Challenging a Real Property Tax Assessment Issued by the Wrong LGU in the Philippines

Scope. This article explains how to contest a real property tax (RPT) assessment when it was issued by a local government unit (LGU) that doesn’t have territorial jurisdiction over the property—e.g., a city or municipality different from where the land/building/machinery actually sits. It covers the legal framework, how to diagnose “wrong LGU” situations, the correct remedies and timelines, evidence, strategy, and common pitfalls. Philippine law; general information only, not legal advice.

1) TL;DR (Quick map)

Only the LGU where the property is located may assess and collect RPT. If another LGU issues the assessment, that act is ultra vires (void for lack of jurisdiction).
You typically have two parallel tracks depending on what stage you’re at:
- Assessment track: challenge the assessment itself before the Local Board of Assessment Appeals (LBAA) within 60 days from receipt of the written Notice of Assessment; escalate to CBAA and then CTA if needed.
- Collection track: if you already have a bill/demand and collection is underway, pay under protest (for the disputed portion) within the law’s short deadlines, then pursue refund/credit and/or appeals.
When two LGUs bill the same property, do not ignore either: protect yourself with payment under protest to one LGU while actively challenging jurisdiction so you avoid penalties/levy, then seek refund from the wrong LGU once resolved.

2) Legal framework (key pillars)

1987 Constitution – LGUs have power to levy local taxes as provided by law.
Local Government Code of 1991 (LGC, R.A. 7160), Title II: Real Property Taxation – the primary RPT code:
- Situs/Jurisdiction: Provinces, cities, and municipalities within Metro Manila may levy an annual ad valorem tax on real property located within their territorial boundaries.
- Assessment & Appeals: Assessors issue assessments; challenges go to LBAA (then CBAA, then CTA).
- Collection & Protest: Payment under protest regime; refund/credit for illegal or erroneous collections.
- Enforcement: Interest on delinquency; levy and public auction of real property for unpaid RPT (with tight procedures and timelines).
R.A. 1125 as amended (CTA Law) – vests the Court of Tax Appeals with appellate jurisdiction over decisions of the Central Board of Assessment Appeals (CBAA) and certain RTC decisions in local tax cases.

(You’ll also encounter DOF–BLGF circulars and assessor/treasurer manuals; they guide practice but the LGC controls.)

3) What does “wrong LGU” actually mean?

You likely have a wrong-LGU case if any of the following are true:

Physical location mismatch. The taxing LGU’s boundaries don’t cover the titled/actually occupied area (based on approved survey, cadastral plans, and boundary laws/ordinances).
Overlapping claims/boundary disputes. Two LGUs each claim the same area; until the dispute is settled, one may be billing without legal basis.
Straddling properties. A parcel or improvement sits across a boundary. The correct approach is apportionment/splitting of tax declarations—not a single LGU taxing the whole.
Administrative mis-tagging. Your Tax Declaration (TD) or assessment roll shows the wrong barangay/LGU due to clerical/cadastral errors, LGU reorganizations, or new city/municipality creations.
Special geographies. Reclamation, river shifts (avulsion/accretion), newly carved barangays, ecozones, ports, airports, reservations—these can trigger transition errors in TDs and billing.

Bottom line: RPT follows the lex rei sitae principle: tax where the property is. If the assessing LGU can’t lawfully show that the property lies within its territory, jurisdiction is absent.

4) Consequences of a wrong-LGU assessment

Void assessment (lack of territorial jurisdiction). A void assessment produces no legal effect, but until set aside you may face collection measures and interest—hence the need for timely action.
No “curing” by consent. Paying once doesn’t validate jurisdiction. You can still pursue refund/credit from the wrong LGU after final resolution.
Double assessment risk. Two LGUs might both assess; penalties can snowball if you ignore one. Manage risk (see §9).

5) Choose your remedy: assessment vs collection

A) Assessment-track (jurisdiction, classification, valuation)

Use this when you’re disputing the assessment itself—e.g., “LGU X cannot assess me because the property is in LGU Y.”

File with the LBAA (province/city) within 60 days from receipt of the written Notice of Assessment (NOA).
- Reliefs: annul the assessment for lack of jurisdiction; order cancellation/correction of the TD; direct proper apportionment if straddling.
Escalate to the CBAA (typically 30 days from receipt of the LBAA decision).
Elevate to the CTA if still aggrieved (statutory period is short; calendar it carefully).

