LOCAL GOVERNMENT TAXES (Atty. C, Llamado) LGUs may exercise the power to levy taxes, fees or charges on any base or subject not otherwise specifically enumerated herein or taxed under the provisions of the National Internal Revenue Code, as amended, or other applicable laws. Provided, that the taxes, fees', or charges” shall not be unjust, excessive, oppressive, confiscatory or contrary to declared national policy. Provided, further, that the ordinance levying such taxes, fees or charges shall not be enacted’ ‘conducted for the purpose (Sec. 186, LGC). Notes: me (8) The aforementioned power includes the power to levy fees that are regulatory in nature.” (©) Such power also includes the power to levy charges which are pecuniary liabilities such as rents of fees against persons or property. An example would be the imposition of “goodwill fees” upon stall holders at the municipal public market.* (©) The requirements made mandatory by law for the levy of such taxes, fees, or charges must be observed. Otherwise, such levy shall be void. In Ongsuco, et. al. v. Hon. Malones, G.R. No. 182065 (October 27, 2009), since no public hearing had been duly conducted prior to the enactment of an ordinance imposing “goodwill fees” upon stall holders at a public market, said ordinance was declared void. The following fundamental principles shall govem the exercise of the taxing and other revenue- raising powers of LGUs: (a) Taxation shall be uniform in each LGU; (b) Taxes, fees, charges, and other imnpositions shall: (1) Be equitable and based, as far as practicable, on the taxpayer's ability to pay; (2) Be levied and collected only for public purposes; (3) Not be unjust, excessive, oppressive, cr confiscatory; @) Not be contrary to law, public policy, national economic policy, or in the restraint of "Fee? means a charge fixed by law or ordinance for the regulation or inspection of a business or activity Gee. 1310), LGC). ' 2*Charges" refers to pecuniary lisbility, as rents or focs against persons or property (Sec. 131(g); LGC). 3 Dr. Joseph Emmanuel L. Angeles, Restatement of the Law ou Local Government, citing Smart Communications, Inc. v. Municipality of Malvar, G.R. No. 204429, February 18, 2014. “ Ongsuco, et. al. v. Hon. Malones, G.R. No. 182063 (October 27, 2009)(¢) The collection of local taxes, fees, charges, and other impositions shall in no case be let to any private (@) The revenue collected pursuant to the provisions of the Local Government Code of 1991 (“LGC”) shall inure solely to the benefit of, and be subject to the dis ition by, the LGU levying the tax, fee, charge, or other imposition unless otherwise specifically provided in the LGC; and (©) Each LOU shal, as far as practicable, evolve a progressive system of taxation (See. 130, LGC). Taxing Authority ‘The power to impose a tax, fee, or charge, ot to generate revenue under the LGC shall be exercised by the benagiilan of the LGU concerned Lac). ‘© PROVINCES through an appropriate ordinance (Sec. 132, ‘The following are the local taxes that may be imposed by provinces: 1. Tax on Transfer of Real Property Ownership! ‘Tax imposed on: [The sale, donation, barter, or on any other mode of transferring ownership or title of real property. Tax base The total consideration involved in the acquisition of the property or of the fair market value® thereof, whichever ihigher,) e were yen. Tax rate ot more than fifty peroent (50%) of one pereent (1%) : ‘Time of Payment I be the duty of the seller, donor, transferor, executor or sinniniy to pay the tax herein imposed Insider bie, {lays from the date ofthe execution ofthe deed or fom the date eo 3 decedent's death (See. 135(b), LGC). ‘Exemption The sale, transfer or other disposition of real property pursuant to RA Rg 6557 (the “Comprehensive Agrarian Reform Law of| 88”) ce > ly ce stags FOF OR Hoy AY, of 2. Taxon geek So Shoe Tax imposed ‘on: The business of persons engaged in the printing and/or Publication of books, cards, posters, Jeaflets, handbills, certificates, receipts, pamphlets, ilar nature. Tax base and tax | (a) In the case of a the tax shall not rate: ex. (120) _of one percent (1%) of the () in a regardless of when the business started to operate, the tax shall not exceed fifty Percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year or any fraction ‘ $ The fair market value shall be that reflected in the prevailing schedule of faic market values enacted by SSRI cain wks wp sini yr, wih bo ccran ip, corporation, or aay other juridical entity of association in a particular Nana jurisdiction (Geet ae LGC). the sanggunian concerned (Azt. 224(a), Rules and Regulations tmplementing the LGC of 1991).i thereof. Exemption 3, Franchise Tax —______| Culture and Sports as school texts or references. The receipts from the printing and/or publishing of books or other fading materials prescribed by the Department of Education, Tax imposed on: Businesses enjoying a franchise. rate: Tax base and tax (a) In the case of a newly started business, the tax shall not exceed one-twenticth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the tax shall not exceed fifty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year or any fraction thereof. © No Moreen (OTe On 4, ‘Tax on Sand, Gravel, and Othier Quarry Resources” F(hy Tax imposed on: | Ordinary stones, sand, gravel, earth, and other quarry resources, as defined under Tax Code extracted from: (a) public lands or (b) the beds of seas, lakes, rivers, streams, creeks, and other public waters within the territorial jurisdiction of the province. Tax base Fair market value in the locality ‘Tax rate ‘Not more than ten percent (10%) 5. ProtessionaTax’ ~ 00! MOTE Hon F 220 He | Tax imposed on: | Each person engaged in the exercise or practice of his profession requiring government examination. Tax Such amount and reasonable clasificaion as We sangeiriane ) + | pantatawigan may determine but shall in no case ex. ree ‘Hundred Pesos (P300.00) Place of Payment | Province where taxpayer practices his profession or where he maintains his principal office in case he practices his profession in several places, Time of Payment | Annually, Gn or before she thirty-first ‘After January 31, if taxpayer first begins to practice his profession afer the month of January. ‘Exemption Professionals exclusively employed in the government “f Notes: (@) Such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession (Sec. 139(b), LGC). (b) A line of profession does not become exempt even if conducted with some other profession for which the tax has been paid (Sec. 139(0), LGC).