Assessment Calendar and Procedures
- Sworn statements of true property values collected Jan 1 to June 30 of first year.
- Data gathering and preliminary market value schedules July 1 - Sept 30.
- Final schedules prepared and submitted by October 31.
- Ordinances adopting schedules enacted by January 31 of second year.
- Publication by February 29.
- Preparation of field sheets, tax declarations, notices by September 31.
- Assessment rolls and payment orders finalized by November 30; delivery to owners by December 31.
- New assessments effective January 1 of third year.
Funding and Expense Apportionment
- Local sanggunians provide necessary appropriations.
- Expenses shared equally between province and municipalities based on taxable area.
Valuation and Reassessment Rules
- Assessors must classify, appraise, and assess properties upon first declaration, ongoing revision, or owner request.
- Assessments increased only once every three years unless due to new improvements or usage changes.
- Undeclared properties assessed and subject to back taxes of up to ten years.
- Reassessments allowed for loss of value, improvements, or classification changes.
- Cancellation or reduction takes effect the next quarter, increases the following year.
Effectivity of Assessments
- Assessments made after January 1 take effect on the next January 1.
- Reassessments due to destruction or major changes take effect within 90 days, starting next quarter.
- Specific rules apply for tax collection on destroyed properties.
Back Taxes and Penalties
- Back taxes assessed for up to ten years, based on applicable market value schedules.
- Buildings and machinery exempt from back tax rules based on market values, instead valued on replacement cost.
- Penalties and interest apply if taxes unpaid past the quarter after notice; 2% monthly interest rate applied.
Notification of Assessments
- Written notice of new or revised assessment must be given within 30 days.
- Notice delivered personally, by mail, or via barangay officials.
- Owner has 60 days after receipt to appeal to Board of Assessment Appeals.
- Noticed must be exempt from postal charges.
Assessment Based on Actual Use
- Property classified and assessed based on actual predominant use, regardless of ownership.
Land Assessment Rules
- Lands classified & valued by use (residential, agricultural, commercial, industrial, mineral, timberland) per schedule of base market values.
- Mixed-use areas classified based on predominant use.
- Vacant lands assessed like similar lands.
- Agricultural lands convertible to urban classified as agricultural until development.
- Roads in subdivisions listed to owner, valued based on construction cost and assessed at subdivision land assessment rates.
Special Properties (Lands)
- Lands for cultural, scientific, water districts, or essential public services classified by location use, assessed at lower levels (10%-15%).
Lands for Religious, Charitable, Educational Use
- Classified and valued according to predominant use in area.
Government Owned Lands
- Classified and assessed like similar lands.
Buildings and Other Improvements Assessment
- Classified by use with schedules of unit construction cost.
- Mixed-use buildings assessed per predominant use.
- Special use buildings assessed at 10%-15% of depreciated value.
- Government buildings assessed like similar properties.
Assessment Levels
- Percentage levels applied to fair market value to determine assessed value.
- Statutory levels fixed by ordinance with maximum rates for land, buildings, machineries, and special classes.
- Assessment levels can only be adjusted by ordinance and only between general revisions.
Preparation and Use of Schedule of Market Values
- Schedules prepared for each city/municipality and submitted for ordinance enactment.
- Reflect fair market values regardless of actual use.
- Market value estimation uses sales analysis, income capitalization, or replacement cost approaches.
Sales Analysis Approach
- Use valid sales data, excluding non-arm's length transactions.
- Abstraction method separates land and improvements value.
Income Capitalization Approach
- Measures value based on net income and capitalization rate.
Reproduction Cost Approach
- Estimates cost to reproduce buildings or structures, less depreciation.
Urban Land Market Value Coverage and Subclassification
- Covers residential, commercial, industrial lands with sub-classes based on proximity to amenities, accessibility, and development.
Residential Subdivision Values
- Highly developed subdivisions may have independent schedules.
Adjustments for Land Variations
- Lot depth, corner location, shape, topography influence valuation.
- Standard lot depths established; land value tapers from street frontage.
Use of Working Maps
- Outline maps prepared to record unit land values for comparison.
Agricultural Land Market Values
- Covers rural agricultural lands.
- Classified by primary crops and productivity.
- Value determined by sales analysis or income capitalization.
- Location and access affect value by set percentage adjustments.
Building Classification and Cost Schedule
- Classified by structural design and use.
- Sample types include residential, commercial, industrial, farmhouses with further subtypes.
Addition and Deduction Factors
- Adjustments applied for deviations from standard features such as extra structures, finishes, fences, roof types.
Depreciation
- Buildings' value depreciated for wear and tear, applying combined observed depreciation and effective age.
Schedule Format and Submission
- Detailed format includes schedules, maps, sales data, classification, and depreciation tables.
- Submitted for sanggunian review and ordinance enactment.
Repealing Clause
- Inconsistent rules and regulations are modified accordingly to conform with these regulations.