Real property tax, commonly known as land tax, constitutes a primary revenue source for local government units (LGUs) under Republic Act No. 7160, the Local Government Code of 1991 (LGC). Section 232 of the LGC mandates that every person owning or possessing real property within the territorial jurisdiction of an LGU shall pay the corresponding real property tax. Property owners frequently grant third parties—such as relatives, agents, accountants, banks, or property managers—authority to remit these taxes through a Special Power of Attorney (SPA), notarized authorization letter, or other written mandate. Such arrangements facilitate timely payments, especially for absentee owners, estates, or corporate properties.

Circumstances may nonetheless necessitate the formal termination of this authority. Revocation restores direct control to the owner, prevents unauthorized remittances that could complicate records or create unintended liabilities, and ensures that only the principal or a newly designated representative interacts with the LGU treasurer or assessor. Failure to revoke properly may allow the third party to continue making payments, potentially leading to disputes over receipts, tax declarations (TDs), or even claims of continued agency.

Legal Framework Governing Authorization and Revocation

The law on agency under the Civil Code of the Philippines (Republic Act No. 386) governs these authorizations. Article 1868 defines agency as a contract whereby a person (the agent) binds himself to render service or act in representation of another (the principal) with the latter’s consent. In the tax context, the principal (property owner) empowers the agent to pay real property taxes, obtain official receipts, and transact with the provincial, city, or municipal treasurer and assessor.

Payment by representatives is expressly recognized in Section 247 of the LGC, which states that taxes may be paid by the owner of the property or by any person authorized by the owner. However, such authority is not irrevocable unless it is coupled with an interest (Civil Code, Article 1927). Most land-tax authorizations are simple agencies and may therefore be revoked at will by the principal.

Revocation is regulated by Civil Code Articles 1920 to 1932:

Article 1920: The agency may be revoked by the principal at any time, provided it is not coupled with an interest.
Article 1922: Revocation must be communicated directly to the agent. Notice to third persons is required only if the agency was previously made known to them.
Article 1930: If the agency was constituted or stated in a public instrument (e.g., a notarized SPA), the revocation must likewise be executed in a public instrument and, where appropriate, recorded in the same manner.
Article 1931: Revocation takes effect only from the time the agent receives notice thereof; until then, acts of the agent are valid as to third persons who had no knowledge of the revocation.
Article 1932: The agency is also terminated by the death, civil interdiction, insanity, or insolvency of the principal or agent, among other causes.

In the specific domain of real property taxation, the LGC and implementing rules of the Bureau of Local Government Finance (BLGF) require LGU treasurers to maintain accurate records of authorized payers. An unrevoked authorization remains reflected in the assessor’s or treasurer’s files, allowing continued third-party remittances unless formal notice of revocation is filed.

Grounds for Revocation

Revocation may be exercised for any lawful reason or for no reason at all, provided it is not done in bad faith to injure the agent. Common grounds include:

Change in ownership or transfer of the property via sale, donation, or inheritance.
Termination of the underlying relationship (e.g., end of family arrangement or professional engagement).
Desire to assume personal responsibility for tax compliance.
Dispute with the agent or discovery of irregularities in prior payments.
Death or incapacity of the principal (automatic termination under Article 1932, subject to estate proceedings).
Execution of a new SPA in favor of another party.

Step-by-Step Procedure for Formal Revocation

To effect a valid and binding revocation that binds both the agent and the LGU, the principal must follow these steps:

Prepare the Revocation Document
Draft a clear, unequivocal written revocation, preferably titled “Deed of Revocation of Authority” or “Revocation of Special Power of Attorney for Real Property Tax Payments.” The document must identify:
- The principal (full name, civil status, address, and valid government-issued ID).
- The agent (full name and address).
- The date and reference number of the original authorization.
- The specific properties covered (including TD number, property location, and tax declaration details).
- An express statement that the authority is revoked effective immediately.
- A reservation of the right to pursue any remedies if unauthorized payments are made after notice.
Execute the Document in Proper Form
If the original authorization was notarized or registered, the revocation must be notarized before a notary public. Affix the principal’s signature and have it acknowledged under oath. For multiple properties across different LGUs, execute separate revocations or one comprehensive deed with attachments.
Serve Notice on the Agent
Deliver the revocation personally or by registered mail with return card and proof of receipt (e.g., registered mail receipt and affidavit of service). Personal service is preferred for immediate effect. Retain proof of service, as it establishes the date the agent received notice.
File the Revocation with the Relevant LGU Offices
Submit certified true copies of the revocation, together with proof of service on the agent, to:
- The Office of the Provincial, City, or Municipal Treasurer (where the tax is payable).
- The Office of the Provincial, City, or Municipal Assessor (custodian of tax declarations).
  Include a cover letter requesting that the treasurer update the official records and cease accepting payments from the former agent. Attach a photocopy of the principal’s title or latest tax declaration as proof of ownership. The LGU will typically issue an acknowledgment receipt or annotation on the TD file.
Publish or Notify Third Parties (if necessary)
Although not mandatory for simple agencies, publication in a newspaper of general circulation is advisable if the original authorization was widely known or if the agent has dealt with banks or other institutions on the principal’s behalf. For corporate owners, internal board resolution and SEC filing may be required.
Monitor Compliance and Request Confirmation
After filing, request a written confirmation from the treasurer that the records have been updated. Obtain a new tax clearance or official receipt in the principal’s name for the next payment cycle to verify the change.
Address Pending Payments or Disputes
If the agent has already remitted taxes post-revocation but before notice, those payments remain valid under Article 1931. The principal may demand accounting from the agent for any funds advanced.

