Civil Remedies for Collection of Revenues

DISTRAINT OF PERSONAL PROPERTY PROCEDURE:

FAILURE TO PAY TAXES WITHIN THE PRESCRIBED PERIOD - ISSUANCE
OF CERTIFICATE NOTICE SEIZURE ACCOUNTING
NOTICE/PUBLICATION SALE DISPOSITION OF PROCEEDS
Failure to pay Upon failure of the person owing any local tax, fee, or charge to pay
the same at the time required, x x x
Certificate - x x x the local treasurer or his deputy shall issue a duly authenticated
certificate based upon the records of his office showing the fact of delinquency and the
amounts of the tax, fee, or charge and penalty due. Such certificate shall serve as
sufficient warrant for the distraint of personal property aforementioned, subject to the
taxpayer's right to claim exemption under the provisions of existing laws. x x x
Seizure x x x the local treasurer or his deputy may, upon written notice, seize or
confiscate any personal property belonging to that person or any personal property
subject to the lien in sufficient quantity to satisfy the tax, fee, or charge in question,
together with any increment thereto incident to delinquency and the expenses of
seizure. x x x
Accounting The officer executing the distraint shall make or cause to be made an
account of the goods, chattels or effects distrained, x x x
Notice and Publication NOTICE- x x x a copy of which signed by himself shall
be left either with the owner or person from whose possession the goods, chattels or
effects are taken, or at the dwelling or place or business of that person and with
someone of suitable age and discretion, to which list shall be added a statement of the
sum demanded and a note of the time and place of sale. POSTING/PUBLICATIONThe officer shall forthwith cause a notification to be exhibited in not less than three (3)
public and conspicuous places in the territory of the local government unit where the
distraint is made, specifying the time and place of sale, and the articles distrained. x x x
One place for the posting of the notice shall be at the office of the chief executive of the
local government unit in which the property is distrained.
Procedure of Sale- x x x The time of sale shall not be less than twenty (20) days after
the notice to the owner or possessor of the property as above specified and the
publication or posting of the notice. x x x
Procedure of sale - At the time and place fixed in the notice, the officer conducting the
sale shall sell the goods or effects so distrained at public auction to the highest bidder for
cash. Within five (5) days after the sale, the local treasurer shall make a report of the
proceedings in writing to the local chief executive concerned.
Should the property distrained be not disposed of within one hundred and twenty (120)
days from the date of distraint, the same shall be considered as sold to the local
government unit concerned for the amount of the assessment made thereon by the
Committee on Appraisal and to the extent of the same amount, the tax delinquencies
shall be cancelled.
Said Committee on Appraisal shall be composed of the city or municipal treasurer as
chairman, with a representative of the Commission on Audit and the city or municipal
assessor as members.
Disposition of proceeds - The proceeds of the sale shall be applied to satisfy the tax,
including the surcharges, interest, and other penalties incident to delinquency, and the
expenses of the distraint and sale. The balance over and above what is required to pay
the entire claim shall be returned to the owner of the property sold. The expenses
chargeable upon the seizure and sale shall embrace only the actual expenses of seizure
and preservation of the property pending the sale, and no charge shall be imposed for

