Land Tax Declaration Procedures in the Philippines

(A practical legal guide under the Local Government Code and related issuances)

I. What a “Tax Declaration” Is—and Is Not

A Tax Declaration (TD) is the official record in the local assessor’s office that lists a parcel of land (and, where applicable, its improvements), its ownership/possession, location, area, classification (e.g., residential, agricultural, commercial), actual use, assessed value, and the corresponding Property Identification Number (PIN) or TD number. It is the basis for real property tax (RPT) assessment and billing by the local treasurer.

A TD is not a title and does not, by itself, prove ownership. Courts consistently treat tax declarations merely as corroborative of a claim of ownership or possession. Treat it as a fiscal record, not a muniment of title.

II. Legal Bases and Administrative Actors

Local Government Code of 1991 (LGC, R.A. 7160), Book II, Title II (Real Property Taxation) Key provisions cover: duty to declare, assessment rolls, discovery of undeclared property, valuation standards, notice of assessment, appeals, and payment/penalties.
Implementing Rules, Provincial/City/Municipal Revenue/Assessment Codes, and Assessor/Treasurer Circulars govern forms, workflows, and local documentary checklists.
Offices involved
- Municipal/City Assessor: accepts declarations, appraises property, issues Notice of Assessment and TD.
- Provincial Assessor: oversight/supervision for component municipalities.
- Registry of Deeds (ROD): registration of deeds and titles.
- BIR: taxes on transfers (CGT/CWT, DST), CAR/eCAR issuance.
- Municipal/City/Provincial Treasurer: billing/collection of RPT and transfer tax.
- Local Board of Assessment Appeals (LBAA) → CBAA → Court of Tax Appeals (CTA): assessment appeals.

III. When You Must File a Tax Declaration

Under the LGC, any person acquiring real property, or completing a new improvement (e.g., a building) must file a sworn declaration of the property’s true value and other particulars with the local assessor within sixty (60) days from:

Acquisition (sale, donation, inheritance, consolidation, court award, etc.), or
Completion/occupancy of an improvement, or
Change in actual use (e.g., agricultural to residential).

Failure to declare does not stop taxation: the assessor may discover and list the property sua sponte, assess it, and the real property taxes may be back-billed. Late declaration often triggers back assessments and interest on unpaid RPT.

IV. Who May File

Registered owner (individual or juridical person).
Transferee under a deed (buyer/donee/heir).
Administrator, possessor, or authorized representative (with SPA/board authority).
Co-owners (any may file; LGUs may require consent/affidavits to split TDs).

V. Where to File

City Assessor for cities.
Municipal Assessor for municipalities. (For component municipalities, the Provincial Assessor exercises oversight; filing remains at the municipal assessor unless the province centralizes certain functions.)

VI. Core Documentary Requirements (Common, but verify local variations)

Requirements vary by LGU, but the typical baseline is:

For land (titled):

Certified True Copy of OCT/TCT (or CCT for condo land interest).
Latest TD (if any) and Tax Clearance (no RPT arrears).
Deed of Conveyance (e.g., Deed of Absolute Sale, Deed of Donation, Extrajudicial Settlement/Partition with Deed of Sale/Assignment, court judgment).
BIR documents: CAR/eCAR, proof of CGT (6%) or CWT, DST, and transfer fees paid.
Transfer Tax official receipt from the province/city (as applicable).
Official receipts for ROD registration (if already registered).
Valid IDs and SPA/Board Resolution if via representative.
Lot/Sketch Plan and Technical Description (as needed for new/complex parcels).

For land (untitled/possessory situations): (Subject to local policy and national land laws)

Affidavit of Ownership/Possession, Barangay certification, chain of prior TDs, DENR certifications (e.g., Alienable & Disposable status), approved survey plan. ⚠️ Assessors may accept a declaration for taxation without prejudice to land registration. This does not legitimize ownership of inalienable or public land.

For improvements (buildings):

Building Permit and Certificate of Occupancy/Completion.
As-built plan, bill of materials, or cost affidavit.
Photos and geotagging (if required).

For special cases:

Subdivision/Consolidation: Approved survey/subdivision/consolidation plan; sometimes new titles or mother title with annotated plan; ROD memos if already registered.
Change in Use/Reclassification: Barangay/Zoning/Locational Clearance; proof of changed use.
Exemptions/Special Assessments: Documentary proof (e.g., nonprofit/charitable use, religious/educational use, government ownership with beneficial use analysis).

