EXCERPTS FROM THE MINUTES OF THE 74TH REGULAR SESSION OF THE 6th SANGGUNIANG PANLUNGSOD BATCH 2016-2019 OF THE CITY OF TABACO HELD AT THE SESSION HALL, LOCATED AT THE SECOND FLOOR TABACO CITY HALL BUILDING ON DECEMBER 19, 2017.
Hon. Nestor T. San Pablo City Vice Mayor & Presiding Officer.
Hon. Luis Renir B. Burce President Pro-Tempore & Member.
Hon. Sheina Marie C. Onrubia Floor Leader & Member,
Hon. John Gio Ong-Bongao Assistant Floor Leader & Member,
Hon. Roderick P. Martirez Member,
Hon. Arnaldo B. Bragais Member,
Hon. Raul Roi B. Borejon Member,
Hon. Oscar R. Rocha Member,
Hon. Julio C. Azada Chua, Jr. Member,
Hon. Hector D. Rodriguez Member,
Hon. Danilo C. Buenconsejo Member, &
Hon. Preciocisima B. Tanggo (Pres., LMB) Member.
N O N E
Author: HON. RAUL ROI B. BOREJON
Co-Author: HON. DANILO C. BUENCONSEJO
City Ordinance No. 039-2017
AN ORDINANCE PRESCRIBING THE SCHEDULE OF FAIR MARKET VALUES AND ASSESSMENT LEVELS ON REAL PROPERTIES IN THE CITY OF TABACO, ALBAY EFFECTIVE JANUARY I, 2018 FOR THE GENERAL REVISION OF REAL PROPERTY ASSESSMENTS, PURSUANT TO THE PROVISIONS OF THE LOCAL GOVERNMENT CODE (R.A.7160) AND ITS IMPLEMENTING RULES AND REGULATIONS, AND FOR OTHER PURPOSES.
WHEREAS, Section 201 Republic Act No.7160, otherwise known as the Local Government Code of 1991, provides that “All Real Property, whether taxable or exempt, shall be appraised at current and fair market value prevailing in the locality where the property is situated”;
WHEREAS, Section 219, of the same Code provides that: “That Provincial, City or Municipal Assessor shall Undertake a General Revision of Real Property Assessments within two (2) years after the effectivity of the Code and Every Three (3) Years Thereafter”;
WHEREAS, Section 212, of the same Code, provides that: “before any general revision of property assessment is made pursuant to the provisions of this title, there shall be prepared schedule of fair market values by the provincial, city and the municipal assessors of the municipalities and the different classes of real property situated in their respective local government units and enactment by ordinance of the Sanggunian concerned”;
WHEREAS, the last General Revision of Fair Market Values for Land and Schedule of Values of Buildings and other improvements was in the year 1999;
WHEREAS, in view of the tremendous increase of the fair market values of real properties in the City of Tabaco, particularly in the newly developed residential and commercial areas, the existing real property valuation approved in 1999 has become outdated and no longer reflective of the prevailing market value, and there is now a need to amend the existing schedule as mandated by the Local Government Code of 1991;
WHEREAS, in compliance with the foregoing provision, the City Assessor has prepared the schedule of Fair Market Values for Land and Schedule of Values of Buildings and other Improvements and other classes of real property located within the jurisdiction of Tabaco City pursuant to Local Assessment Regulations No. 1-92, the Manual on Real Property Appraisal and Assessment Operations (MRPAAO) under Local assessment Regulations 1-04 and Department Order No. 37-09 prescribing the Philippine Valuation Standards issued by the Department of Finance;
WHEREAS, the Sangguniang Panlungsod of Tabaco passed a resolution, “Adopting the Executive-Legislative Agenda of the City of Tabaco” which includes among others, the LGU’s plan to conduct a General Revision of Real Property Assessments and Classifications in the year 2017;
WHEREAS, the Sanggunian Panlungsod passed SP Internal Resolution No. 242-2017, requesting the Department of Finance for a moratorium on the conduct of a general revision in the City because of the destruction and damage brought about by Typhoon Nina which hit Tabaco and the rest of the Bicol Region on December 25, 2016, the request, however, was not granted;
WHEREAS, the purpose of the general revision of real property, in addition to its primary purpose of equalizing and updating valuation, is to bring to light again existing properties -rediscover many properties, that have been lost from the tax rolls, those which have been “undeclared” and to enable the assessor to purge from the roll the double assessments of properties which have been issued and that have accumulated through the years, to reclassify properties based on its Highest and Best Use, or it simply has the same purpose as the periodic physical inventory conducted by a business establishment;
NOW, THEREFORE, on the motion of Hon. Raul Roi B. Borejon, duly seconded and approved by the body,
BE IT ENACTED, as it is hereby enacted by the Sangguniang Panlungsod of Tabaco City, Albay by virtue of the powers vested in it by law, in regular session assembled, that:
TITLE AND SCOPE, DEFINITION OF TERMS
SECTION 1. TITLE. This Ordinance shall be known and cited as THE ORDINANCE PRESCRIBING THE SCHEDULE OF FAIR MARKET VALUES AND ASSESSMENT LEVELS ON REAL PROPERTIES IN THE CITY OF TABACO EFFECTIVE JANUARY 1, 2018.
SECTION 2. SCOPE. This Schedule of Fair Market Values and Assessment levels shall be adopted for all real properties in the entire territorial jurisdiction of the City of Tabaco.
SECTION 3. The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:
- Real Property shall be appraised at its current and fair market value;
- Real Property shall be classified for assessment purposes on the basis of its actual use;
- Real Property shall be assessed on the basis of a uniform classification within each local government unit;
- The appraisal assessment, levy and collection of real property tax shall not be let to any private person; and
- The appraisal and assessment of real property shall be equitable.
SECTION 4. DEFINITIONS OF TERMS. For purposes of Real Property Taxation, and as used in this Ordinance, the following definitions shall be used:
- Acquisition Cost – for newly acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of machinery to the present owner. Plus the cost of transportation, handling and installation at the present site.
- Actual Use – refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof;
- Ad Valorem Tax – is a levy on real property determined on the basis of a fixed proportion of the value of the property.
- Agricultural Land – is land devoted principally to the planting of trees. Raising of crops, livestock and poultry, dairying salt making, inland fishing and similar aquaculture activities, and other agricultural activities, and is not classified as mineral, timber, residential, commercial or industrial lands.
- Appraisal – is the act or process of determining the value of property as of a specific date for a specific purpose.
- Assessment – is the act or process of determining the value of the property or proportion thereof subject to tax including the discovery, listing, classification and appraisal of properties:
- Assessment Level – is the percentage applied to the fair market value to determine the taxable value of the property.
- Assessed Value – is the fair market value of the real property multiplied by assessment level it is synonymous to taxable value.
- Capitalization Rate – Any divisor (usually expressed as a percentage) that is used to convert income into capita value. The interest rate or yield at which the annual net income from an investment is capitalized to ascertain its capital value at a given date.
- Commercial Land – is land developed principally for the object of profit and is not classified as agricultural, industrial, mineral, timber or residential land.
- Comparable Data – Data generally used in a valuation analysis to develop a value estimates: comparable data relate to property being valued (the subject property). Such data include sales prices, rents, income and expenses, and market derived capitalization and yield/discount rates.
- Cost Approach – A comparative approach to the value of property or another asset that considers as a substitute for the purchase of a given property, the possibility of constructing another property that is an equivalent to the original or one that could furnish equal utility with no undue cost resulting from delay. The Valuer’s/Appraiser’s/Assessor’s estimate is based on the reproduction or replacement cost of the subject property or asset, less total (accrued) depreciation.
- Depreciation – The systematic allocation of the depreciable amount of an asset over its useful life.
- Depreciated Value – is the value remaining after deducting depreciation from the acquisition cost.
- Economic Life – is the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized.
- Market Value – is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
- Improvement – is a valuable addition made to a property or an amelioration in its condition, amounting to more than a mere repair or replacement of parts involving capital expenditures and labor, which is intended to enhance its value, beauty or utility or to adopt it for new further purposes.
- Industrial Land – is land devoted principally to industrial activity as capital investment and is not as agricultural, commercial, timber, mineral, or residential land.
- Machinery – embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may not be attached, permanently or temporarily to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-propelled, and those not permanently attached to the real property which are actually, directly and exclusively used to meet the needs of the particular industry, business or activity and which by their very nature and purpose are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purpose:
Residential Machinery shall include machines, equipment, appliances or apparatus permanently attached to residential land and improvements or those immovable by destination.
- Mineral Lands – are lands in which minerals, metallic or non-metallic exist in sufficient quantity or grade to justify the necessary expenditures to extract and utilize such materials.
- Reassessment – is the assigning of new assessed values to property, particularly real estate, as the result of a general, partial or individual reappraisal of the property.
- Remaining Economic Life – is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless.
- Remaining Value – is the value corresponding to the remaining useful life of the machinery.
- Replacement or Reproduction Cost – is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable substitute property, or the cost of reproducing a new replica of the property on the basis of current prices with the same or closely similar material.
- Residential Land – is land principally devoted to habitation.
- Orchard – is land principally devoted to planting of fruit trees not specifically named herein for commercial purposes.
- Irrigated Riceland – is land devoted principally to the planting of palay and served/provided irrigation by government entities.
- Appraiser/Assessor – one who conducts appraisals; specifically, one who possesses the necessary qualifications, ability and experience to execute or direct the appraisal of real or personal property.
- Arm’s Length Transaction – a transaction freely arrived at in the open market, unaffected by abnormal pressure or by the absence of normal competitive negotiation as might be true in the case of a transaction between related parties.
- Assessment Operations – is a means of assigning on every parcel of land and upon all taxable improvements on such lands, the market value, and assessment level to be able to arrive at an assessed value for each land and each improvement.
- Benchmark – is a reference point from which the value of other similar properties is measured. To be consistent in determining the quality level of construction, quality class benchmarks for class, age and type of structure shall be established.
- Buildings – are permanent structures adhered to the land usually used for habitation, commercial and industrial purposes and for other various uses and not mere superimposition on the land like a “barong barong” or Quonset fixtures.
- Bundle of Rights – is the combination of rights associated with the ownership of real property e.g., the right to use, to sell, to lease, to give away, or to exercise all of these rights.
- Capitalization – is the process of converting into present value (or obtaining the present worth of) a series of anticipated future periodic installment of net income.
- Carport – an open-sided roofed automobile shelter that is usually formed by an extension of the roof from the side of a building
- Cemetery – an area or place where the dead are buried, a place of burial set apart either by municipal authority of private enterprises for the internment of the dead, etc., and this includes whatever property is necessary for use of the cemetery such as paths, ornamentation and the land within the cemetery limits acquired for but not yet actually used for the burial of the dead.
- Charitable Institutions – refer to anybody of persons or trust established for charitable purposes such as (1) relief of poverty; (2) advancement of education; (3) advancement of religion; and (4) other purposes of a charitable nature beneficial to the community. The word charitable in a legal sense includes every gift for a general public use, to be applied consistent with existing laws, for benefit of an indefinite number of person, and designed to benefit them from an educational, religious, moral, physical or social standpoint.
- Church – is a building set apart for public worship; a place of worship of any religion.
- Convent – a building including the land it actually occupies and the adjacent ground or vegetable garden for the use of the parish priest in the ordinary life. It is also defined as a “monastery or nunnery”.
