PROVIDING FOR THE CLASSIFICATION AND VALUATION OF TIMBER AND FOREST LANDS FOR PURPOSES OF REAL PROPERTY TAXATION.

• Number: Presidential Decree No. 853
• Sections: 10

Preamble

WHEREAS, under Presidential Decree No. 464 otherwise known

as the Real Property Tax Code, timber and forest lands were embraced in

the definition of the term "agricultural land" for purposes of real

property taxation;

WHEREAS, it will be more systematic and conducive to just

and uniform property valuation if timber and forest lands are appraised

and assessed as a separate class of real property;

WHEREAS, the Philippine wood industry is presently affected

by a worldwide recession and lack of markets abroad;

WHEREAS, it has become imperative to adopt remedial measures

that will ease the realty tax burden of the wood industry by employing

new and definitive methods of appraisal and assessment of timber and

forest lands; and granting a descending rate of discount on the real

property tax due thereon;

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

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

hereby decree and order the following provisions to form part of the

law of the land;

Section 1 Classification.

SECTION 1. Classification.—All timber and forest

lands shall be segregated from the class agricultural land and be

classified as timber and forest lands for purposes of real property

taxation.

Section 2 Declaration and listing in the assessment rolls.

SEC. 2. Declaration and listing in the

assessment rolls.— All timber and forest lands owned by the

Republic of the Philippines or any of its political subdivision, the

beneficial use of which has been granted to a taxable person, shall be

declared for taxation purposes and listed in the assessment rolls in the

name of the concessionaire or licensee.

All timber and forest lands that are privately owned shall be

declared and listed in the name of the private owner.

Section 3

SEC. 3.

Assessment level.—the assessment level for all timber and forest

lands shall be 40% of their market value as determined by the

Provincial/City Assessor in accordance with such methods, procedures or

regulations that the Secretary of Finance may prescribe for the purpose.

Section 4 Taxable Area.

SEC. 4. Taxable Area.—(a) For a given tax year,

the taxable area of timber and forest lands belonging to the Republic

of the Philippines the beneficial use of which has been granted to a

taxable person shall be the operational area within the

concession as determined and authorized for the tax year by the Bureau

of Forest Development in accordance with the provisions of Presidential

Decree No. 705, otherwise known as the Revised Forestry Code of the

Philippines, and/or its implementing rules and regulations.

For purposes of this Decree, the term operational area

shall refer to the portion of portions of the entire concession from

where the concessionaire is granted the authority to cut and remove

timber for a given year. (b) In the case of privately-owned timber or

forest lands, the entire area belonging to the private owner shall be

the taxable area.

Section 5 Appraisal and Assessment of Timber and Forest Lands.

SEC. 5. Appraisal and Assessment of

Timber and Forest Lands.—1. In cases where timber or forest land is

located In one municipality or in one city, it shall be the

responsibility of the Provincial/City Assessor, by himself or thru his

Municipal Deputy Assessor, to appraise and assess the same in accordance

with the methods, procedures, or regulations that the Secretary of

Finance may prescribe therefor.

In cases, however, where the timber and forest lands are found

in two or more municipalities, the Provincial Assessor likewise shall

appraise and assess the same and he shall issue separate tax

declarations covering the areas corresponding to each municipality.

In cases where timber and forest lands cover two or more

provinces and/or cities, the Provincial/City Assessors concerned shall

jointly appraise and assess the property in accordance with

regulations to be issued by the Secretary of Finance.

Section 6 Tax Incidence and Rate of Levy on Timber and Forest Lands.

SEC. 6. Tax Incidence and Rate of Levy on Timber and

Forest Lands.—There shall be levied, assessed and collected in all

provinces, cities and municipalities a uniform annual ad valorem

tax of one (1%) per cent of the assessed value of timber and forest

lands, as determined by the Provincial/City Assessor.

The additional one per cent tax accruing to the Special

Education Fund created under Republic Act No. 5447 shall likewise be

imposed and collected on timber and forest lands.

Section 7 Officer responsible for the collection of the real property tax.

SEC. 7. Officer

responsible for the collection of the real property tax.—The basic

and additional real property tax on timber and forest lands shall be

collected by the Provincial/City Treasurers where the timber and forest

lands are located.

Section 8 Date of accrual of tax.

SEC. 8. Date of accrual of tax.—The real

property tax for timber and forest land shall begin to accrue on January

1, 1975; Provided however, that no penalty shall be imposed on the

taxpayer for periods prior to the effectivity of this Decree.

Section 9 Tax Discount.

SEC. 9. Tax Discount.—If the basic real property

tax and the additional one (1%) per cent tax accruing to Special

Educational Fund are paid in full within the prescribed period of

payment as provided for under Section 60 of Presidential Decree No. 464,

the taxpayer shall be granted a discount as follows:

60% on the tax due and payable during the year 1975,

40% on the tax due and payable during the year 1976, and

20% on the tax due and payable during the year 1977.

Done in the City of Manila, this 19th day of December, in the year

of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JUAN C. TUVERA

Presidential Assistant