A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
theChan Robles Virtual Law Library
This page features the full text of
Presidential Decree No. 464
The
Real Property Tax Code
ENACTING
A REAL PROPERTY TAX CODE.
.chan
robles
virtual law library.
PRESIDENTIAL
DECREE NO. 464ENACTING
A REAL PROPERTY TAX CODE..chan
robles
virtual law library
.chan
robles
virtual law libraryWHEREAS,
this country cannot progress steadily if its local governments are not
potent political subdivisions contributing their proportionate shares
to
national progress;.chanrobles virtual law library
.chanrobles virtual law library
WHEREAS,
the past decade saw the passage of the Local Autonomy Act, the Barrio
Charter,
the Decentralization Act and other pieces of legislation intended to
make
local governments financially self-reliant and stable;.chanrobles virtual law library
WHEREAS,
it is very apparent that in spite of all these laws, local governments
still find difficulty in providing adequate funds with which to
underwrite
basic and essential public services within their respective areas of
responsibility;
WHEREAS,
studies show that one of the main reasons behind this is the failure of
local governments to fully tap the income potentialities of the real
property
tax;
WHEREAS,
to remedy the situation, there is an urgent and compelling need to
upgrade
assessment services by updating assessment techniques, procedures and
practices
and thereby bring about equitable distribution of the realty tax burden
among real property owners throughout the country;
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue
of the powers vested in me by the Constitution do hereby adopt,
promulgate
and decree, as it hereby adopted, promulgated and decreed, as part of
the
law of the land, this decree entitled "The Real Property Tax Code", the
context of which follows:chanroblesvirtuallawlibrary
CHAPTER
I
GENERAL
PROVISIONS
Section
1. Scope. — This Code shall govern
the appraisal and assessment of real property for purposes of taxation
by provinces, cities and municipalities, as well as the levy,
collection
and administration of real property tax..chanrobles virtual law library
Sec.
2. Fundamental Principles. —
The appraisal and assessment of real property for taxation purposes
shall
be guided by the following fundamental principles:chanroblesvirtuallawlibrary
(1) Real
property shall be appraised at its current and fair market value;(2) The
appraisal of real property shall be uniform in each local political
subdivision;
(3) Real
property shall be classified for assessment purposes on the basis of
its
actual use;
(4) Real
property shall be assessed on the basis of a uniform standard of value
within each local political subdivision;
(5) In
no case shall the appraisal and assessment of real property for
taxation
purposes and the collection of the real property tax be let to any
private
person; and
(6) The
goal of property assessment shall be the equitable distribution of the
tax burden.
Sec.
3. Definition of Terms. — When
used in this Code -
(a) Actual
use — shall refer to the purpose for which the property is principally
or predominantly utilized by the persons in possession of the property..chanrobles virtual law library(b) Ad
Valorem tax — is a levy on real property determined on the basis of a
fixed
proportion of the value of the property.
(c) Agricultural
land — land devoted principally to the raising of crops such as rice,
corn,
sugar cane, tobacco, coconut, etc., or to pasturing, dairying, inland
fishery,
salt making, and other agricultural uses, including timberlands and
forest
lands.
(d) Appraisal
— is the act or process of determining the value of a property as of a
specific date for a specific purpose.
(e) Assessment
— the act or process of determining the value of a property, or
proportion
thereof, subject to tax, including the discovery, listing and appraisal
of properties.
(f) Assessment
level — is the percentage applied to the market value to determine the
taxable or assessed value of the property.
(g) Assessed
Value — the value placed on taxable property by the assessor for ad
valorem
tax purposes. The assessed value when multiplied by the tax rate will
produce
the amount of tax due. It is synonymous to "taxable value."
(h) Commercial
land — land devoted principally to commercial purposes, and generally
for
the object of profit..chanrobles virtual law library
(i) Depreciated
Value — the value remaining after deducting depreciation from either
the
replacement cost or the reproduction cost.
(j) Economic
life — the estimated period over which it is anticipated that a
machinery
may profitably be utilized.
(k) Improvements
— Is a valuable addition made to property or an amelioration in its
condition,
amounting to more than more repairs or replacement of waste, costing
labor
or capital, and intended to enhance its value, beauty or utility or to
adapt it for new or further purposes.
(l) Industrial
land — land developed principally to industry as capital investment.
(m) Machinery
— shall embrace machines, mechanical contrivances, instruments,
appliances
and apparatus attached to the real estate. It includes the physical
facilities
available for production, as well as the installations and appurtenant
service facilities, together with all other equipment designed for or
essential
to its manufacturing, industrial or agricultural purposes.
(n) Market
value — is defined as "the highest price estimated in terms of money
which
the property will buy if exposed for sale in the open market allowing a
reasonable time to find a purchaser who buys with knowledge of all the
uses to which it is adapted and for which it is capable of being used."
It is also referred to as `the price which a willing seller would sell
and willing buyer would buy, neither being under abnormal pressure."
(o) Mineral
lands — are those lands in which minerals exist in sufficient quantity
or grade to justify the necessary expenditures to be incurred in
extracting
and utilizing such minerals.
(p) Original
cost — for newly acquired machinery not yet depreciated and appraised
within
the year of its purchase, refers to the actual cost of the machinery to
its present owner (plus the cost of transportation, handling and
installation
at the present site).
(q) Reassessment
— the assigning of new assessed values to property, particularly real
estate,
as the result of a general, partial or individual reappraisal of the
property..chanrobles virtual law library
(r) Remaining
economic life — the period of time (years) from the date of appraisal
to
the date when the machinery becomes valueless.
(s) Remaining
value — the value corresponding to the remaining useful life of the
machinery..chanrobles virtual law library
(t) Replacement
or reproduction cost (new) — the cost that would be incurred on the
basis
of current prices, in acquiring an equally desirable substitute
property,
or the cost of reproducing a new replica property on the basis of
current
prices with the same or closely similar material.
(u) Residential
land — land principally devoted to habitation..chanrobles virtual law library
Sec.
4. Administration of the Real
Property Tax. — The Department of Finance shall be primarily
responsible
for the proper, efficient and effective administration of the real
property
tax and for this purpose itshall:chanroblesvirtuallawlibrary
(a) Evolve
a comprehensive system of real property appraisal that will ensure fair
and realistic property valuations for taxation purposes;(b) Establish
uniform assessment methods and procedures that will equalize property
values
in each local political subdivision:chanroblesvirtuallawlibrary
(c) Ensure
that the ad valorem tax on real property shall be just, uniform and
equitable;
(d) Adopt
the necessary measures that will promote maximum tax collection
efficiency
at the local levels;
(e) Provide
for the optimum utilization by the local governments of the proceeds
from
the real property tax; and
(f) Formulate
and adopt policies and procedures that will improve technical skills
and
develop reasonable standards of performance in the local assessment and
treasury services.
In
order to attain the foregoing objectives, the Secretary of Finance
shall
exercise direct executive supervision over all assessment and treasury
officials and personnel in the local governments.
CHAPTER
II
APPRAISAL
AND ASSESSMENT OF REAL PROPERTY
Sec.
5. Appraisal of Real Property.
— All real property, whether taxable or exempt, shall be appraised at
the
current and fair market value prevailing in the locality where the
property
is situated.
Sec.
6. Declarations of Real Property
by Owner or Administrator. — It shall be the duty of all persons,
natural
or juridical, owning or administering real property, including the
improvements
therein, within a city or municipality, or their duly authorized
representative,
to prepare, or cause to be prepared, and file with the provincial or
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 of real property
herein
referred to shall be filed with the assessor concerned once every five
years during the period from January first to June thirtieth,
commencing
with the calendar year 1977, unless required earlier by the Secretary
of
Finance..chanrobles virtual law library
Sec.
7. Declaration of Real Property
by the Assessor. — When any person, natural or juridical, by whom real
property is required to be declared under Section six hereof refuses or
fails for any reason to make such declaration within the time
prescribed,
the provincial or city assessor shall himself declare the property in
the
name of the defaulting owner, if known, or against an unknown owner, as
the case may be, and shall assess the property for taxation in
accordance
with the provisions of this Code. No oath shall be required of a
declaration
thus made by the provincial or city assessor.
Sec.
8. Listing of Real Property in
the Assessment Rolls. — In every province and city, there shall be
prepared
and maintained by the provincial or city assessor an assessment roll
wherein
shall be listed all real property, whether taxable or exempt, located
within
the province or city. Real property shall be listed and valued in the
name
of the owner or administrator, or anyone having legal interest in the
property.
The
undivided real property of a deceased person may be listed and valued
in
the name of the estate, or of the heirs and devisee without designating
them individually; and undivided real property other than owned by a
deceased
may be listed and valued in the name of one or more co-owners;
Provided;
however, That such heir, devisee or co-owner shall be liable severally
for all obligations imposed by this Code and for the payment of the
real
property tax with respect to the undivided property.
The
real property of a corporation, partnership or association shall be
entered
and assessed in the same manner as that of an individual.
Real
property owned by the Republic of the Philippines, its political
subdivisions
and any government-owned corporation so exempt by its charter, the
beneficial
use of which has been granted, for consideration or otherwise, to a
taxable
person, shall be listed for purposes of taxation in the name of the
grantee,
or of the public entity if such property has been acquired for resale
or
lease.
The
assessment roll shall be prepared in accordance with rules and
regulations
prescribed by the Secretary of Finance.
Sec.
9. Proof of Exemption of Real
Property from Taxation. — Every person by or for whom real property is
declared, who shall claim tax exemption for such property under this
Code
shall file with the provincial or city assessor within thirty days from
the date of the declaration of real property sufficient documentary
evidence
in support of such claim, including corporate charters, titles or
ownerships,
articles of incorporation, by-laws, contracts, affidavits and
certifications
and mortgage deeds, and similar documents.
If
the required evidence is not submitted within the period herein
prescribed,
the property shall be listed as taxable in the assessment roll.
However,
it shall be proven to be tax exempt the same shall be dropped from the
roll of taxable properties..chanrobles virtual law library
Sec.
10. Real property Identification
System. — All declarations of real property made under the provisions
of
this Code shall be kept and filed under a uniform identification system
to be established by the provincial of city assessors in accordance
with
the rules and regulations to be prescribed by the Secretary of Finance.
Sec.
11. Notification of Transfer
of Real Property Ownership. — Any person who shall transfer real
property
ownership to another shall notify the assessor of the province or city
wherein the property is situated within sixty days from the date of
such
transfer. The notification shall include the particulars of the
transfer,
description of the property alienated, and the name and address of the
transferee.
Sec.
12. Duty of Register of Deeds
to Apprise Assessor of Real Property Listed in Registry. — To ascertain
whether or not any real property entered in the Registry of Property
has
escaped discovery and listing for the purpose of taxation, the Register
of Deeds shall prepare and submit to the provincial or city assessor,
within
two years from the date of approval of this Code an abstract of his
registry,
which shall include brief but sufficient description of the real
properties
entered therein, their present owners and the dates of their most
recent
transfer or alienation's accompanied by copies of corresponding deeds
of
sale, donation or partition or other form of alienation.
