Tax Articles

Appeals in RPT Assessment Cases

By Atty. Rodel C. Unciano

Atty. Rodel C. Unciano Partner   +632 8403-2001 loc.380 This email address is being protected from spambots. You need JavaScript enabled to view it. View Profile

In protesting Real Property Tax (RPT) assessment cases, it has been settled that in order for the protest to prosper, the taxpayer shall first pay the tax under protest. There shall be annotated on the tax receipts the words "paid under protest". The protest in writing must be filed within thirty (30) days from payment of the tax to the local treasurer, who shall decide the protest within sixty (60) days from receipt. This is clear under the provisions of the Local Government Code of 1991.

In the event that the protest is denied or upon the lapse of the sixty-day period prescribed for the local treasurer to act on the protest, the taxpayer may appeal its protest to the Local Board of Assessment Appeals (LBAA) of the province or city where the property is located, within sixty (60) days from receipt of the treasurer’s decision on the protest or within sixty (60) days from the lapse of the sixty (60) day period for the local treasurer to act on the protest.

So, pursuant to the provisions of the LGC, it is clear that the taxpayer may appeal to the LBAA the treasurer’s decision on the protest or the treasurer’s inaction on the protest. There is no issue on that.

On the other hand, the LBAA, in turn, shall decide the taxpayer’s appeal within one hundred twenty (120) days from the date of receipt of such appeal. The owner of the property or the person having legal interest over the property who is not satisfied with the decision of the LBAA may then appeal to the Central Board of Assessment Appeals (CBAA), within thirty (30) days after receipt of the decision of the LBAA.

Now, the question to ask is, what if the LBAA does not act on the taxpayer’s appeal within the 120-day period? Can the taxpayer appeal the LBAA’s inaction to the CBAA?

This seems to be an unavailable remedy under the provisions of the Local Government Code. Apparently, under Section 229 of the LGC, it is the decision of the LBAA that is appealable to the CBAA. Unlike the LBAA which can take jurisdiction over inaction of the local treasurer in RPT assessment cases, CBAA cannot take jurisdiction over inaction of the LBAA, following the provisions of the LGC.

Even the Rules of Procedure of the LBAA and the CBAA likewise provides that the CBAA shall have exclusive jurisdiction to hear and decide appeals from the decisions, resolutions and final orders of the LBAA. So, it is the decision, resolution or final order of the LBAA that is appealable to the CBAA. Ergo, if the LBAA does not act on the taxpayer’s appeal, there’s no way for the CBAA to take jurisdiction over the appeal. The LBAA has to issue its decision which the taxpayer should appeal to the CBAA.

This is actually a predicament of many taxpayers protesting RPT assessment cases as they cannot fully ventilate their appeals before the CBAA due to inaction of the LBAA on their appeals, and in some cases, due to the unavailability of LBAA that should hear RPT appeal cases from the administrative level. The absence of an LBAA as an organized body, or in cases where there is such an established LBBA, its inaction on appeal cases would unjustly delay the resolution of taxpayer’s RPT assessment cases, amounting to deprivation of their right to due process and speedy resolution of their protest cases.

Under the Local Government Code, the LBAA shall be composed of the Registrar of Deeds, as Chairman, the provincial or city prosecutor and the provincial, or city engineer as members, who shall serve as such in an ex-officio capacity without additional compensation. However, in many Local Government Units (LGU) all over the country, there are cases where there are no officially organized LBAA in their jurisdiction. Even in Metro Manila, I know of a highly urbanized city that has even no officially organized LBAA.

This, I think, is another area in local taxation that has to be revisited. Given the skyrocketing values of real properties all over the country, there will certainly be more RPT issues to come in the days ahead. Taxpayers should be provided with the proper forum for them to fully ventilate their concern involving RPT issues.