appealing rpt assessment

8/12/2019 Appealing RPT Assessment

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Appealing Real Property TaxAssessments

Appealing Real Property Tax Assessments by Rachelle Ann C.

BaodTaxpayers should not be surprised when they receive notices for audit or assessents fortaxes fro their local !overnents units "#$%s&. 'ust like the (ureau of Internal Revenue

"(IR&, #$%s also have the authority to conduct tax audit and issue deficiency tax

assessents for taxes that they adinister and ipose, usually for local business taxes

and the real property tax.

The real property tax "RPT& is a levy on real properties, such as land, buildin!s, achinery

and other iproveents affixed or attached to real properties not specifically exepted

under the law. It accrues on the )st of 'anuary and is payable in one or four e*ual

installents. RPT installent payents ust be ade on or before the end of each

*uarter, akin! the first installent due on or before +arch ).

%nlike national taxes which are fixed at unifor rates nationwide-i.e., percent for

incoe tax and )/ percent for value0added tax "1AT&-RPT rates vary per locality as it is

fixed by the provincial or city council. The rates, however, ust be within the ceilin!

prescribed under the law. The #ocal $overnent 2ode "#$2& has set a iniu rate of

./3 percent ".3 percent for cities& and axiu rates of ) percent for provinces and /

percent for cities and unicipalities.

A taxpayer ay receive an assessent for new properties declared with the local

assessor or for a revised assessent arisin! fro a revaluation of property values. +ost

#$%s also issue individual tax bills statin! the exact aount of the annual RPT due, the

aount of *uarterly instalents and the due date to reind taxpayers of their annual

obli!ations. An assessent ay also be issued if the #$% alle!es that the taxpayer failedto declare certain properties and pay the RPT, hence, the delin*uency tax and the

applicable penalty.

4hen you receive an RPT assessent, you would probably ask the followin! *uestions.

Is the aount of RPT assessed correct5 Is there a possibility for its reduction or

cancellation5 A I supposed to pay this5 Is there a deadline for its payent5 If I were

not satisfied with the assessent, do I have a ri!ht to protest5

2orrectness of RPT assessent. The correctness of the assessent hin!es on several

factors. Do I really own these properties5 Are these properties still existin! and bein!

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used? Were these properties valued correctly and classified accurately? Was the

assessment conducted in accordance with the law? Is the local government unit (LGU)

authorized to issue an assessment?

Knowing these pieces of information the ta!payer may ascertain the correctness of the

amount "y recomputation of the ta! due as follows#

$%& due ' fair maret value (*+) , assessment level ! ta! rate

-ssessment level is a percentage assigned to different classifications of real

properties.i/e/ residential commercial industrial or special/ &his is "ased on the

applica"le ordinance in the locality where the property is situated/ *+ is defined as the

price at which a property may "e sold "y a seller who is not compelled to sell and "ought

"y a "uyer who is not compelled to "uy/ It must "e the value of the property prevailing insaid locality and may "e "ased on the ta!payer0s sworn statement or latest ta!

declaration/ %roperties ac1uired "y purchase are generally valued at the purchase price/

&he evaluation with regard to the correctness of the assessment would determine the

ta!payer0s ne!t courses of action/ &a!payers who feel aggrieved over the assessment are

entitled to protest or appeal for the reduction or cancellation of the assessment/ &his right

is solely vested on either the owner or the "eneficial user of the su"2ect properties/

%ayment under %rotest/ 3ne peculiarity with the $%& which most ta!payers remem"er

is that a protest cannot "e initiated unless the ta! assessed is paid first/ %lease n ote that

this is applica"le only if the issue is anchored on the correctness reasona"leness or

e!cessiveness of assessment hence considered a 1uestion of fact/ In such case

ta!payers contesting the assessment are mandated "y law to pay under protest/

%ursuant to 4ection 567 of the $%& 8ode no protest shall "e entertained unless the

ta!payer pays the ta! without pre2udice to a su"se1uent ad2ustment depending upon the

final outcome of the appeal/

%ayment under protest is not necessary when an issue challenges the very authority and

power of the municipal city or provincial assessor or treasurer in ta!ing a property it

"eing a 1uestion of legality/ 9ispute may already "e raised directly to the trial court/

