QuestionsQuestions (PRESIDENTIAL DECREE NO. 1446)
PD 1446 amends the Real Property Tax Code provisions (PD 464) to impose an additional property tax on idle lands. Its declared policy is to promote the maximum and efficient utilization of land and deter land speculation so that rural development, low-cost housing, and related public programs can be supported.
It is five percent (5%) per annum based on the assessed value used by the Provincial/City Assessor (or Municipal Assessor for idle lands in municipalities of Metropolitan Manila).
It begins to accrue on July 1, 1978.
Agricultural lands suitable for cultivation, dairying, inland fishery, and other agricultural uses are considered idle if one half remains uncultivated or unimproved by the owner(s).
Lands other than agricultural located in a city or municipality, more than 2,000 square meters in area, are idle if one half remains unutilized or unimproved by the owner(s).
Residential lots in duly approved subdivisions whose ownership has been transferred to individual owners are liable for the additional tax. Individual lots whose ownership has not yet been transferred to the buyers are treated as part of the subdivision and are subject to additional tax payable by the subdivision operator.
The exemptions apply when the owner is unable to improve/utilize/cultivate due to: (1) adverse peace and order conditions (with conditions about restoration), (2) financial losses due to specified natural/force majeure events declared in a sworn statement, (3) existing court litigations (with conditions about final adjudication), (4) necessity to leave land fallow certified by agricultural authorities (with timing), (5) unfavorable physical factors rendering land unsuitable as certified by agricultural authorities.
If certified by the Provincial Commander of the Philippine Constabulary, the exemption applies initially; however, if within one year after peace and order is restored the land still remains unimproved, the additional tax under Section 42 is imposed.
The owner may claim exemption by submitting a sworn statement to the assessor with supporting certification from the proper local government agency. If the land is not improved to the extent prescribed within two years from the occurrence of the loss, the Section 42 tax is imposed.
Exemption applies while the case is pending (as certified by the court). If the land is not improved within one year after final adjudication to the extent prescribed, the additional tax under Section 42 is imposed.
It must be certified by the Provincial/City/Municipal Agriculturist (or the Secretary of Agriculture or duly authorized representatives), stating the period when land is ready for production. If not improved within one year after the period ends, the Section 42 additional tax is imposed.
Unfavorable physical factors such as rocky nature of ground and uneven topography that render the land unsuitable for cultivation, as certified by the agriculturist/Secretary of Agriculture or authorized representatives.
Such lots are exempt initially due to the developer’s failure, as determined by the assessor; but if within one year from when the subdivision is developed the lot still remains unutilized/unimproved, the Section 42 tax is imposed.
The owner/administrator/person with legal interest must file within six months from the effectivity of the decree with the assessor of the province, city, or municipality where the land is situated.
It must state the grounds under which the exemption is being claimed.
They follow the provisions of PD 464 (Real Property Tax Code), as amended by PD 1446.
If in provinces: 50% to the municipality where the property is situated and 50% to the province. If in cities: 100% to the city. If in cities and municipalities in Metropolitan Manila: 50% to the Metropolitan Manila Commission and 50% to the city or municipality where the property is located.
The Secretary of Finance must promulgate the necessary rules and regulations to implement the decree.
It took effect immediately.