Question & AnswerQ&A (DOF LOCAL FICE CIRCULAR NO. 003-92)
The primary legal basis is Section 13 of Republic Act No. 7279, also known as the Urban Development and Housing Act of 1992.
The Department of Finance sets equitable land valuation guidelines based on the market value reflected in the zonal valuation or, in its absence, on the latest real property tax declaration.
For sites already occupied by qualified beneficiaries, the Department of Finance factors in the blighted status of the land as certified by the local government unit or the National Housing Authority.
Fair Market Value is the highest price in terms of money that a purchaser, with full knowledge of all uses of the property, would pay when the property is exposed for sale in the open market.
Zonal Valuation is an approved zonal schedule of fair market values on real property used by the Bureau of Internal Revenue for computing internal revenue taxes.
The circular governs the valuation of land, urban areas, and urbanizable areas, and the grant of incentives to the National Housing Authority pursuant to the Urban Development and Housing Act of 1992.
If no zonal value exists for the land, the zonal value for similar lands in an adjacent area or barangay within the city or municipality is used.
Valuation shall be computed based on the Schedule of Market Values applicable to the city or municipality; if none exists, the unit base market value from similar areas is used.
Yes, under Section 19 of RA 7279, the NHA is exempted from all fees and charges including real property taxes on properties it owns.
The grantee becomes liable to pay the real property taxes due, even if the property is still in NHA's name, because the use and possession have been delivered to the grantee.
The exemption takes effect beginning January of the year following the year RA 7279 took effect, which is 1992.
All contracts or documents executed by and in favor of the NHA are exempt from documentary stamp tax and registration fees, facilitating its housing programs for the underprivileged.
The provincial, city, or municipal assessors, including those in Metro Manila, must submit a report on land valuation to the requesting Local Government Unit, NHA, or National Home Mortgage Finance Corporation within 30 days from receipt of the request.
Urban Areas include all cities regardless of population density and municipalities with a population density of at least 500 persons per square kilometer.
Urbanized areas are sites or lands showing strong potential of becoming urban areas within five years based on present characteristics and prevailing conditions.