Real Tax Cases - CAPPAL

7/25/2019 Real Tax Cases - CAPPAL

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REAL PROPERTY TAXATION I. Preliminary Matters (g) (iv) to (ix) asesAtty. !o""y Lo#$

THIRD DIVISION

[G.R. No. 90639. February 21, 1990.]

TESTATE ESTATE OF ONORDIA T. !I", Plaintiff-Appellant, #. IT$ OF "ANI!A, %ES&S I. A!!E%A, '()'* +aa+'-y a* '-y Trea*urer o "a('/a, NIO!AS ATII!, '( )'* +aa+'-y a* '-y A**e**or o "a('/a,

a(or GOVERN"ENT SERVIE INS&RANE S$STE", Defendants-Appellees .

"e/u'ae* . De !eo(, or Plaintiff-Appellant.

S$!!A4&S

1. TAXATION; REAL ESTATE TAXATION; UNPAID TAX ATTACHES TO PROPERTY CHARGEABLE AGAINST PERSONWHO HAD ACTUAL OR BENEFICIAL USE AND POSSESSION. In real esae a!a"#n$ %e &n'a"( a! aa)%es #%e 'r#'er* an( "s )%ar+ea,le a+a"ns %e a!a,le 'ers#n -%# %a( a)&al #r ,ene")"al &se an( '#ssess"#n # "re+ar(less # -%e%er #r n# %e "s %e #-ner. /Se)"#ns 0/a an( 12 # P.D. N#. 343; Pr#5"n)e # N&e5a E)"6a 5.I7'er"al 8"n"n+ C#.$ In).$ 119 SCRA 40: 129:E =URISDICTION TO TRY CASES IN>OL>ING RIGHT TORECO>ER SU8S OF 8ONEY. T%e C#&r r&les %a %e 'la"n"?a''ellan )#rre)l* "le( %e a)"#n #rre&n(@re"7,&rse7en -"% %e l#-er )#&r as " "s %e )#&rs -%")% %a5e 6&r"s(")"#n # r* )ases "n5#l5"n+ %e

r"+% # re)#5er s&7s # 7#ne*.

0. TAXATION; REAL PROPERTY TAX CODE; SECTION 0; PERTAINS TO AD8INISTRATI>E ACT OF LISTING AND>ALUATION OF PROPERTY FOR PURPOSES OF REAL ESTATE TAXATION. Se)"#n 0 # %e Real Pr#'er* Ta! C#(e"s n# a''l")a,le ,e)a&se -%a "s &es"#ne( "s %e "7'#s""#n # %e a! assesse( an( -%# s%#&l( s%#&l(er %e,&r(en # %e a!. T%ere "s n# ("s'&e #5er %e a7#&n assesse( #n %e 'r#'er"es #r a! '&r'#ses. Se)"#n 0'era"ns # %e a(7"n"sra"5e a) # l"s"n+ an( 5al&a"#n # %e 'r#'er* #r '&r'#ses # real esae a!a"#n.

3. ID.; ID.; COURT SHALL ENTERTAIN SUIT ASSAILING >ALIDITY OF TAX ASSESSED AFTER TAXPAYER SHALL HA>EPAID UNDER PROTEST. In &r%er s&''#r # %e )#n)l&s"#n %a %e l#-er )#&r %as 6&r"s(")"#n # r* %e "nsan)ase$ -e n#e Se)"#n 43 # %e Real Pr#'er* Ta! C#(e -%")% 'r#5"(es %a a )#&r s%all enera"n a s&" assa"l"n+%e 5al"("* # a a! assesse( aer %e a!'a*er s%all %a5e 'a"( &n(er 'r#es.

. ID.; TAX I8POSITION; NO RIGHT TO RECO>ER TAX PAID IF >ALID. T%e "ss&e #n %e e!"sen)e #r n#n?e!"sen)e # %e a''ellans r"+% # re)#5er %e a7#&ns 'a"( %"n+es #n %e ,as") &es"#n # %e 5al"("* # %e a!

"7'#s""#n. I %e "7'#s""#n "s 5al"( an( "n a))#r(an)e -"% la-$ %en %ere "s n# r"+% # re)#5er. O%er-"se$ %ea7#&ns 'a"( 7&s ,e re&n(e( ,* %e res'#n(en C"* Treas&rer # 8an"la a)"n+ "n %"s #")"al )a'a)"*. /Se). 4:)IL LAW; SPECIAL CONTRACTS; SALES; CONTRACT IN INSTANT CASE$ A CONTRACT OF SALE WHILECONTRACT IN BUSUEGO CASE$ A CONTRACT TO SELL; CASE AT BAR. T%e "nsan )ase (#es n# 'resen as"7"lar )#nra)&al s"'&la"#n. T%e )#nra) %ere -%")% "s alle+e( # "n)l&(e %e )#n(""#n %a %e ,&*er s%alls%#&l(er %e a!es "s a C#nra) # Sale. In C"* # Ba+&"# 5. B&s&e+#$ %ere -as 7erel* a C#nra) # Sell #r %e(&ra"#n # -%")% %e 'ar* -%# s%all ,e l"a,le #r %e a!es a,#& # ,e (&e "s %e ,&*er as 'er a+ree7en. In %e)ase a ,ar$ -%a -as ass&7e( ,* %e 5en(ee -as %e l"a,"l"* #r a!es an( #%er e!'enses rela"5e # %ee!e)&"#n an(@#r "7'le7ena"#n # %e Dee( # A,s#l&e Sale "n)l&("n+ a7#n+ #%ers$ (#)&7ena"#n$(#)&7enar* an( s)"en)e sa7's$ e!'enses #r re+"sra"#n an( ranser # "les . . . T%"s )la&se -as s"'&lae( #r%e '&r'#se # )lar"*"n+ -%")% # %e 'ar"es s%#&l( ,ear %e )#ss # e!e)&"#n an( "7'le7ena"#n # %e sale an(# )#7'l* -"% Ar")le 139 # %e C"5"l C#(e.

. TAXATION; REAL ESTATE TAXATION; ASSU8PTION OF PARTIES IN BUSUEGO CASE AND INSTANT CASE OF

LIABILITY FOR REAL ESTATE TAXES$ DISTINGUISHED. In %e B&s&e+# )ase$ %e ass&7'"#n ,* %e 5en(ee #%e l"a,"l"* #r real esae a!es 'r#s'e)"5el* (&e -as "n %ar7#n* -"% %e a! '#l")* %a %e &ser # %e 'r#'er*,ears %e a!. In %e "nsan )ase$ %e "ner'rea"#n %a %e 'la"n"?a''ellan ass&7e( a l"a,"l"* #r #5er(&e realesae a!es #r %e 'er"#(s 'r"#r # %e )#nra) # sale "s "n)#n+r&en -"% %e sa"( '#l")* ,e)a&se %ere -as n#"77e("ae ranser # '#ssess"#n # %e 'r#'er"es 're5"#&s # &ll 'a*7en # %e re'&r)%ase 'r")e.

9. ID.; REAL PROPERTY TAX CODE; GSIS EXE8PT FRO8 REAL PROPERTY TAX; GSIS NOT LIABLE TO PAY REALPROPERTY TAX ON PUBLIC LAND LEASED TO OTHER PERSONS. T%e C#&r r&les$ %#-e5er$ %a %e 'la"n"?a''ellan "s n# en"le( # a re"7,&rse7en r#7 %e res'#n(en GSIS ,e)a&se /1 %e GSIS "s e!e7' r#7'a*7en # %e real 'r#'er* a! &n(er Se). 00 # %e Re5"se( C%arer # %e GSIS; an( /: %e a! s%#&l( ,e


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,ase( #n a)&al &se # %e 'r#'er*. Se)"#n 3 # %e Real Pr#'er* Ta! C#(e s&''#rs %e 5"e- %a n# e5en%e GSIS "s l"a,le # 'a* real 'r#'er* a! #n '&,l") lan( lease( # #%er 'ers#ns.

D E I S I O N

G&TIERRE5, %R.,J.

T%"s "s an a''eal r#7 %e (e)"s"#n # %e Re+"#nal Tr"al C#&r # 8an"la$ Bran)% :2 ("s7"ss"n+ a )#7'la"n #r as&7 # 7#ne* an(@#r re)#5er* # real esae a!es 'a"( &n(er 'r#es -%")% -as )er""e( an( ele5ae( # %"sC#&r ,* %e C#&r # A''eals as a )ase "n5#l5"n+ '&re &es"#ns # la-.

On Fe,r&ar* 10$ 1242$ %e lae C#n)#r("a L"7 #,a"ne( a real esae l#an r#7 %e (een(an?a''ellee G#5ern7enSer5")e Ins&ran)e S*se7 /GSIS "n %e a7#&n # P9$399.3$ se)&re( ,* a 7#r+a+e )#ns"&e( #n -# /:'ar)els # lan( #r7erl* )#5ere( ,* Transer Cer"")aes # T"le N#s. 43 an( 404 /laer )%an+e( # TCT N#s.1:19 an( 1:12 re+"sere( "n 8an"la -"% a %ree?s#r* ,&"l("n+ %ere#n an( l#)ae( #n N#. 91 N")an#r Re*esS. /#r7erl* 8#ra*a$ Sa7'al#)$ 8an"la. W%en L"7 a"le( # 'a* %e l#an$ %e 7#r+a+e -as e!ra6&(")"all*#re)l#se( an( %e s&,6e) 'r#'er"es s#l( a '&,l") a&)"#n. T%e GSIS$ ,e"n+ %e %"+%es ,"((er$ ,#&+% %e'r#'er"es. U'#n L"7s a"l&re # e!er)"se %er r"+% # re(e7'"#n$ %e "les # %e 'r#'er"es -ere )#ns#l"(ae( "na5#r # %e GSIS "n 12.

H#-e5er$ '&rs&an # Res#l&"#n N#. 199 # %e B#ar( # Tr&sees # %e GSIS (ae( 8ar)% :2$ 122$ %e esae #L"7$ %r#&+% Ernes"na Cr"s#l#+# =#se /%e a(7"n"srar"! -as all#-e( # re'&r)%ase %e #re)l#se( 'r#'er"es. OnA'r"l 11$ 122$ a Dee( # A,s#l&e Sale -as e!e)&e(. /E!%"," B$ Ta,le # E!%","s$ ''. 0?

T%e (een(an C"* Treas&rer # 8an"la re&"re( %e 'la"n"?a''ellan # 'a* %e real esae a!es (&e #n %e'r#'er"es #r %e *ears 12$ 129 an( %e "rs &arer # 122 "n %e a7#&n # P4$24.02$ ,e#re %e "les)#&l( ,e ranserre( # %e 'la"n"?a''ellan. T%e laer 'a"( %e a7#&n &n(er 'r#es.

