Professional Documents
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Manual On Real Estate Appraisal and Assessment
Manual On Real Estate Appraisal and Assessment
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FOREWORD
Sections 201 of the Local Government Code of 1991 and Article 291 of its
Implementing Rules and Regulations (IRR) provide that the Department of Finance shall
promulgate the necessary rules and regulations for the classification, appraisal, and
assessment of real property. For this purpose, the Department of Finance (DOF) has
constituted a Committee composed of the officials and staff of the Bureau of Local
Government Finance (BLGF) and Provincial, City and Municipal Assessors to formulate a
Manual on Real Property Appraisal and Assessment Operations, which shall serve as a
guide for assessors all over the country.
This Manual is issued to provide local assessment and treasury officials, local
Sanggunians, the local Chief Executives, the local and national officials and others
concerned with an integrated and updated reference in real property assessment
administration. The Manual will serve as a valuable and effective guide for the Assessors in
discharging their functions in accordance with the new concepts of property valuation and
assessment envisioned under the Local Government Code of 1991.
This Manual essentially covers the standard operations and procedures in the
classification, appraisal and assessment of real property for compliance of all local
assessors. It is presented in a modest manner to provide an easy flow of information
pertaining to the statutory and administrative aspects of real property tax administration
with the end in view of attaining fairness and equity in the distribution of tax burden.
During the encomienda system of the Spanish Era, there was no real property tax in
the Philippines. Taxes on land were levied primarily on the male tenant of 16-60 years old
as personal taxes or tributes rather than the real land taxes. They were paid generally in the
form of agricultural products for the privilege to work on the land of the encomiendas.
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It was in 1901, during the American Regime that the real property taxation in the
Philippines was formally instituted. In 1901, Act Nos. 82 and 83 of the Philippine
Commission organized the municipal and provincial governments, respectively. These laws
authorized the municipality and the province to levy taxes on real properties. These taxes
became the primary source of locally-generated revenues. Likewise, Provincial and
Municipal Board of Assessors were created under the same law in each province and
municipality. The Municipal Board was charged with the assessing of real properties for
taxation purposes while the Provincial Board was authorized to levy an annual tax on the
real property assessed value. The said Act also charged the Provincial Treasurer of the
supervision of the real property assessment and tax collection.
Other laws affecting assessment and taxation of real property were enacted and were
later compiled and incorporated in the Administrative Code of 1916 under the Jones Law.
On December 5, 1932, Act No. 3995 “An Act Revising and Compiling the
Assessment Laws” was passed, which in effect repealed, compiled and incorporated into a
single Body all existing laws relating to the assessment and collection of real property taxes.
Then in July 1939, the National Assembly passed Commonwealth Act No. 470
repealing Act No. 3995. CA No. 470 continued as the Assessment Law from 1940 until the
birth of the new society in 1972 when His Excellency, President Ferdinand E. Marcos
initiated reforms in real property tax administration under Presidential Decree (PD) Nos. 25
and 76.
On May 20, 1974, PD No. 464 entitled “The Real Property Tax Code” was
promulgated as the law governing the Real Property Tax Administration in the Philippines.
The said law was designed to upgrade the assessment techniques, procedures and practices
in the country.
As provided under Section 8 of Batas Pambansa Blg. 337, dated February 10, 1983,
the Real Property Tax Code (PD 464) was recognized under the Local Government Code of
1983. Accordingly, PD 464, as amended, continued to be the governing laws relative to the
appraisal and assessment of real property for taxation purposes, as well as the levy,
collection and administration of the real property tax until the year 1991 wherein Title II
Book II of the Local Government Code (Republic Act No. 7160) has integrated the law on
real property taxation and repealing PD 464 in the process. Significant changes in the legal
framework, concepts and procedures embodied in the Local Government Code will be
comprehensively discussed in this Manual.
The Local Assessor shall take charge of the discovery, classification, appraisal,
assessment and valuation of all real properties within his territorial jurisdiction which shall
be used as the basis for taxation. His duties include the preparation, installation and
maintenance of a system of tax mapping and records management and the preparation of a
Schedule of Fair Market Values of the different classes of real property within his territory.
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CHAPTER I
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A. Major Functions
5. Make frequent physical surveys to check and determine whether all real
property within the locality are properly listed in the assessment rolls;
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8. Enforce uniformly the exemption from real property tax prescribed under
Chapter II Section 14 hereof;
10. 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;
12. Eliminate from the assessment roll of taxable property such properties
which have been destroyed or have suffered a permanent loss of value by
reason of storm, flood, fire or other calamity; or being exempt have been
improperly included in the same;
13. Decrease the assessment where property previously assessed has suffered
a substantial loss of value by reason of physical and economic
obsolescence; and
14. Increase the assessment where improvements and repairs have been made
upon the property subsequent to the last assessment.
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b. Prepare and maintain an assessment roll wherein shall be listed all real
property, whether taxable or exempt, located within the territorial
jurisdiction of the local government unit concerned, except in cases
where the assessors records are computerized and the same are directly
and operationally connected to the Provincial or City or Municipal
Treasurer in the form of LAN or local area networking;
f. The provincial, city, or municipal assessor shall within thirty (30) days
give written notice of such new or revised assessment to the person in
whose name the property is declared, when real property is assessed for
the first time or when an existing assessment is increased or decreased;
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o. Exercise such other powers and perform such duties and functions as
may be prescribed by law and ordinance.
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The assistant assessor shall assist the assessor in performing the foregoing functions
and perform such other duties as the latter may assign to him. All assignments or
delegations of functions to the Assistant Assessors must be in writing.
The Department of Finance shall be responsible for the supervision of the revenue
operations of local government units, with the objective of making these entities less
dependent on funding from the national government.
The BLGF shall exercise technical supervision and coordination over the treasury
and assessment operations of local governments, provide consultative services and technical
assistance to the local governments and the general public on local taxation, real property
assessments and other related matters and exercise line supervision over its Regional
Offices and the Local Treasury and Assessment Services.
DOF, thru BLGF shall exercise the authority to examine and enforce compliance
with the assessment laws, rules and regulations.
For this purpose, the DOF shall, on continuing basis, issue guidelines, rulings and
opinions on matters relating to the classification, appraisal and assessment of real property
and other issues relative thereto for the strict compliance of the local assessors.
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From the provisions of Sections 200 and 232 of the Local Government Code, it is
clear that the real property tax is, generally, a provincial imposition and, therefore, it is the
province that is vested with the power to levy and administer the real property tax and not
the municipality.
However, for reason of being a part of the provincial government, it is the Office of
the Provincial Assessor that shall perform such duties and function as may be essential to
the administration of the real property tax.
It is, therefore, the Provincial Assessors who have the authority to determine
whether or not Municipal Assessors within his territorial jurisdiction may be authorized to
approve tax declarations covering real properties within their respective municipalities.
Municipal Assessor of a province shall perform all the duties and functions related
to the classification, appraisal and assessment for taxation purposes of real property situated
within the municipality under the direct and immediate supervision of the Provincial
Assessor.
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As mandated under Section 472 (b)(12), of the Local Government Code, prescribed
hereunder is a minimum/model organizational structure and staffing pattern for the
Provincial/City/Municipal Assessor’s Office.
ORGANIZATIONAL CHART
PROVINCIAL ASSESSOR
* Optional
ASSESSMENT OPERATIONS
EVALUATION UNIT
ASSISTANT PROVINCIAL
ASSESSOR *
MUNICIPAL ASSESSORS
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ORGANIZATIONAL CHART
PROVINCIAL
ASSESSOR
ASSESSMENT
OPERATIONS
EVALUATION UNIT
MUNICIPAL
ASSESSOR
ASSESSMENT ASSESSMENT
RECORDS TAX MAPPING PROPERTY STANDARD &
ADMIN. IT OPERATIONS VALUATION &
DIVISION DIVISION MANAGEMENT EXAMINATION
DIVISION DIVISION EXAMINATION DIVISION
* Optional
** Recommendatory depending on the financial
capability of the province concerned
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ORGANIZATIONAL CHART
CITY ASSESSOR
ASSESSMENT OPERATIONS
EVALUATION UNIT
ADMINISTRATIVE AND
TAX MAPPING APPRAISAL AND
ASSESSMENT RECORDS OPERATIONS ASSESSMENT
MANAGEMENT
DIVISION DIVISION
DIVISION
* Optional
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ORGANIZATIONAL CHART
CITY
ASSESSOR
ASSESSMENT OPERATIONS
EVALUATION UNIT
* Optional
** Recommendatory depending on the
financial capability of the city concerned
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ORGANIZATIONAL CHART
MUNICIPAL ASSESSOR
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ORGANIZATIONAL CHART
MUNICIPAL ASSESSOR
ADMINISTRATIVE
IT TAX MAPPING APPRAISAL &
AND ASSESSMENT
OPERATIONS DIVISION ASSESSMENT
RECORDS DIVISION
MANAGEMENT DIVISION
* Optional
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Staffing Pattern
OFFICE OF THE PROVINCIAL ASSESSOR
(Minimum)
No. of Position
Provincial Assessor (Mandatory) 1
Assistant Provincial Assessor (Optional) 1 2
-------
A. Assessment Operations Evaluation Unit
Assessment Evaluation Officer I, G - 11 1
Assistant Statistician, G – 8 *
Clerk, G - 4 1 2
-------
B. Administrative and Assessment Records
Management Division
Assessment Records Officer III, G – 15 1
Assessment Records Officer I, G – 11 *
Assessment Clerk III, G – 9 1
Data Encoder II, G –8 *
Clerk III, G – 6 1
Assessment Clerk I, G –4 1
Storekeeper I, G – 4 1
Clerk I, G –3 1
Reproduction Machine Operator I, G – 2 *
Book Binder I, G –2 1
Driver I, G – 3 * 7
-------
C. Assessment Standard and Examination Division
Property Appraiser II, G –15 1
Property Appraiser I, G – 11 1
Assessment Clerk II, G –6 1
Assessment Clerk I, G – 4 1 4
-------
D. Tax Mapping Operations Division
Tax Mapper II, G –15 1
Information Systems Analyst I, G – 12 *
Tax Mapper I, G –11 1
Blueprint Machine Operator *
Draftsman, G – 6 1
Tax Mapping Aide, G – 4 *
Book Binder, G –2 * 3
------- ------
Total 18
* Optional
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Staffing Pattern
OFFICE OF THE PROVINCIAL ASSESSOR
(Recommended Maximum) **
No. of Position
B. Administrative Division
Administrative Officer IV, G – 22 1
Administrative Officer I, G – 11 1
Data Entry Machine Operator II, G – 8 1
Storekeeper II, G – 6 1
Clerk III, G – 6 2
Clerk II, G –4 2
Clerk I, G –3 1
Messenger, G – 2 1
Reproduction Machine Operator, G – 2 1
Driver I, G – 3 1 12
-------
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Total 72
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Staffing Pattern
OFFICE OF THE CITY ASSESSOR
(Minimum)
No. of Position
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*Optional
Staffing Pattern
OFFICE OF THE CITY ASSESSOR
(Recommended Maximum) *
No. of Position
B. Administrative Division
Administrative Officer IV, G – 22 1
Administrative Officer I, G – 11 1
Data Entry Machine Operator II, G –8 1
Storekeeper I, G – 6 1
Clerk III, G – 6 1
Clerk II, G –4 1
Clerk I, G –3 1
Messenger, G –2 1
Reproduction Machine Operator, G – 2 1
Driver I, G – 3 1 10
-------
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Staffing Pattern
OFFICE OF THE MUNICIPAL ASSESSOR
(Minimum)
No. of Position
*Optional
Staffing Pattern
OFFICE OF THE MUNICIPAL ASSESSOR
(Recommended Maximum) *
No. of Position
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Both shall be members of the RPTA Task Force charge with the
implementation of the RPTA Project.
Before the treasurer can initiate the steps leading to public auction of
delinquent real property or civil action through courts, the assessor
should provide the correct information concerning the ownership and
assessed value of the property in question.
e) On Records Keeping
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D. Geodetic Engineers
Secure from the Registrar of Deeds and Notaries Public copies of all
contracts, selling, transferring, or otherwise conveying, leasing, or
mortgaging real property received by, or acknowledged before them.
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1. Bills of lading
2. Letter of Credit
3. Official Receipt
4. Purchase Invoice
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CHAPTER II
1. Real property shall be appraised at its current and fair market value based on
the duly approved schedule of market values;
2. Real property shall be classified for assessment purposes on the basis of its
actual use;
4. The appraisal, assessment, levy, and collection of real property tax shall not
be let to any private person; and
(a) On lands:
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(1) Residential
(2) Agricultural
(3) Commercial/Industrial
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(4) Timberland
(c) On Machineries;
(d) On Special Classes: The assessment levels for all lands, buildings,
machineries and other improvements;
been liable but in no case for more than ten (10) years prior to the date of
initial assessment: Provided, however, that taxes shall be computed on the
basis of the applicable schedule of values in force during the corresponding
period. Provided further that the total tax liability is eleven (11) years
including the year the assessment is made. If such taxes are paid on or
before the end of the quarter next following the date the notice of assessment
was received by the owner or his representative, no interest for delinquency
shall be imposed thereon; otherwise, such taxes shall be subject to an interest
at the rate of two (2%) per month or a fraction thereof until such taxes are
fully paid but not to exceed thirty-six (36) months.
All terms defined under Section 199 of R. A. 7160 shall be controlling, and
those that may be incorporated in an Ordinance not otherwise inconsistent with the
provisions of laws.
