QuestionsQuestions (BSP MEMORANDUM NO. M-2014-043)
It governs (1) the appraisal and assessment of real property for taxation by provinces, cities, and municipalities, and (2) the levy, collection, and administration of the real property tax.
Key principles include: appraisal at current and fair market value; uniform appraisal within each local political subdivision; classification based on actual use; uniform standard of value within each subdivision; prohibition against letting appraisal/assessment and tax collection to private persons; and equitable distribution of the tax burden.
It refers to the purpose for which the property is principally or predominantly utilized by the person in possession of the property.
The highest price estimated in terms of money that the property will buy if exposed for sale in the open market, allowing reasonable time to find a purchaser who buys with knowledge of all uses it is adapted for, and where neither party is under abnormal pressure.
It is the duty of owners/administrators (or their duly authorized representatives) to file a sworn statement declaring the true value (current and fair market value) with the provincial or city assessor. It must be filed once every five years, within January 1 to June 30, starting in 1977 (unless required earlier by the Secretary of Finance).
The provincial or city assessor will declare the property in the name of the defaulting owner (if known) or against an unknown owner and assess it for taxation; no oath is required for the assessor’s declaration.
For deceased persons, undivided property may be listed/valued in the name of the estate or the heirs and devisees without designating them individually. For co-owned undivided property, it may be listed/valued in the name of one or more co-owners; the heir/co-owner is severally liable for obligations and realty tax on the undivided property.
Within 30 days from the date of declaration, the claimant must file sufficient documentary evidence (e.g., charter, title, by-laws, contracts, affidavits/certifications, mortgage deeds). If evidence is not submitted within the period, the property is listed as taxable; if later proven exempt, it is dropped from the roll of taxable properties.
Within two years from approval of the Code, the Register of Deeds must submit an abstract of the registry showing properties, present owners, dates of most recent transfer, and copies of corresponding deeds. It must also require that documents for transfer/encumbrance come with a certificate that real property taxes due have been fully paid; otherwise, registration may be refused.
It is a schedule for the province/city of market values for different classes of real property, prepared before any general revision of assessments. It must be submitted to the Secretary of Finance not later than December 31 immediately preceding the year of the general revision; the Secretary has 90 days to review.
Residential, agricultural, commercial, industrial, and mineral lands (with further subclasses).
Real property is assessed based on its actual use regardless of its location and regardless of who uses it.
Assessment levels (for lands) are: 30% for residential; 40% for agricultural; 50% for commercial or industrial. For mineral lands not covered by lease, it is 50% as determined by the Secretary of Finance upon consultation with the Director of Mines (and mineral lands covered by leases maintain 50%). “Assessment level” is the percentage applied to market value to determine taxable/assessed value.
Beginning in calendar year 1978, the provincial or city assessor must make a general revision to take effect January 1, 1979 and once every five years thereafter. A revision may be earlier if property values greatly changed, with approval or direction of the Secretary of Finance.
Upon discovery of real property; during a general revision; or at any time when requested by the person in whose name the property is declared.
The owner may appeal to the Local Board of Assessment Appeals within 60 days from receipt of the written notice of assessment. The Local Board must decide within 120 days from receipt. The decision can be appealed to the Central Board within 30 days after receipt by filing under oath with the Secretary of the proper Local Board and forwarding copies to the Central Board; the Central Board decides within 12 months from receipt.
No. Appeals on assessments shall not suspend collection of the corresponding realty taxes as assessed by the provincial/city assessor, though adjustment may follow depending on the final outcome.