- Cooperative – is a duly registered association of persons with a common bond of interest, who have voluntarily joined together to achieve a lawful common or social economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
- Cost – is the amount of money necessary to produce, create or manufacture an item of property.
- Data Computerization – encompasses all activities leading to the establishment and operationalization of a computer-assisted data base for Real property Tax Administration (RPTA) among which includes the familiarization/training of key personnel, encoding and validation of data acquisition and installation of standard RPTA system, generation of reports and preparation of complementary manual of procedures.
- Depreciated Replacement Cost – the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimization.
- Depreciation – refers to the adjustments made to the costs of reproducing or replacing the asset to reflect physical deterioration and functional (technical) and economic (external) obsolescence in order to estimate the value of the asset in a hypothetical exchange in the market when there is no direct sales evidence available.
- Economic Life – refers to the period over which an asset is expected to economically usable by one or more users.
- Foreshore Land – a strip of land along the seashore, the use of which may or may not be granted by the government to private persons or corporations.
- Garage – a building or compartment of a building used for housing an automobile vehicle.
- Highest and Best Use – the most probable use of a property which is physically possible, appropriately justified, legally permissible, financially feasible and which results in the highest value of the property being valued.
- Historic Properties – are assets that embody a cultural, historic, and/or architectural heritage. These are real properties that are publicly recognized or officially designated by a government-chartered body as having cultural or historic importance because of its association with a historic even or period, with an architectural style, or with the nation’s heritage.
- Income Approach – an appraisal technique used to estimate the market value of a property on the basis of the income it produces or is capable of producing. The value is estimated by capitalizing the estimated future income, either gross or net. This approach is based on the theory that a property is worth what it will earn. Value is the present worth of future benefits arising from the ownership.
- Land Use – refers to the manners of utilization of land, including its allocation, development and management.
- Land Use Conversion – refers to the act or process of changing the current use of a piece of agricultural land into some other uses.
- Market Data Approach – is also known as the Comparative Approach. Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings. It is a process of analyzing sale prices of the property being appraised. The reliability of this technique is dependent upon: a) the availability of comparable sales data; b) the verification of the sales data; c) the degree of comparability or extent of adjustment necessary for the time differences; and d) the absence of non-typical conditions affecting the sales price.
- Mass Appraisal – is the practice of appraising multiple properties as of given date by a systematic and uniform application of appraisal methods and techniques that allow for statistical review and analysis of results.
- Memorial Parks – are lands exclusively used as burial ground and developed for profit.
- Mosque – is an Islamic place of public religious worship.
- Non-Profit Cemetery – is a cemetery owned and operated by the government, by religious corporations, by associations and societies exclusively for its members and not for profit.
- Parsonage – is ministerial residence used in connection with any place of worship of any denomination. It shall include those appurtenant to a cathedral, to a synagogue, or to a country-meeting house.
- Property, Plant, Machinery and Equipment (PPM&E) – are tangible or physical assets intended for use on a continuing basis in the activities of an entity including land and buildings, plant, machinery and equipment; and other categories of assets, suitably identified; less accumulated depreciation. These are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and are expected to be used during more than one period.
- Public Building – is a building that serves some community or social function and is held in public ownership. Examples include courthouses, municipal centers, schools, prisons, police stations, military facilities, libraries, hospitals, clinics, and social or public housing.
- Replacement Cost – the cost of replacing an asset with an equally satisfactory substitute asset; normally derived from the current acquisition cost of a similar asset, new or used, or of an equivalent productive capacity or service potential, replacement cost assumes the use of modern materials, techniques and designs.
- Reproduction Cost – the cost to create a virtual replica of the existing structure, employing the same design and similar building materials.
- Residual Value – the estimated amount that an entity would currently obtain from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
- Specialized Property or Special Purpose Properties – are properties rarely if ever sold in the market, except by way of sale of the business or entity of which it is part, due to uniqueness arising from its specialized nature and design, its configuration, size, location, or otherwise. This includes golf course, memorial parks and cemeteries, hospitals, schools, gas stations, shopping malls and centers, condominiums, quarries, properties in the extractive industry, convention centers and cinemas.
- Public Use – means public usefulness, utility, or advantage, or what is productive of general benefit, so that any appropriating of private property by the State under its right of eminent domain, for purposes of great advantage to the community, is a taking for public use.
- Real Estate – the physical land and all those items, which are attached to the land. It is the physical, tangible entity which can be seen and touch, together with all the additions on, above, or below the ground.
- Real Property – includes all the rights, interests and benefits related to the ownership of real estate.
- Real Property Tax Collection Operations – involves collection of all real property taxes and penalties due and payable to the local government unit (LGU) through the positive and total enforcement of tax laws and their penal provisions.
- Records Conversion and Management – is the establishment and maintenance of permanent official records and files in the office of the Provincial, or Municipal Assessor so that an updated and regular listing of all properties is readily available. It also serves as a basis for a more accurate collection of real property tax and establishes the important link between assessment and tax collection operations.
- Reclassification of Agricultural Lands – refers to the act of specifying how agricultural lands shall be utilized for non-agricultural uses such as residential, commercial or industrial, as embodied in the land use plan, subject to the requirements and procedures for land use conversion. It also includes the reversion of non-agricultural land to agricultural use.
- Religious Purposes – means a use of such property by a religious society or body of persons as a stated place for public worship, Sunday schools and religious instructions.
- Remaining Value – is the value corresponding to the remaining useful life of the machinery.
- Residential Machinery – are those machines, equipment, appliances or apparatus permanently attached to residential land and/or buildings.
- Socialized Housing – refers to housing programs and projects covering houses and lots or home lots only undertaken by the government or the private sector for the underprivileged and homeless citizens which shall include sites and service developments, long-term financing, liberalized terms on interest payments, and such other benefits in accordance with R.A 7279.
- Tax Map – is a graphic representation of a portion of the earth’s surface drawn to scale on standard size drawing material, having property lines and jurisdictional boundaries delineated showing all parcels of real property and identifying each separate real property ownership by a unique number. A tax map is also referred to as Property Identification Map.
- Tax Mapping – is a highly accurate method of field operations for identifying real property units, defining property boundaries, determining actual use, and discovering undeclared properties for taxation purposes.
- Useful Life – is the period of time over which the property may reasonably be expected to perform the function for which it was designed or intended.
- Utility – in generally economic theory is the capacity of an economic good to satisfy human desires or needs.
- Valuation, Date of – the date the conclusion or opinion rendered in an appraisal is applicable and valid. The date of appraisal identifies the market conditions that existed when the appraisal was made.
- Zoning – is the delineation/division of a municipality into functional zones where only specific land uses are allowed. It directs and regulates the use of all lands in the community in accordance with an approved or adopted land use plan for the municipality. It prescribes setback provisions, minimum lot sizes, building heights and bulk.
- Zoning Ordinance – refers to a local legislation approving the development control/zoning plan and providing for the regulations and other conditions on the uses of land.
- Idle Lands – refers to land not utilized or unimproved by the property owner regardless of an area shall be subject to additional ad valorem tax.
IMPOSITIONS OF LEVY, APPRAISAL AND VALUATION ON REAL PROPERTIES
SECTION 1. LEVIES ON REAL PROPERTY. The following shall be the subject of levy:
- Real Properly Subject to Tax. All real properties such as lands, Buildings, machinery, and other improvements located within the City of Tabaco shall be subject to real property taxation.
- Exemption from Real Property Tax. The following are exempted from payment of the real properly tax:
- Real Property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted for a consideration or otherwise to a taxable person.
- Charitable institution, churches, parsonages or convents appurtenant thereto, mosque, non-profit or religious institution and all lands. buildings and improvements actually directly and exclusively used for religious charitable or educational purposes,
- All machinery and equipment that are actually, directly and exclusively used by local water districts and government owned or–controlled corporations (GOCCs) engaged in the supply and distribution of water and/or generation and transmission of electric power
- All real property owned by duly registered cooperatives as provided for under RA 6938; and
- Machinery and equipment used for pollution control and environmental protection.
- Additional ad valorem tax of five percent (5%) on idle lands in addition to the basic real property, if any.
SECTION 2. APPRAISAL OF REAL PROPERTY. All properties in the City of Tabaco whether taxable or exempt, shall be appraised at the current and fair market values prevailing in the City in accordance with the rules and regulations promulgated by the Department of Finance (DOF) for the classification, appraisal and assessment of real property pursuant to the provisions of the Local Government Code of 1991.
SECTION 3. 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, in the City of Tabaco, or their duly authorized representative, to prepare, or cause to be prepared, and file with the City Assessor of Tabaco, 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, as determined by the declarant. Such declaration shall contain a description of the property sufficient in detail to enable the assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein referred to shall be filed with the assessor concerned once every three (3) years.
SECTION 4. CLASSES OF REAL PROPERTY FOR ASSESSMENT PURPOSES. For purposes of assessment, real property shall be classified as residential, agricultural, commercial, industrial, mineral, timberland or special.
The City is required to prepare a schedule pursuant to the rules and regulations promulgated by the Department of Finance (DOF).
SECTION 5. SPECIAL CLASSES OF REAL PROPERTY. All lands, buildings, and other improvements thereon 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.
SECTION 6. VALUATION OF REAL PROPERTY. In cases where
- Real property is declared listed for taxation purposes for the first time;
- There is an on-going general revision of property classification and assessment; or
- A request is made by the person in whose name the property is declared,
The City assessor or his duly authorized deputy shall, in accordance with the provision of this Regulations, make a classification, appraisal and assessment of the real property listed and described in the declaration irrespective of any previous assessment or taxpayer’s valuation thereon.
Provided, however, that the assessment of real property shall not be increased oftener than once every three (3) years except in case of an improvement substantially increasing the value of the said property or of any change in actual use.
- Undeclared real property found at any time or during a general revision of real property assessments shall be listed, classified, and valued like similar properties in the City on the basis of the schedule of base unit construction cost in force, and assessed also like similar properties in the City and shall be subject to back taxes of not exceeding ten (10) years from the initial assessment.
- Owners of real properties may request the City Assessor to revise the assessment of real property, regardless of existing assessment or valuation declared by the owner under the following circumstances
- if the real property has suffered permanent loss of value by reason of typhoon, flood, fire or other calamity
- if improvements have been introduced to the real property or there has been a change in the classification or use of property, such as agricultural lands converted into urban subdivision or residential to commercial. In the absence of such new improvements or change of use, the assessment of real property shall not be changed during the three -year period.
- Effectivity of assessment under the foregoing cases shall be as follows:
- Cancellation or reduction of assessment shall be made effective the quarter next following the quarter during which the cause or ground for cancellation or reduction has occurred.
- Increased assessment shall be made effective the year following the year of re-assessment, i.e., revised assessment made this year (2017) shall be made effective in 2018.
- No re-assessment of real property should be made in the absence of any aforementioned circumstances.
SECTION 7. DATE OF EFFECTIVITY OF ASSESSMENT OR RE-ASSESSMENT. All assessment made after the first day of January of any year shall take effect on the first day of the succeeding year.
Provided, however that the re-assessment of real property due to its partial or total destruction or to a major change in its actual use or to any great and sudden inflation or deflation of real property values, or to any other abnormal causes, shall be made within ninety days front the date any such cause or causes occurred. The re-assessment shall take effect at the beginning of the following quarter. If he is not satisfied with the action of the City Assessor in the assessment of his property or if there is gross illegality in the assessment he may request to the Local Board of Assessment Appeals of the City within sixty (60) day’s from the date of receipt by him of the written notice of the assessment of his property.
- Revision of Assessment. An assessment revised this year 2018 takes effect the following year 2019.
- Total or partial destruction of real properly refers to the destruction on individual property or property within an area affected but not on the basis of a general revision.
- Cancellation or reduction of assessment caused by total or partial destruction of property takes effect on the first day of the quarter following the quarter in which the total or partial destruction occurred. Thus, if the property was totally or partially destroyed on July 5, 2017, its assessment shall be cancelled or reduced effective October 1, 2017 (fourth quarter).
Accordingly, if the same property was totally destroyed, only the first to the third installment of the taxes due for the first to the third quarter of that year on the basis of the cancelled assessment arc collectibles, if partially destroyed only the first to the third installment of the taxes due for the first to the third quarter of that year on the basis of the cancelled assessment, and the fourth installment of the taxes due for the fourth quarter of that year on the basis of the reduced assessment effective October 1, 2017 are collectibles.
- When the property is totally destroyed, its assessment shall be cancelled by a Notice of Cancellation of Assessment. When the property is partly destroyed, a revised tax declaration shall be prepared and issued to cancel the tax declaration covering the original assessment. On the reverse side of the revised tax declaration, the quarter and year of assessment instead of the year only must be stated as the effectivity or commencing of the tax.
SECTION 8. ASSESSMENT OF PROPERTY SUBJECT LO BACK TAXES. Real Property declared for the first time shall have back taxes assessed against it for the period during which it would have been liable, if assessed from the first in proper course but in no case for more than ten years prior to the year of initial assessments.
Provided, however, that the back taxes shall be computed on the basis of the applicable schedule of values in force during the corresponding period.
- Basis for computation of back taxes not exceeding ten years – Undeclared property if assessed is subject to back taxes for not exceeding ten years Thus, if an undeclared real property has not ever been assessed since 1999 and if assessed today, the new assessment thereof takes effects as of 2018. The rule is to include year of assessment when counting back taxes not exceeding ten years.
- Undeclared real property subject to back taxes shall be classified and valued on the basis of the schedule of base market values in force during the period the property was undeclared and un-assessed. Thus, if property has never been declared since 1999 and is assessed today, and assuming that there was only one schedule of base market value in force from 1999 to present, that schedule of base market value shall be made the basis for the computation of the market value of the property from 1999 to 2017. As “actual use” was then made a criterion in the percentage assessment of real property, that market value multiplied by the applicable assessment level then enforced is equivalent to the assessed value of that property, which should be made the basis for the computation of back taxes for the years 1999 to 2017.
SECTION 9. Undeclared buildings and other improvements shall be exempted from the foregoing rule – the directive of this section on the collection of back taxes on the basis of the schedule of market values in force during the period.
Back taxes should be collected shall only be applied to lands, and not to building and other structures as well as machinery, buildings and other structures or machinery depreciated by the passage of time and that depreciation may be physical, functional and/or economic. Estimating depreciation for every period is an impossible task, depreciation does not operate uniformly and regularly on that class of property. The amount of depreciation accumulates from year to year and is depreciated or estimated only at the time of appraisal of the property.
Due to the obvious difficulty in estimating the amount of depreciation, undeclared and un-assessed buildings and other structures or machinery subject to back taxes shall be classified and valued according to the schedule of base unit construction cost in use or replacement/ reproduction cost of machinery at the time of appraisal and shall be assessed like similar buildings and other structures or machinery in the locality to derive their taxable or assessed values, which shall be made the basis for the collection of back taxes not exceeding ten (10) years.
SECTION 10. BACK TAXES, WHEN SUBJECT TO OR NOT SUBJECT TO PENALTIES/INTEREST. If taxes are paid on or before the end of the quarter following the date the notice of assessment was received by the owner or his representative, no interest for delinquency shall be imposed thereon, otherwise, such taxes shall be subject to an interest at the rate of two (2) percent per month or a fraction thereof from the date of receipt of the assessment until such taxes are fully paid.
SECTION 11. NOTIFICATION OF NEW OR REVISED ASSESSMENT. When the real property is assessed for the first time or when an existing assessment is increased or decreased, the City Assessor shall, within thirty (30) days, give a written notice of such new revised assessment to the person in whose name the property is declared. The notice may be delivered personally to such person or to the occupant in possession, if any, or by mail to the last known address of the person to be served, or thru the assistance of the Punong Barangay.
- Purpose of Service of Notice of Assessment – Although the real property tax levied against the real property, it is the owner who pays the tax. After the tax is fixed, he is entitled to a hearing on the assessment of his property. Notice and hearing constitute part of due process (not strictly judicial) in taxation. If he is not satisfied with the action of the assessor in the assessment of his property, he may, within sixty (60) days from the date of receipt by him of the written notice of the assessment of his property, request to the Board of Assessment Appeals of the City where the property is located. If he does not appeal within the said period, he will be deprived of his right to be heard in the board.
- To whom and where the notice shall be delivered – The written notice together with the owner’s copy of the tax declaration shall be addressed to the person in whose name the property is declared. It may be delivered to him personally or to the account in possession of the property, or by mail to the last known address of the owner thru the assistance of the Punong Barangay.
If personally delivered to the owner or person in possession of the property, the person serving the notice shall secure the signature of the owner or occupant on the duplicated copy of the notice, with a notation of the date when notice was served and identification, whether the recipient is the owner or occupant of the property.
If assistance of the Punong Barangay is secured, he should be requested to place his signature on the duplicate copy of the notice.
If the notice of assessment is coursed through the mail, the notice of assessment and owner’s copy of the tax declaration shall be registered with return card.
For obvious reasons, the duplicate copies of the notice of assessment signed by owners or occupants of property and the return card shall be filed in the office of the City Assessor. Those are important in ascertaining whether appeals filed by the owners of real property are filed within the reglamentary period of sixty (60) days from the date of receipt of such notices.
The notice of assessment and owner’s copy of the tax declaration shall be delivered or mailed to property owners within thirty (30) days from entry of tax declaration covering assessments of property in the Record of Assessments.
SECTION 12. ACTUAL USE OF REAL PROPERTY AS BASIS OF ASSESSMENT. Real property shall be classified, valued and assessed on the basis of its actual use regardless of where located, whoever owns it and whoever uses it (Sec 217)
- Actual Use refers to the purpose for which the property is principally or predominantly utilized by the person in possession of the property (Sec 199 (b))
- Assessment is the act or process of determining the value of the property, or proportion thereof, subject to tax including the discovery, listing and appraisal of properties (Sec 199 (f))
Assessment is the determination of the value of the things subject to the tax and the amount of the tax paid by each individual (dollar Savings Bank vs. United States. US 337. Cited in Martin’s Revised Administrative Code, Vol. 2, p. 493) Section I
RULES ON ASSESSMENT OF LANDS
SECTION 1. RULES FOR ASSESSMENT OF LANDS.
- Lands actually and principally used for residential, agricultural.
- Commercial/industrial purposes shall be classified and valued according to the schedule of unit base market values and assessed at their corresponding level of assessment.
- A parcel of land classified and valued as residential, commercial/industrial or agricultural occupied by a building used both for residential, commercial/ industrial or agricultural purposes shall be classified and valued according to the schedule of unit base value and assessed on the basis of the predominant used of the building or buildings. If the predominant use of the building is residential, the assessment level fixed thereon for residential land shall be applied on the market value of the lot or parcel determined on the basis of the schedule of base market values. If commercial/industrial, the assessment level for commercial / industrial shall be applied on the market value of the lot or parcel determined on the basis of the schedule of base market value.
- Lands located in areas of mixed uses, such as residential with commercial or industrial or vice versa, the actual or principal use of the land shall govern the classification, valuation and assessment thereof. If the actual and principal use is residential, such land shall be classified, valued and assessed as residential. If the actual and principal use is commercial or industrial, the same shall be classified, valued and assessed as such.
- However, equally not applicable in this case, is the issue on actual use which is defined under Section 199 (b) of the same Code as the purpose for which the property is principally or predominantly utilized by the person in possession thereon. Actual use as used in the Code should not be construed as a criteria for the classification and valuation of real properly, but as a determining factor in applying the appropriate percentage or assessment level to market value of property computed on the basis of the Schedule of Market Value (SMV) or Schedule of Basic Unit Construction Cost (Real Property Taxation, Title II. Book II. RA 7160).
- For vacant or idle lands located in a purely residential, the same shall be classified and assessed as residential. If such land is located in a purely commercial, the same shall be classified and assessed as commercial. If the idle lot is located on area that have different base value (mix land uses), the higher value shall be used in the computation thereof.
- Agricultural lands convertible into urban subdivision such as residential, commercial or industrial shall be classified, valued and assessed as agricultural until such time that they shall have been converted and developed into such subdivisions This rule shall also apply to lands already approved by proper authorities as subdivision but have not yet been actually developed for the purpose.
- As soon as a portion of the subdivision is finally divided, converted and developed into residential lots, the same shall be valued and assessed like similar lots in the locality. Portions of the subdivision not yet developed and convened into residential, commercial or industrial lots shall be classified, valued and assessed as agricultural.
- Corner influences. If the lot or parcel of lands is located on streets or roads that have a different base value, the higher value shall be used in the computation thereof.
- Road lots shall be valued on the basis of where it is located but not below the schedule or market value of the lots situated in the area. Unless already donated or turned over to the city, shall be listed in the name of the subdivision owner.
- Lands actually, directly and exclusively used for religious. Charitable or educational purpose which are however, located in an area of mixed land use, such as residential with commercial or industrial, the predominant use of the land in that area shall govern the classification. Valuation and assessment of those lands used for religious, charitable or educational purposes.
- Lands owned by the Republic of the Philippines or any political subdivision shall be classified and assessed like similar lands in the locality.
SECTION 2. APPRAISAL OF SUBDIVISION. Subdivisions are classified according to the degree or extent of development and facilities, regardless of location within the City Therefore, their respective schedule of base market value shall be independently established based from the sales analysis of the lots therein.
SECTION 3 SPECIAL PROPERTIES (LANDS)
- Lands actually, directly and exclusively used for cultural or scientific purposes, located in residential, commercial or industrial areas shall he classified and valued as residential, commercial or industrial in accordance with the schedule of base market values determined on the basis of that schedule.
- If these special classes of lands are however located in areas of mixed land uses, such as residential with commercial or industrial. The predominant use of the lands in that area shall govern the classification and valuation of these special classes of land and shall be assessed at the corresponding levels of assessment.
- Lands owned by the local water district and government owned or controlled corporation rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power, located in residential, commercial or industrial areas likewise be classified in accordance with the schedule of base market value and shall be assessed at ten percent (10%) of the market value.
RULES AND PROCEDURES IN THE CLASSIFICATION, APPRAISAL AND ASSESSMENT OF BUILDINGS & OTHER IMPROVEMENTS
SECTION 1. RULES AND PROCEDURES IN THE CLASSIFICATION, APPRAISAL AND ASSESSMENT OF BUILDINGS AND OTHER IMPROVEMENTS.
- The valuation of buildings and other structures used exclusively for residential purpose shall be classified and valued in accordance with the Proposed Schedule of Building Cost as of 2007, the table of addition and Deduction factors, the Table of Depreciation, and shall be assessed by applying the corresponding assessment levels which arc applicable to all Barangay within the territorial jurisdiction of the city fixed by ordinances of the Sanggunian of the City pursuant to Section 218 of the LGC.
- A building used for both residential and commercial or industrial purposes shall be classified and valued in accordance with the schedule of base unit cost of construction for building and predominant use of the building.
- Churches, parsonages, convents, mosque and other improvements used actually, directly and exclusively for religious or educational purposes shall be classified and valued in accordance with the schedule of base unit cost of construction for buildings and other structures.
- Buildings and other improvements owned by the Republic of the Philippines on any political subdivision shall be classified, valued and assessed like similar building and improvements in the area.
- Condominium buildings, including town houses, shall be valued as one building on the basis of the prescribed rates fixed in the schedule each condominium or town house unit separately owned shall be assessed separately for its share of the total market value in portion to its owner’s fractional interest in the whole building.
- Special properties (building and other improvements)
- Building and other improvements actually, directly and exclusively used for hospital, cultural or scientific purposes, shall be classified and valued according 10 the schedule of base unit construction cost, and shall be assessed at 15% percent of their current fair market values.
- Building owned by the local water district and government owned or controlled corporation rendering essential public services in the supply and distribution of water and / or generation and transmission of electric power shall likewise be classified in accordance with the schedule of base market value and shall be assessed at ten percent (10%) of their current fair market values.
- Buildings and other improvements shall be appraised at their current and fair market values on the basis of the schedule of base unit cost of construction for building and other structures.
If the building and improvements are of a kind not covered by the schedule of base unit construction cost, they shall be valued at their fair market value at the time of appraisal and shall be assessed like similar building and improvements in the locality.
- Newly constructed building and other structure or those that became habitable or useful initially during the year of revision shall be classified and valued on the basis of the Reproduction or Replacement Cost New (RCN) approach to valuation on the basis of the schedule of base unit cost of construction for buildings and other improvements and assessed by applying the corresponding assessment level fixed therefore.
- The reassessment of building and other improvements which are existing, shall be made on the basis of the Reproduction or Replacement Cost New Less Depreciation (RCNLD) approach to valuation on the basis of the Schedule of Base Unit Cost of Construction for Building and Other Structures and assessed by the application of the corresponding assessment level fixed thereof.
- Assessment of high-rise buildings shall be valued based on the prescribed rates per floor Fixed in this schedule. Each floor shall be assessed separately
Floor Base Unit Value
5th and above 80%
RULES AND PROCEDURES IN THE CLASSIFICATION. APPRAISAL AND ASSESSMENT OF MACHINERY
SECTION 1. RULES AND PROCEDURES IN THE CLASSIFICATION, APPRAISAL AND ASSESSMENT OF MACHINERY.
- Machinery shall be appraised at their current and fair market value. The fair market value of the brand-new machinery shall be the acquisition cost thereof In all other cases, the fair market value shall be determined by dividing the remaining economic life by the economic life and multiplied by the replacement or reproduction cost of said machinery.
- Acquisition or Original cost for brand new or newly acquired machinery not yet depreciated and appraised within the year of acquisition refers to the actual cost of the machinery to its present owner plus the cost of transportation, handling and installation at the present sue.
- Replacement or Reproduction Cost – refers to the cost that would be incurred on the basis of current prices in acquiring an equally desirable substitute property on the basis of current prices with the same or closely similar materials.
- Economic Life – refers to the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized
- Remaining Economic Life – refers to the period of time expressed in years from the date of appraisal to the date when the machinery become valueless
- Remaining Value – refers to the value corresponding to the remaining useful life of the machinery
- Basis of establishing replacement or reproduction cost
- Imported machinery if the machinery of equipment is imported, the replacement or reproduction cost (new) shall he acquisition cost which would normally include such cost as freight and insurance. Bank charges, arrastre and handling, custom duties and taxes, cost of inland transportation and handling, and significant installation cost at the present site.
The dollar cost of the machinery shall be convened to peso cost by multiplying the acquisition cost by the quotient of the current dollar exchange rate divided by the dollar exchange rate at the time of acquisition
The dollar exchange rate shall be based on the table of dollar rate officially fixed by the Central Bank of the Philippines
Machinery or equipment purchased in other foreign currencies shall he similarly convened to peso cost according to the same procedure
The currency exchange rate to be applied in determining the replacement or reproduction cost of machinery in connection with the general revision of property assessments shall be the rate obtaining in the year the revision started.
- Locally Manufactured Machinery The replacement or reproduction cost (new) of locally manufactured machinery shall be determined in similar manner as imported machinery by using the price index prepared and compiled by the National Statistic Office
- Basis of Determining the Current Fair Market Value of Machinery the current and fair market value of machinery through the use of the replacement or reproduction cost (new) approach valuation is determined as follows
Current and Fair Market Value Replacement or Reproduction cost (new) remaining Economic Life Economic life
- Depreciation allowance for Machinery Depreciation allowance for machinery shall be made at a rate not exceeding five (5°/o) percent of its original cost or its replacement or reproduction cost, as the case may be. for each year of use provided that the remaining value for all kinds of machinery shall he fixed at not less than twenty (20%) percent of such original, replacement or reproduction cost for so long as the machinery is useful and in operation.
SECTION 1. ASSESSMENT LEVEL DEFINED.
- Assessment Level is the percentage applied to the fair market value to determine the taxable or assessed value of the property (Sec 199 LGC).
- Assessment Level” distinguished from “Current” or “Effective Assessment Level” – when not qualified assessment level’ refers to those prescribed in the Code, otherwise known as statutory or legal assessment levels and applied to fair market values of real property determined on the basis of the schedule of base market value or the schedule of base unit construction cost.
“Current or Effective Assessment Level 1” on the other hand refers to the level of assessed values of real property actually sold as applied to their corresponding sales price during a certain period. That level may be ascertained only by conducting an assessed sales ratio study. The study has a two-fold purpose:
- to ascertain whether the statutory levels are being achieved or approximated and
- whether there is uniformity in the assessment of real property for taxation purposes in the city
“Assessment Level” fixed by law are affected by the rise and fall of real property values in the market If prices generally increase, the statutory levels would exceed the current or effective assessment level, if prices generally decrease, the statutory levels would fall below the current or effective assessment level.
- Assessed or taxable value as basis of computation of Tax – market value determined by assessors on the basis of the schedule of base market values or the schedule of base unit construction cost arc not the ultimate basis for the computation of real property tax The assessment level fixed in accordance with the code has to be applied to the market values of real property to derive their taxable or assessed values.
SECTION 2. ASSESSMENT LEVEL. The assessment levels to be applied to the Current and Market Value of Real Property to determine its assessed value shall be fixed by the Sanggunian Panlungsod of Tabaco for taxation purpose.
REVISED SCHEDULE OF FAIR MARKET VALUES
SECTION 1. REVISION OF SCHEDULE OF FAIR MARKET VALUES. The following Schedule of Fair Market Values for all Lands and Basic Unit Construction Cost for Buildings and other structures on new Constructions/Improvements whether for residential, commercial, agricultural and industrial uses in the City of Tabaco prepared by the City Assessor of Tabaco City pursuant to Presidential Decree No.921 in relation to Section 212 of RA 7160, otherwise known as the Local Government Code of 1991 and its Implementing Rules and Regulations, is hereby ADOPTED and APPROVED, as the basis for the classification, appraisal and assessment of real properties located in the City of Tabaco in the conduct of the General Revision of Real Property Assessment and Classification as mandated under Section 219 of the same code.
SECTION 2. SCHEDULE OF MARKET VALUES FOR RESIDENTIAL AND COMMERCIAL LANDS IN THE CITY OF TABACO:
For Residential, Commercial and Industrial Lands
|Barangay/Street/Subdivision/Vicinity||1999 SMV||Proposed 2016 SMV|
|Base Value||Sub-Class||Base Value||Sub-Class|
|From Malilipot boundary to San Ramon along the road (both sides)||250.00||R-3||1,800.00||R3|
|From San Ramon Bridge up to Tagas River along the road (both sides)||600.00||R-1||3,400.00||R1|
|From junction of Basud Road to the corner of Bocalbos road (both side) up to Tayhi Bridge||3,500.00||C-1||15,000.00||C1|
|From Tayhi Bridge up to the boundary of Malinao (both sides)||600.00||R-1||3,400.00||R1|
|From Pawa bridge to the boundary of Malinao (both sides)||250.00||R-3||1,800.00||R3|
|Starting from the junction of the Bocalbos Road to the corner of Bonifacio St.||3,500.00||C-1||15,000.00||C1|
|From corner of Bonifacio St. To M.H. del Pilar St.||600.00||R-1||3,400.00||R-1|
|JAIME BERCES STREET (LAWTON STREET)|
|Starting from the junction of V. Demetriou St. to the corner of M.H del Pilar St.||600.00||R-1||3,400.00||R1|
|Starting from the junction of Rizal St. to the corner of Bonifacio St.||600.00||R-1||3,400.00||R-1|
|SY YOCO STREET|
|Starting from the junction of Rizal St. up to Riosa St. (both sides)||2,250.00||C-2||10,000.00||C2|
|From the corner of Riosa St. up to the corner of Bonto Blvd. (both sides)||1,500.00||C-3||6,100.00||C3|
|A.U. BETTS STREET|
|Starting from the corner of Rizal St. to the corner of Bonifacio St.||2,250.00||C-2||10,000.00||C2|
|Starting from the Ziga Avenue to the corner of Demetriou Extension Street||3,500.00||C-1||15,000.00||C1|
|From Demetriou Extension to Sy Yoco (both sides)||2,250.00||C-2||10,000.00||C2|
|Interior lots of Barangay Sto. Cristo||600.00||R-1||3,400.00||R1|
|V. DEMETRIOU STREET|
|Starting from the junction of Gen. Luna Street to the corner of Rizal Street (both sides)||3,500.00||C-1||15,000.00||C1|
|Interior lots of
|From the junction of Ziga Avenue to the corner of Luna St.||3,500.00||C-1||15,000.00||C1|
|From the junction of Ziga Avenue to the corner of General Luna St.||3,500.00||C-1||15,000.00||C1|
|Starting from the junction of Ziga Avenue to the corner of J.B. Berces St.||3,500.00||C-1||15,000.00||C1|
|Starting from the junction of Ziga Avenue to the corner of Diaz St. (both sides)||3,500.00||C-1||15,000.00||C1|
|Starting from Diaz St. up to pier site (both sides)||2,250.00||C-2||10,000.00||C2|
|From the junction of the Gen. Luna St. to the corner of Diaz St. (both sides)||600.00||R-1||3,400.00||R1|
|From the junction of Ziga Avenue to the corner of A.U. Betts St. (both sides)||600.00||R-1||3,400.00||R1|
|Interior Lots of
|From the corner of A.U. Betts St. to Pier site (both side)||2,250.00||C-2||10,000.00||C2|
|Starting from the junction of Ziga Avenue to J.B. Berces St. (both sides)||600.00||R-1||3,400.00||R1|
|Starting from the junction of Ziga Avenue to the corner of J.B. Berces St. (both sides)||600.00||R-1||3,400.00||R1|
|From J.B. Berces St. up to the Pier Site (both side)||400.00||R-2||2,600.00||R2|
|Interior Lots of Barangay Tayhi and Barangay Bacolod||400.00||R-2||2,600.00||R2|
|M.H. DEL PILAR STREET|
|From the junction of Ziga Ave. to the corner of Gen. Luna St. (both sides)||600.00||R-1||3,400.00||R1|
|From the corner of Gen. Luna St. to Pier Site (both sides)||400.00||R-2||2,600.00||R2|
|From the junction of Ziga Avenue to Barangay San Roque||400.00||R-2||2,600.00||R2|
|From the junction of Ziga Avenue to the corner of Sta. Cruz St. (both sides)||400.00||R-2||2,600.00||R2|
|Starting from the junction of Ziga Avenue to the corner of Sta. Cruz St. (both sides)||3,500.00||C-1||15,000.00||C1|
|Interior Lots of Barangay Basud||600.00||R-1||3,400.00||R1|
|STA. CRUZ STREET|
|Starting from the junction of Bocalbos Road to the corner of A.A Berces St. (both sides)||2,250.00||C-2||10,000.00||C2|
|A.A. BERCES STREET|
|Starting from the junction of Ziga Ave. up to the corner of Zamora St. (both sides)||3,500.00||C-1||15,000.00||C1|
|From the corner of Burgos St. to the corner of Zamora St.||600.00||R-1||3,400.00||R1|
|Zamora St. up to inter-section of Bagumbayan St. (both sides)||400.00||R-2||2,600.00||R2|
|THOMAS CABILES STREET|
|From the corner of Ziga Ave. to the corner of Zamora St. (both sides)||3,500.00||C-1||15,000.00||C1|
|From the corner of Burgos St. to the corner of Zamora St.||600.00||R-1||3,400.00||R1|
|From Zamora St. Barangay Panal up to intersection of Karangahan Ave. (both sides)||400.00||R-2||2,600.00||R2|
|Starting from the junction of Tomas Cabiles St. to the corner of Bagumbayan St.||400.00||R-2||2,600.00||R2|
|Along Bagumbayan St. to Baranghawon (both sides)||400.00||R-2||2,600.00||R2|
|Starting from the junction of Ziga to the Barangay Panal Intersection (both sides)||600.00||R-1||3,400.00||R1|
|BARANGAYS WITHIN THE POBLACION AREA|
|BIG PROGRESSIVE BARANGAYS|
|All remaining Barangays not otherwise classified in the above mentioned sub-classification||60.00||R-6||900.00||R6|
|Happy Homes/Kare Subd. – TAGAS/COBO||600.00||RS-2||2,250.00||RS-2|
|Confessor – BOMBON||600.00||RS-2||2,250.00||RS-2|
|Jamaica – PANAL||750.00||RS-1||2,440.00||RS-1|
|TCLC Subdivison -GUINOBAT||400.00||RS-3||2,110.00||RS-3|
|Panal Subdivison -VILLANUEVA||500.00||RS-3||2,110.00||RS-3|
|Teacher’s Village -BANGKILINGAN||300.00||RS-3||2,110.00||RS-3|
|Calleja Subdivision -PAWA||300.00||RS-3||2,110.00||RS-3|
|Silverio Subdivision -SAN CARLOS||300.00||RS-3||2,110.00||RS-3|
|Herras Subdivision -SAN LORENZO||450.00||RS-3||2,110.00||RS-3|
|Deca Housing Corp -MATAGBAC||300.00||RS-3||2,110.00||RS-3|
|TAWAD Housing Project – MATAGBAC||300.00||RS-3||2,110.00||RS-3|
|JAMAICA -SAN ANTONIO||RS-3||2,110.00||RS-3|
|Cabangan Subdivision – CABANGAN||RS-3||2,110.00||RS-3|
|For Residential Lands – 20 meters|
|For Residential Lands – plus 10% base unit market value|
|For Commercial Lands-plus 20% base unit market value|
SECTION 3. SUB-CLASSIFICATION CRITERIA FOR URBAN LANDS.
- RESIDENTIAL LANDS.
- FIRST CLASS (R-1)
- Along wide or standard concrete road or street;
- Where high-upgrade apartments, posh residential buildings are predominantly situated;
- Where public utility transportation facilities were exceptionally regular towards major trading center
- Located next to commercial classified lands
- Where water, electrical and telephone are available
- Commands the highest residential land and value in the City.
- Free of squatters.
- SECOND CLASS (R-2)
- Along concrete or asphalted road;
- Where semi-high apartment and residential buildings are predominantly situated
- Where public utility transportation facilities are regular towards major trading center;
- Location next to the first class residential lands
- Where water, electric and telephone are available
- Commands lesser land value then the second class residential lands
- Free of squatters
- THIRD CLASS (R-3)
- Along all-weather roads;
- Where average grade residential buildings are situated
- Where public utility transportation facilities are regular towards major trading center
- Located next to second class residential lands
- Where water and electric facilities are available
- Lots located along the national highway, next to the second class residential area up to two kilometers (2kms).
- FOURTH CLASS (R-4)
- Along all-weather roads;
- Where low grade residential buildings are situated;
- Located next to the third class residential lands;
- Where public transportation facilities are irregular;
- Where source of water facilities are pumps to deep well
- FIFTH CLASS (R-5)
- Along all-weather roads
- Where residential buildings are still sparely constructed;
- Where public water and electrical facility sources are not readily available
- Located farthest residential land from trading center;
- Transportation facilities are exceptionally irregular
- Predominantly undeveloped residential area.
- RESIDENTIAL LAND SUBDIVISION. Residential land subdivision are classified according to the degree or extent of development and facilities regardless of location from the trading center of the city. The unit market value of the subdivision shall not, under any circumstances be less than that of adjoining lands, in accordance with the above criteria.
- COMMERCIAL LANDS
- FIRST CLASS (C-1)
- Located along concrete road
- Where the highest trading, social or educational activities of the city takes
- Where concrete or high grade commercial or business buildings are situated;
- Where vehicular and pedestrian flow are exceptionally busy;
- Apparently command the highest land value of the city.
- SECOND CLASS (R-2)
- Along concrete road
- Where Trading, Social (or educational) activities are considerably high, but fall short that of the first class commercial lands;
- Where semi-concrete commercial or business buildings are situated;
- Where vehicular and pedestrian traffic flow are considerably busy but fall short that of the first class commercial lands;
- Commands lesser value than the first class commercial lands
- THIRD CLASS (C-3)
- Along concrete road;
- Where trading, social or (educational) activities are significantly less than the second class commercial land;
- Where average grade commercial or business building are situated;
- Where vehicular and pedestrian flows are fairly busy;
- Commands lesser value than the second class commercial lands.
- C) INDUSTRIAL LAND
- FIRST CLASS (I-1)
- Along concrete or asphalted public road, pier, seacoast or navigable river;
- Location within a distance of not less than 1,000 meter but not more than 5,000 meters to the major trading center;
- Where property is extensively used for industrial purposes.
- Commands the highest industrial land value.
- SECOND CLASS (I-2)
- Along concrete or asphalted public road, pier, seacoast or navigable river;
- Located within a distance of not less than 1,000 meters but not more than 5,000 meters to the major trading centers;
- Where property is extensively used for industrial purposes.
- Commands lesser land value than the first class industrial lands.
- THIRD CLASS (I-3)
- Location within a distance of 5,000 meters to the major trading center;
- Where property is extensively used for industrial purposes.
- Commands lesser land value than the second class industrial lands.
SECTION 4. SCHEDULE OF MARKET VALUES FOR AGRICULTURAL LANDS.
LANDS CLASS AND BASE UNIT MARKET VALUE PER HECTARE
|(A) KIND OF LAND||1||2||3||4|
Nipa Land/Anahaw Land
Root Crop Land
Vegetable/Seasonal Crop Land (Watermelon, Squash, Pechay, Cabbage, Tomatoes)
Pili Land/Mahogany Land
Black Pepper Land
|(B) KIND OF IMPROVEMENT||1||2||3||4|
|Coconut Tree per FB
Abaca Plants per Ha.
Anahaw per tree
Mango per tree
Caragomoy per Ha.
Cacao per tree FB
Coffee per tree FB
Pilinut per tree FB
Jackfruit per tree FB
Avocado per tree
Santol per tree
Chico per tree
Banana per group
Papaya per tree
Bamboo per groove
Pepper per plant
Pineapple per hill
Lanzones per tree FB
Nipa Grooves per Ha.
Citrus per tree
Sampaloc per tree
Pomelo per tree FB
Mahogany per tree
Gemilina per tree
Narra per tree
SECTION 5. SCHEDULE OF BASE MARKET VALUE IN SPECIAL CLASSES OF LANDS.
- Cultural or Educational – ₱00
- Scientific – ₱00
- Religious – ₱00
- Cemetery/Memorial Park – ₱00
- Resort – ₱00
- Sports Center – ₱00
SECTION 6. BASE UNIT MARKET VALUE FOR QUARRIES (PER HECTARE).
Sand/Gravel/Earth Fill ₱ 46,660.00 ₱ 39,180.00
SECTION 7. BASE UNIT MARKET VALUE FOR PRIVATELY OWNED TIMBER AND FOREST LAND.
BASE UNIT PER HECTARE 1 2 3
₱ 71,300.00 ₱ 64,200.00 ₱ 55,650.00
SCHEDULE OF BUILDING COST PER SQUARE METER REVISION
SECTION 1. SCHEDULE OF BUILDING COST PER SQUARE METER REVISION 2016.
Type of Building
One Family Dwelling
|Family Dwelling (Duplex)
Multiple Family (Duplex)
Accessories of Row House
Garage, Quarters, Laundry House, Guard House
Hospital, Office, Hotel Buildings Condominium
|V-A||8,250 -8,810||9,890 -10,440||8,250 -8,260||10,290-10,780||6,600 -7,150||6,880 -7,430||13,750 -14,630|
|V-B||7,710 -8,250||9,330 –9,880||7,690 -8,240||9,670-10,220||6,040 -6,590||6,040 -6,590||12,600 -13,700|
|V-C||7,160 -7,700||8,770 –9,320||7,130 -7,680||9,110 –9,660||5,480 -6,080||5,750 -6,300||11,440 -12,540|
|IV-A||6,610 -7,150||8,210 –8,760||6,570 -7,120||8,550 –9,100||4,920 -5,470||5,190 -5,740||10,290 -11,390|
|IV-B||6,060 -6,600||7,650 –8,200||6,010 -6,560||7,990 –8,540||4,360 -4,910||4,630 -5,180||9,130 -10,230|
|III-A||5,500 -6,050||7,090 –7,640||5,450 -6,000||7,430 –7,980||3,800 -4,350||4,070 -4,620||7,980 -9,080|
|III-B||4,940 -5,490||6,530 –7,080||4,890 -5,440||6,870 –7,420||3,240 -3,790||3,510 -4,060||6,820 -7,920|
|III-C||4,380 -4,930||5,970 –6,520||4,320 -4,880||6,300 -6,860||2,670 -3,290||2,950 -3,500||5,670 -6,770|
|II-A||3,820 -4,370||5,400 –5,960||3,770 -4,310||5,740 -6,290||2,110 -2,660||–||4,510 -5,610|
|II-B||3,260 -3,810||4,840 –5,390||3,210 -3,760||5,180 -5,730||–||–||3,360 -4,460|
|II-C||2,700 -3,250||4,280 –4,830||–||4,620 -5,170||–||–||–|
|I-A||2,140 -2,690||3,720 –4,270||–||–||–||–||–|
|I-B||1,580 -2,130||3,160 –3,710||–||–||–||–||–|
ALECO POSTS – ₱ 12,320.00
TELEPHONE POSTS – ₱ 20,482.00
Type of Building
Theater Assembly Church House
Warehouse Storage, Industry Building, Camarin
Shopping Center, Hardware, Groceries
|Saw Mills & Lumber Sheds, Poultry House, Cattle Barn House, Piggery
|V-A||14,300 -17,050||8,140 -9,240||12,100 -13,750||13,220 -14,850||8,560 -9,660||5,940 -9,660||6,050 -7,150||6,480 -8,560|
|V-B||11,440 -14,190||6,930 -8,080||10,440 -11,990||11,440 -13,080||7,350 -8,450||7,350 -8,450||5,390 -5,940||–|
|V-C||9,130 -11,330||5,720 -8,020||8,680 -10,330||9,680 -11,330||5,500 -7,240||5,500 -7,240||–||–|
|IV-A||6,930 – 9,020||–||–||–||–||–||–||–|
|III-A||5,060 5,610||5,060 -5,610||7,370 -8,470||6,050 -7,700||4,290 -5,390||3,850 -4,400||4,400-4,950||–|
|III-B||–||3,850 -4,950||6,160 -7,260||–||–||3,190 -3,740||–||–|
|III-C||–||–||4,950 -6,050||3,850 -5,500||–||–||–||–|
|II-A||–||3,290 -3,840||3,740 -4,840||–||–||–||–||–|
SECTION 2. KINDS OF BUILDINGS.