(©) Any individual or corporation employing a person subject to professional tax shall require payment by that person of the tax on his profession before employment and annually thereafter (See. 139(c), LGC), (d) Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of account, plans and designs, surveys and maps, as the case may be, the number of the official receipt issued to him (Sec, 139(e), LGC). (c) The professionals subject to this professional tax are only those who have passed the bar examinations, or any board or other examination conducted by the Professional Regulation Commission (“PRC”). For example, a lawyer who is also a Certified Public Accountant (“CPA”) must pay the professional tax on lawyers and that fixed for CPAs, if he is to practice both professions (Art. 228(1), LGC IRR), (f) Before accepting payment of the professional tax for the current year, the provincial treasurer or his duly authorized representative shall require from such professionals their current annual registration cards issued by competent authority (Art. 228(f), LGC IRR), (g) The PRC shall likewise require proof of payment of the professional tax before registration of professionals or renewal of their licenses (Art. 228(f), LGC IRR). ‘Tax imposed on: Proprietors, lessees, or operators of (a) theaters, (b) cinemas, (c) concert halls, (d) circuses, (e) boxing stadia, and (f) other places of amusement, ‘Tax Base © | Gtoss receipts from admission fees ‘Tax Rate ‘Not more than ten percent (10%) Exemption Operas, concerts, dramas, recitals, painting and art exhibitions, flower’ shows, musical programs, literary and oratorical presentations shall be exempt. Exception: Pop, rock, or similar concerts shall not be exempt from the amusement tax Note: A percentage tax of 15% is imposed on the gross receipts from professional basketball games under Section 125 of the Tax Code. This precludes the province from imposing a local tax thereon pursuant to Section 133(i) of the LGC. Sale of movie tickets is imposed a Jocal amusement tax, and not VAT. " * out . Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products “Tax imposed on: | Every truck, van, or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products to sales outlets, or consumers, whether directly or indirectly, within the province. Tax ‘An amount not exceeding Five Hundred Pesos (P500.00). Note: The manufacturers, producers, wholesalers, dealers and retailers referred to above ~~ shall be exempt from the tax on peddlers prescribed in Section 143(g) of the LGC.MUNICIPALITIES The following may be imposed by municipalities: tever kind or nature, accordance with the schedule found in Section 143(a) of the LGC. The amount of tax per annum shall be a fixed amount that increases with the i di when such or. of whatever iccordance with the schedule found in Section 143(b) of the The amount of tax per annum shall be a fixed amount that increases with the taxpayer's gross sales or receipts for the preceding calendar year. However, when such gross sales or receipts is P2.0 Million tax shall equal the sales/receipts multiplied by a tax rafe not exceedin; Note: The businesses in paragraph (a) above shall no longer be subject to the tax on | wholesaler, distributors, or dealers provided in paragraph (b). ‘at a rate not 14) of the rates prescribed under subsection (a), (b) and (@) of Section 183 ofthe LOC: (2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine, and fresh water products, whether in their original state or not; | (3) Cooking oil and cooking gas; (4) Laundry soap, detergents, and medicine; ** ' (5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs, (© Poultry f fs snd ober ail food fs (7) School supj (8) Cement (Se. ey Lac), | (1) Rice and com; i { Note: For purposes of Section’ 143 of the LISC, the term “@yporté#s” shall refer to those. who are principally engaged in the business of exporting goods and merchandise, as well ‘as ‘inanufiicturers Vad“ producers whose goods or products are bothi sold domestically Or abrodd:= The amount of export sales shall be excluded from the total’ sales, and shall be subject to the rates not d means trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit (Sec. 131(4), LGC). i \exceeding ¥4 of the rates prescribed in paragraphs (a), (b), and (d) of Section % 143 of the LGC (Art. 232(c), LGC IRR). (@ On in accordance with the following schedule provided in Section 143(@) of the LGC. 2% nb Rseoddary ACS Be es ce 9 AOe (1) The rate of 2% per annum shall be imposed on sales not exceeding P400,000. The rate of 1% per annum shall be imposed on sales in excess of the first 400,000 (Art. 232(d), LGC IRR). (2) The barangays shall have the exclusive power to levy taxes, as provided in Section T52 of the LGC on gross sales or receipts of the preceding calendar year of Fifty Thousand Pesos (50,000.00) or less, in the case of barangays in cities, and Thirty Thousand Pesos (P30,000.00) or less, in the case of barangays in municipalities (See. 143 (€),LGC). At lest Epk ~7 Caty $O%s ok bah 2 > Mun cpadly (© On contractors® and other independent contractors, in accordance with the schedule provided in Section 143(e) of the LGC. The amount of tax per annum shall be a fixed amount that increases with the taxpayer's gross sales or receipts for the preceding calendar year. However, when ‘such gross sales or receipts is P2.0 Million or more, the tax shall equal the seleteceiptsmulpid bya tax mite oLexceeding 30.0961 1.074 © On nd other at a rate not exceeding fifty percent on the gross receipts of the lendar year lerived from interest, commissions and discounts from lending activities, income from financial leasing, dividends, rentals on property and profit from exchange or sale of property, and insurance premium. R ‘ Note: All other income ahd receipts of banks and financial institutions not otherwise enumerated above shall be excluded from the taxing authority of the LGU concemed (Art. 232(e), LGC IRR). Poot exceeding? 5O/poctllen atuclyy @ On engaged in the sale of any inerchandise of article of commerce, at a rate not exceeding Fifty Pesos per peddler annually. ‘oie includes persons, natural or juridical, not subject to professional tax under Section 139 of, ¢ LGC, whose activity consists essentially of the sale ofall kinds of services for a feo, regardless of ‘whether or not the, performance of the service calls for the exercise or use of the physical or mental faculties of such contractor or his employees. ° "Bins a her all io include non-bank financial interme finance ani gent companies, pawnshops, money shops, insurance compani ‘brokers and dealers in securities and foreign exchange, as defined under applicable laws, or rules and __ regulations thereunder (Sec. 131(e), LGC). °© Pedi” means any person who, ether for himself or on commission, travels from place to place and sells his goods or offers to sell and deliver the same, Whether a peddler is a wholesale peddler or a retail Yeddler of a particular commodity shall be determined fom the definition of wholesale dealer or retail 28 provided in Book Il, Title I of the LGC (See. 131(0), LOC).