FIXING THE YEARLY MAXIMUM INCREASE OF THE ASSESSED VALUE OF REAL PROPERTIES FOR A PERIOD OF NOT EXCEEDING FIVE YEARS BEGINNING WITH THE THIRD QUARTER OF CALENDAR YEAR 1974 AS BASIS FOR COLLECTING THE REAL PROPERTY TAX, AND FOR OTHER PURPOSES.

• Number: Presidential Decree No. 523
• Sections: 5

Preamble

WHEREAS, the results of the general revision of real

property assessments undertaken by Provincial and City Assessor

throughout the country in 1973 pursuant to Presidential Decree No. 76,

which took effect on January 1, 1974, showed marked increases in the

assessed valuations of such properties as compared to those subsisting

in 1973;

WHEREAS, the consequence of such increases in real property

assessments was a concommitant increase in real property taxes which

property owners, especially those belonging to, the low and

middle-income groups, find burdensome in the face of the rising costs of

living precipitated by worldwide inflation;

WHEREAS, confronted with such a dilemma, the taxpayers

expect the government to adopt measures which would ease the burden of

taxation and thereby alleviate the financial difficulties of the great

majority;

WHEREAS, not unmindful of the situation, the financial and

economic advisers of the country consider it imperative to recommend a

gradual increase of the real property tax by delimiting the yearly

maximum increase of real property assessments beginning with the third

quarter of calendar year 1974;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me under the Constitution

do hereby decree and order as part of the law of the land the

following:

Section 1

SECTION 1. Beginning with calendar year 1974, increases in

the assessed valuation of real property effected pursuant to

Presidential Decree. No.76, as amended, shall be gradual from 1974 to

1977 and in no case shall the increase in any year be more than 100% of

the assessed valuation of the same property for the calendar year 1973: Provided,

That effective in calendar year 1978, the full assessed valuation of

the said real property as determined by the provincial or city assessor

during the general revision in 1973 pursuant to Presidential Decree No.

76 shall be the basis for the computation of the real property tax due

thereon.

Section 2

SEC. 2. The real property tax due and payable beginning

with the third quarter of calendar year 1974 shall be computed in

accordance with Section 1 hereof: Provided, That any overpayment

of real property tax made as a consequence of the adjustment authorized

herein shall be applied to any future tax obligation on the same

property of the taxpayer concerned.

Section 3

SEC. 3. The Secretary of Finance shall issue the necessary

rules and regulations to implement this Decree.

Section 4

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 30th day of July, in the year of

Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary