Philippine law on local government taxation

목차 (Table of Contents)

• CONTENTS
• INTRODUCTION = 1
• THE LOCAL GOVERNMENT CODE OF 1991 = 2
• THE CANDAZO BILL = 4
• PART ONE LOCAL GOVERNMENT TAXATION
• HISTORICAL BACKGROUND OF LOCAL TAXATION = 7
• Supervisory authority of the Department of Finance over local government treasury and assessment services = 10
• CHAPTER Ⅰ GENERAL PROVISIONS
• SEC. 128. Scope = 12
• The power to tax is the strongest of all governmental powers = 12
• Local Taxation distinguished from Internal Revenue Tax and Real Property Tax = 13
• Types of local taxes and other imposts which may be levied by LGUs = 13
• Sources of local taxing powers = 13
• Municipal corporations have no inherent power to tax = 14
• Congress can grant municipal corporations the power to tax = 14
• The principle of local autonomy does not make LGUs sovereign = 15
• SEC. 129. Power to Create Sources of Revenue = 15
• SEC. 130. Fundamental Principles = 16
• Limitations on the taxing powers of local governments = 16
• (a) TAXATION SHALL BE UNIFORM = 18
• Meaning of the term "uniformity" = 18
• Uniformity in each political subdivision = 18
• (b-1) TAXATION SHALL BE EQUITABLE = 19
• (b-2) TAXATION SHALL BE FOR PUBLIC PURPOSE = 20
• An inherent limitation = 20
• Scope of term "public purpose" = 20
• (b-3) TAXES MUST NOT BE UNJUST, EXCESSIVE, OPPRESSIVE, OR CONFISCATORY = 20
• When is a tax unjust, excessive, oppressive or confiscatory = 21
• The rule on "double taxation" = 21
• (b-4) TAXES MUST NOT BE CONTRARY TO LAW, PUBLIC POLICY, NATIONAL ECONOMIC POLICY, OR IN RESTRAINT OF TRADE = 22
• When is a local tax contrary to national economic policy = 22
• When taxes are in restraint of trade = 23
• (c) COLLECTION OF TAXES NOT TO BE LET TO ANY PRIVATE PERSON = 23
• The Candazo Bill seeks to delete Par. (c) of Sec. 130 of the law = 24
• (d) MONIES COLLECTED TO ENURE TO THE BENEFIT OF LGU = 24
• (e) LGU TO EVOLVE A PROGRESSIVE SYSTEM OF TAXATION = 24
• SEC. 131. Definition of Terms = 25
• Agricultural products : allowable transformation = 30
• Agricultural by-products = 30
• Fee as charges for services = 30
• Income to be considered marginal farmer = 30
• When an "agricultural product" is taxable = 30
• SEC. 132. Local Taxing Authority = 31
• Ordinance distinguished from Resolution = 31
• How local taxing power is exercised = 31
• Fixing of amount and rate of tax cannot be delegated = 32
• Municipality no authority to condone taxes previously accrued = 32
• Areas transferred to EPZA beyond jurisdiction of LGUs = 32
• EPZA-registered entities subject to local business tax outside Zone = 33
• Test of a valid ordinance = 33
• SEC. 133. Common Limitations on the Taxing Powers of Local Government Units = 34
• Kinds of general limitations to taxing powers of LGUs = 35
• (a) Prohibition from imposing tax on INCOME = 36
• Income tax on banks and other financial institutions = 36
• Business tax on banks different from income tax on banks = 37
• Proposed amendments under the Candazo bill = 38
• (b) Prohibition from imposing DOCUMENTARY STAMP TAX = 38
• (c) Prohibition from imposing tax on ESTATES, INHERITANCE, GIFTS, ETC. = 39
• (d) Prohibition from imposing CUSTOMS DUTIES, WHARFAGE DUES, ETC. = 39
• Nature of wharfage dues, and object of the limitation = 39
• When local governments may impose wharfage dues = 40
• Proposed amendment in the Candazo bill = 40
• (e) Prohibition from imposing TAXES ON GOOD CARRIED INTO OR OUT OF MUNICIPALITIES = 40
• Decided cases on locally imposed import-export tax = 41
• (f) Prohibition from imposing TAXES ON AGRICULTURAL AND AQUATIC PRODUCTS = 41
• When agricultural and acquatic products taxable = 42
• Producers of agricultural, marine and fresh water products, taxable = 42
• Deep-sea fishing companies now taxable by LGUs = 42
• Municipalities may levy taxes on sugar centrals = 42
• Proposed amendment in the Candazo bill = 43
• (g) Prohibition from imposing taxes on REGISTERED PIONEER OR NON-PIONEER BUSINESS ENTERPRISES = 43
• Definition of "pioneer enterprise" and "non-pioneer enterprise" = 43
• BOI-registered companies not exempt from permits, fees and charges = 44
• Power generation projects may be granted by BOI pioneer status = 44
• GUIDE IN IMPOSING BUSINESS TAX ON BOI-REGISTERED ENTERPRISES (DOF LFC No. 5-93) = 44
• Scope of exemption of pioneer and non-pioneer enterprises = 44
• Procedure in applying for tax exemption privilege = 45
• Procedure in imposing business tax on non-exempt BOI registered Enterprises = 45
• Deadline for availment of exemption in DOF guideline not mandatory = 46
• (h) Prohibition from imposing EXCISE TAXES = 46
• What is an "excise tax" = 47
• Articles subject to excise taxes under the NIRC = 47
• (i) Prohibition from PERCENTAGE OR VALUE-ADDED TAX = 47
• What is a percentage tax = 48
• Nature of the value-added tax = 48
• (j) Prohibition from taxes on GROSS RECEIPTS OF TRANSPORTATION CONTRACTORS = 48
• Local units may tax tricycle operation = 48
• LGUs may now tax transportation contractors = 48
• (k) Prohibition from TAXES ON PREMIUMS PAID BY REINSURANCE OR RETROCESSION = 48
• (l) Prohibition from REGISTRATION OF MOTOR VEHICLES OR ISSUING LICENSES OR PERMITS = 49
• LGUs have no authority to determine if motor vehicles are safe = 49
• LGUs may tax vehicles not within the definition of "motor vehicles" = 49
• Vehicles that are taxable by local governments = 50
• Proposed amendment in the Candazo bill = 50
• (m) Prohibition from taxes on PHILIPPINE EXPORTED PRODUCTS = 50
• Privilege of engaging in business of exporting is taxable = 51
• (m) Prohibition from imposing taxes on COUNTRYSIDE AND BARANGAY BUSINESS ENTERPRISES & COOPERATIVES = 51
• What are "countryside and barangay business enterprises" = 51
• Exemptions of cooperatives, what it excludes = 51
• Exemptions in the Omnibus Investments Code does not extend to taxes imposed under the Local Tax Code = 52
• Proposed amendment in the Candazo bill = 52
• (n) Prohibition from taxes on NATIONAL GOVERNMENT, ITS AGENCIES AND LOCAL GOVERNMENTS = 52
• What are "property for public use" in local governments = 53
• Carriageways and terminals of LRTA not exempt from realty tax = 53
• Proposed amendment in the Candazo bill = 54
• CHAPTER Ⅱ SPECIFIC PROVISIONS ON THE TAXING AND OTHER REVENUE-RAISING POWER OF LGUS
• Article One - Provinces
• SEC. 134. Scope of Taxing Powers = 55
• Taxing powers of provinces = 55
• Taxes, fees and charges which provinces are specifically empowered To impose under the Local Government Code = 55
• Taxes, fees and charges which provinces may impose although not Not specifically enumerated in the Local Government Code = 56
• SEC. 135. Tax on Transfer of Real Property Ownership = 57
• What is "fair market value" = 57
• Rate of transfer tax if municipality has not passed new ordinance = 57
• Computation of transfer tax in case of foreclosed real property = 58
• Sale of land for socialized housing exempt from transfer tax = 59
• Transfers of real property not subject to tax = 59
• When to pay tax : distinction between date of execution and date of Registration of deed of sale = 60
• Modes of transferring ownership = 60
• Basis of tax rate : consideration or fair market value = 60
• Who shall pay the transfer tax, and when = 61
• Duties of certain officers to ensure payment of transfer tax = 61
• SEC. 136. Tax on Business of Printing and Publication = 61
• Who are engaged in the business of printing = 62
• Tax on the business of printing and publication of newspapers, etc. = 62
• Publisher's receipts from sale of textbooks to DECS exempt from tax = 62
• SEC. 137. Franchise Tax = 63
• What is "annual gross receipts" = 63
• Businesses which are beyond taxing jurisdiction of provinces = 63
• Municipalities may grant franchises, but has no power to impose Franchise tax = 63
• NPC, a government corporation, is liable for franchise tax = 64
• Certificates of public convenience, not franchise = 64
• Capital investment as basis of franchise tax on newly started business = 64
• Nature of "franchise" = 65
• Not all business enjoying franchise are liable to the tax = 65
• Terms of franchises vary : some admit of franchise tax = 65
• Transportation companies not subject to franchise tax = 66
• Uncollected gross receipts are included in computing franchise tax = 66
• Existing franchises not affected by the Code and the new Constitution = 67
• Proposed amendment in the Candazo bill = 67
• SEC. 138. Tax on Sand, Gravel and Other Quarry Resources = 67