~ Note: Delivery trucks, motor vehicles sed osCmanufacure, poder, producers, Wholesalers, or retailers enumerated in Section 141 of the LGC shall be empt from the peddler’s tax. (h) On any business, not otherwise specified in the preceding paragraphs, which the Senggunlan concerned may deem proper to tax. Provided, that on any business ‘subject to the excise tax, VAT or OPT under the Tax Code, as amended, the rate of tax shall [adil Percent_(2%)) of gross sales or receipts of the preceding c: yea The BupermtemPoocernes may prescribe a schedule of graduated tax rates but 3c to exc inno cas seed the rates prescribed in the LGC. ‘ ¥ Note: In line with existing national policy, any business en the production, manufacture, refining, distribution or sale at Bu pana at saat ch products shall not be subject to any Jocal tax imposed under fion 143(h) of the LGC (Art. 232(h), LGC IRR). a Rete x a Passive Income of a holding company, particularly interest, rental, and dividend 5 income, as well as the gain on the sale of fixed assets, do not constitute “gross receipts” that are subject to’ local business tax (City of Makati v. Metro Pacific Investments Corporation; CTA AC No. 143, July 20, 2016), i) ‘The municipalities within the, Metro Manila Area MMA") ay ley taxes on businesses enumerated in we: Section 143 of the LGC at rates Which Shall{not exceed by Fifty Percent( 50%) Ib Anaximum rates prescribed for said businesses under the same section of the LGC /fSec. 144, LGC, Art. 236(a), LGC IRR). e ~ A business subject to tax on business pursuant to Section 143 of the LGC shall, upon termination” thereof, submit a swom statement of its goss sales ‘or receipts for the current year. If it is found that the retirement or termination of the business is legitimate, and the tax paid during the year be less than i ‘on said gross sales or receipts of the current year, the difference shall be the business is considered officially retired or terminated (Sec. 145, LGC; yer 241(b);LGC IRR). + jv) Payment of Business Taxes ~ ‘The taxes imposed wider Section 143 of the LGC shall be payable for eve pecially, or place. where business subject to the tax is con 1¢ of business does not become exempt by being conducted with some ae ‘business for which such tax has been paid. The tax on a business must be paid by the Person conducting the same. "\ “Termination” shall meen thot business operations are stopped ‘management, and/or name of the business shall not constitute Tas ofthe LOC. Unless stated otherwise, assumption of the business by any new. owmer or manager, or re-registration of the same business under 4 new name will only be considered by the LGU concemed for record purposes in the course of renewal of the permit or license to operate the business (Art. 241, LGC IRR).(ey set wae write @ potauin eumuuLis ur upermics wo (2) of more of thé BUSINESSES mentioned in Section 143 of this Code which are subject to the. the tax shall be comy the{combined total gross sales or receipts of the said two (2) or more rélated businesses (®) In cases where a person conducis or operates two (2) or more businesses mentioned in Section 143 of this Code which are subject to different rates of tax, the gross sales or receipts of each business shall be yf the purpose of computing the tax due from each business (Sec. 146, LGC). sieatotine Ta” @ bo usposes of collection of the business taxes under Section 143 of the LGC, businesses fcaiatatg or copecatiog a aes or sales outlet"?, or warehouse! 3 In cases where there is no such branch or sales outlet or warehouse in the city or municipality where the sale or transaction is made, the sale shall be duly recorded in the principal office’* along with the sales made by said principal office, and the taxes due shall accrue and shall be paid to such city or municipality where said ute ery principal office is located (Sec. 150(a), LGC; Art. 243 (bX1), LGC IRR). es ee Loceks yy r has a fi plant, or plantation, and lll snles ‘ \ sacar nn ttn sls allocation shall apply: 35h| FA % (0) Thy percent] 30%) of a sales recorded in the principal office shall be : le by the where the princi located; and (2) Seventy DercentCU9Gy of al sl rcondod ite principal offer shal be eg dete NS taxable by the city or municipality where the factory, project office, plant, or OS, 48% plantation plesk a : 2, —_a fixed place in a locelity which conducts operations of the business as an ‘extension of the principal office. Ofiices used oaly as display areas of the products where no stock or items are stored for sale, although ozders for the products reay be recsived thereat, are not branch or sales offices as herein contemplated. A warehouse which accepts orders for issues sales invoices independent of a branch with a sales office, shall be considered as a sales office (Art. 243(2), LGC IRR). © Warehouse — a building utilized for tho storago of products for sale and from ‘which goods or merchandise are withdrawn for delivery to customers or dealers, or by persons acting in behalf of the ‘business. A warchouse that does not accopt orders and/or issue sales invoices as aforementioned shall not bbe considered a branch or sales office (Art. 243(3), LGC IRR). M Drbiipal Ofte — tbe a mai bic of te sie appearing in the pertinent documents submitted to the Securities and Exchange Commission (“SEC”), or the Department of Trade and Industry (DIP, or other appropriate ageacies, as the case may be. ‘The city or municipality specifically mentioned in the Articles of incorporation or official registration papers as being the official address of seid principal office shall be considered as the situs thereof. im case there is a transfor or relocation of the principal office to another city or municipality, it shall be the duty of the owner, operator, or menager of the busiess to give due notice of such transfer or relocation to ‘the local chief executives of the cities or municipalities coucemed within fifteen (15) days after such ‘or relocation is effected (Art. 243(1), LGC IRR). ee(©) In case of a plantation located at a i a place other than the place where the factory is located, cid seventy prcen (70%) mentioned in subparagraph (b) of subsection (2) above shall be divided as follows: (1) Sixty percent (6024)}to the city or municipality where the factory is located; and (2) Forty percent (40%)}to the city or municipality where the plantation is located. (@) In cases where a manufacturer, assembler, producer, exporter or contractor has two (2) or more factories, project offices, plants, or plantations located in different localities, the seventy percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2) above shall be prorated among the localities where the factories, project offices, plants, and plantations are located in proportion to their a respective volumes of production during the period for which the tax is due (Sec. 150(4), LGC). In the case of project offices of service and other independent contractors, the term “production” shall refer to the cost of projects actually undertaken during the tax period (Art. 243(b\(5), LGC IRR). 