Practice question
An LGU contracts with a private company to take over the legal power to classify properties, determine binding assessments, levy the real property tax, and enforce collection in the company's own discretion for a percentage of receipts. The company claims that efficiency makes the arrangement valid. Assess the stated transfer of public functions under Section 198.
- Efficiency does not override the prohibition against letting those functions to a private person.
- The company may acquire all taxing power by bidding.
- The owner's consent makes all tax delegations valid.
- Every revenue-sharing contract necessarily transfers lawful taxing power.
- A private corporation is automatically a local assessor.
Legal references
- RA 7160, Sections 198, 199(b) and 217; https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
- RA 12001, Sections 35 and 38 (valuation reform and interaction with the Local Government Code); https://lawphil.net/statutes/repacts/ra2024/ra_12001_2024.html
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