The annual appropriations for the salaries of the abovementioned positions and for such other positions as the Central Board may deem necessary to create hereafter, as well as sufficient appropriations for other operational requirements of the Board of Hearing Commissioners and its staff, shall henceforth be included in the annual budgets of the Department of Finance in the corresponding General Appropriations Decree or laws.
Any provision of law to the contrary notwithstanding, appointment to the positions of Central Board Chief Hearing Commissioner, Central Board Hearing Commissioners and Central Board Secretary shall be exempt from the requirements and restrictions of the Civil Service Law, rules and regulations as well as those pertaining to position-item classifications and salary standardization. Any government retiree may be appointed to the Board of Hearing Commissioners and upon his appointment, he shall not be required to reimburse or refund any gratuity received from the government nor shall any pension or annuity to which he is entitled be suspended or reduced on account of his employment. A member of the Board of Hearing Commissioners shall serve until he reaches the age of seventy unless he chooses to retire from the service or sooner removed for cause, as provided by law. The members of the Board of Hearing Commissioners shall be members of the bar, civil or mechanical engineers, or certified public accountants with at least five years supervisory and-or field experience in real property assessment work.
The Secretary of Finance, as Chairman of the Central Board of Assessment Appeals, shall appoint the members of the Board of Hearing Commissioners and its staff.
The initial sum of one hundred twenty five thousand pesos is hereby appropriated from the General Fund in the National Treasury, not otherwise appropriated, to finance the operations of the Central Board of Assessment Appeals. For every fiscal year thereafter, such sums as may be necessary for the operations of the said Board shall be included in the appropriations of the Department of Finance in the corresponding General Appropriations Decree or laws.
The Chairman and Members of the Central Board shall enter into the duties of their respective positions, without need of further appointment or special designation, immediately upon approval of this Code.
Section 36. Scope of Powers and Functions. The Central Board of Assessment Appeals shall have jurisdiction, over appealed assessment cases decided by the Local Board of Assessment Appeals. The said Board shall decide cases brought on appeal within twelve (12) months from the date of receipt, which decision shall become final and executory after the lapse of fifteen (15) days from the date of receipt of a copy of the decision by the appellant.
In the exercise of its appellate jurisdiction, the Central Board of Assessment Appeals, or upon express authority, the Hearing Commissioner, shall have the power to summon witnesses, administer oaths, take depositions, and issue subpoenas and subpoenas duces tecum.
The Central Board of Assessment Appeals shall adopt and promulgate rules of procedure relative to the conduct of its business.
Section 37. Effect of Appeals on the Payment of the Real Property Tax. Appeals on assessments of real property made under the provisions of this Code shall, in no case, suspend the collection of the corresponding realty taxes on the property involved as assessed by the provincial or city assessor, without prejudice to subsequent adjustment depending upon the final outcome of the appeal.
CHAPTER IV
IMPOSITION OF REAL PROPERTY TAX
Section 38. Incidence of Real Property Tax. There shall be levied, assessed and collected in all provinces, cities and municipalities an annual ad valorem tax on real property, such as land, buildings, machinery and other improvements affixed or attached to real property not hereinafter specifically exempted.
Section 39. Rates of Levy. The provincial, city or municipal board or council shall fix a uniform rate of real property tax applicable to their respective localities as follows:
(1) In the case of a province, the tax shall be fixed by ordinance of the provincial board at the rate of not less than one fourth of one percent but not more than one-half of one percent of the assessed value of real property.
(2) In the case of a city, the tax shall be fixed by ordinance of the municipal board or city council at the rate of not less than one-half of one percent but not more than two percent of the assessed value of real property.
The ordinance fixing the rate of real property tax shall be enacted by the local board or council not later than fifteenth day of September of the year next preceding the year the tax shall begin to accrue. Within five days after enactment, the board or council secretary shall forward the ordinance to the local chief executive for his approval and signature. If he considers any such ordinance prejudicial to the public welfare, he may veto it by signifying to the local board or council concerned his disapproval thereof in writing. The local board or council may, by a two-thirds (2/3) vote of all its members and within fifteen days from the date of receipt of a copy of the vetoed ordinance, repass the same over the veto, in which case it shall be deemed approved without the local chief executive's approval or signature. If the local chief executive fails to approve or veto the ordinance within ten days after receipt of a copy thereof, it shall likewise be deemed approved.
The ordinance fixing the rate of real property tax shall remain in full force and effect unless amended on or before September fifteenth of the year next preceding the one in which the amendment is to take effect. Any ordinance reducing the existing rates of real property tax shall be subject to review by the Secretary of Finance who shall act thereon within sixty days upon receipt of a copy thereof; otherwise, the reduced rates shall be deemed effective on the first day of January of the succeeding year.
Section 40. Exemptions from Real Property Tax. The exemption shall be as follows:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions and any government-owned corporation so exempt by its charter: Provided; however, That this exemption shall not apply to real property of the abovenamed entities the beneficial use of which has been granted, for consideration or otherwise, to a taxable person.
(b) Non-profit cemeteries or burial grounds.
(c) Charitable institutions, churches, personages or convents appurtenant thereto, mosques, and all land, buildings, and improvements actually, directly and exclusively used for religious or charitable purposes.
(d) Real property in any one city or municipality belonging to a single owner the entire assessed valuation of which is not in excess of five hundred pesos: Provided, however, That the property so exempt shall be assessed and records thereof kept as in other cases.
(e) Land acquired by grant, purchase or lease from the public domain for conversion into dairy farms for a period of five years from the time of such conversion; and machinery of a new and preferred industry as certified by the Board of Investments used or operated for industrial, agricultural, manufacturing or mining purposes, during the first three years of the operation of the machinery.
(f) Perennial trees and plants of economic value, except where the land upon which they grow is planted principally to such growth.
(g) Real property exempt under other laws.
CHAPTER V
SPECIAL LEVIES ON REAL PROPERTY
Section 41. An additional one per cent tax on real property for the Special Education Fund. There is hereby imposed an annual tax of one per cent on real property to accrue to the Special Education Fund created under Republic Act No. 5447, which shall be in addition to the real property tax which local governments are authorized to levy, assess and collect under this Code; Provided, however, That when the entire total assessed valuation of real property situated in a province or city assessable to any one person does not exceed three thousand pesos, the additional one per cent tax herein imposed shall not be collected.
Section 42. Additional ad valorem tax on idle lands. The President of the Philippines, at his discretion or upon recommendation of the Secretary of Finance, may authorize provinces, cities and municipalities to levy, assess and collect an additional real property tax on idle private lands at a rate of not exceeding two per cent per annum based on the prevailing assessed value of the property.