the services of the local officer or his deputy. Where the proceeds of the sale are
insufficient to satisfy the claim, other property may, in like manner, be distrained until
the full amount due, including all expenses, is collected.
EXCEPT- Release of distrained property upon payment prior to sale - If at
any time prior to the consummation of the sale, all the proper charges are paid to the
officer conducting the sale, the goods or effects distrained shall be restored to the owner.
LEVY ON REAL PROPERTY
FAILURE TO PAY TAXES WITHIN THE TIME PRESCRIBED- CERTIFCATELEVY ADVERTISEMENT- SALE CERTIFICATE OF SALE
REDEMPTION CERTIFICATE OF REDEMPTION IF NO REDEMPTION,
FINAL DEED OF SALE
FAILURE TO PAY TAXES WITHIN THE TIME PRESCRIBED x x x After the
expiration of the time required to pay the delinquent tax, fee, or charge, x x x
CERTIFICATE The provincial, city or municipal treasurer, as the case may be, shall
prepare a duly authenticated certificate showing the name of the taxpayer and the
amount of the tax, fee, or charge, and penalty due from him. Said certificate shall
operate with the force of a legal execution throughout the Philippines.
LEVY x x x Levy shall be effected by writing upon said certificate the description of
the property upon which levy is made. At the same time, written notice of the levy shall
be mailed to or served upon the assessor and the Register of Deeds of the province or
city where the property is located who shall annotate the levy on the tax declaration and
certificate of title of the property, respectively, and the delinquent taxpayer or, if he be
absent from the Philippines, to his agent or the manager of the business in respect to
which the liability arose, or if there be none, to the occupant of the property in
question.
In case the levy on real property is not issued before or simultaneously with the warrant
of distraint on personal property, and the personal property of the taxpayer is not
sufficient to satisfy his delinquency, the provincial, city or municipal treasurer, as the
case may be, shall within thirty (30) days after execution of the distraint, proceed with
the levy on the taxpayer's real property.
A report on any levy shall, within ten (10) days after receipt of the warrant, be submitted
by the levying officer to the sanggunian concerned.
ADVERTISEMENT- x x x Advertisement and Sale. - Within thirty (30) days after
the levy, the local treasurer shall proceed to publicly advertise for sale or auction the
property or a usable portion thereof as may be necessary to satisfy the claim and cost of
sale; and such advertisement shall cover a period of at least thirty (30) days. It shall be
effected by posting a notice at the main entrance of the municipal building or city hall,
and in a public and conspicuous place in the barangay where the real property is located,
and by publication once a week for three (3) weeks in a newspaper of general circulation
in the province, city or municipality where the property is located. The advertisement
shall contain the amount of taxes, fees or charges, and penalties due thereon, and the
time and place of sale, the name of the taxpayer against whom the taxes, fees, or charges
are levied, and a short description of the property to be sold. x x x
SALE- If he fails to do so, the sale shall proceed and shall be held either at the main
entrance of the provincial, city or municipal building, or on the property to be sold, or at
any other place as determined by the local treasurer conducting the sale and specified in
the notice of sale.
Within thirty (30) days after the sale, the local treasurer or his deputy shall make a
report of the sale to the sanggunian concerned, and which shall form part of his records.
x x x

CERTIFICATE OF SALE x x x After consultation with the sanggunian, the local

treasurer shall make and deliver to the purchaser a certificate of sale, showing the
proceeding of the sale, describing the property sold, stating the name of the purchaser
and setting out the exact amount of all taxes, fees, charges, and related surcharges,
interests, or penalties: Provided, however, That any excess in the proceeds of the sale
over the claim and cost of sales shall be turned over to the owner of the property.
The local treasurer may, by ordinance duly approved, advance an amount sufficient to
defray the costs of collection by means of the remedies provided for in this Title,
including the preservation or transportation in case of personal property, and the
advertisement and subsequent sale, in cases of personal and real property including
improvements thereon.
REDEMPTION Redemption of Property Sold. - Within one (1) year from the date
of sale, the delinquent taxpayer or his representative shall have the right to redeem the
property upon payment to the local treasurer of the total amount of taxes, fees, or
charges, and related surcharges, interests or penalties from the date of delinquency to
the date of sale, plus interest of not more than two percent (2%) per month on the
purchase price from the date of purchase to the date of redemption. x x x
CERTIFICATE OF REDEMPTION- x x x Such payment shall invalidate the
certificate of sale issued to the purchaser and the owner shall be entitled to a certificate
of redemption from the provincial, city or municipal treasurer or his deputy.
The provincial, city or municipal treasurer or his deputy, upon surrender by the
purchaser of the certificate of sale previously issued to him, shall forthwith return to the
latter the entire purchase price paid by him plus the interest of not more than two
percent (2%) per month herein provided for, the portion of the cost of sale and other
legitimate expenses incurred by him, and said property thereafter shall be free from the
lien of such taxes, fees, or charges, related surcharges, interests, and penalties.
The owner shall not, however, be deprived of the possession of said property and shall
be entitled to the rentals and other income thereof until the expiration of the time
allowed for its redemption.
IF NO REDEMPTION- Final Deed to Purchaser. - In case the taxpayer fails to
redeem the property as provided herein, the local treasurer shall execute a deed
conveying to the purchaser so much of the property as has been sold, free from liens of
any taxes, fees, charges, related surcharges, interests, and penalties. The deed shall
succinctly recite all the proceedings upon which the validity of the sale depends.
OR Purchase of Property By the Local Government Units for Want of
Bidder. - In case there is no bidder for the real property advertised for sale as provided
herein, or if the highest bid is for an amount insufficient to pay the taxes, fees, or
charges, related surcharges, interests, penalties and costs, the local treasurer conducting
the sale shall purchase the property in behalf of the local government unit concerned to
satisfy the claim and within two (2) days thereafter shall make a report of his
proceedings which shall be reflected upon the records of his office. It shall be the duty of
the Registrar of Deeds concerned upon registration with his office of any such
declaration of forfeiture to transfer the title of the forfeited property to the local
government unit concerned without the necessity of an order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or any of his
representative, may redeem the property by paying to the local treasurer the full amount
of the taxes, fees, charges, and related surcharges, interests, or penalties, and the costs
of sale. If the property is not redeemed as provided herein, the ownership thereof shall
be fully vested on the local government unit concerned.
Resale of Real Estate Taken for Taxes, Fees, or Charges. - The sanggunian concerned
may, by ordinance duly approved, and upon notice of not less than twenty (20) days, sell
and dispose of the real property acquired under the preceding section at public auction.
The proceeds of the sale shall accrue to the general fund of the local government unit
concerned.

