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Question

Real Property Tax Assessment: Disputed Classification

Alexandra owns a commercial building in City X. The building has been classified as commercial by the local government unit (LGU) for tax purposes. However, Alexandra believes that the classification is incorrect and that the property should be classified as residential instead, resulting in a lower tax assessment. She decides to challenge the classification and seeks your advice on the matter.

Based on the provisions of the Real Property Taxation under R.A. No. 7160 (Local Government Code of 1991), discuss the following:

1. What are the fundamental principles of real property taxation in the Philippines?
2. What is the nature of the taxing power of LGUs in relation to real property taxation?

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Answer