Title
Supreme Court
Declaration of True Property Value for Taxation
Law
Presidential Decree No. 76
Decision Date
Dec 6, 1972
Presidential Decree No. 76 requires property owners in the Philippines to declare the true value of their properties to prevent tax evasion and ensure fair compensation, with non-compliance or false declarations resulting in penalties. The law also establishes guidelines for property assessment and allows for appeals, with the Secretary of Finance responsible for implementing rules and regulations.

Law Summary

Definition of Current and Fair Market Value

  • Defined as the price at which a willing seller would sell and a willing buyer would buy, neither under abnormal pressure.
  • Basis for just compensation in cases where the government acquires private property for public use.

Filing Requirement and Deadline

  • Owners or administrators must prepare and file a sworn statement declaring the true market value of their property by June 30, 1973.
  • The declaration covers previously declared or undeclared properties, taxable or exempt.

Assessment Levels and Basis for Real Property Tax

  • For commercial, industrial, or mineral lands: 50% of current and fair market value.
  • For agricultural lands: 40%.
  • For residential lands: 30%.
  • Improvements, including machinery, are assessed independently with assessment levels maintained at current rates but not lower than prescribed for lands and not more than 80% of market value.
  • Special graduated assessment percentages for residential houses based on property value tiers.

Revision of Assessments

  • Assessment revision every five years by provincial and city assessors.
  • Increase in assessment level at any one time limited to 10%, except where property use changes (rural to urban or residential to commercial/industrial).
  • Maximum assessment level capped at 80% of current and fair market value except with Secretary of Finance approval.

Consequence of Failure to File Sworn Statement

  • Assessors to declare and assess the property in the name of the defaulting owner or unknown owner without requiring oath.

Exemption Threshold

  • Real property with assessed valuation not exceeding 500 pesos in any municipality owned by a single person will not be collected for tax but shall be valued and recorded.

Supersession of Existing Tax Declarations

  • All tax declarations as of December 31, 1973, are superseded by those issued under this Decree.
  • Delinquent taxes computed based on prior assessment values and penalties remain collectible.

Schedule of Market Values

  • Assessors to prepare a schedule of current and fair market values for different classes of real property.
  • Schedule submitted to Secretary of Finance by September 30, 1973.
  • Secretary of Finance may modify or revise the schedule before November 30, 1973.

Appeal Procedures

  • Appeals against assessor's valuation may be filed within 60 days to the Provincial or City Board of Tax (Assessment) Appeals composed of Register of Deeds, Provincial or City Auditor, and Provincial or City Engineer.
  • The Board decides within 60 days with a documented basis.
  • Further appeal to Central Board of Tax (Assessment) Appeals within 30 days, whose decision is final.
  • Appeals do not suspend tax collection but adjustments may be made post-decision.

Funding and Appropriations

  • Local boards or councils must appropriate funds to cover implementation expenses.
  • Appropriations may come from unappropriated balances, underestimated revenues, or reversions of unauthorized appropriations.
  • Additional realty tax shares to local units divided equally between general and special education funds.
  • Secretary of Finance may increase allocation to general fund up to 75%.

Penalties for Delinquency and Violations

  • Tax delinquency penalty: 2% per month up to 24% of delinquent amount.
  • False declaration or failure to file sworn statement: Fine from 500 to 10,000 pesos.
  • Corporation offenses hold managers or persons in charge liable.
  • Assessing officers failing duty: fine up to 5,000 pesos, imprisonment up to 2 years, or both.
  • Officials delaying filing or appeals: fine up to 1,000 pesos or imprisonment up to 2 years, or both.

Implementing Authority and Regulations

  • Secretary of Finance ordered to formulate implementing rules and regulations for assessors.
  • Decree takes effect immediately upon publication.
  • Supersedes and repeals inconsistent laws, rules, or regulations.

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources. AI digests are study aids only—use responsibly.