Tax Declarations on Property Inside Reservation Areas
A comprehensive guide for the Philippine setting
Important note. This article is for academic discussion only and is not a substitute for individualized legal advice. Statutes, administrative issuances, and case law cited are current as of 3 July 2025 (Philippine time).
1. What counts as a “reservation area”?
Under Philippine public-land law, a reservation is a parcel of the public domain that the President or Congress has withdrawn from the “alienable and disposable” (A & D) lands and reserved for a specific public purpose (Philippine Constitution, art. XII, s. 2; C.A. 141, s. 83-88). Typical examples:
| Reservation type | Governing issuance | Common purpose |
|---|---|---|
| Military | Presidential Proclamations under C.A. 141 s. 83 | Camps, bases |
| Forest/Game Sanctuary | Revised Forestry Code (P.D. 705) & ENIPAS Act (R.A. 11038) | Watershed, biodiversity |
| School/Townsite | C.A. 141 s. 85, s. 86 | Public buildings, town expansion |
| Ancestral Domain “reserved” for ICCs/IPs | Indigenous Peoples’ Rights Act (IPRA, R.A. 8371) | Self-governance, cultural integrity |
The title to the land—unless later reclassified or awarded—remains with the State. Any private rights can never ripen into ownership while the reservation exists, save for limited exceptions (e.g., ancestral domains validated by the NCIP, or lands later released by presidential proclamation and declared A & D).
2. The Real-Property-Tax (RPT) and Tax Declarations in brief
| Concept | Key provisions in the Local Government Code (LGC, R.A. 7160) |
|---|---|
| Tax declaration (TD) | §202 & §205 – owner/administrator must “declare” the property with the provincial/city assessor for listing and assessment. |
| Assessment | §219 – assessor appraises F.M.V., §217 – assessed value × assessment level. |
| Exemptions | §234(a) – Real property owned by the Republic or LGUs unless “beneficially used” by a taxable person. |
| Improvements vs. land | §205 and §227 – Land and improvements are declared and assessed separately. |
Two take-aways:
- A TD is only an administrative record for assessment; it is not a muniment of title.
- RPT can be imposed even on land the declarant does not own, provided (a) the LGU treats it as taxable, and (b) it is actually “beneficially used.”
3. May an assessor issue a Tax Declaration for land inside a reservation?
Yes, but with strict caveats:
Land still owned by the State Normally the assessor will open a TD in the name of the Republic of the Philippines, et al. and mark it “EXEMPT.”
- If private occupants exist, the assessor often creates a *separate TD for the improvement only (house, factory, etc.). The land portion remains exempt; the building becomes taxable to the occupant as “beneficial user.” (LGC §234, last proviso.)
Land subsequently released from the reservation Once a proclamation or DENR certification declares the area “alienable and disposable,” the assessor may accept TDs naming the qualified claimant as “DECLARED OWNER,” but this still does not confer title. The claimant must perfect ownership via:
- Free Patent or Homestead (C.A. 141)
- Special Patent/Transfer from agency (e.g., BCDA, AFP)
- Judicial confirmation (original registration under P.D. 1529, subject to land-classification rule in Republic v. T.A.N.D.O.N.G., G.R. 187238, 2022)
Ancestral Domains overlapping reservations *If the NCIP issues a Certificate of Ancestral Domain Title (CADT), LGUs typically annotate the TD as “ANCRL DOMAIN (CADT No._____) – EXEMPT PER IPRA §60.”* The land and traditional improvements remain RPT-exempt unless used for commercial ventures by non-IPs.
