GENELLE MAE A.

MADRIGAL
BC SCHOOL OF LAW
TAXATION II

SPECIAL ASSESSMENT | Tax or Not?

Special assessment refers to the enforced proportional contribution from owners of lands for special benefits
resulting from public improvements.

A Special Assessment (1) is levied only on land, unlike a tax which is imposed on persons, property and excises; (2)
cannot be made a personal liability of the person assessed; (3) is based wholly on benefit; and (4) is exceptional both
as to time and locality.

Since special assessments are not taxes within the constitutional or statutory provisions on tax exemptions, it follows
that the exemption under Sec. 28(3), Art. VI of the Constitution does not apply to special assessments.

SECTION 28. (1) The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system
of taxation.

(2) The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations
and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other
duties or imposts within the framework of the national development program of the Government.

(3) Charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit
cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious,
charitable, or educational purposes shall be exempt from taxation.

(4) No law granting any tax exemption shall be passed without the concurrence of a majority of all the Members of
the Congress.

In addition, the constitutional exemption granted under the said provision of the Constitution covers charitable
institutions, churches, and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all
lands, buildings and improvements actually, directly and exclusively used for religious, charitable or educational
purposes.

Furthermore, the provision under the Local Government Code, special assessments do not apply to properties
exempt from the basic real property tax.

SECTION 240. Special Levy by Local Government Units. – A province, city or municipality may impose a special levy
on the lands comprised within its territorial jurisdiction specially benefited by public works projects or improvements
funded by the local government unit concerned: Provided, however, That the special levy shall not exceed sixty
percent (60%) of the actual cost of such projects and improvements, including the costs of acquiring land and such
other real property in connection therewith: Provided, further, That the special levy shall not apply to lands exempt
from basic real property tax and the remainder of the land portions of which have been donated to the local
government unit concerned for the construction of such projects or improvements.

SECTION 243. Fixing the Amount of Special Levy. – The special levy authorized herein shall be apportioned,
computed, and assessed according to the assessed valuation of the lands affected as shown by the books of the
assessor concerned, or its current assessed value as fixed by said assessor if the property does not appear of record
in his books. Upon the effectivity of the ordinance imposing special levy, the assessor concerned shall forthwith
proceed to determine the annual amount of special levy assessed against each parcel of land comprised within the
area especially benefited and shall send to each landowner a written notice thereof by mail, personal service or
publication in appropriate cases.

The nature of special assessments can be better understood in light of the above-cited provisions.