2. [Fees and Charges, |. (@) Permits/ticenses’ ‘The municipality may impose and collect such reasonable fees and cl and occupation and, on the practice of any profession or calling, commensurate wit inspection and licensing before any person may engage in such business or occupation, or practice such profession or calling, Provided that, such fees or charges shall only be commensurate to the cost of issuing the license or permit, and the expenses incurred in the conduct of the necessary inspection or surveillance. No such fee or charge shall be based on capital investment or gross sales or receipts of the person or business liable therefor (Art. 233, LGC IRR). Note: The conduct or operation of 2 or more related businesses under Art. 143 of the “LGC by any one person, natural or juridical, shall require the issuance of a separate permit or license to each business. () . Fees for Sealing and Licensing of Weights and Measures The municipality may levy fees for the sealing and licensing of weights and ‘measures at such reasonable rates as shall be prescribed by the sangguniang bayan. (©) Fishery Rentals, Fees, and Charges + The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination at such amount and reasonable classification as the Sangguniang panlalawigan may determine but shall in no case exceed Three Hundred Pesos (P300.00) 9Municipalities shall have the exclusive authority to grant fishery privileges in the municipal waters and impose rentals, fees or charges therefor in accordance with , the provisions of Section 149 of the LGC. Additional Taxing Power of Municipalities Within the Metropolitan Manila Area MMA’) ‘The municipalities within MMA, pursuant to Section 186 of the LGC, may also levy and collect the taxes which may be imposed by the province under Sections 135 to 141 of the LGC at rates not exceeding those prescribed therein (Art. 236(b), LGC IRR). 4 learies Scope of Taxing Powers of Cities Sich gone of muni ay which the The rates of taxes that the city may levy may exceed the maximum rates allowed for the province or municipality Gy not more than fifty percent (50%) except the rates of professional and amusement taxes (Sec. 151, LGC). ty.may levy the taxes, fees, and charges @ Note: The rates of the following taxes shall be uniform for the city and the province: (a) Professional tax which shall.not exceed Three Hundred Pesos (P300); and (b) Amusement tax on paid admission, the rate of which shall not be more than ten } peroege (10%) Ht the gross receipts from admission fees. Provided, however, that the taxes, fees and charges levied and collected by highly urbanized and independent component cities shall accrue to them and shall be distributed in accordance with the provisions of the LGC (Sec. 151, LCG). 2) The city amy also Je and colle» eroeage tx on any business not otherwise specified under paragraphs (a) to (g) of Section 143 of the LGC at rates not exceeding three percent \f the gross sales or receipts of the preceding calendar year. 3) In addition to the annual fixed tax imposed under Section 141 of the LGC, cities may also collect from the same manufacturers, producers, wholesalers, retailers, and dealers using route trucks, a mayor's permit fee which shall be imposed in a local tax ordinance pursuant to Section 147 in relation to Section 132 of the LGC. ‘ 10VY sasaovaave? The following may be imposed by barangays: OOF mote AHey BOK, ~ cry a) Taxes of toFes/Aetailers| Seon ineagoNOr MARE IKE 2K ~ tener Lenk endea tren AM wees /necaes ‘0 Tax imposed on: Stores or retailers with fixed business establishments with gross sales or receipts of the preceding calendar year of: (@) ‘Not more thar’ P50, 000 for stores in a barangay within a ily. (b) Not more.than!P30,00)\for stores in a barangay within a municipolity, u Tax base Gross sales or receipts Tax rate ‘Not more than one pereent(1%) (See. 152(a), LGC). b) Service Fees or Charges” Barangays may collect reasonable fees or charges for services rendered in connection with the regulation or the use of barangay-owned properties or'service facilities such as palay, copra, or tobacco dryers (Sec. 152(b), LGC). ©) Barangayctearance No city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. For such clearance, the sangguniang barangay may impose a reasonable fee. The application for clearance shall be acted upon within seven (7) working days from the filing thereof. In the event that the clearance is not issued within the said period, the city or municipality may issue the said license or permit (Sec. 152(c), LGC). 4) aaieaiemmmcharses ‘The barangay may levy reasonable fees and charges: (1) On commercial breeding of fighting cocks, cockfights and cockpits (Sec. 152(4)(1), LGC); (2) On places of recreation'® which charge admission fees (Sec. 152(d2), LGC); (3) On billboards, signboards, neon signs, and outdoor advertisements'” at rates not exceeding the rates found in Section 240(4)(4) of the Implementing Rules. 1, aa oat include places of amusement where one seeks admission to himself by seeing or viewing show or peiSSSRGE Tbe ther one amuses himelf by dire paRTepatione> "7 Signs, signboards, advertisements, including stickouts, streamers, lighted signs, and other electronic media, posters, privilege panels, store signs, placards, price strips, buntings, and the like, belonging to ‘manufacturers, producers, or professionals, but displayed: a) At the place where a business or profession is conducted; or ) On delivery or other service and public utility vehicles © |‘The following revenue-raising powers are aveilable to all UGUS: 1) Service Fees and Charges LGUs may impose and collect such reasonable fees and charges for services rendered (Sec. 153, LGC). Such fees and charges must be in an amount reasonably commensurate to the service rendered by the LGU. Provided, that no service charge shall be based on capital investments, or gross sales or receipts of the person or business liable therefor (Art. 244(a), LGC IRR). 2) Public ity Charges LGUs may fix the rates for the operation of public_utilities owned, operated _and maintained by them within their jurisdiction (Sec. 154, LGC) ‘The rates shall be fixed by the sanggunian concermed (Art. 244(b), LGC IRR). 3) TallBeesor Charges’ LGUs may prescribe the terms and conditions, through an appropriate ordinance enacted by their sariggunians, for the use of any public road, pier, or wharf, waterway, bridge, or ferry, or telecommunication system. LGUs, thru ordinances, may also fix reasonable toll fees and service charges for the use thereof. Provided, that no such ioll fees or charges shall be collected from: a) officers and enlisted men of the Armed Forces of tue Pilippines and members of the Philippine National Police on mission, b) post office personnel delivering mail, ©) persons who are piiysically-handicapped, and 4) disabled citizens who are sixty-five (65) years or older. When the public safety and welfare so require, the sanggunian concerned may discontinue the collection of the tolls and charges, and thereafter the said facility shall be free and open for public use (Sec. 155, LGC; Art. 244(b), LGC IRR’ such fees or charges provided in Section 240(4)(4) and otber impositions that may be imposed by the barangay. 