TAXPAYERS REMEDIES FROM ASSESSMENT OF LOCAL TAXES OTHER THAN REAL PROPERTY TAXES

START

Local Treasurer* (LT)

assess local taxes within
5 years from date they
become due or 10 years
from discovery of fraud

LT decides
w/in 60
days?

Taxpayer files written protest is

protest made within 60 days
from receipt of assessment

Local Treasurer issues

notice of assessment

Local Treasurer
decides on protest
within 60 days from
filing of protest

Is protest made w/in

YES

prescribed period?

NO

LT grants
protest?

Taxpayer appeals to court of

competent jurisdiction (regular
courts) within 30 days from
receipt of notice or from lapse
of 60 days

NO

YES
Local Treasurer issues notice
cancelling partially/wholly
the assessment

END

Appeal to CTA Division; but if

the decision is from an RTC
exercising appellate
jurisdiction, appeal should be
made directly to CTA en banc
under Rule 43 of the ROC

NO

Assessment
becomes final

If Division decides against the taxpayer,

he must file a Motion for Reconsideration
w/in 15 days with the same division

If Motion for Reconsideration

is denied, file Petition for
review with CTA en banc

Appeal to Supreme
Court (SC)

END

PROCEDURE FOR DISTRAINT AND LEVY FOR PURPOSES OF SATISFYING LOCAL TAXES

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Tax constitutes a lien superior to

all liens and may only be
extinguished upon payment of the
tax and the related charges. (Sec.
173)

Officer posts notice in office of the

chief executive of the LGU** where
the property is distrained and in at
least 2 other public places specifying
the time and place of sale, and
distrained goods. The time of sale shall
not be less than 20 days after the
notice. (Sec. 175)

Before the sale, the goods or effects

distrained shall be restored to the
owner provided all charges are paid

Excess of proceeds over charges

shall be returned to the owner
of the property sold.

Time for
payment of Local
taxes expires

Local Treasurer (LT), upon written notice,

seizes sufficient personal property to
satisfy the tax, and other charges (Sec. 175)

LT issues a certificate which

serves as warrant for the
distraint of personal property.
(Sec. 175)

Officer executing the distraint

accounts for the goods
distrained. (Sec. 175)

Property distrained
Disposed within 120 days
from distraint?

NO

It shall be considered as sold to the LGU

for the amount of the assessment made
by the Committee on Appraisa***l and to
the extent of the same amount, the tax
delinquencies shall be cancelled.

YES
Officer sells the goods at public
auction to the highest bidder for
cash. Within 5 days, the local
treasurer shall report sale to the
local chief executive concerned

If the proceeds of the sale are

insufficient, other property
may be distrained until the
full amount due, including all
expenses, is collected

Real property may be levied on before,

simultaneously, or after the distraint of
personal property (Sec. 176)**** until said
tax, fee, or charge has been fully paid.

Take note:
*LT Local Treasurer;
**LGU Local Government Unit;
*** It is composed of Local Treasurer as Chairman, Commission on Audit representative and LGU assessor as members;
****Procedure for levying real properties to satisfy local taxes is the same as levy procedure for satisfying real property taxes (Sec. 258-266) except the
following:
a. Publication is once a week for 3 weeks for local taxes (Sec. 178) and once a week for 2 weeks for real property taxes (Sec. 260);
b. For local taxes, LGU may purchase levied property if there is no bidder or of the highest bid is insufficient to cover the taxes and other charges (Sec.
181) while for real property taxes, the LGU may purchase levied property if there is no bidder.