Section 43. Idle lands, coverage. For purposes of this Code, idle lands shall include the following:
(a) Agricultural lands more than five hectares in area suitable for cultivation, dairying, inland fishery and other agricultural uses, three-fourths of which remain uncultivated or unimproved as certified to by the provincial agriculturist. In the case of agricultural lands planted to permanent or perennial crops with at least one hundred trees to a hectare shall not be considered idle land. Lands actually used for grazing purposes shall not also be considered idle land:
(b) Urban lands in chartered cities and municipalities exceeding five thousand square meters in area, two-thirds of which remain unutilized or unimproved as certified to by the provincial or city assessor. This section shall likewise apply to residential lots or subdivisions duly approved by proper authorities, the ownership of which has been transferred to individual owners. If the acquired lots, however, remain idle because the subdivision itself is not developed in accordance with its subdivision plans, the tax imposable under Section forty-two of this Code on the individual lots shall be assessed on the subdivision and paid for by the subdivision owner. Individual lots of such subdivisions, the ownership of which has not been transferred to the buyer shall be considered as forming part of the subdivision.
Section 44. Idle lands exempt from tax. The special levy on idle lands shall not apply to landowners who are unable to improve, utilize or cultivate their lands due to any of the following causes:
(a) Adverse peace and order conditions as certified to by the provincial commander, unless, upon restoration of the peace and order in any locality duly certified by the said provincial commander and if within one year from the date of such certification the idle land has not been improved, utilized or cultivated, a tax may be imposed thereon pursuant to Section forty-two hereof.
(b) Financial loss of the landowner due to fire, flood, typhoon, earthquake and other causes of similar nature duly attested by the owner in an affidavit to be submitted to the provincial or city assessor stating the ground or grounds therein, unless the idle land is not improved to the extent prescribed in the next proceeding Section within two years from the date of the occurrence of the loss, in which case, the tax imposable under Section forty-two hereof may be levied.
(c) Existing court litigations involving the land subject to tax mentioned in this chapter as certified by the Court under which the case is pending unless said land is not improved within one year after the final adjudication of the case, to the extent provided in the next proceeding Section, in which case, the tax imposable under Section forty-two hereof may be levied.
(d) Necessity to leave the land in a fallow state as certified to by the provincial agriculturist stating, among others, the length of time after which the land shall be considered ready for production, unless the idle land is not improved to the extent prescribed in the next preceding Section within one year after the termination of the period, in which case, the tax imposable under Section forty-two hereof may be levied.
(e) Unfavorable physical factors, such as rocky nature of ground and uneven topography in the case of agricultural land, which render the land unsuitable for cultivation, as certified to by the provincial agriculturist.
In all cases the landowner shall be duly notified by the provincial or city assessor, as the case may be, of the imposition of the tax.
Section 45. Application for exemption. Within two years from the approval of this code, any person having legal interest on the land, desiring to avail of the exemption under Section 44 hereof, shall file the corresponding application therefor with the assessor of the province or city where the land is situated. The application shall state the ground or grounds under which the exemption is being claimed.
The Secretary of Finance shall promulgate rules and regulations for the proper implementation of the provisions of this Section.
Section 46. Listing of idle lands by the assessor. The provincial or city assessor shall make and keep an updated record of idle lands within one year after the approval of this Code and every year thereafter. For purposes of collection, the provincial or city assessor shall furnish a copy thereof to the provincial, city or municipal treasurer, as the case may be, who shall notify on the basis of such record the person having legal interest on the lands of the imposition of the additional tax.
Section 47. Special levy by local governments. The provincial, city, municipal boards or councils may, by ordinance, provide for the imposition and collection of a special levy on the lands comprised within the province, city, or municipality or parts thereof especially benefited by the laying out, opening, constructing, straightening, widening, grading, paying, curbing, walling, deepening, or otherwise establishing, repairing, enlarging, or improving public avenues, roads, streets, alleys, sidewalks, parks, plazas, bridges, landing places, wharves, piers, docks, levees, reservoirs, waterworks, water courses, esteros, canals, drains, and sewers: Provided, however, That the special levy herein authorized shall correspond only to a part not exceeding sixty per cent of the costs of said improvements or infrastructures financed by the province, city or municipality, as the case may be, including the costs of acquiring land and such other real property in connection therewith. Within the meaning of this Section, all lands comprised within the district benefited, except lands exempt from the real property tax under Section forty hereof, shall be subject to the payment of the special levy.
Section 48. Ordinance imposing a special levy. Tax ordinance providing for the levying and collection of a special levy shall describe with reasonable accuracy the nature, extent and location of the work to be undertaken; the probable cost of the proposed work so established, the limits whereof shall be stated by monuments and lines, and the number of annual installments, which shall not be less than five nor more than ten, in which said special levy shall be payable. The provincial board, municipal board or city council, or municipal council shall not be obliged, in the apportionment and computation of the special levy, to establish a uniform percentage of all lands subject to the payment of the tax for the entire district, but it may fix different rates for different parts or sections thereof, depending on whether such land is more or less benefited by the proposed work; nor shall the provincial board, the municipal board or city council, or municipal council be required to follow the percentage limitations imposed by Section thirty-nine of this Code.
The provincial, city or municipal engineer shall make the plans, specifications and estimates of the proposed work.
Section 49. Publication of proposed ordinance imposing a special levy. The proposed special levy or ordinance shall be published, with the list of the owners of the land affected thereby, once a week for four consecutive weeks in any newspaper published in the locality, one in English, and one in the local dialect, if there be any, and in default of local papers, in any newspaper of general circulation in the province, city or municipality. The said ordinance in English, and in the local dialect, shall also be posted in the city or municipality and places affected by said improvement, and shall also be published once a week during four consecutive weeks by crier.
The provincial, city or municipal secretary, shall, on application, furnish a copy of the proposed ordinance to each landowner affected, or his agent, and shall if possible, send to all a copy of said proposed ordinance by mail or messenger.
Sec 50. Protest against special levy. Not later than thirty days after the last publication of the ordinance and list of landowners included in the zone subject to special levy, a protest may be submitted to the provincial, municipal, or city board or council, signed by a majority of the landowners affected by the proposed work, setting forth the addresses of the signers and arguments in support of their objection or protest against the improvement to be made or against the special levy imposed by ordinance. If no protest is filed within the time and under the conditions above specified, the provincial, city or municipal ordinance shall become final and effective in all points after its approval by the corresponding board or council.