12+ eee A What LGU Can Levy A Community Tax? ‘Giies or municipalities may levy a community tax in accordance with the provisions of 0 ns 156 to 164 of the LGC (Sec. 156, LGC). Community Tax of Individuals” Individuals Liable to the Payment of Community Tax (1) Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on a wage or ae n asis for at least thirty (30) consecutive working days during any calendar year, ot (2) An individual who is engaged in business or occupation, or (3) An individual who owns real property with an aggregate assessed value of One ‘Thousand Pesos (P1,000.00) or more, or (4) An individual who is required by law to file an income tax return (Sec. 157, LGC). Rate of Community Tax Payable by Individuals (1) The rate of community tax that may be levied and collected from said individuals shall be: a) An annual (basic) community tax of Five Pesos (P5.00) plus 'b) An annual additional tax of One Peso (P1.00) for every One Thousand Pesos (P1,000.00) of income regardless of whether from business, exercise of profession or from property, which in no case shall exceed Five Thousand Pesos (P5,000.00). (2) In the case of husband and wife, each.of them shall be liable to pay the basic tax of 5.00, but the additional tax imposable on the husband and wife shall be P1.00 for every P1,000 of income from the total property owned by them and/or the total gross receipts or earnings derived by them (Sec. 157, LGC; Art. 246(a) and (b), LGC IRR). Community Tax of juridiéal Persons Juridical Persons Liable to the Payment of Community Tax Every corporation'® no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall be liable to pay the community tax (Sec. 158, LGC). Note: A cooperative enjoying exemption from local taxes, including the real property tax, is 10 secure a Mayor’s permit_and the Community Tax Certificate (BLGF Opinion No. 26-2016, Sepionbe r 16, 2016). A Ger ee 18 -Gorporalion” includes partnerships, no matter how created or organized, joint-stock companies, joint accounts (cuentas en participacion), associations or insurance companies but does not include general professional parinerships and a joint venture of consortium formed for the purpose of undertaking onstruction projects or engaging in petroleum, cop, geothermal, and other energy operations pursuant to am operating or consortium agreement under a service contract with the government.Rate of Community Tax Payable by Juridical Persons (1) An annual community tax of Five Hundred Pesos (7500.00) hue (2) An annual additional tax, which, in no case, shall exceed Ten Thousand Pesos (P10,000.00) in accordance with the following schedule: (a) For every Five Thousand Pesos (5,000.00) worth of seal_property in the Philippines owned by it during the preceding year based on the valuation used for the payment of real property tax under existing laws, found in the assessment rolls of the city or municipality where the real property is situated - Two Pesos (2.00); and (b) For every Five Thousand Pesos (1°5,000.00) of gross receipts or eamings derived by it from its business in the Philippines during the preceding year - Two Pesos (82.00). x. Note:The dividends received by a corporation from another corporation however shail, for the purpose of the additional, tax, be considered as_part_of the ‘Bross receipts or.eamings of said corporation (Sec. 158, LGC). Exemptions from Payment of the Community Tax The following are exempt from the community tax: (1) Diplomatic and consular representatives; and @) Tent isitors when their stay in the Philippines docs not exceed three (3) months Gee. 159, LGC). Place of Payment of the Community Tax The community tax shall be paid in the place of residence of the individual, or in the place where the principal office of the juridical entity is located (Sec. 160, LGC). Community Tax Certificate ‘A community tax certificate shall be issued to every person or corporation upon payment of the community tax. $A community tax certificate may also be issued to any person or corporation not subject to the community tax upon payment of One Pes (100) (Sec. 162, LGC). Presentation of Community Tax Certificate On Certain Occasions (a) When an individual subject to the community tax: (1) acknowledges any document before a notary public; (2) takes the oath of office upon election or appointment to any position in the government service; * (3) receives any license, certificate, or permit from any public authority; (4) pays any tax or fee; (6) receives any money from any public fund; (© transacts other official business; or 4(7) receives any salary or wage from any person or corporation with whom such transaction is made or business done or from whom any salary or wage is received to require such individual to exhibit the community tax certificate, “Piowever, he pesntion of smmniy ex ete at be ube connection (b) When, through its authorized officers, any corporation subject to the community tax receives any license, certificate, or permit from any public authority, pays any tax or fee, receives money from public funds, or transacts other official business, it shall be the duty of the public official with whom such transaction is made or business done, to require such corporation to exhibit the community tax certificate. (©) The community tax certificate required in the two preceding paragraphs shall be the one issued for the current year, except for the period from January {until the fifteenth (15th) of April each year, in which case, the certificate issued for the preceding year shall suffice (Sec. 164, LGC). Collection of the Tax and Distribution of Proceeds The city or municipal treasurer shall deputize the barangay treasurer to collect the community tax in their respective jurisdictions: Provided, however, that said barangay treasurer shall be bonded in accordance with existing laws (Sec. 164(b), LGC). Fane T% COLLEGnun ur vucan rnans Tax Period and Manner of Payment aa in the LGC, the tax period of all local taxes, fees and charges shall be the Such taxes, fees and charges may be paid in quarterly installments, ns may be provided in the tax ordinance (Sec, 165, LGC; Art. 253, LGC IRR). ays oF Ten Accrual of Tax * se provided in the LGC, all local taxes, fees, and charges shall accrue on the first _ ‘ist) day of JanuaryJof cach year. (howftaxes, fees or charges, or changes in the rates thereof, shall,accrue on the first of thela xt following the effectivity of the ordinance imposing such new levies Time ofPayment wth SA BO dey} OF Ten. on OF eFCh Khrtat Quo Unless i i GC, all local taxes, fees, and charges shall be paid Gin of each subsequent quarter, as the.case may be. The sarggunian concemed may, for a justifiable reason or cau the time for payment of such taxes, fees, or charges without surcharges or penalties 1ao-+by LECD Interests or Other Unpaid Revenues Where the amount of any other revenuo due an LGU, except voluntary contributions or donations, is not paid on the date fixed in the ordinance, or in the contract, expressed or 16ae oF upon the occurrence of the event which has given rise to its collection, there shall € collected as part of that amount an interest thereon at the rate not excesding two percent (2%) per month from the date it is due until it is paid, but in no case shall the total interest on the unpaid amount or a portion thereof exceed ihitty-six (36) months (Sec. 169, LGC). Collection of Local Revenue by Treasurer All local taxes, fees, and charges shall be collected by the provincial, city, municipal, or barangay treasurer, or their duly authorized deputies. ‘The provincial, city or munici urer may designate the barangay treasurer as his deputy to collect local taxes, fees, or charges. In case a bond is required for the purpose, the provincial, city or municipal government shall pay the premiums thercon in addition to the premiums of bond that may be required under the LGC (Sec. 170, LGC). CIVIL REMEDIES FOR COLLECTION OF REVENUES Local Government's Lien Local taxes, fees, charges and other revenues constitute a lien, superior to all liens, charges or encumbrances in favor of any person, enforceable by appropriate administrative or judicial action, not only upon any property or rights therein which may be subject to the lien but also upon property used in business, occupation, practice of profession or calling, or exercise of privilege with respect to which the lien is imposed. The lien may only be extinguished upon full payment of the delinquent local taxes, fees and charges including related surcharges and interest (Sec. 173, LGC). Civil Remedies (1) Assessment Local taxes, fees, or charges Say vin RESO the date they became due. No action for’ the collection of such taxes, fees, or charges, whether administrative or judicial, shall be instituted after the expiration of such period (Sec. 194(a), LGC). Note: Local taxes accrue on the 1* day of January of each year unless otherwise provided in the LGC. However, new taxes, fees or charges, or changes in the rates thereof, accrue on the 1" day of the quarter next following the effectivity of the ordinance imposing such new levies or rates (Sec, 166, LGC). Exception to the Period of Limitation In case of ‘to evade the payment of taxes, fees, or charges, the same may be asseséed within ten discovery of the fraud or intent to evade payment (Sec. 194(b), LGC).(2) Collection’ Period of Collection Local taxes, fees, or charges may be collected within from the date of assessment by administrative or judicial action. No such action shall be instituted after the expiration of said period (Sec, 194(c), LOC) The civil remedies for the collection of local tnxes, fees, or charges, and related surcharges and interest resulting from delinquency shall be: (a) By administrative action thru (i) distraiat of goods, chattels, or effects, and other personal property of whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in and rights to personal property, and (ii) by Jewy/upon real property and interest in oF rights to real property, and (b) By Ludi sion ‘The LGU concemed may enforce collection by civil action in any court of competent jurisdiction, ‘The ease shall be filed by the local treasurer. Either of these remedies or all may be pursued concurrently or simultaneously at the discretion of the LGU concemed (See. 174, LGC). Personal Property Exempt from Distraint or Levy The following properties shall from distraint and the levy, attachment or execution thereof for delinquency in the payment of any-lecal tax, fee or charge, including the related surcharge and interest: 2 (@) Tools and implements necessarily used by the delinquent taxpayer in his trade or employment; (b) One (1) horse, cow, cxrabao, or other beast of burden, such as the delinquent taxpayer may select, and necessarily used by him in his ordinary occupation; (c) His necessary clothing, ard that of all his family; (@) Household furniture and utensi!s nocessary for housekeeping and used for that purpose the delinquent taxpayer, SUCIE he may select, of a value not exceeding Ten Tossa Pesos (10,000.00), (©) Provisions, including ciops, actually provided for individual or family use sufficient for four (4) months; () The professional libraries of doctors, engineers, Jawyers and judges; (g) One fishing boat and nct, not exceeding the total value of Ten Thousand Pesos (P 10,000.00), by the lawful use of which a fisherman earns his livelihood; and () ayy material or article forming part of a house or improvement of any real property (Sec. 185, LGC). ‘Suspension of the Running of the Prescriptive Periods ‘The running of the periods of prescription for assessment and collection of the local taxes, fees, and charges shall be suspended for the time during whit (1) The treasurer from (2) The taxpayer requests for executes a waiver in before expiration of the period within which to assess or collect, and ~ © (3) The taxpayer isoutoftie ony or otherwise eannotbe located (Sec. 194(4), LGC).‘TAXPAYERS’ REMEDIES (2) Protest of Assessment Receipt of Assessment REE File Protest with Local Treasurer WEEE &> « Protest isdenied OR Not Acted Upon EE > ‘Appeal to the Regional Trial Court (“RTC”) ‘Appeal is Denied by the RTC 19 dogs ‘Appeal to the Court of ‘Tax Appeals (“CTA”) Notes: (@) There is no requirement that the local tax be paid before the taxpayer can file a protest to contest the assessment. (b) Administrative remedies must first be exhausted before the taxpayer can seek redress in the RTC, (2) Injunction Against the Collection of Local Taxes Injunction’ against the collection of local taxes is available but only when the following conditions concur: Issued by the Regional Trial Court. 19ji) Such a suit is not forbidden by law; ii) ‘The ground for issuing an injunction is to prevent the collection of wrongful taxes by a municipality, and iil) There is no other adequate remedy to redress the injury to property which would be inflicted by enforcing the payment of the tax.”” (3) Claim for Refund or Tax Credit Payment of the tax, fee or charge File Claim for Refund or Tax Credit with the Local Treasurer Denial of Claim 0 Appeal to the Regional Trial Court (“RTC”) Appeal is Denied by the RTC | ‘Appeal to the Court of ‘Tax Appeals (“CTA”) Notes: (@) All taxpayers entitled to a refund or tax credit shall file with the local treasurer a claim in writing duly supported by evidence of payment (c.g, official receipts, tax clearance, and such other proof evidencing overpayment) within 2 years from payment of the tax, fee, or charge. i (b) Exhaustion _of administrative remedies .i8 required. No case or proceeding shall be entertained in any court without the aforeihentioned claim in waiting, and after the expiration of 2 years from the date of payment of such tax, fee, or charge. ® Valley Trading Co., Inc., v. Court of First Instance, et. al. 171 SCRA 601 (1989). 