- One Family Dwelling – A detached building designed for or occupied exclusively by one family.
- Two Family Dwelling – A detached building designed for or occupied exclusively by two (2) families living independently in their respective dwelling units.
- Multiple Dwelling – A building used as a house or residence of three (3) or more families living independently from one another, each occupying one or more rooms as a single house-keeping unit.
- Accessories of Row House – A house of not more than two stories composed of a row dwelling units entirely separated from one another partly by wall/s & with an independent entrance for each dwelling.
- Apartment House – A house with apartment for 5 or more families living independently of one another and doing their cooking on the premises, but with one or more entrance common to apartment.
- Apartment – A room or suite of 2 or more rooms designed and intended for or occupied by one family for living, sleeping and cooking purposes.
- Hotel/ Pension House – A building with more than 15 sleeping rooms usually occupied singly, where transients are provided with temporary lodging with or without meals, and no cooking facilities are provided in any individual suite.
- Motel – A lodging place especially designed for motorist characterized by separate outside entrances to individual sleeping accommodations and close-by parking.
- Boarding House/ Inns/ Hostel – A house containing not more than 15 sleeping rooms where boarders are provided with lodging and meals for a fixed sum paid by the month of the week, in accordance with previous arrangement.
- Lodging House – A building containing not more than 15 sleeping rooms where lodging is provided for a fixed compensation.
- Accessory Building – A building subordinate to the main building on the same lot and used for purposes customarily incidental to those of the main building such as servants, quarter, garage, pump house, laundry etc.
- Office Building – A building mainly used for stores and offices.
- Theater – A building specially designed for preparation of plays, operas, motion pictures, etc.
- Warehouse, Bodega – A buildings mainly used for deposit or storage.
- Supermarkets, Shopping Centers – A building used as a market (large) or store, operated in a part or self-service, cash carry basis.
- Factory Building – A building utilized for manufacturing goods or finished products, manufacturing plants.
- Sheds – A building used to house the saws machine and at the same time used as a stock house for finished lumber products.
- Gasoline Station Refilling Area – A building used to or as station for motorist.
SECTION 3. SCHEDULE OF DEPRECIATION.
Type of Building
In the excess of the above rate of annual depreciation, bigger rate may be granted for extra ordinary causes, if properly presented and described as in the case of the following:
- Damage due to catastrophe (earthquake, fire, deluge)
- Heavily damaged due to pest (termite, any or pest)
- Establish defects of construction
SECTION 4. DEPRECIATION ALLOWANCE.
|No. of Years||Type V||V-B||V-C||IV-A||IV-B||III-
|Each of 1st 5 Years||2.75||2.75||3||3.5||4||4.5||4.5||4.5||5||6||7.5|
|End of 2nd 5 Years||2.75||2.75||2.75||3.5||3.5||4||4||4.5||4.5||5||7|
|Each of 3rd 5 Years||2.5||2.5||2.5||3||3.5||3.5||4||4||4||4||5|
|Each of 4th 5 Years||2||2.5||2.25||2||3||3||3.5||3.5||3.5||3.5||–|
|Each Year after 20 Years||1||1.25||1.5||1.5||1.5||2||2||2||–||–||–|
|Years to get to Residual||45||38||35||34||27||25||23||21||20||18||15|
* Indicates that building may have ‘fully depreciated’ and reached residual value prior to conclusion of 20 year period.
SECTION 5. DEPRECIATION TABLE.
% DEPRECIATION (Represented by Remaining Percentage Good)
|Year||(Value at the end-of-year compared to new)
Type of Construction
Section 6. SCHEDULE OF ORDINARY SHED OTHER THAN TYPE (9) & (10).
COST PER SQ. M.
|3||Earth Fill Sub-base
Gravel Fill Floor Surface
SECTION 7. STALL. Add 10% of BUCC of Shed (Type (9) & (10)) and ordinary type that correspond to the classification of the stall to be assessed.
SECTION 8. EXTRA ITEMS AS COMPONENT PARTS OF BUILDINGS:
- Carport 35% of Base Unit Construction Cost (BUCC)
- Mezzanine 60% of BUCC plus additional cost for finishing
- Porch 40% of BUCC plus additional cost for finishing
- Balcony 45% of BUCC plus additional cost for finishing
- Garage 40% of Base Unit Value
- Covered 45% of BUCC plus additional cost for finishing
- Open 35-40% of BUCC plus additional cost for finishing
- Roof Deck
- Penthouse 30% of BUCC plus additional cost for finishing
- Covered 60% of BUCC plus additional cost for finishing
- Residential 70% of BUCC plus additional cost for finishing
- High Rise-Bldg. 45% of BUCC plus additional cost for finishing
- Tennis Court ₱ 50.00 per sq. meter
- 10 cm thick ₱ 180.00 per sq. meter
- 15 cm thick ₱ 220.00 per sq. meter
- 20 cm thick ₱ 250.00 per sq. meter
- 1 course ₱ 100.00 per sq. meter
- 15 cm thick ₱ 150.00 per sq. meter
- 20 cm thick ₱ 200.00 per sq. meter
- Wood ₱ 80.00 per sq. meter
- 10 cm thick ₱ 250.00 per sq. meter
- 15 cm thick ₱ 300.00 per sq. meter
- 20 cm thick ₱ 350.00 per sq. meter
- Reinforced Concrete ₱ 200.00 per sq. meter
- Steel Grill ₱ 600.00 per sq. meter
- Interlink Wire ₱ 300.00 per sq. meter
- Excess Heights
- Residential and Commercial, Add 20% of Base Unit Value for every meter in excess of 3m
- Bodega and Factory, add 15% of Base Unit Value for every meter in excess of 4.50 meters
- Painting – if building is not painted deduct 10% percent of the basic rate.
- Second Hand Material – if the building has used second hand materials, deduct five to ten percent (5 – 10) percent
- Floor Finishing:
Marble Slabs ₱ 3,000.00 per sq. meter
Marble Tiles ₱ 2,500.00 per sq. meter
Narra ₱ 2,400.00 per sq. meter
Wood Tiles ₱ 1,800.00 per sq. meter
Tiles ₱ 1,100.00 per sq. meter
Vinyl Tiles ₱ 750.00 per sq. meter
Washout Pebbles ₱ 500.00 per sq. meter
Unglazed Tiles ₱ 2,200.00 per sq. meter
Granite ₱ 2,500.00 per sq. meter
- Special Glass Panels/Sidings
- CHB Fence ₱ 1,200.00
- With Steel Gate only ₱ 300.00 per sq. meter
- With Finishing ₱ 350.00 per sq. meter
- With Iron Grills only ₱ 350.00 per sq. meter
Use the same rate of the floor finishing in a, b, c and l, as indicated above
- Double Walling (Ordinary Plywood)₱ 00
- Double Walling (Narra Panelling) ₱ 3,500.00
- Glazed White Tiles ₱ 00
- Glazed Color Tiles ₱ 00
- Fancy Tiles ₱ 00
- Synthetic Rubble ₱ 00
- Bricks ₱ 1,500.00
- Ceiling: (below Concrete Floor)
- Ordinary Plywood (1/4 Marine) ₱ 1,900.00
- Luminous Ceiling ₱ 2,500.00
- Acoustic ₱ 2,200.00
- Special Finish ₱ 3,200.00
SECTION 9. CLASSIFICATION OF BUILDINGS AND OTHER IMPROVEMENTS. Buildings shall be classified according to their use and construction characteristics and unit values established for each class and sub-class together with the set of addition and deduction factors.
Buildings shall be classified according to their characteristics as follows:
TYPE I TEMPORARY MAKESHIFT
Type I buildings shall be of wood construction. The structural elements may be any of the materials permitted as follows: Nipa Houses and similar will fall under this type.
TYPE II WOODEN MATERIALS
Type II buildings shall be of wood construction with protective fire-resistant materials and one hour fire resistive throughout: Except, that permanent non-bearing partitions may use fire retardant treated wood within the framing assembly.
TYPE III STRONG MATERIALS
Type III buildings shall be of masonry and wood construction. Structural elements may be any of the materials permitted by this code: Provided, that the building shall be one hour fire resistive throughout. Exterior wall shall be of incombustible fire-resistive construction.
- First Group wooden structural framings, walls on the first floor, and third group walls on the second floor, G.I roofing and RC flooring on the first floor.
- First group wooden structural framings, CHB Walls, G.I Roofing and RC flooring
- First group wooden posts, girders, grits, flooring, windows, walls and heads, third group floor joist and roof framing and sidings, and G.I roofing
- Third group wooden structural framings, flooring and sidings and G.I roofing.
TYPE IV MIXED CONCRETE
Type IV buildings shall be of steel, iron, concrete, or masonry construction, walls, ceiling and permanent partitions shall be of incombustible fire-resistive construction: Except, that permanent non-bearing partitions of one-hour fire resistive construction may use fire-retardant treated within the framing assembly.
- Concrete Columns, beams, walls and flooring but wooden roof framing and G.I roofing; even if walls are in CHB, kitchen and T&B are reinforce concrete.
- Concrete columns and beams but hollow blocks walls, wooden roof framing and G.I roofing.
TYPE V REINFORCED CONCRETE
Type of building shall be fire-resistive. The structural elements shall be of steel, iron, concrete, or masonry construction. Walls, ceiling and permanent partitions shall be incombustible fire-resistive construction.
- RC Columns, beams, walls and floors and Tegula or tile roofing.
- Same as “A” but walls are hollow blocks, RC Roofing
- Structural Steel or reinforced concrete columns, beams, CHB walls and permanent partitions, steels roof framing, GI roofing.
TYPE I TEMPORARY MAKESHIFT
Sheds, leans-to or barong-barong
TYPE II WOODEN MATERIALS
Columns, beams and floorings are 3rd group-wood, walls are plywood, floor-joist and trusses are coco/wood and G.I Roof
TYPE III STRONG MATERIALS
- Columns, beams and 1st floor walls are of 1st group-wood, 2nd floor walls are of 3rd group-wood, 1st Floor flooring & floor-joist are RC, 2nd floor flooring, floor-joist and trusses are of 1st group-wood, and, G.I roof.
- Columns, beams are of 1st group-wood, walls are CHB, Flooring & floor-joist are RC, trusses are 1st group-wood, and, G.I roof.
- Columns, beams, walls and flooring are of 1st group-wood, floor-joist and trusses are 3rd group-wood, and, G.I roofing
- All 3rd group wooden structural framings, flooring and sidings and G.I roofing.