Payment not a prerequisite to an assessment appeal (the issue is the validity of the assessment, not the collection yet). That said, if the treasurer starts collection while you’re appealing, protect yourself (see next track).

B) Collection-track (billing, delinquency, levy)

Use this when there’s an actual bill/demand or collection already underway.

Pay under protest the disputed amount (you may pay only the uncontested portion outright).
File a written protest with the local treasurer within the statutory window (commonly 30 days from payment).
The treasurer should decide within a short period (commonly 60 days). If denied or inaction persists, pursue refund/credit and/or appeal through the proper forum.

No-injunction rule (general). Courts generally won’t enjoin RPT collection unless statutory conditions are met. Once the case is within the CTA’s jurisdiction, that court may, in proper cases, suspend collection upon bond/deposit. Plan assuming you may need to pay first, fight later.

C) Boundary-dispute track (LGU vs LGU)

Boundary disputes between LGUs are resolved through LGC procedures (amicable settlement at the sanggunian level; administrative determination per the LGC; judicial review thereafter).

Taxpayers aren’t required to litigate the LGUs’ boundary case, but your evidence of situs (survey/title) is central in your own appeals.

6) Evidence package: proving situs and correcting the roll

Core proofs

TCT/OCT (with technical description) and approved survey plan (e.g., lot data/cadastral map).
Geodetic Engineer’s certification plotting the property relative to LGU boundaries.
Tax Declaration(s) and assessments from both LGUs (if double).
Building permits, occupancy permits, and business permits showing barangay/LGU routing.
Utility service records or locator agreements (for plants/complexes) identifying the physical site.
Photos/GIS overlays that tie coordinates to official boundary lines.
Relevant laws/ordinances creating or altering LGU boundaries.

For straddling properties

Request splitting/apportionment of TDs and valuation by area and improvements on each side of the boundary; ask assessors to issue separate TDs.

7) Step-by-step playbook

Triage & calendar.
- Note date of receipt of the NOA → 60-day LBAA clock.
- Note date you paid under protest → protest and refund clocks.
- Diary appeal windows (e.g., 30 days to elevate from LBAA → CBAA → CTA).
Secure the file.
- Get certified copies of the NOA, TDs, billing statements, demand letters, and any levy notices.
- Obtain cadastral/technical documents and a GE’s site plan.
Pick the track(s).
- If you’re still inside the 60-day LBAA window, file the assessment appeal (lack of jurisdiction).
- If collection is active or imminent, pay under protest (disputed portion), then protest in writing with the treasurer.
Draft the LBAA petition.
- Allege lack of territorial jurisdiction with detailed coordinates and boundary citations.
- Attach survey/title evidence and a GE certificate.
- Pray for: nullity of assessment; cancellation/correction of TD; if applicable, apportionment; and status quo directions consistent with the LGC (while recognizing the limited power to restrain collection).
Prepare for escalation.
- If you lose at LBAA, appeal to CBAA within the statutory period; then to CTA as needed.
- Keep a refund claim alive (see next section) if you’ve paid the wrong LGU.

8) Recovering money paid to the wrong LGU

Refund or tax credit. The LGC allows repayment/credit of taxes that were illegally or erroneously collected (such as those collected by an LGU without jurisdiction).
File the claim with the local treasurer (identify the date and amount(s) paid, the legal basis—wrong situs—and attach proof).
Prescriptive window. Refund/credit claims have a short prescriptive period (commonly two (2) years measured from payment or from the date you became entitled). File early.
Forum path. If denied or unacted upon, the usual route is to elevate to court within the same prescriptive period (local tax refund cases typically start at the RTC, then go up on appeal, with the CTA exercising appellate jurisdiction).

Tip: Even where you intend to net your next-year RPT against the wrongful payment, secure a written tax credit/refund approval to avoid future disputes and audit issues.

9) If two LGUs bill you (double assessment)

Do not ignore either LGU; pick one to pay under protest (ideally, the LGU where your evidence shows the property actually lies).
Serve the other LGU with your filed LBAA appeal (lack of jurisdiction) and request administrative hold in light of the dispute.
Keep meticulous records (ORs, protest letters, registry receipts).
Once the competent body (LBAA/CBAA/CTA or boundary tribunal) rules on situs, seek cancellation of the wrong LGU’s assessment and refund/credit of any amounts paid there.