&he significance of payment under protest was "est illustrated in a 4upreme 8ourt (48)

decision (:-%383$ v/ %rovince of ;uezon) where the issue involved a 1uestion of facton :apocor0s claim on realty ta! e!emption/ It was :-%383$0s position that the issue of

their e!emption is merely a legal issue/ &he court however noted that there are also facts

re1uired to "e confirmed to conclude the validity of the e!emption/ paid under protest> ta!payer may file a protest to the treasurer

in writing within 6 days from payment/ &reasurer shall decide on the protest within @

days from receipt/

L=-- level/ Upon local treasurer0s denial of protest or failure to act upon it ta!payer may

still file a verified petition with the Local =oard of -ssessment -ppeals (L=--A within @

days from such denial or receipt of the Bnotice of assessmentC from the local assessor/&he law does not warrant filing of motion for reconsideration "efore the local assessor




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(Callanta v. Office of the Ombudsman). The LBAA shall decide the appeal within 120

das f!om !eceipt.

CBAA level. "f ta#pae!s still feel dissatisfied and a$$!ieved with the decision of the LBAA%

the law p!ovides anothe! !emed&the filin$ of appeal within '0 das f!om !eceipt of the

decision to the Cent!al Boa!d of Assessment Appeals (CBAA)% which shall decide the

case within 12 months f!om date of !eceipt. aid decision shall become final and

e#ecuto! afte! the lapse of 1 das f!om the date the cop of the decision is !eceived b

the ta#pae!.

CTA level. "n case of CBAA*s adve!se !ulin$ o! action% ta#pae! ma elevate the matte! to

the Cou!t of Ta# Appeals (CTA).

"t is c!itical to compl with the timelines p!ovided fo! filin$ the p!otests o! appeal.+lementa! is the !ule that the pe!fection of an appeal within the p!esc!ibed pe!iod the!efo!

is both mandato! and ,u!isdictional.

-ote% howeve! that it is euall impo!tant to decide who should file the p!otest.

"n anothe! C decision (/+L +ne!$% "nc. v. !ovince of Batan$as)% appellant !eceived

an T assessment on the powe! ba!$es that it is leasin$ to -AOCO on Au$ust %133. "n a lette! dated eptembe! % 133% lessee4-AOCO sou$ht !econside!ation of

the assessment. 5otion was denied on eptembe! 22% 133. On Au$ust 26% 1336% the

LBAA !ende!ed a !esolution denin$ the petition fo! bein$ filed out of time% thus%

conside!ed ba!!ed b p!esc!iption because the p!otest was filed b the lessee and not b

the owne! of the p!ope!t. Apellant was p!ecluded f!om uestionin$ the co!!ectness of the

assessment% o! f!om invo7in$ an defense that would !eopen the uestion of its liabilit on

the me!its.

The !i$ht to appeal is a p!ivile$e of statuto! o!i$in% meanin$ a !i$ht $!anted onl b the

law% and not a constitutional% natu!al o! inhe!ent !i$ht. "t onl follows that ta#pae!s ma

avail of such oppo!tunit upon st!ict compliance with the !ules p!esc!ibed b the law itself.

8ence% "t is best to see7 a consultant to ensu!e that co!!ect decisions a!e made on when

and whe!e to p!otest% the natu!e of the p!otest that will be lod$ed and the p!ocedu!es that

should be followed.

"f ou a!e inte!ested to lea!n mo!e about the law and !ules on !eal p!ope!t ta#ation and

local business ta#es% unon$baan 9 A!aullo is holdin$ a whole da semina! on

:nde!standin$ Local Ta#es on -ovembe! 1% 2011 at the -ew ;o!ld 8otel < 5a7ati. /o!

inui!ies% please call ==6411 o! email 5a!$e.Antonio>ph.$t.com.

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Further clarification on the coverage of 20% CWT on interest income

You would recall that under RR 142012! a 20" creditable withholding ta# $%'( was i)*osed on interest

inco)e +ro) all other debt instru)ents which do not +all within the coverage o+ ,de*osit substitutes-. /n R%

2012! th . . . Read ore

Contact E-mail

rachelle.baod*h.gt.co)

Metro Manila Head Office

15th & 20th 6loor! 'ower 1

'he 7nter*rise %enter

888 Ayala Avenue

1200 a9ati %ity

Phili**ines

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appealing rpt assessment

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