Presidential Decree No. 1383 (PD 1383) — AMENDING SECTIONS THREE, PARAGRAPH (m); SIX; TWENTY; EIGHTY-EIGHT; NINETY AND ONE HUNDRED FOUR OF PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED SIXTY FOUR, AS AMENDED, OTHERWISE KNOWN AS THE REAL PROPERTY TAX CODE.
WHEREAS, in the implementation of the Real Property Tax Code
enacted under P.D. 464, as amended, certain common problems and difficulties are
encountered in the proper classification, appraisal, and assessment of real
property, particularly building, other improvements, and machinery;
WHEREAS, in order to enhance the establishment of an updated
and more responsive system of valuation for taxation purposes, it has become
necessary to provide more realistic levels of assessment for the various types
of real property;
WHEREAS, there is a continuous need to upgrade and
professionalize the local government assessment service to promote higher
standards of performance efficiency;
WHEREAS, in order to meet the requirements of prevailing
conditions, it is imperative to amend the pertinent provisions of the Real
Property Tax Code.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution, do hereby
decree and order to form part of the laws of the land, the following:
SECTION 1. Section 3, paragraph (m), of Presidential Decree
No. 464 is hereby amended to read as follows:
"x x x
"(m) Machinery - shall embrace machines, equipment, mechanical contrivances,
instruments, appliances and apparatus attached to the real estate. It shall
include the physical facilities available for production, as well as the
installations and appurtenant service facilities, together with all those not
permanently attached to the real estate but are actually, directly and
essentially used to meet the needs of the particular industry, business, or
works, which by their very nature and purpose are designed for, or essential to
manufacturing, commercial, mining, industrial or agricultural
purposes."
SEC. 2. There is hereby inserted after Section 6 of
Presidential Decree No. 464 a new section to be designated as Section 6-A, which
shall read as follows:
"SEC. 6-A. It shall also be the duty of any person or his
authorized representative acquiring at any time real property in any
municipality or city or making any improvement on real property, to prepare, or
cause to be prepared, and file with the provincial, city, or municipal assessor,
a sworn statement declaring the true value of subject property, within sixty
(60) days after the acquisition of such property, or upon completion or
occupancy of the improvement, whichever dated comes earlier."
SEC. 3. To provide a reasonable basis for the assessment of
real property for taxation purposes, Section 20, paragraph (c) of Presidential
Decree No. 464 is hereby amended to read as follows:
"SEC. 20. Assessment Level. The assessment levels
to be applied to the current market values of real property for taxation
purposes, shall be as follows:
On Lands. - x x x
On Mineral Lands. - x x x
On Buildings, Machineries and Other Improvements. - The assessment levels
shall be as follows:
For buildings and other improvements:
Assessment Levels
MARKET VALUE
Presidential
Commercial/Industrial
Agricultural
P30,000 or less
15%
50%
40%
More than P30,000 but
not exceeding P50,000
20%
55%
45%
More than P50,000 but not
exceeding P75,000
25%
60%
50%
More than P75,000 but not
exceeding P125,000
35%
65%
55%
More than P125,00 but not
exceeding P175,000
45%
70%
60%
More than P175,000 but not
exceeding P250,000
55%
75%
65%
More than P250,000 but not
exceeding P350,000
65%
80%
70%
More than P350,000 but not
exceeding P500,000
75%
80%
75%
More than P500,000
80%
80%
80%
For machineries:
ACTUAL USE
ASSESSMENT LEVEL
Agricultural
60%
Residential
70%
Commercial
80%
Industrial
80%
Special Class. - x x x."
SEC. 4. Section 40, paragraph (e), of Presidential Decree
No. 464, is hereby amended to read as follows:
"(a) x x x
(b) x x x
(c) x x x
(d) x x x
(e) Land acquired by grant, purchase of lease from the public domain for
conversion into dairy farms for a period of five years from the time of such
conversion; and machinery of a pioneer and preferred industry as certified by
the Board of Investments used or operated for industrial, agricultural,
manufacturing or mining purposes, during the first three years of the operation
of the machinery."
SEC. 5. The third and fifth paragraphs of Section 88 of
Presidential Decree No. 464 are hereby amended to read as follows:
"SEC. 88. Provincial and City Assessor, his Assistant
and Deputy and their appointments.
x x x.
x x x.
Upon the approval of this Code, no person shall be appointed to the position
of provincial or city assessor or assistant provincial or city assessor, unless
he possesses a degree in law, civil, mechanical, industrial, agricultural or
geodetic engineering, architecture; forestry; agriculture; commerce or business
administration; or a bachelor's degree in education, arts and sciences, major in
mathematics or statistics; or any related courses; has qualified in an
appropriate Civil Service Examination and has acquired at least five years
experience, in real property assessment work, or at least three years in the
case of assistant provincial or city assessor. For every year lacking in
educational attainment, a two-year experience in real property assessment work
in addition to the foregoing experience requirement may be substituted;
Provided, However, That he shall have completed at least two years of
any of the college courses aforementioned.