TYPE IV MIXED CONCRETE
- Columns, beams, walls, flooring & floor-joist are RC, with wooden Trusses and, G.I roof.
- Same with A but walls are CHB.
TYPE V REINFORCED CONCRETE
- RC Columns, beams, walls and floors and Tegula or tile roofing.]
- Same as “A” but walls are hollow blocks, RC Roofing
- Structural Steel or reinforced concrete columns, beams, CHB walls and permanent partitions, steels roof framing, GI roofing.
APPRAISAL AND ASSESSMENT OF MACHINERY
SECTION 1. DEFINITION OF MACHINERY SUBJECT TO TAX.
Machinery – Embrace machines, equipment, mechanical contrivances, instruments, appliance or apparatus, which may not be attached permanently or temporarily to the real property.
Physical facilities for production, installation and appurtenant service facilities, those which are mobile, self-powered, or self –propelled and those not permanently attached to the real property shall be classified as real property provided that:
- They are actually and exclusively used to meet the need of the needs of the particular industry, business or activity; and
- By their very nature and purpose are designated for or necessary to manufacturing, mining, logging, commercial, or industrial, or agricultural purposes.
Machinery which are of general purposes use including but not limited to office equipment, typewriters, telephone equipment, breakable or easily damaged container (glass or cartons), microcomputer, fax, telex machines, cash dispenser, furniture and fixtures, fixtures, freezers, refrigerators, display cases or racks, fruit juice or beverage automatic dispensing machine which are not directly and exclusively used to meet the needs of a particular industry, business or activity shall be considered within the definition of machinery under this rule.
RESIDENTIAL MACHINERY shall include machines, equipment, appliances or apparatus permanently attached to residential land and improvement or those immovable by destination. (Source Art. 290 (0), Implementing Rules and Regulation, Republic Act No. 7160)
SECTION 2. APPRAISAL AND ASSESSMENT OF MACHINERY (Sec. 224, R.A. 7160).
- The fair market value of a brand new machinery shall be the acquisition cost. In all other cases, the fair market value shall be determined by dividing the remaining economic life and multiplied by the replacement or reproduction cost.
- If the machinery is imported, the acquisition cost included freight, insurance, bank and other charge, brokerage, arrastre and handing, duties and taxes, plus cost of inland transportation, handling, and instillation charge at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency exchange rates as fixed by the Central Bank.
SECTION 3. DEPRECIATION ALLOWANCE FOR MACHINERY (SEC. 225, R.A. 7160). For purpose of assessment, a depreciation allowance shall be made for machinery at a rate not exceeding five percent (5%) of its original cost or its replacement or reproduction cost, as the case maybe, for each year of use: Provided, however, that the remaining value for all kind of machinery shall be fixed at not less than twenty percent (20%) of such original, replacement, or reproduction cost for so long as the machinery is useful and in operation.
SECTION 4. ESTIMATING REPRODUCTION COST-NEW (RCN) BY TRENDING AND/OR INDEXING.
- For imported Machinery:
RCN = Original Cost x Current Exchange Rate x Trending Factor
Exchange Rate of
- For locally Manufactured Machinery
RCN = Original Cost x Local Index
APPRAISAL OF MACHINERY FOR TAX PURPOSES
RCN = OC x FC2 x PI x REL
Where: RCN – Reproduction/Replacement Cost New
OC – Original Cost (or Acquisition Cost)
FCI – Foreign currency Exchange Rate at the time of Acquisition
FC2 – Foreign currency exchange Rate during reassessment
EL – Economic Life
REL – Remaining Economic Life
*PI – Price Index
*optional, to be used only when information is available.
SECTION 5. ECONOMIC LIFE OF MACHINERY. (Extracted from Book of Real Property Taxation of the Philippines)
AGRICULTURAL: On a composite basis, the average useful life in agricultural is 15 years.
The average useful life of some machinery and equipment used in agricultural as follows:
Engines Diesel 15 years
Gasoline 10 years
Stationary Steam 20 years
Pumps Centrifugal/Rotary 20 years
Plunger 15 years
Furnaces Evaporator, Dry 15 years
Heating Disk 15 years
Tanks Concrete 50 years
Steel 40 years
Wood 20 years
Mills Feed 15 years
Grist 25 years
AIRLINE MANUFACTURING: The General useful life for machinery and equipment used in the construction of airplanes is approximately 15 years.
AUTOMOBILE ACCESSORIES: The overall life of machinery used in the manufacturing of automobile varies from 15 to 20 years.
AUTOMOBILE REPAIR SHOPS: The average composite life for automobile repair shops is approximately 10 years.
BAKERY: Ovens-20 years.
BREWERY: The average useful life of machinery and equipment found in brewing companies is 20 years.
Blower System – 15 yrs. Vats – 30 yrs.
Beer Filter – 20 yrs. Compressors – 20 yrs.
Water Filter – 25 yrs. Condensers – 15 yrs.
Gas Heater – 25 yrs. Conveyors – 20 yrs.
Water Heater – 25 yrs. Cobblers – 20 yrs.
Interchangers – 20 yrs. Elevators – 20 yrs.
Tanks – 30 yrs. Piping – 20 yrs.
Extractors – 15 yrs. Pumps – 15 yrs.
Refrigeration System – 20 yrs. Collecting System – 15 yrs.
CANNED PRODUCT: The average of machinery used in canning products such as food, fruits and vegetable, varies from 15 to 17 years.
CEMENT: The average life of machinery used in manufacturing cement varies from 20 to 25 years.
CEREALS: The average life of a
- Cereal Milling Machinery is 25 years.
- Machinery used in packing goods is from 10 to 20 years.
The estimated average lives of machinery and equipment used in manufacturing of:
Acid – 15 yrs. Soaps – 20 yrs.
Chromium Products – 15 yrs. Coal Tax Products – 20 yrs.
Alkaline Products – 22 yrs. Electro Chemical – 17 yrs.
Aniline Dyes – 20 yrs. Oxygen Products – 18 yrs.
Atmospheric Nitrogen – 15 yrs. Pharmaceutical – 20 yrs.
Carbide & Carbon Products – 15 yrs.
CLAY PRODUCTS: The average composite life of machinery and equipment used in the manufacturing of bricks, China pottery varies from 15 to 20 years.
COFFEE, TEA AND SPICES: The life of the machinery and equipment used in the manufacturing coffee and spices is 17 years.
CONFECTION: The equipment used in manufacturing confection has an average life of 15 years.
PAPER CONTAINER: The composite life of machinery in cottonseed oil industry is approximately 25 years.
COTTONSEED OIL: The average life of machinery used in cottonseed oil industry is approximately years.
DAIRY PRODUCTS: The average life of machinery used in
- Pasteurizing and bottling of dairy products is 15 years.
- Milk products is 20 years
DISTILLING: The average life of various machinery used in distillery industry are as follows:
Bottling Machinery – 13 yrs. Piping – 20 yrs.
Control, Electric – 15 yrs. Tanks – 22 yrs.
Laboratory – 15 yrs. Pumps – 15 yrs.
GLASS MANUFACTURING: The complete life of machinery used in making glass container is 15 years.
HOTELS: The average life of machinery and equipment used in hotel is 12 years.
ICE & REFRIGERATION: The general average life of machinery used in ice industry is 20 years.
IRON & STEEL INDUSTRY: The overall life of machinery and equipment used in iron and steel industry is 25 years.
LAUNDRIES: The composite life of laundry machinery is 14 years.
LEATHER MANUFACTURING INDUSTRY: The average life of shoe-making is 15 years.
LUMBER & WOOD PRODUCTS: The average life of sawmill machinery & equipment varies from 20 to 25 years.
MENTAL PRODUCTS & PROCESSES: The composite lives of machinery & equipment used in manufacturing mental equipment used in the following principal industries are as follows:
Agricultural Equipment’s – 20-25 yrs. Heating -20-25 yrs.
Aluminum Wares – 20-25 yrs. Ice and Refrigeration – 17-20 yrs.
Automobile – 15-20 yrs. Machine Tools – 17-29 yrs.
Bearings – 14-20 yrs. Pipes – 20-25 yrs.
Broilers – 20-25 yrs. Machinery – 20-28 yrs.
Business Machines – 15-20 yrs. Plumbing – 15-20 yrs.
Cans – 20-25 yrs. Chains – 20-25 yrs.
Electrical Equipment – 17-20 yrs. Sewing Machines – 14-18 yrs.
Engines and Turbines – 20-25 yrs. Scales – 20-25 yrs.
Firearms – 18-20 yrs. Ships – 20-25 yrs.
Hardware – 25-28 yrs. Tractors – 12-20 yrs.
Brass/Copper Stamping/Casting – 15-20 yrs.
Refrigeration (Household App) – 10-15 yrs.
Wheels (Auto) – 12-20 yrs.
OIL AND GAS:
Pipe, Gas Distribution Lines – 50 yrs. Vacuum Plants – 15 yrs.
Casing – 20 yrs. Refinery – 25 yrs.
Light Equipment, Gas and Air – 10 yrs. Boilers – 30 yrs.
Pumps, Filling Station – 10 yrs. Pumping Equipment – 33 yrs.
Horizontal Cylindrical – 30 yrs.
Underground – 20 yrs.
PACKING PRODUCTS: The average life of packing machinery and equipment is between 17 to years.
PAINTS & VARNISHERS: The overall life of machinery used in paints and varnish industry is 20 years.
POWER GENERATIONS & ELECTRICAL EQUIPMENT: The composite life of steam power and generation equipment ranges from 20 to 25 years.
PRINTING & PUBLISHING: The composite life of machinery used in publishing companies is 17 years.
Boiler Plants Equipment – 28 yrs. Turbo-Generator Units – 30 yrs.
Engines & Generators – 30 yrs. Power Plants Equipment – 28 yrs.
Turbines & Generators – 35 yrs.
Power Plant Equipment – 35 yrs.
Station Equipment – 28 yrs.
Powers – 50 yrs.
GAS PRODUCTION PLANT:
Boiler Plant Equipment – 30 yrs.
Power Equipment – 40 yrs.
Production Equipment – 33 yrs.
MEDIA PRODUCTION & TELEGRAPHY: The overall life for radio-broadcasting & telegraphy equipment is 10 years.
Central Office Equipment – 24 yrs.
Station Apparatus – 6 yrs.
ICE PLANTS: The average of life of machinery used in ice plants is 22 years.
PULP, PAPER & PAPER BOARD:
Pulp Machinery & Equipment – 20 yrs.
Paper Mill Machinery -22 yrs.
RUBBER GOODS: The average composite life of machinery used in the manufacture of rubber goods is 17 years.
SOFT DRINKS: The composite life of machinery used in soft drinks companies is from 13 to 15 years.
- The average life of machinery used in sugar plants varies from 40 to 45 years.
- The average life of machinery used in sugar refinery varies from 28-30 years.
TEXTILES: The composite life of machinery used in
- Spinning and weaving cotton, wool & silk is 25 years
- Knitting is 15 years
- Rayon Manufacturing is 16 years
TOBACCO PRODUCTS: The average life of Machinery and equipment used in manufacturing tobacco products varies from 15 to 20 years.
CASH DISPENSER MACHINE: The average life of Machinery and equipment used as cash dispenser by banks and other financial is 5 to 10 years.