(a) Acquisition 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;
(b) Actual Use – refers to the purpose for which the property is principally or
predominantly utilized by the owner or the person in possession thereof;
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(g) Assessment Level – is the percentage applied to the fair market value to
determine the taxable value of the property;
(h) Assessed Value – is the fair market value of the real property multiplied by
the assessment level. It is synonymous to taxable value;
(i) Buildings – are considered immovable provided they are more or less of a
permanent structure, substantially adhered to the land, and not mere
superimpositions on the land like barong-barongs or quonset fixtures and
provided there is the intent of permanent annexation. Note that the law uses
the term “adhered” and not “superimposed.” And this is true, whether the
building is built on one’s own land, or on rented land. The reason is clear:
the law on this point does not distinguish as to who built or owns the
building. (Civil Code of the Philippines, 14th Ed., Vol. II, p. 9, Paras)
(m) Economic Life – is the estimated period over which it is anticipated that a
machinery or equipment may be profitably utilized;
(n) Fair Market Value – is the price at which a property may be sold by a seller
who is not compelled to sell and bought by a buyer who is not compelled to
buy;
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(r) Mineral Lands – are lands in which minerals, metallic or non-metallic, exist
in sufficient quantity or grade to justify the necessary expenditures to extract
and utilize such materials;
(t) Remaining Economic Life – is the period of time expressed in years from
the date of appraisal to the date when the machinery becomes valueless;
(u) Remaining Value – is the value corresponding to the remaining useful life
of the machinery;
(w) Residential Land – is land principally devoted to habitation. (Sec. 199, R.A.
No. 7160)
(x) Special Classes of Real Property – All lands, buildings and other
improvements thereon actually, directly and exclusively used for hospitals,
cultural, or scientific purposes, and those owned and used by local water
districts, and government owned or controlled corporations rendering
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5. Foreshore Land – A strip of land along the seashore, the use of which may or
may not be granted by the government to private person or corporation.
6. Mangrove Land – is a term applied to the type of forest occurring on tidal flat
along the seacoast, extending along stream where the water is brackish. (P.D.
705)
7. Orchard – land specifically devoted to various fruit bearing trees and plants.
1 Province Index Number - The first three (3) digits (1st, 2nd and 3rd) in the
Property Identification Number (PIN) shall be used to identify the Province,
City and Municipality of Metropolitan Manila Area. For this purpose, each
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province, city and municipality of Metro Manila Area, is hereby assigned with a
specific Index Number indicated as follows:
Province
Province Index Number
Batanes -001
Cagayan -002
Ilocos Norte -003
Abra -004
Kalinga-Apayao -005
Mountain Province -006
Ilocos Sur -007
La Union -008
Benguet -009
Ifugao -010
Isabela -011
Nueva Vizcaya -012
Pangasinan -013
Nueva Ecija -014
Quezon -015
Zambales -016
Tarlac -017
Bataan -018
Pampanga -019
Bulacan -020
Rizal -021
Cavite -022
Laguna -023
Batangas -024
Camarines Norte -025
Camarines Sur -026
Catanduanes -027
Occidental Mindoro -028
Oriental Mindoro -029
Marinduque -030
Albay- -031
Sorsogon -032
Romblon -033
Masbate -034
Northern Samar -035
Western Samar -036
Eastern Samar -037
Aklan -038
Capiz -039
Antique -040
Iloilo -041
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City
City Index Number
Laoag -101
Baguio -102
Dagupan -103
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City/Metro
Manila Mun.
City/Metro Manila Municipalities Index Number
Olongapo -109
Navotas -110
Malabon -111
Valenzuela -112
Caloocan -113
Quezon -114
Marikina -115
San Juan -116
Manila -117
Mandaluyong -118
Pasig -119
Taguig -120
Pateros -121
Makati -122
Pasay -123
Parañaque -124
Las Piñas -125
Muntinlupa -126
Cavite -127
Trece Martires -128
Tagaytay -129
San Pablo -130
Lipa -131
Batangas -132
Lucena -133
Puerto Princesa -134
Naga -135
Iriga -136
Legazpi -137
Roxas -138
Iloilo -139
Cadiz -140
Silay -141
San Carlos (Negros. Occ.) -142
Bacolod -143
Bago -144
La Carlota -145
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Canlaon -146
Bais -147
Dumaguete -148
Toledo -149
Danao -150
Mandaue -151
Cebu -152
Lapu-Lapu -153
Tagbilaran -154
Ormoc -155
Tacloban -156
Calbayog -157
Dapitan -158
Pagadian -159
Zamboanga -160
Surigao -161
Butuan -162
Gingoog -163
Cagayan de Oro -164
Dipolog -165
Oroquieta -166
Ozamiz -167
Tangub -168
Iligan -169
Cotabato -170
Marawi -171
Davao -172
General Santos -173
Sagay -174
Santiago -175
Kabankalan -176
Antipolo -177
Talisay -178
Samal -179
Tagum -180
Kidapawan -181
Tuguegarao -182
Passi -183
Victorias -184
Tacurong -185
Bislig -186
Koronadal -187
Calapan -188
Sorsogon -189
Digos -190
Gapan -191
Calamba -192
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(b) City District Index Number - The City Districts shall be numbered
beginning with "01" in the northwesterly most district, thence in an
easterly direction, thence southward to the next district, thence
westerly direction, thence southward and then repeat in an easterly
direction until al the districts within the city are assigned with index
numbers. (See Fig. 3 for a typical City District Index Map).
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3. Barangay Index Number - The next four (4) digits (6th, 7th, 8th and 9th) in
the Property Identification Number shall be used to identify the barangay.
Barangays are numbered beginning with "0001" for the Poblacion and
continuing serially through all barangays on an alphabetical basis, by
municipality. (See Figures 4 and 4-A, for a typical Barangay Index Map).
In cases where the poblacion consists of two or more barangays that were
designated numerically such as Poblacion I, Poblacion II, etc., the barangays
shall be numbered in like manner, i.e., 0001 for poblacion I, 0002 for poblacion
II, etc. However, if the barangays are designated by name as Poblacion Centro,
Poblacion West, etc., the barangays shall be numbered beginning with 0001 for
barangay, preferably, where the municipal building is located, followed serially
through barangays in an alphabetical order.
Illustrations:
000 00 0000
Province Municipality Barangay
000 00 0000
City District Barangay
000 00 0000
Mun. District Barangay
5. Section Index Number. - Following the nine digits, which are the fundamental
components of the property identification number, are three (3) digits (10th, 11th
and 12th) which shall be used to identify the section. Sections shall be numbered
in conformity with the layout under Sec. 30 hereof beginning with "001" in the
north westernmost section, thence on an easterly direction, thence southward,
thence on a westerly direction, thence southward and then repeat on an easterly
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direction, or stated differently, in an inverted "S" pattern, until all the sections
within the barangay are assigned index numbers.
The 1st, 2nd and 3rd digits represent the Province/City/Municipality of MMA
Index Number; the 4th and 5th represent the Municipal/District Index Number;
the 6th, 7th, 8th and 9th digits represent the Barangay Index Number; the 10th,
11th and 12th digits represent the Section Index Number; and finally the 13th and
14th digits represent the permanent parcel number. Thus the complete number
sequence of a PIN is illustrated as follows:
Example: (1) The PIN of Lot (05) of Section (002) of Barangay (0005)
at Municipality (15) in the Province of (020) is:
020-15-0005-002-05
8. PIN of Building. – A building which shall be separately assessed from the land,
should bear the PIN of the land with a four(4)-digit number (1001) added to it.
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12. Barangay Index Numbers for New Barangays. - In preparing a new Barangay
Index Number once the mother barangay is divided into two or more barangays,
the procedure is to cancel the previous original barangay index number and use
the last succeeding Barangay Index Number. For example, if the last Barangay
Index Number is 0021, the succeeding (new) Barangay Index Number shall be
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0022, 0023, etc., following the principle of retiring the PIN of a parcel of land in
case of subdivision/consolidation.
Illustration:
13. Mechanics of PINS. - It shall be the duty of the Provincial, City or Municipal
Assessor of Metropolitan Manila Area to explain to all his personnel the
mechanics and system of the Property Identification Numbering. Special
instructions shall be made to the personnel of the Tax Mapping and the Records
Division, who are directly involved in the execution of the Tax Mapping
Operation.
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than the landowner, shall be attached to the FAAS of the land and
assigned with temporary PIN bearing the temporary PIN of the land
with postfix B1 added to it, followed by B2, B3, etc. for the additional
FAAS still covering buildings identified to be standing on the same
land, for example: 0001-0001B1; 0001-0001B2; 0001-0001B3, etc.
Tax mapping is a highly accurate method of field operations for identifying real
property units, defining property boundaries, determining actual use, and discovering
undeclared properties for taxation purposes
1. Pre-field Operations
2. Field Operations
3. Post Field Operations
Importance of Tax Maps. - Tax maps are the single most important tool in
the assessment process. It is impossible to establish an adequate property tax record
and accounting system without tax maps, for they are the basic foundation of the
system. They establish a permanent link between the real property in the field and
the tax records in the office. They are indispensable to the discovery of property and
the identification of property ownership. They simplify the task of property
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description and tie together all property records, including field appraisal and
assessment sheet, tax rolls, and collection registers. They also serve the additional
important purpose of providing the public with vital real property information.
Finally, tax maps make possible the establishment of a system of records that is
easily adopted to automatic data processing techniques.
Thus, it may be seen that tax maps are absolutely necessary in any systematic
method of assessment administration. As tax maps constitute the first step and the
prime requisite of any general valuation or revaluation program, assessors should
place the highest possible priority on their construction over all other phases of
assessment work.
C. PERSONNEL SUPPORT
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3. Staffing the Tax Mapping Division.- In order to carry out effectively the tax
mapping operations under the RPTA program, the Tax Mapping Division
shall be provided, at least, with the following minimum regular positions:
(2) Two (2) Tax Mappers - The Tax Mapper shall serve as team leader
in tax mapping field operation. Preferably, he should have some
college engineering background with demonstrated leadership and
supervisory capability.
(3) Two (2) Draftsmen - They are the ones responsible for the
preparation of all maps (from base maps to final maps) relative to
real property tax administration and may be utilized to assist in
actual sketching work in the field. A high school or vocational
graduate with substantial training or experience in drafting or
cartography may qualify for the position.
(5) One (1) Map Filer - He shall be responsible for the filing and safe
keeping of tax maps and related records. He must be at least a
high school graduate of average intelligence and above all
dependable.
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1. Facilities.- A separate work area for the preparation and storage of tax maps
and related files must be provided, away from direct contact with the public
but immediately accessible to field survey personnel. The work space
provided should be cool, dust-free, and of sufficient floor area to provide
freedom of movement between and around drafting tables, map files, etc.
Adequate working facilities represent only a relatively limited cash
investment, but one that is absolutely essential to a successful Real Property
Tax Administration improvement projects.
As the various field phase of tax mapping and tax appraisal work
are accomplished the work burden shifts to the Office where the official tax
maps and records are prepared. Once again, the success of the operation
depends to no small degree on the adequacy of the equipment, tools and
materials available for the work to be done.
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Provision of adequate working tools, equipment and materials for field tax
mapping and tax appraisal operations is also of great importance. Field crew that
arrives on site with adequate tools, equipment and materials are in a position to
produce quality work. Without this support, the end product will suffer and the
time taken to produce even inferior work will increase substantially.
Tax mapping field teams should have access, at least, to the tools,
equipment and materials listed below:
(2) Materials:
1. Base Source Data Inventory. - Tax maps should be prepared from either
one or any combination of base data sources, viz: (1) the existing
engineering control survey maps; (2) the rectified aerial photograph; or (3)
the original parcellary survey to be conducted by the Assessor's Office.
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(2) Public Land Survey Maps - maps of surveys conducted for the
purpose of subdividing land in accordance with some pre-arranged
plans within a designated area. (Davis and Foote Surveying)
(5) Map of Existing Road Network - map showing the location, extent,
design and alignment of roads.
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Base Map - The first step in the preparation of tax maps is to secure base
maps. These maps should be a coordinated and updated maps drawn to scale
which shows political boundaries, lot lines, public and private improvement
such as roads, highways, railroad lines, irrigation network and natural features
like rivers, creeks, lakes, etc. (See Fig. 5.)
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controlled land surveys has been completed. The original (in tracing paper) of
the base maps shall be safely kept and preserved in the Office and shall not be
used as a working map for tax mapping purposes in the field. Instead, several
prints of the original base map shall be made and used as working map in the
field.
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(3) Procedure:
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(c) Plane Table Survey: Two basic kinds of table are used: a
small traverse with peep-sight alidade and fixed leg tripod without
leveling head, obviously appropriate only for rough work; and the
standard plane-table board, usually 24 by 31 in., set on a tripod
having either the USC & GS fourscrew leveling head or the
Johnson ball-and-socket head.
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The three-point location method determines the plane table position after
the table is set up at a place from which three or more prominents plotted
control signals can be seen. Area drawn with radii equal to the measured
distance and using the plotted signal points as centers give the desired point.
Scales of Map - The following are some standard scale that shall be considered
in the preparation of maps. The sizes of parcels of land and convenience for
field use have been the controlling factors in influencing its use.
PRE-FIELD OPERATIONS
- The first step in the Pre- field operation is the preparation of base map as
earlier discussed. It is important that cadastral maps and all engineering controlled
maps are secured from the Department of Environment and Natural Resources/Land
Management Bureau (DENR/LMB) or from other government agencies concerned.
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the claimant’s list may serve as an aid for purposes of validation and/or
reconciliation as to the name of the claimant and the area.
It is always possible that not all prepared FAAS could be tied-up with the
parcels in the base map. This requires actual verification in the field. Chances are
that several parcels on the base maps may not be covered by tax declarations hence
undeclared by the owners. As such, a new FAAS for each of this parcel shall be
prepared on the field after identifying the property.
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a) Courtesy Call - Immediately upon arrival on the field, and prior to the
beginning of the work, the Chief of the Tax Mapping Division together
with all members of the team should confirm their arrival with the
appropriate local officials. This generally entails a visit to the municipal
building. Crewmembers are introduced to local officials so that they can
be recognized on sight as members of the Assessor’s staff. The Chief,
Tax Mapping Division should also present and discuss their work plan
and schedule with local officials and arrange a tentative schedule for
periodic meetings to keep them well-informed of work progress.
