(a) Payment Under Protest; Exceptions

PAYMENT UNDER PROTEST

No protest shall be entertained unless the taxpayer pays the tax first. There shall be annotated on the tax receipts the words "paid under protest". The tax paid under protest shall be held in trust by the treasurer. (LGC, Sec. 252)¹

• In case of illegal assessment, the taxpayer may directly resort to judicial action without paying under protest the assessed tax. (City of Lapu-Lapu v. Philippine Economic Zone Authority, G.R. No. 184203, 26 November 2014)²

Erroneous Assessment vs. Illegal Assessment

An erroneous assessment presupposes that the taxpayer is subject to the tax but is disputing the correctness of the amount assessed. With an erroneous assessment, the taxpayer claims that the local assessor erred in determining any of the items for computing the real property tax, i.e., the value of the real property or the portion thereof subject to the tax and the proper assessment levels. In case of an erroneous assessment, the taxpayer must exhaust the administrative remedies provided under the LGC.

FILE PROTEST WITH TREASURER

Where to file: To the local treasurer

When to file: Within 30 days from payment of the tax

Period to decide: 60 days from receipt (LGC, Sec. 252)³