It
shall also be the duty of the Register of Deeds to require every person
who shall present for registration a document of transfer, alienation
or
encumbrance of real property to accompany the same with a certificate
to
the effect that the real property subject of the transfer, alienation
or
encumbrance, as the case may be, has been fully paid of all real
property
taxes due thereon. Failure to provide such certificate shall be a valid
cause for the Register of Deeds to refuse the registration of the
document.
Sec.
13. Duty of Official Issuing
Building Permit or Certificates of Registration of Machinery to
Transmit
Copy to Assessor. — Any public official or employee who may now or
hereafter
be required by law or regulation to issue to any person a permit for
the
construction, addition, repair or renovation of a building or permanent
improvement, on land, or a certificate or registration for any
machinery,
including machines, mechanical contrivances, and apparatus, attached or
affixed on land, or to another real property shall transmit a copy of
such
permit or certificate, within thirty days of its issuance, to the
assessor
of the province or city wherein the property is situated.
Sec.
14. Duty of Surveyors to Furnish
Copy of Plans to Assessors. — It shall be the duty of all surveyors,
public
or private, to furnish free of charge to the assessor of the province
or
city where the land is located with a white or blue print copy of each
of all approved original or subdivision plans or maps of surveys
executed
by them within thirty days from receipt of such plans from the Bureau
of
Land or Land Registration Commission or the National Urban Planning
Commission,
as the case may be..chanrobles virtual law library
Sec.
15. Preparation of Schedule of
Values. — Before any general revision of property assessments is made,
as provided in this Code, there shall be prepared for the province or
city
a Schedule of Market Values for the different classes of real property
therein situated in such form and detail as shall be prescribed by the
Secretary of Finance.
Said
schedule, together with an abstract of the data on which it is based,
shall
be submitted to the Secretary of Finance for review not later than the
thirty-first day of December immediately preceding the calendar year
the
general revision of assessments shall be undertaken. The Secretary of
Finance
shall have ninety days from the date or receipt within which to review
said schedule to determine whether it conforms with the provisions of
this
Code.
Sec.
16. Authority of Assessor to
Take Evidence. — For the purpose of obtaining information on which to
base
the market value of any real property, the provincial or city assessor,
or his deputy, may summon witnesses, administer oaths and take
deposition,
concerning the property, its ownership, amount, nature and value.
Sec.
17. Amendment of Schedules of
Market Values. — For the correction of errors or inequalities in any
schedule
of market values, the provincial or city assessor shall, on his own
initiative
or upon the direction of the Secretary of Finance, prepare an amendment
designed to remedy such errors or inequalities. Such amendments shall
likewise
be subject to review by the Secretary of Finance within ninety days
from
the date of receipt thereof.
Sec.
18. Classes of Real Property
for Assessment Purposes. — For purposes of assessment, real property
shall
be classified as residential, agricultural, commercial or industrial
and
also as mineral in the case of lands.
Mineral
lands shall be further classified as follows:chanroblesvirtuallawlibrary
(a) Metallic
mineral lands, which shall include:chanroblesvirtuallawlibrary
(1) Patented
lode mining claims, producing or non-producing;(2) Unpatented
producing lode mining claims which may be patented;
(3) Unpatented
non-producing the lode mining claims which may be patented;.chanrobles virtual law library
(4) Patented
placer mining claims, producing or non-producing;
(5) Unpatented
producing placer mining claims which may be patented; and
(6) Unpatented
non-producing placer mining claims which may be patented..chanrobles virtual law library (b) Non-metallic
mineral lands, which shall include:chanroblesvirtuallawlibrary
(1) Patented,
producing or non-producing;(2) Unpatented,
producing which may be patented; and
(3) Unpatented,
non-producing, which may be patented.
Definition
of Terms. — "Patented" mineral lands are those lands covered by a duly
issue mineral patent signed by the President of the Philippines.
"Unpatented"
mineral lands are those lands which were located as mining claims under
the provisions of the Philippine Bill of 1902 but are not yet covered
by
a mineral patent.
"Producing
patented mineral claims" are those claims producing minerals for
commercial
purposes.
"Non-producing
patented mineral claims" are those claims which are only in the stage
of
exploration and development and has not produced minerals for
commercial
production.
A
"lode mineral claim" is a parcel of mineral lands containing a vein,
lode,
ledge, lens, or mass of ore in place which has been located in
accordance
with law.
A
"placer claim" is that which does not come under the definition of
"lode
mineral claim."
"Placer
deposits" are in loose, fragmentary or broken rocks, boulders, floats,
beds or deposits.
"Metallic"
deposits are those which contain any of the metallic elements or
minerals,
or their combination, such as gold, silver, platinum, tin, chromium,
iron,
manganese, copper, nickel, lead, zinc cinnabar, tungsten and the like.
.chanrobles virtual law library "Non-metallic"
deposits are all other deposits not covered by the above "metallic"
deposits.
In
case of conflict between the above definitions and those appearing in
the
Mining Act as amended, the latter shall prevail.
Special
Classes of Real Property. -
All
lands, buildings and other improvements thereon, actually, directly and
exclusively used for educational, cultural, recreational or scientific
purposes, as well as hospitals not owned and operated by the government
or by any of its instrumentalities, shall be classified as special.
Sec.
19. Actual Use of Real Property
as Basis for Assessment. — Real property shall be assessed on the basis
of its actual use regardless of where located and whoever uses it.
The
Secretary of Finance shall issue guidelines for the proper
implementation
of the provisions of this Section.
Sec.
20. Assessment Levels. — The
assessment levels to be applied to the current market values of real
property
for taxation purposes shall be as follows:chanroblesvirtuallawlibrary
(a) On
Lands. — The assessment levels in the province or city shall be
maintained
at the current levels of thirty per cent for residential lands; forty
per
cent for agricultural lands; and fifty per cent for commercial or
industrial
lands.
.chanrobles virtual law library(b) Mineral
Lands. — For purposes of taxation, mineral lands not covered by lease
shall
be appraised at fifty per cent of their market value to be determined
by
the Secretary of Finance upon consultation with the Director of Mines:
Provided, however, that mineral lands covered by leases shall be
declared
for taxation purposes either by the owner of the land or lessee and the
assessment level thereof shall be maintained at the current level of
fifty
per cent..chanrobles virtual law library
(c) On
Buildings, Machineries and other Improvements. — The assessment levels
now prevailing in the province or city shall be maintained but which
shall
in no case be lower than the assessment levels for lands hereinabove
prescribed
nor more than eighty per cent of the market value, except buildings
used
exclusively for residential purpose, the assessment levels for which
shall
be as follows:chanroblesvirtuallawlibrary
Assessment
level
chan
robles virtual law librarychan robles virtual law libraryMarket
Value
15%
chan
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or
less
20%
chan
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than 30,000.00 but
less than P50,000.00
25%
chan
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" "
50,000.00
" "
" 75,000.00
35%
chan
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" "
"75,000.00
" "
" 100,000.00
45%
chan
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" "
" 100,000.00
" "
" 150,000.00
55%
chan
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" "
"150,000.00
" "
" 250,000.00
65%
chan
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" ""
250,000.00
" "
" 350,000.00
75%
chan
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" "
" 350,000.00
" "
" 500,000.00
80%
chan
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" "
" 500,000.00
(d) Special
Classes. — The assessment level for all lands, buildings and other
improvement
thereon, actually, directly and exclusively used for educational,
cultural
or scientific purposes, as well as hospitals not owned and operated by
the government or by any of its instrumentalities shall be fifteen per
cent of the market value of such property and for those exclusively
used
for recreational purposes, thirty per cent of their market value..chanrobles virtual law library
For
the First general revision of assessments to be undertaken after the
approval
of this Code and every five years thereafter, the assessment levels
hereinabove
prescribed for the different classes of real property may be increased
at rates to be fixed by the Secretary of Finance but in no case shall
such
increase in rates exceed ten per cent of the assessment levels herein
prescribed
for each class of real property.
Sec.
21. General Revision of Assessments.
— Beginning with the calendar year 1978, the provincial or city
assessor
shall make a general revision of real property assessments in the
province
or city to take effect January 1, 1979, and once every five years
thereafter:
Provided, however, That if property values in a province or city, or in
any municipality, have greatly changed since the last general revision,
the provincial or city assessor may, with the approval of the Secretary
of Finance or upon his direction, undertake a general revision of
assessments
in the province or city, or in any municipality before the fifth year
from
the effectivity of the last general revision.
Sec.
22. Valuation of Real Property.
— Upon the discovery of real property or during the general revision of
property assessments as provided in Section twenty-one of this Code or
at any time when requested by the person in whose name the property is
declared, the provincial or city assessor or his authorized deputy
shall
make an appraisal and assessment in accordance with Section five hereof
of the real property listed and described in the declaration
irrespective
of any previous assessment or taxpayer's valuation thereon: Provided;
however,
That the assessment of real property shall not be increased oftener
than
once every five years in the absence of new improvements increasing the
value of said property or of any change in its use, except as otherwise
provided in this Code..chanrobles virtual law library
Sec.
23. Certification of Revised
Values to the Secretary of Finance. — When the provincial or city
assessor
shall have finished a general revision of property assessments for any
province, municipality or city, he shall so certify to the Secretary of
Finance and the assessments shall become effective and taxes shall
accrue
and be payable thereunder in accordance with the provisions of this
Code.
Sec.
24. Date of Effectivity of Assessment
or Reassessment. — All assessments or reassessments made after the
first
day of January of any year shall take effect on the first day of
January
of the succeeding year: Provided, however, That the reassessment of
real
property due to its partial or total destruction, or to a major change
in its actual use, or to any great and sudden inflation or deflation of
real property values, or to the gross illegality of the assessment when
made or to any other abnormal cause, shall be made within ninety days
from
the date any such cause or causes occurred, the same to take effect at
the beginning of the quarter next following the reassessment.
Sec.
25. Assessment of Property Subject
to Back Taxes. — Real property declared for the first time shall have
back
taxes assessed against it for the period during which it would have
been
liable if assessed from the first in proper course but in no case for
more
than ten years prior to the year of initial assessment; Provided,
however,
that the back taxes shall be computed on the basis of the applicable
schedule
of values in force during the corresponding period.
If
said taxes are paid before the expiration of the tax collection period
next ensuing, no penalty for delinquency shall be imposed, otherwise
the
taxes shall be subject to all the penalties to which they would have
been
liable and had they originally become delinquent after assessment of
the
property in the usual course.
Sec.
26. Binding effect of Assessment
or Reassessment. — All assessments and reassessments made under the
provisions
of this Code shall be valid and binding on all persons having legal
interest
on the property.
Sec.