Section 51. Hearing a protest. The board or council, shall designate a date and place for the hearing of the protest filed in accordance with the next preceding Section and shall give reasonable time to all protestants who have given their address and to all landowners affected by any protest, and shall order the publication once a week, during two consecutive weeks in any newspaper of the locality, if there be one, of general circulation in the province, city or municipality, or a notice in English or in the local dialect, of the place and date of the hearing to be held. Said notice shall likewise be posted in the city or municipality and places affected by the improvement. After the proper hearing, the board or city council, shall render its final decision confirming, modifying or revoking its ordinance, and shall send notice of its decision, to all interested parties who have given their addresses, and shall order the publication of such decision, together with a list of the parcels of land affected by the special levy, three times weekly, for two consecutive weeks, in the manner hereinabove specified. The decision of the municipal council shall become final, if, before, expiration of thirty days from the date of its last publication, no appeal is filed with the provincial board against the proposed improvement or against the special levy, signed by at least a majority of the landowners affected. The appellant or appellants shall immediately give the municipal council a written notice of the appeal. In the case of the province or city, the decision of the provincial board or city council is not appealable but shall become final after the expiration of thirty days from its last publication.
Section 52. Decision of the appeal. If an appeal is taken from the decision of the municipal council in the manner provided for in the next preceding Section, the said council shall forward to the provincial board an excerpt from the minutes of said council relative to the proposed improvement and all other documents in connection therewith, within ten days after receipt of the notice of appeal. The provincial board shall designate the place and set a date which shall be within thirty days following receipt of the board of the documents from the municipal council, for the hearing of the appeal, giving both parties notice thereof. During the hearing of the appeal, the municipal council shall be represented and heard, and the provincial board shall examine de novo all points involved in the protest filed, and its decision thereon shall be final.
Section 53. Fixing the amount of special levy. The special levy authorized under Section forty-seven hereof shall be apportioned, computed, and assessed according to the assessed valuation of such lands, as shown by the books of the assessor, or its current assessed value as fixed by said officer in the first instance if the property does not appear of record in his books. Upon the approval of the ordinance, the provincial or city assessor shall forthwith proceed to determine the annual amount of special tax assessed against each parcel of land compromised within the district especially benefited and shall send to each landowner a written notice thereof by ordinary mail. If upon completion of work it should appear that the cost thereof is smaller or greater than the estimated cost of the work, the provincial or city assessor shall without delay proceed to correct the assessment by increasing or decreasing, as the case may be, the special tax on each parcel of land affected, for the balance of the unpaid annual installments. If all annual installments have already been paid, the provincial or city treasurer shall fix the amount of credit to be allowed to, or the additional special tax to be levied upon the land, as the case may be. In all cases, he shall give notice of such rectifications to the parties interested.
Section 54. Payment of special levy. all sums due from any landowner or owners as payment of special levy shall be payable to the provincial or city treasurer or his deputy in the same manner as the annual ordinary tax levied upon real property, in accordance with the provisions of the preceding sections, shall be subject to the same penalties for delinquency and be enforced by the same means as said annual ordinary tax; and all said sums together with any of said penalties shall, from the dates on which they were assessed, constitute special liens upon the land concerned and shall have preference over other liens there may be on said lands with the sole exception of the lien for non-payment of the ordinary real property tax.
Section 55. Special levy by the National Government. The Secretary of Finance may, by Department Order issued for the purpose, provide for the imposition and collection of a special levy on lands especially benefited by public works projects financed by the National government corresponding to a part not exceeding sixty percent of the costs thereof as certified by the Secretary of Public Works, Transportation and Communications, the proceeds of which shall accrue to the general fund of the National Government. The special levy shall be apportioned, computed, and assessed according to the assessed valuation of such lands as shown by the books of the assessor, or its current assessed value as fixed by said officer if the property does not appear of record in this books. The tax shall be collected by the local treasurers who shall remit their collections to the National Treasurer in accordance with the rules and regulations issued by the Secretary of Finance for the purpose of implementing this Section.
The Special levy herein authorized may within sixty days from the date of publication of the Department Order in the Official Gazette be protested with the Secretary of Finance and if not reconsidered or rescinded may thereafter be appealed to the proper court for decision.
CHAPTER VI
COLLECTION OF REAL PROPERTY TAX
Section 56. Date of accrual of tax. The real property tax for any year shall attach and become due and payable on the first day of January and from the same date said tax and all penalties subsequently accruing thereto shall constitute a lien upon the property subject to such tax. Said lien shall be superior to all other liens, mortgages, or encumbrances of any kind whatsoever, shall be enforceable against the property whether in the possession of the delinquent or any subsequent owner or possessor, and shall be removable only by the payment of the delinquent taxes and penalties.
The real property tax on properties actually, directly, and exclusively used for educational purposes as provided under Presidential Decree No. 261 shall begin to accrue on January 1, 1975.
Section 57. Collection of tax to be the responsibility of treasurers. The collection of the real property tax and all penalties accruing thereto, and the enforcement of the remedies provided for in this Code or any applicable laws, shall be the responsibility of the treasurer of the province, city or municipality where the property is situated.
Section 58. Assessor to furnish treasurer with assessment roll. The provincial or city assessor shall prepare and submit to the treasurer of the province, city or municipality, on or before the thirty-first day of December of each year, an assessment roll containing a list of all persons to whom real properties have been newly assessed or reassessed and the values of such taxable properties.
Section 59. Notice of time for collection of tax. The provincial or city treasurer shall, on or before the thirty-first of January each year, cause notice of the periods during which real property tax may be paid without penalty in their respective jurisdiction to be posted at the main entrance of the provincial building or city hall and of all municipal buildings and in a public conspicuous place in each barrio, and published in a newspaper and announced by crier at least three times.
The form and detail of the notice shall be prescribed by the Secretary of Finance: Provided, however, That in lieu of or in addition to such notice, the Secretary of Finance may require notification in any province, municipality, or city to be accomplished through the mailing of individual tax bills which shall estate the exact amount of the annual tax due, the amount of quarterly installment, its due date, the delinquency, and the applicable penalty.
Section 60. Payment of real property taxes in installments. Real property taxes may, in the discretion of the taxpayer, be paid without penalty in four equal installments; the first installment to be due and payable on or before March thirty-first; the second installment, on or before June thirty; the third installment, on or before September thirty; and the last installment, on or before December thirty-first, except the special levies authorized under Sections forty-seven and fifty-five of this Code which shall be governed by the local ordinance or Department Order issued by the Secretary of Finance, as the case may be.
Any person who is in any provincial, city or municipal treasurer's office on the last day of any period established for the payment of the real property tax without penalty, ready and prepared to pay but is unable to do so because of the great number of taxpayers, shall be given a suitable card entitling him to pay the tax without penalty on the next business day.
