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PRESIDENTIAL DECREE NO. 76
PRESIDENTIAL DECREE NO. 76 -
REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING OR ADMINISTERING
REAL PROPERTY, INCLUDING THE IMPROVEMENTS THEREON, TO FILE SWORN
STATEMENT OF THE TRUE VALUE OF SUCH PROPERTY
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I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution
as Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, as amended, and knowing
—chanroblesvirtualawlibrary
THAT, values of real property and improvements therein are usually
under declared obviously for the purpose of evading payment of higher
and correct taxes due the government;chanroblesvirtualawlibrary
THAT, although real property and the improvements therein are
undervalued for purposes of taxation, these real property are sold to
the government when needed for public purposes, such as the
construction of roads and other infrastructures, at their market value
which are usually ten (10) to twenty (20) times more than the value
declared by the owners for purposes of taxation; chanroblesvirtualawlibrary
and —
in order to effect the desired changes and reforms, in the social,
economic and political structure of the country, which is the main
objective of the New Society;
hereby decree and order that:cralaw:red
1. It shall be the duty of all persons, natural or
juridical, owning or administering real property, including the
improvements therein, within a city, municipality or municipal
district, or their duly authorized representative, to prepare, or cause
to be prepared, and file with the provincial or city assessor not later
than June 30, 1973, 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.
The "current and fair market value" shall be understood to mean the
"price at which a willing seller would sell and a willing buyer would
buy neither being under abnormal pressure." chanroblesvirtualawlibrary
For purposes of just compensation in cases of private property acquired
by the government for public use, the basis shall be the current and
fair market value declared by the owner or administrator, or such
market value as determined by the assessor, whichever is lower.
Under this Decree, the assessed valuation which shall be the basis for
the payment of real property tax beginning with the calendar year 1973
shall be fifty per centum of the current and fair market value, as
determined by the assessor, in the case of commercial, industrial or
mineral lands; forty per centum in the case of agricultural lands; and
thirty per centum in the case of lands for purely residential purposes.
All improvements, including machineries, shall be assessed
independently of lands and their assessments shall be maintained at
their current levels, but in no case shall such levels be lower than
the assessment levels for lands hereinabove prescribed nor more than
eighty per centum of current and fair market value, except for purely
residential houses used as residence of owners thereof the assessment
levels of which are hereby fixed as follows:cralaw:red
Assessment Level Current Fair
Market Value
15% P30,000.00
or less
20% 30,001.00
to P50,000.00
25% 50,001.00
to 75,000.00
35% 75,001.00
to 100,000.00
45% 100,001.00
to 150,000.00
55% 150,001.00
to 250,000.00
65% 250,001.00
to 350,000.00
75% 350,001.00
to 500,000.00
5% over
500,000.00
2. Every five years hereafter, revision of real
property assessment shall be undertaken by provincial and city
assessors, and no increase in the current assessment level, as
determined by the assessor, at any one time shall be more than ten per
centum of the assessment levels mentioned in the foregoing paragraphs:
Provided, That the limitation herein fixed on the frequency of
assessment revision and increase in assessment levels shall not apply
if the nature of the real estate has been changed from rural to urban
or from residential to commercial and industrial site; And provided,
further, That the assessment level of real property shall not exceed
eighty per centum of current and fair market value, except upon prior
approval of the Secretary of Finance.
3. When real property is found in any city,
municipality or municipal district, the owner or administrator of which
failed to file the sworn statement required under this Decree on or
before June 30, 1973, 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 Decree.
No oath shall be required of a declaration thus made by the provincial
or city assessor.
4. When the entire assessed valuation of real
property in any one municipality or municipal district belonging to a
single owner is not in excess of five hundred pesos, the tax thereon
shall not be collected though in any event the property shall be valued
for the purposes of assessment and record shall be kept thereof.
5. All existing tax declarations as of December 31,
1973 shall be superseded by the corresponding new tax declarations
issued under this Decree. Collections, however, of delinquent real
property taxes as of December 31, 1973 shall be computed on the basis
of the assessed value and rates of penalty then obtaining.
6. To achieve a uniform appraisal of real property,
provincial and city assessors shall prepare a schedule of current and
fair market value of different classes of real property in their
respective jurisdictions, using as guide the instructions prescribed in
the implementing rules prescribed by the Secretary of Finance. Copies
of the schedule of market values shall be furnished by the Secretary of
Finance not later than September 30, 1973; and the same shall be
adopted for use under this Decree unless modified or revised by the
Secretary of Finance on or before November 30, 1973.
7. Any owner who is not satisfied with the action of
the provincial or city assessor in the assessment of his property under
this Decree may, within sixty days from the date of receipt by him of
the written notice of assessment, appeal to the Board of Tax
(Assessment) Appeals of the province or city, which shall be composed
of three members: the Register of Deeds, as Chairman, the Provincial or
City Auditor and the Provincial or City Engineer, as Members, who shall
serve as such in the ex-officio capacity without additional
compensation.
The Provincial or City Board of Tax (Assessment) Appeals shall decide
the appeal within sixty days from receipt thereof. The decision of the
Board shall fully recite the consideration upon which it is founded.
Upon receipt of the decision, the Provincial or City Assessor shall
thereupon act accordingly. If, however, the owner or administrator of
the property or the assessor be not satisfied with the decision of the
Board of Tax (Assessment) Appeals, he may within thirty days after
receipt of the decision of the Board, appeal to the Central Board of
Tax (Assessment) Appeals, composed of the Secretary of Finance, as
Chairman, the Secretary of Justice and the Secretary of Local
Governments and Community Development, as members, whose decision shall
be final. Said Central Board of Tax (Assessment) Appeals shall
promulgate rules and regulations governing the procedure in such
appeals.
The appeals, however, shall not suspend the collections of the
corresponding realty taxes as assessed by the provincial, or city
assessor, without prejudice to subsequent adjustment depending upon the
final outcome of the appeal.
8. To effectively implement the objective of this
Decree, provincial, city, municipal or municipal district boards or
councils shall provide the necessary appropriations to underwrite or
defray expenses incident thereto, using for the purpose any
unappropriated balances in the general, road and bridge and/or
permanent public improvement funds; any underestimated revenues
accruing thereto or reversions of unauthorized appropriations in their
respective budgets which are not otherwise urgently needed, existing
laws to the contrary notwithstanding.
9. Any increase in the shares of provinces, cities,
municipalities and municipal districts from the additional one per
centum realty tax levied and apportioned under Republic Act No. 5447,
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 Decree, shall remain as the
base year, shall be divided equally between the general fund and
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 centum the amount that shall accrue annually
to the local general fund.
10. Failure to pay the real property tax before the
expiration of the terms for the payment without penalty of the
quarterly installment thereof, shall subject the taxpayer to the
payment of a penalty equivalent to 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. chanroblesvirtualawlibrary
11. Any one who shall knowingly make false
declaration concerning any property or who shall deliberately fail to
file the sworn statement required in this Decree shall, upon
conviction, pay a fine of not less than five hundred pesos nor more
than ten thousand pesos. If the offense is committed by a corporation,
the manager or person in charge of the management of the business of
the corporations shall be responsible therefor.
Any officer charged with the duty of assessing real property, who shall
wilfully fail to assess, or shall omit from the tax lists, any real
property which he knows to be lawfully taxable pursuant to and
according to this Decree shall be punished by a fine not exceeding five
thousand pesos, or imprisonment of not more than two years, or both, at
the discretion of the court.
Any government official or employee who shall intentionally and
deliberately delay the filing of the real property tax declaration or
the filing of any appeal against an assessment shall, upon conviction,
be punished by a fine of not more than one thousand pesos or by
imprisonment of not more than two years, or both, at the discretion of
the court. chanroblesvirtualawlibrary
12. The Secretary of Finance is hereby ordered to
formulate the implementing rules and regulations to be followed by all
Provincial and City Assessors for the immediate and successful
implementation of this Decree.
This Decree shall form part of the laws of the land and shall take
effect immediately after its publication. All laws, rules and
regulations which are inconsistent with this Decree are hereby
repealed.
Done in the City of Manila,
this 6th day of December, in the year of Our Lord, nineteen hundred and
seventy-two.
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