27. Notification of New or Revised
Assessments. — When real property is assessed for the first time or
when
an exercising assessment is increased or decreased, the province or
city
shall within thirty days give written notice of such new or revised
assessment
to the person in whose name the property is declared. The notice may be
delivered personally to such person or to the occupant in possession,
if
any, or by mail to the last known address of the person to be served,
or
through the assistance of the barrio captain.
Sec.
28. Appraising Machinery. — The
current market value of the machinery shall be determined on the basis
of the original cost in the case of newly acquired machinery not yet
depreciated
and is appraised within the year of its purchase. In the case of all
others,
the current market value shall be determined by dividing the remaining
economic life of the machinery by its economic life and multiplied by
the
replacement or reproduction cost (new) of said machinery.
If
the machinery is imported, replacement or reproduction cost (new) shall
be the original acquisition cost which would normally include such
costs
as freight and insurance charges, brokerage, arrastre and handling,
customs
duties and taxes plus cost of inland transportation and handling, and
significant
installation charges at the present site. The cost in foreign currency
of imported machinery shall be converted to peso cost on the basis of
foreign
currency exchange rates as fixed by the Central Bank of the Philippines..chanrobles virtual law library
Sec.
29. Depreciation Allowance for
Machinery. — For purposes of assessment, a depreciation allowance shall
be made for machinery at a rate not exceeding ten per cent of its
original
cost or its replacement or reproduction cost (new), as the case may be,
for each year of use: Provided, That the remaining value for all kinds
of machinery shall be fixed at not less than twenty per cent of such
original
or replacement cost for so long as the machinery is useful and in
operation.
CHAPTER
III
ASSESSMENT
APPEALS
Sec.
30. Local Board of Assessment
Appeals. — Any owner who is not satisfied with the action of the
provincial
or city assessor in the assessment of his property may, within sixty
days
from the date of receipt by him of the written notice of assessment as
provided in this Code, appeal to the Board of Assessment appeals of the
province or city, by filing with it a petition under oath using the
form
prescribed for the purpose, together with copies of the tax
declarations
and such affidavit or documents submitted in support of the appeal.
Sec.
31. Organization, Powers and
Functions of the local Board of Assessment Appeals. — The Local Board
of
Assessment Appeals shall be composed of three members: the Register of
Deeds, as Chairman, the Provincial of City Auditor and the Provincial
or
City Engineer, as Members, who shall serve as such in an ex-officio
capacity
without additional compensation. In provinces or cities without
Provincial
or City Engineers, the Highway District Engineer shall serve as member
of the Board, likewise in an ex-officio capacity without additional
compensation.
In the absence of a regular appointee, the officer performing the
duties
of the Register of Deeds, or the Provincial or City Auditor, or the
Provincial,
City or Highway District Engineer whether in an acting capacity or as a
duly-designated officer-in-charge shall automatically become the
Chairman
or member of the said Board, as the case may be.
The
Chairman of the Board shall have the power to designate any government
employee of the province or city to serve as Secretary of the Board
also
without additional compensation.
The
Chairman and members of the Local Board shall enter into the duties of
their respective positions without need of further appointment or
special
designation immediately upon approval of this Code. The members of the
Board shall each take the following oath, copy of which shall be
furnished
the Secretary of Finance:chanroblesvirtuallawlibrary
"I
____________, having been appointed to the position of __________,
hereby
solemnly swear that I will well and faithfully discharge to the best of
my ability and duties of my present position and of all others I may
hereafter
hold under the Republic of the Philippines, and that I will support and
defend the Constitution of the Philippines; and that I will obey the
laws,
legal orders, and decrees promulgated by the duly constituted
authorities
of the Republic of the Philippines; and that I will well and truly hear
and determine all matters and issues between taxpayers and the
provincial
or city assessor submitted for my decision, and that I impose this
obligation
upon myself voluntarily, without mental reservation or purpose of
evasion.So
help me God.
_________________
Signature
SUBSCRIBED
AND SWORN to before as this ______ day of __________ A.D. _________ at
____________ Philippines.
__________________________
Signature
of Officer administering oath"
Sec.
32. Meetings. — The local Board
shall hold sessions at least once a month, and as often as may be
necessary
for the prompt disposition of the appealed cases pending before it. No
member of the Board shall be entitled to per diems or travelling
expenses
for his attendance in Board sessions, except when conducting an ocular
inspection in connection with a case under appeal.
Sec.
33. Expenses of the Board. —
All expenses of the Local Board of Assessment Appeals shall be charged
against the general fund of the province or city, as the case may be.
Local
Boards and councils shall appropriate the necessary funds to enable the
Board of Assessment Appeals in their respective localities to operate
effectively.
Sec.
34. Action by the Local Board
of Assessment Appeals. — The Local Board of Assessment Appeals shall
decide
the appeal within one hundred and twenty days from the date of receipt
of such appeal. The decision rendered must be based on substantial
evidence
presented at the hearing or at least contained in the record and
disclosed
to the parties or such relevant evidence as a reasonable mind might
accept
as adequate to support the conclusion..chanrobles virtual law library
In
the exercise of its appellate jurisdiction, the Board shall have the
power
to summon witnesses, administer oaths, conduct ocular inspection, take
depositions, and issue subpoena and subpoena duces tecum. The
proceedings
of the Board shall be conducted solely for the purpose of ascertaining
the truth without necessarily adhering to technical rules applicable in
judicial proceedings.
The
Secretary of the Board shall furnish the property owner and the
Provincial
or City Assessor with a copy each of the decision of the Board. In case
the provincial or city assessor concurs in the revision or the
assessment,
it shall be his duty to notify the property owner of such fact using
the
form prescribed for the purpose. The owner or administrator of the
property
of the assessor who is not satisfied with the decision of the Board of
Assessment Appeals, may, within thirty days after receipt of the
decision
of the Local Board, appeal to the Central Board of Assessment Appeals
by
filing his appeal under oath with the Secretary of the proper
provincial
or city Board of Assessment Appeals using the prescribed form stating
therein
the grounds and the reasons for the appeal, and attaching thereto any
evidence
pertinent to the case. A copy of the appeal should be also furnished
the
Central Board of Assessment Appeals, through its Chairman, by the
appellant.
Within
ten (10) days from receipt of the appeal, the Secretary of the Board of
Assessment Appeals concerned shall forward the same and all papers
related
thereto, to the Central Board of Assessment Appeals through the
Chairman
thereof.
Sec.
35. Central Board of Assessment
Appeals, its Organization. — The Central Board of Assessment Appeals
shall
be composed of the Secretary of Finance, as Chairman, the Secretary of
Justice and the Secretary of Local Government and Community
Development,
as Members, who shall serve without additional compensation.
The
Central Board of Assessment Appeals shall be assisted by a Board of
Hearing
Commissioners and a staff, which shall be initially composed of the
following
positions with compensation at the minimum rates indicated hereunder:chanroblesvirtuallawlibrary
Position
chan
robles virtual law librarychan robles virtual law librarychan robles
virtual
law librarychan robles virtual law libraryAnnual
Salary
1.One
Central Board Chief Hearing
Commissioner
chan
robles virtual law librarychan robles virtual law libraryP17,400.00.chanrobles virtual law library
2.Four
Central Board Hearing Commissioners
chan
robles virtual law librarychan robles virtual law library
chan P16,200.00
each
3.One
Central Board Secretary
chan
robles virtual law librarychan robles virtual law librarychan robles
virtual
law librarP9,600.00
4.Four
Central Board Stenographers
chan
robles virtual law librarychan robles virtual law librarychan robles
virtual
laP6,600.00
each
5.Three
Central Board Docket and Filing
Clerks
chan
robles virtual law librarychan robles virtual law librarychanP4,800.00
The
annual appropriations for the salaries of the abovementioned positions
and for such other positions as the Central Board may deem necessary to
create hereafter, as well as sufficient appropriations for other
operational
requirements of the Board of Hearing Commissioners and its staff, shall
henceforth be included in the annual budgets of the Department of
Finance
in the corresponding General Appropriations Decree or laws..chanrobles virtual law library
Any
provision of law to the contrary notwithstanding, appointment to the
positions
of Central Board Chief Hearing Commissioner, Central Board Hearing
Commissioners
and Central Board Secretary shall be exempt from the requirements and
restrictions
of the Civil Service Law, rules and regulations as well as those
pertaining
to position-item classifications and salary standardization. Any
government
retiree may be appointed to the Board of Hearing Commissioners and upon
his appointment, he shall not be required to reimburse or refund any
gratuity
received from the government nor shall any pension or annuity to which
he is entitled be suspended or reduced on account of his employment. A
member of the Board of Hearing Commissioners shall serve until he
reaches
the age of seventy unless he chooses to retire from the service or
sooner
removed for cause, as provided by law. The members of the Board of
Hearing
Commissioners shall be members of the bar, civil or mechanical
engineers,
or certified public accountants with at least five years supervisory
and-or
field experience in real property assessment work.
The
Secretary of Finance, as Chairman of the Central Board of Assessment
Appeals,
shall appoint the members of the Board of Hearing Commissioners and its
staff.
The
initial sum of one hundred twenty five thousand pesos is hereby
appropriated
from the General Fund in the National Treasury, not otherwise
appropriated,
to finance the operations of the Central Board of Assessment Appeals.
For
every fiscal year thereafter, such sums as may be necessary for the
operations
of the said Board shall be included in the appropriations of the
Department
of Finance in the corresponding General Appropriations Decree or laws.
The
Chairman and Members of the Central Board shall enter into the duties
of
their respective positions, without need of further appointment or
special
designation, immediately upon approval of this Code.
Sec.
36. Scope of Powers and Functions.
— The Central Board of Assessment Appeals shall have jurisdiction, over
appealed assessment cases decided by the Local Board of Assessment
Appeals.
The said Board shall decide cases brought on appeal within twelve (12)
months from the date of receipt, which decision shall become final and
executory after the lapse of fifteen (15) days from the date of receipt
of a copy of the decision by the appellant.
In
the exercise of its appellate jurisdiction, the Central Board of
Assessment
Appeals, or upon express authority, the Hearing Commissioner, shall
have
the power to summon witnesses, administer oaths, take depositions, and
issue subpoenas and subpoenas duces tecum.
The
Central Board of Assessment Appeals shall adopt and promulgate rules of
procedure relative to the conduct of its business.
Sec.
37. Effect of Appeals on the
Payment of the Real Property Tax. — Appeals on assessments of real
property
made under the provisions of this Code shall, in no case, suspend the
collection
of the corresponding realty taxes on the property involved as assessed
by the provincial or city assessor, without prejudice to subsequent
adjustment
depending upon the final outcome of the appeal.
CHAPTER
IV
IMPOSITION
OF REAL PROPERTY TAX
Sec.
38. Incidence of Real Property
Tax. — There shall be levied, assessed and collected in all provinces,
cities and municipalities an annual ad valorem tax on real property,
such
as land, buildings, machinery and other improvements affixed or
attached
to real property not hereinafter specifically exempted..chanrobles virtual law library
Sec.