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Guides who are not needed immediately can return to their barangay
and begin an independent informal survey to facilitate and expedite the
property identification operation in their respective barangays. Guides should
be impressed that the major purpose of the operation is to identify real
property parcels and their respective owners.
1. Tax Mapper
3. Barangay Guide
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7. Parcels on the base map should be properly assigned with the temporary
PIN in red ink. If properly identified and for pre-tie up parcels a check
mark is indicated meaning a complete tie up has been made and T in blue
ink should be reflected for titled parcels.
8. Determination of adjustment factors such as type of road outlets, distance
to all weather road, Poblacion, Market and Trading Centers
9. For mixed classification such as agricultural and residential, the area for
both should total the area reflected on the base map
10. For newly discovered land declared for the first time, a new FAAS
should be prepared with ten (10) years back taxes imposed from date of
discovery
11. Approved plan from the Bureau of Forestry with declaration that the land
is alienable and disposable
12. If the property has been occupied for less than 10 years, a barangay
captain’s certification should be presented with the affidavit of the
adjoining owners stating that such taxes shall take effect the year
following the occupancy
13. For Buildings:
− Gather all data needed to come up with correct computation of market
value to determine the correct assessed value.
− Other building plans should be secured if possible.
14. For Machineries:
− Machine type
− Number of machine
− Brand name of machine
− Year acquired/installed
− Condition of machine
− Replacement/Reproduction cost for old machine
Upon returning from the field, the tax mapping operation enters its final
phase. In this phase, the final tax maps are prepared, permanent property
identification numbers are assigned, if necessary land area is calculated and
the FAAS are completed.
a) Definition of Terms:
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Standard Format and Size of Tax Map. - The tax map shall be prepared
from the validated base map and/or parcellary sketches made in the field using the
standard map format prescribed under Annexes ___ and ___ hereof. The overall
size of the prescribed standard tax map is 35.5 centimeters by 50 centimeters.
Moreover, index maps, which shall be bound together with the tax maps,
become necessary that their size shall be the same as that of the tax map.
1. Activities:
b. Drafting the Tax Map - Field sketch information on the base maps shall be
refined and drawn in the appropriate section first in pencil and finally in
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black ink. The tracing must follow a standard as to weight and types of
lines, symbols and lettering. Information inscribed on the tax map shows lot
lines which represents property ownership boundaries and intersection of lot
lines which represents property owners. That area bounded on all sides
represents a separate land ownership. This process is repeated until each
section has been completely drawn to cover an entire barangay. Joining
information should be recorded for the purpose of matching contiguous
sections.
c. Standard Lines, Symbols and Lettering for Detail Tax Map. - Tax maps
are the foundation of the assessor's record system and provide the
description for the assessments of all parcels of real property for taxation
purposes. The maps therefore should be neat, consistent and uniform in all
designation. The standards and specifications are set in Annexes "D" and
"D-1".
1. The standard and uniform line designations shall be used for all
property lines and the standard set forth in the standard symbols shall be
consistently used.
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g. Final Parcel Numbering on Tax Map. - After all the parcels have been
drawn in the section map, each separate parcel therein shall be assigned a
two (2) digit number. The numbering sequence shall start from the northern
most parcel as "01" and moving from west to east, then south, and east to
west, then south (or tersely stated in an inverted "S" pattern), repeating the
west-east-south, east-west-south process until all parcels within the section
have been numbered. Insofar as possible consecutive lot numbers should be
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contiguous to each other, such as lot 01 should adjoined to lot 02; or lot 02
has a common boundary line with lot 03. See Figures 9, 10, 11, and 12 for
illustration.
i. Drafting the Index Maps. - After the completion of the tax maps, index
maps shall be prepared. These maps are important because it facilitate ready
reference in locating the particular tax map for a city or municipality. It
also provides key identification and control of all lands within the province,
city or municipality as well as district and barangay. The order of
preparation of these maps is as follows:
(a) Section Index Maps - After tax maps have been prepared, section
index map of every barangay shall be prepared by consolidating all tax
maps comprise a barangay, showing therein the boundary lines of the
section with its corresponding index number which is numbered in
accordance with Section15 hereof. Inasmuch as the size of the index map
will be the same with that of the tax map, it is necessary that a larger scale
be used so that the same would fit in the standard size.
(c) Municipal Index Map or City District Index Map - These maps
shall be prepared by consolidating the completed index maps in the
immediate preceding paragraph. This map shows the municipal boundary
lines of each municipality in the case of province, and district/barangay
boundary lines in the case of city or municipality of MMA, both with its
corresponding municipal/district/barangay index number. The map size
shall be the same with that of the tax map.
j. Post Tax Mapped Control Roll. - A Post Tax Mapped Control Roll
(TMCR) shall be prepared for every tax (section) map, based from the
information entered in the pre-tax mapping control roll duly accomplished
by the field crew during the field operation. The parcel entries are now
arranged consecutively by PIN entering parcel number 01 on the first line of
the control roll, unlike in the Pre-TMCR where the parcel entries are
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k. Calculation of Land Area. - The final phase in the tax mapping operation is
to calculate, if necessary, the area of the parcel of land by geometric
formulae, or by mechanical measure (planimeter or other devices). When
this information has been recorded on the FAAS, it shall be forwarded to the
assessment operation for purposes of appraisal and assessment, which is the
next step in the RPTA process.
It is important to remember that the sum total of the land area of newly
created parcels must be equal to the land area of the original parcel. This
information shall be then recorded on the appropriate FAAS and forwarded
to the Records Management Division thus ending the process. Records shall
be also improved on a continuous basis as engineer controlled land survey
information becomes available.
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It be the first rule of the assessor's office that the tax map original should not leave the
office. Instead, prints should be made for any intended purpose.
For this reason, it is required that as each municipality or city that has been
completely tax mapped, at least two (2) complete sets/prints shall be made. In the
case of the province, at least three (3) complete sets/prints shall be made.
The set of tax map prints together with the post tax map control roll (TMCR)
covering the whole municipality or city shall be loose bound in book form arranged in
the following order:
(d) Followed by the Post Tax Map Control Roll of the 1st Section of the first
Barangay
(e) Followed by the Tax Map (1st Section) of the first Barangay
(g) Followed by the Tax Map (2nd Section) of the same Barangay
The set of original tax maps (in transparency sheet) together with the original
TMCR shall be arranged in similar manner, in loose leaves and securely filed in a steel
map cabinet.
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2. Changes in Land Area. - There are four (4) kinds of land area changes
which can possibly occur; they are (1) the subdivision of land (the
division of land into smaller ownerships); (2) consolidation (combining
two or more parcels thereby creating one large single ownership); (3)
natural physical phenomenon (such as shifting of river courses); and (4)
road and irrigation canal construction, etc. These land changes require
revision of property identification number and sometimes revision of tax
maps. All such changes will be reflected in new FAAS which shall be
referred to the Tax Mapping Division and becomes the instrument which
initiates appropriate action.
(a) One Tax Map Book is to be used exclusively for the purpose
of cross- referencing information from other information sources, such
as cadastral lot numbers, benchmark locations, existing monuments, etc.
Under no circumstances should this information be inscribed on tax map
masters. The reason for this is quite simple. Tax maps must be kept as
clear as possible for the purpose of rapid and accurate reading through
the elimination of as much extraneous information clutter as possible.
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MISCELLANEOUS PROVISIONS
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map of the barangay and shall be given a section number next to the last section in
the barangay. Notation shall be made on the original parcel, as "See
Section(s)____".
(c) The revision of tax map(s) shall be made either after the year end or
during general revision of property assessments. Revision of tax map refers to the
assigning of new number of all parcels within an individual tax map, or section, or
barangay, or district.
In the case of revision for individual tax map, revision shall be allowed if
50% or more parcels in a particular tax map has been affected due to subdivision,
and apparently making the parcel numbers cluttered or no longer discernible.
(d) In case of real property whose owner is unknown, the name of the actual
occupant shall be indicated in the line provided for "Administrator", which should
be superimposed by the word "Occupant" including its address in order that any
notices regarding the said property shall be sent thru the occupant.
(e) As regards the extent of a road or an irrigation canal, which is yet owned
by the registered owner, traversing a parcel of land, the boundaries of which shall
be shown by a designated lines and the same shall be considered as a separate
parcel.
However, if the property owner insists in writing that the affected area be
recorded as part of the said parcel, the same should not be deducted from the area of
such land. Thus the same shall be an integral part of such land and still considered
as one parcel.
(f) When an easement, which restrict the use by the registered or declared
owner, is granted over or through a parcel of land and annotated in the title
certificate, the boundaries of which should be drawn in standard lines. Thus the
same should be considered as a separate parcel.
(h) Two or more contiguous parcels of land owned by a single owner may
be considered as one parcel if the property owner thereof insists/requested in
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writing to declare the same under one assessment for real property taxation
purposes.
(i) The extent of railroad track, which will be a closed figure, shall be
considered as one parcel of land in every tax map.
(k) Building that is standing on two or more lots will bear the PIN of the lot
where the bigger area of said building is located.
(m) Adjacent boundaries such as section number, lot number and lines
within a municipality or city shall be indicated on the tax map and to be shown by
its standard designation and lettering.
(n) Adjoining local government units, its boundary lines and names, shall be
indicated in the tax map and to be shown by its standard designation and lettering.
(o) When the mineral rights to a parcel of land are in different ownership
with that of the surface right, the surface right shall possess the PIN of such parcel
of land, and the mineral right should bear the same PIN of the surface right and a
four (4) – digit number (such as 3001) will be added to it.
Where the tax map is not yet installed in the LGU, the identification for real
property unit (RPU) should be done through the series of transactions, in a manner
wherein each RPU within the barangay in a municipality must be distinctly marked.
In case of province:
01-000-00000
01 - refers to the 1st municipality after all the municipalities in the province shall
have been arranged alphabetically and consequently numbered
chronologically .
000 - refers to the designated number of barangay which should also be arranged
alphabetically before they are numbered chronologically. However,
Barangay Poblacion should always be assigned the number “001” and
thereafter followed by the first barangay so arranged.
00000- refers to the series/numbers of daily transactions done consecutively until the
last transaction and shall again start with 00001 when a General Revision of
Assessment of Real Property (GRARP) shall be undertaken.
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In case of city:
01-000-00000
01 – refers to district number after all the districts within the city shall have been
assigned their respective number in pursuance of Section 3(b) hereof.
000 - refers to the designated number of barangay which should also be arranged
alphabetically before they are numbered chronologically. However, Barangay
Poblacion should always be assigned the number “001” and thereafter
followed by the first barangay so arranged.
00000 - refers to the series/numbers of daily transactions done consecutively until the
last transaction and shall again start with 00001 when a General Revision of
Assessment of Real Property (GRARP) shall be undertaken.
The entire office support operation as it relates to the real property tax
administration program must be specifically budgeted in order that needed items will
be on hand and ready for use when needed. Following are the items that will be
needed and for which the budget should make special provisions:
Drafting Machine
Pantograph
Planimeter
Scales (metric)
Drafting Sets (Pens, compasses, etc.)
Lettering sets
Triangles
T-squares
Straight Edge
Tracing Paper
Drafting Film
Ink
Erasers
Etc.
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FAAS
Tax Mapped Control Roll
Property Record Form
Property Ownership Cards
Tax Declaration
Real Property Tax Order of Payment
Accomplishment or Production Report Sheet
Before any general revision of real property assessment is made pursuant to the
provisions of Title II, Book II of the Local Government Code, there shall be prepared a
schedule of fair market values by the provincial, city and the municipal assessors of the
municipalities within the Metropolitan Manila Area for the different classes of real property
situated in their respective local government units for enactment by ordinance of the
sanggunian concerned. The Schedule of Fair Market Values shall be published in a
newspaper of general circulation in the province, city or municipality concerned, or in the
absence thereof, shall be posted in the provincial capitol, city or municipal hall and in two
other conspicuous places therein. In case of Metropolitan Manila Area, the assessors of each
district shall meet, discuss, compare and harmonize their respective schedule of values.
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The sales data to be considered in the sales analysis shall meet the
following criteria:
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1. Quitclaims
2. Sheriffs Deeds
3. Tax Deeds
4. Transfer between relative or interrelated companies;
5. Transfer involving non-residents or governmental
jurisdiction;
6. Foreclosures;
7. Deeds of donation
8. Deeds of Exchange
Comparison with
Property subject
Sale No. _Price_ Date of Sale of Appraisal____
Analysis:
c. Indications show that the fair market value of the lot under
appraisal is P360 per square meter;
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Rule:
d. Abstraction Method
Example:
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1. Steps involved in translating the net income Projection into a value indication (AIREA,
The Appraisal of Real Estate)
a. Estimate potential gross income;
b. Estimate and deduct a vacancy and collection loss allowance to derive effective
gross income;
c. Estimate and deduct expenses of operation to derive net operating income (net
income before recapture);
d. Estimates remaining economic life of the duration and pattern of the projection
income stream;
3. Capitalization Process
a. Capitalization defined –
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Illustrations:
Solution:
Capitalization Rate:
Example 2: Determine the present value of a 200 sq.m. lot where a 3-door
residential apartment was constructed using the following
assumptions:
1. Gross Income
(P600 x 3 x 12) = P21,600
2. Less 5% vacancy
Allowance = 1,080
3. Effective Gross Income =P 20,520.00
4. Less Expenses against
building:
a. Taxes
(2% of 90,000 x .65) = 1,170
b. Insurance
(2% of 90,000 x .6) = 1,440
c. Repair & Maintenance
(5% of rent collection) = 1,926
d. Management charges
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Capitalization rate:
Assume that:
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Example 4. (Riceland):
In leasehold agreement, the sharing of rice production, are 75% for the tenant
and 25% for the landlord, all expenses charged to the tenant except taxes.
