Declaration of Real Property by Owner or Administrator.
SEC. 6. Declaration of Real Property by Owner or
Administrator.—It shall be the duty of all persons, natural or
juridical, owning or administering real property, including the
improvements therein, within a city or municipality, or their duly
authorized representative, to prepare, or cause to be prepared, and file
with the provincial or city assessor, a sworn statement declaring the
true value of their property, whether previously declared or undeclared,
taxable or exempt, which shall be the current and fair market value of
the property, as determined by the declarant. Such declaration shall
contain a description of the property sufficient in detail to enable the
assessor or his deputy to identify the same for assessment purposes.
The sworn declaration of real property herein referred to shall
be filed with the assessor concerned once every five years during the
period from January first to June thirtieth, commencing with the
calendar year 1977, unless required earlier by the Secretary of Finance.
Declaration of Real Property by the Assessor.
SEC. 7. Declaration of Real Property by the Assessor.—
When any person, natural or juridical, by whom real property is required
to be declared under Section six hereof refuses or fails for any reason
to make such declaration within the time prescribed, the provincial or
city assessor shall himself declare the property in the name of the
defaulting owner, if known or against an unknown owner, as the case may
be, and shall assess the property for taxation in accordance with the
provisions of this Code. No oath shall be required of a declaration thus
made by the provincial or city assessor.
Listing of Real Property in the Assessment Rolls.
SEC. 8. Listing of Real Property in the Assessment
Rolls.—In every province and city, there shall be prepared and
maintained by the provincial or city assessor an assessment roil wherein
shall be listed all real property, whether taxable or exempt, located
within the province or city. Real property shall be listed and valued in
the name of the owner or administrator, or anyone having legal interest
in the property.
The undivided real property of a deceased person may be listed
and valued in the name of the estate, or of the heirs and devisee
without designating them individually; an undivided real property other
than that owned by a deceased may be listed and valued in the name of
one or more co-owners: Provided, however, That such heir,
devisee or co-owner shall be liable severally for all obligations
imposed by this Code and for the payment of the real property tax with
respect to the undivided property.
The real property of a
corporation, partnership, or association shall be entered and assessed
in the same manner as that of an individual.
Real property owned
by the Republic of the Philippines, its political subdivisions and any
government-owned corporation so exempt by its charter, the beneficial
use of which has been granted, for consideration or otherwise, to a
taxable person, shall be listed for purposes of taxation in the name of
the grantee, or of the public entity if such property has been acquired
for resale or lease.
The assessment roll shall be prepared
in accordance with rules and regulations prescribed by the Secretary of
Finance.
Proof of Exemption, of Real Property from Taxation.
SEC. 9. Proof of Exemption, of Real Property
from Taxation.—Every person by or for whom real property is
declared, who shall claim tax exemption for such property under this
Code shall file with the provincial or city assessor within thirty clays
from the date of the declaration of real property sufficient
documentary evidence in support of such claim, including corporate
charters, titles or ownership, articles of incorporation, by-laws,
contracts, affidavits and certifications and mortgage deeds, and similar
documents.
If the required evidence is not submitted within the
period herein prescribed, the property shall be listed as taxable in the
assessment roll. However, if it shall be proven to be tax exempt the
same shall be dropped from the roll of taxable properties.
SEC.
10. Real Property Identification System.—All declarations of
real property made under the provisions of this Code shall be kept and
filed under a uniform identification system to be established by the
provincial or city assessors in accordance with the rules and
regulations to be prescribed by the Secretary of Finance.
SEC.
11. Notification of Transfer of Real Property Ownership.—Any
person who shall transfer real property ownership to another shall
notify the assessor of the province or city wherein the property is
situated within sixty days from the date of such transfer. The
notification shall include the particulars of the transfer, the
description of the property alienated, and the name and address
of the transferee.
Duty of Register of Deeds to Apprise Assessor of Real Property Listed in Registry.
