Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 76)
All persons, natural or juridical, owning or administering real property, including improvements therein, within a city, municipality, or municipal district, or their authorized representatives are required to file the sworn statement.
"Current and fair market value" is defined as the price at which a willing seller would sell and a willing buyer would buy the property, with neither party being under abnormal pressure.
The sworn statement must be filed with the provincial or city assessor not later than June 30, 1973.
Assessed valuation shall be 50% of the current and fair market value for commercial, industrial, or mineral lands; 40% for agricultural lands; and 30% for lands used purely for residential purposes.
Improvements are assessed independently from the land and maintained at current levels, which shall not be lower than the assessment levels prescribed for lands, nor more than 80% of the current and fair market value, except for purely residential houses which have a graduated scale of assessment percentages.
Anyone who knowingly makes a false declaration or deliberately fails to file the sworn statement shall be fined not less than 500 pesos nor more than 10,000 pesos. If committed by a corporation, the manager or person in charge is held responsible.
They may be punished by a fine of not more than 1,000 pesos or imprisonment of not more than two years, or both, at the discretion of the court.
The provincial or city assessor shall declare the property in the name of the defaulting owner or against an unknown owner and assess the property for taxation accordingly, without requiring an oath for the declaration.
An owner dissatisfied with the assessment may appeal within 60 days to the Provincial or City Board of Tax Appeals. If still dissatisfied, an appeal can be made within 30 days to the Central Board of Tax Appeals, whose decision is final.
The Board is composed of three members: the Register of Deeds as Chairman, and the Provincial or City Auditor and Provincial or City Engineer as members, serving ex officio without additional compensation.
The Secretary of Finance is tasked to formulate implementing rules and regulations, review the schedule of current and fair market values prepared by assessors, approve assessment level increases above 80%, and chair the Central Board of Tax Appeals.
Every five years, unless the nature of the property changes from rural to urban or from residential to commercial and industrial purposes.
A penalty of 2% per month of delinquency is imposed, with a maximum total penalty not exceeding 24% of the delinquent tax.
They shall be punished by a fine not exceeding 5,000 pesos, or imprisonment not exceeding two years, or both, at the court's discretion.