39. Rates of Levy. — The provincial,
city or municipal board or council shall fix a uniform rate of real
property
tax applicable to their respective localities as follows:chanroblesvirtuallawlibrary
(1) In
the case of a province, the tax shall be fixed by ordinance of the
provincial
board at the rate of not less than one fourth of one percent but not
more
than one-half of one percent of the assessed value of real property.(2) In
the case of a city, the tax shall be fixed by ordinance of the
municipal
board or city council at the rate of not less than one-half of one
percent
but not more than two percent of the assessed value of real property.
The
ordinance fixing the rate of real property tax shall be enacted by the
local board or council not later than fifteenth day of September of the
year next preceding the year the tax shall begin to accrue. Within five
days after enactment, the board or council secretary shall forward the
ordinance to the local chief executive for his approval and signature.
If he considers any such ordinance prejudicial to the public welfare,
he
may veto it by signifying to the local board or council concerned his
disapproval
thereof in writing. The local board or council may, by a two-thirds
(2/3)
vote of all its members and within fifteen days from the date of
receipt
of a copy of the vetoed ordinance, repass the same over the veto, in
which
case it shall be deemed approved without the local chief executive's
approval
or signature. If the local chief executive fails to approve or veto the
ordinance within ten days after receipt of a copy thereof, it shall
likewise
be deemed approved.
.chanrobles virtual law library
The
ordinance fixing the rate of real property tax shall remain in full
force
and effect unless amended on or before September fifteenth of the year
next preceding the one in which the amendment is to take effect. Any
ordinance
reducing the existing rates of real property tax shall be subject to
review
by the Secretary of Finance who shall act thereon within sixty days
upon
receipt of a copy thereof; otherwise, the reduced rates shall be deemed
effective on the first day of January of the succeeding year.
Sec.
40. Exemptions from Real Property
Tax. — The exemption shall be as follows:chanroblesvirtuallawlibrary
(a) Real
property owned by the Republic of the Philippines or any of its
political
subdivisions and any government-owned corporation so exempt by its
charter:
Provided; however, That this exemption shall not apply to real property
of the abovenamed entities the beneficial use of which has been
granted,
for consideration or otherwise, to a taxable person.
(b) Non-profit
cemeteries or burial grounds.
(c) Charitable
institutions, churches, personages or convents appurtenant thereto,
mosques,
and all land, buildings, and improvements actually, directly and
exclusively
used for religious or charitable purposes.
(d) Real
property in any one city or municipality belonging to a single owner
the
entire assessed valuation of which is not in excess of five hundred
pesos:
Provided, however, That the property so exempt shall be assessed and
records
thereof kept as in other cases.
(e) Land
acquired by grant, purchase or lease from the public domain for
conversion
into dairy farms for a period of five years from the time of such
conversion;
and machinery of a new and preferred industry as certified by the Board
of Investments used or operated for industrial, agricultural,
manufacturing
or mining purposes, during the first three years of the operation of
the
machinery.
(f) Perennial
trees and plants of economic value, except where the land upon which
they
grow is planted principally to such growth.
(g) Real
property exempt under other laws.
CHAPTER
V
SPECIAL
LEVIES ON REAL PROPERTY
Sec.
41. An additional one per cent
tax on real property for the Special Education Fund. — There is hereby
imposed an annual tax of one per cent on real property to accrue to the
Special Education Fund created under Republic Act No. 5447, which shall
be in addition to the real property tax which local governments are
authorized
to levy, assess and collect under this Code; Provided, however, That
when
the entire total assessed valuation of real property situated in a
province
or city assessable to any one person does not exceed three thousand
pesos,
the additional one per cent tax herein imposed shall not be collected..chanrobles virtual law library
Sec.
42. Additional ad valorem tax
on idle lands. — The President of the Philippines, at his discretion or
upon recommendation of the Secretary of Finance, may authorize
provinces,
cities and municipalities to levy, assess and collect an additional
real
property tax on idle private lands at a rate of not exceeding two per
cent
per annum based on the prevailing assessed value of the property.
Sec.
43. Idle lands, coverage. — For
purposes of this Code, idle lands shall include the following:chanroblesvirtuallawlibrary
(a) Agricultural
lands more than five hectares in area suitable for cultivation,
dairying,
inland fishery and other agricultural uses, three-fourths of which
remain
uncultivated or unimproved as certified to by the provincial
agriculturist.
In the case of agricultural lands planted to permanent or perennial
crops
with at least one hundred trees to a hectare shall not be considered
idle
land. Lands actually used for grazing purposes shall not also be
considered
idle land:chanroblesvirtuallawlibrary
(b) Urban
lands in chartered cities and municipalities exceeding five thousand
square
meters in area, two-thirds of which remain unutilized or unimproved as
certified to by the provincial or city assessor. This section shall
likewise
apply to residential lots or subdivisions duly approved by proper
authorities,
the ownership of which has been transferred to individual owners. If
the
acquired lots, however, remain idle because the subdivision itself is
not
developed in accordance with its subdivision plans, the tax imposable
under
Section forty-two of this Code on the individual lots shall be assessed
on the subdivision and paid for by the subdivision owner. Individual
lots
of such subdivisions, the ownership of which has not been transferred
to
the buyer shall be considered as forming part of the subdivision.
Sec.
44. Idle lands exempt from tax.
— The special levy on idle lands shall not apply to landowners who are
unable to improve, utilize or cultivate their lands due to any of the
following
causes:chanroblesvirtuallawlibrary
(a) Adverse
peace and order conditions as certified to by the provincial commander,
unless, upon restoration of the peace and order in any locality duly
certified
by the said provincial commander and if within one year from the date
of
such certification the idle land has not been improved, utilized or
cultivated,
a tax may be imposed thereon pursuant to Section forty-two hereof.
(b) Financial
loss of the landowner due to fire, flood, typhoon, earthquake and other
causes of similar nature duly attested by the owner in an affidavit to
be submitted to the provincial or city assessor stating the ground or
grounds
therein, unless the idle land is not improved to the extent prescribed
in the next proceeding Section within two years from the date of the
occurrence
of the loss, in which case, the tax imposable under Section forty-two
hereof
may be levied..chanrobles virtual law library
(c) Existing
court litigations involving the land subject to tax mentioned in this
chapter
as certified by the Court under which the case is pending unless said
land
is not improved within one year after the final adjudication of the
case,
to the extent provided in the next proceeding Section, in which case,
the
tax imposable under Section forty-two hereof may be levied.
(d) Necessity
to leave the land in a fallow state as certified to by the provincial
agriculturist
stating, among others, the length of time after which the land shall be
considered ready for production, unless the idle land is not improved
to
the extent prescribed in the next preceding Section within one year
after
the termination of the period, in which case, the tax imposable under
Section
forty-two hereof may be levied.
(e) Unfavorable
physical factors, such as rocky nature of ground and uneven topography
in the case of agricultural land, which render the land unsuitable for
cultivation, as certified to by the provincial agriculturist.
In
all cases the landowner shall be duly notified by the provincial or
city
assessor, as the case may be, of the imposition of the tax.
Sec.
45. Application for exemption.
— Within two years from the approval of this code, any person having
legal
interest on the land, desiring to avail of the exemption under Section
44 hereof, shall file the corresponding application therefor with the
assessor
of the province or city where the land is situated. The application
shall
state the ground or grounds under which the exemption is being claimed.
The
Secretary of Finance shall promulgate rules and regulations for the
proper
implementation of the provisions of this Section.
Sec.
46. Listing of idle lands by
the assessor. — The provincial or city assessor shall make and keep an
updated record of idle lands within one year after the approval of this
Code and every year thereafter. For purposes of collection, the
provincial
or city assessor shall furnish a copy thereof to the provincial, city
or
municipal treasurer, as the case may be, who shall notify on the basis
of such record the person having legal interest on the lands of the
imposition
of the additional tax..chanrobles virtual law library
Sec.
47. Special levy by local governments.
— The provincial, city, municipal boards or councils may, by ordinance,
provide for the imposition and collection of a special levy on the
lands
comprised within the province, city, or municipality or parts thereof
especially
benefited by the laying out, opening, constructing, straightening,
widening,
grading, paying, curbing, walling, deepening, or otherwise
establishing,
repairing, enlarging, or improving public avenues, roads, streets,
alleys,
sidewalks, parks, plazas, bridges, landing places, wharves, piers,
docks,
levees, reservoirs, waterworks, water courses, esteros, canals, drains,
and sewers: Provided, however, That the special levy herein authorized
shall correspond only to a part not exceeding sixty per cent of the
costs
of said improvements or infrastructures financed by the province, city
or municipality, as the case may be, including the costs of acquiring
land
and such other real property in connection therewith. Within the
meaning
of this Section, all lands comprised within the district benefited,
except
lands exempt from the real property tax under Section forty hereof,
shall
be subject to the payment of the special levy.
Sec.
48. Ordinance imposing a special
levy. — Tax ordinance providing for the levying and collection of a
special
levy shall describe with reasonable accuracy the nature, extent and
location
of the work to be undertaken; the probable cost of the proposed work so
established, the limits whereof shall be stated by monuments and lines,
and the number of annual installments, which shall not be less than
five
nor more than ten, in which said special levy shall be payable. The
provincial
board, municipal board or city council, or municipal council shall not
be obliged, in the apportionment and computation of the special levy,
to
establish a uniform percentage of all lands subject to the payment of
the
tax for the entire district, but it may fix different rates for
different
parts or sections thereof, depending on whether such land is more or
less
benefited by the proposed work; nor shall the provincial board, the
municipal
board or city council, or municipal council be required to follow the
percentage
limitations imposed by Section thirty-nine of this Code.
The
provincial, city or municipal engineer shall make the plans,
specifications
and estimates of the proposed work.
Sec.
49. Publication of proposed ordinance
imposing a special levy. — The proposed special levy or ordinance shall
be published, with the list of the owners of the land affected thereby,
once a week for four consecutive weeks in any newspaper published in
the
locality, one in English, and one in the local dialect, if there be
any,
and in default of local papers, in any newspaper of general circulation
in
the province, city or municipality. The said ordinance in English, and
in the local dialect, shall also be posted in the city or municipality
and places affected by said improvement, and shall also be published
once
a week during four consecutive weeks by crier.
The
provincial, city or municipal secretary, shall, on application, furnish
a copy of the proposed ordinance to each landowner affected, or his
agent,
and shall if possible, send to all a copy of said proposed ordinance by
mail or messenger..chanrobles virtual law library
Sec.
50. Protest against special levy.
— Not later than thirty days after the last publication of the
ordinance
and list of landowners included in the zone subject to special levy, a
protest may be submitted to the provincial, municipal, or city board or
council, signed by a majority of the landowners affected by the
proposed
work, setting forth the addresses of the signers and arguments in
support
of their objection or protest against the improvement to be made or
against
the special levy imposed by ordinance. If no protest is filed within
the
time and under the conditions above specified, the provincial, city or
municipal ordinance shall become final and effective in all points
after
its approval by the corresponding board or council.
