WHEREAS,
this country cannot progress steadily if its local governments are not
potent political subdivisions contributing their proportionate shares
to national progress;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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:cralaw:red
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.
Section 2. Fundamental Principles. — The appraisal
and assessment of real property for taxation purposes shall be guided
by the following fundamental principles:cralaw:red
1) Real property shall be appraised at its current
and fair market value;chanroblesvirtualawlibrary
2) The appraisal of real property shall be uniform in
each local political subdivision;chanroblesvirtualawlibrary
3) Real property shall be classified for assessment
purposes on the basis of its actual use;chanroblesvirtualawlibrary
4) Real property shall be assessed on the basis of a
uniform standard of value within each local political subdivision;chanroblesvirtualawlibrary
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. chanroblesvirtualawlibrary
Section 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.
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. chanroblesvirtualawlibrary
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.
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." chanroblesvirtualawlibrary
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.
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.
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.
Section 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 it shall:cralaw:red
a) Evolve a comprehensive system of real property
appraisal that will ensure fair and realistic property valuations for
taxation purposes;chanroblesvirtualawlibrary
b) Establish uniform assessment methods and
procedures that will equalize property values in each local political
subdivision:cralaw:red
c) Ensure that the ad valorem tax on real property
shall be just, uniform and equitable;chanroblesvirtualawlibrary
d) Adopt the necessary measures that will promote
maximum tax collection efficiency at the local levels;chanroblesvirtualawlibrary
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
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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:cralaw:red
(a) Metallic mineral lands, which shall include:cralaw:red
(1) Patented lode mining claims, producing or
non-producing;chanroblesvirtualawlibrary
(2) Unpatented producing lode mining claims which may
be patented;chanroblesvirtualawlibrary
(3) Unpatented non-producing the lode mining claims
which may be patented;chanroblesvirtualawlibrary
(4) Patented placer mining claims, producing or
non-producing;chanroblesvirtualawlibrary
(5) Unpatented producing placer mining claims which
may be patented; and
(6) Unpatented non-producing placer mining claims
which may be patented.
(b) Non-metallic mineral lands, which shall include:cralaw:red
(1) Patented, producing or non-producing;chanroblesvirtualawlibrary
(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.
"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.
Section 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.
Section 20. Assessment Levels. — The assessment
levels to be applied to the current market values of real property for
taxation purposes shall be as follows:cralaw:red
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.
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.
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:cralaw:red
Assessment level Market Value
15%
P30,000.00
or less
20% More than
30,000.00 but less
than P50,000.00
25% "
"
50,000.00 "
"
" 75,000.00
35% "
" "
75,000.00 "
"
" 100,000.00
45% "
" "
100,000.00 "
"
" 150,000.00
55% "
" "
150,000.00 "
"
" 250,000.00
65% "
" "
250,000.00 "
"
" 350,000.00
75% "
" "
350,000.00 "
"
" 500,000.00
80% "
" "
500,000.00 chanroblesvirtualawlibrary
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.
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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
CHAPTER III
ASSESSMENT APPEALS
Section 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.
Section 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:cralaw:red
"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"
Section 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.
Section 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.
Section 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.
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.
Section 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:cralaw:red
Position Annual Salary
1. One Central Board Chief
Hearing Commissioner P17,400.00
2. Four Central Board Hearing
Commissioners P16,200.00 each
3. One Central Board Secretary
P9,600.00
4. Four Central Board Stenographers
P6,600.00 each
5. Three Central Board Docket and
Filing Clerks P4,800.00
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. chanroblesvirtualawlibrary
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.
Section 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.
Section 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
Section 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.
Section 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:cralaw:red
(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.
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.
Section 40. Exemptions from Real Property Tax. — The
exemption shall be as follows:cralaw:red
(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
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 43. Idle lands, coverage. — For purposes of
this Code, idle lands shall include the following:cralaw:red
(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:cralaw:red
(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.
Section 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:cralaw:red
(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.
(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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
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
Section 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.
Section 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.
Section 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.
Section 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.
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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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.
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.
Section 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.
Section 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.
Section 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.
Section 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:cralaw:red
(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.
(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. chanroblesvirtualawlibrary
(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.
Section 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.
Section 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.
Section 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.
Section 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.
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.
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 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.
Section 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.
Section 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.
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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
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.
Section 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.
Section 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.
CHAPTER VII
DISPOSITION OF PROCEEDS
Section 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:cralaw:red
(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. chanroblesvirtualawlibrary
Section 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:cralaw:red
(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.
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. chanroblesvirtualawlibrary
CHAPTER VIII
ORGANIZATION, FUNCTIONS AND SUPERVISION
Section 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.
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.
Section 89. Powers and duties of provincial or city
assessor. — The provincial or city assessor shall:cralaw:red
(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.
(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. chanroblesvirtualawlibrary
(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.
(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.
Section 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. chanroblesvirtualawlibrary
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.
Section 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
Section 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.
Section 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.
Section 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.
Section 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.
All expenses incident to a general revision of property assessments
shall be divided equally between the province and the municipality.
CHAPTER X
MISCELLANEOUS PROVISIONS
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
CHAPTER XI
PENAL PROVISIONS
Section 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. chanroblesvirtualawlibrary
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.
Section 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.
Section 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 wilfully 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 wilfully 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 wilfully fail
to collect the tax and institute the necessary proceedings for the
collection of the same.
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 wilfully 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.
Section 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.
Section 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
Section 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. chanroblesvirtualawlibrary
Section 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. chanroblesvirtualawlibrary
Section 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.
Section 112. Effectivity of Code. — This Code shall
take effect on June 1, 1974.
Done in the City of Manila,
this 20th day of May, in the year of Our Lord Nineteen Hundred and
Seventy-four.
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