• Quarry resources, what it include = 68
• Importance of regulating extraction of sand in beaches = 68
• How to determine "fair market value" of sand, gravel, etc. = 68
• Quarry resources : meaning of = 69
• Contractors of government infrastructure projects are subject to sand and gravel tax = 69
• Power to impose sand and gravel fee belongs to the province and not to the municipality = 69
• Rules and regulations governing issuance of permits = 69
• Preferential right of private landowner = 70
• SEC. 139. Professional Tax = 70
• Rate of professional tax imposable by cities = 71
• Professionals who are subject to pay the professional tax = 71
• Papers required to be presented by professionals when paying tax = 71
• Procedure prescribed in collecting professional tax = 72
• Time for paying professional tax = 72
• Permit fees may not be imposed in addition to occupation tax = 72
• Partnership among professionals subject to business tax as contractor = 73
• Professionals in government need not pay tax : tax on practice of two professions = 73
• Proposed amendment in the Candazo bill = 74
• SEC. 140. Amusement Tax = 74
• Exemption from amusement tax, subject to DOF guidelines = 74
• Rate of amusement tax imposable by cities = 75
• How to compute the amusement tax payable by proprietors, etc. = 75
• Municipalities may still impose business tax on places of amusement = 75
• Limits to authority of city to impose amusement tax = 76
• Suggested administrative provisions in imposing the amusement tax = 76
• Who shall pay the amusement tax = 77
• What constitute "other places of amusements" = 77
• When athletic meets, benefit shows, etc. are tax exempt = 77
• Guidelines in granting exemptions on paid admission = 78
• Cockpits, race tracks, stadia subject to amusement tax on admission = 80
• Difference between amusement tax on admission collected by local governments and the amusement tax collected by the B. I. R. = 80
• SEC. 141. Annual Fixed Tax For Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products = 81
• Taxpayers subject to tax = 81
• Taxpayers subject to tax in Sec. 141 may no longer be taxed under Sec. 143(g) of the Code = 81
• When tax should apply to operators of delivery trucks that merely deliver goods for clients for a fee = 82
• Proposed amendment in the Candazo bill = 82
• Article Two - Municipalities
• SEC. 142. Scope of Taxing Powers = 83
• Specific limitations on the taxing powers of municipalities = 83
• Summary of taxing and other revenue-raising powers of municipalities = 83
• Taxes and fees which municipalities may not impose = 84
• SEC. 143. Tax on Business = 84
• Level of local government that may impose business taxes = 88
• Nature of graduated tax based on sales or receipts = 89
• Scope of phrase "gross sales for the preceding calendar year" = 89
• Local legislative bodies may lower tax rates in general = 89
• Business tax based on "output" or "production", prohibited = 89
• Proposed amendment in the Candazo bill = 89
• (a) BUSINESS TAX ON MANUFACTURERS, ETC. = 90
• Rates of tax on domestic sales of manufacturers, assemblers, etc. different from their export sales = 90
• Manufacturers, assemblers, repackers, etc. in Sec. 143(a) not taxable as wholesalers, distributors, etc. under Sec. 143(b) = 90
• Pepsi-Cola Products Phils., Inc. is a manufacturer = 91
• How to compute the manufacturers tax = 91
• Manufacturers may tax sugar centrals but not tuba producers = 91
• Municipalities and cities prohibited from taxing petroleum products and excise taxes on articles already taxed in the NIRC = 91
• May municipalities and cities impose "business taxes" on gasoline stations = 92
• Producers of agricultural, marine and fresh water products are taxable = 93
• A firm may be taxable both as "exporter" and "manufacturer" = 94
• Company engaged in so-called "indirect export sales" is taxable = 94
• Mere buying activity in one place not taxable under Sec. 143 of Code = 94
• Business establishment with peddling outlets taxable only under Sec. 141 of the Local Government Code = 95
• (b) BUSINESS TAX ON WHOLESALERS DISTRIBUTORS, OR DEALERS IN ANY ARTICLE OF COMMERCE = 95
• How to compute the business tax of a retailer selling both essential and non-essential commodities = 96
• (c) BUSINESS TAX ON EXPORTERS, AND MANUFACTURERS, MILLERS, ETC., RETAILERS OF ESSENTIAL COMMODITIES = 96
• Meaning of "exporter" for purposes of the business tax = 96
• What is the rate of the business tax for "indirect exporters" = 97
• Tax on business of exporting distinguished from tax on exported products = 97
• Logging company in the export business is taxable = 97
• Who may enjoy the reduced tax on sale of essential commodities = 97
• Taxes on the business of milling rice and corn = 98
• Additional tax on millers who a1so buy grains to sell after milling = 98
• How to determine gross receipts of rice and corn millers = 98
• GUIDELINES IN IMPOSING BUSINESS TAX ON IMPORTERS = 98
• Definition of "exporter", "export sales", and "subcontractors" = 99
• When sales of export products to another deemed export sales = 99
• Sales of local goods for use of Filipinos abroad are export sales = 99
• Procedure of imposing business tax on exporters = 100
• Non-separability of business enterprise registered with BOI = 100
• Situs of business tax on exporters and allocation of sales for purposes of paying the tax = 100
• Transfer or relocation of the principal or branch office = 102
• Port of loading alone is not sufficient to impose exporter's tax = 102
• (d) BUSINESS TAX ON RETAILERS = 102
• Guidelines on the exercise by cities, municipalities and barangays of the power to impose business tax on retailers = 102
• When barangays may impose business tax on retailers = 103
• Difference a "retailer" and a "dealer" = 103
• How to determine taxes payable by a retailer who is also a wholesaler dealing both in essential and non-essential commodities = 103
• (e) BUSINESS TAXES ON CONTRACTORS AND INDEPENDENT CONTRACTORS = 104
• Partnership among professionals subject to business tax as contractors = 104
• GUIDELINES IN IMPOSING BUSINESS TAX ON CONSTRUCTION CONTRACTORS = 104
• Taxable gross receipts of construction contractors = 105
• Situs of business tax on construction contractors = 105
• Contractors of government infrastructure projects are taxable = 106
• (e) BUSINESS TAXES ON BANKS & OTHER FINANCIAL INSTITUTIONS = 106
• Taxes which cities and municipalities may levy on banks, etc. = 107
• "Business tax" on banks distinguished from "income tax" on banks = 107
• GUIDE IN IMPOSING TAX ON BANKS AND OTHER BANKING INSTITUTIONS = 108
• What does "gross receipts" of banks include = 108
• Income and receipts of banks excluded from taxing authority of LGUs = 109
• Situs or place of payment of tax on banks = 109
• Is PCIC, a government corporation, subject to business tax = 109
• GUIDELINES IN IMPOSING BUSINESS TAX ON INSURANCE COMPANIES = 110
• Insurance companies included in term "other financial institutions" = 110
• Rate of tax to be levied on gross receipts of insurance companies = 110
• What constitutes "gross receipts" of insurance companies subject to tax = 111
• Commissions and other earnings of insurance agents, insurance brokers, and sales representatives are not taxable = 111
• Situs or place of payment of tax on insurance business = 112
• GUIDE IN IMPOSING BUSINESS TAX ON FINANCING COMPANIES = 112
• Businesses included in term "financing companies" = 112
• What are covered in the "gross receipts" of financing companies = 113
• Situs or place of payment of tax on financing companies = 113
• COMMON PROVISIONS APPLICABLE TO BANKS AND INSURANCE AND FINANCING COMPANIES = 114
• Rates of business tax that my be impised on gross receipts of banks, insurance companies, and financing companies = 114
• Time of payment of tax on banks, insurance companies, etc. = 114
• Non-separability of the business either of banking, insurance and financing for purposes of the local tax = 114
• Examination of books of accounts and pertinent records of banks, Insurance companies, and financing companies = 115
• (g) BUSINESS TAXES ON PEDDLERS = 115
• Vehicles exempt from peddler's tax = 115
• Distinction between the tax on delivery trucks and that on peddlers = 115
• (h) BUSINESS TAX ON OTHER BUSINESSES NOT MENTIONED = 116
• Production, refining or sale of gasoline or pertroleum products not taxable by local units = 116
