Power to Levy — DILG Region I opinion letter

ktgiublit ,rl tlrr l,hiligrincs UI-PAHIMbNI OF THE IN'IEHIOH AND LOCAI GOVERNMENT kt:(;toNAt. (rl'FlcE \o. t. sAN I't:RNANDo (' 'Y (t,A UNION) 'Ii'1. Nos. lllill-3 I-ll(rl lllilt-J"t-|{)I t88-22-tl9: 8tlll-22-94 Fa\ No. (l)72i lllttt-2 l-l)ll February 27, 2OI2 JEREMY JESUS DP. BUENO III Municipal Mayor Santa, llocos sur ffi,,, Dear Mayor Bueno: This is in relation to your letter seeking the Department clarification regarding the following issues, which we hereunder quoted, to wit: 1. Whether or not our interpretation of section 256 and 258 is correct, or whether or not the remedial measures of levy or judicial action is available to treasurers of the municipalities outside of the Metro Manila Area? 2. Can the right to avail the remedis of lew or judicial action be delegated by the Provincial Treasurer to the Municipal Treasurer? 3. ls the failure of the Provincial Treasurer to avail the remedies of collection of delinquent realty tax sufficient ground for the filling of a criminal or an administrative case? Thisofficeopinesthatmunicipa|treasurersofLGUsoutsideMetroMani|ahasnopowerto|evyrea| property taxes (RPT) since it is expressly stated in Scc' 258 of the Local Government Code of 1991' Real Property Taxes are direct taxes imposed on the privilege to use real property such as land' building, machinery and other improvements unless specifically exempted' (Provincc of Nucva Ecija vs. lmperial Mining Go', tnc' G.n. No. 59463, Nov'mber 19' 1982)' In Scc' 199 of the Local Governentcode(LGc)oflggl,thebasisofassessmentofrea|propertytaxationistheactua|use even if the user is not the owner. under sec. 258 of the LGc of 199! the Local Government units (LGUs) authorized to levy the taxes are the provinces, qties and Municipalities within Metro Manila. Municipalities outside Metro Mani|a don,t have such power because it is the Provinces that have such po,ver. The Provinces, Cities and Municipalities within Metro Manila do not only have the power to levy RPT but also authorized to fix tax rates. The power to fix tax rates on RPT doiiot extend to Municipalities outside Metro Manila because the only local bodies authorized to fix tax rates are the Provincial board in the case of Province and the City Council in the case of a city pursuant to Scc' 233 ot the LGC of 1991' The collection of RPT and the enforcement of the remedies in relation thereto, as provided in sec. 247 ot the LGc of 1991, shall be the responsibility of the city or municipal treasurer concerned. The provincial, city or municipal treasurer shall immediately cause a notice of delinquency in case the collection of RPT becomes delinquent' (Scc. 254 of thc LGC of 1991)' tn view of the above discussion, it is the standing of this office that local treasurers (LT) of MuniciDalities outside Metro Manila cannot lew RPT. lt is the Provincial Treasurer that has the