Land Tax Declaration Procedures in the Philippines

(A practitioner’s guide to tax declarations for land and improvements under the Local Government Code)

1) Overview: What a Tax Declaration Is—and Isn’t

A Tax Declaration (TD) is the official assessment record prepared by the Local Assessor (provincial, city, or municipal) that describes a parcel of real property and states its assessed value for local taxation. It is the basis for computing Real Property Tax (RPT) and related charges.

A TD is not a title and does not prove ownership. Courts routinely treat it only as prima facie (on its face) evidence of possession or a claim, useful but never conclusive against a TCT/OCT on file with the Registry of Deeds (ROD). Think of it as a taxation record tied to a specific parcel and its improvements.

2) Legal Framework & Administrative Actors

Local Government Code of 1991 (LGC) and its IRR (Title II on Real Property Taxation) govern appraisal, assessment, listing, and notification.
Local Assessor: appraises and assesses property, maintains assessment rolls, issues/updates TDs.
Local Treasurer: bills and collects RPT based on the TD.
Registry of Deeds (ROD): issues land titles; furnishes assessors with copies of registered instruments.
Building Official, Notaries, and other agencies: transmit permits, occupancy certificates, and conveyance instruments to the assessor.
Boards of Assessment Appeals (Local/Central): hear disputes on assessments.

3) Who Must File and When

The LGC places the primary duty on:

Owners, administrators, or possessors of real property to file a sworn declaration of newly acquired land or newly completed improvements, and of any change in actual use.
Timeline: within 60 days from acquisition, completion/occupancy of improvements, or change in actual use.

If you fail to declare, the assessor may declare motu proprio (on best information available), and taxes can be assessed and collected retroactively, with applicable surcharges/interest for delinquency.

4) When a New or Updated Tax Declaration Is Needed

Transfer of ownership (sale, donation, succession, exchange).
Subdivision or consolidation (splitting or merging lots).
Newly constructed improvements (buildings, structures, machinery) or renovations that materially change value.
Change in actual use (e.g., from agricultural to residential, or residential to commercial/industrial).
Correction of technical description (area, boundaries) following a verified survey.
Reassessment after damage, demolition, obsolescence, or discovery of new facts.
General revision cycles (periodic revisions mandated locally, typically every three years).

5) Step-by-Step Procedures

A. For a Transfer of Ownership (titled land)

Complete the transfer process
- Settle national taxes (CGT/CWT, DST) and LGU transfer tax.
- Register the deed with the ROD and obtain the new TCT/OCT (or updated title).
Secure tax clearance
- Get RPT tax clearance (no arrears) from the Local Treasurer.
File with the Local Assessor Submit the Request for Issuance/Transfer of Tax Declaration with:
- New TCT/OCT (owner’s duplicate) or ROD certification;
- Deed of Conveyance (notarized) and, if available, BIR CAR;
- Latest Official Receipts for RPT; Tax Clearance;
- Valid IDs of owner/authorized representative (+ SPA if applicable);
- Lot plan/vicinity map, approved subdivision/consolidation plan if relevant;
- Sworn property declaration/update form (LGU-provided).
Assessment
- The assessor validates documents, may conduct ocular inspection, identifies classification by actual use (residential, agricultural, commercial, industrial, special), applies the Schedule of Fair Market Values (SFMV) and assessment levels, assigns/updates the Property Identification Number (PIN) and ARP/TD numbers.
Issuance and Cancellation
- The assessor cancels the previous owner’s TD and issues new TD(s) in the transferee’s name (usually separate TDs for land and for each improvement).
Treasury Updating
- Records flow to the treasurer for billing in the next quarter; you can now pay RPT under your name.

B. For Subdivision or Consolidation

Submit approved survey plan (LMB/DENR/LRA, as applicable), technical descriptions, and mother title/TD(s).
Assessor cancels the mother TD and issues child TDs (subdivision) or a single TD (consolidation), with new PINs.