VII. Step-by-Step Procedure

Pre-Assessment Intake
- Secure the Assessor’s intake form and checklist.
- Present identity and authority (IDs/SPA/board resolution).
Submission of Sworn Declaration
- File the sworn statement declaring the property’s true value, classification, actual use, area, and other particulars.
- Attach the required documents (see Section VI).
Docketing and Validation
- The assessor verifies documents (title/deed/CAR/transfer tax/ROD receipts; or possessory proofs).
- Cross-checks zoning, barangay boundaries, lot data, and prior TDs (for cancellation or splitting/merging).
Ocular Inspection / Tax Mapping
- Field appraisers conduct site inspection to confirm location, area, boundaries, actual use, and improvements.
- Inspection notes/photos become part of the valuation file.
Valuation and Assessment
- Property is valued per Schedule of Market Values (SMV) approved by the Sanggunian (city/province), with assessment levels applied to arrive at assessed value.
- The assessor prepares the Assessment Roll entry and Notice of Assessment.
Notice of Assessment (NOA)
- You receive the NOA reflecting the assessed value, classification, and effectivity (often January 1 of the year following assessment or as provided by law for general revisions).
- If you disagree, see Appeals (Section X).
Issuance of Tax Declaration
- The assessor issues the Tax Declaration (new TD number/PIN).
- Prior TDs (for the same property) are cancelled or partially cancelled (for subdivisions/partitions).
Turnover to Treasurer and Billing
- The TD data flows to the Treasurer for RPT assessment and billing.
- You may now pay RPT (see Section IX for cadence and interest).

VIII. Timing, Effectivity, and General Revision

60-day filing rule from acquisition/completion/change in use.
Effectivity of assessment: generally January 1 of the ensuing year or upon effectivity of a general revision.
General Revision of Assessments: mandated periodically (commonly every three (3) years) to keep SMVs current; LGUs may also conduct mid-cycle reappraisals for newly discovered or significantly altered properties.
Change in Actual Use: declare within 60 days; may trigger reassessment and new TD.

IX. Real Property Tax (RPT): Cadence, Discounts, and Interest

Accrual: RPT accrues January 1 each year.
Payment frequency: Annual (on/before March 31) or Quarterly (on/before March 31, June 30, Sept 30, Dec 31). Some LGUs offer early-payment discounts.
Interest for late payment: up to 2% per month on the unpaid amount, capped at 36 months (i.e., up to 72% total), unless the LGU has adopted a lower rate in its code or grants relief by ordinance.
Back taxes: If property is declared late or discovered by the assessor, prior-year liabilities (plus interest) may be billed from the effectivity date of the assessment/occupancy/beneficial use, subject to prescriptive periods and local policy.

X. Disputing Assessments and Other Remedies

Administrative Appeal
- File with the Local Board of Assessment Appeals (LBAA) within the statutory period (commonly 60 days from receipt of the NOA). Failure to appeal timely generally finalizes the assessment.
- Decisions of the LBAA are appealable to the Central Board of Assessment Appeals (CBAA) (commonly 30 days).
- Further appeal lies with the Court of Tax Appeals (CTA) under its expanded jurisdiction.
Grounds for Appeal
- Wrong classification or actual use.
- Erroneous area or duplicate assessment.
- Overvaluation or application of the wrong assessment level.
- Property exempt by law (see Section XI).
Payment Under Protest
- Some disputes require payment under protest to avoid penalties/auction, then pursue administrative/judicial remedies.
Clerical Corrections vs. Substantive Reassessment
- Clerical errors (misspelled names, minor data issues) may be corrected by motion at the assessor level.
- Boundary/area disputes and title conflicts typically require documentary proof (e.g., re-survey, amended title) before reassessment.

XI. Exemptions, Special Cases, and Beneficial Use

Exemptions (illustrative, check the LGC and special laws):
- Government-owned property (but taxable if a private party enjoys beneficial use through lease/permit/franchise).
- Charitable institutions, churches/mosques, cemeteries, and non-profit educational institutions, to the extent of their actual, direct, and exclusive use.
- Certain machinery and equipment used for pollution control or as provided by special laws.
- Cooperative real properties under the Cooperative Code, subject to conditions.
Special Assessments (Special Levy):
- For public works benefitting specific lands (e.g., road/ drainage). This is separate from basic RPT and may appear on your billing.
Idle Lands and Additional Levy:
- LGUs may impose additional levy on idle lands under the LGC and local ordinances.
Government Land on Lease:
- Even if titled to the Republic/LGU, lessees/beneficial users can be directly assessed and billed for RPT.