Sec.
51. Hearing a protest. — The
board or council, shall designate a date and place for the hearing of
the
protest filed in accordance with the next preceding Section and shall
give
reasonable time to all protestants who have given their address and to
all landowners affected by any protest, and shall order the publication
once a week, during two consecutive weeks in any newspaper of the
locality,
if there be one, of general circulation in the province, city or
municipality,
or a notice in English or in the local dialect, of the place and date
of
the hearing to be held. Said notice shall likewise be posted in the
city
or municipality and places affected by the improvement. After the
proper
hearing, the board or city council, shall render its final decision
confirming,
modifying or revoking its ordinance, and shall send notice of its
decision,
to all interested parties who have given their addresses, and shall
order
the publication of such decision, together with a list of the parcels
of
land affected by the special levy, three times weekly, for two
consecutive
weeks, in the manner hereinabove specified. The decision of the
municipal
council shall become final, if, before, expiration of thirty days from
the date of its last publication, no appeal is filed with the
provincial
board against the proposed improvement or against the special levy,
signed
by at least a majority of the landowners affected. The appellant or
appellants
shall immediately give the municipal council a written notice of the
appeal.
In the case of the province or city, the decision of the provincial
board
or city council is not appealable but shall become final after the
expiration
of thirty days from its last publication.
Sec.
52. Decision of the appeal. —
If an appeal is taken from the decision of the municipal council in the
manner provided for in the next preceding Section, the said council
shall
forward to the provincial board an excerpt from the minutes of said
council
relative to the proposed improvement and all other documents in
connection
therewith, within ten days after receipt of the notice of appeal. The
provincial
board shall designate the place and set a date which shall be within
thirty
days following receipt of the board of the documents from the municipal
council, for the hearing of the appeal, giving both parties notice
thereof.
During the hearing of the appeal, the municipal council shall be
represented
and heard, and the provincial board shall examine de novo all points
involved
in the protest filed, and its decision thereon shall be final..chanrobles virtual law library
Sec.
53. Fixing the amount of special
levy. — The special levy authorized under Section forty-seven hereof
shall
be apportioned, computed, and assessed according to the assessed
valuation
of such lands, as shown by the books of the assessor, or its current
assessed
value as fixed by said officer in the first instance if the property
does
not appear of record in his books. Upon the approval of the ordinance,
the provincial or city assessor shall forthwith proceed to determine
the
annual amount of special tax assessed against each parcel of land
compromised
within the district especially benefited and shall send to each
landowner
a written notice thereof by ordinary mail. If upon completion of work
it
should appear that the cost thereof is smaller or greater than the
estimated
cost of the work, the provincial or city assessor shall without delay
proceed
to correct the assessment by increasing or decreasing, as the case may
be, the special tax on each parcel of land affected, for the balance of
the unpaid annual installments. If all annual installments have already
been paid, the provincial or city treasurer shall fix the amount of
credit
to be allowed to, or the additional special tax to be levied upon the
land,
as the case may be. In all cases, he shall give notice of such
rectifications
to the parties interested.
Sec.
54. Payment of special levy.
— all sums due from any landowner or owners as payment of special levy
shall be payable to the provincial or city treasurer or his deputy in
the
same manner as the annual ordinary tax levied upon real property, in
accordance
with the provisions of the preceding sections, shall be subject to the
same penalties for delinquency and be enforced by the same means as
said
annual ordinary tax; and all said sums together with any of said
penalties
shall, from the dates on which they were assessed, constitute special
liens
upon the land concerned and shall have preference over other liens
there
may be on said lands with the sole exception of the lien for
non-payment
of the ordinary real property tax.
Sec.
55.Special levy by the National Government.
— The Secretary of Finance may, by Department Order issued for the
purpose,
provide for the imposition and collection of a special levy on lands
especially
benefited by public works projects financed by the National government
corresponding to a part not exceeding sixty percent of the costs
thereof
as certified by the Secretary of Public Works, Transportation and
Communications,
the proceeds of which shall accrue to the general fund of the National
Government. The special levy shall be apportioned, computed, and
assessed
according to the assessed valuation of such lands as shown by the books
of the assessor, or its current assessed value as fixed by said officer
if the property does not appear of record in this books. The tax shall
be collected by the local treasurers who shall remit their collections
to the National Treasurer in accordance with the rules and regulations
issued by the Secretary of Finance for the purpose of implementing this
Section..chanrobles virtual law library
The
Special levy herein authorized may within sixty days from the date of
publication
of the Department Order in the Official Gazette be protested with the
Secretary
of Finance and if not reconsidered or rescinded may thereafter be
appealed
to the proper court for decision.
CHAPTER
VI
COLLECTION
OF REAL PROPERTY TAX
Sec.
56. Date of accrual of tax. —
The real property tax for any year shall attach and become due and
payable
on the first day of January and from the same date said tax and all
penalties
subsequently accruing thereto shall constitute a lien upon the property
subject to such tax. Said lien shall be superior to all other liens,
mortgages,
or encumbrances of any kind whatsoever, shall be enforceable against
the
property whether in the possession of the delinquent or any subsequent
owner or possessor, and shall be removable only by the payment of the
delinquent
taxes and penalties.
The
real property tax on properties actually, directly, and exclusively
used
for educational purposes as provided under Presidential Decree No. 261
shall begin to accrue on January 1, 1975.
Sec.
57. Collection of tax to be the
responsibility of treasurers. — The collection of the real property tax
and all penalties accruing thereto, and the enforcement of the remedies
provided for in this Code or any applicable laws, shall be the
responsibility
of the treasurer of the province, city or municipality where the
property
is situated.
Sec.
58. Assessor to furnish treasurer
with assessment roll. — The provincial or city assessor shall prepare
and
submit to the treasurer of the province, city or municipality, on or
before
the thirty-first day of December of each year, an assessment roll
containing
a list of all persons to whom real properties have been newly assessed
or reassessed and the values of such taxable properties.
Sec.
59. Notice of time for collection
of tax. — The provincial or city treasurer shall, on or before the
thirty-first
of January each year, cause notice of the periods during which real
property
tax may be paid without penalty in their respective jurisdiction to be
posted at the main entrance of the provincial building or city hall and
of all municipal buildings and in a public conspicuous place in each
barrio,
and published in a newspaper and announced by crier at least three
times..chanrobles virtual law library
The
form and detail of the notice shall be prescribed by the Secretary of
Finance:
Provided, however, That in lieu of or in addition to such notice, the
Secretary
of Finance may require notification in any province, municipality, or
city
to be accomplished through the mailing of individual tax bills which
shall
estate the exact amount of the annual tax due, the amount of quarterly
installment, its due date, the delinquency, and the applicable penalty.
Sec.
60. Payment of real property
taxes in installments. — Real property taxes may, in the discretion of
the taxpayer, be paid without penalty in four equal installments; the
first
installment to be due and payable on or before March thirty-first; the
second installment, on or before June thirty; the third installment, on
or before September thirty; and the last installment, on or before
December
thirty-first, except the special levies authorized under Sections
forty-seven
and fifty-five of this Code which shall be governed by the local
ordinance
or Department Order issued by the Secretary of Finance, as the case may
be.
Any
person who is in any provincial, city or municipal treasurer's office
on
the last day of any period established for the payment of the real
property
tax without penalty, ready and prepared to pay but is unable to do so
because
of the great number of taxpayers, shall be given a suitable card
entitling
him to pay the tax without penalty on the next business day.
Sec.
61. Tax discount. — If the basic
and additional real property tax levied for the Special Education Fund
or any quarterly installment thereof is paid in full within the
prescribed
period of payment, the taxpayer shall be granted a discount on the tax
due as follows: twenty per cent on the tax due and payable during the
year
1974; fifteen per cent on the tax due and payable during the year 1975;
ten per cent on the tax due and payable during the year 1976; and five
per cent on the tax due and payable during the year 1977; Provided,
further,
That only lands without any delinquency shall be granted the same; and
Provided, finally, That the discounted tax shall not be lower than the
tax corresponding to the next preceding tax year.
Beginning
with the calendar year 1978 and thereafter, the President of the
Philippines
may, at his discretion or upon recommendation of the Secretary of
Finance,
authorize the grant of discounts on taxes due on real property at such
rates and for such periods as he may fix, if he deems that the public
interest
so requires.
Sec.
62. Payment under protest. —
(a) When a taxpayer desires for any reason to pay his tax under
protest,
he shall indicate the amount or portion thereof he is contesting and
such
thereon the words "paid under protest". Verbal protests shall be
confirmed
in writing, with a statement of the ground, therefor, within thirty
days.
The tax may be paid under protest, and in such case it shall be the
duty
of the Provincial, City or Municipal Treasurers to annotate the ground
or grounds therefor on the receipt.
(b) In
case of payments made under protest, the amount or portion of the tax
contested
shall be held in trust by the treasurer and the difference shall be
treated
as revenue.
(c) In
the event that the protest is finally decided in favor of the
government,
the amount or portion of the tax held in trust by the treasurer shall
accrue
to the revenue account, but if the protest shall be decided finally in
favor of the protestant, the amount or portion of the tax protested
against
may either be refunded to the protestant or applied as tax credit to
any
other existing or future tax liability of the said protestant..chanrobles virtual law library
Sec.
63. Repayment of excessive collections.
— When it appears that an assessment of real property was erroneous and
unjust when made and the same is reduced because of such error or
injustice,
and not by reason of damage incurred or deterioration suffered by such
property subsequent to the date of original assessment, the taxpayer
shall
be entitled to the proper refund for taxes and penalties paid by him
for
not more than three years.
Timely
notice shall be given by the Provincial or City Treasurer to every
taxpayer
whose assessment is so reduced and he shall be furnished a certificate
showing the amount of refund to which he is entitled for payment
already
made.
Sec.
64. Restriction upon power of
court to impeach tax. — No court shall entertain any suit assailing the
validity of tax assessed under this Code until the taxpayer shall have
paid, under protest, the tax assessed against him nor shall any court
declare
any tax invalid by reason of irregularities or informalities in the
proceedings
of the officers charged with the assessment or collection of taxes, or
of failure to perform their duties within this time herein specified
for
their performance unless such irregularities, informalities or failure
shall have impaired the substantial rights of the taxpayer; nor shall
any
court declare any portion of the tax assessed under the provisions of
Code
invalid except upon condition that the taxpayer shall pay the just
amount
of the tax, as determined by the court in the pending proceeding.
Sec.
