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Real property tax remedies
The Court of Tax Appeals (CTA) sitting in Division does not have jurisdiction over real
property tax cases. This sums up the pronouncement by the Court of Tax Appeals
(CTA) in National Power Corporation vs. Municipal Government of Navotas, et al, CTA
En Banc 461, dated March 1, 2010. In this case, the CTA exhaustively discussed why
the CTA in division does not have jurisdiction over controversies involving real property
taxes.
The CTA reminded us that its jurisdiction is limited to what is conferred to it by law. The
law gives the CTA in Division, jurisdiction to review appeals from decisions or rulings of
the Regional Trial Court (RTC) over local tax cases. However, it is clear that if the case
concerns the taxation and assessment of real properties, the CTA sitting En Banc, has
jurisdiction to review on appeal, but only decisions of the Central Board of Assessment
Appeals in the exercise of its appellate jurisdiction. The CTA emphasized that there is
nothing in the law or rules giving the CTA in Division jurisdiction over cases involving
real property taxes. Thus, decisions of the RTC over real property taxes are removed
from the appellate jurisdiction of the Court in Division.
The law confers jurisdiction to the CTA in Division over local taxes. But why does the
CTA in Division exclude real property tax although the same is admittedly considered a
local tax? The CTA explained that although considered as local taxes, real property
taxes have been treated by law as separate from local taxes since there are separate
chapters in the Local Government Code that are exclusively devoted for real property
taxes. The law however specifically confers jurisdiction to the Court of Tax Appeals
sitting En Banc as regards controversies involving real property taxes.
What procedure and remedy should be observed by a taxpayer in questioning the
validity of a real property tax assessment?
1. The Assessor of the city or municipality submits an assessment to the city or
municipal Treasurer;
2. The city or municipal Treasurer informs the public when the tax shall be paid;
3. The city or municipal Treasurer assesses and collects the real property tax
starting January 1;
4. The taxpayer should pay the tax under protest;
5. The taxpayer should file written protest within 30 days from the date of payment
to the city or municipal Treasurer;
6. The city or municipal Treasurer is given 60 days from filing of protest to decide;
7. The city or municipal Treasurer denies the protest or fails to decide within the 60-
day period;
8. The taxpayer should appeal the denial of the protest within 60 days from receipt
thereof or from the lapse of the 60 day period to the Local Board of Assessment
Appeals (LBAA);
9. The LBAA is given 120 days to decide the case;
10. The taxpayer may appeal an adverse decision within 30 days from receipt of the
decision to the Central Board of Assessment Appeals (CBAA);
11. If the CBAAs decision is still adverse, the taxpayer has the remedy of filing an
appeal not to the CTA in Division but to the CTA sitting En Banc, then to the
Supreme Court.
Taxpayers should be aware of the procedure in appealing real property tax cases
because failure to observe the proper remedy would mean that the real property tax
assessment by a city or municipal assessor would become final and executory.
Taxpayers should be aware that appeal to the CTA is not always initiated to the CTA in
Division. There are instances, like real property tax cases, wherein an appeal should be
filed directly to the CTA sitting En Banc.
The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law).
If you have any comments or questions concerning the article, you can e-mail the author
at irwin.c.nideajr@bdblaw.com.ph or call 403-2001 local 330.