Definition of Key Terms
- Fair Market Value: Highest price a knowledgeable buyer would pay on the open market considering all possible uses.
- Schedule of Market Values: Approved market value list used by local assessors for real property tax assessments.
- Zonal Valuation: Bureau of Internal Revenue's approved schedule for computing internal revenue taxes.
- Real Property Tax Declaration: Property record showing market and assessed values for tax collection.
- Socialized Housing: Housing projects for underprivileged/homeless, including sites and services, financing, and other benefits as per the Act.
- Urban Areas: All cities and municipalities with population density of at least 500 persons per sq. km.
- Urbanized Areas: Lands with marked potential to become urban within 5 years.
Land Valuation for Socialized Housing
- Valuation based on prevailing zonal values or market values determined by local assessor.
- If no zonal value for particular land, value similar lands in adjacent barangay or area.
- No zonal valuation available: use market value from latest tax declaration.
- No tax declaration: use Schedule of Market Values; if none, use values from similar lands nearby.
- For lands spanning multiple LGUs, value each portion within respective jurisdiction and aggregate total.
- Assessors must provide valuation reports on request within 30 days.
Incentives and Tax Exemptions
- NHA exempt from all fees and taxes including real property taxes, documentary stamps, and registration fees.
- Exemption under RA 7279 prevails over Local Government Code provisions.
- Exemption effective beginning January following RA 7279’s effectivity.
- Once property use is granted to a taxable party, that party liable for real property tax despite NHA ownership until full payment is made.
Repealing Clauses
- Existing Department orders and regulations inconsistent with this Circular are repealed or amended accordingly.
Effectivity
- The Circular is effective immediately upon issuance (September 11, 1992).