Sunday, April 19, 2009

2010 Real Property Tax Code of the Province of Batangas

CHAPTER I
TITLE AND SCOPE

Section 1. Title. This Ordinance shall be known as the 2010 Real Property Tax Code of the
Province of Batangas.

Section 2. Scope & Coverage. This Code shall govern the General Revision of Assessments, Appraisal, Classification, Levy and Collection of Real Properties in the Province of Batangas except those located in chartered cities within the province. This shall include the municipalities of :

1) Agoncilllo 17) Nasugbu
2) Alitagtag 18) Padre Garcia
3) Balayan 19) Rosario
4) Balete 20) San Jose
5) Bauan 21) San Juan
6) Calaca 22) San Luis
7) Calatagan 23) San Nicolas
8) Cuenca 24) San Pascual
9) Ibaan 25) Sta. Teresita
10) Laurel 26) Sto. Tomas
11) Lemery 27) Taal
12) Lian 28) Talisay
13) Lobo 29) Taysan
14) Mabini 30) Tingloy
15) Malvar 31) Tuy
16) Mataas na kahoy

Section 3. Purpose. The valuation of real properties established in the Code shall be the sole basis for taxation purposes including transfer taxes; Provided, however, that in case of sale of real property where the consideration is higher than the fair market value provided in the Code the said consideration shall be the basis of the transfer tax.


CHAPTER II
BASIC PRINCIPLES

Section 4. Fundamental Principles. The appraisal and assessment of real property tax shall be guided by the following fundamental principles.

a) Real Property shall be appraised at its current and fair market value using the mass appraisal approach;
b) Real Property shall be classified for assessment purposes on the basis of its actual use;
c) Real Property shall be assessed on the basis of a uniform classification and sub-classification within the Province;
d) The appraisal and assessment of real property shall not be let to any private person; and,
e) The appraisal and assessment of real property shall be just and equitable.





CHAPTER III
DEFINITION OF TERMS


Section 5. Definition of Terms. As used herein, the following terms shall be construed to mean:

1. Acquisition Cost - for newly-acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of the machinery to its present owner, plus the cost of transportation, handling and installation at the present site;

2. Actual Use - refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof;

3. Agri-Business - land devoted principally to production, trade, processing storage and marketing of farm products;

4. Agricultural Land - is land devoted principally to the planting of trees, raising of crops, livestock and poultry, dairying, salt making, inland fishing and similar aquacultural activities, and other agricultural activities, and is not classified as mineral, timber, residential, commercial or industrial land;

5. Appraisal - is the act or process of determining the value of a property at a specific date for a specific purpose;

6. Assessment - is the act or process of determining the value of a property or proportion thereof subject to tax, including the discovery, listing, classification, and appraisal of properties;

7. Assessment Level - is the percentage applied to the fair market value to determine the taxable value of the property;

8. Assessment Operations - is a means of assigning on every parcel of land and upon all taxable improvements on such lands, a current and fair market value, an assessment level to be able to arrive at an assessed value for each land and each improvement;

9. Assessed Value - is the fair market value of the real property multiplied by the assessment level. It is synonymous to taxable value;

10. Bamboo - land refers to land proliferated with bamboo

11. Building - any structure for the support, shelter or enclosure of persons, animals or property of any kind.

12. Built-up Area - refers to center of population not otherwise devoted to agriculture.

13. Cocoland - land principally devoted to planting of coconuts;

14. Commercial Land - is the land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential land;

15. Cost Approach - is 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 equivalent to the original or one that could furnish equal utility with no undue cost resulting from delay. The Valuer’s estimate is based on the reproduction or replacement cost of the subject property asset, less total accrued depreciation.

16. Depreciation - is a loss of value brought about by physical deterioration and/or obsolescence.

17. Depreciated Value - is the value remaining after deducting depreciation from the acquisition cost;

18. Dominant Land Use - shall mean that pervasive land use within a perimeter of 500 meter radius from a specific parcel of land or building;

19. Economic Life - is the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized.

20. Fair Market Value - is the price at which a property may be sold by a seller who is not compelled to sell and bought by a buyer who is not compelled to buy;

21. Fishpond - is land principally devoted to inland fishing.

22. Foreshore Land - is a strip of land along the seashore, the use of which may or may not be
granted by the government to private persons or corporation;

23. Highest and Best Use - refers to 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;

24. Horticultural Land is land principally devoted to planting of flowers, fruits and vegetables.

25. Idle Lands

Agricultural lands, more than one (1) hectare in area, suitable for cultivation, dairying, inland fishery, and other agricultural uses, one-half (1/2) of which remain uncultivated or unimproved by the owner of the property or person having legal interest therein.

Lands, other than agricultural, located in the municipality, more than one thousand (1,000)
square meters in area, one-half (1/2) of which remain unutilized or unimproved by the
owner of the property or person having legal interest therein.

26. 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 or further purposes;

27. Industrial Estate - is a an industrial subdivision developed according to a comprehensive plan and managed by a single controlling body;
28. Industrial Land - is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, mineral or residential land;

29. Industrial Plot or factory plot or plot is an allocated lot within the industrial subdivision
intended for industrial or factory used and where such industry or factory is located;

30. Industrial Subdivision - is a tract of land partitioned into plots for sale or lease to establishments engaged primarily in industrial production and services. The degree of development may be limited to the provision of utilities and allocation of areas for industrial buildings, facilities and amenities;

31. Land - is the solid part of the surface of the earth as distinguished from water; any ground, soil or earth whatsoever regarded as the subject of ownership and everything annexed to it, whether by nature, such as trees, and everything in or in it, such as minerals and running water, or annexed to it by man such as buildings and fences;

32. Land Use Conversion refers to the act or process of changing the current use of a piece of
agricultural land into some other uses as approved by the Department of Agrarian Reform
(DAR);

33. Machinery embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily, to the real property. It includes the physical facilities for production, the installation and appurtenant service facilities, those which are mobile, self-powered or 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, agricultural purposes;

34. Mango land - refers to land principally devoted to planting of mango;

35. Mangrove Land - is a term applied to the type of forest occurring on tidal flat along the seacoast, extending along stream where the water is brackish;

36. Market Value - is the price agreed upon by the buyer and seller in the open market in the usual and ordinary course of legal trade and competition; the price and value of the article established or shown by sale, public and private, in the ordinary way of business; the fair market value of property is between one who desires to purchase and one who desires to sell; the current price, the general or ordinary price for which the property may be sold in the locality;

37. Mass Appraisal - is the process of valuing a group of properties as of a given date using common data, standardized methods and statistical testing.

