G.R. No. 76778 June 6, 1990 FRANCISCO I. CHAVEZ, petitioner, vs. JAIME B. ONGPIN, in i! "#$#"i%& #! Mini!

%e' o( Fin#n"e #n) FI*E+INA CR,Z, in e' "#$#"i%& #! A"%in- Muni"i$#. /'e#!u'e' o( % e Muni"i$#.i%& o( +#! Pi0#!, 'e!$on)en%!, REA+/1 O2NERS ASSOCIA/ION OF /HE PHI+IPPINES, INC., petitionerintervenor. Brotherhood of Nationalistic, Involved and Free Attorneys to Combat Injustice and Oppression (Bonifacio) for petitioner Ambrosia !adilla, "empin and #eyes $a% Offices for movant #ealty O%ners Association ME*IA+*EA, J.3 The petition seeks to declare unconstitutional Executive Order No. 73 dated November 25, !"#, $hich %e &uote in 'ull, as 'ollo$s (7" O.). 5"# *+ E,E-.T/0E O12E1 No. 73 31O0/2/N) 4O1 T5E -O66E-T/ON O4 1E76 31O3E1T8 T7,E9 :79E2 ON T5E !"; 1E76 31O3E1T8 076.E9, 79 31O0/2E2 4O1 .N2E1 9E-T/ON 2 O4 T5E 1E76 31O3E1T8 T7, -O2E, 79 7<EN2E2 %5E1E79, the collection o' real propert= taxes is still based on the !7" revision o' propert= values> %5E1E79, the latest ?eneral revision o' real propert= assessments completed in !"; has rendered the !7" revised values obsolete> %5E1E79, the collection o' real propert= taxes based on the !"; real propert= values $as de'erred to take e''ect on @anuar= , !"" instead o' @anuar= , !"5, thus deprivin? the local ?overnment units o' an additional source o' revenue> %5E1E79, there is an ur?ent need 'or local ?overnments to au?ment their 'inancial resources to meet the risin? cost o' renderin? e''ective services to the people> NO%, T5E1E4O1E, /. -O17AON -. 7B./NO, 3resident o' the 3hilippines, do hereb= order+ 9E-T/ON . 1eal propert= values as o' 2ecember 3 , !"; as determined b= the local assessors durin? the latest ?eneral revision o' assessments shall take e''ect be?innin? @anuar= , !"7

'or purposes o' real propert= tax collection. 9E-. 2. The <inister o' 4inance shall promul?ate the necessar= rules and re?ulations to implement this Executive Order. 9E-. 3. Executive Order No. C !, dated 7pril ", !"5, is hereb= repealed. 9E-. ;. 7ll la$s, orders, issuances, and rules and re?ulations or parts thereo' inconsistent $ith this Executive Order are hereb= repealed or modi'ied accordin?l=. 9E-. 5. This Executive Order shall take e''ect immediatel=. On <arch 3 , !"7, <emorandum Order No. 77 $as issued suspendin? the implementation o' Executive Order No. 73 until @une 3C, !"7. The petitioner, 4rancisco /. -haveD, 1 is a taxpa=er and an o$ner o' three parcels o' land. 5e alle?es the 'ollo$in?+ that Executive Order No. 73 accelerated the application o' the ?eneral revision o' assessments to @anuar= , !"7 thereb= mandatin? an excessive increase in real propert= taxes b= CCE to ;CCE on improvements, and up to CCE on land> that an= increase in the value o' real propert= brou?ht about b= the revision o' real propert= values and assessments $ould necessaril= lead to a proportionate increase in real propert= taxes> that sheer oppression is the result o' increasin? real propert= taxes at a period o' time $hen harsh economic conditions prevail> and that the increase in the market values o' real propert= as re'lected in the schedule o' values $as brou?ht about onl= b= in'lation and economic recession. The intervenor 1ealt= O$ners 7ssociation o' the 3hilippines, /nc. (1O73*, $hich is the national association o' o$ners-lessors, Foins -haveD in his petition to declare unconstitutional Executive Order No. 73, but additionall= alle?es the 'ollo$in?+ that 3residential 2ecree No. ;#; is unconstitutional inso'ar as it imposes an additional one percent ( E* tax on all propert= o$ners to raise 'unds 'or education, as real propert= tax is admittedl= a local tax 'or local ?overnments> that the )eneral 1evision o' 7ssessments does not meet the re&uirements o' due process as re?ards publication, notice o' hearin?, opportunit= to be heard and inso'ar as it authoriDes Greplacement costG o' buildin?s (improvements* $hich is not provided in 3residential 2ecree No. ;#;, but onl= in an administrative re?ulation o' the 2epartment o' 4inance> and that the @oint 6ocal 7ssessmentHTreasur= 1e?ulations No. 2-"# 4 is even more oppressive and

