Tax Rates on Timber and Forest Lands

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PRESIDENTIAL DECREE NO. 888: Tax Rates on Timber and Forest Lands

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Title Source: Supreme Court: Tax Rates on Timber and Forest Lands

Law: Presidential Decree No. 888

Decision Date: Feb 4, 1976

Presidential Decree No. 888 amends the classification and valuation of timber and forest lands for real property taxation in the Philippines, establishing specific rates of levy for provinces, municipalities, and cities.

Law Summary

Tax Rate for Provinces

The annual real property tax rate for timber and forest lands located within provinces is fixed at one-half of one percent (0.5%) of the assessed value of the taxable area.

Tax Rate for Municipalities

Similarly, timber and forest lands situated within municipalities are subject to an annual tax rate of one-half of one percent (0.5%) of the assessed value of the taxable area.
The combined tax rate for provincial and municipal government units can amount to one percent (1%) of the assessed value for these properties.

Tax Rate for Cities

For timber and forest lands within cities, the annual real property tax rate is fixed at one percent (1%) of the assessed value of the taxable area.

Scope and Purpose of the Amendment

This amendment revises Section 6 of Presidential Decree No. 853 concerning the classification and valuation of timber and forest lands for real property taxation.
It explicitly defines and fixes the tax rates, consolidating the policy on the levy of taxes on these lands to ensure uniformity and clarity in tax collection.

Legal Effect and Implementation

The decree mandates adherence to these tax rates starting February 4, 1976.
It is signed by the then President Ferdinand E. Marcos and promulgated officially from the City of Manila, reflecting its immediate effectivity as a presidential decree.

END