Question & AnswerQ&A (Commonwealth Act No. 669)
The main purpose of Commonwealth Act No. 669 is to provide for the apportionment of the gross proceeds of the real property tax on machineries used in sugar centrals, mills, or refineries, by amending sections four and five of Commonwealth Act No. 470 (the Assessment Law).
All real properties subject to taxation under this Act shall be valued and assessed for taxation at their true and full value in accordance with the schedule of values in force in the municipality or municipal district where they are situated. If a property is not classified or does not have an assigned value in the schedule, it shall be assessed at its full and true value independently of the schedule.
Machineries permanently used or installed in sugar centrals, mills, or refineries shall be separately assessed for real property tax purposes.
The proceeds are applied for the use and benefit of the respective provinces and municipalities or municipal districts where the taxable property is located.
The provincial board may levy a uniform rate of taxation not less than one-eighth nor more than four-eighths (one-half) of one percent.
Municipalities or municipal districts may levy a tax rate not less than two-eighths nor more than four-eighths (one-half) of one percent.
If the municipal rate is in excess of four-eighths of one percent at the time of approval of this Act, the existing rate shall remain in force until it is reduced by ordinance.
Twenty-five percent of the gross proceeds accrues to the province, sixty percent is divided equally among the municipalities or municipal districts within the province where the sugar central, mill, or refinery is located and sugar cane is raised, and fifteen percent accrues as an additional share to the municipality where the sugar central, mill, or refinery is situated.
Any reduction in the real property tax rates must be subject to the approval of the Secretary of Finance.
The provincial board or municipal council must fix or amend the tax rate on or before the fifteenth day of December of each year for it to take effect in the succeeding year.