CHAPTER 4.

- Civil Remedies for Collection of Revenues

SECTION 172. Application of Chapter. - The provisions of this Chapter and the remedies
provided herein may be availed of for the collection of any delinquent local tax, fee, charge,
or other revenue.

SECTION 173. Local Government's Lien. - Local taxes, fees, charges and other revenue
constitute a lien, superior to all liens, charges or encumbrances in favor of any person,
enforceable by appropriate administrative or judicial action, not only upon any property or
rights therein which may be subject to the lien but also upon property used in business,
occupation, practice of profession or calling, or exercise of privilege with respect tot which
the lien is imposed. The lien may only be extinguished upon full payment of the delinquent
local taxes fees and charges including related surcharges and interest.

SECTION 174. Civil Remedies. - The civil remedies for the collection of local taxes, fees, or,
and surcharges and interest resulting from delinquency shall be:

(a) By administrative action thru distraint of goods, chattels, or effects, and other personal
of whatever character, including stocks and other securities, debts, credits, bank accounts,
and interest in and rights to personal property, and by levy upon real property and interest in
or rights to real property; and

(b) By judicial action. Either of these remedies or all may be pursued concurrently or at the
discretion of the local government unit concerned.

SECTION 175. Distraint of Personal Property. - The remedy by distraint shall proceed as
follows:

(a) Seizure - Upon failure of the person owing any local tax, fee, or charge to pay the same at
the time required, the local treasurer or his deputy may, upon written notice, seize or
confiscate any personal property belonging to that person or any personal property subject
to the lien in sufficient quantity to satisfy the tax, fee, or charge in question, together with any
increment thereto incident to delinquency and the expenses of seizure. In such case, the
local treasurer or his deputy shall issue a duly authenticated certificate based upon the
records of his office showing the fact of delinquency and the amounts of the tax, fee, or
charge and penalty due. Such certificate shall serve as sufficient warrant for the distraint of
personal property aforementioned, subject to the taxpayer's right to claim exemption under
the provisions of existing laws. Distrained personal property shall be sold at public auction in
the manner herein provided for.

(b) Accounting of distrained goods - The officer executing the distraint shall make or cause
to be made an account of the goods, chattels or effects distrained, a copy of which signed by
himself shall be either with the owner or person from whose possession the goods, chattels
or effects are taken, or at the dwelling or place of business of that person and with someone
of suitable age and discretion, to which list shall be added a statement of the sum demanded
and a note of the time and place of sale.

(c) Publication - The officer shall forthwith cause a notification to be exhibited in not less
than (3) public and conspicuous places in the territory of the local government unit where the
distraint is made, specifying the time and place of sale, and the articles distrained. The time
of sale shall not be less than twenty (20) days after notice to the owner or possessor of the
property as above specified and the publication or posting of the notice. One place for the
posting of the notice shall be at the office of the chief executive of the local government unit
in which the property is distrained.

(d) Release of distrained property upon payment prior to sale - If at any time prior to the
sale, all the proper charges are paid to the officer conducting the sale, the goods or effects
distrained shall be restored to the owner.

(e) Procedure of sale - At the time and place fixed in the notice, the officer conducting the
sale sell the goods or effects so distrained at public auction to the highest bidder for cash.
Within five (5) days after the sale, the local treasurer shall make a report of the proceedings
in writing to the local chief executive concerned.

Should the property distrained be not disposed of within one hundred and twenty (120) days
from the date of distraint, the same shall be considered as sold to the local government unit
concerned for the amount of the assessment made thereon by the Committee on Appraisal
and to the extent of the same amount, the tax delinquencies shall be cancelled.

Said Committee on Appraisal shall be composed of the city or municipal treasurer as

(f) Disposition of proceeds - The proceeds of the sale shall be applied to satisfy the tax,
including the surcharges, interest, and other penalties incident to delinquency, and the
expenses of the distraint and sale. The balance over and above what is required to pay the
entire claim shall be returned to the owner of the property sold. The expenses chargeable

upon the seizure and sale shall embrace only the actual expenses of seizure and
preservation of the property pending the sale, and no charge shall be imposed for the
services of the local officer or his deputy. Where the proceeds of the sale are insufficient to
satisfy the claim, other property may, in like manner, be distrained until the full amount due,
including all expenses, collected.

