What is Assessor?

• A local government official who determines the value of a

property for local real estate taxation purposes.

• Assessor trained to determine the fair market value of

property.

• The Figures that they derived will be used to calculate future

property taxes.

• The assessor estimates the value of a real property within the

Province, Cities and/or Municipalities.
Historical Background of Real Property Taxation in the Philippines.

 During the Encomienda System of the Spanish Era, there was no real
property tax in the Philippines.

 It was during American Regime that real property taxation in the

Philippines was formally instituted.

In 1901, Act No. 82 and 83 of the Philippine Commission organized

by Municipal and Provincial government authorized to levy taxes on
real estate properties.

 Under the new society on May 20, 1974, President Ferdinand E.

Marcos initiated reforms in real estate tax administration under PD No
464 entitled “ The Real Property Tax Code” the law that governs RPT
administration in the Philippines.
Historical Background of Real Property Taxation in the Philippines.

 Under Sec. 8 of Batas Pambansa Blg. 337 dtd. February 10, 1983, the
Real Property Tax Code (PD 464) was reorganized under the Local
Government Code of 1983.

PD 464, as amended , continued to be the governing laws relative to the

appraisal and assessment of the real property for taxation purposes until
the year 1991.

 Title II, Book II of the Local Government Code (R.A. No. 7160) has
integrated the law on real property taxation and repealed PD 464.

Significant changes in the legal framework, concepts and procedures

embodied in the local government code.
The Role of the Local Assessor

 The local assessor shall take charge of the discovery, classification,

appraisal, assessment and valuation of all the real estate 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 value of the different classes of real property
within his territory.
REAL PROPERTY TAX

What is Real Property Tax?

It is Tax imposed by the LGU on all types of real properties including

lands, buildings, improvements, and machinery

 Rates of Levy:

a) Province: not exceeding 1/% of the assessed value of real property;

and

b) City of municipality within the Metro Manila – not exceeding 2% of

the assessed value of real property.

 Additional Levy on Real Property for the Special Education Fund

(SEF).

a) 1% on assessed value of RPT.

REAL PROPERTY TAX

Additional Ad Valorem Tax on Idle Lands:

a) Not exceeding 5% of the assessed value

Idle Lands, Coverage

a) Agricultural lands more than one (1) hectare in area, one-half (1/2)
of which remain uncultivated.

b) Other lands more than one thousand (1,000) square meters in area
one-half (1/2) of which remain unutilized or unimproved.
REAL PROPERTY TAX

Exceptions from Real Property Tax

a) Real Property owned by government;

b) Charitable institutions, church, convents appurtenant thereto,

mosque, non-profit or religious cemeteries and all lands, buildings, and
improvements actually used for religious, charitable or educational
purposes;

c) All machineries and equipment used by local water districts and

government-owned or controlled corporations engaged in supply and
distribution of water and/or generation and transmission of electric
power;

d) Property owned by duly registered cooperatives; and

e) Machinery and equipment used for pollution control and

environmental protection.
COLLECTION OF REAL PROPERTY TAX

Collection of Tax

Responsibility of the city or municipal treasurer; may deputize the

barangay treasurer provided, that the barangay treasurer is properly
bonded.

Payment of Property Taxes in Instalments

Four (4) Equal Instalments:

 March 31
 June 30
 September 30
 December 31
COLLECTION OF REAL PROPERTY TAX

 Tax Discount for Advanced Prompt Payment.

Sangunian may grant, not to exceed 20% of the annual tax due.

 Payment Under Protest

Protest in writing must be filed within 30 days from payment of the tax
to the provincial, city or municipal treasurer who shall decide the protest
within sixty (60) days from receipt.

 Interest on Unpaid Real Property Tax

Two (2%) per month, maximum of 36 months.

COLLECTION OF REAL PROPERTY TAX

 Prescription on Unpaid Real Property Tax:

 5 Years – In normal condition or circumstances

 10 Years – In case of fraud or intent to evade payment.

Period of prescription suspended if :

1. The local treasurer is legally prevented from collecting the tax;

2. The owner of the property request reinvestigation and executes a

waiver in;

3. The owner of the property is out of the country or cannot be located.

QUIZ:

1. Ms. Rem owned a residential house used for business and assessed
as commercial. What will be the assessed value of the land if the fair
market value is P4,500,000.00?

2. How much is the Real Property Tax (RPT)?

3. How much is the RPT is the property is assessed as Industrial?

4. How much is the RPT if the property is assessed as Residential?

5. The owner failed to pay his basic real estate tax of P10,000.00 in
2013 and P5,000.00 SEF. How much will be the total interest to be paid
for the unpaid basic real property for 5 years delinquency?

6. If the property above (prob.# 5) is located in Davao City and assessed

as Agricultural. What will be the property’s Fair Market Value (FMV)?
 Local Assessment Personnel Administration
( Appointment of Provincial, City and Municipal Assessor)

• Manner of Appointment
The local assessor shall be appointed by the local chief executive
concerned, subject to the civil service law, rules and regulation

• Nature of Position
The appointment of an assessor shall be mandatory for all provincial,
city and municipal governments.

• Qualification Requirement

No person shall be appointed assessor unless he is a citizen of the

Philippines,
 Local Assessment Personnel Administration
( Appointment of Provincial, City and Municipal Assessor)

• Qualification Requirement

- No person shall be appointed assessor unless he is a citizen of the

Philippines,
- A resident of the local government unit concerned.
- Of good Moral Character
- Holder of a college degree preferably in civil or mechanical
engineering, law, commerce or any other related course from a
recognized college or university and first civil service eligible or its
equivalent.
- He must have acquired experience in real property assessment work or
any related filed for at least five (5) years in case of the city or
provincial asssesor, and three (3) years in the case of the municipal
assessor.
 Local Assessment Personnel Administration
( Appointment of Provincial, City and Municipal Assessor)

• Qualification Requirement

- Experience in related field means actual work experience acquired

from Bureau of Local Government Finance and its Regional Office.

- Actual experience in the appraisal/valuation of real property acquired

in the private practice, shall be considered functional experience in
the assessment service.

- No person shall be appointed or designated local assessor if he does

not possess the minimum requirement for appointment as provided in
the Local Government Code.
 Appointment of Provincial, City and Municipal Assistant
Assessor

 Same as the Assessor)

DUTIES, FUNCTIONS AND RESPONSIBILITIES OF LOCAL
ASSESOR

 Assessor are encouraged to study and adhere to the Philippine

Valuation Standards in establishing basis for appraisal and
assessment of real estate properties.

 The standards have been prepared to assist government assessors and

appraisers in the valuation of properties for taxation purposes.

 Assessors and Appraisers are responsible for insuring that real

property appraisal particularly for tax purpose is accurate so that the
tax burden will be distributed equitably.
DUTIES, FUNCTIONS AND RESPONSIBILITIES OF LOCAL
ASSESOR
Major Functions of Assessor:

 Establish a systematic method of assessment base on LGU manual,

rules and regulations issued by Sec. of Finance

 Install and maintain a real property identification system in

conformity with standards

 Prepare, Install and maintain a system of tax mapping showing

graphically all properties subject to assessment in the Province, city
or municipality and gather all necessary data concerning the same.

 Undertake a general revision of real property assessment every three

(3) years
DUTIES, FUNCTIONS AND RESPONSIBILITIES OF LOCAL
ASSESOR
Major Functions of Assessor:

 Make frequent physical surveys to check and determine whether all

real properties within the locality are properly listed in the
assessment rolls.

 Appraise all real properties in accordance with the approved or duly

enacted schedule of Fair Market Values pursuant to RA no. 7160.

 Prepare Filed Appraisal and Assessment Sheets (FAAS’s) and issue

TAX Declarations for all newly discovered properties and
transactions involving transfers of ownership.

 Enforce uniformity the exemptions from real property tax as

prescribed by Provincial, City or municipality assessor’s manual
DUTIES, FUNCTIONS AND RESPONSIBILITIES OF LOCAL
ASSESOR
Major Functions of Assessor:

 Apply the appropriate assessment levels prescribed by the

Sanggunian concerned;

 Apply the appropriate assessment levels prescribed by the

Sanggunian concerned; (TRACIM)

 Keep a record of all transfers, leases and mortgages of real property,

rentals, insurance, cost od construction and other improvements on
the land and other data needed in the preparation of schedule of fair
market values as well as for other assessment purposes;

 Decrease the assessment where the property previously assessed has

suffered a substantial loss of value by reason of physical and
economic obsolescence
DUTIES, FUNCTIONS AND RESPONSIBILITIES OF LOCAL
ASSESOR
Major Functions of Assessor:

 Cancel assessment in case of duplication of assessment on one

property.

 Eliminate from the assessment roll of taxable properties such

properties which have been destroyed or have suffered permanent
loss of value by reason of storm, flood, fire or other calamity; or
being exempt properties that have been improperly included in the
same.

 Increase the assessment where improvement and repairs have been

made upon the property subsequent to the last assessment.
Next topic:

Supervision Over Local Assessor