Solution:
1. Under Assessment Regulations No. 7-77 dated July 26, 1977 of the
Ministry of Finance, the productivity of a 2nd class unirrigated riceland ranges from
47 to 63 cavans of palay per hectare. The midpoint of the range is therefore 55.
4.Capitalization rate:
Tax (2% x 40%) ____ .8%
Interest rate ____ 12%
____
12.8%
5. Capitalized
Value per
Hectare P893.75 = P6,982.42, say
.128 P6,980
=====
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Basic to the cost approach is the Principle of Substitution; i.e. “No prudent person
will pay more for a property than the amount for which more for a property than the amount
for which he or she can obtain by purchase of a site and construction of a building without
undue delay, a property of equal desirability and utility.”
3.2 A certain brand new electric generator was bought in 1992 at P300,000
(assumed). The same brand of generator is now sold (2003) at P1,500,000.
The replacement cost of said generator is therefore P1,500,000. The
accumulated allowable annual depreciation from 1972 to 1984 should be
deducted from the replacement cost of P1.5M to determine the current
market value of the old generator bought in 1972.
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A. Legal Basis:
B. Technical Aspect:
2. In the case of Metro Manila, the Assessors of the district shall meet,
discuss and harmonize their respective schedules of market values.
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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
provision of this Title.
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.
The appraisal of real property shall be based on the latest Schedule of Fair Market
Values prepared by the Provincial Assessor, City Assessor or Municipal Assessor of Metro
Manila Area (MMA) embodied in an Ordinance passed by the Sangguniang Panlalawigan,
Sangguniang Panlungsod or Sangguniang Bayan of municipalities within Metro Manila
Area.
Appraisal of real property declared for the first time shall be listed, classified and
valued on the basis of the SFMV (either for land or building), and shall be subject to back
taxes (if applicable) of not exceeding ten (10) years from the year of initial assessment.
Thus, the property shall be liable to tax payment for a maximum of eleven (11) years
including the current year. The schedule of values applicable for the affected period shall
be controlling.
ILLUSTRATION:
(A) Land - Declared in 2003. Assume all supporting documents are submitted.
Basic Data:
Area - 10,000 square meters
Condition- Planted to fruit bearing tree
SFMV - 1993 - P20.00 per sq. m.
- 1994 - P50.00 per sq. m.
- 2000 - P110.00 per sq. m.
COMPUTATION OF VALUE
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! Requirements for the appraisal of land declared for the first time:
(d) Certification from the Barangay Captain that the declarant is the
present possessor and occupant of the land and the certification of the
Adjoining Owners duly sworn to by the Barangay Captain and/or the
Municipal Mayor;
(b) Certified true copy of the title issued by the Registry of Deeds,
certifying among others, that the original copy of which is intact and
existing in the said registry.
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(2) Lands located in areas of mixed land uses – In an area of mixed land
uses, such as residential with commercial or industrial, the
predominant use of the lands in that area shall govern the
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(4) Vacant lands shall be classified, valued and assessed like similar
lands in the locality.
(5) Lands actually, directly and exclusively used for cultural or scientific
purposes, located in residential, commercial or industrial areas shall
be classified and valued as residential, commercial or industrial in
accordance with the schedule of base market values determined on
the basis of that schedule.
(8) Lands actually, directly and exclusively used for religious, charitable
or educational purposes located in residential, commercial or
industrial areas shall be classified, valued and assessed as residential,
commercial or industrial.
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(9) If those lands actually, directly and exclusively used for religious,
charitable or educational purposes are, however, located in an area of
mixed land uses, such residential with commercial or industrial, the
predominant use of the lands in that area shall govern the
classification, valuation and assessment of those lands used for
religious, charitable or educational purposes.
(1) Rectangular lot within the standard depth - To find the value
of a rectangular lot within standard depth, multiply base unit
value by its area.
(2) Rectangular lot whose depth exceeds the standard. (Compare
with Book)
(3) Rear (Interior) Rectangular Lot. – To find the value of a
interior rectangular lot, extend first the two (2) opposite sides
from a hypothetical rectangular lot supposedly formed by a
combination of the hypothetical rectangular lot and the
subject lot as in Rule I (b).
(4) This value less the value of the hypothetical rectangular lot
computed also as in Rule I (b) is the value of subject
rectangular lot.
(c) Trapezoidal Lot. – To find the value of a trapezoidal lot, compute the
values of the rectangular and triangular portions separately, according to
the rules hereof and take the sum of the computed values for the total
value.
(d) Irregular Lot. – Reduce the irregular lot to the nearest equivalent
rectangular, triangular, trapezoidal sector and apply the abovestated rules
for computation of lot values.
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(e) The established SFMV along a particular street in an urban area shall be
controlling irrespective of the actual use.
ILLUSTRATION:
ILLUSTRATION:
(f) Appraisal by Stripping Method shall be adopted where the length of the
land exceeds the established depth of 20 meters for residential areas, 30
meters for commercial areas, and 50 meters for industrial areas as
determined by the local assessor. Suppose a residential lot 20 by 50
meters is located along a street whose schedule of base unit value is
P20.00 and the standard depth for residential land in the locality is 20
meters.
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ILLUSTRATION:
1) Recomputed
TOTAL
STRIP W L AREA SFMV MARKET VALUE
1ST 20 X 3 600 X P1,500 (100%) P 900,000.00
0
2nd 20 X 2 500 X P1,500 (80%) 600,000.00
5
TOTAL 1,100 sq.m. P1,500,000.00
(g) Corner lots shall be valued with percentage increment as determined by the
local assessor in SFMV, provided that only the SFMV along the street with
the highest value will be considered as the factor for the corner influence.
Provided further that an alley or callejon shall not be a factor to
increase/adjust the value of the land.
(h) Adjustment for Frontage - Adjustment value for frontage shall be added to
the valuation of all commercial lots fronting streets or roads. The same is
derived by multiplying the length of frontage in linear meter by 50% of the
unit base value thereof.
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The base unit market value per hectare prescribed in the schedule
is multiplied by the area to arrive at its market value for different sub-
classes of agricultural lands. No provision in R.A.7160 for trees and
plants and it is the kind of plants and trees that determine the
classification and value of agricultural land. The aggregate value arrived
at is subject to the applicable adjustment(s) expressed in percentage(s)
for: (a) Type of road where the property is located or accessible, and (b)
location of property such as distance from the public road, and from the
poblacion or trading center.
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ILLUSTRATIONS:
Percentage
Adjustment SFMV
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Requirements:
(b) A copy of the authority to sell from the Housing and Land Use
Regulatory Board (HLURB);
(c) Certified true copies of the Transfer Certificate of Title (TCT) and/or
summary of Certified List of individual TCTs issued indicating the
TCT Number, Name of Owner, Lot Number and corresponding area;
(d) Certificate of real property and transfer clearance issued and signed
by the Provincial, City or Municipal Treasurer/authorized
representative; and
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A. Land Acquisition
B. Water Supply Provision
C. Route Planning and Surveying
D. Grading and Shaping
E. Installation of Irrigation and Drainage System
F. Seeding and Landscaping
G. Slope Rating
Per Hole
Flat course P 500,000
Gently sloping course 700,000
Hilly courses 900,000
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4) TURF - (Stratum of soil bound by grass and plant roots into a thick
mat) Types of grasses, condition of turf overall maintenance and the quality
of the playing surface.
5) SOIL – This rating considers the types of soil on the golf course and
how well the soil can support a good playing surface. The soil’s ability to
drain ground water and support natural hazards.
GOLF CHARACTERISTICS
(c) List of saleable areas and sold plots as of the end of every year;
(d) The aggregate area for the pathways, open spaces which remained in
the name of the developer which are recorded in the permanent
assessment record; and
(e) Memorial Park the lots of which are still registered in the name of the
owner/developer shall still be assessed and declared in its name and
shall be classified as commercial. Lots already in the name of the
buyer and actually used as burial ground shall be likewise assessed
and classified as commercial and considered exempt.
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(a) Land converted into other uses, e.g. agricultural to residential, residential to
commercial, made known to the assessor in writing by the owner shall be
inspected for confirmation of the actual condition/use of the property;
(b) A report of the actual condition of the property and the recommendation
thereof should be rendered either by the responsible personnel of the
Provincial Assessor’s Office or the Municipal Assessor not exceeding fifteen
(15) working days after inspection in accordance with the policy as may be
prescribed by the Provincial Assessor;
(c) Among others, the report may contain, tangible land improvement, e.g. land
leveling and compaction, construction of road networks, drainage and other
relevant land amenities;
(d) In all others cases, Local Finance Circular No. 3-92 dated September 11,
1992 and Local Finance Circular No. 1-98 dated December 15, 1998 shall be
controlling in reclassifying agricultural land to non-agricultural uses the
pertinent portions thereof is quoted hereunder: (Local Finance Circular No.
1-98 dated December 15, 1998 shall be controlling in reclassifying
agricultural land to non-agricultural uses, pertinent portions thereof is quoted
hereunder: “x x x”).
(a) Copy of the approved building permit, building plan, and/or certificate of
Completion or Certificate of Occupancy permit from local officials
concerned;
(b) Notice of the date of inspection, if the owner/administrator is not around
during the discovery;
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• In case of two (2) storey building used both for residential and
commercial or industrial purposes, the same shall be classified and
valued in accordance with the Schedule of Basic Unit Construction Cost
and shall be assessed on the basis of the principal and predominant use of
the building.
• Historical or vintage building the life span of which had surpassed the
estimated economic life shall be independently reassessed from the
ordinary course of the established procedures.
• Bowling alleys shall be valued separately from the principal building but
its appraisal shall form part of the whole, except the machinery, which
shall be independently appraised and assessed.
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STRONG MATERIALS:
MIXED CONCRETE:
REINFORCED CONCRETE:
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6. Terrace:
7. Roof Deck:
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8. Basement:
9. Pavement…………………….
Asphalt ………..
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NOTES:
1) All the Base Unit Values herein indicated are not controlling and the same may vary
depending upon the schedule of Unit Value enacted by the Sanggunian concerned. The
foregoing rule shall not apply to Parking Spaces or garage of high rise buildings which
shall be appraised and assessed on the basis of the base unit construction cost of the
building plus additional provisions depending on the type of finishings.
3) DEFINITION OF TERMS:
(c) Terrace – a relatively level paved or planted area adjoining a building and in formal
settings often surrounded by a balustrade.
(d) Balcony – a usually unroofed platform projecting from the wall of a building,
enclosed by a parapet or railing, and usually nesting on brackets or consoles.
(e) Porch – a covered entrance to a building usually with a separate roof and often large
enough to serve as an outdoor seating or walking space
ILLUSTRATION :
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COMPUTATION OF VALUE:
ADJUSTMENT
DESCRIPTION AREA UNIT Percentage MARKET
VALUE Adjustment VALUE
NOTE :
For three or more storeys, the same procedures in valuation shall apply,
provided that when the materials and amenities differ including but not limited to
quality and design of fixtures, etc., appropriate adjustments either plus or minus
percentage on the basic SFMV have to be made.
C. A duplex, apartment/row houses shall be valued per unit and the aggregate
appraisal shall be indicated as the value of whole, whether the structural
design, materials used differs or typical for proper identification, reference
and adjustment in case of segregation of the units.
ILLUSTRATION :
A Two-storey duplex with typical semi-concrete for ground floor, 1st floor
cement flooring with vinyl tiles, 2nd floor colored cement, G.I. roofing, etc.
Dimension: Unit A
Type IV – Building
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COMPUTATION OF VALUE:
Add:
ILLUSTRATION :
A building with three or more fix adjoining units, e.g. apartment, row houses
or town houses shall be valued similar with the valuation of a duplex. Differences in
SFMV that maybe attributed due to Type, structural design, quality of materials used
and other fixtures inside and outside the building.
Assume that in Illustration 15.1, the identical/replica units are four instead of
two, the valuation would be:
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ILLUSTRATION:
ILLUSTRATION:
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NOTE:
• Depending upon the enabling or master deed of the Condominium project, each
separate unit should be appraised independently, whether or not the Condominium
Certificate of Title is in the name of the corporation or individual person.
• Each separate unit shall have the same Unit Base Value. Number of rooms, toilet
and bath and other internal amenities are important factors to consider for higher
valuation.
• The common area in the building should be appraised and assessed in the name of
the Condominium Corporation or Association.
• Town house shall also be appraised and assessed in accordance with the above-
mentioned provisions on condominiums.
• The capital equipment such as machinery, elevators, water pumps and tanks of the
condominium project shall be listed and assessed aggregately in the name of the
Condominium Corporation or Association.
• Parking Spaces not sold to respective unit owners in the building shall be considered
as common areas, assessed and declared in the name of the developer-owner or
Condominium Corporation or Association of the condominium building for taxation
purposes.
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ILLUSTRATION:
COMPUTATION OF VALUE
ADJUSTED
DESCRIPTION AREA UNIT VALUE PECENTAGE MARKET
(SQ. M.) ADJUSTMENT VALUE
Two-Bedrooms 18.00 Php6,000.00 + 20% Php29,600.00
Living Room 16.00 6,000.00 + 30% 124,8000.00
Dining & Kitchen 17.00 6,000.00 + 30% 132,600.00
Toilet & Bath 9.00 6,000.00 + 10% 59,400.00
Php446,400.00
Open Terrace &
Carport 30.00 3,000.00 90,000.00
Total Reproduction Php536,400.00
Cost New
Less: Depreciation 128,736.00
(6/25=24%)
Market Value (Rev.) 407,664.00
Assessment Level 20%
81,532.00
ASSESSED VALUE Php81,530.00
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In the excess of the above rate of annual depreciation, bigger rate may be granted for
extra-ordinary causes, if properly presented and described as in the case of the following:
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(1) The appraisal of machinery shall be based on its actual cost which
include the acquisition cost, freight and insurance charges, brokerage,
arrastre and handling, customs duties and taxes, transportation, handling
and installation charges, among others, to the site.