65. Notice of delinquency in
the payment of the real property tax. — Upon the real property tax or
any
installment thereof becoming delinquent, the provincial or city
treasurer
shall immediately cause notice of the fact to be posted at the main
entrance
of the provincial building and of all municipal buildings or municipal
or city hall and in a public and conspicuous place in each barrio of
the
municipality of the province or city as the case may be. The notice of
delinquency shall also be published once a week for three consecutive
weeks,
in a newspaper of general circulation in the province or city, if any
there
be, and announced by a crier at the market place for at least three
market
days..chanrobles virtual law library
Such
notice shall specify the date upon which tax became delinquent, and
shall
state that personal property may be seized to effect payment. It shall
also state that, at any time, before the seizure of personal property,
payment may be made with penalty in accordance with the next following
section, and further, that unless the tax and penalties be paid before
the expiration of the year for which the tax is due, or the tax shall
have
been judicially set aside, the entire delinquent real property will be
sold at public auction, and that thereafter the full title to the
property
will be and remain with the purchaser, subject only to the right of
delinquent
taxpayer or any other person in his behalf to redeem the sold property
within one year from the date of sale.
Sec.
66. Penalty for delinquency.
— Failure to pay the real property tax before the expiration of the
period
for the payment without penalty of the quarterly installments thereof
shall
subject the taxpayer to the payment of a penalty of two per centum on
the
amount of the delinquent tax for each month of delinquency or fraction
thereof, until the delinquent tax shall be fully paid: Provided, That
in
no case shall the total penalty exceed twenty-four per centum of the
delinquent
tax. The rate of penalty for tax delinquency fixed herein shall be
uniformly
applied in all provinces and cities.
Sec.
67. Remedies cumulative, simultaneous
and unconditional. — Collection of the real property tax may be
enforced
through any or all of the remedies provided under this Code, and the
use
or non-use of one remedy shall not be a bar against the institution of
the others. Formal demand for the payment of the delinquent taxes and
penalties
due need not be made before any of such remedies may be resorted to;
notice
of delinquency as required in Section sixty-five hereof shall be
sufficient
for the purpose.
Sec.
68. Distraint of personal property
for delinquency. — After delinquency in the payment of such tax may be
enforced by distraining the personal property including the crops
growing
on land of the delinquent taxpayer. In such case, the provincial or
city
treasurer or his deputy shall issue a duly authenticated certificate,
based
upon the records of his office, showing the fact of the delinquency and
the amount of tax and penalty due, and this shall be sufficient warrant
for the seizure of any non-exempt personal property belonging to the
delinquent
taxpayer in question. Such process may be executed by the provincial or
city treasurer, his deputy, or any officer authorized to execute legal
process.
Sec.
69. Personal property exempt
from distraint or levy. — The following property shall be exempt from
distraint
and the levy of attachment or execution for delinquency in the payment
of the real property tax:chanroblesvirtuallawlibrary
(a) Tools
and the implements necessarily used by the delinquent taxpayer in his
trade
or employment.
(b) One
horse, cow, carabao, or other beast of burden, such as the delinquent
taxpayer
may select, and necessarily used by him in his ordinary occupation..chanrobles virtual law library
(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 taxpayers, such as he may select, of a value not
exceeding
three thousand pesos.
(e) Provisions,
including crops, actually provided for individual or family use
sufficient
for four months.
(f) The
professional libraries of lawyers, judges, clergymen, doctors, school
teachers,
and music teachers, not exceeding five thousand pesos in value.
(g) One
fishing boat and net, not exceeding the total value of five thousand
pesos,
the property of any fisherman, by the lawful use of which he earn a
livelihood.
(h) Any
material or article forming part of a house or improvement of any real
property.
Sec.
70. Sale of distrained personal
property. — Property seized upon process under Section sixty-eight
hereof
shall, after due advertisement, be exposed for sale at public auction
to
the bidder, and so much of the property shall be thus sold as may be
necessary
to satisfy the tax, penalty, and cost of the seizure and sale. The
purchaser
at such sale shall acquire an indefeasible title to the property.
Advertisement
in such cases shall be given by notice stating the name of the owner of
the property to be sold, date, time, place and cause of the sale,
posted
for twenty days before the date of the auction at the main entrance of
the city or municipal hall, or municipal building, and at a public and
conspicuous place in the barrio or street where the property was
seized,
and announced by crier at the market place at least three market days
before
the auction sale.
The
sale shall take place, in the discretion of the provincial or city
treasurer
or his deputy, either at the main entrance of the municipal building or
city or municipal hall or at the place where the property was seized.
If
no satisfactory bid or no bid at all is received in the place
mentioned,
the distrained property may be sold anywhere in the province or city at
public auction, after the advertisement and due notice to the owner of
the property.
Sec.
71. Redemption of distrained
property. — The owner of personal property seized for non-payment of
taxes
may redeem the same property from the collecting officer at any time
after
seizure and before sale by tendering to him the amount of tax, penalty
and costs incurred up to the time of tender. The costs to be charged in
making such seizure and sale shall only embrace the actual expenses of
seizure and preservation of the property pending the same, but no
charges
shall be imposed for the services of the collecting officer or his
deputy.
Sec.
72. Return of officer and disposition
of proceeds. — The officer conducting a sale under Section seventy
hereof
shall make immediate return of his proceedings and a memorandum thereof
shall be entered by the provincial or city treasurer in his records.
The
excess, if any, of the proceeds of the sale of the distrained personal
property over the tax, penalty and costs of sale and seizure and any of
the property remaining unsold in the hands of the officer, shall be
returned
to the taxpayer.
Sec.
73. Advertisement of sale of
real property at public auction. — After the expiration of the year for
which the tax is due, the provincial or city treasurer shall advertise
the sale at public auction of the entire delinquent real property,
except
real property mentioned in subsection (a) of Section forty hereof, to
satisfy
all the taxes and penalties due and the costs of sale. Such
advertisement
shall be made by posting a notice for three consecutive weeks at the
main
entrance of the provincial building and of all municipal buildings in
the
province, or at the main entrance of the city or municipal hall in the
case of cities, and in a public and conspicuous place in barrio or
district
wherein the property is situated, in English, Spanish and the local
dialect
commonly used, and by announcement at least three market days at the
market
by crier, and, in the discretion of the provincial or city treasurer,
by
publication once a week for three consecutive weeks in a newspaper of
general
circulation published in the province or city..chanrobles virtual law library
The
notice, publication, and announcement by crier shall state the amount
of
the taxes, penalties and costs of sale; the date, hour, and place of
sale,
the name of the taxpayer against whom the tax was assessed; and the
kind
or nature of property and, if land, its approximate areas, lot number,
and location stating the street and block number, district or barrio,
municipality
and the province or city where the property to be sold is situated.
Copy
of the notice shall forthwith be sent either by registered mail or by
messenger,
or through the barrio captain, to the delinquent taxpayer, at his
address
as shown in the tax rolls or property tax record cards of the
municipality
or city where the property is located, or at his residence, if known to
said treasurer or barrio captain: Provided, however, That a return of
the
proof of service under oath shall be filed by the person making the
service
with the provincial or city treasurer concerned..chanrobles virtual law library
Sec.
74. Stay of sale of real property.
— At any time during or before the sale the taxpayers may stay all
proceedings
by paying the taxes and penalties due on the real property up to the
time
of tender and costs to the provincial or city treasurer or his deputy
conducting
the sale.
Sec.
75. Discretion of provincial
or city treasure to buy real property in behalf of province or city. —
In case there is no bidder at the public auction of the delinquent real
property, or if the highest bid is for an amount not sufficient to pay
the taxes, penalties or costs of sale, the provincial or city treasurer
may, in his discretion, buy the delinquent real property in the name of
the province or the city for the amount of taxes, penalties due
thereon,
and the costs of sale.
Sec.
76. Certificate of sale to be
issued purchaser, province or city. — The purchaser at public auction
of
delinquent property shall receive from the provincial or city
treasurer,
or his deputy, a certificate setting forth the proceedings had at the
sale,
a description of the property sold, the name of the purchaser, the sale
price, as well as the exact amount of the taxes and penalties due and
the
costs of sale. The person in whose name the property is listed and
assessed
shall be furnished with a copy of the sale certificate.
Sec.
77. Report of sale to provincial
or municipal board or city council. — The provincial or city treasurer
on his deputy shall make a report to the provincial or municipal board
or city council of the sale within thirty days thereafter, and shall
make
the same appear in his records. .chanrobles virtual law library
Sec.
78. Redemption of real property
after sale. — Within the term of one year from the date of the
registration
of sale of the property, the delinquent taxpayer or his representative,
or in his absence, any person holding a lien or claim over the
property,
shall have the right to redeem the same by paying the provincial or
city
treasurer or his deputy the total amount of taxes and penalties due up
to the date of redemption, the costs of sale and the interest at the
rate
of twenty per centum on the purchase price, and such payment shall
invalidate
the sale certificate issued to the purchaser and shall entitle the
person
making the same to a certificate from the provincial or city treasurer
or his deputy, stating that he had redeemed the property..chanrobles virtual law library
The
provincial or city treasurer or his deputy shall, upon surrender by the
purchaser of the certificate of sale previously issued to him,
forthwith
return to the latter the entire purchase price paid by him plus the
interest
at twenty per centum per annum herein provided for, the portion of the
cost of the sale and other legitimate expenses incurred by him, and
said
property shall thereafter be free from the lien of said taxes and
penalties.
Sec.
79. Possession and usufruct of
real property within one year from due date of sale. — After the sale
and
before redemption, or before the expiration of the term of one year
fixed
in Section seventy-eight hereof for such redemption, the real property
shall remain in the possession of the delinquent tax payer, who shall
have
the right to the usufruct thereof.
Sec.
80. Issuance of final bill of
sale. — In case the delinquent taxpayer or his representative, or any
person
holding a lien or claim over the property, fails to redeem the same
within
the period of one year from the date of sale as provided in Section
seventy-eight
hereof, the provincial or city treasurer shall make an instrument
sufficient
in form and effect to convey to the purchaser the property purchased by
him, free from any encumbrance or third party claim whatsoever, and the
said instrument shall succinctly set forth all proceedings upon which
the
validity of the sale depends. Any balance of the proceeds of the sale
left
after deducting the amount of the taxes and penalties due and the costs
of sale, shall be returned to the owner or his representative.
Sec.
81. Disposition of real property
acquired by province or city. — The provincial or city treasurer shall
have charge of the delinquent real property acquired by the province or
city under the provisions of Section seventy-five during which time the
delinquent taxpayer shall have possession and usufruct of such property
in accordance with Section seventy-nine hereof. Said treasurer shall
take
steps within one year from the date of issuance of final bill of sale
to
dispose of the delinquent real property at public auction; but at any
time
before the auction sale, any person in his own right may repurchase
such
property by paying the total amount of the taxes and penalties due up
to
the time of repurchase, the costs of sale, and other legitimate
expenses
incurred by the province or city with respect to the property, and an
additional
penalty of twenty per cent on the purchase price: Provided, however,
That
the right of the delinquent taxpayer or his representative or any
person
holding lien or claim over the property to further redeem said property
within one year from the date of acquisition by the province or city,
in
the manner provided in Section seventy- eight hereof; and, Provided,
further
That if the treasurer has entered into a contract for the lease of the
property in the meantime, any repurchase made hereunder shall be
subject
to such contract.
