e. Taxpayer Remedies in Real Property Taxation

REFUNDS OR CREDITS OF RPT

If the protest is granted, the amount or portion of the tax protested shall be:

• Refunded to the protestant, or
• Applied as tax credit against his existing or future tax liability.

If the protest is denied or upon the lapse of the 60-day period to decide, the taxpayer may appeal in accordance with the rules on appeal below. (LGC, Sec. 252)¹

Repayment of Excessive Collections

When an assessment is found to be illegal or erroneous and the tax is accordingly reduced or adjusted, the taxpayer may file a written claim for:

• Refund; or
• Credit for taxes and interests. (LGC, Sec. 253)²

Where to file: With the provincial or city treasurer.

When to file: Within 2 years from the date the taxpayer is entitled to such reduction or adjustment.

Period to decide: Within 60 days from receipt.

In case of denial, the taxpayer may appeal in accordance with the rule on appeal below.

Action Assailing Validity of Sale at Public Auction

No court shall entertain any action assailing the validity of any sale at public auction of real property until the taxpayer shall have deposited with the court the amount for which the real property was sold plus interest of 2% per month from the date of sale to the time of the institution of the action.

Purpose: The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails.

A court shall not declare a sale at public auction invalid by reason of irregularities or informalities in the proceedings unless the substantive rights of the delinquent owner or the person having legal interest therein have been impaired. (LGC, Sec. 267)³

However, the deposit required under Section 267, whose purpose it is to ensure the collection of the tax delinquency, should not be required of NHA, being a tax-exempt entity, before it can bring suit assailing the validity of the auction sale. Hence, its tax exemption extends to RPT. (National Housing Authority v. Iloilo City, G.R. No. 172267, 20 August 2008)⁴