In the Philippine real estate landscape, a Tax Declaration (TD) is often the primary evidence of possession and ownership, especially for untitled lands. While it is not a conclusive title (like a Torrens Title), it serves as a critical basis for claiming ownership and is a prerequisite for eventual titling.
However, many landholders find themselves in possession of "unrecorded" property—land that has never been declared for taxation purposes. This article outlines the legal process, requirements, and implications of declaring property for the first time under the Local Government Code of 1991 (Republic Act No. 7160).
1. The Legal Basis for Declaration
Under Philippine law, the responsibility to declare property lies with the owner. Section 202 of the Local Government Code mandates that any person acquiring real property or making improvements thereon must file a sworn statement declaring the true value of the property with the Provincial, City, or Municipal Assessor.
Why is this necessary?
- Proof of Possession: In the absence of a formal title, a TD is the "best indicia" of possession in the concept of an owner.
- Property Rights: It allows the holder to pay Real Property Tax (RPT), which strengthens a claim against adverse claimants.
- Prerequisite for Titling: You cannot apply for a Free Patent or Judicial Titling without a history of tax declarations.
2. General Requirements for Initial Declaration
When a property has no previous record in the Assessor’s Office, it is treated as a "New Declaration." To initiate this, you generally need to provide:
- Sworn Statement of the True Value of Real Property: A notarized document provided by the Assessor’s Office.
- Approved Survey Plan: A plan prepared by a licensed Geodetic Engineer and approved by the Department of Environment and Natural Resources (DENR). This defines the boundaries and exact area of the land.
- Certification from the DENR: A certification stating whether the land is "Alienable and Disposable" (A&D). You cannot declare forest lands or public parks for taxation.
- Affidavit of Ownership and Adjoining Owners: A notarized statement asserting your claim and a certification from neighbors confirming your boundaries and possession.
- Photographs of the Property: Visual evidence of the land and any existing improvements (houses, trees, crops).
3. The Step-by-Step Process
Step 1: Verification
Visit the Municipal or City Assessor’s Office to confirm that the land truly has "No Record." The Assessor will issue a Certification of No Improvement or Certification of No Land Record.
Step 2: The Survey
Hire a Geodetic Engineer to conduct a boundary survey. The resulting blueprint must be submitted to the DENR-LMB (Land Management Bureau) for approval. Without an approved survey, the Assessor will not be able to assign a Property Index Number (PIN).
Step 3: Filing the Declaration
Submit your sworn statement and supporting documents to the Assessor. The Assessor’s Office will then schedule a Field Inspection to verify the data provided and assess the current market value based on the Schedule of Market Values (SMV) applicable to the area.
Step 4: Back-Tax Assessment
If the land has been occupied for years without declaration, the Assessor will compute "Back Taxes." Under Section 222 of R.A. 7160, the property shall be assessed for the years during which it would have been liable, but for a period not exceeding ten (10) years.
Step 5: Payment and Issuance
Pay the assessed taxes and penalties at the Treasurer’s Office. Once the taxes are settled, the Assessor’s Office will issue the new Tax Declaration in your name.
4. Key Limitations and Caveats
Possession vs. Ownership
A Tax Declaration is not a title. The Supreme Court has repeatedly ruled (e.g., Palali v. Awisan) that tax declarations and receipts are not conclusive evidence of ownership. They only become strong evidence when coupled with proof of actual, physical possession for a long period.
Conflicting Claims
If another person claims the same land, the Assessor may decline the declaration until the dispute is settled in court or through the barangay mediation process.
Classification of Land
You can only declare land that is classified as Alienable and Disposable. If the land is classified as timberland or mineral land, any Tax Declaration issued over it is considered null and void ab initio.
5. Summary Table of Documents
| Document | Issuing Agency | Purpose |
|---|---|---|
| Approved Survey Plan | DENR | To define boundaries/area. |
| A & D Certification | DENR (CENRO) | To prove the land is private-claimable. |
| Sworn Statement | Property Owner | Formal declaration of value. |
| Tax Clearance | Treasurer’s Office | Proof that back taxes are paid. |
| Barangay Certificate | Local Barangay | Proof of actual occupation. |
Conclusion
Obtaining a Tax Declaration for an unrecorded property is the first step toward legalizing one's landholding in the Philippines. While the process involves significant coordination with the DENR and the Local Government Unit (LGU), it provides the legal "paper trail" necessary to protect the property from encroachers and eventually secure a Torrens Title.