Sec.
82. Collection of real property
tax through the courts. — The delinquent real property tax shall
constitute
a lawful indebtedness of the taxpayer to the province or city and
collection
of the tax may be enforced by civil action in any court of competent
jurisdiction.
The civil action shall be filed by the Provincial or City fiscal within
fifteen days after receipt of the statement of delinquency certified to
by the provincial or city treasurer. This remedy shall be in addition
to
all other remedies provided by law.
Sec.
83. Suits assailing validity
of tax sale. — No court shall entertain any suit assailing the validity
of a tax sale of real estate under this Chapter until the taxpayer
shall
have paid into court the amount for which the real property was sold,
together
with interests of twenty per centum per annum upon that sum from the
date
of sale to the time of instituting suit. The money so paid into court
shall
belong to the purchaser at the tax sale if the deed is declared
invalid,
but shall be returned to the depositor if the action fails.
Neither
shall any court declare a sale invalid by reason of irregularities or
informalities
in the proceedings committed by the officer charged with the duty of
making
sale, or by reason of failure by him to perform his duties within the
time
herein specified for their performance, unless it shall have been
proven
that such irregularities, informalities or failure have impaired the
substantial
rights of the taxpayer.
Sec.
84. Payment of delinquent taxes
on property subject of controversy. — In any suit involving the
ownership
or possession of, or succession to, real property, the court shall, on
its own motion or upon representation of the provincial, city or
municipal
treasurer or his deputy, condition the award of such ownership,
possession
or succession to any party to the controversy upon the payment to the
court
of the taxes and penalties due on the property and all the costs that
may
have accrued to the treasurer by reason of his representation.
Sec.
85. Treasurer to certify delinquencies
Remaining uncollected.— The provincial, city or municipal treasurer
shall
prepare a certified list of all real property tax delinquencies
remaining
uncollected or unsatisfied for at least one year in his jurisdiction,
and
a statement of the reason or reasons for such non-collection or
non-satisfaction,
and shall submit the same to the Secretary of Finance on or before
December
thirty-first of the year immediately succeeding that in which the
delinquencies
have occurred with a request for assistance in the enforcement of the
remedies
for collection provided hereunder..chanrobles virtual law library
CHAPTER
VII
DISPOSITION
OF PROCEEDS
Sec.
86. Distribution of proceeds.
— (a) The proceeds of the real property tax, except as otherwise
provided
in this Code, shall accrue to the province, city or municipality where
the property subject to the tax is situated and shall be applied by the
respective local government unit for its own use and benefit.
(b) Barrio
shares in real property tax collection. — The annual shares of the
barrios
in real property tax collection shall be as follows:chanroblesvirtuallawlibrary
(1) Five
percent of the real property tax collection of the province and another
five per cent of the collections of the municipality shall accrue to
the
barrio where the property is situated.
(2) In
the case of the city, ten per cent of the collections of the tax shall
likewise accrue to the barrio where the property is situated.
Thirty
per cent of the barrio shares herein referred to may be spent for
salaries
or per diems of the barrio officials and other administrative expenses,
while the remaining seventy per cent shall be utilized for development
projects approved by the Secretary of Local Government and Community
Development
or by such committee created, or representatives designated, by him.
Sec.
87. Application of proceeds.
— (a) The proceeds of the real property tax pertaining to the city and
to the municipality shall accrue entirely to their respective general
funds.
In the case of the province, one-fourth thereof shall accrue to its
road
and bridge fund and the remaining three-fourths, to its general fund.
(b) The
entire proceeds of the additional one per cent real property tax levied
for the Special Education Fund created under R.A. No. 5447 collected in
the province or city on real property situated in their respective
territorial
jurisdictions shall be distributed as follows:chanroblesvirtuallawlibrary
(1) Collections
in the provinces: Fifty per cent shall accrue to the municipality where
the property subject to the tax is situated; twenty per cent shall be
remitted
to the province; and thirty per cent shall be remitted to the Treasurer
of the Philippines to be expended exclusively for stabilizing the
Special
Education Fund in municipalities, cities and provinces in accordance
with
the provisions of Section seven of R.A. No. 5447.
(2) Collections
in the cities: Sixty per cent shall be retained by the city; and forty
per cent shall be remitted to the Treasure of the Philippines to be
expended
exclusively for stabilizing the Special Education Fund in
municipalities,
cities and provinces as provided under Section 7 of R.A. No. 5447..chanrobles virtual law library
However,
any increase in the shares of provinces, cities and municipalities from
said additional tax accruing to their respective local school boards
commencing
with fiscal year 1973-74 over what has been actually realized during
the
fiscal year 1971-72 which, for purposes of this Code, shall remain as
the
base year, shall be divided equally between the general fund and the
special
education fund of the local government units concerned. The Secretary
of
Finance may, however, at his discretion, increase to not more than
seventy-five
per cent the amount that shall accrue annually to the local general
fund.
(c) The
proceeds of all delinquent taxes and penalties, as well as the income
realized
from the use, lease or other disposition of the real property acquired
by the province or city at a public auction in accordance with the
provisions
of this Code, and the proceeds of the sale of the delinquent real
property
or of the redemption thereof, shall accrue to the province, city or
municipality
in the same manner and proportions as if the tax or taxes had been paid
in regular course.
(d) The
proceeds of the additional real property tax on idle private lands
shall
accrue to the respective general funds of the province, city and
municipality
where the land subject to the tax is situated.
CHAPTER
VIII
ORGANIZATION,
FUNCTIONS AND SUPERVISION
Sec.
88. Provincial or city assessor,
his assistant and deputies and their appointments. — There shall be a
distinct
and separate assessment office in every province or city under the
charge
of a provincial or city assessor, who shall be appointed by the
President
of the Philippines in the manner prescribed by law. The position of
provincial
or city assessor shall belong to the competitive service and its salary
shall be as fixed by law..chanrobles virtual law library
There
shall be an Assistant Provincial or City Assessor in each assessment
office,
who shall be appointed by the provincial or city assessor in conformity
with the provisions of the Civil Service Law, subject to the approval
of
the Secretary of Finance. The salaries of the Assistant Provincial or
City
Assessor shall likewise be as fixed by law.
Upon
the approval of this Code no person shall be appointed to the position
of provincial or city assessor, or the position of assistant provincial
or city assessor, unless he possesses a degree in law, civil or
mechanical
engineering, commerce, or any other related college course, has
qualified
in an appropriate Civil Service examination, and has acquired at least
five years experience in real property assessment work. For every year
lacking in educational attainment, a two-year experience in assessment
work in addition to the foregoing five-year requirement may be
substituted:
Provided, That he shall have completed at least two years of any of the
college courses aforementioned.
Upon
the effectivity of this Code, vacant positions of provincial and city
assessors
and of assistant provincial and city assessors shall be filled in
accordance
with the provisions of this Section.
The
other employees in the Assessment office, whose number and salaries
shall
be fixed by the Provincial Board or Municipal Board or City Council,
shall
be appointed by the Provincial Governor or City Mayor upon
recommendation
of the provincial or city assessor, in conformity with the provisions
of
the Civil Service Law: Provided, That there shall be in each provincial
or city assessment office at least three deputy assessors to perform
full-time
field assessment work. Any person with at least two years college
education
and two years experience in assessment work and who possesses an
appropriate
civil service eligibility shall be deemed qualified for appointment as
a deputy assessor.
The
oath of office of provincial or city assessors and assistant provincial
or city assessors shall contain a statement to the effect that the
affiant
shall appraise real property subject to assessment at its current
market
value in accordance with this Code.
Sec.
89. Powers and duties of provincial
or city assessor. — The provincial or city assessor shall:chanroblesvirtuallawlibrary
(a) Establish
a systematic method of assessment in the manner prescribed herein and
in
accordance with rules and regulations issued by the Secretary of
Finance..chanrobles virtual law library
(b) Install
and maintain a real property identification and accounting system
conforming
to the standards prescribed by the Secretary of Finance.
(c) Prepare,
install and maintain a system of tax mapping showing graphically all
property
subject to assessment in his province or city and gather all necessary
data concerning the same.
(d) Make
frequent physical surveys to check and determine whether all real
property
within the locality are properly listed in the assessment rolls.
(e) Appraise
all items of real property at current market value in accordance with
this
Code and conduct regular ocular inspection trips to determine if all
properties
are assessed correctly.
(f) Keep
a record of all transfers, leases and mortgages of real property,
rentals,
insurance, and cost of construction of buildings and other improvements
on land, and land income for assessment purposes.
(g) Apply
uniformly the assessment levels fixed in Section twenty hereof to the
current
market value of all property subject to assessment.
(h) Cancel
all of the assessments, in case several assessments are made for the
same
property, except the one property make, but if any assessee or his
representative
shall object to the cancellation of the assessment made in his name,
such
assessment shall not be cancelled but the fact shall be noted on the
tax
declaration and assessment rolls and other property books of record.
Preference,
however, shall be given to the assessment of the person who has the
best
title to the property, or in default thereof, of the person who has
possession
of the property.
(i) Eliminate
from the assessment of taxable property such properties which have been
destroyed or which, being exempt, have been improperly included in the
same; decrease the assessment where the property previously assessed
has
suffered a permanent loss of value by reason of storm, flood, fire, or
other calamity; and increase the assessment where improvement have been
made upon the property subsequent to the last assessment..chanrobles virtual law library
(j) Attend
personally or thru his duly authorized representative all sessions of
the
Local Board of Assessment Appeals and present any information or record
in his possession as may be required by the Board in determining the
correct
assessment of the real property under appeal.
(k) Issue
certificates pertaining to or certified copies of the assessment
records
of real property and all other records relative to its assessment, upon
payment of a service charge or fee fixed therefor by the local board or
council.
(l) Perform
such other acts as may be required of provincial or city assessor under
this Code or other related laws.
Sec.
90. The Municipal Deputy Assessor.
— There is hereby created in every municipality the position of
municipal
deputy assessor, who shall be appointed by the provincial assessor with
the approval of the Secretary of Finance. The salary of the municipal
deputy
assessor shall be equal to the basic salary authorized by law for the
municipal
treasurer of the same municipality, one-third of the annual rate to be
paid from the provincial general fund and two-thirds, from the
municipal
general fund. Within one year from the date of approval of this Code,
the
position of Municipal Deputy Assessor shall be created and provided for
in the corresponding provincial and municipal budgets and filed in
accordance
with the provisions of this Section..chanrobles virtual law library
Any
person with a bachelor's degree in law, civil or mechanical
engineering,
commerce or business administration, or any other related collegiate
course
and who possesses an appropriate civil service eligibility shall be
deemed
qualified for appointment as municipal deputy assessor. A two-year
experience
in assessment work may be substituted for every year lacking in the
educational
requirement: Provided, however, That the appointee shall have completed
at least two years of any of the college courses abovementioned.