Section 61. Tax discount. If the basic and additional real property tax levied for the Special Education Fund or any quarterly installment thereof is paid in full within the prescribed period of payment, the taxpayer shall be granted a discount on the tax due as follows: twenty per cent on the tax due and payable during the year 1974; fifteen per cent on the tax due and payable during the year 1975; ten per cent on the tax due and payable during the year 1976; and five per cent on the tax due and payable during the year 1977; Provided, further, That only lands without any delinquency shall be granted the same; and Provided, finally, That the discounted tax shall not be lower than the tax corresponding to the next preceding tax year.
Beginning with the calendar year 1978 and thereafter, the President of the Philippines may, at his discretion or upon recommendation of the Secretary of Finance, authorize the grant of discounts on taxes due on real property at such rates and for such periods as he may fix, if he deems that the public interest so requires.
Section 62. Payment under protest. (a) When a taxpayer desires for any reason to pay his tax under protest, he shall indicate the amount or portion thereof he is contesting and such thereon the words "paid under protest". Verbal protests shall be confirmed in writing, with a statement of the ground, therefor, within thirty days. The tax may be paid under protest, and in such case it shall be the duty of the Provincial, City or Municipal Treasurers to annotate the ground or grounds therefor on the receipt.
(b) In case of payments made under protest, the amount or portion of the tax contested shall be held in trust by the treasurer and the difference shall be treated as revenue.
(c) In the event that the protest is finally decided in favor of the government, the amount or portion of the tax held in trust by the treasurer shall accrue to the revenue account, but if the protest shall be decided finally in favor of the protestant, the amount or portion of the tax protested against may either be refunded to the protestant or applied as tax credit to any other existing or future tax liability of the said protestant.
Section 63. Repayment of excessive collections. When it appears that an assessment of real property was erroneous and unjust when made and the same is reduced because of such error or injustice, and not by reason of damage incurred or deterioration suffered by such property subsequent to the date of original assessment, the taxpayer shall be entitled to the proper refund for taxes and penalties paid by him for not more than three years.
Timely notice shall be given by the Provincial or City Treasurer to every taxpayer whose assessment is so reduced and he shall be furnished a certificate showing the amount of refund to which he is entitled for payment already made.
Section 64. Restriction upon power of court to impeach tax. No court shall entertain any suit assailing the validity of tax assessed under this Code until the taxpayer shall have paid, under protest, the tax assessed against him nor shall any court declare any tax invalid by reason of irregularities or informalities in the proceedings of the officers charged with the assessment or collection of taxes, or of failure to perform their duties within this time herein specified for their performance unless such irregularities, informalities or failure shall have impaired the substantial rights of the taxpayer; nor shall any court declare any portion of the tax assessed under the provisions of Code invalid except upon condition that the taxpayer shall pay the just amount of the tax, as determined by the court in the pending proceeding.
Section 65. Notice of delinquency in the payment of the real property tax. Upon the real property tax or any installment thereof becoming delinquent, the provincial or city treasurer shall immediately cause notice of the fact to be posted at the main entrance of the provincial building and of all municipal buildings or municipal or city hall and in a public and conspicuous place in each barrio of the municipality of the province or city as the case may be. The notice of delinquency shall also be published once a week for three consecutive weeks, in a newspaper of general circulation in the province or city, if any there be, and announced by a crier at the market place for at least three market days.
Such notice shall specify the date upon which tax became delinquent, and shall state that personal property may be seized to effect payment. It shall also state that, at any time, before the seizure of personal property, payment may be made with penalty in accordance with the next following section, and further, that unless the tax and penalties be paid before the expiration of the year for which the tax is due, or the tax shall heave been judicially set aside, the entire delinquent real property will be sold at public auction, and that thereafter the full title to the property will be and remain with the purchaser, subject only to the right of delinquent taxpayer or any other person in his behalf to redeem the sold property within one year from the date of sale.
Section 66. Penalty for delinquency. Failure to pay the real property tax before the expiration of the period for the payment without penalty of the quarterly installments thereof shall subject the taxpayer to the payment of a penalty of two per centum on the amount of the delinquent tax for each month of delinquency or fraction thereof, until the delinquent tax shall be fully paid: Provided, That in no case shall the total penalty exceed twenty-four per centum of the delinquent tax. The rate of penalty for tax delinquency fixed herein shall be uniformly applied in all provinces and cities.
Section 67. Remedies cumulative, simultaneous and unconditional. Collection of the real property tax may be enforced through any or all of the remedies provided under this Code, and the use or non-use of one remedy shall not be a bar against the institution of the others. Formal demand for the payment of the delinquent taxes and penalties due need not be made before any of such remedies may be resorted to; notice of delinquency as required in Section sixty-five hereof shall be sufficient for the purpose.
Section 68. Distraint of personal property for delinquency. After delinquency in the payment of such tax may be enforced by distraining the personal property including the crops growing on land of the delinquent taxpayer. In such case, the provincial or city treasurer or his deputy shall issue a duly authenticated certificate, based upon the records of his office, showing the fact of the delinquency and the amount of tax and penalty due, and this shall be sufficient warrant for the seizure of any non-exempt personal property belonging to the delinquent taxpayer in question. Such process may be executed by the provincial or city treasurer, his deputy, or any officer authorized to execute legal process.
Section 69. Personal property exempt from distraint or levy. The following property shall be exempt from distraint and the levy of attachment or execution for delinquency in the payment of the real property tax:
(a) Tools and the implements necessarily used by the delinquent taxpayer in his trade or employment.
(b) One horse, cow, carabao, or other beast of burden, such as the delinquent taxpayer may select, and necessarily used by him in his ordinary occupation.
(c) His necessary clothing, and that of all his family.
(d) Household furniture and utensils necessary for housekeeping, and used for that purpose by the delinquent taxpayers, such as he may select, of a value not exceeding three thousand pesos.
(e) Provisions, including crops, actually provided for individual or family use sufficient for four months.
(f) The professional libraries of lawyers, judges, clergymen, doctors, school teachers, and music teachers, not exceeding five thousand pesos in value.
(g) One fishing boat and net, not exceeding the total value of five thousand pesos, the property of any fisherman, by the lawful use of which he earn a livelihood.
(h) Any material or article forming part of a house or improvement of any real property.
Section 70. Sale of distrained personal property. Property seized upon process under Section sixty-eight hereof shall, after due advertisement, be exposed for sale at public auction to the bidder, and so much of the property shall be thus sold as may be necessary to satisfy the tax, penalty, and cost of the seizure and sale. The purchaser at such sale shall acquire an indefeasible title to the property.