38. Memorial Parks are lands exclusively used as burial ground and developed for profit.

39. 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;

40. Orchard – land cultivated for fruit trees;

41. Pasture Land - land devoted to production of grass or other vegetable provided for food of
cattle, sheep, horses, goats etc., or for wild animals;

42. 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 is right to eminent domain, for purposes of great advantage to the community;

43. Rawland - is a land intended by developers as a highly urbanized secluded community which has remained undeveloped or underdeveloped;

44. Real Estate - refers to the physical land and all those items, which are attached to the land. It is the physical, tangible entity which can be seen and touched, together with all the additions on, above or below the ground;

45. Real Property - includes all the rights, interests, and benefits related to the ownership of real estate. Ownership of real estate is evidenced by a Certificate of Title, Free Patent or Tax Declaration in the Absence of Certificate of Title;

46. 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;

47. 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 lands to agricultural use;

48. Remaining Economic Life - is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless;

49. Remaining Value - is the value corresponding to the remaining useful life of the machinery;

50. 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;

51. Residential Land - is land devoted to habitation;

52. Residential Subdivision are lands subjected to actual development or earth movements, with the necessary clearances required by laws or ordinances, by virtue of which development the said property possesses higher market values;

53. Rurban - Refers to agricultural lands located in the suburb and/or center of the Poblacion which command a higher value than ordinary agricultural land;

54. Salt-Beds are land principally devoted to salt making;

55. Special Classes of Real Property refers to all lands, buildings and other improvements thereon, actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power;

56. Special Economic Zones refers to selected areas which have potential to be developed into agro-industrial, industrial tourist/ recreational, commercial, banking investment and financial centers. An ecozone may contain any or all of the following industrial estates, export processingzones, free trade zones, and tourist recreational centers;

57. Special Purpose Properties are properties, which are designed, constructed and developed for a specific use or purpose. By its very nature, this type of property is rarely offered for sale in the open market except as part of a going concern. Because of the special design and function, conversion of special purpose properties to other types of development or application is generally not economically feasible;

58. Sugarland land principally devoted to planting of sugarcane;

59. Swamp refers to spongy ground largely covered by standing water of little depth;

60. 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;

61. Tourism Development Areas refers to specific sites for tourism development located in areas identified as priorities in the national and regional tourism master plans, as well as those designated through legislation and executive issuances as tourist zones which can be developed into tourism estates or integrated resort, leisure and recreation complexes, and other tourism-related facilities;

62. Wasteland refers to land desolated, uncultivated, or made barren by natural catastrophe or man;

63. Wood Land refers to land largely given over to woods.














CHAPTER IV
CLASSIFICATION AND SUB-CLASSIFICATION OF LANDS


Section 6. Classification of Real Property for Assessment Purposes. The assessment of real property shall be classified as commercial, residential, industrial, agricultural, mineral and special.

Section 7. Sub-classification of Lands. Lands are sub-classified as follows:

a) Commercial lands. Commercial lands are sub-classified as follows;
1) Commercial regular lands;
2) Commercial resorts;
3) Golf courses; and,
4) Memorial Parks (Private).

b) Residential lands. Residential lands are sub-classified as follows:
1) Regular Residential;
2) Residential Subdivision;
3) Residential Resorts;
4) Residential Farmlot Subdivisions;
5) Island Municipalities – Regular Residential;

c) Special classes of real properties includes:
1) Hospitals;
2) Cultural;
3) Scientific purposes;
4) Local water districts or government-owned and controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power.

d) Industrial lands. Industrial lands are sub-classified into:
1) Industrial regular, and;
2) Industrial estates;

e) Agricultural lands. Agricultural lands are sub-classified according to groups of barangays. Groupings are typically related to accessibility and the values are tested through income capitalization approach. Agricultural lands are sub-classified into:
1) Barangays along the national road;
2) Interior barangays;
3) Barangays in the remote areas and mountain areas of the municipality;

f) Mineral








Section 8. Criteria in the Classification and Sub-classification of Lands. The following criteria were established to classify and sub-classify lands:
a) Commercial lands. Regular commercial lands are sub-classified according to its:
1) Location (of the property);
2) Accessibility;
3) Proximity to urban/business/social centers, and;
4) Value of the property.

b) Commercial Resorts. Commercial resorts are sub-classified according to its:
1) Location;
2) Accessibility;
3) Proximity to business/social centers, and;
4) Value of the property;
5) Access to points of interests (beach, sea, river or spring, mountain, farm or island);
6) Potentials for commercial resort development.

c) Golf Courses. Golf courses, are sub-classified according to
1) Location;
2) Size (hectares);
3) Greens & Holes
4) Turf, soil, drainage and watering systems;
5) Topography and slopes;
6) Hazards;
7) Amenities
8) Forms of membership.

d) Memorial Parks and Cemeteries. Memorial parks (private) are sub-classified according to:
1) Conformity to the Design Standards and Guidelines for Memorial Parks &
Cemeteries set by the HLURB;
2) Conformity to the Land Use Plan or zoning ordinance[i];
3) Accessibility;
4) Add-on features;
5) Site Criteria[ii], and;
6) Location[iii].

e) Residential Subdivision. Residential subdivision are sub-classified according to:
1) Kinds of road (network);
2) Availability of facilities,
3) Amenities, utilities and services;
4) Value of the land;
5) Accessibility;
6) Physical suitability/location/setting;
7) Compliance with the standards set by HLURB.[iv]

f) Regular Residential. Residential are sub-classified based on:
1) Location;
2) Accessibility (road networks);
3) Proximity to business and social centers;
4) Availability/presence of facilities, utilities and amenities;
5) Value of the property;
6) Class of the municipality and;
7) Prevailing economic conditions of the municipality.

g) Residential Farmlots Subdivision. Criteria for residential farmlot subdivision includes:
1) Accessibility (road network);
2) Availability of facilities, amenities and utilities;
3) Existing dominant land use (agricultural and 25% buildable area);
4) Presence of agricultural structures (for storage of farm implements, equipments and
5) supplies, sheds for work animals, if any), and;
6) Location.

h) Residential Resorts. Residential resorts are established according to:
1) Road (road networks);
2) Accessibility;
3) Facilities, utilities, amenities and services required of a residential resort;
4) Physical setting & geographic location;
5) Value of the property.

i) Industrial Lands. Industrial lands, whether regular industrial or industrial estates are determined according to:
1) Roads (road networks);
2) Availability of facilities, utilities and required services of an industry/ies;
3) Accessibility (ingress and egress), and;
4) Value of the property.

Section 9. Classification of Commercial Lands. Commercial lands shall be sub-classified as follows:

a) Commercial Regular Lands

1) First Class Commercial Regular Lands
a) Located along concrete road[v];
b) Where the highest trading, social, and educational activities of the Municipality take place;
c) Where concrete or high grade commercial or business buildings are situated;
d) Where vehicular and pedestrian traffic flow are exceptionally busy;
e) Commands the highest commercial land value in the Province.