20(©) The tax credit granted a taxpayer shall not be refundable in cash but shall only be applied to future tax obligations of the same taxpayer for the same business, Any unpaid balance of the tax credit shall be refunded in cash in the event he terminates operation of the business involved within the locality (Art. 286, LGC IRR).sk REALPROPERTY TAXATION Fundamental Principles ‘The appraisal”, assessment”, levy and collection of real property tax shall be guided by the following Fandamental principles (a) Real property shall be appraised at its current sod icmakel ee (b) Real property shall be classified for assessment purposes on the basis of its actual tse™; (6) Real property shall be assessed on the basis of a uniform classification within each local government unit; (4) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and (©) The appraisal and assessment of real property shal be equitable, ‘Municipal Corporations That May Levy Real Property Taxes Under Section 232 of the LGC, only the following municipal corporations may levy a real Property tax, namely: (1) Provinces; 2) Cities; and (3) Municipalities within the Metropolitan Manila Area (“MMA”). ‘The above-mentioned LGUs may levy an annual ad valorem tax on real property such as land, building, machinery, and other improvement not specifically exempted by the LGC (Sec. 232, LGC). % Note: Municipalities outside the MMA have to levy re: taxes. Computation of Real Property Tax Due Procedural stzps in computing the real property tax: (1) Ascertain the assessment ievel of the property. (2) Multiply the market value by the applicable assessment level to get the assessed value. (3) Find the tax rate which corresponds to the class of the property (4) Multiply the assessed value by the applicable tax rates. 2 is the act or process of determining the value of property as of a specified date for a se (Sec. 199(¢), LGC), is the act or process of determining the value of a property, or proportion thereof subject including the discovery, listing, classification, and eppraisal of properties (Sec. 199(f), LGC). . is the price at which a property may be sold by a seller who is not compelled to sell t by a buyer who is not compelled to buy (See. 1991), LGC). 2 Aehual Use” refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof (See. 199(b), LGC), 2 to 2 2APPRAISAL AND ASSESSMENT Appraisal of Real Property are whether taxable or exempt, shall be appraised the current and fair’ market iling in the locality where the property is situated. Declaration of Real Prope b) Bythe 1r Making Improvement Thereon, or ©) By the Notes: 1) The declaration shall be in the form of a itn statement decaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. 2) The local assessor shall declare only real property previously undeclared for taxation Purposes. Assessment Listing of Real Property in the Assessment Rolls In every province and city, including the municipalities within the Metropolitan Manila Area, there shall be prepared and maintained by the provincial, city or municipal assessor an assessment roll wherein shall be listed all real property, whether taxable or exempt, located within the territorial jurisdiction of the LGU concemed. Real property shall be eae amc in the name of the owner or administrator, or anyone having legal interest in the property Actual Use of Real Property as Basis for Assessment Real property shall be classified, valued and assessed on the basis of its fetuatusd regardless of where located, whoever owns it, and whoever uses,it (Sec. 217, LGC). Classes of Real Property for Assessment Purposes For purposes of assessment, real property shall be classified as: o J, 20. (a) resi HOP (b) agrctira, (©) commercial, (d) industrial, (e) mineral”, (f)timberland, or () special”® 5O% are lands in which minerals, metallic or non-metallic, exist in sufficient quantity or grade to justify the necessary expenditures to extract and utilize such materials (Sec. 199(p), LGC). “eeu are lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water 3by the provincial and city assessors, including the municipal assessors of the Metropolitan Manila|Area. The cities or municipalities within the Metropolitan Manila Area, through their respective sanggunian, shall have the power to classify lands as residential, agricultural, commercial, industrial, mineral, timberland, or special in accordance with their zoning ordinances provided such classification is on the basis of actual use as provided in Section 217 of the LGC (See, 215, LGC; Art. 306, LGC IRR). Appraisal and Assessment of Machinery” (a) The fair market value of a brand new machinery shall be the Acquisition cost (including the cost of transportation, handling, and installation). In all other cases, the fair market value shall be determined by: ie remaining economic life of the machinery by its estimated econamic life, ani y the replacement or reproduction cost. (b) If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling, and installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign ‘currency exchange rates as fixed by the Central Bank (Sec. 224, LGC; Art. 315, Lec IRR). Depreciation Allowance for Machinery _ For pu ses of assessment, a depreciation allowance shall be made for machinery at a rate Got exceedise five percent (5%) of its original cost or its replacement or reproduction ccost, as the case may be, for each year of use. Provided, however, that the remaining value” for all kinds of machinery shall be fixed at notes than twenty percer ‘such origi replacement, or reproduction cost for so long as the machinery is are and in operation (See. 225, LGC). districts, and GOCCs rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power (Ses. 216, LOC). = embraces machines, equipment, raechenical contrivances, instruments, appliances or apparatus which may or may not be atached, pertnanently or temporatly, to the real property. Machinery which are of general purpose or use including but not iimited tn ofice equipment, typewriters, telephone equipment, breakable or exsily damaged containers (glass or cartons), microcomputers, facsimile machines, telex machines, cash dispersers, furnitures and fixtures refi cases of racks, fruit juice or beverage automatic dispensing machines lich se Bee ed Sean to meet the needs of «particular industry, business or activity, shall-not be eonsidered-within- the» definition of machinery. Il include machin lipmect, appliances or apparatus rca ements or| destination (Art, 290(0), LGC IRR) ane: the value comesponding to the remaining useful life of tho machinery (Sec. 199(3), LGC) 4Assessment Levels?9 * dso Lae is be ied the Percentage applied to the fir market value to determine the taxable value of the property. These shall be set by the sanggunian concemed but shall not exceed the following: (@) On Lands: LASS ‘ASSESSMENT < LEVELS Residential 20% Agricultural 40%. Commercial 50% Industrial 30% Mineral ‘50% ‘Timberland _ 20% On Buildi d Other Structui (1) Residential Fair Docket ‘Value Not Over Avene P_175,000 0% P_175,000 300,000 10% 300,000 500,000 20% 500,000 750,000 25% _ _| 750,000, 1,000,000 30% 1,000,000 2,000,000 35% 2,000,000, 5,000,000 40%. 5,000,000 10,000,000 50% 10,000,000 60% culo Assessme Fair meet ‘Value ‘Not Over nt Level 'P300,000 28% 'P300,000 500,000 30%. 500,000. 750,000 35%. "750,000 7,000,000 40% 7,000,000, 2,000,000 45% 2,000,000, = 50% ® CommerciaVindustriat Fair Ma lu ‘Assessmen eer | NotOver | Te ert 300,000 30% 1F300,000- 500,000. 35% 500,000 750,000 40% "750,000. 1,000,000 50% 7,000,000 2,000,000 60% 2,000,000 5,000,000 10% 5,000,000 10,000,000 75% 10,000,000 80% (@ Timberland Fair Market Value ‘Assessmen One NotOver | ACrey 300,000 4 300,000. 