Advertisement in such cases shall be given by notice stating the name of the owner of the property to be sold, date, time, place and cause of the sale, posted for twenty days before the date of the auction at the main entrance of the city or municipal hall, or municipal building, and at a public and conspicuous place in the barrio or street where the property was seized, and announced by crier at the market place at least three market days before the auction sale.
The sale shall take place, in the discretion of the provincial or city treasurer or his deputy, either at the main entrance of the municipal building or city or municipal hall or at the place where the property was seized. If no satisfactory bid or no bid at all is received in the place mentioned, the distrained property may be sold anywhere in the province or city at public auction, after the advertisement and due notice to the owner of the property.
Section 71. Redemption of distrained property The owner of personal property seized for non-payment of taxes may redeem the same property from the collecting officer at any time after seizure and before sale by tendering to him the amount of tax, penalty and costs incurred up to the time of tender. The costs to be charged in making such seizure and sale shall only embrace the actual expenses of seizure and preservation of the property pending the same, but no charges shall be imposed for the services of the collecting officer or his deputy.
Section 72. Return of officer and disposition of proceeds. The officer conducting a sale under Section seventy hereof shall make immediate return of his proceedings and a memorandum thereof shall be entered by the provincial or city treasurer in his records. The excess, if any, of the proceeds of the sale of the distrained personal property over the tax, penalty and costs of sale and seizure and any of the property remaining unsold in the hands of the officer, shall be returned to the taxpayer.
Section 73. Advertisement of sale of real property at public auction. After the expiration of the year for which the tax is due, the provincial or city treasurer shall advertise the sale at public auction of the entire delinquent real property, except real property mentioned in subsection (a) of Section forty hereof, to satisfy all the taxes and penalties due and the costs of sale. Such advertisement shall be made by posting a notice for three consecutive weeks at the main entrance of the provincial building and of all municipal buildings in the province, or at the main entrance of the city or municipal hall in the case of cities, and in a public and conspicuous place in barrio or district wherein the property is situated, in English, Spanish and the local dialect commonly used, and by announcement at least three market days at the market by crier, and, in the discretion of the provincial or city treasurer, by publication once a week for three consecutive weeks in a newspaper of general circulation published in the province or city.
The notice, publication, and announcement by crier shall state the amount of the taxes, penalties and costs of sale; the date, hour, and place of sale, the name of the taxpayer against whom the tax was assessed; and the kind or nature of property and, if land, its approximate areas, lot number, and location stating the street and block number, district or barrio, municipality and the province or city where the property to be sold is situated. Copy of the notice shall forthwith be sent either by registered mail or by messenger, or through the barrio captain, to the delinquent taxpayer, at his address as shown in the tax rolls or property tax record cards of the municipality or city where the property is located, or at his residence, if known to said treasurer or barrio captain: Provided, however, That a return of the proof of service under oath shall be filed by the person making the service with the provincial or city treasurer concerned.
Section 74. Stay of sale of real property. At any time during or before the sale the taxpayers may stay all proceedings by paying the taxes and penalties due on the real property up to the time of tender and costs to the provincial or city treasurer or his deputy conducting the sale.
Section 75. Discretion of provincial or city treasure to buy real property in behalf of province or city. In case there is no bidder at the public auction of the delinquent real property, or if the highest bid is for an amount not sufficient to pay the taxes, penalties or costs of sale, the provincial or city treasurer may, in his discretion, buy the delinquent real property in the name of the province or the city for the amount of taxes, penalties due thereon, and the costs of sale.
Section 76. Certificate of sale to be issued purchaser, province or city. The purchaser at public auction of delinquent property shall receive from the provincial or city treasurer, or his deputy, a certificate setting forth the proceedings had at the sale, a description of the property sold, the name of the purchaser, the sale price, as well as the exact amount of the taxes and penalties due and the costs of sale. The person in whose name the property is listed and assessed shall be furnished with a copy of the sale certificate.
Section 77. Report of sale to provincial or municipal board or city council. The provincial or city treasurer on his deputy shall make a report to the provincial or municipal board or city council of the sale within thirty days thereafter, and shall make the same appear in his records.
Section 78. Redemption of real property after sale. Within the term of one year from the date of the registration of sale of the property, the delinquent taxpayer or his representative, or in his absence, any person holding a lien or claim over the property, shall have the right to redeem the same by paying the provincial or city treasurer or his deputy the total amount of taxes and penalties due up to the date of redemption, the costs of sale and the interest at the rate of twenty per centum on the purchase price, and such payment shall invalidate the sale certificate issued to the purchaser and shall entitle the person making the same to a certificate from the provincial or city treasurer or his deputy, stating that he had redeemed the property.
The provincial or city treasurer or his deputy shall, upon surrender by the purchaser of the certificate of sale previously issued to him, forthwith return to the latter the entire purchase price paid by him plus the interest at twenty per centum per annum herein provided for, the portion of the cost of the sale and other legitimate expenses incurred by him, and said property shall thereafter be free from the lien of said taxes and penalties.
Section 79. Possession and usufruct of real property within one year from due date of sale. After the sale and before redemption, or before the expiration of the term of one year fixed in Section seventy-eight hereof for such redemption, the real property shall remain in the possession of the delinquent tax payer, who shall have the right to the usufruct thereof.
Section 80. Issuance of final bill of sale. In case the delinquent taxpayer or his representative, or any person holding a lien or claim over the property, fails to redeem the same within the period of one year from the date of sale as provided in Section seventy-eight hereof, the provincial or city treasurer shall make an instrument sufficient in form and effect to convey to the purchaser the property purchased by him, free from any encumbrance or third party claim whatsoever, and the said instrument shall succinctly set forth all proceedings upon which the validity of the sale depends. Any balance of the proceeds of the sale left after deducting the amount of the taxes and penalties due and the costs of sale, shall be returned to the owner or his representative.
Section 81. Disposition of real property acquired by province or city. The provincial or city treasurer shall have charge of the delinquent real property acquired by the province or city under the provisions of Section seventy-five during which time the delinquent taxpayer shall have possession and usufruct of such property in accordance with Section seventy-nine hereof. Said treasurer shall take steps within one year from the date of issuance of final bill of sale to dispose of the delinquent real property at public auction; but at any time before the auction sale, any person in his own right may repurchase such property by paying the total amount of the taxes and penalties due up to the time of repurchase, the costs of sale, and other legitimate expenses incurred by the province or city with respect to the property, and an additional penalty of twenty per cent on the purchase price: Provided, however, That the right of the delinquent taxpayer or his representative or any person holding lien or claim over the property to further redeem said property within one year from the date of acquisition by the province or city, in the manner provided in Section seventy- eight hereof; and, Provided, further That if the treasurer has entered into a contract for the lease of the property in the meantime, any repurchase made hereunder shall be subject to such contract.
