Rules on Assessment Appeals Procedure

Title, date, effectivity, and authority

The Rules are entitled: Consolidated and Revised Rules of Procedure Before the Local Boards of Assessment Appeals and the Central Board of Assessment Appeals (LBAA and CBAA).
The CBAA date of issuance is February 01, 2017.
The Rules were adopted on 02 May 2016 and filed on 01 February 2017.
These Rules are promulgated under the authority of Section 230 of Republic Act No. 7160 (Local Government Code of 1991).
The Rules are published in NAR Vol. 28 No. 4 (January–March 2017).

Definitions and institutional meaning

Defined terms in the Local Government Code relative to assessment and collection of real property taxes apply when used in these Rules.
In these Rules, “Central Board” or “CBAA” means the Central Board of Assessment Appeals.
In these Rules, “Local Board” or “LBAA” means the Local Board of Assessment Appeals of the province, city, or municipality within Metropolitan Manila, depending on where the subject property is situated.

Local Board composition, quorum, jurisdiction

Each Local Board is composed of the Registrar of Deeds as Chairman, the provincial or city prosecutor, and the provincial or city engineer as members, serving ex officio without additional compensation.
The Chairman may designate any provincial or city employee to serve as secretary without additional compensation.
If there is no provincial/city engineer, the district engineer serves as member.
If any of the foregoing officials is absent, the persons performing their duties in acting capacities or as duly designated officers-in-charge automatically become Chairman or member, as applicable.
Meetings and expenses of the Local Board are charged against the general fund of the province or city in accordance with Section 228 of Republic Act No. 7160.
A majority of members constitutes a quorum, and the majority vote is required to promulgate any decision, resolution, or final order.
The Local Board has original jurisdiction to hear and decide:
- appeals of owners/administrators from actions of provincial, city, or municipal assessors in assessments of real property; and
- appeals from actions of provincial, city, or municipal treasurers in collection of real property taxes, special levies, or other real property taxes under Title Two, Book II of Republic Act No. 7160.

Local Board proceedings and timelines

The Local Board, as far as practicable, must decide an appeal within one hundred twenty (120) days from receipt of the appeal.
Local Board decisions must be based on substantial evidence or relevant evidence on record as a reasonable mind might accept as adequate to support the conclusion.
In appellate exercise, the Local Board may:
- summon witnesses,
- administer oaths,
- conduct ocular inspections,
- take depositions, and
- issue subpoena and subpoena duces tecum.
Local Board proceedings are conducted solely to ascertain facts and do not require strict adherence to technical rules applicable in judicial proceedings.
Parties aggrieved by a Local Board decision, resolution, or final resolution may appeal to the CBAA within thirty (30) days from notice.
Within the period for perfecting an appeal to the CBAA, the aggrieved party may file a motion for reconsideration after serving the adverse party’s copy; only one such motion is allowed.
The adverse party may file an Opposition to the motion for reconsideration within ten (10) days from receipt; failure to oppose renders the motion deemed submitted for resolution.
An appeal on assessment does not suspend collection of corresponding realty taxes on the property involved as assessed by the assessor, but payment is not a condition precedent to hearing the appeal provided the petitioner posts an appropriate surety.

Who may appeal and when to file

Any owner or any person having legal interest may appeal to the Local Board where the subject property is situated if the person is:
- dissatisfied with the assessor’s action in assessment; or
- dissatisfied with the treasurer’s action or inaction on a claim for refund or credit of taxes paid under protest; or
- dissatisfied with the treasurer’s action or inaction on a claim for refund or credit of taxes paid but later found illegal or erroneous by competent authority.
Appeals must be filed within sixty (60) days in the following situations:
- If the appeal concerns perceived errors in assessment, the appeal is filed within sixty (60) days from the appellant’s receipt of the written notice of assessment from the assessor, with the concerned assessor as respondent.
- If the appeal concerns denial by the treasurer of a claim for refund or credit of realty taxes paid under protest under Section 252 of Republic Act No. 7160 without questioning the validity or correctness of the assessment:
  - within sixty (60) days from receipt of written notice of denial, if denial is made within sixty (60) days from treasurer’s receipt of the claim; or
  - within sixty (60) days after lapse of sixty (60) days from the date the claim was filed with the treasurer if the treasurer fails to act within sixty (60) days.
- If the appeal concerns denial by the treasurer of a claim under Section 253 of Republic Act No. 7160 for refund or credit of realty taxes, or any other tax under Title Two, Book II of Republic Act No. 7160, paid but later found illegal or erroneous by competent authority:
  - within sixty (60) days from receipt of written notice of denial, if denial is made within sixty (60) days from treasurer’s receipt of the claim; or
  - within sixty (60) days after lapse of sixty (60) days from the date the claim was filed with the treasurer if the treasurer fails to act within sixty (60) days.