2) Second Class Commercial Regular Lands
a) Along concrete or asphalted road;
b) Where trading, social, and/or educational activities are considerably high but fall short from that of the First Class Commercial (C-1) Lands;
c) Where semi-concrete commercial or business buildings are situated[vi];
d) Where vehicular and pedestrian traffic flow are considerably busy, but fall short from that of the First Class Commercial (C-1) Lands;
e) Commands lesser value than the First Class Commercial (C-1) Lands.




3) Third Class Commercial Regular Lands
a) Along concrete or asphalted road;
b) Where trading, social, and/or educational activities are significantly less that the Second Class Commercial (C-2) Lands;
c) Where average grade commercial or business buildings are situated[vii];
d) Where vehicular and pedestrian traffic flow are fairly busy;
e) Commands lesser value than the Second Class Commercial (C-2) Lands.

4) Fourth Class Commercial Regular Lands
a) Along concrete or asphalted road;
b) Where trading, social, and/or educational activities are significantly low but predominant;
c) Where mixed commercial and residential buildings are situated;
d) Where vehicular and pedestrian traffic flow are regularly less busy;
e) Commands lesser value than the Third Class Commercial (C-3) Lands

5) Fifth Class Commercial Regular Lands
a) Along concrete or asphalted road;
b) Where trading, social, and/or educational activities are significantly low;
c) Where mixed commercial and residential buildings are situated;
d) Where vehicular and pedestrian traffic flow are less busy;
e) Commands lesser value than the Fourth Class Commercial (C-4) lands.

6) Sixth Class Commercial Regular Lands
a) Along concrete or asphalted roads;
b) Where trading, social, and/or education activities are sparse;
c) Where mixed commercial and residential buildings are situated;
d) Where vehicular and pedestrian traffic are irregular;
e) Commands lesser value than the Fifth Class Commercial (C-5) Lands.

7) Seventh Class Commercial Regular Lands
a) Along concrete or asphalted roads;
b) Where trading, social, and/or education activities are sparse;
c) Where mixed commercial and residential buildings are situated;
d) Where vehicular and pedestrian traffic are irregular;
e) Commands lesser value than the Sixth Class Commercial (C-6) Lands.

8) Eight Class Commercial Regular Lands
a) Along concrete or asphalted roads;
b) Where trading and social activities are light and sporadic;
c) Where mixed commercial and residential buildings are situated;
d) Where vehicular and pedestrian traffic are irregular;
e) Commands the least regular commercial land value in the vicinity.






f) Commercial Resorts
1) First Class Commercial Resorts
a) Along concrete roads;
b) Located in a good environment;
c) With primary access to the beach / seaside / river / mountain / farm / island/or other points of interest;
d) Commands the highest commercial resort land value in the province.

2) Second Class Commercial Resorts
a) Along concrete roads;
b) Located in a fairly good environment;
c) With primary access or secondary access to the beach / sea / river / lake / mountain / farm /island / or other points of interest;
d) Commands the second highest commercial resort land value in the province.

3) Third Class Commercial Resorts
a) Along concrete or asphalted roads;
b) Located in a moderately good environment;
c) With primary and secondary access to the beach / sea / river / lake / mountain / farm / island/ other points of interests;
d) Commands the third highest commercial resort land value in the province.

4) Fourth Class Commercial Resorts
a) Along asphalted roads;
b) Located in a reasonably good environment;
c) With secondary access to the beach / sea / river / lake / mountain / farm/ island / other points of interests;
d) Commands the fourth highest commercial resort land value in the province.

5) Fifth Class Commercial Resorts
a) Along asphalted roads;
b) Located in an environment potentially fit for resort development;
c) With access to the beach / sea / river / lake / mountain / farm/ island/ and other points of interests.
d) Commands the fifth highest commercial resort land value in the province.

6) Sixth Class Commercial Resorts
a) Along asphalted roads;
b) Located within a potentially good environment for resort development but fairly accessible;
c) With access to the beach / sea / river / lake / mountain / farm /islands / and other points of interests;
d) Commands a low commercial resort land value.

7) Seventh Class Commercial Resorts
a) Along all weather roads;
b) Located within a promisingly good environment for resort development but farthest from resort centers ;
c) With access to the beach / sea / river / lake / mountain / farm /islands;
d) Commands the lowest commercial resort land value in the province.

Section 10. Classification of Golf Courses and Memorial Parks and Cemeteries. Golf Courses (Commercial) and Memorial Parks and Cemeteries (Private and profit) shall be sub-classified as follows:

a) Golf Courses

1) First Class Golf Courses
a) Situated along concrete and accessible roads.
b) Have excellent facilities and amenities such as clubhouse, halfway house, drink holes and other recreational facilities;
c) The facility is located on a contiguous area[viii] and excellent setting.
d) The golf course complies with the standards and design of a Championship course.[ix]
e) Commands highest value of membership and play hours in the area.

2) Second Class Golf Courses
a) Situated along concrete and accessible roads.
b) Have basic facilities and adequate equipments essential of a golf course[x].
c) The facility is located on contiguous area with scenic views and settings.
d) Commands the second highest value of membership and play hours.

3) Third Class Golf Courses
a) Situated along accessible and asphalted roads;
b) Have adequate equipments and facilities of a practice green and/or a driving range course[xi];
c) The facility is located on a relatively smaller area than a golf course;
d) Commands a lower membership value and fees for play hours.

b) Memorial Parks and Cemetery

1) First Class Memorial Parks and Cemetery
a) Situated along concrete roads.
b) Accessibility: where vehicular and traffic flow are busy andwith access to regular transportation.
c) Commands the highest commercial value for memorial park in the province;
d) With add-on amenities such as open space, garden and space for religious activities, restrooms and adequate parking space.
e) Located within a suitable area and with areas for allocation of decorative elements and planting of trees and plants.
f) Adheres to minimum standard set by HLURB for Memorial Parks/Cemetery[xii].

2) Second Class Memorial Parks and Cemetery
a) Situated along concrete and/or asphalted roads;
b) Accessibility: where public transportation are regular;
c) Commands lesser value than the 1st class memorial park;
d) Has less amenities than the 1st class;
e) Adheres to minimum standard set by HLURB for Memorial Parks/Cemetery[xiii].




3) Third Class Memorial Parks and Cemetery
a) Situated along asphalted and/or all weather roads;
b) Where vehicular traffic flow are less busy;
c) Burial place predominantly characterized by monument/ground type of interment;
d) Commands lesser value than the 2nd class.

Section 11. Classification of Residential Lands. Residential Lands are sub-classified as follows:

a) Residential Subdivision

1) First Class Residential Subdivision
a) Along excellent and well-paved concrete roads[xiv];
b) Where facilities and amenities of a premier and high-end[xv] community lifestyles are present and readily available;
c) Commands the highest residential subdivision land value in the entire province;
d) Where accessibility is exceptionally regular towards major trading centers;
e) Physical suitability. Located within a geographically advantage setting[xvi];
f) Complies with the deed of restriction and development plans of the developers.
g) Approved and have qualified the standards set by the Housing and Land Use Regulatory Board (HLURB)[xvii].

2) Second Class Residential Subdivision
a) Along good concrete roads;
b) Where facilities and amenities of an exclusive residential subdivision[xviii] are existing and available.
c) Commands lesser land value than the 1st class residential subdivision.
d) Where accessibility are regular towards major trading centers;
e) With competitively good location and setting[xix];
f) Approved and have qualified the standards set by the Housing and Land Use Regulatory Board (HLURB)[xx].

3) Third Class Residential Subdivision
a) Along concrete or asphalted road;
b) Where standard facilities and amenities of a Residential Subdivision[xxi] are available;
c) Commands lesser land value than a 2nd Class Residential Subdivision;
d) Where accessibility and public utility transportation are regular towards major trading centers;
e) Within a considerably good location and setting.
f) Approved and have qualified the standards set by the Housing and Land Use Regulatory Board (HLURB)[xxii].

4) Fourth Class Residential Subdivision
a) Along concrete and/or asphalted road;
b) Where some facilities and amenities of a residential subdivision maybe available and existing;
c) Commands a lesser land value than the 3rd class residential subdivision;
d) Where public transportation are available towards major trading centers;
e) Approved and have qualified the standards set by the Housing and Land Use Regulatory Board (HLURB)[xxiii].
5) Fifth Class Residential Subdivision
a) Along asphalted and fairly undeveloped or all weather roads;
b) Where basic facilities maybe available and provided;
c) Where public utility transportation facilities are fairly regular towards major trading centers;
d) Commands the least subdivision land value;
e) Approved and have qualified the standards set by the Housing and Land Use Regulatory Board (HLURB)[xxiv].


b) Regular Residential

1) First Class Regular Residential
a) Along concrete roads[xxv];
b) Where Residential Buildings are of dominant land use[xxvi] or are predominantly situated;
c) Where public utility transportation facilities are exceptionally regular towards major trading centers;
d) Location: most proximate to churches, schools, municipal halls and or social and trading activities;
e) Where basic facilities and amenities and telecommunication systems are available;
f) Commands the highest regular residential land value in the locality.

2) Second Class Regular Residential
a) Along concrete roads within the Poblacion and located next to ROS -1[xxvii];
b) Where Residential Buildings are predominantly situated;
c) Where public utility transportation facilities are regular towards major trading centers;
d) Where basic facilities and amenities and telecommunication systems are available;
e) Commands lesser value than the First Class Residential (R-OS-1) Lands;

3) Third Class Regular Residential
a) Located along the national road;
b) Within the distance of four (4) kilometres from the trading center.
c) Where public utility transportation facilities are regular towards major trading center;
d) Where basic facilities are available;
e) Located in the built-up areas of the municipalities;
f) Commands lesser value than ROS -2.

4) Fourth Class Regular Residential
a) Along provincial and barangay roads;
b) Located within four kilometres from the trading and business center;
c) Where water and electric facilities are available;
d) Transportation facilities are regular
e) Commands lesser value than ROS-3.

5) Fifth Class Regular Residential
a) Along the national road ;
b) Located more than four (4) kilometres from the trading and business center;
c) Where public transportation facilities are moderately regular;
d) Where basic facilities are available;
e) Commands lesser value than the ROS-4.

6) Sixth Class Regular Residential
a) Along the roads of interior barangays;
b) Where public water and electric facilities maybe readily available;
c) Where transportation facilities are irregular;
d) Commands lesser value than the ROS-5.

7) Seventh Class Regular Residential
a) Lots where informal settlers are located;


b) Residential Farmlot Subdivision

1) First Class Residential Farmlot Subdivision
a) Along concrete roads;
b) Where facilities and amenities of a farmlot subdivision[xxviii]/hobby farming[xxix] are available;
c) Where other agricultural structures[xxx] are existing and functional.
d) Commands the highest residential farmlot subdivision land value within the province;
e) Where accessibility is exceptionally regular towards major trading centers;
f) Physical suitability: Within a geographically advantage location and setting.

2) Second Class Residential Farmlot Subdivision
a) Along asphalted roads;
b) Where facilities and utilities of a farmlot/farm estate are available[xxxi];
c) Commands lesser land value than the 1st class farmlot subdivision;
d) Where accessibility is regular towards major trading centers;

3) Third Class Residential Farmlot Subdivision
a) Along asphalted road;
b) Where facilities and amenities of a farmlot/ farm house are available;
c) Commands the lowest residential farmlot land value in the province;
d) Where public transportation are available towards major trading centers;

c) Residential Resorts

1) First Class Residential Resorts
a) Along concrete and excellent roads;
b) Where Residential Buildings, Apartments and Condominiums are predominantly situated;
c) Where services, facilities and amenities of a premier, exclusive and high-end element of leisure are available[xxxii];
d) Commands the highest residential resort land value in the area;
e) Where accessibility is exceptionally regular towards major trading centers areas;
f) Within a geographically ideal location, scenic views and good setting.

2) Second Class Residential Resorts
a) Along concrete and well-paved roads;
b) Where Residential Buildings and Apartments are predominantly situated;
c) Where facilities and amenities of a residential resort or leisure tourism estates are available[xxxiii];
d) Commands a high residential resort value in the area next to the RR-1.
e) Where accessibility is regular towards major trading centers;
f) Within a competitively good location.

3) Third Class Residential Resorts
a) Along concrete roads.
b) Where Residential Buildings and Apartments are predominantly situated;
c) Where fairly good facilities and amenities of a residential resort equivalent to a standard hotel[xxxiv] are available;
d) Commands a fairly high residential resort value in the area next to RR2;
e) Within a fairly good location.

4) Fourth Class Residential Resorts
a) Along concrete roads.
b) Where Residential Buildings and Apartments are predominantly situated;
c) Where good facilities and amenities of a residential resort are available;
d) Commands a fairly high residential resort value in the area next to RR3;
e) Within a good location.


d) Regular Residential– Island Municipality

1) First Class Island Regular Residential
a) Along the main road of the Poblacion;
b) Located in the area where mixed commercial and residential buildings are predominantly existing;
c) Where basic facilities and amenities are available;
d) Commands the highest residential land value in the island.

2) Second Class Island Regular Residential
a) Along other roads in the Poblacion;
b) Where residential buildings are predominantly located;
c) Where facilities and amenities are existing;
d) Commands lesser value than IROS-1.

3) Third Class Island Regular Residential
a) Along other roads;
b) Located in the predominantly upland residential area of the Poblacion;
c) Where facilities and amenities are maybe available;
d) Commands lesser value than IROS-2.

4) Fourth Class Island Regular Residential
a) Along all-weather roads;
b) Located predominantly in lowland residential area along Maricaban Strait;
c) Commands lesser value than IROS-3.

5) Fifth Class Island Regular Residential
a) Along all weather roads;
b) Refers predominantly to lowland residential areas along Verde Island Passage;
c) Commands lesser value than IROS-4.

6) Sixth Class Island Regular Residential
a) Upland residential areas remote barangays;
b) Commands the lowest residential value in the island.


Section 12. Classification of Industrial Lands. Industrial lands shall be sub-classified follows:

a) Industrial Lands Regular

1) First Class Industrial Lands Regular
a) Along concrete or asphalted road;
b) Where the vicinity is used for industrial purposes;
c) Have readily available industrial infrastructure support.
d) Commands the highest industrial land value in the province;
e) Located in areas where there is predominantly extensive presence of heavy industries.

2) Second Class Industrial Lands Regular
a) Along concrete or asphalted road;
b) Where the area is used for industrial purposes;
c) Have available infrastructure for ingress and egress of materials/products/resources;
d) Commands lesser value than the 2nd class Industrial Lands.

3) Third Class Industrial Lands Regular
a) Along concrete and asphalt roads;
b) Have optional facilities and industrial infrastructure support;
c) Commands lesser value than I-3.


b) Industrial Estates

1) First Class Industrial Estates
a) Along concrete roads[xxxv];
b) With facilities, utilities and amenities of a 1st Class Industrial Estates[xxxvi] as required by the Philippine Economic Zone Authority (PEZA)
c) With provisions for a power sub-station, waste[xxxvii] and water treatment facilities.
d) Commands the highest industrial land value in the province;

2) Second Class Industrial Estates
a) Along concrete roads[xxxviii];
b) Commands the second highest industrial land value in the province;
c) With facilities, utilities and amenities of a 2nd Class Industrial Estates are readily available and existing;

3) Third Class Industrial Estates
a) Along concrete roads;
b) Commands lesser value than IE 2;
c) With facilities, utilities and amenities of an Industrial Estate are readily available and existing.


4) Fourth Class Industrial Estates
a) Along concrete roads;
b) Commands lesser value than IE-3;
c) Where facilities, utilities and amenities of an Industrial Estate are readily available and existing.


Section 13. Valuation and Codes for Each Sub-Classification of Lands. The valuation and codes of the sub-classified lands are as follows:

Sub-classification Criteria Codes Valuation

COMMERCIAL C
Commercial Regular CR
Commercial Regular 1st Class C-1 P 17,000.00
Commercial Regular 2nd Class C-2 P 12,000.00
Commercial Regular 3th Class C-3 P 10,000.00
Commercial Regular 4rd Class C-4 P 7,000.00
Commercial Regular 5th Class C-5 P 5,000.00
Commercial Regular 6th Class C-6 P 3,000.00
Commercial Regular 7th Class C-7 P 2,000.00
Commercial Regular 8th Class C-8 P 1,000.00

Commercial Resorts CR
Commercial Resorts 1st Class CR -1 P 3,350.00
Commercial Resorts 2nd Class CR-2 P 2,700.00
Commercial Resorts 3rd Class CR-3 P 2,000.00
Commercial Resorts 4th Class CR-4 P 1,500.00
Commercial Resorts 5th Class CR-5 P 1,000.00
Commercial Resorts 6th Class CR-6 P 600.00
Commercial Resorts 7th Class CR-7 P 300.00

Golf Courses GC
Golf Courses First Class GC-1 P 1,500.00
Golf Courses Second Class GC-2 P 1,000.00
Golf Courses Third Class GC-3 P 500.00

Memorial Parks/Cemetery MPC
Memorial Parks & Cemetery 1st Class MPC 1 P 10,000.00
Memorial Parks & Cemetery 2nd Class MPC 2 P 8,000.00
Memorial Parks & Cemetery 3rd Class MPC 3 P 5,000.00

RESIDENTIAL R

Regular Residential RR

Regular Residential 1st Class-1st Class Mun RR 1.1 P 3,500.00
Regular Residential 1st Class-2nd Class Mun RR 1.2 P 2,000.00
Regular Residential 1st Class-3rd Class Mun RR 1.3 P 1,500.00
Regular Residential 1st Class-4th Class Mun RR 1.4 P 1,000.00
Regular Residential 1st Class-5th Class Mun RR 1.5 P 800.00

Regular Residential 2nd Class-1st Class Mun RR 2.1 P 2,000.00
Regular Residential 2nd Class-2nd Class Mun RR 2.2 P 1,500.00
Regular Residential 2nd Class-3rd Class Mun RR 2.3 P 1,000.00
Regular Residential 2nd Class-4th Class Mun RR 2.4 P 800.00
Regular Residential 2nd Class-5th Class Mun RR 2.5 P 500.00

Regular Residential 3rd Class-1st Class Mun RR 3.1 P 1,500.00
Regular Residential 3rd Class-2nd Class Mun RR 3.2 P 1,000.00
Regular Residential 3rd Class-3rd Class Mun RR 3.3 P 800.00
Regular Residential 3rd Class-4th Class Mun RR 3.4 P 500.00
Regular Residential 3rd Class-5th Class Mun RR 3.5 P 375.00

Regular Residential 4th Class-1st Class Mun RR 4.1 P 1,000.00
Regular Residential 4th Class-2nd Class Mun RR 4.2 P 800.00
Regular Residential 4th Class-3rd Class Mun RR 4.3 P 500.00
Regular Residential 4th Class-4th Class Mun RR 4.4 P 375.00
Regular Residential 4th Class-5th Class Mun RR 4.5 P 200.00

Regular Residential 5th Class-1st Class Mun RR 5.1 P 800.00
Regular Residential 5th Class-2nd Class Mun RR 5.2 P 500.00
Regular Residential 5th Class-3rd Class Mun RR 5.3 P 375.00
Regular Residential 5th Class-4th Class Mun RR 5.4 P 200.00
Regular Residential 5th Class-5th Class Mun RR 5.5 P 150.00

Regular Residential 6th Class-1st Class Mun RR 6.1 P 200.00
Regular Residential 6th Class-2nd Class Mun RR 6.2 P 175.00
Regular Residential 6th Class-3rd Class Mun RR 6.3 P 150.00
Regular Residential 6th Class-4th Class Mun RR 6.4 P 120.00
Regular Residential 6 th Class-5th Class Mun RR 6.5 P 100.00

