5. Taxpayer Remedies in Local Taxation

Taxpayer Remedies and Protective Principles in Local Taxation

In the administrative collection of local revenue through distraint and levy, a specific statutory remedy is available to the taxpayer to prevent the disposition of their property. At any time before the date fixed for the public auction or sale of the levied property, the taxpayer may stay the proceedings by paying the taxes, fees, charges, penalties, and interests due¹. If the taxpayer fails to pay, the local treasurer proceeds with the public sale in accordance with the required notice and publication rules¹.

When resisting an assessment or disputing the application of a local tax measure, taxpayers are protected by the explicit rules of interpretation under the Local Government Code. In case of doubt, any tax ordinance or revenue measure must be construed strictly against the local government unit enacting it and liberally in favor of the taxpayer². Conversely, any tax exemption, incentive, or relief claimed pursuant to the Code is construed strictly against the claimant².

Furthermore, taxpayers may contest local tax measures that violate the mandatory fundamental principles governing local revenue-raising powers³. Local taxes, fees, charges, and other impositions must be equitable and based as far as practicable on the taxpayer's ability to pay, levied and collected exclusively for public purposes, and must not be unjust, excessive, oppressive, confiscatory, or contrary to law, public policy, national economic policy, or in restraint of trade³.