Question & AnswerQ&A (Act No. 3995)
The official title is the Assessment Law, enacted on December 5, 1932.
All real property including land, buildings, and other improvements, except those specifically exempted, are subject to annual ad valorem real-property tax outside the cities of Manila and Baguio.
Properties owned by the U.S., the Philippine Government, provinces, or municipalities; cemeteries; churches and lands used exclusively for religious, charitable, scientific, or educational purposes without income; small properties valued less than one hundred pesos; homestead lands not including buildings; machinery used for industrial/agricultural purposes; fruit trees and bamboo except when the land is principally planted for such growth.
Property shall be valued at its true and full value according to a schedule of values in force in the municipality, or independently at true value if not classified in the schedule.
The provincial assessor is appointed by the Department head upon nomination of the provincial board, must be a resident of the province, and swears to appraise properties at their true monetary value.
The assessor may establish systematic assessment methods, prepare maps of taxable property, keep records of property transfers, receive or make declarations, fix values and assessments, cancel or amend assessments, and summon witnesses for information.
Owners or authorized representatives must prepare and submit a property declaration with a detailed description and sworn verification within 60 days of acquisition or improvement to the provincial assessor.
A penalty of 2% per month on the original tax amount accrues for each month of delinquency until paid or property escheats to the provincial government.
The provincial treasurer may distrain personal property for sale at public auction, and after one year of delinquency, the property may forfeit and vest fully in the provincial government subject to redemption rights.
The taxpayer or their legal representative may redeem the property by paying the delinquent taxes, penalties, and costs within 90 days after notice or repurchase the property even after forfeiture by paying the full amount due before sale or contract with possible installment terms.
Municipal councils may levy special assessments on real estate especially benefited by public works, not exceeding 60% of costs, payable in installments without interest, following ordinance passage, public notice, and allowing protests and appeals.
Owners may appeal assessment decisions to the municipal council, provincial board, and Secretary of the Interior, with rights to hearings and evidence presentation; protests to special assessments require majority support and are subject to appeal to the provincial board.
Courts cannot entertain suits against taxes until the taxpayer pays under protest; they cannot invalidate taxes for procedural irregularities unless substantial rights are impaired; and cannot invalidate forfeiture suits until payment into court of the amount due.
Municipal officials, registers of deeds, notaries, and insurance companies must assist the assessor by providing copies of contracts, assessments, and information necessary for taxation purposes.
Officers omitting taxable property may face fines up to 1,000 pesos or imprisonment up to 2 years; those who intentionally delay filing declarations or appeals may be fined up to 500 pesos or imprisoned for up to 1 year.