unconstitutional as it imposes successive increase o' 5CE over the !"# tax. The O''ice o' the 9olicitor )eneral ar?ues a?ainst the petition. The petition is not impressed $ith merit. 3etitioner -haveD and intervenor 1O73 &uestion the constitutionalit= o' Executive Order No. 73 inso'ar as the revision o' the assessments and the e''ectivit= thereo' are concerned. /t should be emphasiDed that Executive Order No. 73 merel= directs, in 9ection thereo', that+ 9E-T/ON . 1eal propert= values as o' 2ecember 3 , !"; as determined b= the local assessors durin? the latest ?eneral revision o' assessments shall take e''ect be?innin? @anuar= , !"7 'or purposes o' real propert= tax collection. (emphasis supplied* The ?eneral revision o' assessments completed in !"; is based on 9ection 2 o' 3residential 2ecree No. ;#; $hich provides, as 'ollo$s+ 9E-. 2 . &eneral #evision of Assessments. I :e?innin? $ith the assessor shall make a calendar =ear !7", the provincial or cit= ?eneral revision o' real propert= assessments in the province or cit= to take e''ect @anuar= , !7!, and once ever= 'ive =ears therea'ter+ 3rovided> ho$ever, That i' propert= values in a province or cit=, or in an= municipalit=, have ?reatl= chan?ed since the last ?eneral revision, the provincial or cit= assesor ma=, $ith the approval o' the 9ecretar= o' 4inance or upon bis direction, undertake a ?eneral revision o' assessments in the province or cit=, or in an= municipalit= be'ore the 'i'th =ear 'rom the e''ectivit= o' the last ?eneral revision. Thus, %e a?ree $ith the O''ice o' the 9olicitor )eneral that the attack on Executive Order No. 73 has no le?al basis as the ?eneral revision o' assessments is a continuin? process mandated b= 9ection 2 o' 3residential 2ecree No. ;#;. /' at all, it is 3residential 2ecree No. ;#; $hich should be challen?ed as constitutionall= in'irm. 5o$ever, -haveD 'ailed to raise an= obFection a?ainst said decree. /t $as 1O73 $hich &uestioned the constitutionalit= thereo'. 4urthermore, 3residential 2ecree No. ;#; 'urnishes the procedure b= $hich a tax assessment ma= be &uestioned+ 9E-. 3C. $ocal Board of Assessment Appeals. I 7n= o$ner $ho is not satis'ied $ith the action o' the provincial or cit= assessor in the assessment o' his propert= ma=, $ithin sixt= da=s 'rom the

date o' receipt b= him o' the $ritten notice o' assessment as provided in this -ode, appeal to the :oard o' 7ssessment 7ppeals o' the province or cit=, b= 'ilin? $ith it a petition under oath usin? the 'orm prescribed 'or the purpose, to?ether $ith copies o' the tax declarations and such a''idavit or documents submitted in support o' the appeal. xxx xxx xxx 9E-. 3;. Action by the $ocal Board of assessment Appeals. I The 6ocal :oard o' 7ssessment 7ppeals shall decide the appeal $ithin one hundred and t$ent= da=s 'rom the date o' receipt o' such appeal. The decision rendered must be based on substantial evidence presented at the hearin? or at least contained in the record and disclosed to the parties or such relevant evidence as a reasonable mind mi?ht accept as ade&uate to support the conclusion. /n the exercise o' its appellate Furisdiction, the :oard shall have the po$er to summon $itnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena and subpoenaduces tecum The proceedin?s o' the :oard shall be conducted solel= 'or the purpose o' ascertainin? the truth $ithoutnecessaril= adherin? to technical rules applicable in Fudicial proceedin?s. The 9ecretar= o' the :oard shall 'urnish the propert= o$ner and the 3rovincial or -it= 7ssessor $ith a cop= each o' the decision o' the :oard. /n case the provincial or cit= assessor concurs in the revision or the assessment, it shall be his dut= to noti'= the propert= o$ner o' such 'act usin? the 'orm prescribed 'or the purpose. The o$ner or administrator o' the propert= or the assessor $ho is not satis'ied $ith the decision o' the :oard o' 7ssessment 7ppeals, ma=, $ithin thirt= da=s a'ter receipt o' the decision o' the local :oard, appeal to the -entral :oard o' 7ssessment 7ppeals b= 'ilin? his appeal under oath $ith the 9ecretar= o' the proper provincial or cit= :oard o' 7ssessment 7ppeals usin? the prescribed 'orm statin? therein the ?rounds and the