How Local Board appeals are taken

An appeal is taken by filing with the Local Board a petition under oath in the prescribed form, together with copies of tax declarations and such affidavits or documents supporting the petition.
The petition must allege the petitioner’s causes of action, state the names and addresses of petitioner(s) and respondent(s), be signed under oath, and include a declaration of non-forum shopping.
The initiating party is the “Petitioner-Appellant” and the adverse party is the “Respondent-Appellee.”
The captions of pleadings and the Local Board’s decisions/resolutions/orders must state the names of all real parties in interest, natural or juridical, or legal entities authorized by law.
Upon receipt of an appeal, the Local Board assigns a case number and issues an order to the respondent, with notice that the respondent must file an Answer or Comment within fifteen (15) days from receipt; otherwise the Local Board declares the respondent in default and proceeds to hear and resolve.
The date of mailing controls filing if pleadings are sent through registered mail or courier authorized by the Board.
No pleading is considered without proof of service to opposing parties and payment of the mandatory filing fee.
Notices, and copies of resolutions or orders are served personally or by registered mail or courier authorized by the Local Board.
Decisions and final awards are served on both parties and their counsel/representative by personal service, registered mail, or courier authorized by the Local Board.
For purposes of appeal, the period counts from receipt of decisions/resolutions/orders by the counsel or representative of record.

Local Board service rules and procedural mechanics

The serving officer must submit a return within two (2) days from the date of service, stating the officer’s name, persons served, and the date of receipt, and attaching it to the records.
For service by registered mail or courier, addressee and date of receipt must be written in the return card or proof of service.
The return is prima facie proof of the facts indicated therein.
Service by registered mail or courier is complete upon receipt by the addressee or agent.
If the addressee fails to claim mail within five (5) days from the date of first notice by the postmaster, service takes effect after that time.
Counsel or authorized representatives bind clients in procedural matters, but cannot enter into a compromise agreement without a special power of attorney or express consent for full or partial discharge of a client’s claim.
After petition and answer (if any), the Local Board sets the case for a preliminary hearing for possible settlement; if non-appearance occurs, a second schedule is set.
If a party still fails to appear at the second conference despite due service, the party waives the right to file a position paper; the Local Board terminates the conference and directs the petitioner to file a verified position paper and submit evidence for decision based on the record.
The Local Board may conduct an ocular inspection and must produce an ocular inspection report within seven (7) days, which forms part of the records.
The Local Board directs simultaneous submission of verified position papers with supporting documents and affidavits on a date within fifteen (15) days from termination of preliminary conference.
No additional evidence or amendment is allowed after filing position papers unless the Local Board grants leave.
Judicial affidavits are considered as witnesses’ direct testimony.
A reply may be filed within ten (10) days from receipt of the position paper; the reply must not allege or prove new facts or causes of action not raised in the petition/amended petition/answer/position paper.
Immediately after position papers or reply, the Local Board motu proprio determines whether a hearing or clarificatory conference is needed and may ask clarificatory questions, including subpoena of relevant documentary evidence, to elicit facts/information.
After position papers/replies are submitted (or the period expires), the case is deemed submitted for decision unless a hearing or clarificatory conference is called; after termination, it is deemed submitted for decision.

Local Board motions, decisions, evidence standards

A party may file one motion for reconsideration within the period for perfecting an appeal; the adverse party must oppose within ten (10) days, else the motion is deemed submitted for resolution.
Local Board decisions must rest on substantial evidence or relevant evidence on record adequate to support the conclusion.

