Law Summary
Tax Imposition Based on Rental and Land Value
- If the sugar land owner or person in control leases or cedes the land to others for consideration, they are subject to a tax.
- The tax is calculated as the difference between:
- The actual money value of the rent or other consideration received, and
- Twenty percent (20%) of the assessed value of the land.
- This means if the rent or consideration exceeds 20% of the land's assessed value, the excess amount is subject to tax.
Scope and Application
- The law applies specifically to lands used for sugar cane cultivation.
- It targets owners or controllers who lease out such lands.
Retroactive Effect and Implementation
- The Act took effect upon its approval on June 16, 1956.
- It has retroactive application, covering all cases pending at the time of approval.
Legal and Fiscal Purpose
- This amendment aims to stabilize the sugar industry by ensuring proper taxation on sugar land rentals.
- It also serves to increase government revenue through the tax imposed on sugar land leases and rentals.