x x x x x x
The other employees in the assessment office, whose number and salaries shall
be fixed by the Sangguniang Panglalawigan or Panglungsod shall be appointed by
the Provincial Governor or City Mayor upon recommendation of the provincial or
city assessor, in confirmity with the provisions of this Section and the Civil
Service Law: Provided, That there shall be in each provincial or city
assessment office one Chief Deputy Assessor and at least three deputy assessors
to perform full-time field assessment work. Any person with at least two years
college education in any of the courses required for provincial or city assessor
and who possesses an appropriate Civil Service eligibility shall be deemed
qualified for appointment as Chief Deputy Assessor if he has at least three
years' experience, both in real property assessment work. The Chief Deputy
assessor shall be appointed by the Provincial Governor or City Mayor upon
recommendation of the Provincial or City Assessor, as the case may be, in
conformity with the provisions of this Section and the Civil Service Law,
subject to the approval of the Secretary of Finance."
SEC. 6. A new Section is hereby inserted after Section 90 of
Presidential Decree No. 464, hereby denominated as Section 90-A which shall read
as follows:
"SEC. 90-A (a) The position title of Municipal Deputy
Assessor is hereby changed to Deputy Provincial and Municipal Assessor.
Municipal Deputy Assessors, who, at the time of the approval of this Decree,
are holding permanent appointments shall continue in such capacity without the
necessity of issuance of new appointments; Provided, However, That they
shall henceforth be known as Deputy Provincial and Municipal Assessors.
(b) Beginning January 1, 1979, the position of Deputy Provincial and
Municipal Assessor shall be created in all municipalities.
No new appointment for Ex-Officio Deputy Assessor shall be issued beginning
January 1, 1979; Provided, However, That those holding appointments as
such Ex-Officio Deputy Assessor at the time of the approval of this Decree may
continue in Office as such until the appointment of a regular Deputy Provincial
and Municipal Assessor, or upon expiration of the twelve-month period covered by
his present appointment, whichever comes earlier.
(c) Any person with a bachelor's degree in law, civil, mechanical,
industrial, agricultural or geodetic engineering; architecture; forestry;
agriculture; commerce or business administration, or a bachelor's degree in
education, arts and sciences, major in mathematics or statistics; or any other
related college course; has qualified in an appropriate civil service
examination and has acquired at least two years experience in real property
assessment work, shall be deemed qualified for appointment as Deputy-Provincial
and Municipal assessor. A two-year experience in real property assessment work
may be substituted for every year lacking in the abovementioned educational
requirement; Provided, However, That the appointee shall have completed
at least two years of any of the college courses abovementioned.
(d) A municipality may create the position of Assistant Municipal Assessor,
whose salary shall be equal to the rate authorized for the Assistant Municipal
Treasurer of the same municipality, payable from the municipal funds. The
Assistant Municipal Assessor upon recommendation of the Deputy Provincial and
Municipal Assessor shall be appointed by the Provincial Assessor upon
recommendation of the Deputy Provincial and Municipal Assessor, subject to the
approval of the Secretary of Finance. In the municipalitie of Metropolitan
Manila, the Assistant Municipal Assessor shall be appointed by the Commissioner
for Finance of the Metropolitan Manila Commission upon recommendation of the
Municipal Assessor and with the approval of the Secretary of Finance. The
educational requirements prescribed for the position of Deputy Provincial and
Municipal Assessor shall likewise apply to the Assistant Municipal Assessor,
provided, however, that he possesses an appropriate civil service
eligibility and at least one year experience in real property assessment work.
For every year lacking in the aforementioned educational requirements; a
two-year experience in real property assessment work may be substituted;
Provided, That the appointee shall have completed at least two years of
any of the college courses aforementioned."
SEC. 7. Section 104 of Presidential Decree No. 464 is hereby
amended to read as follows:
"SEC. 104. Failure to file Declaration and Other
Prohibited Acts. Any person required under the provisions of this Code to
declare real property whether taxable or exempt, who fails to file such
declaration under the terms and conditions prescribed therefor, shall upon
conviction be punished by a fine of not more than one thousand pesos or by
imprisonment of not more than one year, or both, at the discretion of the Court;
Provided, However, That if a violator shall voluntarily agree to pay a
fine without necessity of filing a case in court, the Provincial, City or
Municipal Assessor shall recommend the collection of a fine by the Provincial,
City or Municipal Treasurer in accordance with the rates to be fixed by the
Secretary of Finance on the basis of the assessed value of subject property. The
funds herein collected shall be appropriated for the operation of the Office of
the Provincial, City or Municipal Assessor, as the case may
be."
SEC. 8. Repealing Clause. All laws, decrees,
orders, rules and regulations which are contrary to or inconsistent with the
provisions of this Decree are hereby repealed or modified accordingly.
SEC. 9. Implementing Rules. The Secretary of
Finance shall issue the rules and regulations for the proper implementation of
this Decree.
SEC. 10. Effectivity. Except as otherwise herein
provided for, this Decree shall take effect immediately.
Done in the City of Manila, this 25th day of May, in the year of Our Lord,
nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JACOBO C. CLAVE
Presidential Executive
Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