The
Municipal Deputy Assessor shall perform all the duties and functions
related
to the appraisal and assessment for taxation purposes of real property
situated within the municipality under the direct and immediate
supervision
of the provincial assessor.
In
the municipalities belonging to the fourth class category or lower, the
municipal treasurer may be appointed ex-officio deputy assessor by the
provincial assessor upon recommendation of the provincial treasurer:
Provided,
however, That such municipal treasurer possesses the minimum
qualification
requirements prescribed herein; Provided, further, That no ex-officio
appointment
shall extend beyond twelve months from the date of issue unless renewed
by the appointing authority; and Provided, finally, That the
appointment
of a regular municipal treasurer as ex-officio deputy assessor shall
cease
and be considered terminated upon the appointment of a regular
municipal
deputy assessor as herein provided.
A
municipal treasurer appointed as ex-officio deputy assessor shall
receive
additional compensation equivalent to not more than twenty per cent of
his basic salary payable by the municipality. In no case however shall
his basic salary plus such additional compensation exceed the basic
salary
authorized for a municipal treasurer of the next higher class of
municipality.
Municipal
treasurers who at the time of approval of this Code are already
appointed
as ex-officio deputy assessors shall continue in such capacity until
the
appointment of a regular municipal deputy assessor in accordance with
this
Code..chanrobles virtual law library
Sec.
91. Supervision over local assessment
offices. — The Secretary of Finance shall exercise direct executive
supervision
over local assessment affairs and the assessment offices of provincial,
city and municipal governments and, for this purpose, there is hereby
created
a division in the Department of Finance which shall discharge all
powers,
duties and functions that may be deemed necessary in, or are pertinent
to, the administration of the real property tax and the implementation
of the provisions of this Code.
The
head of this division shall in no case receive compensation and/or
emoluments
lower than those authorized for the regular division chiefs of the
Department.
Sufficient funds for the operation and maintenance of said division
shall
be included in the annual appropriations of the Department.
CHAPTER
IX
SPECIAL
PROVISIONS
Sec.
92. Basis for payment of just
compensation in expropriation proceedings. — In determining just
compensation
when private property is acquired by the government for public use, the
basis shall be the market value declared by the owner or administrator
or anyone having legal interest in the property, or such market value
as
determined by the assessor, whichever is lower.
Sec.
93. Educational institutions
exempt from the real property tax. — Non-stock or non-profit
educational
institutions owning real property, the total assessed value of which
does
not exceed thirty thousand pesos, as well as Education Foundations
organized
under Republic Act No. 6055, shall be exempt from the payment of realty
taxes provided for under this Code.
Sec.
94. Assessment revolving fund.
— The sum of ten million pesos is hereby appropriated out of any funds
in the National treasury not otherwise appropriated to constitute a
special
fund to be known as the Assessment Revolving Fund to finance the
periodic
general revision of real property assessments in provinces and cities.
Such fund shall be administered by the Secretary of Finance and shall
be
loaned without interest to provinces and cities under such terms and
conditions
as he may impose.
Sec.
95. General assessment revision,
expenses incident thereto. — Provincial, city and municipal boards or
councils
shall provide the necessary appropriations to underwrite or defray
expenses
incident to general revision of real property assessments, using for
the
purpose any unappropriated balances in the general, road and bridge
and/or
permanent public improvement funds, or any underestimated revenues
accruing
thereto, or reversions of authorized appropriations in their respective
budgets which are not otherwise urgently needed, any provision of
existing
laws to the contrary notwithstanding..chanrobles virtual law library
All
expenses incident to a general revision of property assessments shall
be
divided equally between the province and the municipality.
CHAPTER
X
MISCELLANEOUS
PROVISIONS
Sec.
96. Remission of tax by provincial
or city board or council. — In case of a general failure of crops or
great
decrease in the price of products, or similar widespread disaster in
any
city or municipality or municipalities of a province, the provincial of
city board or council of the same, by resolution passed prior to the
first
day of January of any year may remit, wholly or partially, the real
property
tax or the penalties thereon for the succeeding year in the city or
municipality
or municipalities effected by the disaster, but a resolution so
disposing
must clearly state the reason or reasons for such remission and shall
not
take effect until approved by the Secretary of Finance.
Sec.
97. Remission or reduction of
tax by the President of the Philippines. — The President of the
Philippines,
may, in his discretion, remit or reduce the real property tax for any
year
in my city, municipality or province if he deems that public interest
so
requires.
Sec.
98. Duty of offers to assist
the provincial or city assessor. — It shall be the duty of every
officer
and employee of the provincial, city and municipal governments to
render
all necessary assistance to the provincial or city assessor. It shall
likewise
be the duty of registers of deeds and notaries public to furnish the
provincial
or city assessors with copies of all contracts conveying, leasing, or
mortgaging
real property received by, or acknowledged before, them..chanrobles virtual law library
Sec.
99. Insurance companies to furnish
information. — Insurance companies, whenever requested, shall furnish
in
each particular case to the provincial or city assessor copies of any
contract
or policy insurance on buildings, structures and improvements insured
by
them which may be necessary for the proper assessment thereof.
Sec.
100. Fees in court actions. —
All court actions, criminal or civil, instituted at the instance of the
provincial or city treasurer or assessor under the provisions of this
Code,
shall be exempt from the payment of court and sheriff's fees.
Sec.
101. Fees in registration of
papers or documents on sale of delinquent real property to province or
city. — All certificates, documents, or papers covering the sale of
delinquent
property to the province or city, if registered in the Registry of
Property,
shall be exempt from registration fees.
Sec.
102. Promulgation of rules by
the Secretary of Finance. — The Secretary of Finance shall promulgate
the
rules and regulations and prescribe the forms to be used and the
procedures
to be followed in carrying out properly and effectively the provisions
of this Code.
Sec.
103. Real property assessment
notices or owner's copies of the tax declarations to be exempt from
postal
charges or fees. — All real property assessment notices or owner's
copies
of tax declarations sent thru the mails by the assessor shall be exempt
from the payment of postal charges or fees..chanrobles virtual law library
CHAPTER
XI
PENAL
PROVISIONS
Sec.
104. Failure to file declaration
and other prohibited acts. — Any person required under the provisions
of
this Code to declare real property whether taxable or exempt; who shall
intentionally fail to file such declaration under the terms and
conditions
prescribed therefor, shall upon conviction be punished by a fine of not
more than one thousand pesos or by imprisonment of not more than one
year
or both at the discretion of the court.
The
same penalty shall be imposed upon any person who shall intentionally
file
a false declaration, or shall otherwise conceal, remove or misrepresent
the ownership, control, or tax liability of real property subject to a
declaration.
If
any of the acts abovementioned is committed in relation to property not
exempt from taxation, the person convicted thereof shall, moreover,
forfeit
his right to appeal the assessment of such property..chanrobles virtual law library
Sec.
105. Acts committed in behalf
of corporations. — An individual who shall commit any of the violations
penalized in the preceding section acting under the authority and in
behalf
of a corporation, partnership or association shall be punished by the
fine
and/or imprisonment therein provided, and the other liabilities and
shall
attach to the corporation, partnership or association to whom the real
property is required to be listed for purposes of taxation or
exemption.
The corporation, partnership or association, shall in addition, pay a
fine
of not less than two thousand pesos nor more than five thousand pesos
at
the discretion of the court.
Sec.
106. Omission of property from
assessment or tax rolls by officers and other acts. — Any officer
charged
with the duty of assessing real property, who shall willfully fail to
assess,
or shall intentionally omit from the assessment or tax roll, any real
property
which he knows to be lawfully taxable or shall willfully or through
gross
negligence underassess any real property or shall intentionally violate
or fail to perform any duty imposed upon him by law relating to the
assessment
of taxable and real property, shall upon conviction be punished by a
fine
or not more than one thousand pesos or my imprisonment of not more than
one year, or both, at the discretion of the court.
The
same penalty shall be imposed upon any officer charged with the duty of
collecting the tax due on real property who shall willfully fail to
collect
the tax and institute the necessary proceedings for the collection of
the
same..chanrobles virtual law library
Any
other officer required by this code to perform acts relating to the
administration
of the real property tax, or to assist the assessor or treasurer in
such
administration, who shall willfully fail to discharge such duties,
shall
upon conviction, be punished by a fine or not exceeding five hundred
pesos
or by imprisonment of not more than six months, or both, at the
discretion
of the court.
Sec.
107. Government agents delaying
assessment of real property and assessment appeals. — Any government
official
who shall intentionally and deliberately delay the assessment of real
property,
or the filing of any appeal against its assessment, if such is patently
indicated, shall, upon conviction, be punished by a fine of not more
than
five hundred pesos or by imprisonment of not more than one year, or
both,
at the discretion of the court.
Sec.
108. Violation of other provisions
of this Code or of rules and regulations in general. — Any person who
shall
violate any provision of this Code or any rule or regulations of the
Department
of Finance made in conformity thereto, for which violation no specific
penalty is provided by law, shall be punished by a fine of not more
than
three hundred pesos, or by imprisonment of not more than six months, or
both, at the discretion of the court. In the case of a corporation,
partnership,
or association, the penalty shall be fine of not less than two thousand
pesos nor more than five thousand pesos at the discretion of the court.
CHAPTER
XII
TRANSITORY
PROVISIONS
Sec.
109. Sale and forfeiture before
effectivity of Code. — All sales and forfeitures of delinquent real
properties
and tax delinquencies existing before the effective date of this Code
shall
be governed by the provisions of laws then in force.
.chanrobles virtual law library Sec.
110. Turn over of pending assessment
cases, records, supplies and equipment of the Board of Assessment
Appeals.
— All assessment cases pending before the Board of Assessment Appeals
created
under Commonwealth Act No. 470 and the charters of all cities including
all their records, supplies and equipment shall be turned over by its
outgoing
Chairman to the local Board of Assessment Appeals in their respective
localities
created under Presidential Decree No. 76. Such cases shall be decided
pursuant
to and in accordance with the provisions of this Code.
.chanrobles virtual law library
Sec.
111. Repealing Clause. — Commonwealth
Act Numbered Four Hundred Seventy, as amended; the pertinent provisions
of the charters of all cities; Section two thousand ninety-two of the
Revised
Administrative Code; and all acts, laws or decrees or parts of acts,
laws
or decrees inconsistent with the provisions of this Code are hereby
repealed
or modified accordingly.
Sec.
112. Effectivity of Code. — This
Code shall take effect on June 1, 1974..chanrobles virtual law library
Done
in the City of Manila, this 20th day of May, in the year of Our Lord
Nineteen
Hundred and Seventy-four..chanrobles virtual law library Back
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