax declarations and other affidavits or documents must be submitted (Sec. 226, LGC) The LBAA shall decide the appeal within 120 days from the date of receipt of such appeal (a) The LBAA shall have the power to summon witnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena duces tecum and/or subpoena (b) The LBAA must furnish the appellant a copy of the decision of the board. (Sec. 229, LGC) Fels Energy v. Province of Batangas (G.R. No. 168557, Feb. 16, 2007) - Under Section 226 of R.A. No 7160, the last action of the local assessor on a particular assessment shall be the notice of assessment; it is this last action, which gives the owner of the property the right to appeal to the LBAA. The procedure likewise does not permit the property owner the remedy of filing a motion for reconsideration before the local assessor. Victorias Milling v. CTA (G.R. No. L-24213, Mar. 13, 1968) - The failure to appeal within the statutory period renders the assessment final and unappealable. Appeal to the Central Board of Assessment Appeals (CBAA) Appeal must be filed within 30 days from the receipt of the decision of LBAA (Sec. 229, LGC) Effect of 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 the subsequent readjustment depending upon the final outcome of the appeal. (Sec. 231, LGC) (b) Payment of real property under protest File protest with local treasurer No protest shall be entertained unless the tax is first paid. The protest must be in writing and filed within 30 days from payment of the tax to the local treasurer. Meralco v. Nelia Barlis (G.R. No. 114231, May 18, 2001): The trial court has ha s no jurisdiction to issue a writ of prohibition which seeks to set aside the warrant of garnishment over petitioner’s bank deposit in satisfaction of real property taxes without paying first under protest the tax assessed and without exhausting available administrative remedies. The local treasurer shall decide the protest within 60 days from receipt.
Appeal to the LBAA Appeal must be filed within 60 days from the date of receipt of denial of protest or upon lapse of 60 days to decide (a) By filing a petition under oath in the form prescribed for the purpose (b) Copies of tax declarations and other affidavits or documents must be submitted (Sec. 226, LGC) The LBAA shall decided the appeal within 120 days from the date of receipt of such appeal (Sec. 229, LGC) Appeal to the CBAA Appeal must be filed within 30 days from the receipt of the decision of LBAA (Sec. 229, LGC) Appeal to the CTA En Banc Appeal must be filed through a petition for review within 30 days from the receipt of the decision of CBAA (Sec. 11, R.A. 1125 as amended) Appeal to the SC Appeal must be filed within fifteen (15) days from receipt of decision of the CTA (Rule 45, Rules of Court)
II. Judicial (1) Question on the legality of a tax ordinance (a) Any question on the constitutionality or legality of a tax ordinance may be raised on appeal within thirty (30) days from effectivity to the Secretary of Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal. (b) The appeal shall not have the effect of suspending the effectivity of the tax ordinance and the accrual and payment of the tax. (c) Within thirty (30) days after receipt of the decision or the lapse of the sixtyday period without the Secretary of Justice acting upon the appeal, the aggrieved party may file appropriate proceedings with a court of competent jurisdiction. (Sec. 187, LGC) (2) Assailing the validity of a tax sale No court shall entertain any action assailing the validity of any sale at public auction until the taxpayer shall have deposited with the court the amount for which the real property was sold, together with interest of two percent (2%) per month from the date of sale to the time of the institution of the action. (Sec. 267, LGC)
TAXPAYER’S REMEDIES INVOLVING COLLECTION OF REAL PROPERTY TAX UNDER THE LOCAL GOVERNMENT CODE (R.A. 7160) **For purposes of this flowchart owner means owner or administrator of real property or any person having legal interest thereto
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LT- Local Treasurer LGU - Local Government Unit LBAA- Local Board of Assessment Appeals CBAA- Central Board of Assessment Appeals CTA- Court of Tax Appeals
LT posts notice of deadline for payment at a conspicuous place at the LGU hall OR publish the same in a newspaper of general circulation in the LGU 1x a week for 2 consecutive weeks sec. 249
Assessor submits assessment roll to local treasurer (sec. 248)
Amount of tax protested shall be refunded or applied as tax credit (Sec. 252)
YES
LT collects the tax starting Jan 1 of the calendar year. (Sec. 257)
LT grants protest?
YES
LT decides w/in 60 days?
**Owner pays the tax. Written protest must be filed with the local treasurer w/in 30 days from payment. (sec. 252)
LT must decide w/ in 60 days from receipt of protest (sec. 252)
NO
NO Refund or tax credit must be claimed with the local treasurer w/in 2 years from the date taxpayer is entitled to such (sec. 253)
LT acts on claim for refund/tax credit w/in 60 days?
YES
LT grants refund/tax credit?
Taxpayer may appeal within 60 days from receipt of notice (or expiration of 60 days) to the LBAA Sec. 226
YES
Taxpayer happy. END
LBAA must decide within 120 days from receipt of appeal (sec. 229)
NO
NO
Taxpayer may appeal w/in 60 days from receipt of notice (or expiration of 60 days) to LBAA (Sec. 226)
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If LBAA rejects protest/ refund, owner may appeal to the CBAA w/ in 30 days from receipt of notice (Sec. 229)
Appeal to the Supreme Court w/ in 15 days
If CBAA rejects protest/ refund, owner may appeal to the CTA en banc within 30 days from receipt of decision (Rule 43, ROC)