Regular Residential 7th Class

Residential Subdivision RS
Residential Subdivision 1st Class RS-1 P 5,000.00
Residential Subdivision 2nd Class RS-2 P 3,500.00
Residential Subdivision 3rd Class RS-3 P 2,500.00
Residential Subdivision 4th Class RS-4 P 1,500.00
Residential Subdivision 5th Class RS-5 P 1,000.00

Residential Farmlot Subdivision RF
Residential Farmlot Subdivision 1st Class RF-1 P 1,500.00
Residential Farmlot Subdivision 2nd Class RF-2 P 1,000.00
Residential Farmlot Subdivision 3rd Class RF-3 P 750.00





Residential Resorts RRe

Residential Resort 1st Class RRe-1 P 12,000.00
Residential Resorts 2nd Class RRe-2 P 9,000.00
Residential Resorts 3rd Class RRe-3 P 6,000.00
Residential Resorts 4th Class RRe-4 P 4,000.00

Island Regular Residential RRI
Island Regular Residential 1st Class RRI-1 P 450.00
Island Regular Residential 2nd Class RRI-2 P 350.00
Island Regular Residential 3rd Class RRI-3 P 300.00
Island Regular Residential 4th Class RRI-4 P 250.00
Island Regular Residential 5th Class RRI-5 P 175.00
Island Regular Residential 6th Class RRI-6 P 100.00


INDUSTRIAL LANDS

Industrial Lands Regular
Industrial Lands Regular 1st Class I-1 P 2,000.00
Industrial Lands Regular 2nd Class I-2 P 1,500.00
Industrial Lands Regular 3rd Class 1-3 P 1,000.00[xxxix]

Industrial Estates
Industrial Estates 1st Class IE-1 P 2,200.00
Industrial Estates 2nd Class IE-2 P 2,000.00
Industrial Estates 3rd Class IE-3 P 1,500.00
Industrial Estates 4th Class IE-4 P 1,000.00


Section 14. Valuation of Regular Residential Lands. The valuation of residential lands outside the subdivision shall be based on the class of municipalities and other general considerations such as the economic situation and analysis of income data of the municipalities[xl].

Code
RR
Classification of Municipalities[xli]
1st Class
2nd Class
3rd Class[xlii]
4th Class
5th Class[xliii]
ROS -1
P 3,500.00
P 2,000.00
P 1,500.00[xliv]
P 1,000.00
P 800.00
ROS -2
P 2,000.00
P 1,500.00
P 1,000.00[xlv]
P 800.00
P 500.00
ROS -3
P 1,500.00
P 1,000.00
P 800.00
P 500..00
P 375.00
ROS -4
P 1,000.00
P 800.00
P 500.00
P 375.00
P 200.00
ROS -5
P 800.00
P 500.00
P 375.00[xlvi]
P 200.00
P 150.00
ROS -6
P 200.00
P 175.00
P 150.00[xlvii]
P120.00
P 100.00
ROS -7






1st Class Municipalities:
Balayan
Bauan
Calaca (valued accordingly as a 4th Class Municipality)
Lemery
Mabini ( valued accordingly as a 2nd Class Municipality)
Nasugbu
Rosario[xlviii]
San Jose (valued accordingly as a 2nd Class Municipality)
San Juan (valued accordingly as a 4th Class Municipality)
San Pascual ( valued as a 2nd Class Municipality)
Sto. Tomas.

2nd Class Municipalities:
Calatagan (valued accordingly as a 3rd Class Municipality)
Ibaan, Malvar
Padre Garcia
Taysan (valued as a 5th Class Municipality)

3rd Class Municipalities:
Laurel (valued as a 4th class Municipality)
Lian
Lobo
Taal
Talisay
Tuy

4th Class Municipalities:
Agoncillo
Alitagtag
Cuenca
Mataas na Kahoy
San Luis

5th Class Municipalities:
Balete
San Nicolas
Sta. Teresita
Tingloy















CHAPTER V
SCHEDULE OF FAIR MARKET VALUES OF LANDS


Section 15. Schedule of Fair Market Values of Lands in Each Municipality. The SFMVs of lands in each municipality pursuant to the application of the basic principles and standards mentioned in Chapters II – IV are herewith attached as Annex “A” and are made integral part of this Ordinance. (Annex “A” is to be distributed in the Consultative & Public Hearing.)

Section 16. Schedule of Fair Market Values of Perennial Trees. The SFMVs of perennial trees which shall be valued in addition to the values of the agricultural lands are herewith attached as Annex “B” and are made an integral part of this Ordinance.




CHAPTER VI
SCHEDULE OF MARKET VALUES OF BUILDINGS


Section 17. Schedule of Fair Market Values of Buildings. The fair market values of the different types and classes of buildings shall be base on the following schedule of unit values.

CLASSIFICATION OF BUILDINGS AND OTHER IMPROVEMENT

Building shall be classified according to their use and structural characteristics as follows:

Type I-A
Building shall have reinforced concrete foundation, wall footing and floors. Structural members like column, beam and truss shall be steel. Walls and partitions are concrete or masonry construction. Roofing shall be corrugated and aluminum.

Type I-B
Building shall have reinforced foundation, wall-footing, floors, column, beam, and roof. Walls and partitions shall be reinforced concrete or concrete hollow blocks.

Type II-A
Building shall have reinforced concrete foundation, wall footing, column and beam. Floors are reinforced or plain concrete. Walls and partitions shall be concrete hollow blocks. Roof truss frames shall be First-Group Wood (Yakal, Guijo). Roofings shall be Corrugated G.I Sheet, aluminum or Clay Roof Tiles.

Type II-B
Building shall have reinforced concrete foundation, wall-footing column and beam. Floors and beam. Floors are plain concrete. Walls and partitions shall be concrete hollow blocks. Roof truss or rafter frames shall be Second-Group Wood (Apitong and Malugay). Roofing shall be Corrugated G.I. Sheet.

Type II-C

Building shall have reinforced concrete foundation, wall footing and column. Walls shall be concrete hollow blocks while partitions are double-wall framed on the Third Group Wood (Tanguile and Red Lawan). Beams and roof frames (Rafter-Type) are wooden belonging to the Third Group Wood. Roofing shall be corrugated G.I. Sheet.

Type III-A
Building shall have concrete footing. Structural members like post, girt and roof framing (Truss or Rafter Type) are on the First-Group Wood. Flooring shall be plain concrete. Walls are concrete hollow blocks while partitions are double wall framed on the Third-Group Wood. Roofing shall be Corrugated G.I. Sheet.