SEC. 12. Duty of Register of Deeds
to Apprise Assessor of Real Property Listed in Registry.—To
ascertain whether or not any real property entered in the Registry of
Property has escaped discovery and listing for the purpose of taxation,
the Register of Deeds, shall prepare and submit to the provincial or
city assessor, within two years from the date of approval of this Code
an abstract of his registry, which shall include brief but sufficient
description of the real properties entered therein, their present owners
and the dates of their most recent transfer or alienations accompanied
by copies of corresponding deeds of sale, donation or partition or other
form of alienation.
It shall also be the duty of the Register of
Deeds to require every person who shall present for registration a
document of transfer, alienation or encumbrance of real property to
accompany the same with a certificate to the effect that the real
property subject of the transfer, alienation or encumbrance, as the case
may be, has been fully paid of all real property taxes due thereon.
Failure to provide such certificate shall be a valid cause for the
Register of Deeds to refuse the registration of the document.
SEC.
13. Duty of Official Issuing Building Permit or Certificates of
Registration of Machinery to Transmit Copy to Assessor.—Any public
official or employee who may now or hereafter be required by law or
regulation to issue to any person a permit for the construction,
addition, repair or renovation of a building or permanent improvement,
on land, or a certificate or registration for any machinery, including
machines, mechanical contrivances, and apparatus, attached or affixed on
land, or to another real property shall transmit a copy of such permit
or certificate, within thirty days of its issuance, to the assessor of
the province or city wherein the property is situated.
Duty of Surveyors to Furnish Copy of Plans to Assessors.
SEC. 14. Duty of Surveyors to Furnish Copy of Plans to
Assessors.—It shall be the duty of all surveyors, public or private,
to furnish free of charge to the assessor of the province or city where
the land is located with a white or blue print copy of each of all
approved original or subdivision plans or maps of surveys executed by
them within thirty days from receipt of such plans from the Bureau of
Land or Land Registration Commission or the National Urban Planning
Commission, as the case may be.
Preparation of Schedule of Values.
SEC. 15. Preparation of Schedule of Values.—Before
any general revision of property assessments is made, as provided in
this Code, there shall be prepared for the province or city a Schedule
of Market Values for the different classes of real property therein
situated in such form and detail as shall be prescribed by the Secretary
of Finance.
Said schedule, together with an abstract of the data on which it
is based, shall be submitted to the Secretary of Finance for review not
later than the thirty-first day of December immediately preceding the
calendar year the general revision of assessments shall be undertaken.
The Secretary of Finance shall have ninety days from the date or receipt
within which to review said schedule to determine whether it conforms
with the provisions of this Code.
Authority of Assessor to Take Evidence.
SEC. 16. Authority of
Assessor to Take Evidence.—For the purpose of obtaining information
on which to base the market value of any real property, the provincial
or city assessor, or his deputy, may summon witnesses, administer oaths
and take deposition, concerning the property, its ownership, amount,
nature and value.
Amendment of Schedule of Market Values.
SEC. 17. Amendment of Schedule of Market Values.—
For the correction of errors or inequalities in any schedule of market
values, the provincial or city assessor shall, on his own initiative or
upon the direction of the Secretary of Finance, prepare an amendment
designed to remedy such errors or inequalities. Such amendments shall
likewise be subject to review by the Secretary of Finance within ninety
days1 from the date of receipt thereof.
Classes of Real Property for Assessment Purposes.
SEC. 18. Classes of Real
Property for Assessment Purposes.—For purposes of assessment, real
property shall be classified as residential, agricultural, commercial or
industrial and also as mineral in the case of lands.
Mineral
lands shall be further classified as follows:
Metallic mineral lands, which shall include:
Patented lode mining claims, producing or non-producing;
Unpatented producing lode mining claims which may be
patented;
Unpatented non-producing lode mining claims
which may be patented;
Patented placer mining claims, producing or
non-producing;
Unpatented producing placer mining claims which may be
patented; and
Unpatented non-producing placer mining claims which may
be patented.
Non-metallic mineral lands, which shall include:
Patented, producing or non-producing;
Unpatented, producing which may be patented; and
Unpatented, non-producing, which may be patented.
Definition of terms.—"Patented" mineral lands are those lands
covered by a duly issued mineral patent signed by the President of the
Philippines.
"Unpatented" mineral lands are those lands which
were located as mining claims under the provisions of the Philippine
Bill of 1902 but are not yet covered by a mineral patent.
