Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 464)
The Real Property Tax Code governs the appraisal and assessment of real property for taxation by provinces, cities, and municipalities, as well as the levy, collection, and administration of the real property tax.
Real property shall be appraised at its current and fair market value prevailing in the locality where the property is situated.
Appraisal shall be at current and fair market value, uniform within each local political subdivision, based on actual use, with a uniform standard of value, not entrusted to private persons, and aimed at equitable distribution of tax burden.
The Department of Finance is primarily responsible and the Secretary of Finance exercises direct executive supervision over all assessment and treasury officials and personnel in local governments.
They must file a sworn statement declaring the true current and fair market value of their property once every five years or earlier if required by the Secretary of Finance.
The provincial or city assessor shall declare the property themselves in the name of the defaulting owner or as unknown owner, and assess the property without requiring an oath.
Real property is classified as residential, agricultural, commercial, industrial, mineral lands, and special classes such as properties used exclusively for educational, cultural, recreational, or scientific purposes.
Residential lands at 30%, agricultural lands at 40%, commercial or industrial lands at 50%, with special provisions for mineral and special classes.
A fine of not more than one thousand pesos, or imprisonment of not more than one year, or both, at the court's discretion; and forfeiture of the right to appeal the assessment if the property is taxable.
Taxes may be paid in four equal quarterly installments without penalty, with deadlines on March 31, June 30, September 30, and December 31 respectively.
Remedies include distraint and sale of personal property, advertisement and public auction of the delinquent real property, civil action in court, and application of penalties.
No, appeals on assessments do not suspend the collection of the real property tax, subject to later adjustments depending on the appeal outcome.
It is composed of the Register of Deeds as Chairman, the Provincial or City Auditor, and the Provincial or City Engineer. It reviews appeals on assessment within 120 days and has powers to summon witnesses and conduct hearings.
An additional annual tax of one percent on real property is imposed for the Special Education Fund, except where the total assessed valuation of property per person does not exceed three thousand pesos.
Exemptions include government-owned properties, non-profit cemeteries, charitable institutions, religious properties, properties with assessed valuation not exceeding five hundred pesos, land converted into dairy farms for five years, machinery of new preferred industries during the first three years, perennial trees of economic value, and those exempt by other laws.