(2) To support the actual cost, the declared value or sworn statement from
the owner or responsible officer in case of a corporation, shall be secured
to form an integral part of the appraisal report.
(3) The imported brand new machinery, the market value should be based on
its acquisition cost; which cost shall be that with the actual cost to the
owner and when the same is not yet depreciated and appraised within the
year of its purchase, plus the cost of freight, insurance, bank and other
charges, brokerage, arrastre and handling, duties and taxes, plus cost of
inland transportation, handling and installation charges at the present site.
The cost in foreign currency shall be converted to peso cost on the basis
of foreign currency exchange rates fixed by the Bangko Sentral ng
Pilipinas (BSP).
(4) In all other cases the cost in foreign currency of imported machinery
shall be converted to peso equivalent based on exchange rates fixed by
the BSP, at the time of acquisition, and applied a depreciated allowance
of not exceeding 5% per year.
FMV = AC x FERAC
WHERE:
AC = Acquisition Cost
FERAC = Foreign Exchange Rate at time of Acquisition
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ILLUSTRATION:
NOTE:
• Indicated figures are rough estimates.
• The declared value of the owner, subject to confirmation by the assessor, is
controlling.
FORMULA:
Where:
ILLUSTRATION :
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(i) If the machinery has reached its maximum economic life, the 20% residual
value shall be applied against the last current Market Value determined during
the last general revision which shall be maintained for so long as the
machinery is serviceable and in operation.
(j) Appraisal of Elevated Rail Track and Road shall be based on cost approach or
income approach whichever is applicable the total market value of which shall
be apportioned or pro-rated to the local government units they traverse.
(k) Appraisal of Transmission Lines, Transmission Tower, Cell Sites and the likes
shall be assessed like all other machineries and taxes thereon paid in the local
government unit where they are constructed. Transmission lines including the
posts be assessed on the basis of its total value using the cost or income
approach and the total market value shall be apportioned or pro-rated to the
local government unit where these lines traverse.
(l) Appraisal and assessment for submerged pipe lines for natural gas and water
shall be assessed on the basis of the cost or income approach, the total market
value thereof shall be apportioned or pro-rated to the local government unit
they traverse.
(m) Appraisal for Heavy Equipment being used and operated in Timberland area
and Mineral Land shall be assessed on the basis of the cost approach in the
local government unit where they operate. In cases where they operate in more
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than one local government unit, the market value thereof shall be apportioned
or pro-rated among local government units.
(b) Stripping of land beyond the established standard depth for a particular class
of property shall be adhered to;
(c) For lands bounded by two parallel streets, the value of the last strip should
not be lower than the market value per square meter of the abutting street;
and
(d) Application of adjustments based on factors not specified in the SFMV, such
as but not limited to the shape, topography and blighted status adversely
affecting the value of the property being assessed, should be applied;
(e) In case of buildings, machinery and other structures, already covered by the
existing assessment, reproduction/Replacement Cost New Less Depreciation
(RCNLD) approach shall be applied.
(f) All assessments or re-assessments made after the first (1st) day of January of
any year shall take effect on the first (1st) 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 sudden inflation or deflation of real property values, or to the gross
illegality of the assessment when made or any other abnormal cause, shall be
made within ninety (90) days from the date any such cause or causes
occurred, and shall take effect at the beginning of the quarter next following
the reassessment; Provided further, that real property declare for the first
time shall be assessed for the taxes for the period during which it would have
been liable but in no case for more than ten (10) years prior to the date of
initial assessment: Provided, however, That such taxes shall be computed on
the basis of the applicable schedule of values in force during the
corresponding period. If such taxes are paid on or before the end of the
quarter following the date the notice of assessment was received by the
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The following are the basic requirements for the issuance of tax declaration
of transferred real property:
(b) Copy of realty tax clearance or official receipt from the Local Treasurer;
(f) A sworn statement of the market value of the property filed by the
transferee.
(c) Copy of the realty tax clearance or official receipt issued by the local
treasurer;
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(b) A certificate of realty tax payment or official receipt issued by the local
treasurer as well as the copy of the Official Receipt of Transfer Tax.
B. Statutory provisions -
1. Real property owned by the Republic of the Philippines or any of its political
subdivisions except when the beneficial use thereof has been granted, for
consideration or otherwise, to a taxable person.
(a) Under this provision, real property owned by the Republic of the
Philppines, or any of its political subdivisions (Provinces, cities,
municipalities and barangays) shall be declared taxable in the
name of the grantor or grantee, refers to their patrimonial or
private properties under Article 421 and 423 of the Civil Code
and excludes real property for public use and for public service,
which are beyond the commerce of man; and to lands of public
domain granted, sold or leased under Com. Act No. 141 and the
Forestry Laws.
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within the cemetery limits acquired for but not yet actually
used for the burial of the dead.
D. All machineries and equipment that are actually, directly and exclusively
used by local water districts and government-owned or controlled
corporations engaged in the supply and distribution of water and/or
generation and transmission of electric power
C. All real property owned by duly registered cooperative as provided for under
R.A. 6938.
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Pursuant to the provisions of Section 230, Chapter 3, Title Two, Book II of Republic
Act No. 7160, otherwise known as the Local Government Code of 1991, the following rules
of procedure governing proceedings before the Local Boards of Assessment Appeals on
appeals by real property owners from the assessment collection of real property taxes by the
provincial or city assessors and treasurers, or municipal assessors and treasurers in the
Metropolitan Manila Area, are hereby adopted and promulgated.
RULE I
Section 1. Title – These rules shall be known as the Rules of Procedure in the Local
Boards of Assessment Appeals.
The “Local Board of Assessment Appeals” shall mean any of the Boards of
Assessment Appeals in every province or city, including the municipalities comprising the
Metropolitan Manila Area. Whenever the term “Local Board” is used in any part of these
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rules, it shall be held to mean the Provincial or City Board of Assessment Appeals or the
Municipal Board Assessment Appeals of any of the municipalities within the Metropolitan
Manila Area.
RULE II
Section 3. Oath of Office – The Chairman and Members of the Local Board shall
enter into the duties of their respective positions without need of appointment or special
designation in the manner prescribed under Section 317 (g) of the LGC.
Section 3. Submission of Oath of Office – It shall be the duty of the Local Board
Chairman and Members, by its Board Secretary, to furnish the Central Board of Assessment
Appeals with a copy of their oaths of office and, whenever there is a change in the person
occupying a particular position in the Local Board, to update the Local Board Roster of
Membership on the file in the Central Board.
RULE III
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Section 2. Submission of Monthly Reports – The Local Board shall submit to the
Central Board a monthly report of accomplishment which shall state, among other, the
number of cases receive and disposed of, the assessed values involved, and all ocular
inspections conducted for evaluation, policy formulation, program coordination and
statistical purposes.
RULE IV
Section 1. Jurisdiction – The Local Board shall have original jurisdiction to hear
and decide appeals of owners/administrators of real property from the action of the
Provincial or City Assessors, or the Municipal Assessors in the Metropolitan Manila Area,
in the assessment of their real properties, and from the action of the Provincial or City
Treasurers, or Municipal Treasurers in the Metropolitan Manila Area, regarding collection
of real property taxes, special levies, or other real property taxes under Title Two, Book II
of the R. A. No. 7160.
RULE V
Section 1. Who May Appeal – Any owner or administrator of real property, or any
person having legal interest therein, who is not satisfied with the action of the provincial,
city or municipal assessor in the assessment of his property may appeal to the Local Board
of Assessment Appeals of the province, city, or municipality with the Metropolitan Manila
Area, where the property is located. A real property taxpayer who is aggrieved by the
decision, action or inaction of the provincial, city or municipal treasurer over excessive
realty tax paid under protest, or on claim for refund of illegally or erroneously collected real
property tax, including special levies on real property, may likewise appeal to the Local
Board as provided in the Rule.
Section 2. Period of Appeal – (a) The owner, administrator or person who is not
satisfied with the assessment of his property may, within sixty (60) days from the date of
receipt of the written notice of assessment, appeal to the Local Board concerned.
(b) Any real property taxpayer who is aggrieved by the decision, action or inaction of the
provincial or city treasurer, or municipal treasurer within the Metropolitan Manila Area,
on his written claim for refund or credit may appeal to the Local Board concerned as
follows:
1. If, within sixty (60) days from the date or receipt by the treasurer
concerned of the written claim for refund or credit for tax paid under
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protest the treasurer concerned fails to make any decision thereon, the
appeals may be made within sixty (60) days from the date of receipt by
the treasurer concerned of the said written claim for refund or credit; or
2. If, within sixty (60) days from the date of receipt by treasurer concerned
of the written claim for refund or credit for tax paid under protest the
treasurer concerned denies the said claim, the appeal may be made
within sixty (60) days from the date of receipt by the taxpayer concerned
of the said treasurer’s decision denying the said claim.
Section 3. Parties in the Local Board. – The real property owner or person
making the appeal shall be called the “Petitioner” and the Provincial or City Assessor or
Treasurer, or the Municipal Assessor or Treasurer within the Metropolitan Manila Area,
shall be called the “Respondent”.
For this purpose, the Secretary of the Local Board may assist the petitioner in filing
of the appeal for purposes of substantial compliance with the aforementioned requirements.
Section 6. Nature of Proceedings – The proceedings before the Local Board shall
be conducted solely for the purpose of ascertaining the truth without necessarily adhering to
the technical rules applicable in judicial proceedings.
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the hearing thereof shall be deferred until the corresponding taxes due on the real property
subject of the appeal shall have been paid under protest or the petitioner shall have given a
surety bond, subject to the following conditions:
1. The amount of the bond must not be less than the total realty taxes and
penalties due as assessed by the assessor nor more than double said amount;
2. The bond must be accompanied by a certification from the Insurance
Commissioner (a) that the surety company is duly authorized to issue such
bond; (b) that the surety bond is approved by and registered with said
Commission; and (c) that the amount covered by the surety bond is within the
writing capacity of the surety company; and
3. The amount of the bond in excess of the surety company’s writing capacity, if
any, must be covered by Reinsurance Binder, in which case, a certification to
this effect must likewise accompany the surety bond.
Section 8. Docket – Upon receipt by the Local Board Secretary of the appeal, the
same shall be docketed and assigned a case number consecutively in the order or receipt.
Dokecting and other fees, which the Local Board may hereafter fix, shall be collected.
Thereafter, the parties shall place the case number on all other related pleadings which may
be filed.
RULE VI
DECISION
Section 1. Period to decide – The Local Board shall decide the appeal within one
hundred twenty (120) days from the date of receipt of such appeal. The Board, after
hearing, shall render its decision based on substantial evidence or such relevant evidence on
record as a reasonable mind might accept as adequate to support the conclusion.
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RULE VII
Section 1. Powers – In the exercise of its appellate jurisdiction, the Local Board
shall have the power to summon witnesses, administer oaths, take despositions, and issue
subpoena and subpoena duces tecum and conduct ocular inspections of the real properties in
question.
The Local Board may likewise prescribe filing, docketing, and other fees at such
rates or amounts as it may be deem just, proper and reasonable, consistent with the
expenses, such as office supplies and services, that its local government unit may incur to
serve the needs of every petitioner or appellant.
Section 2. Duties - The Local Board shall conduct hearings on all appealed cases
and render decisions thereon with the periods prescribed by law. It shall likewise inform
the Central Board of any new matter or issue not provided for in these rules, and submit to
the latter such reports or information as the Central Board may require from time to time.
RULE VIII
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RULE I
Section 1. Title. – These rules shall be known as the Rules of Procedure before the
Central Board of Assessment Appeals.
Section 4. Definition of Terms – Whenever they appear in any part of these rules
and in decisions, orders, and resolutions, the term “Central Board” shall be held to mean the
Central Board of Assessment Appeals and the term “Local Board” shall be held to mean the
Boards of Assessment Appeals of every province or city, including the municipalities
within the Metropolitan Manila Area.
RULE II
Section 3. Place of Office. – The Central Board shall hold office at the EDPC
Building, Bangko Sentral ng Pilipinas Complex, Roxas Blvd., Manila.
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Section 4. Conduct of Business. – The Central Board may, on its own, conduct
hearings of any appealed cases on such date and at such time and place it may designate,
taking into consideration the interest of the parties concerned.
Section 5. Supervision over Local Boards. – The Central Board shall have
supervision over the local boards and shall promulgate rules and regulations relative to their
proceedings.
RULE III
RULE IV
APPEAL
Section 2. Who may appeal; when to appeal. – Any party in a case before the
Local Board who feels aggrieved by the decision, resolution or order of the said Local
Board may, within thirty (30) days from and after receipt of the said decision, resolution or
order, appeal to the Central Board.
Section 3. How appeal taken. – An appeal shall be taken by filing a written notice
of appeal, and the appeal itself, personally or by registered mail, with the Local Board
which rendered the decision, resolution or order appealed from, or directly with the Central
Board or with the latter’s field office in the area where the real property in question is
located, after serving a copy each of the notice of appeal and the appeal upon the adverse
party or the latter’s attorney. The appeal shall state clearly and distinctly the decision,
resolution or order appealed from, the date when appellant received a copy thereof, the
grounds relied upon , and the arguments in support thereof.
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Section 4. Time to answer or comment. – The appellee may, within ten (10) days
from and after receipt of the appeal, file his answer or comment thereto after service of a
copy of said answer/comment upon the appellant.
Section 5. Transmittal of Records and Appeal. – Within ten (10) days from
receipt of the notice of appeal or from receipt of the notice from the Central Board to the
effect that an appeal has been filed, whichever comes first, the Local Board which rendered
the decision or order appealed from shall transmit to the Central Board the complete
original records of the case, together with transcripts of stenographic notes, if any. The
records, with pages duly numbered from the earliest document to the latest, shall be
accompanied by a certification to the effect that the same constitute the original and
complete records of the case involved.
