Article 147p. 147

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

price: Provided, however, That the right of the delinquent

taxpayer or his representative or any person holding lien

or

claim

over

the

property

to further redeem said

property within one year from the date of acquisition by

the province or city, in the manner provided in Section

seventy- eight hereof; and, Provided, further That if the

treasurer has entered into a contract for the lease of the

property

in

the

meantime,

any

repurchase

made

hereunder shall be subject to such contract.

Section 82. Collection of real property tax through the

courts. The delinquent real property tax shall constitute a

lawful indebtedness of the taxpayer to the province or city

and collection of the tax may be enforced by civil action

in any court of competent jurisdiction. The civil action

shall be filed by the Provincial or City fiscal within fifteen

days

after

receipt

of

the

statement of delinquency

certified to by the provincial or city treasurer. This remedy

shall be in addition to all other remedies provided by law.

Section 83. Suits assailing validity of tax sale. No court

shall entertain any suit assailing the validity of a tax sale of

real estate under this Chapter until the taxpayer shall

have paid into court the amount for which the real

property was sold, together with interests of twenty per

centum per annum upon that sum from the date of sale

to the time of instituting suit. The money so paid into

court shall belong to the purchaser at the tax sale if the

deed is declared invalid, but shall be returned to the

depositor if the action fails.

Neither shall any court declare a sale invalid by reason of

irregularities

or

informalities

in

the

proceedings

committed by the officer charged with the duty of

making sale, or by reason of failure by him to perform his

duties

within

the

time

herein

specified

for

their

performance, unless it shall have been proven that such

irregularities, informalities or failure have impaired the

substantial rights of the taxpayer.

Section 84. Payment of delinquent taxes on property

subject of controversy. In any suit involving the ownership

or possession of, or succession to, real property, the court

shall, on its own motion or upon representation of the

provincial, city or municipal treasurer or his deputy,

condition the award of such ownership, possession or

succession to any party to the controversy upon the

payment to the court of the taxes and penalties due on

the property and all the costs that may have accrued to

the treasurer by reason of his representation.

Section 85. Treasurer to certify delinquencies Remaining

uncollected The provincial, city or municipal treasurer

shall prepare a certified list of all real property tax

delinquencies remaining uncollected or unsatisfied for at

least one year in his jurisdiction, and a statement of the

reason

or

reasons

for

such

non-collection

or

non-satisfaction,

and

shall

submit

the

same to the

Secretary of Finance on or before December thirty-first of

the year immediately succeeding that in which the

delinquencies have occurred with a request for assistance

in

the

enforcement

of

the

remedies

for

collection

provided hereunder.

CHAPTER VII DISPOSITION OF PROCEEDS

Section 86. Distribution of proceeds. (a) The proceeds of

the real property tax, except as otherwise provided in this

Code, shall accrue to the province, city or municipality

where the property subject to the tax is situated and shall

be applied by the respective local government unit for its

own use and benefit.

(b) Barangay shares in real property tax collections.

Beginning January 1, 1978 and thereafter, the annual

shares of the barangays in the basic real property tax

collections shall be as follows:

(1) Ten per cent of the total annual collections of the

province

and

the

municipality

shall

accrue

to

the

barangay where the property subject to the tax is located.

(Amending Section 86, Paragraph (b) of Presidential

Decree Numbered Four Hundred Sixty Four, Otherwise

Known as the Real Property Tax Code, Presidential

Decree No. 1230, [November 4, 1977])

(2) In the case of the city, ten per cent of the collections of

the tax shall likewise accrue to the barrio where the

property is situated.

Thirty per cent of the barrio shares herein referred to may

be spent for salaries or per diems of the barrio officials

and other administrative expenses, while the remaining

seventy

per

cent

shall

be

utilized

for

development

projects approved by the Secretary of Local Government

and Community Development or by such committee

created, or representatives designated, by him.

Section 87. Application of proceeds. (a) The proceeds of

the real property tax pertaining to the city and to the

municipality

shall

accrue entirely to their respective

general funds. In the case of the province, one-fourth

thereof shall accrue to its road and bridge fund and the

remaining three-fourths, to its general fund.

(b)

The entire proceeds of the additional one per cent

real property tax levied for the Special Education Fund

created under Republic Act No. 5447 collected in the

province

or

city

on

real

property

situated

in

their

respective territorial jurisdictions shall be distributed as

follows:

(1) Collections in the provinces: Fifty-five per cent shall

accrue to the municipality where the property subject to

the tax is situated; twenty-five per cent shall accrue to the

province; and twenty per cent shall be remitted to the

Treasurer of the Philippines.

(2)

Collections

in

the

cities

and

in

the

cities

and

municipalities of Metro Manila: Eighty percent shall be

retained by cities; including cities and municipalities of

Metro Manila, and twenty per cent shall be remitted to

the Treasurer of the Philippines.

(Amending

Sections

41

and 87 of P.D. No. 464 As

Amended (Real Property Tax Code), Presidential Decree

No. 1913, [March 29, 1984])

However, any increase in the shares of provinces, cities

and municipalities from said additional tax accruing to

their respective local school boards commencing with

fiscal year 1973-74 over what has been actually realized

during the fiscal year 1971-72 which, for purposes of this

Code, shall remain as the base year, shall be divided

equally

between

the

general

fund

and

the

special

education fund of the local government units concerned.

The Secretary of Finance may, however, at his discretion,

increase to not more than seventy-five per cent the

amount that shall accrue annually to the local general

fund.

(c) The proceeds of all delinquent taxes and penalties, as

well as the income realized from the use, lease or other

disposition of the real property acquired by the province

or

city at a public auction in accordance with the

provisions of this Code, and the proceeds of the sale of

the

delinquent

real

property

or

of

the

redemption

thereof, shall accrue to the province, city or municipality

in the same manner and proportions as if the tax or taxes

had been paid in regular course.

(d) The proceeds of the additional real property tax on idle

private lands shall accrue to the respective general funds

of the province, city and municipality where the land

subject to the tax is situated.

(e)

The

provisions

of

existing

laws

to

the

contrary

notwithstanding the proceeds of the Special Education

Fund accruing to the local governments may be used for

the

salary

adjustment

of

teachers

of

the

national

government,

in

addition

to

the

other

purposes

mentioned in Section 1 of Republic Act No. 5447, as

amended. (Amending Sections 41 and 87 of P.D. No. 464

As

Amended

(Real

Property

Tax Code), Presidential

Decree No. 1913, [March 29, 1984])

© Compiled by RGL

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