On =&l* 11$ 122$ %e 'la"n"?a''ellans )#&nsel sen a (e7an( leer re&es"n+ %e GSIS # re"7,&rse %e a!es'a"( &n(er 'r#es. T%e GSIS re&se(.)%anr#,les 5"r&al la-l",rar*

On Se'e7,er $ 122$ a (e7an( leer -as sen # %e C"* Treas&rer # 8an"la # re&n( %e a7#&n ,& %elaer als# re&se(.

On 8ar)% 13$ 129$ %e 'la"n" "le( an a)"#n ,e#re %e r"al )#&r #r a s&7 # 7#ne* #r %e re&n( #r

re"7,&rse7en # %e real esae a!es 'a"( &n(er 'r#es.

D&r"n+ %e 'en(en)* # %e )ase$ %e 'la"n"?a''ellan a(7"e( %a %e #re)l#se( 'r#'er"es %a( ,een s#l($%r#&+% %e a(7"n"srar"!$ # an#%er 'ers#n. /:n( 'ar. # Pla"n"s 8an"esa"#n (ae( De)e7,er :1$ 1291$Re)#r(s$ '. 1; TSN$ 8ar)% 3$ 129:$ '. 0

Aer r"al$ %e l#-er )#&r ("s7"sse( %e )#7'la"n #r la) # 6&r"s(")"#n. I r&le( %a %e )ase "n5#l5es a'r#ese( a)"#n # %e C"* Assess#r -%")% s%#&l( %a5e ,een "le( ,e#re %e L#)al B#ar( # Assess7en A''eals #8an"la /)""n+ Se)"#n 0 # %e Real Pr#'er* Ta! C#(e P.D. N#. 343


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H#-e5er$ %e real esae a!es laer assesse( #n %e sa"( 'r#'er"es #r %e *ears 12$ 129 an( %e "rs &arer# 122 -ere )%ar+e( a+a"ns %e 'la"n"?a''ellan e5en " %e laer -as n# %e ,ene")"al &ser # %e 'ar)els #lan(.

In real esae a!a"#n$ %e &n'a"( a! aa)%es # %e 'r#'er* an( "s )%ar+ea,le a+a"ns %e a!a,le 'ers#n -%#%a( a)&al #r ,ene")"al &se an( '#ssess"#n # " re+ar(less # -%e%er #r n# %e "s %e #-ner. /Se)"#ns 0/a an(12 # P.D. N#. 343; Pr#5"n)e # N&e5a E)"6a 5. I7'er"al 8"n"n+ C#.$ In).$ 119 SCRA 40: 129:er,al 'r#es s%all ,e )#n"r7e( "n -r""n+$ -"% asae7en # %e +r#&n($ %ere#r$ -"%"n %"r* (a*s. T%e a! 7a* ,e 'a"( &n(er 'r#es$ an( "n s&)% )ase " s%all,e %e (&* # %e Pr#5"n)"al$ C"* #r 8&n")"'al Treas&rers # ann#ae %e +r#&n( #r +r#&n(s %ere#r #n %ere)e"'.

/, In )ase # 'a*7ens 7a(e &n(er 'r#es$ %e a7#&n #r '#r"#n # %e a! )#nese( s%all ,e %el( "n r&s ,*%e reas&rer an( %e ("eren)e s%all ,e reae( as re5en&e.

/) In %e e5en %a %e 'r#es "s "nall* (e)"(e( "n a5#r # %e +#5ern7en$ %e a7#&n #r '#r"#n # %e a! %el(

"n r&s ,* %e reas&rer s%all a))r&e # %e re5en&e a))#&n$ ,& " %e 'r#es s%all ,e (e)"(e( "nall* "n a5#r #%e 'r#esan$ %e a7#&n #r '#r"#n # %e a! 'r#ese( a+a"ns 7a* e"%er ,e re&n(e( # %e 'r#esan #ra''l"e( as a! )re(" # an* #%er e!"s"n+ #r &&re a! l"a,"l"* # %e sa"( 'r#esan. /E7'%as"s S&''l"e(

T%e C#&r r&les %a %e 'la"n"?a''ellan )#rre)l* "le( %e a)"#n #r re&n(@re"7,&rse7en -"% %e l#-er )#&ras " "s %e )#&rs -%")% %a5e 6&r"s(")"#n # r* )ases "n5#l5"n+ %e r"+% # re)#5er s&7s # 7#ne*.

Se)"#n 0 # %e Real Pr#'er* Ta! C#(e "s n# a''l")a,le ,e)a&se -%a "s &es"#ne( "s %e "7'#s""#n # %e a!assesse( an( -%# s%#&l( s%#&l(er %e ,&r(en # %e a!. T%ere "s n# ("s'&e #5er %e a7#&n assesse( #n %e'r#'er"es #r a! '&r'#ses. Se)"#n 0 'era"ns # %e a(7"n"sra"5e a) # l"s"n+ an( 5al&a"#n # %e 'r#'er* #r'&r'#ses # real esae a!a"#n. I 'r#5"(es6+))%anr#,les.)#7.'%

Se)"#n 0. L#)al B#ar( # Assess7en A''eals An* #-ner -%# "s n# sa"s"e( -"% %e a)"#n # %e 'r#5"n)"al#r )"* assess#r "n %e assess7en # %"s 'r#'er* 7a*$ -"%"n s"!* (a*s r#7 %e (ae # re)e"' ,* %"7 # %e-r"en n#")e # assess7en as 'r#5"(e( "n %"s C#(e$ a''eal # %e B#ar( # Assess7en A''eals # %e 'r#5"n)e#r )"*$ ,* "l"n+ -"% " a 'e""#n &n(er #a% &s"n+ %e #r7 'res)r",e( #r %e '&r'#se$ #+e%er -"% )#'"es # %e

a! (e)lara"#ns an( s&)% a"(a5" #r (#)&7ens s&,7"e( "n s&''#r # %e a''eal.)rala- 5"r&a1a- l",rar*

In &r%er s&''#r # %e )#n)l&s"#n %a %e l#-er )#&r %as 6&r"s(")"#n # r* %e "nsan )ase$ -e n#e Se)"#n 43# %e Real Pr#'er* Ta! C#(e -%")% 'r#5"(es %a a )#&r s%all enera"n a s&" assa"l"n+ %e 5al"("* # a a!assesse( aer %e a!'a*er s%all %a5e 'a"( &n(er 'r#es.

T%e "ss&e #n %e e!"sen)e #r n#n?e!"sen)e # %e a''ellans r"+% # re)#5er %e a7#&ns 'a"( %"n+es #n %e,as") &es"#n # %e 5al"("* # %e a! "7'#s""#n. I %e "7'#s""#n "s 5al"( an( "n a))#r(an)e -"% la-$ %en %ere"s n# r"+% # re)#5er. O%er-"se$ %e a7#&ns 'a"( 7&s ,e re&n(e( ,* %e res'#n(en C"* Treas&rer # 8an"laa)"n+ "n %"s #")"al )a'a)"*. /Se). 4: )


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rela"5e # %e e!e)&"#n an(@#r "7'le7ena"#n # %e Dee( # A,s#l&e Sale "n)l&("n+ a7#n+ #%ers$(#)&7ena"#n$ (#)&7enar* an( s)"en)e sa7's$ e!'enses #r re+"sra"#n an( ranser # "les . . . T%"s )la&se-as s"'&lae( #r %e '&r'#se # )lar"*"n+ -%")% # %e 'ar"es s%#&l( ,ear %e )#ss # e!e)&"#n an("7'le7ena"#n # %e sale an( # )#7'l* -"% Ar")le 139 # %e C"5"l C#(e -%")% saes6+))%anr#,les.)#7.'%

ART. 139 T%e e!'enses #r %e e!e)&"#n an( re+"sra"#n # %e sale s%all ,e ,#rne ,* %e 5en(#r$ &nless%ere "s a s"'&la"#n # %e )#nrar*.)rala- 5"r&a1a- l",rar*

8#re#5er$ %e a!es 7en"#ne( "n %e )la&se %ere reer # %#se ne)essar* # %e )#7'le"#n # %e sale an(a))r&"n+ aer %e 7a"n+ # s&)% sale #n A'r"l 11$ 122 s&)% as (#)&7enar* sa7' a! an( )a'"al +a"ns a!.

In %e B&s&e+# )ase$ %e ass&7'"#n ,* %e 5en(ee # %e l"a,"l"* #r real esae a!es 'r#s'e)"5el* (&e -as "n%ar7#n* -"% %e a! '#l")* %a %e &ser # %e 'r#'er* ,ears %e a!. In %e "nsan )ase$ %e "ner'rea"#n %a%e 'la"n"?a''ellan ass&7e( a l"a,"l"* #r #5er(&e real esae a!es #r %e 'er"#(s 'r"#r # %e )#nra) # sale "s"n)#n+r&en -"% %e sa"( '#l")* ,e)a&se %ere -as n# "77e("ae ranser # '#ssess"#n # %e 'r#'er"es 're5"#&s# &ll 'a*7en # %e re'&r)%ase 'r")e.

T%e a)s # %e )ase )#nsra"n &s # r&le %a %e 'la"n"?a''ellan "s n# l"a,le # 'a* %e real 'r#'er* a! (&e #r%e *ears 12$ 129 an( "rs &arer # 122. T%e )la&se "n %e Dee( # Sale )ann# ,e "ner'ree( # "n)l&(ea!es #r %e 'er"#(s 'r"#r # A'r"l 11$ 122$ %e (ae # re'&r)%ase.

T# "7'#se %e real 'r#'er* a! #n %e esae -%")% -as ne"%er %e #-ner n#r %e ,ene")"al &ser # %e 'r#'er*(&r"n+ %e (es"+nae( 'er"#(s -#&l( n# #nl* ,e )#nrar* # la- ,& als# &n6&s. I 'la"n"?a''ellan "nen(e( #

ass&7e %e l"a,"l"* #r real* a!es #r %e 'r"#r 'er"#(s$ %e )#nra) s%#&l( %a5e s'e)"")all* sae( real esaea!es (&e #r %e *ears 12$ 129 an( "rs &arer # 122. T%e 'a*7ens 7a(e ,* %e 'la"n"?a''ellan)ann# ,e )#nsr&e( # ,e an a(7"ss"#n # a a! l"a,"l"* s"n)e %e* -ere 'a"( &n(er 'r#es an( -ere (#ne #nl* "n)#7'l"an)e -"% #ne # %e re&"re7ens #r %e )#ns&77a"#n # %e sale as ("re)e( ,* %e C"* Treas&rer #8an"la.

Hen)e$ %e a! assesse( an( )#lle)e( r#7 %e 'la"n"?a''ellans "s n# 5al"( an( a re&n( ,* %e C"* +#5ern7en"s "n #r(er.