• Building used as commercial stalls, bodegas, offices and residence classified as "shopping center" = 116
• SEC. 144 Rates of Tax within the Metropolitan Manila Area = 117
• Taxes which may be levied and collected by municipalities within MMA = 118
• Effect of Local Government Code on taxing powers of MMC = 118
• Power to impose local taxes within Metro Manila Area under the Code = 119
• SEC. 145. Retirement of Business = 119
• Meaning of "termination" in case of retirement of business : effect of change of ownership, management, or name = 119
• Guidleine in acting on application for retirement or termination of business = 120
• Payment of outstanding taxes before retirement = 120
• Surrender of permit of retiring or terminating business = 120
• Guideline in computing rate of tax payable by retiring business = 120
• Illustrative example in computing tax on retiring business = 121
• SEC. 146. Payment of Business Taxes = 121
• Rule in payment of taxes of two or more related or combined businesses = 122
• Different business establishments by same owner are taxable separately = 122
• Businesses where "rule on non-separability of business" applies = 122
• Establishments operating different lines of businesses in different cities, how to compute tax in Sec. 146(c) of the Code = 123
• Transfer of business head office from one city to another during the year : which taxes to pay in both = 123
• Two or more businesses operated by the same person are subject to separate taxes : how to compute tax = 124
• SEC. 147. Fees and Charges = 125
• Distinction between "fee" and "charge" = 125
• Nature of permit fees = 126
• Nature of storage fees = 126
• "Fee" distinguished from "tax" and "service charge" = 126
• Fees and charges which municipalities may impose on businesses and occupation = 126
• Distinction between a fee and a tax = 127
• Administrative requirements when issuing Fire Inspection Fee = 127
• What is reasonable amount of Annual Fire Inspection Fee = 127
• Security agency subject to mayor's permit in every municipality／city where it maintains "detachment" = 128
• Fees which the municipality may impose = 128
• Mayor's permit fee imposed on persons and goods going out of province is prohibited = 128
• Inspection fee on fish is prohibited = 129
• How to determine reasonableness of a "permit fee" = 129
• Authority of municipality to impose licenses = 130
• Illustrative cases on the issue of "reasonableness of fees" = 130
• LGU's imposing permit fees must perform regulatory functions = 131
• Power of local governments to regulate gambling, withdrawn = 132
• Annual permit fee may be imposed on top of annual business fee = 132
• Transportation contractor not subject to local permit fees = 132
• Betamax operator charging sums to viewing public, subject to mayor's fee = 133
• When mayor's permit may be revoked due to false application = 133
• Mayor's permit fee on aliens declared unconstitutional = 133
• Service charge collectible only if local unit owns or maintains the facilities, unless imposed as a fee for registration = 134
• Level of local government that may impose fees and charges = 134
• Power to issue Building Permits, and requirements therefor = 134
• Imposition of marriage fees and related issues = 134
• SEC. 148. Fees for Sealing and Licensing of Weights and Measures = 134
• Ordinance providing rules for use of weights and measures : sanctions = 135
• Importance in enforcing rules for sealing and licensing of weights and measures = 135
• Guide in formulating local ordinances imposing fees for sealing and licensing of weights and measures = 136
• Nature of fees for sealing weights and measures = 136
• Use of the metric system = 136
• Administrative regulations for the effective enforcement in the sealing and licensing of weights and measures = 137
• What constitute "short measuring" = 137
• Local governments are urged to prescribe uniform amounts of fees and date of renewal of license = 137
• SEC. 149. Fishery Rentals, Fees and Charges = 138
• Organizations and cooperatives need not undergo public bidding for fishery privileges = 139
• What is "muro-ami" and similar prohibited devices = 139
• Effect of Sec. 149 of the Code on exisiting fishery laws = 139
• Fishery privileges which municipalities and cities have exclusive authority to grant = 140
• Who issues permits for fishery privileges at Laguna Lake = 140
• Operative provisions of P. D No. 704 related to the authority of local units to grant fishery privileges = 141
• Guide to the sanggunian in promulgating rules on the granting of fishery privileges = 142
• Operators of fishponds may be required to pay = 142
• Deep-sea fishing not subject to business tax = 142
• A municipality may tax government-owned fishponds leased to private individuals = 143
• Fees on fishing vessels based on engine horsepower = 143
• When to zonify municipal waters = 143
• Fixing of minimum bids in public auctions for grant of fishery rights = 143
• Restrictions on the gathering and／or culture of seaweeds = 144
• SEC. 150. Situs of the Tax = 144
• Definition of terms for purposes of the Situs of the Tax = 145
• Procedure in allocating sales of manufacturers, producers, distributors, etc. for purposes of determining the situs of the tax = 146
• Situs of tax where company has principal office in one city while its plantation and farm office is located in another province = 147
• Situs of tax where a company has an office in one municipality where sales are made, and a warehouse in another as storage = 148
• Principal office for administrative purposes in a municipality, but factory and sales offices in a city = 148
• Situs of tax of contractor with principal office in a city and a project Office and stock area in a municipality = 148
• Situs of tax rule in case of manufacturers or producers which engage The services of independent contractors = 149
• Situs of tax where domestic sales transacted in one municipality while export sales made in another city = 149
• When is a warehouse not subject to business tax = 150
• Locality which is the port of loading may or may not impose tax = 150
• Situs of tax of manufacturer with principal office and factory in One city, and sales outlets in two others = 150
• Situs of tax of company with principal office in one city, with whare-houses in various municipalities, and sales made therein and in different other places = 150
• Procedure in allocating sales made by route trucks, vans, etc. = 151
• Article Three - Cities
• SEC. 151. Scope of Taxing Powers = 153
• Rate and basis of percentage tax on business imposable by cities = 153
• Rates of city taxes required to be uniform with those of the province = 153
• Sharing of proceeds from tax on sand, gravel, etc. in highly urbanized cities = 153
• Nature of "highly urbanized city" = 154
• Taxes and other impositions which cities may levy = 154
• Mandatory taxes which cities have to impose = 155
• Article Four-Barangays
• Role of the barangay governments = 156
• Basic services and facilities of barangays = 156
• SEC. 152. Scope of Taxing Powers = 156
• Meaning of "commercial breeding" of fighting cocks = 157
• Meaning of "places of recreation" = 157
• Prescribed rates for fees and charges on billboards, signboards, neon signs, and outdoor advertisements = 157
• The taxing and other revenue-raising powers of barangays = 158
• Barangays may impose business tax on sari-sari stores = 159
• A "poblacion" is considered a barangay = 160
• Are barangays authorized to impose "unspecified taxes" under Sec. 186 = 160
• Approval and review of barangay tax ordinances = 160
• Publication of barangay tax ordinances = 161
• Collection of revenues by, and bonding of, barangay treasurers = 161
• Examination of books of accounts by barangay treasurers = 162
• Appointment, qualifications, and bonding of barangay treasurers = 162
• Extent of cash accountability of barangay treasurers : schedule of bonds = 162
• Duty of barangay treasurer pertaining to collection of revenues = 163
• Other administrative provisions in the collection of barangay taxes = 163
• What are the elements of a "store" for purposes of the barangay tax = 163
• Barangay clearance as prerequisite for engaging any business = 163
• Barangay fees on places of recreation = 164
• Solicitation of monies, materials, and voluntary labor for specific projects : and grants-in-aids, subsidies and contributions = 164
• Authority to hold fund-raising activities for barangay projects = 164
• Proposed amendment in the Candazo bill = 165