XII. Transfers and Structural Changes: Practical Paths

A. Sale/Donation

Register deed with BIR (taxes, CAR/eCAR) → 2) Pay transfer tax → 3) Register with ROD (issuance of new title) → 4) Declare with Assessor (new TD; cancel old TD).

B. Inheritance

File estate tax return and secure eCAR → 2) Register instruments with ROD (new titles/annotations) → 3) Declare with Assessor.

For undivided estates, LGUs may issue pro-indiviso TDs or co-ownership TD pending partition.

C. Subdivision/Consolidation

Submit approved subdivision/consolidation plan (and updated titles if registered). The assessor cancels the mother TD and issues separate TDs (or one consolidated TD).

D. Change in Actual Use

File within 60 days with proofs of use (zoning/locational permits). Expect reassessment and possibly different rates.

E. Improvements (Buildings/Structures)

After completion/occupancy, file the building/improvement declaration with the required permits and as-built data; assessor conducts inspection and issues a separate improvement TD or integrates with land TD (per LGU practice).

XIII. Due Diligence Tips

Match the triad: Title ↔ TD ↔ Actual Possession/Use. All three should tell the same story; misalignments invite disputes and reassessments.
Check SMV vintage: A new SMV or general revision can materially change your assessment. Budget for increases.
Keep CAR/eCAR and transfer receipts handy**:** assessors often require them before issuing a new TD.
No TD ≠ No Tax: Undeclared property can be assessed retroactively when discovered.
TD chain tells history: Keep copies of cancelled TDs—they help trace provenance for future transfers or disputes.

XIV. Penalties, Interest, and Enforcement

Interest: Up to 2% per month, capped at 36 months, on unpaid RPT.
Administrative remedies: Distraint/levy, public auction of the property for RPT delinquency, subject to redemption rights within the period fixed by law.
Criminal liability is uncommon in mere non-declaration cases but may arise from falsification, perjury (false sworn declarations), or obstruction.

XV. Checklist (Land—Standard Transfer)

Deed (sale/donation/partition/judgment) – notarized.
BIR: CGT/CWT, DST, transfer fees; CAR/eCAR issued.
Treasurer: Transfer Tax paid.
ROD: Deed registered; new TCT/OCT issued/annotated.
Assessor: Sworn declaration filed with all proofs; inspection; NOA; new TD issued; old TD cancelled.
Treasurer: RPT billed and paid per schedule.

XVI. Frequently Asked Practical Questions

1) Can I get a TD without a title? Sometimes, for taxation purposes only, based on possession and acceptable proofs (affidavits, surveys, barangay certifications, prior TDs, DENR certifications). It does not convey ownership and may be refused for public domain or inalienable lands.

2) The TD is still in the seller’s name—am I liable? RPT is a lien on the property, not just the person. Parties usually stipulate who pays which period. Update the TD quickly to avoid notices going to the wrong person.

3) Do I need to file a new TD for a renovated house? Yes, for new improvements or substantial alterations, file a declaration within 60 days of completion/occupancy.

4) My property’s use changed from agri to residential. What now? Declare the change in use; assessor will reassess using the appropriate SMV and assessment level.

5) How long does the assessor keep prior TDs? Cancelled TDs are archived; keep personal copies. They’re often needed for historical tracing or appeals.

XVII. Model Sworn Declaration (High-Level Elements)

Identity of declarant; authority (owner/transferee/administrator)
Property details: location, area, boundaries, title nos./technical description
Nature of acquisition and date; declaration is within 60 days
Classification and actual use
Declarant’s estimate of true value
Attachments list (deed, CAR/eCAR, permits, plans, IDs)
Jurat before a notary public

(Use your LGU’s prescribed form; most require a standard “Sworn Statement/Property Information Sheet.”)

XVIII. Final Pointers for Compliance

File within 60 days of acquisition/completion/use-change.
Keep your document set complete: Title/Deed → BIR CAR/eCAR → Transfer Tax → ROD proofs → Assessor filing → NOA → TD.
For any assessment dispute, observe appeal periods strictly.
Remember: Tax Declaration ≠ Title—but it’s essential for tax compliance and clean property administration.

This article synthesizes core statutory requirements and nationwide administrative practices. Always check your LGU’s current assessment code, published checklists, and prescribed forms for exact, on-the-ground requirements.