"Producing patented mineral claims" are those claims producing minerals
for commercial purposes.
"Non-producing patented mineral claims"
are those claims which are only in the stage of exploration and
development and has not produced minerals for commercial production.
A "lode mineral claim" is a parcel of mineral lands containing a vein,
lode, ledge, lens, or mass of ore in place which has been located in
accordance with law.
A "placer claim" is that which does not come
under the definition of "lode mineral claim."
"Placer deposits"
are in loose, fragmentary or broken rocks, boulders, floats, beds or
deposits.
"Metallic" deposits are those which contain any of the
metallic elements or minerals, or their combinations, such as gold,
silver, platinum, tin, chromium, iron manganese, copper, nickel, lead,
zinc cinnabar, tungsten and the like.
"Non-metallic" deposits are
all other deposits not covered by the above metallic deposits.
In case of conflict between the above definitions and those appearing in
the Mining Act as amended, the latter shall prevail.
Special
Classes of Real Property—
All lands, buildings and other
improvements thereon, actually, directly and exclusively used for
educational, cultural, recreational or scientific purposes, as well as
hospitals not owned and operated by the government or by any of its
instrumentalities, shall be classified as special.
SEC. 19.
Actual Use of Real Property as Basis for Assessment.—Real
property shall be assessed on the basis of its actual use regardless of
where located and whoever uses it.
The Secretary of Finance shall
issue guidelines for the proper implementation of the provisions of
this Section.
Assessment Levels.
SEC. 20. Assessment Levels.—The
assessment levels to be applied to the current market values of real
property for taxation purposes shall be as follows:
On Lands—The assessment levels in the province or city
shall be maintained at the current levels of thirty per cent for
residential lands; forty per cent for agricultural lands; and fifty per
cent for commercial or industrial lands.
Mineral lands—For purposes of taxation, mineral lands not
covered by lease shall be appraised at fifty per cent of their
market value to be determined by the Secretary of Finance, upon
consultation with the Director of Mines: Provided, however,
That mineral lands covered by leases shall be declared for taxation
purposes either by the owner of the land or lessee and the assessment
level thereof shall be maintained at the current level of fifty per
cent.
On Buildings, Machineries and other improvements.— The
assessment levels now prevailing in the province or city shall be
maintained but which shall in no case be lower than the
assessment levels for lands hereinabove prescribed nor more than
eighty per cent of the market value, except buildings used
exclusively for residential purposes, the assessment levels for
which shall be as follows:
Assessment Value
Market Value
15%
More
than
P30,000.00
but
less
than
or less
20%
"
"
30,000.00
"
"
"
P50,000.00
25%
"
"
50,000.00
"
"
"
75,000.00
35%
"
"
75,000.00
"
"
"
100,000.00
45%
"
"
100,000.00
"
"
"
150,000.00
55%
"
"
150,000.00
"
"
"
250,000.00
65%
"
"
250,000.00
"
"
"
350,000.00
75%
"
"
350,000.00
"
"
"
500,000.00
80%
"
"
500,000.00
"
"
"
Special Classes—The assessment level for all lands,
buildings and other improvements thereon, actually, directly and
exclusively used for educational, cultural or scientific purposes, as
well as hospitals not owned and operated by the government or by any of
its instrumentalities shall be fifteen per cent of the market value of
such property and for those exclusively used for recreational purposes,
thirty per cent of their market value.
For the first general revision of assessments to be undertaken after
the approval of this Code and every five years thereafter, the
assessment levels hereinabove prescribed for the different classes of
real property may be increased at rates to be fixed by the Secretary of
Finance but in no case shall such increase in rates exceed ten per cent
of the assessment levels herein prescribed for each class of real
property.
General Revision of Assessments.
SEC. 21. General Revision of Assessments.—Beginning
with the calendar year 1978, the provincial or city assessor shall make
a general revision of real property assessments in the province or city
to take effect January 1, 1979 and once every five years thereafter: Provided,
however. That if property values in a province or city, or in any
municipality, have greatly changed since the last general revision, the
provincial or city assessor may, with the approval of the Secretary of
Finance or upon his direction, undertake a general revision of
assessments in the province or city, or in any municipality before the
fifth year from the effectivity of the last general revision.