• Article Five Common Revenue-Raising Powers
• Summary of common revenue-raising powers of provinces, cities, municipalities and barangays under the Code = 166
• SEC. 153. Service Fees and Charges = 167
• Amount that may be imposed as fees or charges : capital investments And gross sales／receipts prohibited as basis thereof = 167
• Fees, license fees, service fees, and charges, distinguished = 167
• SEC. 154. Public Utility Charges = 168
• Candazo bill proposes to establish public utilities fund = 169
• Limitations to net profits of public utilities = 169
• Audit of local government public utilities = 169
• Public services of local governments need not secure certificate of public convenience = 170
• Public utilities which may be operated by local governments = 170
• Municipal governments may construct off-street parking = 170
• Administrative provisions in the operation of public markets and Slaughterhouses = 171
• Features of the Market Code of Metro Manila = 172
• Municipal public markets may be leased to and managed by private parties = 172
• Kinds of imposable market fees = 173
• Are LGUs authorized to collect market fees in private markets = 173
• Market fees based by the kilo on fish sold = 174
• What is considered "reasonable" market rental or fee = 174
• Do "market premises" extend to municipal streets = 175
• Procedure in adjudicating vacant market stalls or booths = 175
• Public bidding not used in adjudicating stalls or booths = 176
• Lessee to personally administer his stall = 176
• Nationalization of public markets = 176
• Extent of municipal control over public markets = 176
• Municipality has no authority to collect market fees where land is not owned by it = 177
• Appointment and supervision of market sweepers = 177
• Market stallholders acquire no vested rights over stalls = 177
• When market stall occupants have right of first priority = 177
• Sale of meat outside public markets = 177
• City mayor alone cannot provide for the opening, operation and closure of a public market = 178
• Franchise to establish and operate markets and slaughterhouses = 178
• A public market may be privately-owned and privately-operated = 178
• What is a "corral" = 179
• Rates of ante-mortem and post-mortem fees = 179
• Tuition fees of vocational and technical schools operated by LGUs = 179
• SEC. 155. Tool fees or Charges = 179
• Definition and nature of "tolls" = 180
• Toll rates, how determined = 180
• Article Six-Community Tax
• SEC. 156. Community Tax = 181
• Cities and municipalities mandated to impose community tax = 181
• Community Tax replaces Residence Tax = 181
• Registered cooperatives are exempt from community tax = 181
• Basic features of the Community Tax = 182
• Some administrative provisions to be considered when drafting ordinance imposing community tax = 183
• SEC. 157. Individuals Liable to Community Tax = 184
• Basic aid additional community tax in case of husband and wife = 184
• Individuals liable to the community tax = 184
• Rate of tax for individuals = 185
• Income of rice millers subject to community tax = 185
• Proposed amendment in the Candazo bill = 185
• SEC. 158. Juridical Persons Liable to Community Tax = 186
• Corporation liable to the community tax = 186
• Rate of tax on corporations = 186
• Proposed amendment in the Candazo bill = 187
• SEC. 159. Exemptions = 187
• Registered cooperatives exempt from community tax = 187
• Proposed amendment in the Candazo bill = 187
• SEC. 160. Place of Payment = 188
• Where corporation should pay their community tax = 188
• Collecting community tax outside the jurisdiction of city or municipality considered unlawful = 188
• Liability for paying community tax other than place of residence = 188
• Taxpayer may pay community tax in city or municipality where he is temporarily on sojourn = 189
• Payment of tax thru mails = 189
• SEC. 161. Time for Payment : Penalties for Delinquency = 189
• Penalty for late payment of community tax = 190
• SEC. 162. Community Tax Certificate = 190
• SEC. 163. Presentation of Community Tax Certificate on Certain Occasions = 191
• When community tax certificates required to be presented = 191
• SEC. 164. Printing of Community Tax Certificates and Distribution of Proceeds = 192
• Extent of authority of barangay treasurers to collect community tax = 192
• Rules on the printing and distribution of community tax certificates = 193
• Barangay treasurers may not directly requisition community tax certificate forms = 193
• Barangay treasurers may not collect community tax of corporations = 193
• Deputation of barangay treasurers are discretionary = 194
• Securing community tax certificates from private printing establishments, prohibited = 194
• Accrual and distribution of proceeds of community tax = 194
• CHAPTER Ⅲ COLLECTION OF TAXES
• SEC. 165. Tax Period and Manner of Payment = 196
• What is a "tax period" = 196
• Tax period does not apply to permit fees and public utility charges = 196
• SEC. 166. Accrual of Tax = 196
• Distinction between "accrual of tax" and "time for payment" = 197
• SEC. 167. Time of Payment = 197
• When local taxes, fees, and charges may be paid without penalty = 197
• Extension of time of payment of tax without penalty = 198
• SEC. 168. Surcharges and Penalties on Unpaid Taxes, Fees And Charges = 198
• Non-payment of lease of public market stalls = 198
• Imposition and computation of surcharges and penalties = 198
• When late payment of under-collection of tax is not subject to surcharge and interest = 199
• Imposition of surcharges and interests on unpaid tax is mandatory = 199
• How to compute interests for late payment = 200
• Surcharges and interests in case of extension = 200
• SEC. 169. Interests and Other Unpaid Revenues = 200
• What other "unpaid revenues" refer to : penalty for late or non-payment = 201
• Only local treasurers or their deputies may collect local taxes = 201
• Deputizing barangay treasurer to collect local taxes, fees or charges = 201
• Who are authorized to collect taxes : bonding of barangay treasurers = 201
• Supervision over local treasurers in tax collection efforts = 202
• Supervisory powers of provincial treasurers over other treasury offices = 202
• Neglect of officials to collect tax is not estoppel = 202
• Auditors negligent in supervising collectors = 202
• Municipal treasurers as deputies of provincial treasurers = 203
• Duty of collecting provincial taxes = 203
• Who has authority to designate collecting officers = 203
• Bonding of tax collectors and other accountable officers = 203
• The Schedule of bonds = 204
• Duty to notify Treasurer of the Philippine for bonding purposes = 205
• Extent of liability of the fidelity fund = 206
• Adjudication and payment of claims against the fidelity fund = 206
• Bond where accountability is less than PhP2,000 = 207
• Accountable officers considered unsafe risks = 207
• Collections must be acknowledged with official receipts : use of mechanical devices = 207
• LGUs may not design nor print their own official receipts = 207
• Kinds of official receipt forms and their uses = 208
• Tax collection procedures = 209
• Acknowledging tax payments thru accountable forms = 209
• How to accomplish the official receipt = 209
• Collecting the tax where no proper official receipt is available = 210
• Private checks in payment of taxes = 210
• Warrants and checks receivables in payment for taxes = 211
• Markings require on real property tax receipts = 211
• Penal liability for failure to issue official receipt = 212
• Notice of loss of accountable forms required = 212
• Unexplained possession of private checks with accountable officers = 212
• Payment of tax thru the mails = 213
• Crimes committed by tax collecting officers = 213
• In malversation, indemnification of amount only extinguishes civil liability = 213
• Accounting forms, reports, and transaction documents prescribed to account for collections = 214
• Preparation of taxpayer's cards and list of delinquents = 214
• When treasurers may commence collecting on new tax ordinance = 214
• Additional requirements as pre-requisite to issuance of business licenses = 215
• SEC. 171. Examination of Books of Accounts and Pertinent Records of Businessmen by Local Treasurer = 215
• Who may examine books of accounts and records of businessmen = 216
• Time and frequency of examination = 216
• Limitation as to tax period which may be examine = 216
• Guideline and forms to be used in examining books of accounts = 217
• Extent of local treasurer's authority to examine books of accounts = 217
• Prescribed forms to be used in examining books of accounts = 217
• Are city mayors and their deputies authorized to examine books of accounts of local taxpayers = 218
• Books of accounts required to be kept = 218
• Registration of books, records, and invoices before use = 219
• Who are required to keep books of accounts = 219
• Who are required to keep simplified set of bookkeeping records = 219
• What are required to be recorded in the simplified set of bookkeeping records = 219
• What are "records of inventories", and who shall keep them = 220
• Who are required to issue invoices and receipts = 220
• When public market vendors are required to issue invoices = 221
• Use of cash register machines = 221
• Books of account of market vendors = 221
• Proposed amendment in the Candazo bill = 221
• CHAPTER Ⅳ CIVIL REMEDIES FOR COLLECTION OF REVENUES
• SEC. 172. Application of Chapter = 222
• Provisions on civil remedies need not be embodied by ordinance = 222
• SEC. 173. Local Government's Lien = 222
• What is a "tax lien", and how is it enforced = 222
• Properties to which lien attaches = 223
• SEC. 174. Civil Remedies = 223
• Forms of civil remedies for the collection of delinquent local taxes = 223
• How collection of tax through the courts is commenced = 224
• Jurisdiction of the court : how determined = 224
• Venue or place where court action to collect tax may be filed = 224
• Fiscal need not be authorized to file suit = 224
• Reliefs which may be allowed in legal actions = 225
• SEC. 175. Distraint of Personal Property = 225
• Personal properties exempt from civil remedy of distraint = 227
• May local treasurers effect "constructive" distraint = 227
• Procedure for the distraint of personal property = 227
• Initial act that subjects personal property to distraint = 228
• SEC. 176. Levy on Real Property = 228
• Meaning of term "levy" = 229
• Procedure when real property is levied for nonpayment of tax = 229
• Initial act that subjects real property to levy = 229
• SEC. 177. Penalty for Failure to Issue and Execute Warrant = 229
• Penalty of treasurer who fails to enforce collection of delinquent tax = 230
• Liability of city assessor for erroneously listing a property as delinquent and demanding payment therefor = 230
• SEC. 178. Advertisement and Sale = 230
• Applicability of the provision = 213
• SEC. 179. Redemption of Property Sold = 232
• Rights of the delinquent taxpayer over real property sold = 232
• SEC. 180. Final Deed of Purchaser = 233
• SEC. 181. Purchases of Property by the Local Government Units for Want of Bidder = 233
• When local unit may purchase property offered for sale = 233
• Local officials are prohibited from purchasing real property sold for unpaid taxes = 234
• SEC. 182. Resale of Real Estate Taken for Taxes, Fees, or Charges = 234
• When LGU may sell forfeited property = 234
• SEC. 183. Collection of Delinquent Taxes, Fees, Charges or Other Revenues through Judicial Action = 234
• SEC. 184. Further Distraint or Levy = 235
• SEC. 185. Personal Property Exempt from Distraint or Levy = 235
• CHAPTER Ⅴ MISCELLANEOUS PROVISIONS
• SEC. 186. Power to Levy other Taxes, Fees or Charges = 37
• SEC. 187. Procedure for Approval and Effectivity of Tax Ordinances and Revenue Measures : Mandatory Public Hearing = 238
• Procedure for the enactment of tax ordinances = 238
• Approval and veto of tax ordinance = 240
• Grounds for veto of a tax ordinance = 240
• Procedure for conducting public hearing of tax ordinances = 240
• Penalties for violation of tax ordinances = 241
• Authority of LGUs to adjust rates of taxes = 241
• DOF has no power to review local tax ordinances under the Code = 241
• Power to review tax ordinances under the Code = 242
• Who determines the legality or propriety of a local tax ordinance = 242
• Numbering of tax ordinances = 242
• How to appeal the legality of tax ordinances = 243
• Effect of the appeal on the effectivity of the tax ordinance = 243
• Procedure for approval, review, publication and effectivity of tax ordinances = 243
• SEC. 188. Publication of Tax Ordinances and Revenue Measures = 243
• Tax ordinances with penal provisions : publication of = 244
• Effectivity of tax ordinance : when payment commences = 244
• Public hearing and publication necessary for validity of tax ordinance = 244
• SEC. 189. Furnishing of Copies of Tax Ordinances and Revenue Measure = 244
• public hearing and publication necessary for validity of tax ordinances = 245
• Duty to submit copies of tax ordinances, and responsibility of local treasurers to disseminate contents thereof = 245
• SEC. 190. Attempt to Enforce Void or Suspended Tax Ordinances and Revenue Measures = 245
• Liability of officials attempting to enforce tax ordinances deemed rescinded, suspended, or declared illegal = 245
• Duty of public officers to enforce ordinances : presumption of validity = 245
• Presumption in favor of validity of tax ordinances = 146
• SEC. 191. Authority of Local Government Units to Adjust Rates of Tax Ordinances = 246
• Extent of authority of local units to adjust tax rates = 246
• The Candazo bill amendatory proposal = 247
• SEC. 192. Authority to Grant Tax Exemption Privileges = 247
• Local governments have no inherent power to grant tax exemptions = 247
• Tax exemption privileges or incentives not applicable to regulatory fees = 247
• Issuance of "tax exemption certificates" = 247
• Guidelines in granting tax exemptions or tax reliefs = 248
• Guideline in the grant of tax incentives = 248
• Objectives and forms of tax exemptions = 248
• Exemption from taxation is not favored = 249
• Municipal council cannot condone taxes : tax exemption different from condonation = 249
• Rule on condonation of taxes already due = 249
• Proposed changes in the Candazo bill = 250
• SEC. 193. Withdrawal of Tax Exemption Privileges = 250
• Withdrawal of tax exemption privileges : exemptions = 250
• Tax exemption of cooperatives does not extend to service charges = 251
• National Housing Authority exempt from real property tax = 251
• Scope of exemption from the realty tax granted to Local Water Districts = 251
• Local taxes which shall continue to be collected on local water districts = 252
• Tax exemption on EPZA-registered enterprises not withdrawn = 252
• Proposed amendment in the Candazo bill = 252
• CHAPTER Ⅵ TAXPAYER'S REMEDIES
• Rule on prescription of taxes = 253
• Assessment and collection of taxes now prescribe under the Code = 253
• SEC. 194. Periods of Assessment and Collection = 253
• Assessment distinguished from collection = 254
• Prescription in the assessment and collection of local taxes = 254
• Suspension in the running of the period of prescription = 255
• Prescription does not run in the absence of a valid tax declaration = 255
• SEC. 195. Protest of Assessment = 255
• Protest of assessment in Sec. 195 different from assessment appeal in Sec. 226 = 256
• Assessment in Sec 194 distinguished from that in Sec. 195 = 256
• Appeal from tax ordnance and protest against assessment, differentiated = 257
• Effect of failure to protest assessment within prescribed period = 257
• SEC. 196. Claim for Refund of Tax Credit = 258
• Procedure for claiming refund or tax credit = 258
• Form of tax credit that may be granted = 258
• When tax credit may be refunded in cash = 258
• Conditions precedent for claiming tax refunds or credits with the courts = 258
• Delegation of taxing powers to administrative bodies = 259
• Secretary of Finance to issue procedures for claiming refund or tax credit = 259
• PART TWO REAL PROPERTY TAXATION
• INTRODUCTION
• Historical Background = 260
• Authorized local impositions on real property = 260
• CHAPTER Ⅰ GENERAL PROVISIONS
• SEC. 197. Scope = 262
• "Appraisal" and "assessment" defined = 262
• The term "assessment" includes "appraisal" = 262
• What is "real property" = 262
• Certain "personal properties" classified as real property for taxation purposes = 263
• Carriageways and passenger terminal stations are real property = 264
• SEC. 198. Fundamental Principles = 264
• (a) Appraisal at current and fair market value = 264
• (b) Classification of real property for purposes of assessment = 264
• (c) Uniformity in assessment in each political subdivision = 265
• Effect of squatters on land valuation = 265
• (d) Private persons cannot perform assessment and tax collection = 265
