REAL PROPERTY
TAXATION
TITLE II
Real Property Taxation
DEFINITION OF TERMS
Real Property Taxation
DEFINITION OF TERMS
Real Property Taxation
DEFINITION OF TERMS
APPRAISAL AND ASSESSMENT OF REAL
PROPERTY
• SECTION 202. Declaration of Real Property by the Owner or
Administrator. - It shall be the duty of all persons, natural or juridical,
owning or administering real property, including the improvements therein to
prepare a sworn statement declaring the true value of their property, whether
previously declared or undeclared, taxable or exempt, which shall be the
current and fair market value of the property,
APPRAISAL AND ASSESSMENT OF REAL
PROPERTY
• Declaration of Real Property by the Owner or Administrator. - It shall be the
duty of all persons, natural or juridical, owning or administering real property,
including the improvements therein to prepare and file a sworn statement
declaring the true value of their property, whether previously declared or
undeclared, taxable or exempt, which shall be the current and fair market value of
the property.
• It shall also be the duty of any person, or his authorized representative, acquiring
at any time real property in any municipality or city or making any improvement
on real property, to prepare and file a sworn statement declaring the true value of
subject property, within sixty (60) days after the acquisition of such property
or upon completion or occupancy of the improvement, whichever comes earlier.
• SECTION 215. Classes of Real Property for Assessment Purposes. -
For purposes of assessment, real property shall be classified as
• residential,
• agricultural,
• commercial,
• industrial,
• mineral, or
• special.
• SECTION 216. Special Classes of Real Property. - All lands, buildings,
and other improvements actually, directly and exclusively used for hospitals,
cultural, or scientific purposes, and those owned and used by local water
districts, and government-owned or -controlled corporations rendering
essential public services in the supply and distribution of water and/or
generation and transmission of electric power shall be classified as special.
ASSESSMENT LEVELS
ASSESSMENT LEVELS
ASSESSMENT LEVELS
• SECTION 219. General Revision of assessments and Property Classification. -
The provincial, city or municipal assessor shall undertake a general revision of real
property assessments within two (2) years after the effectivity of this Code and every
three (3) years thereafter.
CHAPTER 4
Imposition of Real Property Tax
LET’S PRACTICE!
Acquisition cost (2002) = P1.6M
Actual use = residential
Current and Fair market value =
P3.5M
Assessment level = ?
Assessed value = ?
Real Property Tax = ?
APPRAISAL AND ASSESSMENT OF REAL
PROPERTY
Assessment level = 40%
Assessed value = (3.5M x 40%) = 1.4M
Real property tax = (Assessed value x RPT rate)
Acquisition cost (2002) = P1.6M = (1.4M x 1%)
Actual use = residential = P14,000
Current and Fair market value =
P3.5M
…CONTINUED….
Section 204. Declaration of Real Property by the Section 206. Proof of Exemption of Real Property from
Assessor Taxation
• When any person, natural or juridical, refuses or fails for any
reason to make such declaration within the time prescribed, • Every person who shall claim tax
the provincial, city or municipal assessor shall himself
declare the property in the name of the defaulting owner
exemption shall file sufficient
documentary evidence in support
of such claim (corporate charters, title
of ownership, articles of incorporation,
etc.) with the provincial, city or
municipal assessor within thirty
(30) days from the date of the
declaration of real property.
• If the required evidence is not
submitted within the period herein
prescribed, the property shall be
listed as taxable in the assessment
roll.
Listing of Real Property in the Assessment Rolls
• In every LGU, • The undivided real • The real property of • Real property owned
including the property of a a corporation, by the Republic of
municipalities within deceased person may partnership, or the Philippines, its
the Metropolitan be listed, valued and association shall be instrumentalities and
Manila Area, there assessed in the name listed, valued and LGUs, but beneficial
shall be prepared of the estate or of assessed in the same use is to a taxable
and maintained by the heirs and manner as that of an person, shall be
the assessor an devisees without individual listed, valued and
assessment roll designating them assessed in the name
wherein shall be individually of the possessor,
listed all real • Undivided real grantee or of the
property, whether property other than public entity if such
taxable or exempt, that owned by a property has been
located within the deceased may be acquired or held for
territorial listed, valued and resale or lease.
jurisdiction of the assessed in the name
local government of one or more co-
unit concerned owners
Appraisal and Assessment of Machinery
• The fair market value of • If the machinery is • For purposes of
a brand-new machinery imported, the assessment, a
shall be the acquisition acquisition cost depreciation
cost. In all other cases, includes freight, allowance shall be
the fair market value insurance, bank and made for machinery
shall be determined by
dividing the remaining other charges, at a rate not
economic life of the brokerage, arrastre exceeding five
machinery by its and handling, duties percent (5%) of
estimated economic life and taxes, plus charges its original cost or
and multiplied by the at the present site. its replacement or
replacement or reproduction cost,
reproduction cost. as the case may be,
for each year of use
LET’S PRACTICE!
Acquisition cost (2020) = P2.0M
Actual use = agricultural
Economic life= 15 years
Fair market value =
Assessment level = ?
Assessed value = ?
Real Property Tax = ?
APPRAISAL AND ASSESSMENT OF REAL
PROPERTY
Fair market value= 1.8M
Assessment level = 40%
Assessed value = (1.8M x 40%) = 720,000
Real property tax = (Assessed value x RPT rate)
= (720,000 x 1%)
= P7,200
LET’S PRACTICE!
Acquisition cost (2019) =
H- P2.0M
L- 2.5M
Actual use =residential
Fair market value =
L – 3.6M
Assessment level = ? H- 3.0M
Assessed value = ?