Local Board legal fees and LRF

No appeal to the Local Board is considered filed unless fees are paid to the Local Treasurer of the LGU.
Filing fees depend on the Amount of Disputed Realty Tax Assessment Involved:
- Less than P50,000.00: P300.00
- P50,000.00 or more but less than P200,000.00: P450.00
- P200,000.00 or more but less than P400,000.00: P600.00
- P400,000.00 or more but less than P600,000.00: P800.00
- P600,000.00 or more but less than P800,000.00: P1,000.00
- P800,000.00 or more but less than P1,000,000.00: P1,200.00
- P1,000,000.00 or more but less than P2,000,000.00: P2,100.00
- P2,000,000.00 or more but less than P3,000,000.00: P3,000.00
- P3,000,000.00 or more but less than P4,000,000.00: P3,900.00
- P4,000,000.00 or more but less than P5,000,000.00: P4,800.00
- P5,000,000.00 or more but less than P6,000,000.00: P5,700.00
- P6,000,000.00 or more but less than P7,000,000.00: P6,600.00
- P7,000,000.00 or more but less than P8,000,000.00: P8,400.00
- P8,000,000.00 or more but less than P9,000,000.00: P9,300.00
- P9,000,000.00 or more but less than P10,000,000.00: P10,200.00
- P10,000,000.00 or more: P10,200.00 for the first P10,000,000 plus P100 for every P100,000, or fraction thereof, in excess of P10,000,000; total fees may not exceed P12,000.00 per case.
A Legal Research Fund (LRF) is collected for the benefit of the University of the Philippines Law Center (UP Law Center):
- An additional amount equal to 1% of the applicable filing fees, but not lower than P10.00 in each case.

Central Board jurisdiction and structure

The CBAA has exclusive jurisdiction to hear and decide all appeals from Local Board decisions, resolutions, and final orders.
The CBAA is composed of a chairperson and two (2) commissioners-members appointed by the President for a term of seven (7) years, without reappointment.
For first appointments, the chairman serves seven (7) years, one member serves five (5) years, and the other serves three (3) years.
Appointments to vacancies are for the unexpired portion of the predecessor’s term.
No member is appointed or designated in temporary or acting capacity.
Members must be Filipino citizens, at least forty (40) years old at appointment, and must be members of the Bar or Certified Public Accountants for at least ten (10) years immediately preceding appointment.
The chairperson’s salary grade is equivalent to Director III under the Salary Standardization Law, exclusive of allowances and other emoluments; commissioners’ salary grade is equivalent to Director II under the same law, exclusive of allowances and other emoluments.
The Central Board may establish and organize staffs/offices/units, prescribe titles/functions/duties of members, and adopt its own rules and regulations.
A majority of CBAA members constitutes a quorum, and a majority vote is required to promulgate decisions, resolutions, or final orders.
The chairperson presides over sessions; in effective absence/incapacity, either commissioner-member acts as Acting Chairperson.
The CBAA exercises full control of the entire proceedings of every case called and presided by it.
Any intention to write a dissenting opinion must be filed within the period prescribed for deciding or resolving the appeal; otherwise the dissent is not part of the case records.
No motion to inhibit the entire CBAA is entertained; however, any commissioner-member may inhibit himself/herself by written statement of legal/justifiable grounds.

Hearing Officers and their powers

Hearing Officers are appointed by the CBAA pursuant to civil service laws and rules.
There is one Hearing Officer each for Luzon, Visayas, and Mindanao, holding office in Manila, Cebu City, and Cagayan de Oro City, respectively.
Hearing Officers serve for a term of six (6) years, without reappointment until successors are appointed and qualified.
Hearing Officers must have the same qualifications as Judges of the Municipal Trial Courts.
Hearing Officers have salary grade equivalent to Director I under the Salary Standardization Law, exclusive of allowances and other emoluments.
Hearing Officers try and receive evidence on appealed cases as directed and may summon witnesses, administer oaths, conduct ocular inspections, take depositions, and issue subpoenas and subpoena duces tecum.
Hearing Officers conduct hearings or clarificatory conferences personally and may ask questions to clarify law or facts.
Hearing Officers may allow testimonial evidence with right of cross-examination by the opposing party and must limit evidence to matters relevant to the issue for a just and speedy disposition.
A Hearing Officer may voluntarily inhibit himself/herself in writing.
On a party’s motion (including relationship within the fourth civil degree of consanguinity or affinity or other justifiable grounds), the Hearing Officer may inhibit; the CBAA resolves within five (5) days from filing.
An order granting or denying a motion for inhibition is inappealable.