• (e) Appraisal and assessment shall be equitable = 266
• SEC. 199. Definitions = 266
• Machinery for general purpose use, not considered machinery for taxation = 268
• Residential machinery, what it includes = 268
• Machineries which are not considered real property = 268
• When sewing machines are exempt from realty tax = 268
• SEC. 200. Administration of the Real Property Tax = 269
• Historical background of the supervision of the Department of Finance over local treasury and assessment services = 269
• Opinion of Secretary of Finance that real property is not subject to tax is not binding on Central Board of Assessment Appeals = 270
• CHAPTER Ⅱ APPRAISAL AND ASSESSMENT OF REAL PROPERTY
• SEC. 201. Appraisal of Real Property = 271
• Authority of the DOF to promulgate rules on real property assessment = 271
• What is "fair market value" = 271
• Principle of valuation = 272
• Determining the fair market value of lands acquired by government = 272
• SEC. 202. Declaration of Real Property by the Owner or Administrator = 272
• DOF to prescribe from of Sworn Declaration of Property Values = 273
• Guidelines in declaring real property by owner or administrator = 273
• Tax declaration and receipts as evidence of ownership = 274
• Buyer of real property must make new declaration = 274
• Duty of administrator of government property = 274
• Tax declaration is not conclusive of nature of property for zoning = 274
• Appraisal and assessment are based on actual use irrespective of previous assessment or taxpayer's valuation = 275
• Forms to be used in declaring real property = 275
• SEC. 203. Duty of Person Acquiring Real Property or Making Improvement Thereon = 275
• 60-day period for filing sworn statement on newly acquired property = 275
• SEC. 204. Declaration of Real Property by the Assessor = 276
• When local assessors are required to declare real property = 276
• Tax declaration not signed is not valid = 277
• Declaration of real property for assessment purposes = 277
• SEC. 205. Listing of Real Property in the Assessment Rolls = 277
• What is an assessment roll = 278
• Listing of undivided real property = 278
• Liability of co-owners of undivided property to pay realty taxes = 279
• Private properties of government are taxable in the name of grantee or lessee = 279
• Guidelines in preparing assessment roll = 279
• SEC. 206. Proof of Exemption of Real Property from Taxation = 279
• Taxpayer has burden of establishing exemption = 280
• Tax exemption of religious institution = 280
• SEC. 207. Real Property Identification System = 280
• Rules establishing procedures for real property identification system = 281
• Overview of the Real Property Tax System = 281
• SEC. 208. Notification of Transfer of Real Property Ownership = 282
• Duties of persons transferring ownership over real property = 282
• Transfer of tax declaration of land covered by land reform = 283
• Transfer of tax declaration of titled lands = 283
• SEC. 209. Duty of Registrar of Deeds to Appraise Assessor of Real Property Listed in Registry = 283
• When Registrar of Deeds required to submit abstract of Registry of Property = 284
• Documents required before Registrar of Deeds may register document of transfer or encumbrance of real property = 284
• Effect of lack of tax clearance on registration of deeds = 284
• Duty of registrar of deeds and notaries public to furnish assessor with contacts conveying real property = 284
• Duty of government officials and private professionals to assist local assessor = 285
• SEC. 210. Duty of Officials Issuing Building Permit or Certificates of Registration of Machinery to Transmit Copy to Assessor = 285
• Submission of monthly summaries of building permits and certificates of Registration of machinery = 286
• Action required of local assessor to implement Sec. 210 = 286
• When tax on new building commences = 287
• SEC. 211. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor = 287
• Duty of geodetic engineers extends to all persons conducting land surveys = 287
• Local assessors to keep list of geodetic engineers or surveyors = 288
• SEC. 212. Preparation of Schedule of Fair Market Values = 288
• DOF to promulgate rules on preparation of schedule of market values = 289
• Purpose and reason for Schedule of Values = 289
• Schedule of fair market values is condition precedent to general revision of property assessment = 289
• Who prepares Schedule of Values within Metro Manila = 290
• PROCEDURE IN PREPARING SCHEDULE OF VALUES = 291
• When schedule of Market Values required to be submitted to Sanggunian = 291
• Duty to prepare Schedule of Fair Market Values = 292
• Approaches in estimating values of real property = 292
• Analysis of Sales Transaction Method = 293
• Income Capitalization Approach = 294
• Reproduction Cost (New) Approach = 294
• Quantitative Analysis Method = 295
• MARKET VALUES FOR LANDS = 295
• Model Schedule of Base Unit Market Values for Residential, Commercial, and Industrial Lands = 295
• Sub-classification of residential, commercial and industrial lands = 296
• Highly or fully developed residential subdivision = 297
• Value factors as size, shape, topography, etc. modifies unit base values = 297
• Depth influence and standard lot depth = 297
• Procedure for translating lot values into value per square meters = 298
• Use of Working Map for schedule of unit base market values for urban lands = 298
• Establishing unit base market values for each sub-class of lands = 299
• Grouping unit sales values by class = 299
• How to compute the unit base market values of sub-class of land = 299
• Computing unit base market values by income capitalization approach = 299
• Corner influence = 300
• How to set up Unit Value Map = 301
• Classification of agricultural land = 301
• CLASSIFICATION OF BUILDINGS = 301
• Types of buildings = 302
• Addition and deduction factors = 303
• EXTRA ITEMS AS COMPONENT PARTS OF BUILDINGS = 303
• Preparation of table of depreciation = 305
• SEC. 213. Authority of Assessor, to Take Evidence = 305
• SEC. 214. Amendment of Schedule of Fair Market Values = 306
• Reasons for amending schedule of fair market values = 306
• SEC. 215. Classes of Real Property for Assessment Purposes = 306
• Classes of real property defined = 307
• Building previously declared as residential may be reclassified as commercial = 307
• Commercial establishments within vicinity improves classification of lands = 307
• Declaration of an area as commercial zone, an exercise of police power = 308
• SEC. 216. Special Classes of Real Property = 308
• Rules in the assessment of special classes of lands = 308
• Rules in the assessment of lands for religious, charitable or educational purpose = 309
• Rules in the assessment of lands owned by the Government or its subdivisions = 309
• Privileges of so-called special classes of real property = 310
• SEC. 217. Actual Use of Real Property as Basis for Assessment = 310
• "Actual use" as basis for taxing real property attaches even if user is not the owner = 310
• Rules in the assessment of lands = 311
• Rules in the assessment of special classes of lands = 312
• Rules for the assessment of buildings and other improvements = 313
• SEC. 218. Assessment Levels = 313
• Definitions of "assessment level" and "current or effective assessment level" = 315
• Basis for computing real property tax = 316
• When assessment levels prescribed in the Code may be initially applied = 316
• Assessment levels may be increased or decreased by the sanggunian = 317
• Condominium units, how assessed = 317
• Prevailing market values to continue pending enactment of new schedules = 318
• When may local sanggunians increase or decrease assessment levels = 318
• Application of assessments level in computing real property tax = 318
• Rules for assessments of lands = 318
• Vacant lands : how classified and assessed = 318
• Lands located in areas of mixed land uses = 319
• Agricultural lands convertible into urban subdivisions = 319
• Assessment levels of mineral lands = 319
• Lands used for recreation, how classified = 320
• Special classes of lands in areas of mixed uses, how classified = 320
• SEC. 219. General Revision of Assessments and Property Classification = 320
• RULES IN CONDUCTING GENERAL REVISION OF REAL PROPERTY ASSESSMENTS (DOF LAR No.1-92) = 320
• Partial revision of assessment and property classification = 320
• Purpose of general revision of real property values = 321
• When general revision of reel property assessment considered completed = 321