C. For Newly Built or Improved Structures/Machinery

Completion & occupancy
- Building Official transmits permits and Certificate of Occupancy; the owner must still file a sworn declaration within 60 days.
Assessment of improvements
- Separate TD for the building/machinery is issued; depreciation and cost factors may apply to machinery.

D. For Untitled or Possessed Properties

You may obtain a TD even without title to place the parcel on the assessment roll. Typical supporting evidence:
- Tax receipts over time; bawal arrears if seeking updates;
- Possession/tenancy documents, barangay certifications, survey plans/relocation surveys, extrajudicial settlement (for heirs);
- Relevant administrative orders (e.g., DENR patents in process).
Remember: a TD for untitled land is not ownership proof; it simply subjects the property to taxation.

6) Contents of a Tax Declaration

A standard TD shows:

Owner/administrator; PIN; ARP/TD No.; exact location (barangay, municipality/city, province);
Lot area and technical description summary;
Classification by actual use (drives tax rate and assessment level);
Market value and assessed value per land and each improvement;
SFMV reference, tax mapping sheet/block/lot data;
Notes on exemptions or special levies, if any.

7) Valuation Rules in Brief

Actual use controls: even if titled “residential,” taxation follows the use on the ground (e.g., operating as commercial).
SFMV: Each LGU adopts a schedule of fair market values; this underpins market valuation.
Assessment levels: Applied to market value to arrive at assessed value (basis for RPT).
Reassessment triggers: general revision; change in use; significant physical/economic changes; discovery of new improvements; substantial damage/demolition.

8) Exemptions and Special Cases

Certain properties may be exempt (e.g., government, charitable/institutional uses, cooperatives, and others strictly under law). Key points:

Exemption is not presumed; the claimant must prove entitlement.
Assessors still list exempt property in the roll, but annotate its exempt status.
Special levy (a local betterment charge) may be imposed on benefited properties when a public improvement raises land value, subject to ordinance and due process.

9) Payment, Deadlines, and Penalties (Context You’ll Need After TD Issuance)

RPT becomes due annually on January 1, payable in full or in quarterly installments typically by March 31, June 30, September 30, and December 31 (LGU ordinances may adjust cut-offs within LGC limits).
Discounts for advance/full payment may be granted by ordinance.
Delinquency interest: generally 2% per month on unpaid amounts, capped at 36 months.
Persistent delinquency can lead to levy and auction by the treasurer, with redemption rights for the owner within the statutory period.

10) Appeals and Remedies

Assessment Notice: The assessor must notify you of any new or revised assessment.
Administrative appeal: File with the Local Board of Assessment Appeals (LBAA) (commonly within 60 days from receipt of assessment notice).
Further appeal: to the Central Board of Assessment Appeals (CBAA), then to the Court of Tax Appeals (as allowed by law and rules).
Payment under protest: For billing/collection disputes, you generally pay first and then pursue protest/appeal within prescribed periods.

11) Practical Checklists

A. Standard Transfer (Titled Land)

☐ New TCT/OCT or ROD certification
☐ Deed (sale/donation/EJS, notarized)
☐ BIR CAR + proof of national taxes paid
☐ LGU transfer tax receipt
☐ RPT tax clearance; latest ORs
☐ Valid IDs / SPA (if representative)
☐ Lot/subdivision plan (if applicable)
☐ Sworn property declaration/update form

B. New Improvement

☐ Building permit and plans
☐ Certificate of Occupancy
☐ Sworn improvement declaration (within 60 days)
☐ Photos/inspection access if requested

C. Subdivision/Consolidation

☐ Approved survey plan and technical descriptions
☐ Mother title/TD and deed (if any)
☐ RPT tax clearance

D. Untitled Land / Possessory Claim

☐ Tax receipts history
☐ Barangay certifications/affidavits of possession
☐ Survey/relocation plan
☐ Supporting documents (e.g., EJS, partition agreement, patents-in-process)

12) Timelines You Can Expect

Filing window: within 60 days of triggering event.
Assessor action: ranges from same day to several weeks, depending on completeness, need for ocular inspection, and whether subdivision/consolidation is involved.
Treasury updating: typically reflects by the next billing cycle/quarter.