Valuation of Real Property.
SEC. 22. Valuation of Real Property.—Upon the
discovery of real property or during the general revision of property
assessments as provided in Section twenty-one of this Code or at any
time when requested by the person in whose name the property is
declared, the provincial or city assessor or his authorized deputy shall
make an appraisal and assessment in accordance with Section five hereof
of the real property listed and described in the declaration
irrespective of any previous assessment or taxpayer's valuation thereon:
Provided, however, That the assessment of real property shall
not be increased oftener than once every five years in the absence of
new improvements increasing the value of said property or of any change
in its use, except as otherwise provided in this Code.
Certification of Revised Values to the Secretary of Finance.
SEC. 23. Certification of Revised Values to the
Secretary of Finance.—When the provincial or city assessor shall
have finished a general revision of property assessments for any
province, municipality or city, he shall so certify to the Secretary of
Finance and the assessments shall become effective and taxes shall
accrue and be payable thereunder in accordance with the provisions of
this Code.
Date of Effectivity of Assessment of Reassessment.
SEC. 24. Date of Effectivity of Assessment of
Reassessment.—All assessment or reassessments made after the first
day of January of any year shall take effect on the first day of January
of the succeeding year: Provided, however, That the reassessment of
real property due to its partial or total destruction, or to a major
change in its actual use, or to any great and sudden inflation or
deflation of real property values, or to the gross illegality of the
assessments when made or to any other abnormal cause, shall be made
within ninety days from the date any such cause or causes occurred, the
same to take effect at the beginning of the quarter next following the
reassessment.
Assessment of Property Subject to Back Taxes.
SEC. 25. Assessment of Property Subject to Back Taxes.
—Real property declared for the first time shall have back taxes
assessed against it for the period during which it would have been
liable if assessed from the first in proper course but in no case for
more than ten years prior to the year of initial assessment; Provided,
however, That the back taxes shall be computed on the basis of the
applicable schedule of values in force during the corresponding period.
If said taxes are paid before the expiration of the tax
collection period next ensuing, no penalty for delinquency shall be
imposed, otherwise the taxes shall be subject to all the penalties to
which they would have been liable had they originally become deliquent
after assessment of the property in the usual course.
SEC. 26.
Binding effect of Assessment or Reassessment. —All assessments
and reassessments made under the provisions of this Code shall be valid
and binding on all persons having legal interest on the property.
Notification of New or Revised Assessments.
SEC. 27. Notification of New or Revised Assessments.—
When real property is assessed for the first time or when an existing
assessment is increased or decreased, the provincial or city shall
within thirty days give written notice of such new or revised assessment
to the person in whose name the property is declared. The notice may be
delivered personally to such person or to the occupant in possession,
if any, or by mail to the last known address of the person to be served,
or through the assistance of the barrio captain.
Appraising Machinery.
SEC. 28. Appraising Machinery.—The current market
value of machinery shall be determined on the basis of the basis of the
original cost in the case of newly acquired machinery not yet
depreciated and is appraised within the year of its purchase. In the
case of all others, the current market value shall be determined by
dividing the remaining economic life of the machinery by its economic
life and multiplied by the replacement or reproduction cost
(new) of said machinery.
If the machinery is imported, replacement or reproduction
cost (new) shall be the original acquisition cost which would
normally include such costs as freight and insurance charges, brokerage,
arrastre and handling, customs duties and taxes plus cost of inland
transportation and handling, and significant installation charges at the
present site. The cost in foreign currency of imported machinery shall
be converted to peso cost on the basis of foreign currency exchange
rates as fixed by the Central Bank of the Philippines.
Depreciation Allowance for Machinery.
SEC. 29. Depreciation Allowance for Machinery.—For
purposes of assessment, a depreciation allowance shall be made for
machinery at a rate not exceeding ten per cent of its original cost or
its replacement or reproduction cost (new), as the case may be, for each
year of use: Provided, That the remaining value for all kinds
of machinery shall be fixed at not less than twenty per cent of such
original or replacement cost for so long as the machinery is useful and
in operation.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
