By: Atty. Gregorio B. Austral, CPA

Who is the “delinquent owner” in the
exercise of levy of real property?

One of the consequences of not paying real property taxes on land and buildings
is the possible levy of the property. A tax levy is the legal seizure of a taxpayer’s
property to satisfy an outstanding tax liability. Among the remedies available to the local
government unit to enforce the collection of real property taxes is to subject the
property to levy pursuant to the Local Government Code (RA 7160).
Section 258 of RA 7160 provides that after the expiration of the time required to
pay the basic real property tax, the real property may be levied upon through the
issuance of a warrant on or before, or simultaneously with, the institution of the civil
action for the collection of the delinquent tax.
The law further requires that when issuing a warrant of levy, the provincial or city
treasurer or the municipal treasurer within the Metropolitan Manila Area shall prepare a
duly authenticated certificate showing the name of the delinquent owner of the
property or person having legal interest therein, the description of the property, the
amount of the tax due and interest thereon.
In the recent case of The City Government of Antipolo and the Treasurer of
Antipolo vs. Transmis Builders & Construction, Inc., G.R. No. 235484, August 9, 2023,
the Supreme Court declared the levy, sale, and consequent forfeiture of the subject lots
of the respondent by the City Government of Antipolo as void for lack of due process.
Sometime in January 1997, Transmix Builders & Construction, Inc. (respondent),
bought the three lots from Santos. Consequently, the titles under Santos’ name were
cancelled, and new titles were issued in favor of respondent. Despite having been
registered as new owner of the subject lots, respondent failed to transfer the
corresponding tax declarations under its name.
On October 30, 2005, the City Treasurer published in The Philippine Star, a
Notice of Delinquency of Real Properties, covering several properties with unpaid real
property taxes (RPT) located in Antipolo City, which included the three lots owned by
respondent. The City Treasurer also sent the corresponding Notices of Levy dated
November 11, 2005 to the city assessor and the Register of Deeds. On November 21,
2005, the City Treasurer issued Warrants of Levy over respondent’s properties, and sent
them to Clarisa San Juan Santos, the declared owner of the property per tax
declaration, at her given address.

Thereafter, the City Treasurer published a Notice of Public Auction Sale of Real
Property in The Philippine Star on November 27, 2005. The auction sale was held on
December 28, 2005, and due to want of bidders, the subject properties were eventually
forfeited in favor of the City Government of Antipolo. Consequently, the City Treasurer
issued a Declaration of Forfeiture of Delinquent Real Property for each of the three lots
on December 28, 2005.
In nullifying the levy, the Supreme Court ruled that Section 258 of Local
Government Code of 1991 requires the treasurer of the local government to send the
warrant of levy to the delinquent owner of the real property, among others. The term
“delinquent owner” shall be construed as the person registered as owner of the realty
based on the certificate of title, and not on the tax declaration. The failure of the
treasurer to send the required notices to the delinquent registered owner of the
property shall render void not only the levy, but the consequent public auction and sale
of the subject property.(City Government of Antipolo v. Transmix Builders &
Construction, Inc., G.R. No. 235484, [August 9, 2023], www.cdasiaonline.com)