Local Government Code of 1991

SECTION 268. Payment of Delinquent Taxes on Property Subject of Controversy. - In any action involving the ownership or possession of, or succession to, real property, the court may, motu proprio or upon representation of the provincial, city, or municipal treasurer or his deputy, award such ownership, possession, or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action. SECTION 269. Treasurer to Certify Delinquencies Remaining Uncollected. - The provincial, city or municipal treasurer or his deputy shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-payment, and shall submit the same to the sanggunian concerned on or before the thirty-first (31st) of December of the year immediately succeeding the year in which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herein. SECTION 270. Periods Within Which to Collect Real Property Taxes. - The basic real property tax and any other tax levied under this Title shall be collected within five (5) years from the date they become due. No action for the collection of the tax, whether administrative or judicial, shall be instituted after the expiration of such period. In case of fraud or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment. The period of prescription within which to collect shall be suspended for the time during which: (1) The local treasurer is legally prevented from collecting the tax; (2) The owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; and (3) The owner of the property or the person having legal interest therein is out of the country or otherwise cannot be located. CHAPTER 7. - Disposition of Proceeds SECTION 271. Distribution of Proceeds. - The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction, in accordance with the provisions of this Title, by the province or city or a municipality within the Metropolitan Manila Area shall be distributed as follows: (a) In the case of provinces: (1) Province - Thirty-five percent (35%) shall accrue to the general fund; (2) Municipality - Forty percent (40%) to the general fund of the municipality where the property is located; and (3) Barangay - Twenty-five percent (25%) shall accrue to the barangay where the property is located. (b) In the case of cities: (1) City - Seventy percent (70%) shall accrue to the general fund of the city; and (2) Barangay - Thirty percent (30%) shall be distributed among the component barangays of the cities where the property is located in the following manner: (i) Fifty percent (50%) shall accrue to the barangay where the property is located; (ii) Fifty percent (50%) shall accrue equally to all component barangays of the city; and (c) In the case of a municipality within the Metropolitan Manila Area: (1) Metropolitan Manila Authority - Thirty-five percent (35%) shall accrue to the general fund of the Authority; (2) Municipality - Thirty-five percent (35%) shall accrue to the general fund of the municipality where the property is located; (3) Barangays - Thirty percent (30%) shall be distributed among the component barangays of the municipality where the property is located in the following manner: (i) Fifty percent (50%) shall accrue to the barangay where the property is located; and (ii) Fifty percent (50%) shall accrue equally to all component barangays of the municipality. (d) The share of each barangay shall be released, without need of any further action, directly to the barangay treasurer on a quarterly basis within five (5) days after the end of each quarter and shall not be subject to any lien or holdback for whatever purpose. SECTION 272. Application of Proceeds of the Additional One Percent SEF Tax. - The proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, That, in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the local school board. SECTION 273. Proceeds of the Tax on Idle Lands. - The proceeds of the additional real property tax on idle lands shall accrue to the respective general fund of the province or city where the land is located. In the case of a municipality within the Metropolitan Manila Area, the proceeds shall accrue equally to the Metropolitan Manila Authority and the municipality where the land is located. SECTION 274. Proceeds of the Special Levy. - The proceeds of the special levy on lands benefited by public works, projects and other improvements shall accrue to the general fund of the local government unit which financed such public works, projects or other improvements. CHAPTER 8. - Special Provisions SECTION 275. General Assessment Revision; Expenses Incident Thereto. - The sanggunian of provinces, cities and municipalities within the Metropolitan Manila Area shall provide the necessary appropriations to defray the expenses incident to the general revision of real property assessment. All expenses incident to a general revision of real property assessments shall, by ordinance of the sangguniang panlalawigan, be apportioned between the province and the municipality on the basis of the taxable area of the municipality concerned. SECTION 276. Condonation or Reduction of Real Property Tax and Interest. - In case of a general failure of crops or substantial decrease in the price of agricultural or agribased products, or calamity in any province, city or municipality, the sanggunian concerned, by ordinance passed prior to the first (1st) day of January of any year and upon recommendation of the Local Disaster Coordinating Council,  may condone or reduce, wholly or partially, the taxes and interest thereon for the succeeding year or years in the city or municipality affected by the calamity. SECTION 277. Condonation or Reduction of Tax by the President of the Philippines. - The President of the Philippines may, when public interest so requires, condone or reduce the real property tax and interest for any year in any province or city or a municipality within the Metropolitan Manila Area.