T%e C#&r r&les$ %#-e5er$ %a %e 'la"n"?a''ellan "s n# en"le( # a re"7,&rse7en r#7 %e res'#n(en GSIS,e)a&se /1 %e GSIS "s e!e7' r#7 'a*7en # %e real 'r#'er* a! &n(er Se). 00 # %e Re5"se( C%arer # %eGSIS; an( /: %e a! s%#&l( ,e ,ase( #n a)&al &se # %e 'r#'er*. Se)"#n 3 # %e Real Pr#'er* Ta! C#(es&''#rs %e 5"e- %a n# e5en %e GSIS "s l"a,le # 'a* real 'r#'er* a! #n '&,l") lan( lease( # #%er 'ers#ns.Se)"#n 3 'r#5"(es6+))%anr#,les.)#7.'%

Se). 3. E!e7'"#n r#7 Real Pr#'er* Ta!. T%e e!e7'"#n s%all ,e as #ll#-s)%anr#,1es 5"r&al 1a- l",rar*

/a Real 'r#'er* #-ne( ,* %e Re'&,l") # %e P%"l"''"nes #r an* # "s '#l"")al s&,("5"s"#ns an( an* +#5ern7en#-ne( )#r'#ra"#n s# e!e7' ,* "s )%arer Pr#5"(e($ %#-e5er$ T%a %"s e!e7'"#n s%all n# a''l* # real'r#'er* # %e a,#5ena7e( en""es %e ,ene")"al &se # -%")% %as ,een +rane($ #r )#ns"(era"#n #r #%er-"se$# a a!a,le 'ers#n.)rala- 5"r&a1a- l",rar*

In a)$ " %ere "s an*#ne l"a,le %e la- an( a''l")a,le 6&r"s'r&(en)e '#"n # %e lessees # lan( #-ne( ,* %e+#5ern7en?#-ne( an( )#nr#lle( )#r'#ra"#ns. /Pr#5"n)e # N&e5a E)"6a 5. I7'er"al 8"n"n+ C#.$ In).$ s&'ra In %"s)ase$ %e C#&r )an #nl* (e)lare %e n#n?l"a,"l"* # a r"+% # a re&n(. We )ann# r&le #n %e l"a,"l"* # %e lessees-%#se "(en""es are n# e5en )lear ,e)a&se %e* -ere ne5er "7'lea(e(.

T%e )#nen"#n # %e 'la"n"?a''ellan %a %e res'#n(en GSIS "s l"a,le # re"7,&rse %e a! ,e)a&se %e laeralle+e(l* a"le( # e!er)"se "s )la"7 # %e a!?e!e7'"#n 'r"5"le+e "s -"%#& 7er". T%e e!e7'"#n "s e!'l")"l*+rane( ,* la- an( nee( n# ,e a''l"e( #r.

Re+ar("n+ %e "ss&e #n %e e!"sen)e # %e 'ers#nal"* # s&e$ %e 'la"n"?a''ellan assers %a s"n)e " -as %e

#ne -%")% 'a"( &n(er 'r#es %e a7#&n # P4$24.02 as real 'r#'er* a!$ %en " "s %e real 'ar* "n "neres #s&e #r re&n(.)%anr#,les la-l",rar* re(na(

T%e l#-er )#&r$ n#"n+ %e ranser # %e "le # %e 'r#'er"es # a %"r( 'ers#n$ r&le( %a ass&7"n+ ar+&en(#%a %ere "s a r"+% # see re)#5er*$ %e s&,se&en sale 7&s %a5e "n)l&(e( %e a! an( as s&)% all %e )re("s"n)l&("n+ %e a!es %a -ere 'a"( -as /s") ranserre( alrea(* # %e ,&*er. I r&le( %a 'la"n"?a''ellan %a(n# 'ers#nal"* # s&e an( %e r"+% # a)"#n 7&s ,e ,e-een %e s&,se&en ,&*er an( %e 'la"n"?a''ellan. T%eC#&r "n(s %a %e a,#5e r&l"n+ an( %e a)s #n -%")% " "s ,ase( are n# s&")"enl* s&''#re( ,* %e re)#r(s #%e )ase. T%e e5"(en)e 7erel* s%#-s an a(7"ss"#n # a s&,se&en sale # %e 'r#'er"es ,* %e 'la"n"?a''ellan$n#%"n+ 7#re.


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WHEREFORE$ IN >IEW OF THE FOREGOING$ %e 6&(+7en a''eale( r#7 "s %ere,* RE>ERSED an( SET ASIDE. T%e(een(ans a''ellees C"* # 8an"la$ %e C"* Treas&rer an( C"* Assess#r # 8an"la are %ere,* #r(ere( # re&n( #%e TESTATE ESTATE OF CONCORDIA LI8$ %r#&+% a(7"n"srar"! ERNESTINA CRISOLOGO?=OSE$ %e a7#&n #P4$24.02 as real esae a!es 'a"( &n(er 'r#es.

SO ORDERED.


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THIRD DIVISION

[G.R. No. 10786. %a(uary 28, 1997.]

A!FREDO ATA!INGH&G, Petitioner, #. HON. O&RT OF AEA!S, RIARDO RI4I!!O, "ARTINARAO!, ORA5ON A!ASID, RI"ITIVA SEDO, Respondents.

Go(:a/e*, 4a-'//er, 4'/o; < A**o+'a-e* or Petitioner.

Gar+'/a*o F . Ve;a or Private Respondents.

D E I S I O N

RO"ERO,J.

In %e )ase ,e#re &s$ -e are )alle( &'#n # (e)"(e -%e%er #r n# 'e""#ners #'era"#n # a &neral %#7e)#ns"&es 'er7"ss",le &se -"%"n a 'ar")&lar ("sr") #r J#ne "n Da5a# C"*.)%anr#,les5"r&alla-l",rar*

On N#5e7,er 1$ 129:$ %e San++&n"an+ Panl&n+s#( # Da5a# C"* ena)e( Or("nan)e N#. 040$ ser"es # 129:#%er-"se n#-n as %e E!'an(e( K#n"n+ Or("nan)e # Da5a# C"*$ Se)"#n 9 # -%")%saes6+))%anr#,les.)#7.'%

Se)"#n 9. USE REGULATIONS IN C?: DISTRICTS /S%a(e( l"+% re( "n %e E!'an(e( K#n"n+ 8a' AC :D"sr") s%all ,e (#7"nanl* #r )#77er)"al an( )#7'a",le "n(&sr"al &ses as 'r#5"(e( %ere&n(er)%anr#,1es5"r&al 1a- l",rar*

1. . . .

:. . . .

0.1 F&neral Parl#rs@8e7#r"al H#7es -"% a(e&ae # sree 'ar"n+ s'a)e /see 'ar"n+ san(ar(s # P.D. 124an( 'r#5"(e( %a %e* s%all ,e esa,l"s%e( n# less %an 7eers r#7 an* res"(en"al sr&)&res$ )%&r)%es an(#%er "ns"&"#nal ,&"l("n+s. /E7'%as"s 'r#5"(e(

U'#n 'r"#r a''r#5al an( )er"")a"#n # J#n"n+ )#7'l"an)e ,* K#n"n+ A(7"n"sra#r He)#r Es+&erra$ B&"l("n+O")"al De7er"# Al"n(a( "ss&e( #n Fe,r&ar* 1$ 129 B&"l("n+ Per7" N#. 9:3 "n a5#r # 'e""#ner #r %e)#nsr&)"#n # a &neral 'arl#r "n %e na7e an( s*le # 8er#'#l"an F&neral Parl#r a Ca,a+&"# A5en&e$ A+(a#$Da5a# C"*.)%anr#,les5"r&alla-l",rar*

T%ereaer$ 'e""#ner )#77en)e( %e )#nsr&)"#n # %"s &neral 'arl#r.

A)"n+ #n %e )#7'la"n # se5eral res"(ens # Baran+a* A+(a#$ Da5a# C"* %a %e )#nsr&)"#n # 'e""#ners&neral 'arl#r 5"#lae( Or("nan)e N#. 040$ s"n)e " -as alle+e(l* s"&ae( -"%"n a ?7eer ra("&s r#7 %e I+les"an" r"s# C%a'el an( se5eral res"(en"al sr&)&res$ %e San++&n"an+ Panl&n+s#( )#n(&)e( an "n5es"+a"#n an(#&n( %a %e neares res"(en"al sr&)&re$ #-ne( ,* W"lre( G. Te'## "s #nl* 9 "n)%es # %e s#&%. . . . 1

N#-"%san("n+ %e "n("n+s # %e San++&n"an+ Panl&n+s#($ 'e""#ner )#n"n&e( # )#nsr&) %"s &neral 'arl#r-%")% -as "n"s%e( #n N#5e7,er 0$ 129.

C#nse&enl*$ 'r"5ae res'#n(ens "le( #n Se'e7,er 4$ 1299 a )ase #r %e (e)lara"#n # n&ll"* # a ,&"l("n+'er7" -"% 'rel"7"nar* 'r#%","#r* an( 7an(a#r* "n6&n)"#n an(@#r resra"n"n+ #r(er -"% %e r"al )#&r. :

Aer )#n(&)"n+ "s #-n #)&lar "ns'e)"#n #n 8ar)% 0$ 1292$ %e l#-er )#&r$ "n "s #r(er (ae( =&l* 4$ 1292$("s7"sse( %e )#7'la"n ,ase( #n %e #ll#-"n+ "n("n+s 0

1. T%a %e res"(en"al ,&"l("n+ #-ne( ,* Cr","ll# an( I+les"a n" r"s# )%a'el are 40.: 7eers an( .2 7eersa-a*$ res'e)"5el* r#7 %e &neral 'arl#r.)%anr#,les5"r&alla-l",rar*

:. Al%#&+% %e res"(en"al ,&"l("n+ #-ne( ,* )era"n 8r. Te'## "s a(6a)en # %e &neral 'arl#r$ an( "s #nl*se'arae( %erer#7 ,* a )#n)ree en)e$ sa"( res"(en"al ,&"l("n+ "s ,e"n+ rene( ,* a )era"n 8r. As"aen -%#


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a)&all* (e5#es " # %"s la&n(r* ,&s"ness -"% 7a)%"ner* %ere#n.

0. Pr"5ae res'#n(ens s&" "s 're7a&re as %e* a"le( # e!%a&s %e a(7"n"sra"5e re7e("es 'r#5"(e( ,*Or("nan)e N#. 040.)rala- 5"r&a1a- l",rar*

Hen)e$ 'r"5ae res'#n(ens a''eale( # %e C#&r # A''eals. /CA G.R. N#. :0:30.

