Republic of the Philippines

SANGGUNIANG PANLUNGSOD

City Government of Naga

ORDINANCE NO. 2026-096

AN ORDINANCE MANDATING THE TIMELY DECLARATION AND REPORTING OF REAL PROPERTIES, IMPROVEMENTS, AND PROPERTY TRANSACTIONS IN THE CITY OF NAGA, PRESCRIBING DUTIES FOR PROPERTY OWNERS, PUBLIC OFFICERS, AND PRIVATE PROFESSIONALS, AND EMPOWERING THE CITY ASSESSOR IN RELATION THERETO

Author: Hon. FRANCISCO M. MENDOZA

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as the “Local Government Code,” empowers local governments to create their own sources of revenue to fund essential public services, infrastructure projects, and socio-economic development programs. One of the significant sources of local revenue is the Real Property Tax. Presently, it accounts for a quarter of local tax revenue.

However, real property taxation relies heavily on the completeness, accuracy, and timeliness of the local tax rolls. Undeclared lands, unrecorded building improvements, and unlisted structures and commercial machineries directly translate to lost revenue that could otherwise fund public schools, health centers, roads, and social welfare initiatives.

While existing laws strictly mandate property owners to periodically declare their properties and subsequent improvements and acquisitions, and certain public and private officers to report property transactions to the City Assessor, compliance remains a persistent administrative challenge.

This Ordinance addresses this gap by reinforcing and elevating to public consciousness the reporting mandates prescribed under Republic Act No. 7160 and under Republic Act No. 12001 (Real Property Valuation and Assessment Reform Act or RPVARA). It outlines the mandatory reporting duties of property owners and public and private officers such as the Register of Deeds, the City Building Official, machinery registration officials, Notaries Public, and Geodetic Engineers. It ensures that whenever a property is acquired, improved, mapped, divided, sold, notarized, built upon, or equipped with industrial machinery, the data flows to the City Assessor within a prescribed period.

Aside from improving the accuracy of the records of the City Assessor, this Ordinance further promotes a more equitable taxation system where burden is shared by all those obligated to do so. Simultaneously, this measure strengthens the City’s revenue collection mechanism by broadening the real property tax base and raising local tax revenue without the necessity of dramatic rate increases. The city benefits, and so do real property taxpayers.

In view of the foregoing, the passage and approval of this Ordinance is earnestly sought.

BE IT ORDAINED by the Sangguniang Panlungsod of the City of Naga in session assembled, that:

SECTION 1. SHORT TITLE.

This Ordinance shall be known as the “Real Property Declaration and Reporting Ordinance.”

SECTION 2. LEGAL BASES AND SCOPE OF APPLICATION.

This Ordinance is enacted pursuant to Republic Act No. 7160 or the “Local Government Code” and to the mandate of Republic Act No. 12001 otherwise known as the “Real Property Valuation and Assessment Reform Act.”

This Ordinance shall apply to all natural or juridical persons owning, administering, or holding legal interest in real property within the City of Naga, as well as all public officers and private professionals responsible for property registration, permitting, licensing, survey and tax assessment.

SECTION 3. MANDATORY DUTIES OF PROPERTY OWNERS, ADMINISTRATORS, AND TRANSFEREES.

It shall be the duty of every natural or juridical person, or their authorized representatives, owning or administering real property within the City of Naga to comply with the following reporting requirements:

• a. Declaration of Property Every Three Years. Pursuant to Section 202 of R.A. 7160, it shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements thereon, or their duly authorized representative, to prepare, or cause to be prepared, and file with the City Assessor, a sworn statement declaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. Such declaration shall contain a description of the property sufficient in detail to enable the assessor or his deputy to identify the same for assessment purposes. The sworn declaration shall be filed with the City Assessor once every three (3) years during the period from January first (1st) to June thirtieth (30th) of the year.
• b. Declaration of Newly Acquired Property. Pursuant to Section 203 of R.A. 7160, it shall be the duty of any person, or his authorized representative, acquiring real property or making any improvement on real property, to prepare, or cause to be prepared, and file with the City Assessor a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier.
• c. Notification of Ownership Transfer. Pursuant to Section 208 of R.A. 7160, any person who transfers real property ownership to another shall notify the City Assessor within sixty (60) days from the date of such transfer. The notification shall include the mode of transfer, the description of the property alienated, and the name and address of the transferee.

SECTION 4. MANDATORY DUTIES OF PUBLIC OFFICERS AND EXTERNAL ENTITIES.

Public officials and private professionals engaged in property transactions are required to assist the City Assessor in discovering and listing taxable real properties as follows:

• a. The Register of Deeds. Pursuant to Section 209 and 278 of R.A. 7160 and Section 23 of Republic Act No. 12001, the Register of Deeds shall submit to the City Assessor an abstract of its registry every three (3) months, and copies of all contracts selling, transferring or otherwise converting, leasing, or mortgaging real property registered every end of the month, free from any fees and charges. The abstract shall include brief but sufficient descriptions of the real properties entered therein, their present owners, and the dates of their most recent transfer or alienation accompanied by copies of corresponding deeds of sale, donation, or partition, or other forms of alienation.Additionally, the Register of Deeds shall require any person presenting a document of transfer, alienation or encumbrance of real property to accompany the document with a certificate of real property tax clearance issued by the City Treasurer. Failure to present this tax clearance certificate shall be valid cause for the Register of Deeds to refuse registration.
• b. The Building Official. Pursuant to Section 210 of R.A. 7160, the City Building Official must transmit to the City Assessor a copy of all permits for the construction, addition, improvement, repair, or renovation of a building, or other structures within thirty (30) days from their date of issuance.
• c. Machinery Registration Official. Pursuant to Section 210 of R.A. 7160, any official issuing permits or certificates of registration for machineries, industrial equipment, or mechanical contrivances and apparatuses attached or affixed on land or to another real property must transmit a copy of such permit or certificate to the City Assessor within thirty (30) days of its issuance.
• d. Notaries Public. Pursuant to Section 278 of R.A. 7160, notaries public shall furnish the City Assessor, free of charge, with copies of all contracts selling, transferring, or otherwise conveying, leasing, or mortgaging real property received by, or acknowledged before them within thirty (30) days from the end of the month of notarization.
• e. Geodetic Engineers. Pursuant to Section 211 of R.A. 7160, geodetic engineers, public or private, shall furnish free of charge to the City Assessor a white or blue print copy, or a digital copy, of approved original or subdivision plans or maps of surveys for lands located in the city executed by them within thirty (30) days from receipt of approval of such plans from the Land Management Bureau (LMB), Land Registration Authority (LRA), or the Department of Human Settlements and Urban Development (DHSUD), as the case may be.
• f. Punong Barangays. It shall be the duty of each Punong Barangay to submit to the City Assessor not later than March 30 of each year a report of on-going and newly completed constructions or improvements of buildings and other structures and of the installation of machineries or equipment for commercial use, as of December 31 of the preceding year, in their respective barangay indicating therein the exact address or location and the property owner if known.

SECTION 5. POWERS OF THE CITY ASSESSOR.

To carry out its mandate, the City Assessor is vested with the following administrative powers:

• a. Assessor-Made Declarations. Pursuant to Section 204 of R.A. 7160, if a property owner or administrator fails or refuses for any reason to file the required sworn statement within the prescribed period, the City Assessor shall declare the property in the name of the defaulting owner, if known, or against an unknown owner, and assess it for taxation purposes. No oath shall be required for an assessor-made declaration. This assessor-made declaration shall be valid and binding for taxation purposes.
• b. Authority to Take Evidence. Pursuant to Section 213 of R.A. 7160, the City Assessor or an authorized deputy may summon owners, administrators, or witnesses, administer oaths, and take depositions concerning any real property, its ownership, actual use, amount, nature, or value, to determine its correct appraisal and assessment.

SECTION 6. REAL PROPERTY INFORMATION SYSTEM.

A GIS-based Real Property Information System shall be established to serve as an integrated, spatially enabled land administration platform consolidating all the declarations, reports and existing real property database of the City Assessor’s Office. It shall link spatial data with real property records including valuations and assessed value and can be part of a broader city government digital infrastructure.

SECTION 7. DATA PRIVACY.

Records and information received or generated by the City Assessor’s Office pertaining to private properties shall be subject to restrictions on access, disposal, disclosure, use, or publication as provided for under Republic Act No. 10173 or the “Data Privacy Act” as well as Republic Act No. 10175 or the “Cybercrime Prevention Act of 2012.”

SECTION 8. NON-COMPLIANCE OF REPORTING DUTIES BY EXTERNAL ENTITIES.

Non-compliance of the reporting duties by officials or professionals outside the administrative control or supervision of the city government shall be reported by the City Assessor to their respective regulatory or administrative body citing their failure to perform their lawful duties and seeking such body’s appropriate action.

SECTION 9. NON-COMPLIANCE OF REPORTING DUTIES BY CITY GOVERNMENT EMPLOYEES.

Non-compliance of the reporting duties by city government employees shall be dealt with in accordance with civil service laws and regulations and Republic Act No. 12001.

SECTION 10. BACK TAXES.

Properties declared for the first time shall not be subject to back taxes provided such sworn statement is received by the City Assessor not later than June 30, 2027. Tax shall accrue thereon starting on the quarter following the date the notice of assessment is received.

On the other hand, real property declared for the first time—whether by the owner, administrator or City Assessor—wherein such declaration was made after June 30, 2027, shall be assessed for taxes for the period during which it would have been liable for such taxes but in no case for more than ten (10) years prior to the date of initial assessment provided such taxes shall be computed on the basis of the applicable schedule of values in force during the corresponding period.

If such taxes are paid on or before the end of the quarter following the date the notice of assessment was received by the owner or his representative, no interest for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of two percent (2%) per month or a fraction thereof from the date of the receipt of the assessment until such time the taxes are fully paid.

SECTION 11. MULTI-YEAR BUDGETARY REQUIREMENT.

The City Assessor shall prepare a multi-year capability development plan to include the establishment of a GIS-based real property information system and the creation of a Real Property Valuation Unit as mandated by Republic Act No. 12001, which shall be submitted for integration into the city’s Comprehensive Development Plan, Investment Programs and Annual Budget.

SECTION 12. SEPARABILITY CLAUSE.

If any provision or part of this Ordinance is declared unconstitutional or invalid by a court of competent jurisdiction, the remaining provisions or parts not affected shall continue in full force and effect.

SECTION 13. REPEALING CLAUSE.

All local ordinances, executive orders, rules, and regulations, or parts thereof, which are inconsistent with the provisions of this Ordinance are hereby repealed, amended, or modified accordingly.

SECTION 14. EFFECTIVITY CLAUSE.

This Ordinance shall take effect after ten (10) days from the date a copy thereof is posted on a bulletin board at the entrance of city hall and in at least two (2) other conspicuous places in the city.

ENACTED: September 1, 2026.

WE HEREBY CERTIFY to the correctness of the foregoing ordinance.

GABRIEL H. BORDADO JR.

City Vice Mayor & Presiding Officer

LILIAN O. PASCUAL

Acting Secretary to the Sangguniang Panlungsod

APPROVED:

MARIA LEONOR G. ROBREDO

City Mayor