Presidential Decree No. 853 (PD 853) — Providing for the Classification and Valuation of Timber and Forest Lands for Purposes of Real Property Taxation.
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;
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.
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.
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.
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.
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.
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.
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.
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.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