500,000 ‘50% 500,000 750,000, ‘55% "750,000, 1,000,000 60% 1,000,000 2,000,000 65% 2,000,000 70%The assessment levels to be applica to the 1air Market varuc OF real property vo GCIerTMINe 13 assessed value™ shall be fixed by ordinances of the sangguniang panlalawigan, sangguniang ‘panlungsod, or sangguniang bayan of « municipality within the Metropolitan Manila Area. Real Property Tax Rates (1) Basic Real Property Tax (@) Inthe case of agfoviney atthe rte not excenting one percent (4 ) Of the assessed value of real pro (b) In the case of afcit ‘within the Metropolitan Manila Area, at the rate not exceeding two percert{ (2%) of the assessed value of real property (Sec. 233, LGC). Exemptions from Real Property Tax ‘The following are exempted from payment of the real property tax: (@) Real © by the Republic’ of the Philippines/or any of its political visions except, when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person; (b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or ‘educational purposes; (© All machineries and equipment that are actually, directly and exclusively SATEOGCa een distribution and/c transmission of besa. @ owned by rovided for under R.A. No, 6938; and | (c) On Machineries: ASSESSMENT As LEVELS 40% Residential 50% Commercial 80% Industrial 80% (A) On Special Classes: Assessment levels for all lands, buildings, machineries, and other improvements ASSESSMENT ACTUAL USE SEVELS ‘Cultural 15% Scientific 15% Hospital 15% Local Water Districts 10% ‘GOCCs engaged in the 10% | supply and distribution of water and/or generation ' and transmission of electric power Fin & Astesed le) the fair market value of the'real property multiplied by the assessment level. It is jonymous t (Sec. 199(h), LGC). 26(€) Machinery and equipment used for Pollution control and environmental protection. (2) Special Levies av (@) Additional Levy on Real Property for the ) An annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (“SEF”) (Sec. 235, LGC). (b) Additional Ad Valorem Tax on Idle Lands) ~ 6% ‘A province or city, or a municipality within the Metropolitan Manila Area, may levy an annual tax on idle lands at the rate not exceeding five percent (5%) of the assessed value of the property which shall be in addition to the basic real property tax (Sec. 236, LGC). For purposes of real property taxation, idle lands shall include the following: (@) Agricultural lands, more than_one (1) hectare in area, syitable_for cultivation, dairying, inland fishery, and other agricultural_uses, Sue-half (1/2) of which Temain unciltivated or uniny 5y the owner of the property or person having legal interest therein. Opa not Agricultural lands planted to permanent or perennial crops with ft least fifty (50)7 By costed a hectare shall cdnsidered|idle lands] Lands actually used Tor Igatigen [DLE ses shall likewise not sees 6 (b) Lands, other than agricultural, located in a city or municipality, more than one 4 thousand (1,000) square meters in area, one: ‘OF Which remain unutilized or unimproved by the owner of the property or person having legal interest therein. However, a province or city or a municipality within the Metropolitan Manila Area may exempt idle lands from the additional levy by reason of force majeure, civil natural talamity or any cause or circumstance which physically or legally prevents the owner of the property or person having legal interest therein from improving, utilizing or cultivating the same (Sec. 238, LGC). : 1 OM (© Special Levy (Special Assessment) by Local Government Units A province, city or municipality may impose a special levy on the lands comprised within its territorial jurisdiction specially benefited by public works projects or improvements funded by the LGU concerned. Provided, however, that: (1) the special levy shall ot excecit sixty percent (60%Dof the actual cost of such projects and improvements, including the costs oF acquiring land and such other real property in connection therewith; and (@) the special levy shall not apply to (1) lands exempt from basic real property tax, and (2) the remainder of the land portions of which have been donated to the LGU i ‘oncemed for the construction of such projects or improvements (Sec. 240, LGC). 27REMEDIES OF THE TAXPAYER (1) PROTEST and ASSESSMENT APPEALS Payment of the tax under protest wv. File Protest with the Local Treasurer Denial of Protest or Inaction of the Local Treasurer GAM a LonttaT cas Appeal to the Local Board of Assessment Appeals (“LBAA”) SVAN MRR as Adverse Decision of the LBAA. Note: Within the same 30 days | from the time of receipt of the adverse decision, the taxpayer can also file a Motion for Reconsideration with tke LBAA. | v —-Appeal to the Central Board of Assessment Appeals ("CBAA”) Adverse decision of the CBAA etition for Review with the cra | 30Notes: (1) A taxpayer must first exhaust his administrative remedi ies, ic. fil rotes treasurer, and appeal tothe LBA, before secking redress fom the cours However, if what is being questioned is the ve it F > it ery authority and power of the assessor to impose the tax, the administrative proceedings provided in the LGC will not apply. In cases where immediate resort to the cours is allowed without the taxpayer exhausting the administrative remedies provided by law, the taxpayer can bring the matter to the Regional Trial Courts (“RTCs”). Ifa taxpayer is not satisfied with the decision of the RTC, the taxpayer may file, within thirty (30) days from receipt of the assailed decision, a Petition for Review with the Court of Tax Appeals (“CTA”). A division of the CTA shall hear the case. (2) Appeal taken to the CTA shall not suspend the payment, levy, distraint, and/or sale of any property ofthe taxpayer forthe xisfaon of his tax liability as provided by existing W. * Provided, however, that when in the opinion of the CTA the collection may jeopardize the interest of the Goverment and/or the taxpayer, the CTA, at any stage of the proceeding, may suspend the said collection and require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double the amount with the CTA (RA. No. 9282). (2) CLAIM FOR REFUND/CREDIT When an assessment of basic real property tax, or any other tax levied under this Title Il of the LGC, is found to be illegal or erroneous, and the tax is accordingly reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and interests with the provincial or city treasurer within two (2) vears from the date the taxpayer is entitled to such reduction or adjustment The provincial or city treasurer shall decide the claim for tax refund or credit within sixty (60) days from receipt thereof. In case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies as provided in “Assessment Appeals.” (3) INJUNCTION * When in the opinion of the CTA the collection may jeopardize the interest of the Government and/or the taxpayer, the CTA, at any stage of the proceeding, may suspend the said collection ire the taxpayer either to deposit the amount claimed or to file a surety bond fa amount swith the CTA (R.A. No. 9282). 31