Real Property Taxation (Ra 7160)

Section 201. Appraisal of Real Property. - All real property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is situated

Section 202. Declaration of real Property by the 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, city or municipal 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.

Section 199. Definitions. - When used in this Title: xxx d) "Agricultural Land" is land devoted principally to the planting of trees, raising of crops, livestock and poultry, dairying, salt making, inland fishing and similar aquacultural activities, and other agricultural activities, and is not classified as mineral, timber, residential, commercial or industrial land

Section 216. Special Classes of Real Property. - All lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water districts, and government-owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power shall be classified as special.

Section 206. Proof of Exemption of Real Property from Taxation. - xxx 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 the property shall be proven to be tax exempt, the same shall be dropped from the assessment roll.

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles :xxx (e) The appraisal and assessment of real property shall be equitable.

(h) "Assessed Value" is the fair market value of the real property multiplied by the assessment level. It is synonymous to taxable value;

Section 216. Special Classes of Real Property. - All lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water districts, and government-owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power shall be classified as special.

Section 199. Definitions. - When used in this Title: xxx (i) "Commercial Land" is land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential land

Section 199. Definitions. - When used in this Title: xxx (n) "Industrial Land" is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, timber, mineral or residential land;

Section 199. Definitions. - When used in this Title: xxx (u) "Residential Land" is land principally devoted to habitation.

Section 199. Definitions. - When used in this Title: xxx (p) "Mineral Lands" are lands in which minerals, metallic or non-metallic, exist in sufficient quantity or grade to justify the necessary expenditures to extract and utilize such materials;

The sworn declaration of real property herein referred to shall be filed with the assessor concerned once every three (3) years during the period from January first (1st) to June thirtieth (30th) commencing with the calendar year 1992.

Section 246. Date of Accrual of Tax. - The real property tax for any year shall accrue on the first day of January and from that date it shall constitute a lien on the property which shall be superior to any other lien, mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the delinquent tax.

(h) "Assessed Value" is the fair market value of the real property multiplied by the assessment level. It is synonymous to taxable value;

Mangrove Land – is a term applied to the type of forest occurring on tidal flat along the seacoast, extending along stream where the water is brackish;

(l) "Fair Market Value" is the price at which a property may be sold by a seller who is not compelled to sell and bought by a buyer who is not compelled to buy;

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles: xxx (d) The appraisal, assessment, levy and collection of real property tax shall NOT be let to any private person;

Patented" mineral lands are those lands covered by a duly issue mineral patent signed by the President of the Philippines.

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles: xxx (d) The appraisal, assessment, levy and collection of real property tax shall NOT be let to any private person;

Timberland – is land identified as forest or reserved area by the government, which may or may not be granted to a concessionaire, licensee, lessee or permitee;

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles: (a) Real property shall be appraised at its current and fair market value;

a) On Lands:
CLASS ASSESSMENT LEVELS
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%

(a) On Lands:
CLASS ASSESSMENT LEVELS
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%

Foreshore Land – a strip of land along the seashore, the use of which may or may not be granted by the government to private persons or corporations;

Section 208. Notification of Transfer of Real Property Ownership. - Any person who shall transfer real property ownership to another shall notify the provincial, city or municipal assessor concerned within sixty (60) days from the date of such transfer. The notification shall include the mode of transfer, the description of the property alienated, the name and address of the transferee.

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.

"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.

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles: xxx (b) Real property shall be classified for assessment purposes on the basis of its actual use

Actually used is defined as an act or fact in reality; “Actual is something real or actually existing as opposed to something merely possible, or to something which is presumptive or constructive

Exclusively used means the primary or inherent use and does not preclude such incidental uses as are directly connected with, essential to, and in furtherance of the primary use.

Section 222. Assessment of Property Subject to Back Taxes. - Real property declared for the first time shall be assessed for taxes for the period during which it would have been liable but in no case of more than ten (10) years prior to the date of initial assessment: Provided, however, That such taxes shall be computed on the basis of the applicable schedule of values in force during the corresponding period.

Marsh Land – a tract of low-lying land usually under water.

shall be composed of the Registrar of Deeds, as Chairman, the provinacial or city prosecutor and the provincial, or city engineer as members

"Producing patented mineral claims" are those claims producing minerals for commercial purposes.

(j) "Depreciated Value" is the value remaining after deducting depreciation from the acquisition cost;

Section 230. Central Board of Assessment Appeals. - The Central Board of Assessment Appeals shall be composed of a chairman, and two (2) members to be appointed by the President, who shall serve for a term of seven (7) years, without reappointment. Of those first appointed, the chairman shall hold office for seven (7) years, one member for five (5) years, and the other member for three (3) years. Appointment to any vacancy shall be only for the unexpired portion of the term of the predecessor. In no case shall any member be appointed or designated in a temporary or acting capacity. The chairman and the members of the Board shall be Filipino citizens, at least forty (40) years old at the time of their appointment, and members of the Bar or Certified Public Accountants for at least ten (10) years immediately preceding their appointment.

(a) The Board of Assessment Appeals of the province or city shall be composed of the Registrar of Deeds, as Chairman, the provincial or city prosecutor and the provincial, or city engineer as members, who shall serve as such in an ex officio capacity without additional compensation.

The maximum assessment level for Cultural, Hospital, and Scientific class of real property is 15%. This means that the assessed value of these types of properties cannot exceed 15% of their market value.

(s) "Remaining Value" is the value corresponding to the remaining useful life of the machinery;

The sworn declaration of real property herein referred to shall be filed with the assessor concerned once every three (3) years during the period from January first (1st) to June thirtieth (30th) commencing with the calendar year 1992.

Section 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:

(a) Real property shall be appraised at its current and fair market value;

(b) Real property shall be classified for assessment purposes on the basis of its actual use;

(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;

(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and

(e) The appraisal and assessment of real property shall be equitable.

Presidential Decree No. 464 is titled the Real Property Tax Code. This decree is a legal document that outlines the regulations and guidelines for the assessment and collection of real property taxes in a specific jurisdiction. It provides a comprehensive framework for determining the value of real properties and the corresponding tax rates that should be applied. The Real Property Tax Code is an essential tool for local governments to generate revenue and ensure fair taxation practices within their jurisdiction.

Horticultural Land – is land devoted to or cultivated for planting of vegetables, flowers and other ornamental plants;

Section 223. Notification of New or Revised Assessment. - When real property is assessed for the first time or when an existing assessment is increased or decreased, the provincial, city or municipal assessor shall within thirty (30) 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 or by registered mail or through the assistance of the punong barangay to the last known address of the person to be served.

Section 230. Central Board of Assessment Appeals. - The Central Board of Assessment Appeals shall be composed of a chairman, and two (2) members to be appointed by the President, who shall serve for a term of seven (7) years, without reappointment. Of those first appointed, the chairman shall hold office for seven (7) years, one member for five (5) years, and the other member for three (3) years.

(d) On Special Classes: The assessment levels for all lands buildings, machineries and other improvements;
Actual Use Assessment Level
Local water districts 10%
Government-owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power 10%

Section 221. Date of Effectivity of Assessment or Reassessment. - All assessments or reassessments made after the first (1st) day of January of any year shall take effect on the first (1st) 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 assessment when made or to any other abnormal cause, shall be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the beginning of the quarter next following the reassessment.

A "placer claim" is that which does not come under the definition of "lode mineral claim."

Section 236. Additional Ad Valorem Tax on Idle Lands. - A province or city, or a municipality within the Metropolitan Manila Area, may levy an annual tax on idle lands at the rate not exceeding five percent (5%) of the assessed value of the property which shall be in addition to the basic real property tax.