13) Frequent Pitfalls—and How to Avoid Them

Assuming TD = title: Always perfect your title at the ROD; TDs follow.
Missing the 60-day declaration: Late filings risk back assessments and interest after discovery.
Wrong “actual use” in forms**:** Classifications drive tax rates; ensure your declared use matches on-ground reality.
Ignoring improvements: Unreported buildings/machinery are commonly discovered during tax mapping; expect reassessment plus back charges.
Uncleared arrears: Transfers stall for lack of tax clearance.
Subdivision without approved plan: Assessors cannot issue child TDs from an informal sketch.
Relying on informal receipts: For untitled property, support your claim with consistent documents and surveys.
Protest vs. appeal confusion: Assessment issues go to the LBAA/CBAA; collection issues (e.g., surcharges) are handled via protest rules with the treasurer.

14) Special Topics

A. Interplay with Land Registration

The ROD registration precedes TD transfer for titled land. Assessors rely on the deed + CAR + title to cancel and re-issue TDs.
For patents or land awards, TD issuance may be provisional until the patent is registered and a title is issued.

B. Improvements on Another’s Land (Builder in Good Faith / Leaseholds)

The land and the improvement have separate TDs, potentially under different declarants (landowner vs. building owner/lessee).
Contracts should specify who shoulders the RPT on improvements.

C. Expropriation, Easements, and Right-of-Way

Properties partly affected by public works may require partial cancellation and issuance of residual TDs, supported by approved plans and instruments.

D. Special Economic Zones / Incentivized Areas

Some zones grant RPT incentives or different treatment for machinery; confirm with the local ordinance and zone authority. Even with incentives, listing on the assessment roll remains necessary.

15) Model Clauses and Forms (for guidance)

A. Sworn Declaration (indicative template)

I, _____ (name), of legal age, [citizenship], with address at _____, hereby declare that I acquired/constructed the following real property on _____ (date): Location: _____ (barangay, city/municipality, province) Description: Lot __, Block __, area __ sq.m.; TCT/OCT No. __ (if any) Actual Use: Residential / Agricultural / Commercial / Industrial / Special Improvements: _____ (building/machinery details; date of completion/occupancy) I undertake to submit supporting documents and allow inspection. I certify the truthfulness of this declaration. (Signature) / (Date) Jurat/Notarial Acknowledgment

B. Request to Cancel and Re-Issue TD (transfer)

Identify mother TD(s), attach title, deed, CAR, tax clearance, and indicate whether subdivision or consolidation occurs as part of the transfer.

16) Records Access and Certified Copies

TDs and assessment rolls are public records. You may request certified true copies from the assessor (fees apply). Provide the PIN/ARP/TD number, exact location, and your purpose (e.g., loan processing, due diligence).

17) Compliance Tips for Due Diligence and Lending

Always reconcile TCT/OCT vs. TD (names, areas, boundaries, use).
Verify SFMV edition and assessment notice history.
Obtain CCTs/condo: confirm separate TDs for units and common areas as applicable.
For agri estates: check reclassification/land use approvals to avoid mis-taxation.

18) Quick FAQ

Is a tax declaration mandatory? Yes. Owners/administrators must declare land and improvements and any change in actual use, generally within 60 days of the triggering event.

Can I get a TD without a title? Yes, for taxation purposes—but it does not prove ownership.

How long does issuance take? Varies by LGU and case complexity; completeness of documents and need for inspection are the usual drivers.

What if the assessor declared my property without my filing? That’s allowed to keep the roll complete. You can update/correct the TD by submitting proper documents; you may also appeal a disputed valuation.

What happens if I don’t declare improvements? Upon discovery, expect reassessment and back billing with interest on delinquent RPT.

Bottom Line

File your sworn declaration promptly, keep documents complete, ensure actual use is accurately reflected, and coordinate title and tax records. Treat the TD as your tax identity for the parcel—kept accurate through life events (transfers, construction, reclassification) to avoid penalties, delays, and disputes.