Section 82. Collection of real property tax through the courts. The delinquent real property tax shall constitute a lawful indebtedness of the taxpayer to the province or city and collection of the tax may be enforced by civil action in any court of competent jurisdiction. The civil action shall be filed by the Provincial or City fiscal within fifteen days after receipt of the statement of delinquency certified to by the provincial or city treasurer. This remedy shall be in addition to all other remedies provided by law.
Section 83. Suits assailing validity of tax sale. No court shall entertain any suit assailing the validity of a tax sale of real estate under this Chapter until the taxpayer shall have paid into court the amount for which the real property was sold, together with interests of twenty per centum per annum upon that sum from the date of sale to the time of instituting suit. The money so paid into court shall belong to the purchaser at the tax sale if the deed is declared invalid, but shall be returned to the depositor if the action fails.
Neither shall any court declare a sale invalid by reason of irregularities or informalities in the proceedings committed by the officer charged with the duty of making sale, or by reason of failure by him to perform his duties within the time herein specified for their performance, unless it shall have been proven that such irregularities, informalities or failure have impaired the substantial rights of the taxpayer.
Section 84. Payment of delinquent taxes on property subject of controversy. In any suit involving the ownership or possession of, or succession to, real property, the court shall, on its own motion or upon representation of the provincial, city or municipal treasurer or his deputy, condition the award of such ownership, possession or succession to any party to the controversy upon the payment to the court of the taxes and penalties due on the property and all the costs that may have accrued to the treasurer by reason of his representation.
Section 85. Treasurer to certify delinquencies Remaining uncollected The provincial, city or municipal treasurer shall prepare a certified list of all real property tax delinquencies remaining uncollected or unsatisfied for at least one year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-satisfaction, and shall submit the same to the Secretary of Finance on or before December thirty-first of the year immediately succeeding that in which the delinquencies have occurred with a request for assistance in the enforcement of the remedies for collection provided hereunder.
CHAPTER VII
DISPOSITION OF PROCEEDS
Section 86. Distribution of proceeds. (a) The proceeds of the real property tax, except as otherwise provided in this Code, shall accrue to the province, city or municipality where the property subject to the tax is situated and shall be applied by the respective local government unit for its own use and benefit.
(b) Barrio shares in real property tax collection. The annual shares of the barrios in real property tax collection shall be as follows:
(1) Five percent of the real property tax collection of the province and another five per cent of the collections of the municipality shall accrue to the barrio where the property is situated.
(2) In the case of the city, ten per cent of the collections of the tax shall likewise accrue to the barrio where the property is situated.
Thirty per cent of the barrio shares herein referred to may be spent for salaries or per diems of the barrio officials and other administrative expenses, while the remaining seventy per cent shall be utilized for development projects approved by the Secretary of Local Government and Community Development or by such committee created, or representatives designated, by him.
Section 87. Application of proceeds. (a) The proceeds of the real property tax pertaining to the city and to the municipality shall accrue entirely to their respective general funds. In the case of the province, one-fourth thereof shall accrue to its road and bridge fund and the remaining three-fourths, to its general fund.
(b) The entire proceeds of the additional one per cent real property tax levied for the Special Education Fund created under R.A. No. 5447 collected in the province or city on real property situated in their respective territorial jurisdictions shall be distributed as follows:
(1) Collections in the provinces: Fifty per cent shall accrue to the municipality where the property subject to the tax is situated; twenty per cent shall be remitted to the province; and thirty per cent shall be remitted to the Treasurer of the Philippines to be expended exclusively for stabilizing the Special Education Fund in municipalities, cities and provinces in accordance with the provisions of Section seven of R.A. No. 5447.
(2) Collections in the cities: Sixty per cent shall be retained by the city; and forty per cent shall be remitted to the Treasure of the Philippines to be expended exclusively for stabilizing the Special Education Fund in municipalities, cities and provinces as provided under Section 7 of R.A. No. 5447.
However, any increase in the shares of provinces, cities and municipalities from said additional tax accruing to their respective local school boards commencing with fiscal year 1973-74 over what has been actually realized during the fiscal year 1971-72 which, for purposes of this Code, shall remain as the base year, shall be divided equally between the general fund and the special education fund of the local government units concerned. The Secretary of Finance may, however, at his discretion, increase to not more than seventy-five per cent the amount that shall accrue annually to the local general fund.
(c) The proceeds of all delinquent taxes and penalties, as well as the income realized from the use, lease or other disposition of the real property acquired by the province or city at a public auction in accordance with the provisions of this Code, and the proceeds of the sale of the delinquent real property or of the redemption thereof, shall accrue to the province, city or municipality in the same manner and proportions as if the tax or taxes had been paid in regular course.
(d) The proceeds of the additional real property tax on idle private lands shall accrue to the respective general funds of the province, city and municipality where the land subject to the tax is situated.
CHAPTER VIII
ORGANIZATION, FUNCTIONS ANDSUPERVISION
Section 88. Provincial or city assessor, his assistant and deputies and their appointments. There shall be a distinct and separate assessment office in every province or city under the charge of a provincial or city assessor, who shall be appointed by the President of the Philippines in the manner prescribed by law. The position of provincial or city assessor shall belong to the competitive service and its salary shall be as fixed by law.
There shall be an Assistant Provincial or City Assessor in each assessment office, who shall be appointed by the provincial or city assessor in conformity with the provisions of the Civil Service Law, subject to the approval of the Secretary of Finance. The salaries of the Assistant Provincial or City Assessor shall likewise be as fixed by law.
Upon the approval of this Code no person shall be appointed to the position of provincial or city assessor, or the position of assistant provincial or city assessor, unless he possesses a degree in law, civil or mechanical engineering, commerce, or any other related college course, has qualified in an appropriate Civil Service examination, and has acquired at least five years experience in real property assessment work. For every year lacking in educational attainment, a two-year experience in assessment work in addition to the foregoing five-year requirement may be substituted: Provided, That he shall have completed at least two years of any of the college courses aforementioned.
Upon the effectivity of this Code, vacant positions of provincial and city assessors and of assistant provincial and city assessors shall be filled in accordance with the provisions of this Section.
