November 5, 1996
DAR OPINION NO. 99-96
Sister Maria Esperanza Villaluz
Convento del Divino Amor
Sgto. E. Romero 5817
5019 Cordoba, Argentina
Dear Sister Villaluz:
This has reference to your letter addressed to President Fidel V. Ramos seeking opinion on the queries posed therein, to wit:
a) Is the landowner liable to pay real property taxes on landholdings occupied by squatters and those taken by the government for land reform?
b) Will the government pay the landowner the value of the property given to the poor?
You state that your parents, the late Col. Filomeno Villaluz and Eduarda Lozano Villaluz, were the owners of lands situated at Aparri, Cagayan; that upon their death, your sister took charge of said properties; that when she died, your brother who is presently residing in San Diego, California, USA conducted an investigation relative to your properties and found out that most of them are now occupied by squatters; that one property with an area of 67 hectares which used to be a riceland was taken by the government pursuant to the agrarian reform program; that out of your total landholdings only 18 hectares of unproductive land remained with you and your brother; and that on top of these circumstances you are still obliged to pay real property taxes.
Anent your first query, it is believed that the liability of the registered landowner for real property taxes is not affected by the fact that someone else is occupying the property. Real property tax has been defined as a "direct tax on the ownership of lands and buildings or other improvements thereon not specially exempted and is payable regardless of whether the property is used or not, although the value may vary in accordance with such factor (Eusebio Villanueva, et al. v. City of Iloilo, L-26521, Dec. 28, 1968). It follows that as registered owners, you are liable for the payment of the taxes due on your landholdings, despite the occupation thereof by squatters. In this regard, you have the right as owners to take legal remedies against the squatters of your properties, and we advise that you do so as soon as possible. As regards your riceland which was subjected to the land transfer program of the government, the awardees are liable for the realty taxes thereon as new owners of the property.
The answer to your second query is that it is a recognized rule that when a landholding is awarded to qualified beneficiaries, whether under Presidential Decree No. 27 dated October 21, 1972 or under Republic Act No. 6657 dated June 15, 1988 (The Comprehensive Agrarian Reform Law or CARL), title does not pass to the awardee unless the landowner is paid just compensation thereon. This means that you are entitled to the payment of just compensation for the lands transferred pursuant to the agrarian reform program of the government.
We recommend that you designate a representative to coordinate with the Municipal Agrarian Reform Officer (MARO) of the place where your properties are situated, as said person is in the best position to determine the status of your landholdings vis-a-vis the land transfer program of the government, and to render the necessary assistance.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
OSEC
Doc. No. 96020336