Section 6. Docket and Docketimg Fee. – Upon receipt of the appeal, the
Secretary of the Central Board shall docket and assign the same with a case number
consecutively in the order of receipt. Appeals coming from the Luzon area shall be
numbered “L-___”; those from Visayas area, “V-____”; and those from Mindanao area,
“M-____”. The parties shall place the case number so assigned on all subsequent pleadings
filed relative thereto.
No appeal before the Central Board shall be considered filed unless the
corresponding docketing fee, in legal tender or in postal money order made payable to the
Central Board, is paid. The docketing fee shall be based on the realty tax assessment
involved in the appeal: Provided, That, if the realty tax assessment involved cannot be
determined, the docketing fee shall be P500.00 per appeal, thus:
If the corresponding realty taxes are not paid, the Central Board may nevertheless
entertain an appeal by requiring the appellant to file a bond to guarantee the payment of the
said taxes if found to be due, subject to the approval by the Central Board.
Section 8. Withdrawal of Appeal. – The Appellant may withdraw his appeal at any
time before the resolution thereof by the Central Board by filing a written notice of
withdrawal with the Central Board which shall enter a memorandum thereof upon the
docket of the case. The parties thereto shall forthwith be advised in writing by the Central
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Board of such withdrawal. No further proceedings shall be taken on the appeal, the
withdrawal having the same effect as that of dismissal of the appeal.
RULE V
Section 1. Period to decide; finality of decision. – The Central Board shall decide
cases brought before it on appeal within twelve (12) months from the dates of receipt
thereof. A decision by the Central Board shall become final and executory fifteen (15) days
after receipt thereof by the appellant or appellee, as the case may be. If a petition for
reconsideration is filed on time, said decision, as may be modified by a resolution on such
petition, shall become final and executory fifteen (15) days after receipt by the appellant or
appellee, as the case may be, of a copy of said resolution.
Section 2. Decisions, orders and entry thereof. – All decisions of the Central
Board determining the merits of the case brought before it on appeal shall be in writing and
signed by the members of said Board, stating clearly and distinctly the facts and the law on
which they are based, and filed with the Secretary of the Board.
As soon as it becomes final, the decision or order shall be entered in the Book of
Entries of Decisions with a notation on the dispositive portion of the decision or order. The
entry shall be signed by the Secretary of the Board that such decision or order has become
final and executory. Thereafter, the Secretary shall return the complete original records of
the case, together with a certified copy of the decision or order, to the Local Board
concerned.
Section 3. Petition for reconsideration. – The Central Board shall, with like
jurisdiction, resolve petitions for reconsideration of its decisions, resolutions or orders. An
aggrieved party may file a motion for reconsideration within fifteen (15) days from the date
he receives the Central Board’s decision, resolution or order sought to be reconsidered,
furnishing the adverse party with a copy of such motion: Provided, That only one petition
for reconsideration shall be entertained.
Section 4. Opposition. – The adverse party may file his opposition to the motion
for reconsideration within ten (10) days from the date he receives a copy of the said motion.
RULE VI
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Section 1. Parties in the Central Board. – The owner of the property involved, or
the person having legal interest therein, shall be called the “ Petitioner-Appellant” or
“Petitioner-Appellee”, as the case may be. The Local Board concerned shall always be
called the “Appellee” and the Assessor or Treasurer shall be called the “Respondent-
Appellant” or “Respondent-Appellee”, as the case may be.
Section 3. Citations. – Citations shall be indented at least one inch from the left
and right margins and shall be typed single-spaced.
Section 4. Number of Copies. – Six (6) copies, including the original copy of the
appeal shall be filed.
RULE VII
HEARING OFFICERS
Section 2. Duties and Functions of the Hearing Officers. – The Hearing Officers
shall, upon direction of the Central Board, conduct hearings of all appeals before the Central
Board in their respective venues upon direction of the Central Board. They may receive
new evidence pertinent or relevant to issues raised and decided in the Local Board relative
to appeals in the Central Board. For this purpose, they are authorized to summon witnesses,
take depositions, issue subpoena and subpoena duces tecum, administer oaths on all matters
or proceedings related to the performance of their duties and, after due notice to parties
concerned, conduct ocular inspections of real properties subjects of the appeals whenever
such inspections are deemed necessary.
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CHAPTER III
INTRODUCTION:
This chapter shall govern the installation and maintenance of a real property
assessment records system in every local assessment jurisdiction for real property taxation
purposes; and shall cover the following subject matters:
(b) The procedures in, or manner of, preparing and maintaining these assessment
records/forms; and
(c) The unit in the assessor’s office, or the assessor’s office concerned as well as the
personnel responsible in preparing and maintaining the assessment
records/forms.
Objectives. - This aims to establish a uniform records system and ensure that a
systematic method of assessment is installed in every assessor’s office throughout
the country. More particularly, the objectives of this chapter are as follows:
(a) To systematize the existing real property records management system, which
would be the source of all information from manual to computerized records
system in the local assessor’s offices;
(b) To install and maintain a uniform real property assessment records system in the
offices of the provincial, city and municipal assessors.
(c) To provide the provincial, city or municipal treasurers with updated real property
assessment records of real properties within their respective jurisdictions from
which the latest records of real property tax collectibles can be generated.
(1) Real Property Field Appraisal and Assessment Sheet (FAAS) for Land;
(Attachment 1)
(2) Real property Field Appraisal and Assessment Sheet (FAAS) for
Buildings and other Structures; (Attachment 2)
(3) Real Property Field Appraisal and Assessment Sheet (FAAS) for
Machinery, (Attachment 3)
The FAAS shall be prepared for every real property unit as it is the
most important tool of an assessor. It contains all information needed in
appraising a real property unit including the sketch of the land or the floor
plan of the building. It enables an Assessor to keep constant account of all
real property units in a locality. The FAAS when approved shall be a source
for generating all other assessment records.
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- In LGUs that have not been tax mapped, the FAAS are first
segregated by barangay, then they shall be arranged
alphabetically by surnames of the property owners, after
which they are assigned ARP numbers as recorded in the
JAT. Subsequent FAAS are numbered chronologically.
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1 Subdivision SD
Consolidation CS
3 Discovery/New Declaration DC
4 Reassessment due to Physical PC
Obsolescence.
5 Reassessment due to a dispute DP
in Assessed Value or
assessment to correct an error
in the assessment of property
due to wrong information,
erroneous documents, etc.
6 Reassessment due to
destruction of the Property DT
(Partial)
7 Transfer/Segregation TR
8 Reclassification RC
9 General Revision GR
e) OCT/TCT No., Survey No., Lot No. and Blk. No.: Indicate the
Original Certificate of Title (OCT) number or the Transfer
Certificate of Title number of the lot and the date of entry as
indicated in the title; the survey plan number such as Cad –774,
Psd – 10011, its designated lot number (Lot 1104) and/or block
number (Blk. 2) as verified and/or as validated.
f) Owner: Indicate the name of the declared owner with his or her
middle name or initial as much as possible, his mailing address.
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- The Beneficial User refers to that person who has been granted or
permitted to use the subject property and who is liable for the
payment of real property taxes under Section 234 of RA No.
7160.
- In the case of street, river, etc. state the name of such street, road,
river, etc. bounding the subject property.
Sources of information:
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n) Property Assessment:
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For Cities/Municipalities
Within Metro Manila Area:
For Cities:
For Provinces:
A tax declaration shall be prepared for every real property unit (RPU) in
the general revision of property assessment, and thereafter, as in the
following instances:
- When the property is newly discovered and declared for the first
time.
- When there is change in location.
- When there is a change in area,
- When there is a change in classification,
- When there is a change in ownership, and
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• Manner of Filing
a) No.: This refers to the number of the tax declaration that is, the
TDN/ARPN. In case of municipalities outside Metro Manila Area,
the Provincial Assessor shall have the sole authority to assign such
number.
b) Property Index no.: Indicate the PIN (Property Index No.) assigned to
the subject property.
c) Owner: Indicate the name of the owner of the property in the same
manner as in the FAAS, and mailing address.
d) Administrator/Beneficial User: Indicate the name of the
administrator, if any, as well as the mailing address.
e) Location of Property: Indicate the building number, if any, the name
of street, the name of barangay, municipality/district and province or
city.
f) OCT/TCT No.: Survey No.; and Block No.: Indicate, as far as
practicable, the Title number and the date of entry, the survey plan
no., lot no., and block number.
g) Boundaries: Indicate the appropriate description bounding the subject
property as appearing in the FAAS.
h) Kind of Property: Indicate the kind of real property such as land,
building or machinery.
i) Classification: Indicate the classification of the property (RACIMST)
as appearing in the FAAS.
j) Area: Indicate the area of the parcel of land or area of the building, as
the case may be, as appearing in the FAAS.
k) Market Value: Indicate the market value as appearing under Property
Assessment of the FAAS.
l) Actual Use: Indicate the actual use of the property (RACIMIST) as
appearing in the FAAS.
m) Assessment Level: Indicate the assessment level as appearing in the
FAAS.
n) Assessed Value: Indicate the assessed value as appearing in the
FAAS.
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o) Total: Indicate the total market value and the total assessed value as
appearing in the FAAS.
p) Total Assessed Value: Indicate in words the amount of total assessed
value.
q) Taxable: Mark the appropriate “Taxable” box if the property is
taxable as indicated in the FAAS.
r) Exempt: Mark the appropriate “Exempt” box if the property is
exempt as indicated in the FAAS.
s) Effectivity of Assessment/Reassessment: Indicate the effectivity year
or quarter of the year, as appearing in the FAAS
t) Recommending Approval: The Municipal Assessor outside Metro
Manila Area; or the Assistant City Assessor, or the Assistant
Municipal Assessor within Metro Manila Area shall affix their
signature over their printed name, as the official recommending
approval of the assessment, or more particularly the tax declaration.
u) Approved By: The City Assessor, the Municipal Assessor in Metro
Manila or the Provincial Assessor shall approve and affix their
signature over their printed name. The Provincial Assessor, however,
may delegate such authority to the Municipal Assessor.
v) “This declaration cancels TD No./ARP No.”: Fill such space by
entering the TD No./ARP No. of the cancelled or superseded
assessment.
w) “Memoranda”: Enter the remarks as noted in the FAAS.
x) Note: Fill-in the blank spaces provided for as follows:
• Purpose of form:
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The Tax Map Control Roll (Post) shall be prepared separately for
each section maps and for new/created section map. Extra sheets
may be allowed for listing as the need arises.
• Manner of Filing:
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f) Land: Fill in the appropriate columns which are headed from, left
to right, and described as follows:
i) TD No.: Enter the tax Declaration No. In line with the respective
ARPN.
j) Improvements:
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To provide the Treasurer the basis for updating and validating his real
property tax records.
Assessment Roll:
Office of the City Assessor
Office of the Municipal Assessor in
Metro Manila
Office of the Provincial Assessor
p. Initially, the Roll shall be prepared arising from the general revision or
property assessment, and thereafter, a quarterly supplemental update
shall be prepared, furnishing the Treasurer concerned until the next
general revision, except in cases where the assessors records are
computerized and the same are directly and operationally connected to
the Provincial or City or Municipal Treasurer in the form of LAN or local
area networking.
• Number of copies to be prepared and the office where they are filed
Municipalities within
Metro Manila:
Cities:
Municipalities outside of
Metro Manila:
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• Manner of Filing:
- Page No.: Indicate the page number of the sheet, which is the
barangay index code and follows by the sheet number. For
instance, barangay “A” has an Index No. 001 and consist of 4
sheets of assessment roll, the first sheet bears the page no. 001-1,
second sheet will bears the page no. 001-2 and so on.
- Under the ________ General Revision: Fill-in the blank space
provided by indicating the year, which is the time when the
general revision was undertaken and subsequent assessment made
using the same schedule of market values that caused the listing in
the Assessment Roll, i.e., 1992-93.
- Province/City: Enter the name of the Province or City followed by
the Index No.
- Municipality/District: Enter the name of the municipality/district
followed by the Index No.
- Barangay: Enter the name of the barangay and its Index No.
- Date Prepared: State the date of entry in the roll was made.
- ARP No.: Enter the assessment of real property (ARP) number
assigned to the property as noted in the FAAS.
- TD No.: Enter the tax declaration number.
- PIN: Enter only the Section Index No. and Assessor’s Lot number
assigned to the land including the four (4) digits suffixes in the
case of building or machinery.
- Lot/Block No.: Enter the Lot Number and Block No.
- Property Owner: Enter the name of the property owner with the
surname written first followed by the first/given name and the
middle initial.
- Address of Property Owner: Enter the full address of the property
owner.
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- Kind: Enter the Kind Code as noted in the FAAS such as L for
land, B for building and M for machinery.
- Assessed value: Enter the assessed value as noted in the FAAS
under “Property Assessment.”
- Classification: Enter the Classification Code of the property, i.e. R
for residential, etc. (RACIMST).
- Assessed value: Enter the assessed value as noted in the FAAS
under “Property Assessment.”
- Previous ARPN: Enter the superseded ARPN as noted in the
Reference and Posting Summary.
- Previous TDN: Enter the superseded TDN as noted in the
Reference and Posting Summary.
- Effectivity: Enter the year or quarter in which the assessment take
effect as noted in the Property Assessment.
- Tax Rate: State the rate of the tax for the locality as fixed in the
ordinance.
- Tax Due: State the amount of tax to be collected (Assessed Value
times Tax Rate).
- NATB No.: Enter the number of Notice of Assessment and tax Bill
as assigned by the assessor concerned.
- Remarks: State the important and relevant remarks pertaining to
the property tax of the property.
- Data entered in RPTAR:
- To provide the Treasurer the basis for updating and validating his real
property tax records.
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Assessment Roll:
Municipalities within
Metro Manila:
Cities:
Municipalities outside of
Metro Manila:
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• Manner of Filing:
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• Manner of Filing:
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" Name of Owner: Enter the name of the owner in the same manner
noted in the FAAS/TD.
" TIN: Enter the Taxpayer’s Identification Number, that is, the TIN
of declared owner.