The other employees in the Assessment office, whose number and salaries shall be fixed by the Provincial Board or Municipal Board or City Council, shall be appointed by the Provincial Governor or City Mayor upon recommendation of the provincial or city assessor, in conformity with the provisions of the Civil Service Law: Provided, That there shall be in each provincial or city assessment office at least three deputy assessors to perform full-time field assessment work. Any person with at least two years college education and two years experience in assessment work and who possesses an appropriate civil service eligibility shall be deemed qualified for appointment as a deputy assessor.
The oath of office of provincial or city assessors and assistant provincial or city assessors shall contain a statement to the effect that the affiant shall appraise real property subject to assessment at its current market value in accordance with this Code.
Section 89. Powers and duties of provincial or city assessor. The provincial or city assessor shall:
(a) Establish a systematic method of assessment in the manner prescribed herein and in accordance with rules and regulations issued by the Secretary of Finance.
(b) Install and maintain a real property identification and accounting system conforming to the standards prescribed by the Secretary of Finance.
(c) Prepare, install and maintain a system of tax mapping showing graphically all property subject to assessment in his province or city and gather all necessary data concerning the same.
(d) Make frequent physical surveys to check and determine whether all real property within the locality are properly listed in the assessment rolls.
(e) Appraise all items of real property at current market value in accordance with this Code and conduct regular ocular inspection trips to determine if all properties are assessed correctly.
(f) Keep a record of all transfers, leases and mortgages of real property, rentals, insurance, and cost of construction of buildings and other improvements on land, and land income for assessment purposes.
(g) Apply uniformly the assessment levels fixed in Section twenty hereof to the current market value of all property subject to assessment.
(h) Cancel all of the assessments, in case several assessments are made for the same property, except the one property make, but if any assessee or his representative shall object to the cancellation of the assessment made in his name, such assessment shall not be cancelled but the fact shall be noted on the tax declaration and assessment rolls and other property books of record. Preference, however, shall be given to the assessment of the person who has the best title to the property, or in default thereof, of the person who has possession of the property.
(i) Eliminate from the assessment of taxable property such properties which have been destroyed or which, being exempt, have been improperly included in the same; decrease the assessment where the property previously assessed has suffered a permanent loss of value by reason of storm, flood, fire, or other calamity; and increase the assessment where improvement have been made upon the property subsequent to the last assessment.
(j) Attend personally or thru his duly authorized representative all sessions of the Local Board of Assessment Appeals and present any information or record in his possession as may be required by the Board in determining the correct assessment of the real property under appeal.
(k) Issue certificates pertaining to or certified copies of the assessment records of real property and all other records relative to its assessment, upon payment of a service charge or fee fixed therefor by the local board or council.
(l) Perform such other acts as may be required of provincial or city assessor under this Code or other related laws.
Section 90. The Municipal Deputy Assessor. There is hereby created in every municipality the position of municipal deputy assessor, who shall be appointed by the provincial assessor with the approval of the Secretary of Finance. The salary of the municipal deputy assessor shall be equal to the basic salary authorized by law for the municipal treasurer of the same municipality, one-third of the annual rate to be paid from the provincial general fund and two-thirds, from the municipal general fund. Within one year from the date of approval of this Code, the position of Municipal Deputy Assessor shall be created and provided for in the corresponding provincial and municipal budgets and filed in accordance with the provisions of this Section.
Any person with a bachelor's degree in law, civil or mechanical engineering, commerce or business administration, or any other related collegiate course and who possesses an appropriate civil service eligibility shall be deemed qualified for appointment as municipal deputy assessor. A two-year experience in assessment work may be substituted for every year lacking in the educational requirement: Provided, however, That the appointee shall have completed at least two years of any of the college courses abovementioned.
The Municipal Deputy Assessor shall perform all the duties and functions related to the appraisal and assessment for taxation purposes of real property situated within the municipality under the direct and immediate supervision of the provincial assessor.
In the municipalities belonging to the fourth class category or lower, the municipal treasurer may be appointed ex-officio deputy assessor by the provincial assessor upon recommendation of the provincial treasurer: Provided, however, That such municipal treasurer possesses the minimum qualification requirements prescribed herein; Provided, further, That no ex-officio appointment shall extend beyond twelve months from the date of issue unless renewed by the appointing authority; and Provided, finally, That the appointment of a regular municipal treasurer as ex-officio deputy assessor shall cease and be considered terminated upon the appointment of a regular municipal deputy assessor as herein provided.
A municipal treasurer appointed as ex-officio deputy assessor shall receive additional compensation equivalent to not more than twenty per cent of his basic salary payable by the municipality. In no case however shall his basic salary plus such additional compensation exceed the basic salary authorized for a municipal treasurer of the next higher class of municipality.
Municipal treasurers who at the time of approval of this Code are already appointed as ex-officio deputy assessors shall continue in such capacity until the appointment of a regular municipal deputy assessor in accordance with this Code.
Section 91. Supervision over local assessment offices. The Secretary of Finance shall exercise direct executive supervision over local assessment affairs and the assessment offices of provincial, city and municipal governments and, for this purpose, there is hereby created a division in the Department of Finance which shall discharge all powers, duties and functions that may be deemed necessary in, or are pertinent to, the administration of the real property tax and the implementation of the provisions of this Code.
The head of this division shall in no case receive compensation and/or emoluments lower than those authorized for the regular division chiefs of the Department. Sufficient funds for the operation and maintenance of said division shall be included in the annual appropriations of the Department.
CHAPTER IX
SPECIAL PROVISIONS
Section 92. Basis for payment of just compensation in expropriation proceedings. In determining just compensation when private property is acquired by the government for public use, the basis shall be the market value declared by the owner or administrator or anyone having legal interest in the property, or such market value as determined by the assessor, whichever is lower.
Section 93. Educational institutions exempt from the real property tax. Non-stock or non-profit educational institutions owning real property, the total assessed value of which does not exceed thirty thousand pesos, as well as Education Foundations organized under Republic Act No. 6055, shall be exempt from the payment of realty taxes provided for under this Code.
Section 94. Assessment revolving fund. The sum of ten million pesos is hereby appropriated out of any funds in the National treasury not otherwise appropriated to constitute a special fund to be known as the Assessment Revolving Fund to finance the periodic general revision of real property assessments in provinces and cities. Such fund shall be administered by the Secretary of Finance and shall be loaned without interest to provinces and cities under such terms and conditions as he may impose.
Section 95. General assessment revision, expenses incident thereto. Provincial, city and municipal boards or councils shall provide the necessary appropriations to underwrite or defray expenses incident to general revision of real property assessments, using for the purpose any unappropriated balances in the general, road and bridge and/or permanent public improvement funds, or any underestimated revenues accruing thereto, or reversions of authorized appropriations in their respective budgets which are not otherwise urgently needed, any provision of existing laws to the contrary notwithstanding.