SECTION 176. Levy on Real Property. - After the expiration of the time required to pay the
tax, fee, or charge, real property may be levied on before, simultaneously, or after the
distraint of personal property belonging to the delinquent taxpayer. To this end, the
provincial, city or municipal treasurer, as the case may be, shall prepare a duly authenticated
certificate showing the name of the taxpayer and the amount of the tax, fee, or charge, and
penalty due from him. Said certificate shall operate with the force of a legal execution
throughout the Philippines. Levy shall be affected by writing upon said certificate the
description of the property upon which levy is made. At the same time, written notice of the
levy shall be mailed to or served upon the assessor and the Registrar of Deeds of the
province or city where the property is located who shall annotate the levy on the tax
declaration and certificate of title of the property, respectively, and the delinquent taxpayer
or, if he be absent from the Philippines, to his agent or the manager of the business in
respect to which the liability arose, or if there be none, to the occupant of the property in
question. In case the levy on real property is not issued before or simultaneously with the
warrant of distraint on personal property, and the personal property of the taxpayer is not
sufficient to satisfy his delinquency, the provincial, city or municipal treasurer, as the case
may be, shall within thirty (30) days after execution of the distraint, proceed with the levy on
the taxpayer's real property. A report on any levy shall, within ten (10) days after receipt of
the warrant, be submitted by the levying officer to the Sanggunian concerned.
 SECTION 177. Penalty for Failure to Issue and Execute Warrant. - Without prejudice to
criminal under the Revised Penal Code and other applicable laws, any local treasurer who
fails to issue or execute the warrant of distraint or levy after the expiration of the time
prescribed, or who is found guilty of abusing the exercise thereof by competent authority
shall be automatically dismissed from the service after due notice and hearing.

SECTION 178. Advertisement and Sale. - Within thirty (30) days after levy, the local treasurer
proceed to publicly advertise for sale or auction the property or a usable portion thereof as
may be necessary to satisfy the claim and cost of sale; and such advertisement shall cover a
period of at least thirty (30) days. It shall be effected by posting a notice at the main entrance
of the municipal building or city hall, and in a public and conspicuous place in the Barangay
where the real property is located, and by publication once a week for three (3) weeks in a
newspaper of general circulation in the province, city or municipality where the property is
located. The advertisement shall contain the amount of taxes, fees or charges, and penalties
due thereon, and the time and place of sale, the name of the taxpayer against whom the
taxes, fees, or charges are levied, and a short description of the property to be sold. At any
time before the date fixed for the sale, the taxpayer may stay the proceedings by paying the
taxes, fees, charges, penalties and interests. If he fails to do so, the sale shall proceed and
shall be held either at the main entrance of the provincial, city or municipal building, or on
the property to be sold, or at any other place as determined by the local treasurer conducting
the sale and specified in the notice of sale.

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of
the sale to the Sanggunian concerned, and which shall form part of his records. After
consultation with the Sanggunian, the local treasurer shall make and deliver to the purchaser
a certificate of sale, showing the proceedings of the sale, describing the property sold,
stating the name of the purchaser and setting out the exact amount of all taxes, fees,
charges, and related surcharges, interests, or penalties: Provided, however, That any excess
in the proceeds of the sale over the claim and cost of sales shall be turned over to the owner
of the property.

The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray
the costs of collection by means of the remedies provided for in this Title, including the
preservation or transportation in case of personal property, and the advertisement and
subsequent sale, in cases of personal and real property including improvements thereon.