reasons 'or the appeal, and attachin? thereto an= evidence pertinent to the case. 7 cop= o' the appeal should be also 'urnished the -entral :oard o' 7ssessment 7ppeals, throu?h its -hairman, b= the appellant. %ithin ten ( C* da=s 'rom receipt o' the appeal, the 9ecretar= o' the :oard o' 7ssessment 7ppeals concerned shall 'or$ard the same and all papers related thereto, to the -entral :oard o' 7ssessment 7ppeals throu?h the -hairman thereo'. xxx xxx xxx 9E-. 3#. 'cope of !o%ers and Functions ( The -entral :oard o' 7ssessment 7ppeals shall have Furisdiction over appealed assessment cases decided b= the 6ocal :oard o' 7ssessment 7ppeals. The said :oard shall decide cases brou?ht on appeal $ithin t$elve ( 2* months 'rom the date o' receipt, $hich decision shall become 'inal and executor= a'ter the lapse o' 'i'teen ( 5* da=s 'rom the date o' receipt o' a cop= o' the decision b= the appellant. /n the exercise o' its appellate Furisdiction, the -entral :oard o' 7ssessment 7ppeals, or upon express authorit=, the 5earin? -ommissioner, shall have the po$er to summon $itnesses, administer oaths, take depositions, and issue subpoenas and subpoenas duces tecum The -entral :oard o' assessment 7ppeals shall adopt and promul?ate rules o' procedure relative to the conduct o' its business. 9impl= stated, $ithin sixt= da=s 'rom the date o' receipt o' the, $ritten notice o' assessment, an= o$ner $ho doubts the assessment o' his propert=, ma= appeal to the 6ocal :oard o' 7ssessment 7ppeals. /n case the, o$ner or administrator o' the propert= or the assessor is not satis'ied $ith the decision o' the 6ocal :oard o' 7ssessment 7ppeals, he ma=, $ithin thirt= da=s 'rom the receipt o' the decision, appeal to the -entral :oard o' 7ssessment 7ppeals. The decision o' the -entral :oard o' 7ssessment 7ppeals shall become 'inal and executor= a'ter the lapse o' 'i'teen da=s 'rom the date o' receipt o' the decision. -haveD ar?ues 'urther that the unreasonable increase in real propert= taxes brou?ht about b= Executive Order

No. 73 amounts to a con'iscation o' propert= repu?nant to the constitutional ?uarantee o' due process, invokin? the cases o' )rmita*"alate +otel, et al v "ayor of "anila ().1. No. 6-2;#!3, @ul= 3 , !#7, 2C 9-17 ";!* and'ison v Ancheta, et al ().1. No. 5!;3 , @ul= 25, !";, 3C 9-17 #5;*. The reliance on these t$o cases is certainl= misplaced because the due process re&uirement called 'or therein applies to the Gpo$er to tax.G Executive Order No. 73 does not impose ne$ taxes nor increase taxes. /ndeed, the ?overnment reco?niDed the 'inancial burden to the taxpa=ers that $ill result 'rom an increase in real propert= taxes. 5ence, Executive Order No. C ! $as issued on 7pril ", !"5, de'errin? the implementation o' the increase in real propert= taxes resultin? 'rom the revised real propert= assessments, 'rom @anuar= , !"5 to @anuar= , !"". 9ection 5 thereo' is &uoted herein as 'ollo$s+ 9E-. 5. The increase in real propert= taxes resultin? 'rom the revised real propert= assessments as provided 'or under 9ection 2 o' 3residential 2ecree No. ;#;, as amended b= 3residential 2ecree No. #2 , shall be collected be?innin? @anuar= , !"" instead o' @anuar= , !"5 in order to enable the <inistr= o' 4inance and the <inistr= o' 6ocal )overnment to establish the ne$ s=stems o' tax collection and assessment provided herein and in order to alleviate the condition of the people, includin, real property o%ners, as a result of temporary economic difficulties (emphasis supplied* The issuance o' Executive Order No. 73 $hich chan?ed the date o' implementation o' the increase in real propert= taxes 'rom @anuar= , !"" to @anuar= , !"7 and there'ore repealed Executive Order No. C !, also 'inds ample Fusti'ication in its G$hereasJ clauses, as 'ollo$s+ %5E1E79, the collection o' real propert= taxes based on the !"; real propert= values $as de'erred to take e''ect on @anuar= , !"" instead o' @anuar= , !"5, thus deprivin, the local ,overnment units of an additional source of revenue%5E1E79, there is an ur,ent need for local ,overnments to au,ment their financial resources to meet the risin, cost of renderin, effective services to the people- (emphasis supplied* xxx xxx xxx

The other alle?ation o' 1O73 that 3residential 2ecree No. ;#; is unconstitutional, is not proper to be resolved in the present petition. 7s stated at the outset, the issue here is limited to the constitutionalit= o' Executive Order No. 73. /ntervention is not an independent proceedin?, but an ancillar= and supplemental one $hich, in the nature o' thin?s, unless other$ise provided 'or b= le?islation (or 1ules o' -ourt*, must be in subordination to the main proceedin?, and it ma= be laid do$n as a ?eneral rule that an intervention is limited to the 'ield o' liti?ation open to the ori?inal parties (5! 7m. @ur. !5C. )arcia, etc., et al. v. 2avid, et al., #7 3hil. 27!*. %e a?ree $ith the observation o' the O''ice o' the 9olicitor )eneral that $ithout Executive Order No. 73, the basis 'or collection o' real propert= taxes $in still be the !7" revision o' propert= values. -ertainl=, to continue collectin? real propert= taxes based on valuations arrived at several =ears a?o, in disre?ard o' the increases in the value o' real properties that have occurred since then, is not in consonance $ith a sound tax s=stem. 4iscal ade&uac=, $hich is one o' the characteristics o' a sound tax s=stem, re&uires that sources o' revenues must be ade&uate to meet ?overnment expenditures and their variations. 7--O12/N)68, the petition and the petition-inintervention are hereb= 2/9</99E2. 9O O12E1E2.