COMPUTER: The average life of machinery used in School, net café, call centers and the likes is from 5 to 10 years
REVERSE OSMOSIS MACHINES: The average life of machinery and equipment used in water refilling station varies from 10 to 15 years.
SECTION 1. For purposes of this General Revision of Real Property Assessment & Classification, the Assessment Level to the applied to the Market Value of Land to determine the Assessed Value in the City of Tabaco, shall be as follows:
- ON LANDS:
2% Tax Rate &
Same Tax Rate of 2% But different
Assessment Level Per Class
- ON BUILDINGS:
|Fair Market Value||2000
- On Machinery
- On Special Classes of Real Property:
|Local Water District||10%||10%||2%|
|Government Owned or Controlled Corporation (GOCC) engaged in the and / or generation and transmission of electric power||10%||10%||2%|
SECTION 1. MISCELLANEOUS PROVISIONS.
- As a general rule, 100% base value per square meter shall be applied to all lands within the first strip fronting the asphalted or concreted roads or streets; land beyond the standard depth, that is 20 meters for residential land and, shall be valued 80% for the 2nd strip, 60% for the 3rd strip, 40% for the 4th strip, and 20% of the based value, fixed for the road or street thereof for the remaining area. Provided that the value per square meter for the last strip shall not be lower than the value per square meter of lots in the other street or of the interior lots as reflected in the schedule of base market value. The stripping Method shall not be applied on commercial and industrial properties, corner lots, and lots within the subdivision; subdivision lots are not subject to stripping.
- Provided, however, that in case the parcel of land shutting two streets or roads of two sides with different base values, the stripping and valuation thereof shall be based on the principal street or road with the higher base value, but not lower than the schedule of the other street.
A reduction of 10% shall be applied from the base value fixed for lands along gravel, earth or dirt and proposed streets or roads, respectively. In similar manner, if the streets or roads and/or sections thereof are subsequently improved or constructed, the appraisal and assessment of the same shall be adjusted accordingly.
- For low sunken areas of the land, a reduction from the base value per square meter may be allowed due to the cost of filling and compaction to bring the same at par with adjoining developed lots, provided, however, that such reduction will, in no case, exceed 30% of the base value thereof.
- Industrial land shall be valued per square meter regardless of their size and distance to roads and streets, the depth factor is not applicable to this type of land.
- For lands located in areas of mixed land uses, the predominant use of lands in that area shall govern the classification, valuation, and assessment thereof.
- Corner influence of 10% for Residential Land & 20% for Commercial Land shall be added to lots situated at the corner of the streets or roads. Provided, that if the streets or roads have different unit value, the higher value shall be used in the computation thereof. An alley or callejon shall not be considered for the adjustment thereof.
- For roads and streets in urban subdivision, unless donated or turned over to the barangay or city, shall be listed in the name of the subdivision owner, shall be valued on the basis of the cost of cementing, asphalting, or paving them with gravel and sand per square meter.
- Agricultural lands convertible into urban subdivision shall be classified, valued and assessed as agricultural land; until such time that they shall have been converted and developed into subdivisions but has not yet been actually developed for the purpose. Agricultural lands duly approved as residential subdivisions and is under developing stage, should be classified, valued and assessed as residential land. A maximum of 30% deduction is allowed until such time the lot is fully developed.
- To arrive at a final value for Agricultural Lands, the total base market value shall be multiplied by percentage of adjustments as follows:
- Type of Roads
Along Provincial or National Roads – 0% deduction
For all weather Roads – 3%
Along dirt Road – 6%
For no road outlet – 9%
- Type of Location
Distance in Km. To: a) All Weather Road b) Central Business District
0 to1 0 +5%
Over 1 to 3 2% 0%
Over 3 to 6 4% -2%
Over 6 to 9 6% -4%
Over 9 8% -6%
- Distance of property from all-weather roads, railroad stations, landing places and from central business district shall be measured from corner of the lot or parcel nearest to such road or center. All weather roads includes national, provincial, city and all other public roads traversable by trucks, cars and other forms of vehicle under any kind of weather.
- The distance in kilometers from Central Business District of the City of Tabaco are as follows:
DISTANCE FROM THE TRADING CENTER
|San Miguel Island|
|1. Rawis||6 kilometers|
|2. Visita||6 kilometers|
|3. Agṅas||8 kilometers|
|4. Hacienda||12 kilometers|
|5. Sagurong||13 kilometers|
|2. Divino Rostro||0|
|4. San Juan||0|
|5. San Roque||0|
|6. Sto. Cristo||0|
|9. Bacolod||200 meters|
|10. Cormidal||200 meters|
|11. Bombon||500 meters|
|12. Baranghawon||700 meters|
|13. Panal||700 meters|
|14. Bangkilingan||1 kilometer|
|15. Cobo||1 k kilometer|
|16. Fatima||1.2 kilometers|
|17. San Ramon||1.5 kilometers|
|18. Salvacion||1.5 kilometers|
|19. Bognabong||2 kilometers|
|20. Cabangan||2 kilometers|
|21. Guinobat||2 kilometers|
|22. Pawa||2 kilometers|
|23. San Carlos||2 kilometers|
|24. San Lorenzo||2.5 kilometers|
|2. Buang||12 kilometers|
|3. Tabiguian||12 kilometers|
|4. Magapo||12 kilometers|
|5. Oras||11 kilometers|
|6. Bonot||10 kilometers|
|7. Buhian||9 kilometers|
|8. Oson||9 kilometers|
|9. Bantayan||8 kilometers|
|10. Basagan||7 kilometers|
|12. Quinastillojan||7 kilometers|
|13. Comon||5 kilometers|
|14. San Antonio||5 kilometers|
|15. Pinagbobong||4 kilometers|
|16. San Vicente||3 kilometers|
|17. Mariroc||3 kilometers|
|18. Matagbac||3 kilometers|
- Building shall be generally classified and valued in accordance with the structural design for which they were intended regardless of their actual use. Individual property adjustment pursuant to this approved Schedule of Market Values (SMV) shall be enforced consistently.
- In case of buildings, machinery & other structures already covered by existing assessment, the Reproduction/Replacement Cost New Less Depreciation (RCNLD) approach shall be applied.
- The appraisal of Machinery for tax purposes shall be based on its actual cost to the owner when it was acquired which shall include the acquisition cost plus the cost of freight. Insurance, bank and other charges, brokerage arrastre and handling, duties & taxes (if imported). The Cost of inland transportation, handling and installation change at the present site shall be likewise included.
- For purposes of assessment, a depreciation allowance shall be made for Machinery at a rate not exceeding five (5%) percent of its original cost or its replacement or reproduction cost, as the case maybe for each year of use: Provided, however, that the remaining value for all kind of machinery shall be fixed at not less than twenty (20%) percent of such original, replacement or reproduction cost for as long as the machinery is useful in operation.
- In estimating the Market Value of Industrial Land, the Sales/Direct Comparison Approach and Income Capitalization Approach shall be applied. Likewise, Industrial Land shall be appraised and assessed on the basis of Sub-Classification Criteria enumerated here under:
- Exempt Real Property – The following are exempt from payment of real property tax:
- Real property owned by the Republic of the Philippines or any of its political subdivisions, except when the beneficial use thereof has been granted, for some consideration or otherwise, to taxable person;
- Charitable institutions, churches, personages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings and improvements actually, directly and exclusively used for religious, charitable or educational purposes;
- All machinery’s and equipment that are actually, directly and exclusively used by local water districts and government-owned or controlled corporations engaged in the supply and distribution of water and/or generations and transmission of electric power;
- All real properties owned by duly registered cooperatives as provided under Republic Act Number 9520 (Cooperative Code of the Philippines) as amended.
- Machinery and equipment used for pollution control and environment protection.
- Land actually, directly and exclusively used for religious charitable or educational purposes are, however, located in an area of mixed land uses, such as residential with commercial or industrial, the predominant use of the lands in that area shall govern the classification, valuation and assessment of those lands used for religious, charitable or educational purposes.
- Residential land subdivisions are appraised and valued according to the degree or extent of development and facilities regardless of its location from the trading center of the city. The Base Unit Market Value of the subdivision shall not under any circumstance be less than the adjoining land classified in accordance with the herein stated criteria.
- The fair current market value of old buildings shall be computed on the basis of replacement cost less depreciation. Replacement Cost shall be computed on the basis of the schedule of building unit value which is reflective of the current cost of labor and building materials. Undeclared old buildings shall be valued as new and corresponding allowable depreciation shall be deducted to arrive at their current and fair market value.
- Vacant or idle land located in a purely residential or mixed residential-commercial area shall be classified as residential, if such land is located in purely commercial area, the same may be classified as commercial.
- The City Assessor may classify value and assess real property independently of the schedule in cases where such real property is not specifically included in the approved Schedule of Fair Market Values in accordance with existing laws, rules, and regulations.
- As a general rule, the classification, appraisal and assessment of real property for taxation purposes shall be governed by the provisions of Republic Act No. 7160 and its Implementing Rules & Regulation (IRR) and other existing laws & rules issued by the Department of Finance (DOF) through the Bureau of Local Government Finance (BLGF) and the Sangguniang Panlungsod (SP).
SECTION 1. ACCRUAL OF TAX FOR LANDS, BUILDINGS AND OTHER STRUCTURES. The General Revision of Real Property Assessment for lands shall become demandable beginning January 1, 2018, while the Building and other Structure shall be deferred for one (1) year, and shall take effect beginning 2019.
Provided however, the newly constructed buildings and other structures completed/occupied in 2018 and thereafter shall be classified, appraised and assessed according to the new Schedule of Unit Construction Cost as herein established and the payment of taxes due thereon shall be made effective in the year 2019 and onwards.
SECTION 2. REAL PROPERTY DECLARED FOR THE FIRST TIME. Real property declared for the first time shall be assessed for the period during which it would have been liable but in no case for more than ten (10) years prior to the date of initial assessment;
Provided, however, that such taxes shall be computed on the basis of the applicable schedule of the total tax liability shall include the current year in addition to the ten (10) years back taxes. If such case are paid on or before the end of the quarter next following the date the notice of assessment was received by the owner or his representative, no interest of delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of two percent (2%) per month or a fraction thereof until such taxes are fully paid.
SECTION 3. SEPARABILITY CLAUSE. In order to fully implement the provisions of the Schedule of Fair Market Values, the General Provisions as well as the Amendatory Provisions stated in said schedule shall form part of this ordinance and all existing regulations or ordinance contrary to this ordinance or any part or parts thereof are hereby repealed or amended accordingly. Those not affected shall remain valid and continue to be in full force and effect.
SECTION 4. The Office of the City Assessor and the Real Property Tax Division are hereby directed to implement this ordinance with provisions of the law and implementing rules and regulations issued by the Department of Finance. They shall likewise conduct a massive information and education campaign relative to the conduct of general revision of all real property assessments in the City of Tabaco.
SECTION 5. EFFECTIVITY. This Ordinance shall become effective upon completion of its publication for three (3) consecutive days in a newspaper of general circulation and posted in at least three (3) conspicuous places in Tabaco City pursuant to Section 59 and 188 of the Local Government Code of 1991, as amended (R.A.7160).
APPROVED, this 19th day of December, 2017
We hereby certify to the correctness of the foregoing Ordinance.
RAUL ROI B. BOREJON DANILO C. BUENCONSEJO
NESTOR T. SAN PABLO
City Vice Mayor & Presiding Officer
GLENDA B. PANTI
Secretary to the Sanggunian Panlungsod
CIELO KRISEL LAGMAN-LUISTRO