Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 261)
The purpose of Presidential Decree No. 261 is to amend Presidential Decree No. 76 by prescribing assessment levels for special classes of real property such as educational, cultural, scientific, and recreational properties which do not fall squarely under the existing classifications.
Special classes recognized include real properties used for educational, cultural, scientific, and recreational purposes.
These properties are subject to an assessment level of fifteen percent (15%) of their current and fair market value.
Yes, these properties are exempt from the additional one percent tax under Republic Act No. 5447.
Educational properties within Metropolitan Manila are subject to an additional real property tax of one-eighth of one percent of the assessed value, the proceeds of which shall go to the Greater Manila Metropolitan Area Flood Control and Drainage Fund Account.
Education Foundations organized under Republic Act No. 6055 are exempt from the payment of the taxes mentioned in relation to educational, cultural, or scientific properties under this decree.
The classification "educational" applies only to educational institutions offering courses duly authorized and/or recognized by the Government.
Properties used purely for recreational purposes have an assessment level of thirty percent (30%) and are subject to the basic and additional real property taxes under Republic Act No. 5447 and Presidential Decree No. 18.
Yes, subsequent general revisions of assessments of these special classes of real property shall be governed by Presidential Decree No. 76.
All laws, orders, rules, and regulations inconsistent with this decree are repealed or modified accordingly.