EXCEPT x x x At any time before the date fixed for the sale, the taxpayer may stay
they proceedings by paying the taxes, fees, charges, penalties and interests. x x x
EXEMPTION IN EITHER OF THE ADMINISTRATIVE REMEDIES- Section
185. Personal Property Exempt from Distraint or Levy. - The following property shall
be exempt from distraint and the levy, attachment or execution thereof for delinquency
in the payment of any local tax, fee or charge, including the related surcharge and
interest:
(a) Tools and implements necessarily used by the delinquent taxpayer in his trade
or employment;
(b) One (1) horse, cow, carabao, 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, and that of all his family;
(d) Household furniture and utensils necessary for housekeeping and used for
that purpose by the delinquent taxpayer, such as he may select, of a value not
exceeding Ten thousand pesos (P10,000.00);
(e) Provisions, including crops, actually provided for individual or family use
sufficient for four (4) months;
(f) The professional libraries of doctors, engineers, lawyers and judges;
(g) One fishing boat and net, not exceeding the total value of Ten thousand pesos
(P10,000.00), by the lawful use of which a fisherman earns his livelihood; and
(h) Any material or article forming part of a house or improvement of any real
property.
TAXPAYERS REMEDIES
PROTEST BY MEANS OF APPEAL TO THE SECRETARY OF JUSTICE
x x x Provided, further, That any question on the constitutionality or legality of tax
ordinances or revenue measures may be raised on appeal within thirty (30) days from
the effectivity thereof to the Secretary of Justice who shall render a decision within sixty
(60) days from the date of receipt of the appeal: Provided, however, That such appeal
shall not have the effect of suspending the effectivity of the ordinance and the accrual
and payment of the tax, fee, or charge levied therein: x x x
PROTEST AGAINST ASSESTMENT- Protest of Assessment. - When the local
treasurer or his duly authorized representative finds that correct taxes, fees, or charges
have not been paid, he shall issue a notice of assessment stating the nature of the tax,
fee, or charge, the amount of deficiency, the surcharges, interests and penalties. Within
sixty (60) days from the receipt of the notice of assessment, the taxpayer may file a
written protest with the local treasurer contesting the assessment; otherwise, the
assessment shall become final and executory. The local treasurer shall decide the protest
within sixty (60) days from the time of its filing. If the local treasurer finds the protest to
be wholly or partly meritorious, he shall issue a notice cancelling wholly or partially the
assessment. However, if the local treasurer finds the assessment to be wholly or partly
correct, he shall deny the protest wholly or partly with notice to the taxpayer. x x x
CLAIM FOR REFUND AND TAX CREDIT- Claim for Refund of Tax Credit. - No
case or proceeding shall be maintained in any court for the recovery of any tax, fee, or
charge erroneously or illegally collected until a written claim for refund or credit has
been filed with the local treasurer. No case or proceeding shall be entertained in any
court after the expiration of two (2) years from the date of the payment of such tax, fee,
or charge, or from the date the taxpayer is entitled to a refund or credit.

APPEALS TO COURT:
PROTEST BY MEANS OF APPEAL TO THE SECRETARY OF JUSTICE
x x x Provided, finally, That within thirty (30) days after receipt of the decision or the
lapse of the sixty-day period without the Secretary of Justice acting upon the appeal, the
aggrieved party may file appropriate proceedings with a court of competent
jurisdiction.
PROTEST AGAINST ASSESTMENTx x x The taxpayer shall have thirty (30) days from the receipt of the denial of the
protest or from the lapse of the sixty (60) day period prescribed herein within which to
appeal with the court of competent jurisdiction otherwise the assessment becomes
conclusive and unappealable.