In "s (e)"s"#n (ae( N#5e7,er :2$ 1221$ %e C#&r # A''eals re5erse( %e l#-er )#&r ,* ann&ll"n+ ,&"l("n+

'er7" N#. 9:3 "ss&e( "n a5#r # 'e""#ner. 3 I r&le( %a al%#&+% %e ,&"l("n+s #-ne( ,* Cr","ll# an( I+les"aN" r"s# -ere ,e*#n( %e ?7eer res"(en"al ra("&s 'r#%","e( ,* Or("nan)e 040$ %e )#nsr&)"#n # %e &neral'arl#r -as -"%"n %e ?7eer ra("&s 7eas&re( r#7 %e Te'##s ,&"l("n+. T%e A''ellae C#&r ("sa+ree( -"% %el#-er )#&rs (eer7"na"#n %a Te'##s ,&"l("n+ -as )#77er)"al an( r&le( %a al%#&+% " -as &se( ,* 8r.Te'##s lessee #r la&n(r* ,&s"ness$ " -as a res"(en"al l# as rele)e( "n %e a! (e)lara"#n$ %&s 'a5"n+ %e -a*#r %e a''l")a"#n # Or("nan)e N#. 040.)%anr#,les5"r&alla-l",rar*

Hen)e$ %"s a''eal ,ase( #n %e #ll#-"n+ +r#&n(s6+))%anr#,les.)#7.'%

T%e Res'#n(en C#&r # A''eals erre( "n )#n)l&("n+ %a %e Te'## ,&"l("n+ a(6a)en # 'e""#ners &neral'arl#r "s res"(en"al s"7'l* ,e)a&se " -as alle+e(l* (e)lare( as s&)% #r a!a"#n '&r'#ses$ "n )#7'lee ("sre+ar(# Or("nan)e N#. 040 /T%e E!'an(e( K#n"n+ Or("nan)e # Da5a# C"* (e)lar"n+ %e s&,6e) area as (#7"nanl* #r)#77er)"al an( )#7'a",le "n(&sr"al &ses.)rala- 5"r&a1a- l",rar*

We re5erse %e A''ellae C#&r an( re"nsae %e r&l"n+ # %e l#-er )#&r %a 'e""#ner ("( n# 5"#lae Se)"#n 9

# Da5a# C"* Or("nan)e N#. 040. I 7&s ,e e7'%as"Je( %a %e &es"#n # -%e%er 8r. Te'##s ,&"l("n+ "sres"(en"al #r n# "s a a)&al (eer7"na"#n -%")% -e s%#&l( n# ("s&r,. As -e %a5e re'eae(l* en&n)"ae($ %eres#l&"#n # a)&al "ss&es "s %e &n)"#n # %e l#-er )#&rs -%ere "n("n+s #n %ese 7aers are re)e"5e( -"%res'e) an( are "n a) ,"n("n+ #n %"s )#&r$ e!)e' #nl* -%ere %e )ase "s s%#-n as )#7"n+ &n(er %e a))e'e(e!)e'"#ns.

Al%#&+% %e +eneral r&le "s %a a)&al "n("n+s # %e C#&r # A''eals are )#n)l&s"5e #n &s$ 4 %"s a(7"s #e!)e'"#ns as -%en %e "n("n+s #r )#n)l&s"#ns # %e C#&r # A''eals an( %e r"al )#&r are )#nrar* # ea)%#%er. W%"le %e r"al )#&r r&le( %a Te'##s ,&"l("n+ -as )#77er)"al$ %e A''ellae C#&r r&le( #%er-"se. T%&s-e see %e ne)ess"* # rea("n+ an( e!a7"n"n+ %e 'lea("n+s an( rans)r"'s s&,7"e( ,e#re %e r"al)#&r.)%anr#,les5"r&alla-l",rar*

In %e )ase a ,ar$ %e es"7#n* # C"* C#&n)"l#r >er+ara s%#-s %a 8r. Te'##s ,&"l("n+ -as &se( #r a (&al'&r'#se ,#% as a (-ell"n+ an( as a 'la)e -%ere a la&n(r* ,&s"ness -as )#n(&)e(. 9 B& -%"le "s )#77er)"alas'e) %as ,een esa,l"s%e( ,* %e 'resen)e # 7a)%"ner"es an( la&n(r* 'ara'%ernal"a$ "s &se as a res"(en)e$#%er %an ,e"n+ (e)lare( #r a!a"#n '&r'#ses as s&)%$ -as n# &ll* s&,san"ae(.

T%e re5ersal ,* %e C#&r # A''eals # %e r"al )#&rs (e)"s"#n -as ,ase( #n Te'##s ,&"l("n+ ,e"n+ (e)lare( #ra!a"#n '&r'#ses as res"(en"al. I "s #&r )#ns"(ere( 5"e-$ %#-e5er$ %a a a! (e)lara"#n "s n# )#n)l&s"5e # %ena&re # %e 'r#'er* #r J#n"n+ '&r'#ses. A 'r#'er* 7a* %a5e ,een (e)lare( ,* "s #-ner as res"(en"al #r realesae a!a"#n '&r'#ses ,& " 7a* -ell ,e -"%"n a )#77er)"al J#ne. A ("s)re'an)* 7a* %&s e!"s "n %e(eer7"na"#n # %e na&re # 'r#'er* #r real esae a!a"#n '&r'#ses 5"s?a?5"s %e (eer7"na"#n # a 'r#'er*#r J#n"n+ '&r'#ses.

Nee(less # sa*$ e5en " -e are # e!a7"ne %e e5"(en"ar* 5al&e # a a! (e)lara"#n &n(er %e Real Pr#'er* Ta!C#(e$ a a! (e)lara"#n #nl* ena,les %e assess#r # "(en"* %e sa7e #r assess7en le5els. In a)$ a a!(e)lara"#n (#es n# ,"n( a 'r#5"n)"al@)"* assess#r$ #r &n(er Se). :: # %e Real Esae Ta! C#(e$ 2 a''ra"sal an(assess7en are ,ase( #n %e a)&al &se "rres'e)"5e # an* 're5"#&s assess7en #r a!'a*ers 5al&a"#n %ere#n$-%")% "s ,ase( #n a a!'a*ers (e)lara"#n. In a)$ a '"e)e # lan( (e)lare( ,* a a!'a*er as res"(en"al 7a* ,eassesse( ,* %e 'r#5"n)"al #r )"* assess#r as )#77er)"al ,e)a&se "s a)&al &se "s)#77er)"al.)%anr#,les5"r&alla-l",rar*

T%e r"al )#&rs (eer7"na"#n %a 8r. Te'##s ,&"l("n+ "s )#77er)"al an($ %ere#re$ Se). 9 "s "na''l")a,le$ "ssren+%ene( ,* %e a) %a %e San++&n"an+ Panl&n+s#( %as (e)lare( %e &es"#ne( area as )#77er)"al #r C?:.C#nse&enl*$ e5en " Te'##s ,&"l("n+ -as (e)lare( #r a!a"#n '&r'#ses as res"(en"al$ #n)e a l#)al +#5ern7en%as re)lass""e( an area as )#77er)"al$ %a (eer7"na"#n #r J#n"n+ '&r'#ses 7&s 're5a"l. W%"le %e )#77er)"al)%ara)er # %e &es"#ne( 5")"n"* %as ,een (e)lare( %r& %e #r("nan)e$ 'r"5ae res'#n(ens %a5e a"le( #'resen )#n5"n)"n+ ar+&7ens # s&,san"ae %e"r )la"7 %a Ca,a+&"# A5en&e$ -%ere %e &neral 'arl#r -as)#nsr&)e($ -as s"ll a res"(en"al J#ne. Un&es"#na,l*$ %e #'era"#n # a &neral 'arl#r )#ns"&es a )#77er)"al'&r'#se$ as +leane( r#7 Or("nan)e N#. 040.

T%e (e)lara"#n # %e sa"( area as a )#77er)"al J#ne %r& a 7&n")"'al #r("nan)e "s an e!er)"se # '#l")e '#-er #'r#7#e %e +##( #r(er an( +eneral -elare # %e 'e#'le "n %e l#)al"*. C#r#llar* %ere#$ %e sae$ "n #r(er #


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'r#7#e %e +eneral -elare$ 7a* "nerere -"% 'ers#nal l",er*$ -"% 'r#'er*$ an( -"% ,&s"ness an( #))&'a"#ns.1 T%&s$ 'ers#ns 7a* ,e s&,6e)e( # )era"n "n(s # resra"ns an( ,&r(ens "n #r(er # se)&re %e +eneral-elare # %e sae an( # %"s &n(a7enal a"7 # +#5ern7en$ %e r"+%s # %e "n("5"(&al 7a* ,e s&,#r("nae(.T%e #r("nan)e -%")% re+&laes %e l#)a"#n # &neral %#7es %as ,een a(#'e( as 'ar # )#7're%ens"5e J#n"n+'lans #r %e #r(erl* (e5el#'7en # %e area )#5ere( %ere&n(er.)%anr#,les5"r&alla-l",rar*

WHEREFORE$ %e (e)"s"#n # %e C#&r # A''eals (ae( N#5e7,er :2$ 1221 "s %ere,* RE>ERSED an( %e #r(er(ae( =&l* 4$ 1292 # %e Re+"#nal Tr"al C#&r # Da5a# C"* "s REINSTATED.

SO ORDERED.


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THIRD DIVISION

[G.R. No. 128316. O+-ober 12, 2000.]

!IGHT RAI! TRANSIT A&THORIT$, Petitioner, #. ENTRA! 4OARD OF ASSESS"ENT AEA!S, 4OARD OFASSESS"ENT AEA!S OF "ANI!A a( -)e IT$ ASSESSOR OF "ANI!A, Respondents.

D E I S I O N

ANGANI4AN,J.

T%e L"+% Ra"l Trans" A&%#r"* an( %e 8er# Trans" Or+an"Ja"#n &n)"#n as ser5")e?#r"ene( ,&s"ness en""es$-%")% 'r#5"(e 5al&a,le rans'#ra"#n a)"l""es # %e 'a*"n+ '&,l"). In %e a,sen)e$ %#-e5er$ # an* e!'ress +ran# e!e7'"#n "n %e"r a5#r$ %e* are s&,6e) # %e 'a*7en # real 'r#'er* a!es.)%anr#,1es 5"r&a1 1a- 1",rar*

T%e Case

In %e Pe""#n #r Re5"e- ,e#re &s$ %e L"+% Ra"l Trans" A&%#r"* /LRTA )%allen+es %e N#5e7,er 1$ 1224De)"s"#n 1 # %e C#&r # A''eals /CA "n CA?GR SP N#. 0910$ -%")% ("s'#se( as #ll#-s)%anr#,1es 5"r&al 1a-l",rar*

WHEREFORE$ 're7"ses )#ns"(ere($ %e a''eale( (e)"s"#n /(ae( O)#,er 1$ 1223 # %e Cenral B#ar( #Assess7en A''eals "s %ere,* AFFIR8ED$ -"% )#ss a+a"ns %e 'e""#ner. :

T%e a"r7e( r&l"n+ # %e Cenral B#ar( # Assess7en A''eals /CBAA &'%el( %e =&ne :4$ 122: Res#l&"#n # %eB#ar( # Assess7en A''eals # 8an"la$ -%")% %a( (e)lare( 'e""#ners )arr"a+e-a*s an( 'assen+er er7"nals as"7'r#5e7ens s&,6e) # real 'r#'er* a!es.

