In the Philippine legal landscape, the administration of real property tax is a vital function of local government units (LGUs). Central to this process is the Tax Declaration (TD). While not a title, a TD is the primary evidence of a property’s assessment for taxation purposes and a strong indicia of possession.
The authority of Provincial, City, or Municipal Assessors to cancel or revise these declarations is governed primarily by Republic Act No. 7160, otherwise known as the Local Government Code (LGC) of 1991, and supplemented by regulations from the Department of Finance (DOF).
1. The Statutory Basis of Authority
Under Section 200 of the LGC, local assessors are mandated to establish a systematic method of real property assessment. This includes the preparation and maintenance of tax declarations. Their authority to revise or cancel existing declarations stems from several specific functions:
- General Revisions: Assessors are required to undertake a general revision of real property assessments every three (3) years to ensure that taxes are based on current market values.
- Property Transfers: Upon the transfer of property ownership, the assessor must cancel the old TD and issue a new one in the name of the new owner.
- Physical Changes: If a property is improved (e.g., a building is constructed) or destroyed (e.g., by fire or flood), the assessor has the authority to revise the declaration to reflect the actual status of the property.
2. Grounds for Cancellation or Revision
An assessor does not have arbitrary power to change a TD. Their actions must be rooted in one of the following grounds:
- Transfer of Ownership: This is the most common ground. The assessor cancels the TD of the seller and issues one to the buyer upon presentation of the Deed of Conveyance and proof of payment of the Transfer Tax and Capital Gains Tax.
- Consolidation or Subdivision: When several lots are merged into one, or one lot is split into several, the old declarations are cancelled in favor of new ones matching the updated survey plans.
- Errors in Assessment: If there is a clerical or factual error—such as an incorrect land area or misclassification (e.g., residential vs. commercial)—the assessor may revise the TD to correct the record.
- Declaration by Another Person: Under the principle of "one property, one declaration," if a person claims ownership over a property already declared by another, the assessor must determine who has the better right based on submitted titles or documents.
3. Limitations on the Assessor’s Power
The power of the local assessor is ministerial when a Transfer Certificate of Title (TCT) is presented, but it is quasi-judicial in nature when conflicting claims arise. However, there are strict limits:
- No Power to Determine Ownership: An assessor cannot adjudicate legal ownership. If two parties present conflicting titles, the assessor generally maintains the status quo or follows the most recent judicial order. Only a court can "cancel" a title; the assessor merely aligns the TD with the title.
- Due Process Requirement: The LGC requires that owners be notified of any increase in assessment. Failure to provide written notice of a revised assessment can render the new tax declaration void.
- Compliance with Manuals: Assessors must follow the Manual on Real Property Appraisal and Assessment Operations issued by the Bureau of Local Government Finance (BLGF).
4. The Process of Revision/Cancellation
The administrative workflow typically follows these steps:
- Application/Discovery: Either the owner applies for a revision, or the assessor discovers a change during field validation.
- Verification: The assessor verifies the supporting documents (Titles, Deeds, Tax Clearances, and Approved Survey Plans).
- Field Inspection: An appraiser conducts an "occular inspection" to verify the physical characteristics of the land or building.
- Issuance of New TD: The old TD is marked "Cancelled" in the records, and a new TD is generated with a cross-reference to the previous one.
5. Remedies Against the Assessor’s Action
If a taxpayer is dissatisfied with the assessor’s decision to cancel, revise, or refuse to issue a Tax Declaration, the following remedies are available under Sections 226 to 231 of the LGC:
| Step | Body | Process |
|---|---|---|
| Administrative Appeal | Local Board of Assessment Appeals (LBAA) | Filed within sixty (60) days from receipt of the assessor's notice of assessment. |
| Higher Appeal | Central Board of Assessment Appeals (CBAA) | Filed within thirty (30) days from receipt of the LBAA decision. |
| Judicial Review | Court of Tax Appeals (CTA) | The CBAA's decision may be elevated to the CTA via a Petition for Review. |
| Final Recourse | Supreme Court | On purely legal questions or via a Petition for Review on Certiorari. |
Note: Under the principle of "exhaustion of administrative remedies," a party cannot go straight to court to challenge a tax declaration without first appealing to the LBAA.
6. Jurisprudential Principles
The Philippine Supreme Court has consistently held that:
- TDs are not conclusive evidence of ownership: They are merely proof of a claim of ownership. However, when coupled with open, adverse, and continuous possession, they become powerful evidence in land registration cases.
- The "One Declaration" Rule: Assessors are discouraged from issuing "double declarations" for the same piece of land, as this creates confusion and facilitates land grabbing. If a property is already covered by a TCT, any TD issued to a non-title holder for the same area is generally considered void.