How appeals to the Central Board work

A Central Board appeal is taken by filing a Notice of Appeal and the appeal with the Local Board that rendered the decision/resolution/final order.
Simultaneously, five (5) legibly typewritten/printed copies of the Notice of Appeal and Appeal are filed with the CBAA’s main headquarters in Manila or its field office where the property is located, after serving copies to the adverse party or counsel.
No amendment pleading is allowed unless with leave of the CBAA, and amended pleadings must be filed before submission of position paper.
The “petition” is a pleading alleging the petitioning party’s causes of action, stating names and addresses of parties, signed under oath with declaration of non-forum shopping.
A perfected appeal requires that it:
- states the date the appellant received the appealed decision/resolution/final order;
- is verified by the appellant himself;
- is in the form of a memorandum of appeal stating grounds, arguments, and relief prayed for; and
- is accompanied by a certificate of non-forum shopping, proof of service, and proof of payment of required legal fees.
Filing an appeal without complying with all requisites does not stop the running of the period for perfecting the appeal.
Upon receipt, the CBAA Secretary or Records Officer dockets and assigns a case number; appeals are numbered consecutively by order of receipt.
Case numbers for Luzon appeals are preceded by “L-”, for Visayas by “V-”, and for Mindanao by “M-”.
The respondent-appellee may file an answer or comment within fifteen (15) days from receipt of the appeal, in five (5) copies, with proof of service to adverse party or counsel.

Central Board record transmittal, proceedings, and summons

Within ten (10) days from receipt of the Notice of Appeal, the Local Board must transmit complete original records, including transcript of stenographic notes if any, to CBAA main headquarters or field office.
Transmitted records must be page-numbered consecutively from earliest to latest and accompanied by a certificate that they are original and complete.
Central Board proceedings are non-litigious; technicalities of law and procedure in courts do not strictly apply, subject to due process.
The CBAA or Hearing Officer may use reasonable means to ascertain facts speedily and objectively, including ocular inspection and examination of well-informed persons as expert witnesses.
The parties may be represented by counsel, but the chairperson/presiding commissioner/hearing officer must exercise complete control at all stages.
Within seven (7) days from receipt of the answer (or lapse of time to file), the Hearing Officer issues summons specifying the date, time, and place of preliminary conference.
Summons must be served personally within two (2) days from receipt by authorized personnel or by registered mail or courier authorized by CBAA, with service in accordance with Rules of Court in special circumstances.
The serving personnel submits a summons return within two (2) days from service; the return is attached to the records.
Return is prima facie proof; service by mail/courier is complete upon receipt by addressee/agent, and if not claimed within five (5) days from first notice, service takes effect after such time.

Prohibited motions and motion to dismiss

The following cannot be allowed/acted upon:
- a motion to dismiss except on grounds of lack of jurisdiction over subject matter, improper venue, res judicata, prescription, and forum shopping;
- a motion for reconsideration of any decision or order of the Local Board;
- an appeal from any interlocutory order of the LBAA including orders denying a motion to dismiss or denying a motion to inhibit; and
- similar pleadings/motions/petitions intended to circumvent these restrictions.
Before the preliminary conference date, the respondent may file a motion to dismiss on allowed grounds.
The CBAA acts on the motion before issuance of an order requiring submission of position paper.
An order denying a motion to dismiss, or suspending its resolution until final determination, is not appealable.
No motion to dismiss is allowed after the lapse of the period for filing under the rule.

