Under
Section 252 of the Local Government Code (LGC) of 1991, a taxpayer who is not
satisfied with the assessment or reasonableness of a real property tax
assessment may file a protest in writing within 30 days from payment of the tax
to the provincial or city treasurer, or municipal treasurer in the case of a
municipality within Metropolitan Manila Area. However, no protest to the real
property tax assessment shall be entertained unless the taxpayer first pays the
tax.
If
the local treasurer denies the protest or fails to act upon it within the
60-day period, the taxpayer/real property owner may then appeal or directly
file a verified petition with the Local Board of Assessment Appeal (LBAA)
within 60 days from denial of the protest or receipt of the notice of
assessment, as provided in Section 226 of RA 7160. If the taxpayer is not
satisfied with the decision of the LBAA, he may elevate the same to the Central
Board of Assessment Appeal (CBAA), which exercises exclusive jurisdiction to
hear and decide all appeals from the decisions, orders and resolutions of the
Local Boards involving contested assessments of real properties, claims for tax
refund and/or tax credits or overpayments of taxes. An appeal may be taken to
the CBAA by filing a notice of appeal within 30 days from receipt thereof.
The
requirement to first pay the real property tax “under protest” also applies in
cases where a taxpayer or real property owner claims an exemption from payment
of real property tax. According to the SC, a claim for tax exemption, whether
full or partial, does not deal with the authority of the local assessor to
assess real property tax, but merely raises a question regarding the
reasonableness or correctness of an assessment, which requires compliance with
the payment of real property tax “under protest” under Section 252 of the LGC
of 1991.
(Camp John Hay Development Corporation v. Central Board of
Assessment Appeal, GR 169234, October 2, 2013)
Tax Brief – November 2013
Punongbayan and Araullo
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