Type III-B
Building shall have concrete footing. Structural members like post, girder girts and roof framing (Rafter Type) are on the Second –Group Wood. Floor joist and flooring shall be Third Group Wood while sidings and partitions are double wall framed with Third-Group Wood. Roofing shall be corrugated G.I. Sheet.

Type III-C
Building shall have concrete footing. Structural member like post, girder, girts and roof framing (Rafter-Type), floor joist, flooring shall be Third Group Wood. Sidings and partitions are double wall framed with Third Group Wood. Roofing shall be corrugated G.I.Sheet.

Type III-D
Same as Type III-C except sidings and partitions are single walled.

Type IV-A
These are the temporary makeshift structures, lean to or barong-barong type.




















THE BASIC UNIT MARKET VALUES FOR BUILDINGS AND OTHER
STRUCTURES SHALL BE INFLUENCED BY THE FOLLOWING INCREMENTS

Flooring

1. Marble (Romblon) add P500.00/sq
2. Marble (Bulacan) add P450.00/sq.m.
3. Cement Tiles add P530.00/sq.m.
4. Vinyl Tiles add P320.00/sq.m.
5. Wood Tiles add P500.00/sq.m.
6. Crazy-cut Marble add P240.00 / sq.m.
7. Granulitic add P240.00 / sq.m.
8. Vigan Tiles add P310.00 / sq. m.
9. Italian Tiles add P800.00

Walling and Partitioning :
1. Vetrified Tiles add P500.00 / sq.m.
2. Ashlar Marble add P470.00 /sq.m.
3. Brick Tiles add P590.00 / sq.m.
4. Synthetic Rubbles add P180.00 / sq.m.
5. Wash-out Peebles add P140.00 / sq. m

Terrace (Porch)
1. Open P 1,060.00 /sq.m
2. Covered (No Siding) P 5110.00 /sq.m




THE VALUES FOR FENCE AND PLAIN CEMENT PAVEMENT SHALL BE
GOVERNED BY THE FOLLOWING SCHEDULE
A. FENCE
1. 4” Thick CHB
a. both face plastered P 530.00 / sq.m.
b. one face plastered P 460.00 / sq.m.
c. two face unplastered P 400.00/ sq.m.
2. 6” Thick CHB
a. both face plastered P7200.00 / sq.m.
b. one face plastered P660.00 / sq.m.
c. two face unplastered P590.00 / sq.m.
3. CHB Footing (6” x 20”) P250.00 /m
4. Cyclone Wire (effective length 10 m) P112.00/ln. ft.
upward
5.Barb Wire P15.00 / m.
6. Welded Wire (effective height 4ft.) P 100.00 /m.
7. Hog Wire (effective length 135 ft.) P 530.00/ln. ft.
upward


CONCRETE PAVEMENT (4”THK) P300.00/sq.m.

Extra Items as Component Part of a Building
Carport /Garage - 40% of Base Unit Construction Cost (BUCC)
Mezzanine/Attick - 60% of BUCC
Porch - 40% of BUCC
Balcony - 40% of BUCC
Terrace
Covered - 40% of BUCC
Open - 10% of BUCC
Roof Deck
Covered - 40% of BUCC
Open - 20% of BUCC


Section 18. Classification of Buildings. Buildings shall generally be classified in accordance with the structural designs for which they are intended regardless of their actual use, such as residential, commercial, industrial, or farm house. The classification system shall embrace only such structures as are commonly found in the locality.

1. One-Family Dwelling - a detached building for or occupied exclusively by one family.

2. Two-Family Dwelling - a detached building designed fro or occupied exclusively by two (2) families living independently of each other in their respective dwelling unit.

3. Multiple-Family Dwelling – a building used as a house or residence of three or more families living independently from one another, each occupying one or more rooms as a single housekeeping unit.

4. “Accessoria” or Row Houses – a house of not more than two (2) stories composed of a row of a dwelling units entirely separated from one another partly by a wall and with an independent entrance for each dwelling unit.

5. Apartment House – a building or portion thereof which is designed, built, rented, leased, let or hired out to be occupied, as the home or residence of three or more families living
6. independently of each other and doing their own cooking in the building, and shall include flats and apartments.

7. Apartment – a room or suite of two or more rooms, designed and intended for or occupied by one family for living, sleeping and cooking purposes.

8. Hotel – a building with more than 1 sleeping rooms, usually occupied singly, where transients are provided with temporary lodging, with or without meals, and no cooking in any individual suites.

9. Boarding House – a house containing five or more but not more than fifteen sleeping rooms where boarders are provided with lodging and meals are for fixed sum paid by month or week, in accordance with previous arrangement.

10. Dormitory – a building where many persons are provided with board and lodging facilities in common hall for compensation.

11. Lodging House – a building containing not more than fifteen sleeping rooms where lodging is provided for a fixed compensation.

12. Accessory Building – a building subordinate to a main building on the same lot and used for purposes customarily incidental to those of the main building, such as servant’s quarter, garage, pump house, laundry house, etc.

13. Office Building – a building mainly used for offices.

14. Theatre – a building specially designed for the presentation of plays, operas, motion pictures, etc.

15. Warehouses, Bodega or Cold Storage – a building mainly used of stocking, deposit and storage.

16. Supermarket Shopping Center – a building used as a market (large) or store, especially a for store operated in part on a self-serve, cash-carry basis.

17. Factory Building – a building utilized for manufacturing goods or finished products, manufacturing plant.

18. Recreation Building – a building used for recreational purposes like a bowling or billiard halls, night club, clubhouse, etc.

19. Sawmills and Lumber Shed – a building used in the manufacturing of lumber and for storage or stocking.

20. Gasoline Service Station – a retail station servicing automobiles and other motor vehicles with gasoline and oil only.

21. Townhouse – a building used as residential or commercial purposes usually interconnecting each other.

22. Commercial Condominium – a building used either as residential or commercial, the unit of which are individually owned with right of sale.

23. Residential Condominium – a building used either as residential or commercial, the unit of which are individually owned with right of sale.


The fair and current market values of old buildings shall be computed on the basis of replacement cost less depreciation.