T%e Fa)s

T%e &n("s'&e( a)s are e( ,* %e C#&r # A''eals /CA r#7 %e CBAA r&l"n+$ as #ll#-s 0

1. T%e LRTA "s a +#5ern7en?#-ne( an( )#nr#lle( )#r'#ra"#n )reae( an( #r+an"Je( &n(er E!e)&"5e Or(er N#.40$ (ae( =&l* 1:$ 129 . . . 'r"7ar"l* res'#ns",le #r %e )#nsr&)"#n$ #'era"#n$ 7a"nenan)e an(@#r lease #l"+% ra"l rans" s*se7 "n %e P%"l"''"nes$ +"5"n+ (&e re+ar( # %e reas#na,le re&"re7ens< # %e '&,l")rans'#ra"#n # %e )#&nr* /LRTA 5. T%e H#n. C#77"ss"#n #n A&("$ G.R. N#. 9904;

:. . . . B


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:4$ 122:$ (en"e( 'e""#ners< a''eal$ an( (e)lare( %a )arr"a+e-a*s an( 'assen+er er7"nal sa"#ns are"7'r#5e7ens$ %ere#re$ are real 'r#'er*< &n(er %e C#(e$ an( n# e!e7' r#7 %e 'a*7en # real 'r#'er*a!.)%anr#,1es 5"r&a1 1a- 1",rar*

A 7#"#n #r re)#ns"(era"#n "le( ,* 'e""#ner< -as l"e-"se (en"e(.)rala- 5"r&a1a- l",rar*

T%e CA R&l"n+

T%e C#&r # A''eals %el( %a 'e""#ners )arr"a+e-a*s an( 'assen+er er7"nal sa"#ns )#ns"&e( real 'r#'er*#r "7'r#5e7ens %ere#n an($ as s&)%$ -ere a!a,le &n(er %e Real Pr#'er* Ta! C#(e. T%e a''ellae )#&re7'%as"Je( %a s&)% '"e)es # 'r#'er* ("( n# all &n(er an* # %e e!e7'"#ns l"se( "n Se)"#n 3 # %ea#re7en"#ne( la-. T%e reas#n -as %a %e* -ere n# #-ne( ,* %e +#5ern7en #r an* +#5ern7en?#-ne()#r'#ra"#n -%")%$ as s&)%$ -as e!e7' r#7 %e 'a*7en # real 'r#'er* a!es. Tr&e$ %e +#5ern7en #-ne( %ereal 'r#'er* &'#n -%")% %e )arr"a+e-a*s an( er7"nal sa"#ns -ere ,&"l. H#-e5er$ %e* -ere s"ll a!a,le,e)a&se ,ene")"al &se %a( ,een ranserre( # 'e""#ner$ a a!a,le en"*.)%anr#,1es 5"r&a1 1a- 1",rar*

T%e CA (e,&ne( %e ar+&7en # 'e""#ner %a )arr"a+e-a*s an( er7"nals -ere "nen(e( #r '&,l") &se. T%e#r7er a+ree($ "nsea($ -"% %e CBAA. T%e CBAA %a( )#n)l&(e( %a s"n)e 'e""#ner -as n# en+a+e( "n '&rel*+#5ern7enal #r '&,l") ser5")e$ %e laers en(ea5#rs -ere 'r#'r"ear*. In(ee($ 'e""#ner -as (ee7e( as a 'r#"?#r"ene( en(ea5#r$ ser5"n+ as " ("($ #nl* %e 'a*"n+ '&,l").

Hen)e$ %"s Pe""#n. 3

T%e Iss&es

In "s 8e7#ran(&7$ 'e""#ner &r+es %e C#&r # res#l5e %e #ll#-"n+ 7aers)%anr#,1es 5"r&al 1a- l",rar*

I

T%e H#n#ra,le C#&r # A''eals erre( "n n# %#l("n+ %a %e )arr"a+e-a*s an( er7"nal sa"#ns # 'e""#ner aren# "7'r#5e7ens #r '&r'#ses # %e Real Pr#'er* Ta! C#(e.

II

T%e H#n#ra,le C#&r # A''eals erre( "n n# %#l("n+ %a ,e"n+ aa)%e( # na"#nal r#a(s #-ne( ,* %e na"#nal

+#5ern7en$ s&,6e) )arr"a+e-a*s an( er7"nal sa"#ns s%#&l( ,e )#ns"(ere( 'r#'er* # %e na"#nal+#5ern7en.)%anr#,1es 5"r&a1 1a- 1",rar*

III

T%e H#n#ra,le C#&r # A''eals erre( "n n# %#l("n+ %a 'a*7en # )%ar+es #r ares "n %e #'era"#n # %e l"+%ra"l rans" s*se7 (#es n# aler %e na&re # %e s&,6e) )arr"a+e-a*s an( er7"nal sa"#ns as (e5#e( #r '&,l")&se.

I>

T%e H#n#ra,le C#&r # A''eals erre( "n a"l"n+ # )#ns"(er %e 5"e- a(5an)e( ,* %e De'ar7en # F"nan)e$ -%")%aes )%ar+e # %e #5erall )#lle)"#n # a!es$ %a s&,6e) )arr"a+e-a*s an( er7"nal sa"#ns are n# s&,6e) #real* a!es.)%anr#,1es 5"r&a1 1a- 1",rar*

>

T%e H#n#ra,le C#&r # A''eals erre( "n a"l"n+ # )#ns"(er %a 'a*7en # %e real* a!es assesse( "s n#-arrane( an( s%#&l( %e le+al"* # %e &es"#ne( assess7en ,e &'%el($ %e a7#&n # %e real* a!es assesse(-#&l( ar e!)ee( %e ann&al earn"n+s # 'e""#ner$ a +#5ern7en )#r'#ra"#n. )rala- 5"r&a1a- l",rar*

T%e #re+#"n+ all '#"n # #ne 7a"n "ss&e -%e%er 'e""#ners )arr"a+e-a*s an( 'assen+er er7"nal sa"#ns ares&,6e) # real 'r#'er* a!es.)%anr#,1es 5"r&a1 1a- 1",rar*


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T%e C#&rs R&l"n+

T%e Pe""#n %as n# 7er".

8a"n Iss&e)%anr#,1es 5"r&al 1a- l",rar*

8a* Real Pr#'er* Ta!es ,e Assesse( an( C#lle)e(M

T%e Real Pr#'er* Ta! C#(e$ 4 %e la- "n #r)e a %e "7e # %e assa"le( assess7en "n 1293$ 7an(ae( %a%ere s%all ,e le5"e($ assesse( an( )#lle)e( "n all 'r#5"n)es$ )""es an( 7&n")"'al""es an ann&al a( 5al#re7 a! #nreal 'r#'er* s&)% as lan(s$ ,&"l("n+s$ 7a)%"ner* an( #%er "7'r#5e7ens a"!e( #r aa)%e( # real 'r#'er* n#%ere"naer s'e)"")all* e!e7'e(.

Pe""#ner (#es n# ("s'&e %a "s s&,6e) )arr"a+e-a*s an( sa"#ns 7a* ,e )#ns"(ere( real 'r#'er* &n(er Ar")le31 # %e C"5"l C#(e. H#-e5er$ " res#l&el* ar+&es %a %e sa7e are "7'r#5e7ens$ n# # "s 'r#'er"es$ ,& #%e +#5ern7en?#-ne( na"#nal r#a(s # -%")% %e* are "77#5a,l* aa)%e(. T%e* are %&s n# a!a,le as"7'r#5e7ens &n(er %e Real Pr#'er* Ta! C#(e. In essen)e$ " )#nen(s %a # "7'#se a a! #n %e )arr"a+e-a*san( er7"nal sa"#ns -#&l( ,e # "7'#se a!es #n '&,l") r#a(s.

T%e ar+&7en (#es n# 'ers&a(e. We e -"% a''r#5al %e s#l")"#r +enerals as&e )#77en #n %"s7aer6+))%anr#,les.)#7.'%

T%ere "s n# '#"n "n )lar"*"n+ %e )#n)e' # "n(&sr"al a))ess"#n # (eer7"ne %e na&re # %e 'r#'er* -%en-%a "s &n(a7enall* "7'#ran #r '&r'#ses # a! )lass"")a"#n "s # (eer7"ne %e )%ara)er # %e 'r#'er*s&,6e) #< a!. T%e )%ara)er # a! as a 'r#'er* a! 7&s ,e (eer7"ne( ,* "s "n)"(ens$ an( r#7 %e na&ralan( le+al ee) %ere#. I "s "rrele5an # ass#)"ae %e )arr"a+e-a*s an(@#r %e 'assen+er er7"nals as a))ess#r*"7'r#5e7ens -%en %e 5"e- # a!a,"l"* "s #)&se( #n %e )%ara)er # %e 'r#'er*. T%e laer s"&a"#n "s n# an#5el "ss&e as " %as alrea(* ,een res#l5e( ,* %"s H#n#ra,le C#&r "n %e )ase # C"* # 8an"la 5. IAC /GR N#.112$ N#5e7,er 1$ 1292 -%ere"n " -as %el()%anr#,1es 5"r&al 1a- l",rar*

T%e Ne- C"5"l C#(e ("5"(es %e 'r#'er"es "n# 'r#'er* #r '&,l") an( 'ar"7#n"al 'r#'er* /Ar. 3:0$ an( &r%eren&7eraes %e 'r#'er* #r '&,l") &se as 'r#5"n)"al r#a($ )"* srees$ 7&n")"'al srees$ s&ares$ #&na"ns$ '&,l")-aers$ '&,l") -#rs #r '&,l") ser5")e 'a"( #r ,* sa"( 'r#5"n)es


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7&s ,e e7'%as"Je( %a %ese sr&)&res (# n# #r7 'ar # s&)% r#a(s$ s"n)e %e #r7er %a5e ,een )#nsr&)e(#5er %e laer "n s&)% a -a* %a %e l#- # 5e%")&lar ra") -#&l( n# ,e "7'e(e(. T%ese )arr"a+e-a*s an(er7"nal sa"#ns ser5e a &n)"#n ("eren r#7 %a # %e '&,l") r#a(s. T%e #r7er are 'ar an( 'ar)el # %e l"+%ra"l rans" /LRT s*se7 -%")%$ &nl"e %e laer$ are n# #'en # &se ,* %e +eneral '&,l"). T%e )arr"a+e-a*s area))ess",le #nl* # %e LRT ra"ns$ -%"le %e er7"nal sa"#ns %a5e ,een ,&"l #r %e )#n5en"en)e # LRTA "sel an("s )&s#7ers -%# 'a* %e re&"re( are.)%anr#,1es 5"r&a1 1a- 1",rar*

Bas"s # Assess7en

Is A)&al Use #

Real Pr#'er*

Un(er %e Real Pr#'er* Ta! C#(e$ real 'r#'er* "s )lass""e( #r assess7en '&r'#ses #n %e ,as"s # a)&al &se$ 1-%")% "s (e"ne( as %e '&r'#se #r -%")% %e 'r#'er* "s 'r"n)"'all* #r 're(#7"nanl* &"l"Je( ,* %e 'ers#n "n'#ssess"#n # %e 'r#'er*. 11

Pe""#ner ar+&es %a " 7erel* #'eraes an( 7a"na"ns %e LRT s*se7$ an( %a %e a)&al &sers # %e)arr"a+e-a*s an( er7"nal sa"#ns are %e )#77&"n+ '&,l"). I a((s %a %e '&,l") &se )%ara)er # %e LRT "sn# ne+ae( ,* %e a) %a re5en&e "s #,a"ne( r#7 %e laers #'era"#ns.