• Who bears the cost of general assessment revision = 321
• When may local assessors classify, appraise and assess real property = 321
• How are undeclared real property listed, classified, and valued = 322
• How many years in back taxes shall newly discovered real property be liable = 322
• When owners of real property may request for reassessment or revision of assessment = 322
• Effectivity of assessments upon the request of owners of real property = 322
• When general revision of assessment／property classification shall commence = 323
• SEC. 220. Valuation of Real Property = 323
• Liability for back taxes of undeclared real property found during general Assessment = 324
• When owners may request for revision of property assessment = 324
• Effectivity of canceled, reduced, or increased assessment = 324
• SEC. 221. Data of Effectivity of Assessment or Reassessment = 324
• Cancellation or reduction of assessments due to total partial destruction = 325
• Cancellation or reduction of assessments of properties affected by calamities = 325
• Cancellation of tax declaration of mothballed plant = 326
• How assessment of destroyed properties are cancelled = 326
• When does the tax on a new building commences = 326
• SEC. 222. Assessment of Property Subject to Back Taxes = 326
• Basis for computing back taxes not exceeding ten years = 327
• Classification and valuation of undeclared real property subject to back taxes = 327
• Back taxes, when subject to penalties／interests = 328
• Form of Notice of Assessment ; exemption from postal charges = 328
• SEC. 223. Notification of New or Revised Assessment = 328
• Purpose of service of notice of assessment = 329
• To whom and where notice of assessment shall be delivered = 329
• When notice of assessment should be delivered = 329
• SEC. 224. Appraisal and Assessment of Machinery = 330
• Assessing newly acquired machinery = 331
• Basis of establishing "assessed value" and "remaining value" of machinery = 331
• SEC. 225. Depreciation Allowance for Machinery = 331
• Use of depreciation rate tables = 332
• CHAPTER Ⅲ ASSESSMENT APPEALS
• SEC. 226. Local Board of Assessment Appeal = 333
• Assessment appeal in Sec. 226 different from protest of assessment in Sec. 195 = 333
• Boards of Assessment Appeals in Metro Manila Area = 333
• Appeals to Board of Assessment Appeals required only in questions of fact = 334
• A party may be estopped from raising issue of jurisdiction on appeal = 334
• Where to file Assessment appeal, and form thereof = 334
• SEC. 227. Organization, Powers, Duties and Functions of the Local Board of Assessment Appeals = 335
• Composition of the Local Board of Assessment Appeals in municipalities within Metro Manila Area = 335
• In LGUs without provincial／city／municipal engineer, or register of deeds, prosecutor, who shall serve in the Local Board of Assessment Appeals = 335
• Chairman and members of locals boards need no appointments to assume posts = 336
• SEC. 228. Meetings and Expenses of the Local Board of Assessment Appeals = 336
• SEC. 229. Action by the Local Board of Assessment Appeals = 336
• Findings of fact of Local Boards of Assessment Appeals are respected by Central Board Assessment Appeals = 337
• Decisions of Local Boards based on mere administrative communications lacks due process = 337
• Appeals board may waive lack of proper assignment or error = 338
• Local assessor may appeal decisions of local board of assessment appeals = 338
• SEC. 230. Central Board of Assessment Appeals = 339
• Present composition of Central Board of Assessment Appeals = 340
• RULES OF PROCEDURE : CENTRAL BOARD OF ASSESSMENT APPEALS = 340
• Jurisdiction of the Central Board = 340
• What may be appealed, and who may appeal to the Central Board = 341
• How appeal is taken = 341
• Transmission papers to Central Board upon appeal = 341
• Appeal does not suspend collection of realty taxes = 341
• Period within which to decide = 341
• Decisions, orders, and entry thereof = 342
• When decisions or orders become final and executory = 342
• Rules of Pleadings = 342
• Meetings of Central Board = 342
• Scope of powers of the Central Board of Assessment Appeals = 342
• Question of whether a building is residential or not is a factual determination which is for the lower courts to resolve = 343
• SEC. 231. Effect of Appeal on the Payment of Real Property Tax = 343
• CHAPTER Ⅳ IMPOSITION OF REAL PROPERTY TAX
• SEC. 232. Power to Levy Real Property Tax = 345
• May an LGU refrain from imposing the real property tax = 345
• When are improvements taxable = 346
• SEC. 233. Rates of Levy = 347
• Public hearing not required in enacting ordinance imposing basic real property tax = 347
• SEC. 234. Exemptions from Real Property Tax = 347
• Real property sold in installment basis by a tax exempt government corporations to a private person is taxable = 348
• Rule in interpreting tax exemption, incentive or tax relief privileges = 348
• Proof of exemption from realty tax = 349
• Constitutional provisions on tax exemptions = 349
• Meaning of phrase "exclusively used" = 349
• Equipment used directly and exclusively by government corporation for power generation and transmission, exempt from realty tax = 349
• Scope of exemption from realty tax of property of local water districts = 350
• What are political subdivisions = 350
• Real property owned by POEA, DOLE are tax exempt = 350
• Withdrawal of exemption of government corporations from local taxes = 350
• Exemption subsists until transferee enjoys "beneficial use" of property = 351
• Only patrimonial property of government are taxable = 351
• EPZA registered enterprises liable for real property tax = 352
• Non-profit cemeteries or burial grounds = 352
• What are "charitable institutions" = 352
• "Convents" defined : are exempt from the real property tax = 352
• CHAPTER Ⅴ SPECIAL LEVIES ON REAL PROPERTY
• SEC. 235 Additional Levy on Real Property for the Special Education Fund(SEF) = 354
• Is it mandatory for LGU to impose SEF but not the basic realty tax = 354
• Exemption from the payment of SEF tax = 354
• SEF : its purpose, source of income, and how expended = 355
• SEC. 236. Additional Ad Valorem Tax on Idle Lands = 355
• Accrual and payment of tax on idle lands = 355
• SEC. 237. Idle Lands, Coverage = 355
• SEC. 238. Idle Lands Exempt from Tax = 356
• SEC. 239. Listing of Idle Lands by the Assessor = 356
• SEC. 240. Special Levy by Local Government Units = 357
• SEC. 241. Ordinance Imposing Special Levy = 357
• SEC. 242. Publication of Proposed Ordinance imposing Special Levy = 358
• SEC. 243. Fixing the Amount of Special Levy = 358
• SEC. 244. Taxpayer's Remedies Against Special Levy = 358
• Appeals against special levies = 359
• SEC. 245. Accrual of Special Levy = 359
• CHAPTER Ⅵ COLLECTION OF REAL PROPERTY TAX
• SEC. 246. Date of Accrual of Tax = 360
• Distinction between "accrual of tax" and "time for payment" = 360
• Local government's lien = 360
• SEC. 247. Collection of Tax = 360
• Place where real property tax may be paid = 361
• Responsibility of provincial treasurer = 361
• Liability of treasurer for failure to accept payment = 361
• Deputization of barangay treasurers to collect realty taxes = 361
• Recording of payment of real property taxes = 361
• Posting of real property tax payments = 362
• SEC. 248. Assessor to Furnish Local Treasurer with Assessment Roll = 362
• What is an assessment roll : form thereof = 363
• SEC. 249. Notice of Time for Collection of Tax = 363
• Notice of entitlement to tax discounts for prompt payment = 363
• Provincial Treasurers no longer required to give notice of time to collect tax = 363
• Publication of notice to collect tax in newspapers, when not mandatory = 363
• Importance of sending individual tax bills by mail = 364
• SEC. 250. Payment of Real Property Taxes in Installments = 364
• Payment of real property taxes in installments = 365
• Installment purchaser liable for realty taxes = 365
• Delinquent taxes and penalties may be paid in installments = 365
• Failure to pay first quarter installment = 365
• How to compute real estate tax penalty for delinquency = 366
• Realty tax payments are applied first to prior years delinquencies and penalties = 366
• SEC. 251. Tax Discount for Advanced Prompt Payment = 366
• Extent of discount on prompt and advanced payments = 366
• Tax discounts on realty taxes paid before deadline = 367
• Local saaggunian must specify extent of discount allowed = 367
