Presidential Decree No. 523 (PD 523) — 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.
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. 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.
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.
SEC. 3. The Secretary of Finance shall issue the necessary
rules and regulations to implement this Decree.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