We (# n# a+ree. Unl"e '&,l") r#a(s -%")% are #'en #r &se ,* e5er*#ne$ %e LRT "s a))ess",le #nl* # %#se -%#'a* %e re&"re( are. I "s %&s a''aren %a 'e""#ner (#es n# e!"s s#lel* #r '&,l") ser5")e$ an( %a %e LRT

)arr"a+e-a*s an( er7"nal sa"#ns are n# e!)l&s"5el* #r '&,l") &se. Al%#&+% 'e""#ner "s a '&,l") &"l"*$ " "sn#ne%eless 'r#"?earn"n+. I a)&all* &ses %#se )arr"a+e-a*s an( er7"nal sa"#ns "n "s '&,l") &"l"* ,&s"nessan( earns 7#ne* %erer#7.)%anr#,1es 5"r&a1 1a- 1",rar*

Pe""#ner N# E!e7' r#7

Pa*7en # Real Pr#'er* Ta!es

In an* e5en$ %ere "s an#%er le+al 6&s"")a"#n #r &'%#l("n+ %e assa"le( CA De)"s"#n. Un(er %e Real Pr#'er* Ta!C#(e$ real 'r#'er* #-ne( ,* %e Re'&,l") # %e P%"l"''"nes #r an* # "s '#l"")al s&,("5"s"#ns an( an*+#5ern7en?#-ne( #r )#nr#lle( )#r'#ra"#n s# e!e7' ,* "s )%arer$ 'r#5"(e($ %#-e5er$ %a %"s e!e7'"#n s%alln# a''l* # real 'r#'er* # %e a,#5ena7e( en""es %e ,ene")"al &se # -%")% %as ,een +rane($ #r)#ns"(era"#n #r #%er-"se$ # a a!a,le 'ers#n. 1:

E!e)&"5e Or(er N#. 40$ %e )%arer # 'e""#ner$ (#es n# 'r#5"(e #r an* real esae a! e!e7'"#n "n "s a5#r.Is e!e7'"#n "s l"7"e( # ("re) an( "n("re) a!es$ (&"es #r ees "n )#nne)"#n -"% %e "7'#ra"#n # e&"'7en

n# l#)all* a5a"la,le$ as %e #ll#-"n+ 'r#5"s"#n s%#-s6+))%anr#,les.)#7.'%

ARTICLE 3

TAX AND DUTY EXE8PTIONS

Se). 9. E&"'7en$ 8a)%"ner"es$ S'are Pars an( O%er A))ess#r"es an( 8aer"als. T%e "7'#ra"#n # e&"'7en$7a)%"ner"es$ s'are 'ars$ a))ess#r"es an( #%er 7aer"als$ "n)l&("n+ s&''l"es an( ser5")es$ &se( ("re)l* "n %e#'era"#ns # %e L"+% Ra"ls Trans" S*se7$ n# #,a"na,le l#)all* #n a5#ra,le er7s$ #& # an* &n(s # %ea&%#r"* "n)l&("n+$ as sae( "n Se)"#n a,#5e$ 'r#)ee(s r#7 #re"+n l#ans )re("s #r "n(e,e(ness$ s%alll"e-"se ,e e!e7'e( r#7 all ("re) an( "n("re) a!es$ )&s#7s (&"es$ ees$ "7'#ss$ ar" (&"es$ )#7'ensa"n+a!es$ -%ara+e ees an( #%er )%ar+es an( resr")"#ns$ %e 'r#5"s"#ns # e!"s"n+ la-s # %e )#nrar*n#-"%san("n+. )%anr#,1es 5"r&a1 1a- 1",rar*

E5en +ran"n+ %a %e na"#nal +#5ern7en "n(ee( #-ns %e )arr"a+e-a*s an( er7"nal sa"#ns$ %e e!e7'"#n-#&l( n# a''l* ,e)a&se %e"r ,ene")"al &se %as ,een +rane( # 'e""#ner$ a a!a,le en"*.

Ta!a"#n "s %e r&le an( e!e7'"#n "s %e e!)e'"#n. An* )la"7 #r a! e!e7'"#n "s sr")l* )#nsr&e( a+a"ns %e)la"7an. 10 LRTA %as n# s%#-n "s el"+","l"* #r e!e7'"#n; %en)e$ " "s s&,6e) # %e a!.)%anr#,1es 5"r&a1 1a-1",rar*

WHEREFORE$ %e Pe""#n "s %ere,* DENIED an( %e assa"le( De)"s"#n # %e C#&r # A''eals AFFIR8ED. C#ssa+a"ns %e 'e""#ner.

SO ORDERED.

8el#$ >"&+ an( P&r"s"7a$JJ.$ )#n)&r.


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G#nJa+a?Re*es$J.$ ## n# 'ar.

EN 4AN

[G.R. NO. 1=7126 O+-ober 11, 200=]

A//'e 4a(>'(; orora-'o( a* Tru*-ee or -)e Tru*- Fu( o o//e;e A**ura(+e /a( )'/''(e*, I(+.

?A@,Petitioner$ v.T)e ue:o( '-y Go#er(Be(-, -)e ue:o( '-y Trea*urer, -)e ue:o( '-y A**e**ora( -)e '-y "ayor o ue:o( '-y,Respondents.

D E I S I O N

ARIO "ORA!ES,J.

Fr#7 %e Res#l&"#n1# A'r"l 1$ :: "ss&e( ,* Bran)% :: # %e Re+"#nal Tr"al C#&r /RTC # &eJ#n C"*("s7"ss"n+ %e 'e""#n #r 'r#%",""#n an( (e)lara#r* rel"e:# All"e( Ban"n+ C#r'#ra"#n /'e""#ner$ %e 'resena''eal ,* certiorari-as l#(+e(.

On De)e7,er 12$ 122$ %e &eJ#n C"* +#5ern7en ena)e( C"* Or("nan)e N#. 0$ Ser"es # 122 /%e#r("nan)e$0Se)"#n 0 # -%")% rea(s

Se)"#n 0. T%e C"* Assess#r s%all &n(erae a +eneral re5"s"#n # real 'r#'er* assess7ens &s"n+ as ,as"s %ene-l* a''r#5e( s)%e(&le s'e)""e( "n Se)"#ns 1 an( : %ere#. He s%all a''l* %e ne- assess7en le5el # 1 #rres"(en"al an( 3 #r )#77er)"al an( "n(&sr"al )lass"")a"#n$ res'e)"5el* as 'res)r",e( "n Se)"#n 9 /a # %e1220 &eJ#n C"* Re5en&e C#(e # (eer7"ne %e assesse( 5al&e # %e lan(. Pr#5"(e(; %#-e5er$ %a ar+e/* o/a( *o/, +ee, -ra(*erre a( +o(#eye or reBu(era-ory +o(*'era-'o( a-er -)e ee+-'#'-y o -)'*

re#'*'o( *)a// be *ubCe+- -o rea/ e*-a-e -a ba*e o( -)e a+-ua/ aBou(- re/e+-e '( -)e ee o

+o(#eya(+e or -)e +urre(- aro#e :o(a/ #a/ua-'o( o -)e 4ureau o I(-er(a/ Re#e(ue re#a'/'(; a- -)e

-'Be o *a/e, +e**'o(, -ra(*er a( +o(#eya(+e, )'+)e#er '* )';)er, a* e#'e(+e by -)e +er-''+a-e o

ayBe(- o -)e +a'-a/ ;a'(* -a '**ue -)ereor.3/Emphasis and underscoring suppliedQrll,rrV

On =&l* 1$ 1229$ 'e""#ner$ as r&see #r C#lle+e Ass&ran)e Plan # %e P%"l"''"nes$ In).$ '&r)%ase( r#7 L"-ana+C. Na"5"(a( e al. a 1$ s&are 7eer 'ar)el # lan( l#)ae( al#n+ A&r#ra B#&le5ar($ &eJ#n C"* "n %e a7#&n# P09$$..

Pr"#r # %e sale$ Na"5"(a( e al. %a( ,een 'a*"n+ %e #al a7#&n # P9$.4as ann&al real 'r#'er* a!,ase( #n %e 'r#'er*s a"r 7are 5al&e # P 3$$. an( assesse( 5al&e #P 1$9$. &n(er Ta!De)lara"#n N#. D?1:?09.

Aer "s a)&"s""#n # %e 'r#'er*$ 'e""#ner -as$ "n a))#r(an)e -"% Se)"#n 0 # %e #r("nan)e$ re&"re( #'a* P1:$4. as &arerl* real esae a! /#r P31$3. ann&all* &n(er Ta! De)lara"#n N#. D?1:?09-%")% 'e++e( %e 7are 5al&e # %e 'r#'er* a P09$$. ? %e )#ns"(era"#n a''ear"n+ "n %e Dee( #A,s#l&e Sale$ an( "s assesse( 5al&e a P1$:$..9

Pe""#ner 'a"( %e &arerl* real esae a! #r %e 'r#'er* r#7 %e 1s &arer # 1222 &' # %e 0r( &arer #:. Is a! 'a*7ens #r %e :n($ 0r($ an( 3% &arer # 1222$ an( 1s an( :n( &arer # : -ere$ %#-e5er$7a(e &n(er 'r#es.2

In "s -r"en 'r#es1-"% %e C"* Treas&rer$ 'e""#ner assa"le( Se)"#n 0 # %e #r("nan)e as n&ll an( 5#"($ ")#nen("n+ %a " "s 5"#la"5e # %e e&al 'r#e)"#n an( &n"#r7"* # a!a"#n )la&ses # %eC#ns"&"#n.11Pe""#ner$ 7#re#5er$ )#nen(e( %a %e 'r#5"s# "s &n6&s$ e!)ess"5e$ #''ress"5e$ &nreas#na,le$)#n"s)a#r* an( )#nrar* # Se)"#n 10 # %e L#)al G#5ern7en C#(e -%")% 'r#5"(es
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se)"#n 10. Fundamental Principles.? T%e #ll#-"n+ &n(a7enal 'r"n)"'les s%all +#5ern %e e!er)"se # %ea!"n+ an( re5en&e?ra"s"n+ '#-ers # l#)al +#5ern7en &n"s

/a Ta!a"#n s%all ,e &n"#r7 "n ea)% l#)al +#5ern7en &n";

/, Ta!es$ ees$ )%ar+es an( #%er "7'#s""#ns s%all

/1 ,e e&"a,le an( ,ase( as ar as 'ra)")a,le #n %e a!'a*ers a,"l"* # 'a*;

/: ,e le5"e( an( )#lle)e( #nl* #r '&,l") '&r'#ses;

/0 n# ,e &n6&s$ e!)ess"5e$ #''ress"5e$ #r )#n"s)a#r*;

/3 n# ,e )#nrar* # la-$ '&,l") '#l")*$ na"#nal e)#n#7") '#l")*$ #r "n resra"n # ra(e;

! ! !

Pe""#ner$ %r#&+% "s )#&nsel$ laer sen a 8ar)% :3$ : (e7an( leer # %e &eJ#n C"* Treas&rers O")e

see"n+ a re&n( # %e real esae a!es " err#ne#&sl* )#lle)e( r#7 ".

1:

T%e leer -as reerre( #r a''r#'r"aea)"#n10# %e C"* Assess#r -%#$ ,* leer (ae( 8a* $ :$ (en"e( %e (e7an( #r re&n( #n %e +r#&n( %a%e #r("nan)e "s 'res&7e( 5al"( an( le+al &nless #%er-"se (e)lare( ,* a )#&r # )#7'een 6&r"s(")"#n.13

Pe""#ner %ere&'#n "le( #n A&+&s 11$ : a 'e""#n #r 'r#%",""#n an( (e)lara#r* rel"e ,e#re %e &eJ#nC"* RTC #r %e (e)lara"#n # n&ll"* # Se)"#n 0 # %e #r("nan)e; %e en6#"n"n+ # res'#n(ens ? &eJ#n C"*Treas&rer$ &eJ#n C"* Assess#r$ an( C"* 8a*#r # &eJ#n C"* ? r#7 &r%er "7'le7en"n+ %e #r("nan)e; #r %e&eJ#n C"* Treas&rer # ,e #r(ere( # re&n( %e a7#&n # P400$1. re'resen"n+ %e real 'r#'er* a!err#ne#&sl* )#lle)e( an( 'a"( &n(er 'r#es; an( #r res'#n(ens # 'a* a#rne*s ees "n %e a7#&n# P1$$. an( )#ss # %e s&".1

In s&''#r # "s %es"s$ 'e""#ner )#nen(e( %a %e re?assess7en &n(er %e %"r( senen)e # Se)"#n 0 # %e#r("nan)e #r '&r'#ses # real esae a!a"#n # a 'r#'er*s a"r 7are 5al&e -%ere " "s s#l($ )e(e($ ranserre(#r )#n5e*e( #r re7&nera#r* )#ns"(era"#n "s n&ll an( 5#"( as " "s an "n5al"( )lass"")a"#n # real 'r#'er"es -%")%are ranserre($ )e(e( #r )#n5e*e( an( %#se -%")% are n#$ %e laer re7a"n"n+ # ,e 5al&e( an( assesse( "na))#r(an)e -"% %e +eneral re5"s"#ns # assess7ens # real 'r#'er"es &n(er %e "rs senen)e # Se)"#n 0.14

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6&(")"al re5"e-. )econd$ %e &es"#n ,e#re %e C#&r 7&s ,e r"'e #r a(6&(")a"#n. !hird$ %e 'ers#n )%allen+"n+%e 5al"("* # %e a) 7&s %a5e san("n+ # )%allen+e.*ourth$ %e &es"#n # )#ns"&"#nal"* 7&s %a5e ,eenra"se( a %e earl"es #''#r&n"*$ an( lastl+$ %e "ss&e # )#ns"&"#nal"* 7&s ,e %e 5er* lis mota# %e )ase.3

C#ns"(er"n+ %a %ere are a)&al "ss&es s"ll -a""n+ # ,e %res%e( #& a %e le5el # %e a(7"n"sra"5e a+en)*$%ere "s n# a)&al )ase )all"n+ #r %e e!er)"se # 6&(")"al re5"e-. In a((""#n$ %e re&"s"e %a %e )#ns"&"#nal"*# %e assa"le( 'r#5"s# "n &es"#n ,e %e 5er* lis mota# %e )ase "s a,sen. T%&s$ %"s C#&r rera"ns r#7 'ass"n+#n %e )#ns"&"#nal"* # %e 'r#5"s# "n Se)"#n 0 # %e 122 Or("nan)e.

T%e a)&al "ss&es -%")% 'e""#ner "ner6e)e( "n "s 'e""#n as"(e$ %e #nl* )r&)"al le+al &er* "n %"s )ase "s %e5al"("* # %e 'r#5"s# "!"n+ %e a''ra"se( 5al&e # 'r#'er* a %e sae( )#ns"(era"#n a -%")% %e 'r#'er* -aslas s#l(.

T%"s C#&r %#l(s %a %e 'r#5"s# "n &es"#n "s '(#a/'as " a(#'s a 7e%#( # assess7en #r a''ra"sal # real'r#'er* )#nrar* # %e L#)al G#5ern7en C#(e$ "s I7'le7en"n+ R&les an( Re+&la"#ns an( %e L#)alAssess7en Re+&la"#ns N#. 1?2:34"ss&e( ,* %e De'ar7en # F"nan)e.3

Un(er %ese "77e("ael* sae( a&%#r""es$ real 'r#'er"es s%all ,e a''ra"se( a %e )&rren an( a"r 7are 5al&e're5a"l"n+ "n %e l#)al"* -%ere %e 'r#'er* "s s"&ae(39an( )lass""e( #r assess7en '&r'#ses #n %e ,as"s # "sa)&al &se.32

Fa"r 7are 5al&e "s %e 'r")e a -%")% a 'r#'er* 7a* ,e s#l( ,* a seller -%# "s n# )#7'elle( # sell an( ,#&+%,* a ,&*er -%# "s n# )#7'elle( # ,&*$a"n+ "n# )#ns"(era"#n all &ses # -%")% %e 'r#'er* "s a(a'e( an(7"+% "n reas#n ,e a''l"e(. T%e )r"er"#n esa,l"s%e( ,* %e sa&e )#ne7'laes a %*'#%e")al sale. Hen)e$ %e,&*ers nee( n# ,e a)&al an( e!"s"n+ '&r)%asers.1

As %"s C#&r sresse( "n Re+es v. "lmanor$:assess#rs$ "n "!"n+ %e 5al&e # real 'r#'er*$ %a5e # )#ns"(er all%e )"r)&7san)es an( ele7ens # 5al&e$ an( 7&s e!er)"se 'r&(en ("s)re"#n "n rea)%"n+ )#n)l&s"#ns.0In %"sre+ar($ L#)al Assess7en Re+&la"#ns N#. 1?2:3esa,l"s%es %e +&"(el"nes # ass"s assess#rs "n )lass"*"n+$a''ra"s"n+ an( assess"n+ real 'r#'er*.

L#)al Assess7en Re+&la"#ns N#. 1?2: s&++ess %ree a''r#a)%es "n es"7a"n+ %e a"r 7are 5al&e$ na7el* /1%e sales anal*s"s #r 7are (aa a''r#a)%; /: %e "n)#7e )a'"al"Ja"#n a''r#a)%; an( /0 %e re'la)e7en #rre'r#(&)"#n )#s a''r#a)%.

Un(er %e sales anal*s"s a''r#a)%$ %e 'r")e 'a"( "n a)&al 7are ransa)"#ns "s )#ns"(ere( ,* a"n+ "n# a))#&n5al"( sales (aa a))&7&lae( r#7 a7#n+ %e 5ar"#&s s#&r)es sae( "n Se)"#ns ::$ :0$ :9$ :2$ :1$ :11 an(:10 # %e C#(e.4

In %e "n)#7e )a'"al"Ja"#n a''r#a)%$ %e 5al&e # an "n)#7e?'r#(&)"n+ 'r#'er* "s n# 7#re %an %e re&rn(er"5e( r#7 ". An anal*s"s # %e "n)#7e 'r#(&)e( "s ne)essar* "n #r(er # es"7ae %e s&7 -%")% 7"+% ,e"n5ese( "n %e '&r)%ase # %e 'r#'er*.

T%e re'r#(&)"#n )#s a''r#a)%$ #n %e #%er %an($ "s a a)&al a''r#a)% &se( e!)l&s"5el* "n a''ra"s"n+ 7an?7a(e"7'r#5e7ens s&)% as ,&"l("n+s an( #%er sr&)&res$ ,ase( #n s&)% (aa as 7aer"als an( la,#r )#ss #re'r#(&)e a ne- re'l")a # %e "7'r#5e7en.

T%e assess#r &ses an* #r all # %ese a''r#a)%es "n anal*J"n+ %e (aa +a%ere( # arr"5e a %e es"7ae( a"r7are 5al&e # ,e "n)l&(e( "n %e #r("nan)e )#na"n"n+ %e s)%e(&le # a"r 7are 5al&es.
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G"5en %ese ("eren a''r#a)%es # +&"(e %e assess#r$ " )an rea("l* ,e seen %a %e C#(e ("( n# "nen( # %a5ea r"+"( r&le #r %e 5al&a"#n # 'r#'er*$ -%")% "s ae)e( ,* a 7&l"&(e # )"r)&7san)es -%")% n# r&le )#&l(#resee #r 'r#5"(e #r. T%&s$ -%a a %"n+ %as )#s "s n# s"n+&lar an( "nall",le )r"er"#n # "s 7are 5al&e.

A))#r("n+l*$ %"s C#&r %#l(s %a %e 'r#5"s# ("re)"n+ %a %e real 'r#'er* a! ,e ,ase( #n %e a)&al a7#&nrele)e( "n %e (ee( # )#n5e*an)e #r %e 're5a"l"n+ BIR J#nal 5al&e "s "n5al"( n# #nl* ,e)a&se " 7an(aes ane!)l&s"5e r&le "n (eer7"n"n+ %e a"r 7are 5al&e ,& 7#re s# ,e)a&se " (e'ars r#7 %e esa,l"s%e( 'r#)e(&ressae( "n %e L#)al Assess7en Re+&la"#ns N#. 1?2: an( &n(&l* "nereres -"% %e (&"es sar"l* 'la)e( &'#n%e l#)al assess#r9,* )#7'leel* ("s'ens"n+ -"% %"s anal*s"s an( ("s)re"#n -%")% %e C#(e an( %e re+&la"#nsre&"re # ,e e!er)"se(. An #r("nan)e %a )#nra5enes an* sa&e "s ultra viresan( 5#"(.2

F&r%er$ " "s n#e( %a %ere "s n#%"n+ "n %e C%arer # &eJ#n C"*4an( %e &eJ#n C"* Re5en&e C#(e #122041%a a&%#r"Je '&,l") res'#n(ens # a''ra"se 'r#'er* a %e )#ns"(era"#n sae( "n %e (ee( #)#n5e*an)e.