Sample Forms

Sample Deed of Revocation

REPUBLIC OF THE PHILIPPINES)
___________________________) S.S.

DEED OF REVOCATION OF AUTHORITY

KNOW ALL MEN BY THESE PRESENTS:

I, [Full Name of Principal], of legal age, Filipino, single/married, with residence and postal address at [Address], holder of [ID Type and Number], do hereby revoke, cancel, and terminate the Special Power of Attorney/Authorization Letter dated [Date of Original Document] executed in favor of [Full Name of Agent], of legal age, with address at [Agent’s Address], authorizing the latter to pay real property taxes on the following properties:

[TD Number], [Location/Barangay/Municipality], covered by [OCT/TCT Number] (if applicable).
[Additional properties, if any].

This revocation is effective immediately upon receipt by the Agent and the concerned Local Government Unit. Any and all acts performed by the Agent after receipt of this notice shall be deemed unauthorized and without force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand this [Date] at [Place].

[Signature of Principal]
Principal

SUBSCRIBED AND SWORN to before me this [Date] at [Place], affiant exhibiting [ID details].

Notary Public

Sample Cover Letter to LGU Treasurer

[Date]

The Municipal/City Treasurer
[Name of LGU]
[Address]

Dear Sir/Madam:

I am the registered owner of the real properties covered by Tax Declaration Nos. [list numbers] located at [location]. I hereby submit a notarized Deed of Revocation of Authority previously granted to [Agent’s Name] to pay real property taxes on my behalf.

Kindly update your records accordingly and cease accepting payments from the said individual effective immediately. Enclosed are: (1) certified true copy of the Deed of Revocation; (2) proof of service on the Agent; and (3) photocopy of my title/tax declaration.

Thank you for your prompt attention.

Respectfully,
[Signature]
[Printed Name]

Effects and Consequences of Proper Revocation

Upon proper execution and notice:

The agent loses all authority to bind the principal in tax transactions.
The LGU treasurer is duty-bound to refuse future payments tendered by the former agent.
The principal regains exclusive control over tax compliance, including the ability to claim exemptions, avail of discounts, or contest assessments.
Any subsequent payments by the unauthorized party may be treated as voluntary contributions or may require refund proceedings.
The revocation protects the principal from potential fraud or mismanagement and preserves the integrity of official tax records.

If the agent refuses to acknowledge receipt or continues to act, the principal may file an action for injunction or damages before the appropriate court, citing violation of the agency contract and the Civil Code.

Special Considerations

Properties Under Multiple Tax Declarations or Across LGUs: Execute and file separate revocations for each jurisdiction.
Corporate or Estate Properties: Require board resolution or executor/administrator authority; file with the Securities and Exchange Commission or court where the estate is pending.
Digitally Executed Authorizations: If the original was electronic (e.g., via e-SPA platforms), revocation should follow the same digital format and be submitted electronically where the LGU accepts e-documents under the Electronic Commerce Act.
Tax Delinquencies or Auctions: Revocation does not extinguish existing tax liens; the principal must settle delinquencies personally or through a new representative.
Death of Principal: Automatic termination occurs, but the estate representative must notify the LGU and submit letters of administration or extrajudicial settlement.

Formal revocation of authority for land tax payments is a straightforward yet critical exercise of ownership rights under Philippine law. By meticulously following the Civil Code rules on agency and the administrative requirements of the Local Government Code, property owners secure their fiscal autonomy and maintain accurate official records with the concerned LGUs.