Family seeks tax credit for errors in assessment

A taxpayer recently requested the city council to grant him tax credit to rectify the city's erroneous assessment of his real property in barangay Tinago, which made him pay more than his actual dues.

Tereso Tan said he forwarded his request to the city council complying with the resolution of the Local Board of Assessment Appeals, dated on August 25, 2005, which stated that his request for retroactive application and/or tax credit should be addressed to the city council.

Tan's family, which owns a lot in Tinago, was found to have made several overpayments of real property taxes from 1994 to 2001.

The board, in its March 10, 2005 order, stated that the assessment of Tan's property under Tax Declaration No. GR2K-06-047-00878 be reduced from P1.8 million to P623,100, effective 2001.

The order was based on the findings of the city assessor's inspection that the warehouse sitting on the property was already 53 years old and severely depreciated.

On October 14, 2004, assessor's inspectors Cesar Concon and Myrna Bertulfo reported and recommended to the board that the appraisal of the warehouse be downgraded from Grade 1-C to Grade II-B.

They further said that depreciation allowance of 14 percent should also be adjusted to 49 percent commensurate to the age of the warehouse, besides correcting its previously stated area of 1,456.76-square meters to its original area of 1,012-square meters only.

Tan, later wrote the board that an error in the assessment of his family's property as well as overpayment of the realty taxes due. So he requested the board again to make the correction retroactive to the year 1994, instead of 2001 when the error was declared.

Tan explained that when he signed the document of the board rectifying the errors, it was done in undue haste and without his legal counsel. He realized later on that the retroactive correction should start in 1994.

Tan also asked the council to cover the rectification with a tax credit in his favor. - Cristina C. Birondo