Location: Metro Manila Area
Real Property Tax = ?
APPRAISAL AND ASSESSMENT OF REAL
PROPERTY
Assessment level: H = 40%
L = 20%
Assessed value: H- (3M x 40%) = 720,000
L- (3.6M x 20%) = 1,200,0000
Acquisition cost (2019) = Real property tax = (Total Assessed value x RPT rate)
H- P2.0M
L- 2.5M = (1,920,000 x 2%) = P38,400
Actual use =residential
Fair market value =
L – 3.6M
H- 3.0M
…CONTINUED….
(3rd batch)
BOARD OF ASSESSMENT APPEALS
Board of Assessment Appeals The chairman and the members of the Board shall
comprise: be Filipino citizens, at least forty (40) years old at the
time of their appointment, and members of the Bar
(1)Chairman: Registrar of Deeds or Certified Public Accountants for at least ten (10)
(2) Members*** years immediately preceding their appointment.
(1) Provincial/city prosecutor ***In provinces and cities without a provincial or city
(2) Provincial/city engineer engineer, the district engineer shall serve as member of the
Board. In the absence of the Registrar of Deeds, or the
provincial or city prosecutor, or the provincial or city
who shall serve for a term of seven engineer, or the district engineer, the persons performing
(7) years, without reappointment. their duties, whether in an acting capacity or as a duly
designated officer-in-charge, shall automatically become the
chairman or member, respectively.
BOARD OF ASSESSMENT APPEALS
within 60 days to within 120 days to
APPEAL DECIDE
OWNER (TAXPAYER) BOARD OF ASSESSMENT APPEALS
from the date of receipt of the The Board, after hearing, shall render its
written notice of assessment, decision based on substantial evidence or
such relevant evidence on record as a
reasonable mind might accept as adequate to
support the conclusion.
• Meetings and Expenses of the Local Board of
Assessment Appeals
• a) The Board of Assessment appeals of the province or city shall meet
once a month and as often as may be necessary for the prompt disposition
of appealed cases. No member of the Board shall be entitled to per
diems or traveling expenses for his attendance in Board meetings, except
when conducting an ocular inspection in connection with a case under
appeal.
• (b) All expenses of the Board shall be charged against the general fund of
the province or city, as the case may be. The Sanggunian concerned shall
appropriate the necessary funds to enable the Board in their respective
localities to operate effectively
SPECIAL LEVIES ON REAL PROPERTY
(1) An annual tax of one percent (1%) on the assessed value of real property
which shall be in addition to the basic real property tax. The proceeds
thereof shall exclusively accrue to the Special Education Fund (SEF).
(2) An annual tax on idle lands at the rate not exceeding five percent (5%)
of the assessed value of the property which shall be in addition to the basic
real property tax.
Special Levy by LGUs
• A province, city or municipality may impose a special levy on the lands comprised
within its territorial jurisdiction specially benefited by public works projects or
improvements funded by the local government unit concerned: Provided, however,
That the special levy shall not exceed sixty percent (60%) of the actual cost of
such projects and improvements, including the costs of acquiring land and such
other real property in connection therewith: Provided, further, That the special levy
shall not apply to lands exempt from basic real property tax and the remainder of
the land portions of which have been donated to the local government unit
concerned for the construction of such projects or improvements.
CHAPTER 6 - COLLECTION OF REAL
PROPERTY TAX
CHAPTER 6 - COLLECTION OF REAL
PROPERTY TAX
• The owner of the real property or the person having legal interest
therein may pay the basic real property tax and the additional tax for
Special Education Fund (SEF) due thereon without interest in four
(4) equal installments:
• first installment to be due and payable on or before March 31st;
• second installment, on or before June 30;
• the third installment, on or before September 30;
• and the last installment on or before December 31st,
• Tax Discount for Advanced Prompt Payment. - If the basic real property
tax and the additional tax accruing to the Special Education Fund (SEF) are
paid in advance in accordance with the prescribed schedule of payment as
provided under Section 250, the Sanggunian concerned may grant a
discount not exceeding twenty percent (20%) of the annual tax due.
• SECTION 252. Payment Under Protest.
• (a) No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated
on the tax receipts the words "paid under protest". The protest in writing must be filed within thirty
(30) days from payment of the tax to the provincial, city treasurer or municipal treasurer, in the case
of a municipality within Metropolitan Manila Area, who shall decide the protest within sixty (60)
days from receipt.
• (b) The tax or a portion thereof paid under protest, shall be held in trust by the treasurer
concerned.
• (c) In the event that the protest is finally decided in favor of the taxpayer, the amount or portion of
the tax protested shall be refunded to the protestant, or applied as tax credit against his existing or
future tax liability.
• (d) In the event that the protest is denied or upon the lapse of the sixty day period prescribed in
subparagraph (a), the taxpayer may avail of the remedies as provided for in Chapter 3, Title II,
Book II of this Code.
• SECTION 253. Repayment of Excessive Collections.
• When an assessment of basic real property tax, or any other tax levied under this Title,
is found to be illegal or erroneous and the tax is accordingly reduced or adjusted, the
taxpayer may file a written claim for refund or credit for taxes and interests with the
provincial or city treasurer within two (2) years from the date the taxpayer is entitled
to such reduction or adjustment. The provincial or city treasurer shall decide the claim
for tax refund or credit within sixty (60) days from receipt thereof.
OWNER (TAXPAYER) LOCAL TREASURER
File a written claim Decide the claim
for refund within 2 within 60 DAYS
YEARS from receipt
