TAXPAYERS REMEDIES FROM ASSESSMENT OF LOCAL TAXES OTHER THAN REAL

PROPERTY TAXES
START

Local Treasurer*
(LT) assess local
taxes within 5
years from date
they become due
or 10 years from

Taxpayer files
written protest is
protest made
within 60 days
from receipt of

Local
Treasurer
issues

What is the outcome

GRANTED

of said protest

Is protest made within the

Assessment
YES prescribed
period?
becomes final

NO

INACTION; NOT
GRANTED

Local Treasurer
issues notice
cancelling
partially/wholly
the assessment

Taxpayer appeals to court of

competent jurisdiction
(depending on the value of
the assessment) within 30
days from receipt of notice or
from lapse of 60 days

END

MTC

RTC

RTC

Appealable to
CTA en banc if
the RTC
exercised its
appellate
The taxpayer adversely
affected by the decision
may file a petition for
review on certiorari
before the Supreme Court
within 15 days from
END

Appealable to
CTA division if
the RTC exercised
in its original
jurisdiction
In case of an
adverse
resolution, the
taxpayer may
file a petition for
review before
the CTA en banc
within 15 days

In case of an adverse
decision, the taxpayer
may file a motion for
reconsideration or new
trail before the same
Division within 15 days

PROCEDURES FOR DISTRAINT AND LEVY FOR PURPOSES OF SATISFYING LOCAL

TAXES

START

JUDICIAL ACTION

MTC

RTC

CTA EN
BANC

RTC

CTA
DIVISI
ON
SUPREME
COURT

END

ADMINISTRATIVE
ACTION

DISTRAINT
ON
PERSONAL
PROPERTY

LEVY OF
REAL
PROPERTY

A. DISTRAINT ON PERSONAL PROPERTY

Local Treasurer (LT) or his
deputy, upon written notice,
seizes sufficient personal
property to satisfy the tax,
and other charges (Sec. 175)

If the owner
the distraint
personal
property paid
all charges

LT issues a certificate which

serves as warrant for the
distraint of personal
property. (Sec. 175)

Officer posts notice in office of the

chief executive of the LGU** where
the property is distrained and in at
least 2 other public places specifying
the time and place of sale, and
distrained goods. The time of sale
shall not be less than 20 days after

The distrained personal

property shall be restored to
the owner

Officer executing the

distraint accounts for
the goods distrained.
(Sec. 175)

Said distrained
personal property will
now be sold at a public
auction

If there is failure to
pay said tax due

Property distrained disposed

YES

Within 120 days from distraint?

Officer sells the goods at

public auction to the
highest bidder for cash.
Within 5 days, the local
treasurer shall report sale
to the local chief

NO

It shall be considered as
sold to the LGU for the
amount of the
assessment made by
the Committee on
Appraisal and to the
extent of the same

The proceeds thereof

shall now be applied to
the tax dues/charge of
said taxpayer

Levy shall be effected by writing upon

If the proceeds of the sale are
said certificate the description of the
Real property may be
insufficient, other property may be
property upon which levy is made. At
levied on before,
distrained until the full amount due,
simultaneously, or after thethe same time, written notice of the
including all expenses, is collected
levy shall be mailed to or served upon
distraint of personal
property (Sec. 176) until the assessor and the Register of Deeds
said tax, fee, or charge has of the province or city where the
END
property is located who shall annotate
the levy on the tax declaration and
the provincial, city or B.
municipal
LEVY ON REAL
PROPERTY
certificate of title of the property,
treasurer, as the case may be,
respectively, and the delinquent
shall within thirty (30) days after
taxpayer or, if he be absent from the
execution of the distraint, proceed
Philippines, to his agent or the
with the levy on the taxpayer's

The exceeds
thereof shall be
returned to the
owner of the
property sold

A report on any levy shall,

within ten (10) days after
receipt of the warrant, be
submitted by the levying officer
Within thirty (30) days after the levy, the local
treasurer shall proceed to publicly advertise for
sale or auction the property or a usable portion
thereof as may be necessary to satisfy the
claim and cost of sale; and such advertisement
shall cover a period of at least thirty (30) days.
It shall be effected by posting a notice at the
main entrance of the municipal building or city
hall, and in a public and conspicuous place in
the barangay where the real property is
located, and by publication once a week for
three (3) weeks in a newspaper of general
circulation in the province, city or municipality
where the property is located. The
advertisement shall contain the amount of

The local treasurer shall make

and deliver to the purchaser a
certificate of sale, showing the
proceeding of the sale,
describing the property sold,
stating the name of the
purchaser and setting out the
exact amount of all taxes,
fees, charges, and related
surcharges, interests, or

B-1

The provincial, city or

municipal treasurer or
his deputy, upon
surrender by the
purchaser of the
certificate of sale
previously issued to
him, shall forthwith
return to the latter the
entire purchase price
paid by him plus the
interest of not more
than two percent (2%)
per month herein

If the taxpayer has

already paid said
taxes, fees, charges,
penalties, and
interest
If the taxpayer has
failed to pay said
taxes, fees, charges,
penalties, and
interest

END

NO BUYER

In case there is no bidder

for the real property
advertised for sale as
provided herein, or if the
highest bid is for an
amount insufficient to pay
Sale shall proceed
the taxes, fees, or
charges, related
surcharges, interests,
BUYER OF PROPERTY
penalties and costs, the
local treasurer conducting
the sale shall purchase
the property in behalf of
IF THERE IS REDEMPTION
the local government unit

Upon payment to the

local treasurer of the
total amount of taxes,
fees, or charges, and
related surcharges,
interests or penalties:
1. Shall invalidate the
certificate of sale
issued to the
purchaser; and

If the taxpayer pays

the full amount of
taxes, fees, charges,
and related
surcharges, interests,
and penalties and the
cost of the sale
property thereafter
shall be free from the
lien of such taxes,
fees, or charges,

NO
REDEMPTI
ON
The said property shall
now be subjected to
resale. The proceeds
shall now accrue to the
general fund of the LGU,
and the excess thereof
shall be returned to the
owner of the sold

2. owner is entitled to

END
The property thereafter shall be
free from the lien of such taxes,
B-1
fees, or
charges, related
surcharges, interests, and

NO REDEMPTION

In case the taxpayer fails to redeem the property as provided

herein, the local treasurer shall execute a deed conveying to the
purchaser so much of the property as has been sold, free from liens
of any taxes, fees, charges, related surcharges, interests, and
penalties. The deed shall succinctly recite all the proceedings upon

END

IMPORTANT REMINDER:
The owner shall not, however, be deprived of the possession of said property and shall be
entitled to the rentals and other income thereof until the expiration of the time allowed for its
redemption.

CHALLENGING THE CONSTITUTIONALITY OF A TAX ORDINANCE

DATE OF EFFECTIVITY
OF A TAX ORDINANCE
-Appeal the same to the Secretary of Justice within
30 days from the effectivity of said ordinance
Secretary of
Justice has to
decide the issue
within 60 days
-From an adverse decision or inaction by the
Secretary,
the aggrieved party has 30 days to appeal the
same

REGULAR COURTS

PREPARED BY: WILLIAM GACETA CARPENTERO