10) Special scenarios & nuances

Straddling buildings/plants: Apportion land and improvements. Heavy machinery permanently attached is taxable where situated. Arrange separate TDs per LGU slice.
Reclamation/river movement: Boundary shifts can lag in the assessment roll. Use latest approved surveys and boundary laws; press for TD correction rather than letting a “default” LGU tax the whole.
Ecozones, ports, reservations: Check the enabling statute or proclamation for any special situs or exemptions. Generally, private ownership/use within such areas remains subject to RPT by the host LGU unless a specific law says otherwise; portions leased to private entities from government owners are typically taxable.
Public auction threats: If a levy/auction is noticed while your appeal is pending, urgently assess whether to tender payment under protest to neutralize penalties, then continue the legal challenge (and eventual refund).
Condo projects: Parking/amenities can be separately declared; make sure the condo corp/association isn’t being billed by the wrong LGU due to a barangay re-tagging error.

11) Drafting tips (what decision-makers look for)

Precision on location. Provide coordinates, metes and bounds, and a clear overlay versus official LGU boundary lines.
Concise jurisdiction theory. Lead with lack of territorial jurisdiction; valuation/classification issues are secondary.
Clean prayer. Ask for annulment of assessment, cancellation/correction of TD, and, if applicable, apportionment and refund/credit.
Respect the no-injunction rule but explain why the relief you seek is administrative (assessment correction) rather than collection restraint—or, if you do seek suspension in CTA, satisfy statutory conditions (e.g., bond/deposit).

12) Deadlines & quick reference

Assessment appeal to LBAA: 60 days from receipt of the Notice of Assessment.
Appeal to CBAA: commonly 30 days from receipt of the LBAA decision.
Appeal to CTA: short deadline (commonly 30 days); calendar immediately.
Payment under protest: pay disputed amount, then file written protest promptly (commonly within 30 days from payment).
Refund/credit claims: within 2 years (file with treasurer; if denied/inaction, elevate within the same prescriptive window).

Always verify the exact statutory text that applies to your facts; RPT timelines are strictly construed.

13) Common mistakes (and how to avoid them)

Waiting for a bill before appealing. The 60-day LBAA clock runs from your NOA, not from the later billing.
Not paying anything during collection. To avoid levy/penalties, pay the uncontested portion and pay the disputed portion under protest while you litigate situs.
Insufficient situs proof. A bare assertion that “our property is in City A” won’t carry the day. Use GE-certified overlays and official boundary references.
Failing to split TDs for straddling parcels. Ask assessors to apportion by area and improvements.
Letting the refund window lapse. Even if you’re winning on assessment, file a timely refund/credit claim for any payments to the wrong LGU.

14) Practical checklist

Copy of NOA, TDs, bills, demands, levy/auction notices
TCT/OCT + approved survey (with coordinates)
GE certificate + map overlay vs LGU boundaries
Permits/utility docs tying the property to its situs
Assessment appeal drafted for LBAA (filed within 60 days)
If billed: payment under protest + written protest to treasurer
Refund/credit claim calendar (2-year prescriptive period)
Appeal calendars (LBAA→CBAA→CTA) with proof of service

15) FAQs

Q: My plant spans two LGUs. Can one LGU tax the entire facility? A: No. Seek apportionment—separate TDs and valuations for the portions within each LGU.

Q: Can I refuse to pay while the LBAA case is pending? A: For a pure assessment appeal, payment isn’t a prerequisite. But if the treasurer is already collecting, consider paying under protest to avoid penalties or levy while the appeal proceeds.

Q: I already paid the wrong LGU for years. Am I out of luck? A: Not necessarily. File a refund/credit claim within the prescriptive period (commonly 2 years from payment/entitlement). Earlier years might be time-barred.

Q: Who do I name as respondent? A: In LBAA/CBAA, typically the assessor (assessment) and coordinate with the treasurer (collection). For refund suits, the LGU and the treasurer are typically proper parties. Tailor to your forum’s rules.

Closing note

“Wrong LGU” RPT cases are won (or lost) on situs proof and timeliness. Build a tight evidence file (survey + GE overlay), calibrate the correct forum, and calendar every deadline. If you want, tell me your exact timeline (dates of NOA, billing, any payment) and I’ll map the filing windows and draft a tailored step plan.