" Address and Tel. No.: State the complete address of the property
owner for mailing purposes as well as his/her telephone number.
" Date Prepared: State the date of entry.
" Prov./City/Mun.: Enter the name of the Local Government Units
followed by its Index No. that prepared the card.
" Date of Entry: State the date (Month/day/year) upon every entry.
" Kind: State the kind code, as “L” for land, plant and trees; “B” for
building and “M” for machinery as indicated in the FAAS/TD.
" Class Code: Enter the classification code of the property such as
R (residential), A (Agricultural), C (commercial), I (industrial), M
(Mineral), S (Special), and T (Timber) as noted in the FAAS/TD.
" PIN: State the Barangay Index No., the Section Index No. and
Assessor’s lot No. of the subject property as a municipality/city
record but as a Provincial Record include the Municipal Index
No.
" Title No.: Enter the Certificate Title No., original or transfer.
" Lot/Block No.: Enter the lot No. and/or Block No., under the
survey plan.
" ARPN/TDN: Enter the Assessment of Real Property
Number/Tax Declaration Number as noted in the FAAS or in the
corresponding tax declaration in twelve digits as follows:
00 00000 00000
(Year) (Municipality Code and (Real Property Count)
Barangay Code or Index Nos.)
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To notify property owner of the assessment, and the current real property
taxes due on his property/properties.
- Provincial Assessor
- City Assessor
- Municipal Assessor of MMA
Two copies shall be prepared by the assessor concerned, then the Assessor
shall file the duplicate and served the original to the declared owner.
• Frequency in preparing:
• Manner of Filing:
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(b) For Buildings and Other Structures – PIN of the building constructed on
a parcel of land, whether owned by the land owner or any person other
than the land owner, shall first bear the PIN of the land with a four-digit
number beginning with 1001, for the first building, added to it, followed
by 1002, 1003, etc, etc. for additional buildings constructed on the same
parcel of land.
00 0000 0000
Mun. Barangay Assessment Count
• The Municipality and the Barangay Index numbers – The first two
(2) digit numbers, representing the index number of the
municipality; and the next three (3) digit number representing the
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index number for barangays, are the same index numbers for
municipalities and barangays as may be determined based on the
procedures in assigning the index numbers the tax mapping
operation; and
• The Assessment Count – The last four (4) digit number represents
the assessment number assigned to every RPU starting with 0001
for the first RPU assessed and 0100 for the one hundred RPU
assessed and recorded per barangay, and so on.
0000 00000
Barangay Assessment Count
• The Barangay Index Number – The first four (4) – digit number
represents the index number of the barangay which as may be
determined based on the procedures is assigning barangay index
numbers for barangays in tax mapping operation; and
• The Assessment Count – The last five (5) digit number represents
the assessment number assigned to every RPU as in Item 4.3.1.5.1.
AA or A 00 0000 00000
General Revision Mun. Barangay Assessment Count
Indicator
• The Assessment Count – The last five (5) digit numbers shall
represent the similar assessment assigned to every RPU as in the
foregoing Items for Provinces and Cities.
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(b) Installation of the ARP Numbering System – The process of installing the ARP
Numbering System in a city or municipality is as follows:
(c) The Notice of Assessment Numbering System – The Notice of Assessment (NA)
also referred to as the Real Property Tax Order of Payment (RPTOP) are
numbered in such a way that no two RPTOPS issued shall bear identical
numbers. The manner of numbering RPTOPs is provided hereunder.
00000 ______________
Prov/Mun. RPTOP Count
where: The first three (3) digits of the five (5)-digit number represent the
index number of the province; the next two (2) digits thereof
represent the index number of the municipality; and the succeeding
numbers represent the RPTOP count. The first RPTOP is assigned
the number 1 and the second is assigned the number 2, and so on.
2. For all Cities and Municipalities within the Metropolitan Manila Area –
The Numbering structure of the RPTOP for cities and municipalities
within the MMA shall be as follows:
000 ____________________
City/Mun. RPTOP Count
where: The first three (3)-digit number represents the index number of a city
or a municipality within the MMA; The succeeding numbers shall
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represents the RPTOP count. The first RPTOP assigned the number
1 and the second is assigned the number 2, and so on.
The preparation of the Real Property Tax Order of Payment shall not be
required in assessor’s office in Cities or Municipalities which are already
computerized and the records of which are already accessible to the treasurer’s
office through LAN or local area networking.
The Codes which shall be used in the assessment records of the Assessor’s
Office are as follows:
A. Kind Code – The Kind Code refers to the code which shall be used for the
different kinds of real properties, viz:
Land L
Building and Other Structure B
Machinery M
B. Classification Code – The Classification Code refers to the code which shall be
used for the different classifications of real property on the basis of: (1) the
approved schedule of market values – for lands, buildings and other structures,
prepared in pursuance of the provisions of Section 2.1.1 of R.A. No. 7160; and
(2) the degree of utilization and/or the ordinance enacted by the sanggunians
concerned strictly in accordance with Section 20 of the said Act, in line with the
decision rendered by the Office of the President under OP Case No. 96-C-6424
dated March 29, 1996. The following classification codes shall be used:
Residential R
Agricultural A
Commercial C
Industrial I
Mineral M
Timberland/Forest T
Special:
Hospital SH
Cultural SC
Scientific SS
Local Water District SW
Corporation engaged in
Generation/distribution of electric
Power SG
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1 Subdivision SD
2 Consolidation CS
3 Discovery/New Declaration DC
7 Transfer/Segregation TR
8 Reclassification RC
D. Use Code – The Use Code refers to the code which shall be indicated to identify
the actual use of the property assessed and to determine the appropriate tax rate.
The following shall be the Use Code for real property assessment records
purposes:
Use Code
Residential AR
Commercial AC
Industrial AI
Agricultural AA
Mineral AM
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Timberland/Forest ATF
Hospital ASH
Cultural ASC
Scientific ASS
Local Water District ASLWD
Charitable ACH
Religious ARE
Recreational ARC
Educational AED
Cemetery ACT
Park ARK
Government:
National ANG
Provincial APG
City ACG
Municipality AMG
Barangay ABG
Corporation AGOCC
SECTION 5. – REPORTING
B. The report shall be prepared and certified correct by the Assessor concerned as
indicated in the footnote of said form.
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C. Submission of Reports
2. In the case of Cities, all reports shall be submitted to the BLGF Regional
Office copy furnished the BLGF Central Office on or before the 20th day of
the month immediately following the quarter reported on.
3. In the case of Provinces, all reports shall be submitted to the BLGF Regional
Office copy furnished the BLGF Central Office on or before the 20th day of
the month immediately following the quarter reported on. The Provincial
Treasurers or the Provincial Assessors shall submit a consolidated report of
different reports of the municipalities under their jurisdiction.
4. Cities and Municipalities within Metro Manila shall submit their reports on
or before the 30th day of the month following the quarter reported on, directly
to the BLGF Central Office, which shall prepare the required consolidated
reports.
5. The BLGF Regional Office shall submit a consolidated report of all the
LGUs within the region to the BLGF Central Office due on or before the 30th
day of the month immediately following the quarter reported on.
CHAPTER 4
Miscellaneous Provisions
Article III, Section 9 of the 1987 Constitution provides that ”Private Property
shall not be taken for public use without just compensation.” There are two (2)
Constitutional limitations on the power of eminent domain: (1) the purpose of the
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taking must be for public use, and (2) just compensation must be given to the private
owner.
a) Socialized housing;
k) Establishment of abattoirs.
The requisites for a valid exercise of the power of eminent domain by LGUs are:
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A. Definition of Terms
Just Compensation – described as the just and complete equivalent of the loss
which the owner of the thing expropriated has to suffer by reason of
the expropriation.
Market Value – price agreed upon by the buyer and seller in the open market in
the usual and ordinary course of legal trade and competition; the price
and value of the article established or shown by sale, public or
private, in the ordinary way of business; the fair value of property as
between one who desires to purchase and one who desires to sell; the
current price; the general or ordinary price for which property may be
sold in that locality.
Consequential benefits – the increase in the value of the other interests of the
owner that can be attributed to the new use to which his former
property will be put by the expropriating authority.
Executive Order No. 132, dated 22 December 1937, which since then has
undergone several amendments, authorized the creation of Appraisal Committees
which are tasked generally to determine the real or market value of the property to
be acquired. Referral to the Appraisal Committee is necessary only if negotiations
with the owner fail.
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1. Negotiated Sale
2.Expropriation
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1. to secure complete data such as, deed of sale, declared under oath or
affirmation, certification by the municipal assessor to ascertain the real or
market value of the property to be acquired for public use and to ascertain
the purchase price of the property to be acquired or of other property
similarly conditioned in the same vicinity.
3. Upon the completion of the investigation which shall not be longer than 60
days after the receipt of notification by the chairman, submit a report to the
provincial board, city or municipal council or National government officials
concerned with recommendation as to whether the property should be
purchased at the prices determined upon by the Committee and approved by
the owner or condemnation proceedings instituted.
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l. Feasibility Studies
Feasibility studies shall be undertaken for all major projects, and such studies
shall in addition to the usual technical, economical operational aspects, include the
social, political, cultural and environmental impact of the project.
2. Information Campaign
4. Project Cost/Funding
The estimated cost of a project shall have the following distinct components:
b. Investment cost which shall include the cost of detailed engineering, cost
of the property to be acquired and cost of construction and construction
supervision.
The programming and budgeting of funds for the pre-investment and pre-
construction phases, carried out in that order, shall be undertaken well in
advance of the scheduled commencement of construction. The
implementing agency/instrumentality concerned shall include in their
respective proposals for annual budgetary outlays provisions to finance
these preparatory activities and the Office of Budget and Management
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(DBM) shall consider such proposals in the light of the foregoing. In the
case of the infrastructure ministries, the necessary outlays for each phase
of the pre-implementation activities shall be made a distinct component
of the annual infrastructure program which shall be released by the DBM
as scheduled.
A. BACKGROUND
Zonal valuation for revenue tax purposes is a relatively new concept in the
Philippine taxation as the method was only made effective in January 1, 1988.
Before 1998, valuation of real properties for internal revenue taxes (capital
gains/income and transfer taxes) is based mainly on the valuation of real properties
as determined by the local government for its annual real property collection. But
because of the structural defect in the valuation procedure adopted by the local
government, wherein only a fraction of the market values of the properties (assessed
value) is used as a basis of valuation, the Philippine tax authorities, specially the
Bureau of Internal Revenue (BIR), the taxing arm of the national government, in its
desire to raise more revenues have turned its attention to the potentialities of a
correct land valuation as a major means of resources mobilization.
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(a) that consultation should be made with competent appraisers both from the
public and private sectors; and
(b) for purposes of computing any internal revenue tax, the value of the
property shall be either the Fair Market Value as determined by the
Commissioner of Internal Revenue (in this instance the zonal value) or
the fair market value as shown in the schedule of values of the Provincial
and City Assessors which ever is higher.
The BIR is divided into branches or district throughout the country. Every
district has a definite territorial boundary or jurisdiction where it can exercise its
authority. These branches or districts wee then adopted as the different zones for
valuation of real properties. Since these zones are in different locations, valuation
therefore differs from one zone to the other.
(1) To establish a realistic value of real properties which can more or less
approximate the present fair market value of real properties as a basis for computing
any internal revenue tax.
The philosophy behind tax zoning and in vesting special powers of authority
to revenue officers is to prevent the taxpayer from violating the laws rather than to
wait for the taxpayer to violate the law and prosecute them later when they can no
longer pay their taxes or when they can no longer be located at their place of
business. This approach therefore, is more of a preventive or persuasive approach
rather then punitive or remedial in nature.
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These committees were created by the Ministry of Order Nos. 20-86 and 21-
86 and were recently amended by Department Orders No. 10-92 AND 11-92. The
Executive Committee is composed of the Commissioner of Internal Revenue as
Chairman, Assistant Commissioner, (National Assessment Office) and
representatives from the Bureau of Local Government Finance, National Tax
Research Center, and two competent appraisers from the private sector as members.
Tapped as Consultants are representatives of the Housing and Land use Regulatory
Board (HLURB), National Mapping and Research Information Authority
(NAMRIA), Land Registration Authority (LRA), and National Housing Authority
(NHA). It is in charge with the function of studying, analyzing and approving zonal
valuations passed upon by the Technical Committee and to decide on difficult
questions or protest raised in the lower level committees.
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Under the national tax system of the Philippines, the transfer, exchange or
disposition of properties with or without consideration for so long as an economic
benefit is derived thereat will give rise to a taxable activity.
Basically, there are four types of taxes that are being collected from this kind
of an activity, namely:
1. Capital Gains Tax
2. Estate Tax
3. Donors Tax
4. Documentary Stamp Tax
For corporations, the actual gain on the sale or exchange of real property
irrespective of its classification or ordinary or capital asset is subject to ordinary
income tax.
For individuals, the actual gain on the sale or exchange of real properties
held as an ordinary asset is also subject to ordinary income. Ordinary assets as
defined in Sec. 39 (A) (1) of the NIRC refers to all those properties which are
primarily held for sale to customers in the ordinary course of trade or business. All
other real properties sold or exchanged by an individual not included in the
foregoing definition of ordinary assets are considered capital assets and as such,
subject to capital gains tax. Presently, the capital gains tax on real property transfers
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is deemed an income tax that is separately assessed on each transaction and required
to paid on the date the return presented therefor is filed by the person liable thereto.
Capital gain is a presumed outcome of every real property transaction and the tax is
imposed regardless of whether the property owner incurred a loss or income in the
said transaction.
The tax on ordinary gain or capital gain is based on the gross selling price or
fair market value (zonal) of the property sold whichever is higher.
Section 20, par. (c), of the Local Government Code provides that “the local
government units shall, in conformity with exiting laws, continue to prepare their
respective comprehensive land use plans enacted through zoning ordinances which
shall be the primary and dominant bases for the future use of land resources:
Provided, that the requirements for food production, human settlement, and
industrial expansion shall be taken into consideration in the preparation of such
plans”.
