ANGELICA BELLADONNA C.

LEONOR
LLB- III

This paper seeks to answer the question as to whether a special

assessment can be treated as ‘tax’ in the light of its imposition as a levy
exercised by the Local Government Units under Section 240 of the Local
Government Code.

Special assessment is an enforced proportional contribution from

the owners of lands especially benefited by public improvements. In the
case of Republic vs. Bacolod Murcia1, there is substantial distinction
between a special assessment and an ordinary tax. Substantiating on
this matter, the Supreme Court states, to wit:

The purpose of the former (special tax) is to finance the

improvement of particular properties, with the benefits of the
improvement accruing or inuring to the owners thereof who,
after all, pay the assessment. The purpose of an ordinary tax, on
the other hand, is to provide the Government with revenues
needed for the financing of state affairs. Thus, while the refusal
of a citizen to pay his ordinary taxes may not indeed be
sanctioned because it would impair government functions, the
same would not hold true in the case of a refusal to comply
with a special assessment.
Emphasis and underscoring supplied

Elsewise stated, a special assessment is not a personal liability

imposed upon the person assessed but is limited to the land or property
which derives some special benefit from an improvement. Special
assessment is not a means or measure intended to raise revenues for the
government. It is worthy to emphasize that the proceeds of a special
assessment shall be solely devoted to the specific purpose to which the
assessment was authorized, thus, its benefits accrues only to the owners
thereof who actually paid for such assessment.

In another case2 decreed that the principle underlying special

assessment to meet the cost of public improvements is the property upon
which they are imposed is peculiarly benefited, and therefore, the
owners do not, in fact, pay anything in excess of what they received
by reason of such improvement. The imposition of special assessment
is based wholly on benefits accruing to the owners and not the necessity
of raising government revenues.

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Republic of the Philippines vs. Bacolod- Murcia Milling Co,et al. G.R. No.
L-19824, L- 19825, 19826, July 09, 1966
2 Norwood vs. Baer, 172 US 269
TAXATION II
Nature of Special Assessment
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In other jurisdictions, special assessment is also called “benefit

assessment”. The name is fitting considering that the philosophy behind
such is to link the cost of public improvements to those landowners
landowners who are specifically benefit from those improvement.

By way of illustration, a special assessment can be levied by the

local government to provide parking lots, street paving, fountains and
other facilities aimed at improving commercial areas owned by the
persons who will be paying the assessment and will be ultimately
benefited by such improvement.

While special assessment is an enforced contribution to the public

welfare, albeit with a peculiar character, the same cannot be brought
within the meaning of the term tax as it is merely brought into being for
a particular occasion and to accomplish a particular purpose.
Meanwhile, tax is a continuing burden, without it government cannot
exist.

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