4. Legal effects of filing (or having) a TD inside a reservation
| Question | Answer |
|---|---|
| Does a TD prove ownership? | No. Long-settled rule: a TD and tax-receipts are “at most, indicia of possession” (E. Brown v. Heirs of Reyes, G.R. 175349, 2020). Within reservations, they are even weaker evidence because the land is by law inalienable. |
| Can TD + long payment bar the State? | Still no. The State is not barred by prescription or laches (Civil Code §1108[4]; Republic v. Santos, G.R. 174748, 2018). |
| Is unpaid tax a ground for auction of reservation land? | Land, no. It is exempt. Improvements, yes—the local treasurer may levy and sell the taxable building or machinery (LGC §258); the land remains with the State. |
| Can TD be transferred, mortgaged, inherited? | The paper can be assigned, but the transferee gets only whatever possessory/beneficial right the vendor had—never naked ownership of the land. |
5. Jurisprudence hot list (reservation-land + TD issues)
| Case | Core holding |
|---|---|
| Republic v. Guerrero (G.R. L-26339, 31 Aug 1970) | No title may be issued inside a military reservation unless the land is first released. |
| Republic v. Court of Appeals & Barzaga (G.R. 122437, 18 Mar 1999) | Even Torrens titles issued inside a reservation are void; TDs are worthless against the State. |
| Collado v. CA (G.R. L-25040, 23 June 1978) | TDs presented for forest-reservation land cannot defeat the State’s action for reversion. |
| Heirs of Malate v. G.R.P. (G.R. 235062, 9 Jan 2023) | Improvements on government-reservation land may be assessed to private builders; land portion remains RPT-exempt. |
| Unduran v. Arma & NCIP (G.R. 226894, 2 Dec 2019) | A CADT validated the ICC/IP claim; LGU’s TD and RPT collection held invalid. |
6. Special statutory wrinkles
Presidential Proclamations with “conditional” exclusions. Some proclamations expressly allow occupants who meet cut-off dates to apply for titles (e.g., portions of Fort Bonifacio, Camp Evangelista). In those enclaves, TDs and RPT can serve as one documentary requirement for award.
Economic zones created from former reservations (e.g., Clark, Subic). Once transferred to PEZA or BCDA, land may remain State-owned but leased long-term. LGUs may impose RPT only on lessees’ buildings unless the charter law says otherwise.
Special RPT regimes in protected areas. The ENIPAS Act (R.A. 11038 s. 18) imposes “protected-area user fees” instead of—or in addition to—RPT for commercial ventures inside protected-area reservations.
Tax holiday for ancestral domains. IPRA §60 exempts “ALL real property taxes” on ancestral domains unless the ICC/IP transfers the land to non-members.
7. Practical tips for lawyers, assessors, and occupants
- Check the land-classification map first. A copy from NAMRIA or the DENR Land Evaluation Party (LEP) will confirm if the parcel is still reserved.
- Segregate land and improvements in the TD. Mark the land “Government-exempt”; list improvements under the occupant’s name to avoid assessment errors.
- Describe the “basis of possession.” Useful TD annotation examples: “By virtue of caretaker agreement with AFP,” or “Subject to Proclamation NNN.”
- Advise clients not to rely solely on TDs for security of tenure. Seek formal lease, Special Use Agreement in Protected Areas (SAPA), CADT, or subsequent re-classification.
- Watch for LGU audit flags. COA audit memos often disallow collection of RPT on titled State land; assessors can avert disallowances by clearly marking exempt entries.
8. Quick-reference matrix
| Scenario | Land TD allowed? | Improvements TD? | RPT collectible? | Who pays? |
|---|---|---|---|---|
| Pure government use (e.g., active military camp) | Yes, but marked EXEMPT | Usually none | No | n/a |
| Private house inside reservation (no lease) | Land: Exempt TD in name of ROP* | Yes, in occupant’s name | Yes, on improvements | Occupant |
| PEZA-leased factory on former base land | Land: Exempt TD (PEZA-owned) | Yes, in locator’s name | Yes, absent charter exemption | Locator/lessee |
| Ancestral domain (CADT) | Land TD often waived | Traditional dwellings optional TD | No (IPRA §60) | n/a |
| Area released by presidential proclamation but still untitled | Land TD in claimant’s name (tentative) | Yes | Yes, both (unless proclamation exempts) | Claimant |
*ROP = Republic of the Philippines
9. Conclusion
A tax declaration inside a reservation performs two modest—but still important—functions:
- Revenue: It enables LGUs to collect RPT on taxable beneficial uses (normally the improvements).
- Record-keeping: It documents who is actually occupying or using particular tracts of State land.
Beyond that, a TD creates no vested ownership and can never defeat the Government’s superior title to reservation lands, absent a valid re-classification or ancestral-domain recognition. Practitioners should treat TDs in reservations as evidence of possession and potential liability, not security of tenure.
Need deeper advice? Reservation regimes vary widely. Consult the DENR, NCIP, or the administrator of the specific reservation (AFP, DepEd, LGU, etc.) before putting money, effort, or risk on the line.