• "Advanced payment" distinguished from "prompt payment" = 367
• Property with outstanding delinquent tax for previous years not eligible for tax discount = 368
• SEC. 252. Payment Under Protest = 368
• Payment of tax is precondition in protests questioning the reasonableness of the assessment or amount of tax : but not when issue is authority of the assessor = 368
• Accounting treatment of taxes paid under protest = 369
• Distribution of 50% of the tax paid under protest, of doubtful validity = 369
• Grounds for protesting real property tax = 369
• Payment under protest as condition precedent in judicial recourse = 370
• Protest not necessary for refund in payment under mistake of law = 370
• SEC. 253. Repayment of Excessive Collections = 370
• Creditable and／or refundable of tax overpayment = 371
• When taxpayer is entitled to refund or credit for taxes paid = 371
• SEC. 254. Notice of Delinquency in the Payment of Real Property Tax = 372
• Notice of delinquency in the payment of real property tax = 372
• Four stages or types of notices of delinquency in payment of realty taxes = 373
• SEC. 255. Interests on Unpaid Real Property Tax = 374
• Basis for computing 2% interest for delinquency = 374
• Maximum penalty for realty tax delinquency under the Code = 374
• SEC. 256. Remedies for the Collection of Real Property Tax = 375
• There is only one administrative remedy for collecting realty taxes = 375
• Nature of the administrative and judicial remedies for collecting the tax = 376
• On the collection of delinquent taxes = 376
• Remedies available to LGUs to enforce collection of the real property tax = 376
• SEC. 257. Local Governments Lien = 377
• SEC. 258. Levy on Real Property = 377
• Requirement for issuance of Warrants of Levy will improve collections = 378
• Procedure in conducting levy proceedings on delinquent properties = 378
• SEC. 259. Penalty for Failure to Issue and Execute Warrant = 379
• SEC. 260. Advertisement and Sale = 379
• Procedure in advertising delinquent real property for sale = 380
• Issuance and service of Warrant of Levy as prerequisite to advertisement and sale of delinquent property = 381
• Notices to delinquent landowners and the public are essential in auction sale = 381
• Contents, form, and duration of advertisement = 381
• SEC. 261. Redemption of Property Sold = 382
• Rights of taxpayer within one year from sale of delinquent property = 382
• Liability of delinquent taxpayer where auction sale is declared null and void = 383
• Inadequacy of price as ground for invalidity of transaction = 383
• Period of redemption, and who can redeem = 383
• SEC. 262. Final Deed to Purchaser = 384
• Rights of purchaser of real estate in a tax sale = 384
• SEC. 263. Purchase of Property by the Local Government Units for Want of Bidder = 384
• When local treasurer may purchase property sold for tax delinquency = 385
• Local officials are prohibited from purchasing real property sold for unpaid tax = 385
• SEC. 264. Resale of Real Estate Taken for Taxes, Fees or Charges = 385
• SEC. 265. Further Distraint or Levy = 385
• SEC. 266. Collection of Real Property Through the Courts = 386
• How collection of realty tax through courts is commenced = 386
• Jurisdiction of court : how determined = 386
• Venue or place where court action to collect tax may be filed = 386
• Collection of real property tax though the courts = 387
• SEC. 267. Action Assailing validity of Tax Sale = 387
• Court deposit equivalent to amount of property sold necessary for suits assailing validity of tax sale = 387
• Notice of sale to delinquent landowners and to the public, an essential and indispensable requirement of law = 388
• SEC. 268. Payment of Delinquent Taxes on Property Subject of Controversy = 388
• Collection of delinquent realty taxes on properties sequestered by PCGG = 388
• Owner of land appropriated by city is relieved from paying tax = 389
• SEC. 269. Treasurer to Certify Delinquencies Remaining Uncollected = 389
• Practice where treasurer presumes property is delinquent unless taxpayer can prove otherwise is unfair and of doubtful legality = 390
• Yearly certificates of delinquencies now to be submitted to sanggunians = 390
• SEC. 270. Periods within which to Collect Real Property Taxes = 390
• Prescriptive period for the collection of real property taxes = 391
• CHAPTER Ⅶ DISPOSITION OF PROCEEDS
• SEC. 271. Distribution of Proceeds = 392
• Distribution of real property tax proceeds in provinces = 393
• Distribution of real property tax proceeds in cities = 393
• Distribution of real property tax proceeds in municipalities within MMA = 393
• Automatic release of real property tax share to barangays = 394
• Liability for withholding barangay share = 394
• SEC. 272. Application of Proceeds of the additional One Percent SEF Tax = 394
• Application of additional 1% SEF tax, and allocation thereof = 394
• SEC. 273. Proceeds of the Taxes on Idle Lands = 395
• Account treatment of proceeds from tax on idle lands = 395
• Do municipalities share in proceeds of tax on idle lands = 395
• SEC. 274. Proceeds of the Special Levy = 395
• Account treatment of proceeds from special levies = 396
• Special levies on lands benefited by public works projects by the National Govt = 396
• May barangay collect special levies = 396
• CHAPTER Ⅷ SPECIAL PROVISIONS
• SEC. 275. General Assessment Revision : Expenses Incident Thereto = 397
• Share of barangay in the expenses of the general assessment revision = 397
• Sharing of revision expenses between the province and the municipalities, and among the municipalities themselves = 397
• SEC. 276. Condonation or Reduction of Real Property Tax and interests = 397
• Condonation : its meaning, and implication on destroyed structures = 398
• SEC. 277. Condonation or Reduction of Tax by the President of the Philippines = 398
• SEC. 278. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial, City or Municipal Assessor = 399
• Duties of Registrars of Deeds = 399
• Duties of Notaries Public = 399
• SEC. 279. Insurance Companies to Furnish Information = 400
• SEC. 280. Fees in Court Actions = 400
• SEC. 281. Fees in Registration of Papers or Docum, ents on Sale of Delinquent Real Property to Province, City or Municipality = 400
• SEC. 282. Real Property Assessment Notices or Owner's Copies of Tax Declaration to be Exempt from Postal Charges or Fees = 400
• SEC. 283. Sale and Forfeiture before Effectivity of Code = 401
• PART THREE SHARE OF LOCAL GOVERNMENTS IN THE NATIONAL TAXES
• CHAPTER Ⅰ. Allotment of Internal Revenue
• SEC. 284. Allotment of Internal Revenue Taxes = 402
• Scope or composition of the IRA of LGUs, the ARMM, and the COA = 403
• Cost of devolved personal services = 403
• "Unmanageable public sector deficit" as a factor in the downward adjustment of internal revenue allotments for LGUs = 403
• Increase in internal revenue allotment should not render LGUs complacent = 405
• SEC. 285. Allocation to Local Government Units = 405
• SEC. 286. Automatic Release of Shares = 406
• A portion of the IRA may assigned as security for loan = 406
• Release of advice of allotment for IRA share = 407
• Benchmark of IRA of LGUs = 408
• Lien and holdback of internal revenue allotments to LGUs, prohibited = 408
• SEC. 287. Local Development Projects = 408
• POLICIES IN THE UTLIZATION OF THE TWENTY PERCENT (20%) DEVELOPMENT FUND AND RELATED MATTERS = 409
• General policies on the use of the 20% development fund = 409
• Programs, projects and activities chargeable against the 20% development fund = 410
• Preparing the Annual Investment Plans : from whom to seek assistance = 411
• SEC. 288. Rules and Regulations = 411
• CHAPTER Ⅱ SHARE OF LOCAL GOVERNMENT UNITS IN THE NATIONAL WEALTH
• Meaning of the term "national wealth" = 412
• SEC. 290. Amount of Share of Local Government Units = 412
• Collections of the national governments from the utilization and development of the national wealth subject to local government sharing = 412
• SEC. 291. Share of the Local Governments from any Government Agency or Government-Owned or Controlled Corporation = 413
• SEC. 292. Allocation of Shares = 413
• SEC. 293. Remittance of the Share of Local Government Units = 414
• Share of local governments in national wealth to be automatically released = 414
• SEC. 294. Development and Livelihood Projects = 415
• Utilization of proceeds from share of national wealth = 415
• What are local development projects = 415
• INDEX = 416