March 22, 1999
DAR OPINION NO. 27-99
HON . JOSEPHINE Y . RAMIREZ SATO
Office of the Governor, Mamburao
Province of Occidental Mindoro
Dear Governor Ramirez Sato:
This has reference to your request to resolve the problem regarding the non-payment by CARP beneficiaries of the real property taxes due the local government units under Republic Act No. 7160 (Local Government Code) of 1991. In this connection we wish to convey that massive information drive regarding the same to the CARP beneficiaries is now being undertaken by the Department per report of DAR Region IV Director Eugenio B. Bernardo.
We believe that payment of the real property tax by CARP beneficiaries to, LGUs shall commence from the time the DAR awards the lands to them. This is clear under Section 24 of R.A. No. 6657 which states, among others, that the rights and responsibilities of the beneficiary shall commence from the time the DAR makes an award of the land to him, which award shall be completed within one hundred eighty (180) days from the time the DAR takes actual possession of the land. On the other hand, prior to the award of the land to the CARP beneficiary, the landowners shall pay the real property tax to the LGUs. This is clear under Section 66 of R.A. No. 6657 which states that "all arrearages in real property taxes, without penalty, or interest, shall be deductible from the compensation to which the owner may be entitled."
With respect to landholdings covered by Operation Land Transfer, the pertinent guidelines 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 ire 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 land remain with 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.
Finally, with regard to the Petition of the Provincial and Municipal Treasurers of Occidental Mindoro that "the Finance Secretary; the Honorable Agrarian Reform Secretary and the Honorable President of the Land Bank of the Philippines to work out among themselves a system wherein the Land Bank of the Philippines shall collect the real estate tax from the beneficiaries of the Land Reform Program and turn over said collection to the LGUs concerned", this matter through this opinion is now concomitantly being referred to the DAR's Guidelines Drafting Committee for study and appropriate action.
Thank you for communicating with us.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Assistant Secretary Wilfredo M. Peñaflor
Chairman
Guidelines Drafting Committee
Dir. Martha Carmel Salcedo
Policy and Strategic Research Service
RD Eugenio B. Bernardo
DAR — Region IV
E. Rodriguez Memorial Building
Capitol Compound, Pasig City
Rolando Constantino
DAR — Provincial Office
San Jose, Occidental Mindoro
The Municipal Agrarian Reform Officer
DAR — Municipal Office
Mamburao, Occidental Mindoro
Mr. Bartolome T. Mallare
Provincial Treasurer
Occidental Mindoro