Title
Exemption of Machinery from Property Tax
Law
Act No. 2197
Decision Date
Dec 4, 1912
Philippine Law, Act No. 2197 exempts machinery used for industrial, agricultural, or manufacturing purposes from property assessments and taxation, requiring owners to submit a detailed statement to the provincial board of tax appeals for a reduction in assessments, with the law taking effect upon its passage.
A

Q&A (Act No. 2197)

The main purpose of Act No. 2197 is to provide that the assessment of, and tax on, real and personal property shall not include machinery as defined in the Act.

Machinery is defined to include all machines, mechanical contrivances, instruments, tools, implements, appliances, apparatus, and paraphernalia used for industrial, agricultural, or manufacturing purposes, whether or not attached to land or buildings.

No, the value of machinery shall be excluded and shall not be assessed or taxed as part of improvements on or to real property or otherwise.

The owner must prepare and submit to the provincial board of tax appeals a detailed, itemized statement of such machinery showing the declared value of each item, total value of all items, and the assessed value if known.

The provincial board of tax appeals of the province where the assessment was made.

Reductions in assessments become effective at the beginning of the tax year following the annual meeting of the provincial board of tax appeals at which the reductions were authorized.

In such provinces, the duties are performed by the board of assessors provided for in section fifty of Act Numbered Thirteen hundred and ninety-seven.

Yes, existing assessments including machinery value shall be reduced in the manner and under the conditions stated in the Act.

It was enacted on December 4, 1912.

Yes, the Act covers machinery used for industrial, agricultural, or manufacturing purposes.


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