SECTION 179. Redemption of Property Sold. - Within one (1) year from the date of sale, the
delinquent taxpayer or his representative shall have the right to redeem the property upon
payment to the local treasurer of the total amount of taxes, fees, or charges, and related
surcharges,

interests or penalties from the date of delinquency to the date of sale, plus interest of not
more than two percent (2%) per month on the purchase price from the date of purchase to the
date of redemption. Such payment shall invalidate the certificate of sale issued to the
purchaser and the owner shall be entitled to a certificate of redemption from the provincial,
city or municipal treasurer or his deputy.

The provincial, city or municipal treasurer or his deputy, upon surrender by the purchaser of
the certificate of sale previously issued to him, shall forthwith return to the latter the entire
purchase price paid by him plus the interest of not more than two percent (2%) per month
herein provided for, the portion of the cost of sale and other legitimate expenses incurred by
him, and said property thereafter shall be free from the lien of such taxes, fees, or charges,
related surcharges, interests, and penalties.

The owner shall not, however, be deprived of the possession of said property and shall be
entitled to the rentals and other income thereof until the expiration of the time allowed for its
redemption.

SECTION 180. Final Deed to Purchaser. - In case the taxpayer fails to redeem the property as
provided herein, the local treasurer shall execute a deed conveying to the purchaser so much
of the property as has been sold, free from liens of any taxes, fees, charges, related
surcharges, interests, and penalties. The deed shall succinctly recite all the proceedings
upon which the validity of the sale depends.

SECTION 181. Purchase of Property By the Local Government Units for Want of Bidder. - In
case there is no bidder for the real property advertised for sale as provided herein, or if the
highest bid is for an amount insufficient to pay the taxes, fees, or charges, related
surcharges, interests, penalties and costs, the local treasurer conducting the sale shall
purchase the property in behalf of the local government unit concerned to satisfy the claim
and within two (2) days thereafter shall make a report of his proceedings which shall be
reflected upon the records of his office. It shall be the duty of the Registrar of Deeds
concerned upon registration with his office of any such declaration of forfeiture to transfer
the title of the forfeited property to the local government unit concerned without the
necessity of an order from a competent court.

Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative,
may redeem the property by paying to the local treasurer the full amount of the taxes, fees,
charges, and related surcharges, interests, or penalties, and the costs of sale. If the property
is not redeemed as provided herein, the ownership thereof shall be fully vested of the local
government unit concerned.

SECTION 182. Resale of Real Estate Taken for Taxes, Fees, or Charges. - The Sanggunian
may, by ordinance duly approved, and upon notice of not less than twenty (20) days, sell and
dispose of the real property acquired under the preceding section at public auction. The
proceeds of the sale shall accrue to the general fund

SECTION 183. Collection of Delinquent Taxes, Fees, Charges or other Revenues through
Judicial Action. - The local government unit concerned may enforce the collection of
delinquent taxes, fees, charges or other revenues by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local treasurer within the period prescribed
in Section 194 of this Code.

SECTION 184. Further Distraint or Levy. - The remedies by distraint and levy may be
repeated if necessary until the full amount due, including all expenses, is collected.

SECTION 185. Personal Property Exempt from Distraint or Levy. - The following property
shall be exempt from distraint and the levy, attachment or execution thereof for delinquency
in the payment of any local tax, fee or charge, including the related surcharge and interest:

(a) Tools and the implements necessarily used by the delinquent taxpayer in his trade or
employment;

(b) One (1) horse, cow, carabao, or other beast of burden, such as the delinquent taxpayer
may select, and necessarily used by him in his ordinary occupation;
(c) His necessary clothing, and that of all his family;

(d) Household furniture and utensils necessary for housekeeping and used for that purpose
by the delinquent taxpayer, such as he may select, of a value not exceeding Ten thousand
pesos (Php10,000.00);

(e) Provisions, including crops, actually provided for individual or family use sufficient for
four (4) months;

(f) The professional libraries of doctors, engineers, lawyers and judges;

(g) One fishing boat and net, not exceeding the total value of Ten thousand pesos
(Php10,000.00), by the lawful use of which a fisherman earns his livelihood; and

(h) Any material or article forming part of a house or improvement of any real property.