(b) The comprehensive land use plan shall be the primary and
dominant basis for future use of local resources and for reclassification
of agricultural lands.
(c) The Sangguniang Panlalawigan shall review the
comprehensive land use plans and zoning ordinances of component
cities and municipalities and shall adopt comprehensive provincial land
use plan, primarily based on the revised plan.”
A. Objectives:
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MPDO will submit the proposed land use plan for the review and approval
by the local Sanggunian
- Reviews/Approves the land use plan submitted by the PPDO and CPDO
- NEDA will be the lead agency
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for different purposes and includes the process and the criteria
employed in the determination of the land use.
Land Use – refers to the manner of utilization of land, including its allocation,
development and management.
Land Use Conversion – refers to the act or process of changing the current use
of a piece of agricultural land into some other use as approved by
DAR.
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Watershed – refers to a catchment area or drainage basin from which the waters
of a stream or stream system are drawn.
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concerned, together with the National Land Use Policy pursuant to R. A. No. 6657
and E.O. No. 129-A.
This shall cover all private agricultural lands as defined herein regardless of
tenurial arrangement and commodity produced. It shall also include all untitled
agricultural lands and agricultural lands reclassified by LGUs into non-agricultural uses
after June 15, 1988, pursuant to M. C. No. 54, Series of 1993 of the Office of the
President and those proposed to be used for livestock, poultry and swine-raising.
# Conversion may be allowed if at the time of the application, the lands are
reclassified as commercial, industrial, residential or other non-agricultural in
the new or revised town plans promulgated by the local government unit and
approved by the HLURB or by the Sangguniang Panlalawigan (SP) after
June 15, 1988 in accordance with Section 20 of R. A. 7160, as implemented
by M. C. No. 54, and E. O. No. 72, Series of 1993 of the Office of the
President.
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" Protected areas designated under the National Integrated Protected Areas
(NIPAS), including watershed and recharged areas of aquifers, as determined by
the Department of Environment and Natural Resources (DENR, pursuant to R.A.
7586 (1992).
" All irrigated lands, as delineated by the DA and/or the National Irrigation
Authority (NIA) under the Network of Protected Areas for Agriculture where
water is available to support rice and other crop production, and all irrigated
lands where water is not available for rice and other crop production but are
within areas programmed for irrigation facility rehabilitation by the DA and the
NIA, pursuant to Presidential Administrative Order No. 20 (1992):
" For this purpose, the Network of Protected Areas for Agriculture (as of
1991), as determined by the DA and/or NIA shall serve as guide in determining
non-negotiable areas.
" All irrigable lands already covered by irrigation project with firm funding
commitments, as delineated by the DA and/or NIA; and
" All agricultural lands with irrigation facilities operated by private organization.
" In all cases, applicants for conversion involving lands protected from and non-
negotiable for conversion shall not be given due course.
- Highlands, or areas located in elevations of 500 meters or above and have the
potential for growing semi-temperate and usually high value crops.
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RPTA was designed to develop real property tax system to its fullest
potential as a local revenue source with the following specific objectives:
The RPTA Project will provide technical and financial assistance and
incentives to the LGUs participating in the project under the Project Cost Sharing
Scheme indicated under 5.4.6 of this Chapter.
1. Tax Mapping
2. Records Conversion
3. Tax Collection
4. Data Computerization
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1) National Level –
2) Regional Level -
3) Provincial/City Level –
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• Functions:
4) Municipal Level –
• Functions:
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In case of a City:
National Government
City 60% 70% 80%
LGU Equity
City 40% 30% 20%
TOTAL 100% 100% 100%
==== ==== ====
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4. Accessible to transportation
(a) SEC. 226. Local Board of Assessment Appeals.- Any owner or person
having legal interest in the property who is not satisfied with the action of the
provincial, city or municipal assessor in the assessment of his property may, within
sixty (60) days from the date of receipt of the written notice of assessment, appeal to
the Board of Assessment Appeals of the province or city by filing a petition under
oath in the form prescribed for the purpose, together with copies of the tax
declarations and such affidavits or documents submitted in support of the appeal.
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(a) No protest shall be entertained unless the taxpayer first pays the tax.
There shall be annotated on the tax receipts the words “paid under protest”. The
protest in writing must be within thirty (30) days from payment of the tax to the
provincial, city treasurer or municipal treasurer, in the case of a municipality within
Metropolitan Manila -Area, who shall decide the protest within sixty (60) days from
receipt.
(b) The tax or a portion thereof paid under protest shall be held in trust
by the treasurer concerned.
(c) In the event that the protest is finally decided in favor of the
taxpayer, the amount or portion of the tax protested shall be refunded to the
protestant, or applied as tax credit against his existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of the sixty-
day period prescribed in subparagraph (a), the taxpayer may avail of the remedies as
provided for in Chapter 3, Title Two, Book II of this code.
1. Section 226 is under Chapter III, titled Assessment Appeals while Section
252 is under Chapter 6, titled Collection of Real Property Tax of R.A. 7160 such
that the period within which to appeal must strictly conform with Section 226, R.A.
7160.
2. If the property owner made his appeal on the basis Section 252, R.A.
7160, his protest shall be acted upon if the reglamentary period provided for under
Section 226 has not yet prescribed.
3. Section 252 without reference to the period provided for under Section
226 will render the latter provision negatory for it will give the taxpayer the right to
appeal beyond the statutory period of appeal.
b. Lands shall be assessed on the basis of the current and fair market value
of the street or place of location. The assignment of the assessment level serves the
purpose of classification of the lot based on the actual use or predominant use of the
land in the area if vacant, and for the purpose of applying the current tax rate based
on classification.
c. If the property is exempt on the tax day (January 1), then it is exempt for
the whole year even though it becomes taxable after the tax day. If the property is
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taxable on the tax day (January 1) then it is taxable for the whole year even though it
becomes exempt after the tax day.
d. Real properties declared for the first time shall be assessed on the basis of
the approved schedule of values during the effective date of the commencement of
tax liability and not during the time the assessment was made specially when back
taxes are imposed on the property. If general revision takes place after the initial
assessment, then the assessment should be correspondingly revised to reflect the
new schedules of values.
This provision shall apply to all existing assessments of real properties which
taxes by operation of law should be paid annually such that in cases of change of
ownership, location, subdivided or consolidated properties, the effective date of the
commencement of taxes shall be the 1st day of January of succeeding year. Provided
that all real property taxes for the current year contrary opinion on this provision,
will run counter to the provision of Section 203 and 222 of R.A. 7160 which provide
as follows:
If such taxes are paid on or before the end of the quarter following the date
the notice of assessment was received by the owner or his representative, no interest
for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to
an interest at the rate of two percent (2%) per month or a fraction thereof from the
date of the receipt of the assessment until such taxes are fully paid.
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This Section does not authorize the local assessor to grant depreciation
allowance to machinery and equipment. The grant of depreciation to this property is
dependent upon the determination cost which the local assessor is mandated to
determine as a condition precedent to the grant of depreciation. Further,
accumulated depreciation is already and is previously imposed upon machinery and
equipment during general revision through the mandatory use and application of the
formula for the computation of its current and fair market value.
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All provinces, cities and municipalities can avail of the loan from the P50-M
Assessment Loan Revolving Fund to finance any of the following
programs/projects:
1st Release – 50% of the approved loan to be used primarily for the
purchase and acquisition of supplies and materials,
furniture and equipment, base maps and other expenses
necessary in the initial stage of project implementation.
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Requirements:
The terms and conditions of the loan are defined in the Contract of
Loan executed by and between the DOF and the Provincial Governor/City
Mayor/Municipal Mayor. A sample of the Contract is shown hereunder:
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CONTRACT OF LOAN
-WITNESSETH-
That the PARTY OF THE FIRST PARTY having accomplished the documents and
information required under Section 4.5.3 of Chapter 4 of this Manual on Real Property
Assessment and Administration.
That the PARTY OF THE FIRSYT PARTY having submitted to the PARTY OF
THE SECOND PARTY all the required supporting papers incident to the application of
loan.
1. That the proceed of the loan shall be expended on the basis of the estimated costs of the
project as itemized in the Project Study and Action Plan submitted by the
borrower…………………………….. which Plan is hereby made an integral part hereof
as Annex “A”.
2. That the initial release of the proceeds of the loan shall be approximately50% hereof, the
date of release and the amount thereof shall be scheduled and determined by the
Department of Finance.
3. That the prosecution of the project shall be started not later than sixty days from the date
of receipt of the amount covering the first release of the loan.
5. That the second and last releases of the portions of the loan, shall be subject to a prior
submission of “progress report” to the Executive Director, Bureau of Local Government
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Finance, copy furnished the Accounting Division, both of the Department of Finance,
duly verified by the representatives of the BLGF-DOF who personally inspected the
project;
6. That the period of repayment of the annual proceeds of the loans shall be for five (5)
years in equal annual amortization, to commence on or before the end of December of
the year following the year of completion of the project until the same have been fully
paid and liquidated; Provided, however, That if the project is not finished even after the
full release of the loan, the repayment shall commence on or before the end of
December of the year following the year of the last release of the loan.
7. That the completion of the project, for purposes of determining the running of the period
of repayment, shall be certified by the BLGF-DOF representative who inspected and
evaluated the project;
8. That in case the borrower ______________________ concerned fails to pay the annual
amortization when due, the same shall automatically be deducted from its share from the
internal revenue allotment of the borrower _______________ ______________, which
allotment is hereby made as a guaranty of the repayment of whatever loan released;
9. That the proceeds of the loan, or any portion thereof, shall in no case be used,
temporarily or otherwise, for any other purpose by the borrower
_________________________ except for the financing and implementation of the
project described hereunder:
That the PARTY OF THE SECOND PARTY reserves the right to rescind this
contract whenever public interest so demands.
IN WITNESS WHEREOF, the parties have hereunto set their hands at Manila,
Philippines, on this ………….. day of ………………………, 2000.
……………………………. ………………………………
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ACKNOWLEDGMENT
BEFORE ME, a Notary Public for and in the City of Manila, personally appeared
……………………………………….. representing the PARTY OF THE FIRST PARTY
with Community Tax Certificate No. ……………….., issued on ……………………….., at
……………………………….. and………………………………….. representing the
PARTY OF THE SECOND PARTY, with Community Tax Certificate No……………….,
issued on ………………………. At ……………………………., known to me and to me
known to be the same persons who executed the foregoing document denominated as a
“Contract of Loan” and who acknowledged having executed the same of their own free will
and deed.
The fore going document consisting of three (3) pages including this page wherein
the acknowledgment appears are duly signed by the parties and their instrumental witnesses
on the left hand margin thereof.
IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal in the City
of Manila, Philippines, this………… day of ………………………, 2000.
NOTARY PUBLIC
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Glossary of Terms
1. Tax Mapping – is the primary concern of the Municipal Assessor and City Assessor
and the first component undertaken in the installation of the RPTA Project which
involves physical survey of land parcels for the following purposes:
2. Assessment Operations – is a means of assigning on every parcel of land and upon all
the taxable improvements on such lands, a current and fair market value, an assessment
level to be able to arrive at an assessed value for each land and each improvement.
4. Real Property Tax Collection Operation – involves collection of all real property
taxes and penalties due and payable to the LGU through the positive and total
enforcement of tax laws and their penal provisions.
6. Information, Education Campaign (IEC) Program – is the RPTA Information kit for
use of the LGU officials, assessors and treasurers in the RPTA Project.
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CHAPTER 5
PENAL PROVISIONS
The Local Government Code provides penalties for violations of its provisions. The
following provisions are applicable to local officials involved in assessment operations:
1. Any local official and any person or persons dealing with him who violate the
prohibitions provided in Section 89 of Book I of LGC, shall be punished with
imprisonment for six (6) months and one (1) day to six (6) years, or a fine of not
less than Three Thousand Pesos (P3, 000.00) nor more than Ten Thousand Pesos
(P10, 000.00), or both such imprisonment and fine, at the discretion of the court.
2. Section 89 of the Code enumerates the following prohibited business and pecuniary
interest:
1) Engaging in any business transaction with the local government unit in which he
is an official or employee or over which he has the power of supervision, or with
any of its authorized bards, officials, agents or attorneys, whereby money is to be
paid, or property of any other thing of value is to be transferred, directly or
indirectly, out of the resources o the local government unit to such person of
firm;
3) Purchasing any real estate or other property forfeited in favor of such local
government unit for unpaid taxes or assessment, or by virtue of a legal process at
the instance of the said local government unit;
4) Being a surety for any person contracting or doing business with the local
government unit for which a surety is required; and
5) Possessing or using any public property of the local government unit for private
purpose.”
3. Any officer charged with the duty of assessing real property who willfully fails
to assess, or who intentionally omits from the assessment or tax roll any real
property which he knows to be taxable, or who willfully or negligently
underassesses any real property, or who intentionally violates or fails to perform
any duty imposed upon him by law relating to the assessment of taxable real
property shall, upon conviction, be punished by a fine of not less than One
Thousand Pesos (P1, 000.00) nor more than Five Thousand Pesos (P5,000.00),
or by imprisonment of not less than one (1) month nor more than six (6) months,
or both such fine and imprisonment, at the discretion of the court.
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The same penalty shall be imposed upon any officer charged with the
duty of collecting the tax due on real property who willfully or negligently fails
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 willfully fails to discharge such duties shall, upon
conviction be punished by a fine of not less than Five Hundred Pesos (P500.00)
nor more than Five Thousand Pesos (P5, 000.00) or imprisonment of not less
than one (1) month nor more than six (6) months, or both such fine and
imprisonment, at the discretion of the court.”(Sec. 517, RA 7160)
CHAPTER 6
REPEALING AND EFFECTIVITY CLAUSE
Section 1. Repealing Clause. – All rules, regulations and orders inconsistent with
the provisions hereof are hereby repealed or modified accordingly.
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