Preliminary conference, non-appearance, settlements

The Hearing Officer calls the case for preliminary conference to:
- seek possible settlement on fair compromise;
- determine real parties;
- determine necessity of amending the complaint and including all causes of action;
- define and simplify issues;
- enter admissions or stipulations of facts;
- list witnesses and nature/number/dates of hearings; and
- address all other preliminary matters.
Any agreement/compromise must be reduced to writing and signed by parties’ authorized representatives and their counsels.
A compromise requires Central Board approval; once approved it is final, binding, and has force/effect of a judgment.
If the petitioner does not appear in two (2) preliminary conference settings despite due notice, the case is dismissed without prejudice.
If the respondent does not appear in the first setting, a second conference is scheduled; if respondent still fails to appear despite due service, respondent waives right to file a position paper, and the Hearing Officer terminates conference, directs petitioner to file a verified position paper and submit evidence, and decision follows based on evidence on record.

Clarificatory hearings and evidence submissions

The CBAA, any commissioner-member, or Hearing Officer may conduct an ocular inspection at any time during working hours in presence of both parties, and may ask persons for information/data concerning any matter relative to the petition object.
The Hearing Officer must submit the ocular inspection report within seven (7) days.
After submission of position paper or reply, the CBAA/Hearing Officer motu proprio determines whether a hearing or clarificatory conference is needed and may ask clarificatory questions, including subpoena of relevant documentary evidence from any party or witness.
Hearings/clarificatory conferences proceed continuously; postponement/continuance is allowed only on meritorious grounds subject to expeditious disposition.
The hearing or clarificatory conference must be terminated within thirty (30) calendar days from the date of the initial clarificatory conference.
The Hearing Officer prepares a written summary of proceedings, including substance of evidence presented, in consultation with parties; the summary is signed by the parties and forms part of the records.
If a party fails to appear during hearing/clarificatory conference despite due notice, proceedings are conducted ex parte and the case is deemed submitted for decision.
Simultaneous submission of verified position papers with supporting documents and affidavits is due on a date within fifteen (15) days from termination of preliminary conference; parties must submit both soft copy (pdf and word) and hard copy.
No additional evidence or amendment after filing position papers unless with leave of the CBAA.
Position papers must cover only claims/causes of action stated in the petition or amended petition and include supporting documents and judicial affidavits treated as direct testimony.
A reply may be filed within ten (10) days from receipt of position paper; it may not allege/prove facts or causes of action not referred to in the position paper or earlier pleadings.

Submission for decision and decision requirements

After position papers/replies are submitted (or period lapses), the case is deemed submitted for decision unless a hearing/clarificatory conference is called; after termination, it is deemed submitted for decision.
Central Board notices/resolutions/orders/decisions are served under the Local Board service framework stated in Section 6 Rule VI.
The CBAA decides cases, as far as practicable, within ninety (90) days from submission.
Decisions/resolutions/final orders must be based on substantial evidence or relevant evidence adequate to support conclusions.
Decisions must be clear and concise and include:
- a brief statement of facts,
- issues involved,
- applicable laws or rules,
- conclusions and reasons, and
- the specific remedy or relief granted.

Motions, withdrawal, finality, and executory entry

A motion for reconsideration may be filed within fifteen (15) days from receipt of decision/resolution/final order, after serving adverse party, and only one such motion is allowed.
Opposition to motion for reconsideration must be filed within ten (10) days from receipt; failure to oppose renders motion deemed submitted for resolution.
The appellant may withdraw the appeal any time before resolution by filing written notice of withdrawal with CBAA after furnishing a copy to the adverse party.
Withdrawal results in no further proceedings; it has the same effect as dismissal.
If no motion for reconsideration is filed within the time under Section 23, the CBAA decision/order becomes final and executory.
The CBAA issues a certificate of finality upon expiration; if return cards/post office/courier certifications or other proofs of service are missing, the certificate may be issued after sixty (60) calendar days from the date of mailing.
Entry of judgment occurs in the Book of Entries of Decisions as soon as the decision/order becomes final, signed by the Secretary with notation of finality.
The Secretary notifies parties in writing of