All expenses incident to a general revision of property assessments shall be divided equally between the province and the municipality.
CHAPTER X
MISCELLANEOUS PROVISIONS
Section 96. Remission of tax by provincial or city board or council. In case of a general failure of crops or great decrease in the price of products, or similar widespread disaster in any city or municipality or municipalities of a province, the provincial of city board or council of the same, by resolution passed prior to the first day of January of any year may remit, wholly or partially, the real property tax or the penalties thereon for the succeeding year in the city or municipality or municipalities effected by the disaster, but a resolution so disposing must clearly state the reason or reasons for such remission and shall not take effect until approved by the Secretary of Finance.
Section 97. Remission or reduction of tax by the President of the Philippines. The President of the Philippines, may, in his discretion, remit or reduce the real property tax for any year in my city, municipality or province if he deems that public interest so requires.
Section 98. Duty of offers to assist the provincial or city assessor. It shall be the duty of every officer and employee of the provincial, city and municipal governments to render all necessary assistance to the provincial or city assessor. It shall likewise be the duty of registers of deeds and notaries public to furnish the provincial or city assessors with copies of all contracts conveying, leasing, or mortgaging real property received by, or acknowledged before, them.
Section 99. Insurance companies to furnish information. Insurance companies, whenever requested, shall furnish in each particular case to the provincial or city assessor copies of any contract or policy insurance on buildings, structures and improvements insured by them which may be necessary for the proper assessment thereof.
Section 100. Fees in court actions. All court actions, criminal or civil, instituted at the instance of the provincial or city treasurer or assessor under the provisions of this Code, shall be exempt from the payment of court and sheriff's fees.
Section 101. Fees in registration of papers or documents on sale of delinquent real property to province or city. All certificates, documents, or papers covering the sale of delinquent property to the province or city, if registered in the Registry of Property, shall be exempt from registration fees.
Section 102. Promulgation of rules by the Secretary of Finance. The Secretary of Finance shall promulgate the rules and regulations and prescribe the forms to be used and the procedures to be followed in carrying out properly and effectively the provisions of this Code.
Section 103. Real property assessment notices or owner's copies of the tax declarations to be exempt from postal charges or fees. All real property assessment notices or owner's copies of tax declarations sent thru the mails by the assessor shall be exempt from the payment of postal charges or fees.
CHAPTER XI
PENAL PROVISIONS
Section 104. Failure to file declaration and other prohibited acts. Any person required under the provisions of this Code to declare real property whether taxable or exempt; who shall intentionally fail to file such declaration under the terms and conditions prescribed therefor, shall upon conviction be punished by a fine of not more than one thousand pesos or by imprisonment of not more than one year or both at the discretion of the court.
The same penalty shall be imposed upon any person who shall intentionally file a false declaration, or shall otherwise conceal, remove or misrepresent the ownership, control, or tax liability of real property subject to a declaration.
If any of the acts abovementioned is committed in relation to property not exempt from taxation, the person convicted thereof shall, moreover, forfeit his right to appeal the assessment of such property.
Section 105. Acts committed in behalf of corporations. An individual who shall commit any of the violations penalized in the preceding section acting under the authority and in behalf of a corporation, partnership or association shall be punished by the fine and/or imprisonment therein provided, and the other liabilities and shall attach to the corporation, partnership or association to whom the real property is required to be listed for purposes of taxation or exemption. The corporation, partnership or association, shall in addition, pay a fine of not less than two thousand pesos nor more than five thousand pesos at the discretion of the court.
Section 106. Omission of property from assessment or tax rolls by officers and other acts. Any officer charged with the duty of assessing real property, who shall willfully fail to assess, or shall intentionally omit from the assessment or tax roll, any real property which he knows to be lawfully taxable or shall wilfully or through gross negligence underassess any real property or shall intentionally violate or fail to perform any duty imposed upon him by law relating to the assessment of taxable and real property, shall upon conviction be punished by a fine or not more than one thousand pesos or my imprisonment of not more than one year, or both, at the discretion of the court.
The same penalty shall be imposed upon any officer charged with the duty of collecting the tax due on real property who shall willfully fail to collect the tax and institute the necessary proceedings for the collection of the same.
Any other officer required by this code to perform acts relating to the administration of the real property tax, or to assist the assessor or treasurer in such administration, who shall willfully fail to discharge such duties, shall upon conviction, be punished by a fine or not exceeding five hundred pesos or by imprisonment of not more than six months, or both, at the discretion of the court.
Section 107. Government agents delaying assessment of real property and assessment appeals. Any government official who shall intentionally and deliberately delay the assessment of real property, or the filing of any appeal against its assessment, if such is patently indicated, shall, upon conviction, be punished by a fine of not more than five hundred pesos or by imprisonment of not more than one year, or both, at the discretion of the court.
Section 108. Violation of other provisions of this Code or of rules and regulations in general. Any person who shall violate any provision of this Code or any rule or regulations of the Department of Finance made in conformity thereto, for which violation no specific penalty is provided by law, shall be punished by a fine of not more than three hundred pesos, or by imprisonment of not more than six months, or both, at the discretion of the court. In the case of a corporation, partnership, or association, the penalty shall be fine of not less than two thousand pesos nor more than five thousand pesos at the discretion of the court.
CHAPTER XII
TRANSITORY PROVISIONS
Section 109. Sale and forfeiture before effectivity of Code. All sales and forfeitures of delinquent real properties and tax delinquencies existing before the effective date of this Code shall be governed by the provisions of laws then in force.
Section 110. Turn over of pending assessment cases, records, supplies and equipment of the Board of Assessment Appeals. All assessment cases pending before the Board of Assessment Appeals created under Commonwealth Act No. 470 and the charters of all cities including all their records, supplies and equipment shall be turned over by its outgoing Chairman to the local Board of Assessment Appeals in their respective localities created under Presidential Decree No. 76. Such cases shall be decided pursuant to and in accordance with the provisions of this Code.
Section 111. Repealing Clause. Commonwealth Act Numbered Four Hundred Seventy, as amended; the pertinent provisions of the charters of all cities; Section two thousand ninety-two of the Revised Administrative Code; and all acts, laws or decrees or parts of acts, laws or decrees inconsistent with the provisions of this Code are hereby repealed or modified accordingly.
Section 112. Effectivity of Code. This Code shall take effect on June 1, 1974.
Done in the City of Manila, this 20th day of May, in the year of Our Lord Nineteen Hundred and Seventy-four.
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