Us"n+ %e )#ns"(era"#n a''ear"n+ "n %e (ee( # )#n5e*an)e # assess #r a''ra"se real 'r#'er"es "s n# #nl* "lle+als"n)e %e a''ra"sal$ assess7en$ le5* an( )#lle)"#n # real 'r#'er* a! s%all n# ,e le # an* 'r"5ae'ers#n$4:,& " -"ll )#7'leel* (esr#* %e &n(a7enal 'r"n)"'le "n real 'r#'er* a!a"#n ? %a real 'r#'er* s%all,e )lass""e($ 5al&e( an( assesse( #n %e ,as"s # "s a+-ua/ u*ere+ar(less # -%ere l#)ae($ -%#e5er #-ns "$ an(-%#e5er &ses ".40Ne)essar"l*$ all#-"n+ %e 'ar"es # a 'r"5ae sale # (")ae %e a"r 7are 5al&e # %e 'r#'er*

-"ll ("s'ense -"% %e ("s"n)"#ns # a)&al &se sae( "n %e C#(e an( "n %e re+&la"#ns.

T%e "n5al"("* # %e assess7en #r a''ra"sal s*se7 a(#'e( ,* %e 'r#5"s# "s n# )&re( e5en " %e 'r#5"s#7an(aes %e )#7'ar"s#n # %e sae( )#ns"(era"#n as a+a"ns %e 're5a"l"n+ BIR J#nal 5al&e$ -%")%e5er "s %"+%er$,e)a&se an "ne+ral 'ar # %a s*se7 s"ll 'er7"s 5al&"n+ real 'r#'er* "n ("sre+ar( # "s a)&al &se.

In %e sa7e 5e"n$ %ere "s als# n#%"n+ "n %e C#(e #r %e re+&la"#ns s%#-"n+ %e )#n+ress"#nal "nen # re&"rean "77e("ae a(6&s7en # a!es #n %e ,as"s # %e laes 7are (e5el#'7ens as$ "n a)$ real 'r#'er*assess7ens 7a* ,e re5"se( an(@#r "n)rease( #nl* #n)e e5er* %ree /0 *ears.43C#nse&enl*$ %e real 'r#'er*a! ,&r(en s%#&l( n# ,e "ner'ree( # "n)l&(e %#se ,e*#n( -%a %e C#(e #r %e re+&la"#ns e!'ressl* an()learl* sae.

S"ll an#%er )#nse&en)e # %e 'r#5"s# "s # 'r#5"(e a )%"ll"n+ ee) #n real 'r#'er* #-ners #r a(7"n"sra#rs# ener reel* "n# )#nra)s rele)"n+ %e "n)reas"n+ 5al&e # real 'r#'er"es "n a))#r(an)e -"% 're5a"l"n+ 7are)#n(""#ns. W%"le %e L#)al G#5ern7en C#(e 'r#5"(es %a %e assess7en # real 'r#'er* s%all n# ,e "n)rease(#ener %an #n)e e5er* %ree /0 *ears$4%e &es"#ne( 'ar # %e 'r#5"s# s&,6e)s %e real 'r#'er* # a a!,ase( #n %e a)&al a7#&n a''ear"n+ #n %e (ee( # )#n5e*an)e #r %e )&rren a''r#5e( J#nal 5al&a"#n # %eB&rea& # Inernal Re5en&e 're5a"l"n+ a %e "7e # sale$ )ess"#n$ ranser an( )#n5e*an)e$ -%")%e5er "s %"+%er. Ass&)%$ an* s&,se&en sale (&r"n+ %e %ree?*ear 'er"#( -"ll res&l "n a real 'r#'er* a! %"+%er %an %e a!assesse( a %e las 'r"#r )#n5e*an)e -"%"n %e sa7e 'er"#(. T# sa5e #n a!es$ real 'r#'er* #-ners #ra(7"n"sra#rs are #r)e( # %#l( #n # %e 'r#'er* &n"l aer %e sa"( %ree?*ear 'er"#( %as la'se(. S%#&l( %e*n#ne%eless (e)"(e # sell -"%"n %e sa"( %ree?*ear 'er"#($ %e* are )#7'elle( # ("s'#se %e 'r#'er* a a 'r")en# e!)ee("n+ %a #,a"ne( r#7 %e las 'r"#r )#n5e*an)e "n #r(er # a5#"( a %"+%er a! assess7en. In %ese -#s)enar"#s$ real 'r#'er* #-ners are ee)"5el* 're5ene( r#7 #,a"n"n+ %e ,es 'r")e '#ss",le #r %e"r 'r#'er"esan( &n(&l* %a7'ers %e e&"a,le ("sr",&"#n # -eal%.

W%"le %e sae 7a* le+""7ael* (e)"(e # sr&)&re "s a! s*se7 # ("s)#&ra+e ra'"( &rn#5er "n #-ners%"' #real 'r#'er"es$ s&)% sae "neres 7&s ,e e!'ressl* sae( "n %e e!e)&"n+ sa&e #r " )an a leas ,e +leane(r#7 "s 'r#5"s"#ns.

In %e )ase a ,ar$ %ere "s n#%"n+ "n %e L#)al G#5ern7en C#(e$ %e "7'le7en"n+ r&les an( re+&la"#ns$ %el#)al assess7en re+&la"#ns$ %e &eJ#n C"* C%arer$ %e &eJ#n C"* Re5en&e C#(e # 1220 an( %e W%ereas)la&ses # %e 122 Or("nan)e r#7 -%")% %"s C#&r )an (ra-$ a %e 5er* leas$ an "n"7a"#n # %"s sae"neres. As s&)%$ %e 'r#5"s# 7&s ,e sr")en (#-n #r ,e"n+ )#nrar* # '&,l") '#l")* an( #r resra"n"n+ ra(e.44
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In "ne$ '&,l") res'#n(en &eJ#n C"* G#5ern7en e!)ee(e( "s sar* a&%#r"* -%en " ena)e( %e 'r#5"s# "n&es"#n. T%e 'r#5"s"#n "s %&s n&ll an( 5#"( a' initio#r ,e"n+ ultra viresan( #r )#nra5en"n+ %e 'r#5"s"#ns # %eL#)al G#5ern7en C#(e$ "s "7'le7en"n+ re+&la"#ns an( %e L#)al Assess7en Re+&la"#ns N#. 1?2:. As s&)%$ "a)&"re( n# le+al ee) an( )#nerre( n# r"+%s r#7 "s "n)e'"#n.

A -#r( #n %e a''l")a,"l"* # %e (#)r"ne "n %"s (e)"s"#n. I a''l"es #nl* "n %e (eer7"na"#n # real esae a!'a*a,le ,* #-ners #r a(7"n"sra#rs # real 'r#'er*.

In l"+% # %e #re+#"n+ ("s&"s""#ns$ a((ress"n+ %e "ss&e # rer#a)"5"* # %e re'eal"n+ #r("nan)e "s ren(ere(&nne)essar*.

HEREFORE$ %e 'e""#n "s %ere,* GRANTED. T%e assa"le( '#r"#n # %e 'r#5"s"#ns # Se)"#n 0 # &eJ#n C"*Or("nan)e N#. 0$ Ser"es # 122 "s %ere,* (e)lare( "n5al"(.

Pe""#ners )la"7 #r re&n($ %#-e5er$ 7&s ,e l#(+e( -"% %e L#)al B#ar( # Assess7en A''eals$ " " "s n#,arre( ,* %e sa&e # l"7"a"#ns.

SO ORDERED.

[G.R. No. 106=. "ar+) 27, 1998]

RA&! H. SES4REO,petitioner, vs. ENTRA! 4OARD OF ASSESS"ENT AEA!S a( THE IT$ ASSESSOROF E4& IT$, respondents.

D E I S I O N

ANGANI4AN,J.


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In res#l5"n+ %e 5al"("* # rer#a)"5e real esae a! assess7ens$ 7a* %e Cenral B#ar( # Assess7enA''eals an( %ereaer %e S&'re7e C#&r ae &' an( )#ns"(er "ss&es n# ra"se( ,e#re %e L#)al B#ar( #Assess7en A''ealsM F#r %e '&r'#se # assess"n+ ,a) a!es #n real esae$ -%a "s %e 7ean"n+ # %e '%rase(e)lare( #r %e "rs "7eM S'e)"")all*$ 7a* s&)% ,a) a!es ,e assesse( #n a 'r#'er* "n""all* (e)lare( as ares"(en"al %#&se # sr#n+ 7aer"als aer %e C"* Assess#r ("s)#5ere( *ears laer %a s&)% 'r#'er* -as aerall a res"(en"al ,&"l("n+ )#ns"s"n+ # #&r s#re*s -"% a "% s#re* &se( as r## (e)M

T%ese are s#7e # %e &es"#ns ra"se( "n %"s 'e""#n # ann&l an( se as"(e %e Res#l&"#n 1al&e -as a''l"e( "n %e assess7en."&(a e H"6#s (e Pe(r# P. R#!as vs. Raer* 1219


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T%"s (eser5es s)an )#ns"(era"#n. I "s a 7aer # 'la"n )#77#n sense %a a ,&"l("n+ -"% 7#re l##rs %as a%"+%er 7are 5al&e %an #ne -"% e-er l##rs$ 'r#5"(e( %a ,#% are # %e sa7e 7aer"als. Hen)e$ %e a!(e)lara"#n # %e ,&"l("n+ "n &es"#n s%#&l( %a5e a))&rael* rele)e( "s a)&al area an( n&7,er # l##rs$ %ese,e"n+ ne)essar* #r %e a))&rae 5al&a"#n %ere#.

e-'-'o(er* Four-) I**ueApplication of #ection $) of PD %'%

Pe""#ner ar+&es %a %e CBAA erre( "n re&s"n+ # a''l* Se)"#n :0 # PD 343 -%")% 'r#5"(es

Se)"#n :0. Certi#ication o# Revised 5alues to the )ecretar+ o# *inance.W%en %e 'r#5"n)"al #r )"* assess#r s%all%a5e "n"s%e( a +eneral re5"s"#n # 'r#'er* assess7ens #r an* 'r#5"n)e$ 7&n")"'al"* #r )"*$ %e s%all s# )er"* #%e Se)rear* # F"nan)e an( %e assess7ens s%all ,e)#7e ee)"5e an( a!es s%all a))r&e an( ,e 'a*a,le%ere&n(er "n a))#r(an)e -"% %e 'r#5"s"#ns # %"s C#(e.

Pe""#ner )la"7s %a Res'#n(en C"* Assess#r # Ce,& C"* %as n# *e )#7'lee( %e +eneral re5"s"#n #'r#'er* assess7ens #r *ears 1291?1293 an( %as n# *e s&,7"e( %e )er"")a"#n re&"re( ,* Se)"#n :0 # PD343 # %e Se)rear* # F"nan)e; %en)e$ %e 7a* n# *e ,e %el( l"a,le # 'a* an* assess7en.03

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Real Tax Cases - CAPPAL

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