October 28, 1997
DAR OPINION NO. 118-97
Hon. Domino T . Echevarre
Vice Mayor
Municipality of Bato
Leyte
Dear Vice Mayor Echevarre:
This has reference to Resolution No. 97-77 of the Sangguniang Bayan of Bato, Leyte, requesting the Department of Agrarian Reform to require the mandatory deduction of taxes from payment of the land prior to the issuance of OLT certificate or title. More specifically, subject Resolution raises an issue as to who is under obligation to pay taxes due the Municipality of Bato with respect to landholdings covered by the Operation Land Transfer Program.
The guidelines pertinent to your request are embodied in DAR Memorandum Circular No. 5, Series of 1973 in relation to DOJ Opinion No. 35, Series of 1973. Under said guidelines, they provide that with respect to tenanted rice and/or corn lands consisting an area of 100 hectares or more, the tenant farmers should pay the real property taxes assessable on the said lands regardless of whether or not land transfer certificates have been issued because by then they are deemed owners of the lands they till. However, with respect to lands with an area of less than 100 hectares, it is provided that all things considered, it would be more logical to conclude that pending implementation of P.D. No. 27 as to those lands (i.e., less than 100 hectares), the ownership of the lands remains with the present landowners, and as such, the real estate taxes should, accordingly, be paid by the landowners.
We wish to add, however, that by virtue of LOI No. 227, Series of 1974, in order to accelerate the implementation of the agrarian reform program, the present operations implementing the land reform program pursuant to P.D. No. 27 is now down to landholdings of over seven (7) hectares. This means that the tenant-farmers are now likewise deemed owners of the awarded areas in excess of the 7-hectare retention limit of a landowner. As such, they are legally bound to pay the real property taxes assessable on said lands.
We hope to have enlightened you on the matter.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Gloria J. Fabia
Director, BLAD