Title
Exemption of Machinery from Property Tax
Law
Act No. 2197
Decision Date
Dec 4, 1912
Philippine Law, Act No. 2197 exempts machinery used for industrial, agricultural, or manufacturing purposes from property assessments and taxation, requiring owners to submit a detailed statement to the provincial board of tax appeals for a reduction in assessments, with the law taking effect upon its passage.
A

Adjustment of Existing Assessments Including Machinery

  • Current assessments that include machinery value must be adjusted to exclude such machinery.
  • The adjustment process must follow the specific procedures and conditions outlined in the Act.

Requirement for Submission of Detailed Machinery Statement

  • Owners of machinery currently subjected to assessment and taxation must submit a detailed and itemized statement to their provincial board of tax appeals.
  • The statement must include declared values of each machinery item, total value, and assessed value if known.

Role and Authority of Provincial Board of Tax Appeals

  • The board convenes annually in December to review submitted machinery statements and pertinent evidence.
  • The board determines the true value of machinery and authorizes a corresponding reduction in the existing property assessment.

Effective Date of Assessment Reductions

  • Any assessment reductions authorized by the provincial board take effect at the start of the tax year following the board’s December meeting.

Alternative Authority in Unorganized Provinces

  • In provinces not organized under The Provincial Government Act, the duties of the board of tax appeals are executed by the board of assessors as designated by another law.

Definition of Machinery

  • Machinery encompasses all machines, mechanical contrivances, instruments, tools, implements, appliances, apparatus, and paraphernalia used in industrial, agricultural, or manufacturing activities.
  • This definition applies regardless of whether the machinery is attached to land or buildings.

Effectivity of the Law

  • The Act became effective immediately upon its passage on December 4, 1912.

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