CHAPTER VII
ASSESSMENT LEVELS


Section 19. Schedule of Assessment Levels. The schedule of assessment levels applicable to the various categories of real properties subject to assessment for taxation purpose on fair market values, taxable or exempt are as follows;

1) On Lands
Class Assessment Level

Residential 6%
Agricultural 6%
Commercial 25%
Industrial 45%
Mineral 45%
Timberland 6%


2) On Buildings and Other Structures:
i) Residential Fair Market Value

Over Not Over Assessment Level

P 175,000.00 0%
P 175,000.00 300,000.00 10%
300,000.00 400,000.00 15%
400,000.00 500,000.00 20%
500,000.00 750,000.00 25%
750,000.00 1,000,000.00 30%
1,000,000.00 2,000,000.00 35%
2,000,000.00 5,000,000.00 40%
5,000,000.00 10,000,000.00 50%
10,000,000.00 60%

ii ) Agricultural
Over Not Over Assessment Level

P 300,000.00 25%
P300,000.00 500,000.00 30%
500,000.00 750,000.00 35%
750,000.00 1,000,000.00 40%
1,000,000.00 2,000,000.00 45%
2,000,000.00 50%



iii) Commercial/Industrial Fair Market Value

Over Not Over Assessment Level
P 300,000.00 30%
P 300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
750,000.00 1,000,000.00 50%
1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
5,000,000.00 10,000,000.00 75%
10,000,000.00 80%

iv) On Machineries
Class Assessment Level

Residential 50%
Agricultural 40%
Commercial 80%
Industrial 80%


3) On Special Classes – Lands, Buildings, Machineries and other improvements

Actual Use Assessment Level
a. Cultural 15%
b. Scientific 15%
c. Hospitals 15%
d. Local Water Districts 10%
e. Government owned or 10%
controlled corporations
engaged in the supply and/or
generation and transmission
of electric power








CHAPTER VIII
COMPUTING THE VALUES OF LANDS AND BUILDINGS


Section 20. Computing the Values of Sub-Classified Lands[xlix]. To attain an efficient value of all the classified and sub-classified lands, methodical computation consistent with achieving a uniform and standard valuation shall be applied as follows:

Area x Unit Value = Market Value

Market Value x Assessment Level = Assessed Value



Basic Tax = Assessed Value x 1%

SEF = Assessed Value x 1 %

Idle lands = Assessed Value x ½%

Real Property Tax Due = Basic Tax + SEF + Idle land





CHAPTER IX
GENERAL GUIDELINES ON APPRAISAL
STRIPPING METHOD, CORNER INFLUENCE AND ADJUSTMENT FACTORS


Section 20. Classification of Real Property for Assessment Purposes. The assessment of real property shall be classified as residential, agricultural, commercial, industrial, mineral and special.

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. Actual use refers to the purpose for which the property is principally or predominantly utilized by the person in possession of the property.


Section 21. Rules in the Assessment of Real Property. The assessment of real property shall be guided by the following:

a) All real properties, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is situated.

b) The appraisal of real property shall be based on the latest SFMV prepared by the Provincial Assessor and as embodied in this ordinance.

c) Appraisal of real property declared for the first time shall be listed, classified and valued on the basis of the SFMV (either for land or building), and shall be subject to back taxes (if applicable) of not exceeding ten (10) years from the year of initial assessment. Thus the property shall be liable to tax payments for a maximum of eleven (11) years including the current year. The schedule of values applicable for the corresponding periods shall be controlling.

Section 22. Rules for the Assessment of Lands. The assessment of lands shall be guided by the following rules:
a) Lands actually and principally used for residential, agricultural, commercial, industrial or mineral purposes shall be classified and valued according to the schedule of SFMV and assessed at their corresponding levels of assessment as embodied in this ordinance.

b) Lands located in areas of mixed land uses such as residential with commercial or industrial, the predominant use of lands in that area shall govern the classification, valuation and assessment thereof. If the predominant use is residential, all lands in that area shall be assessed as residential; if the predominant use is commercial or industrial, all lands in that area shall be assessed as such.

c) A lot or parcel of land classified and appraised as commercial or industrial occupied by a building used both for residential and commercial or industrial purposes shall be assessed on the basis on the predominant use 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 SFMV; if industrial or commercial, the assessment level for industrial or commercial shall be applied on the basis of the SFMV.

d) Vacant lands shall be assessed like similar lands in the locality.

e) Lands actually, directly and exclusively used for religious, charitable or educational purposes located in residential, commercial or industrial areas shall be assessed as residential, commercial or industrial, as the case may be.

If those lands 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 land lands in that area shall govern the assessment of those lands used for religious, charitable or educational purposes.

f) Agricultural lands convertible into urban subdivisions 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. Portions of the subdivision not yet developed and converted into residential, commercial or industrial lots shall be classified, valued and assessed as agricultural.

g) Roads or streets in urban subdivisions, sewer system, flood control, erosion buffer zone or open spaces, unless already donated or turned over to the barrio (barangay) or shall be listed in the name of the subdivision owner and shall be valued on the basis of the cost of cementing, asphalting or paving them with gravel and sand per square meter. The value of roads or streetlots, including the cost of improving the same plus the gate and fencing shall be adjusted at 10% of the value and shall be assessed in aggregate at the rate not exceeding the assessment level applicable to lands located in the subdivision.

h) As soon as portion of the subdivision is finally divided, converted and developed into residential lots, the same shall be valued as assessed like similar lots in the locality.

i) Rawlands or agricultural lands reclassified to residential, commercial or industrial lands which remain undeveloped within two (2) years after its reclassification shall revert back to its original classification.

Section 23. General Guidelines. As a general rule, the following methods, variables and factors shall be used in the appraisal of lands.

a) Stripping Method. The Stripping Method shall be applied as such:
1) The full unit base values (100%) for urban lands (Residential) shall be applied to the first strip of the lands fronting a street road:
Class Standard Depth
Residential 20 m

2) Land value beyond the standard depth shall be adjusted as follows:
Second Strip 80%
Third Strip 60%
Fourth Strip 40%
Fifth Strip and
Remaining Portion 20%

3) Provided however that, in the case the parcel of land abutting two parallel streets/roads with different unit base value, the stripping and valuation thereof shall be based on the street or road with higher base value but in no case that the portion abutting the other street be lower than the unit base value of the street.

4) Adjustment of Value by Stripping Method shall be adopted where the length of the land exceeds the established depth for residential area, as determined by the local assessor and indicated in the Schedule of Fair Market Values. The Stripping Method shall not be applied on commercial and industrial properties.

5) Stripping method shall not apply to corner lots.

6) Subdivision lots are not subject to stripping.


b) Adjustment Factors
1) For low and sunken area of urban land a reduction from the market value may be
allowed in the amount equivalent to the cost of filling, but in no case will the
reduction exceed 30% of the market value;

2) Corner lot shall be valued on the basis of the higher unit value of any of the streets/roads where it is located with 10% of the value.

3) Rurban areas shall be appraised at a value not exceeding the lowest unit value of a residential class and assessed on the basis of its actual use.


c) Adjustment Factors for Golf Courses. Improvement such as Green shall be valued at P279.per square meter in addition to the FMV of the Golf Course.


d) Adjustment Factors for Memorial Parks and Cemeteries. Private memorial park shall be classified and assessed as commercial. Roads, pathways, basements, parks, open spaces or lawn area shall be valued at 10% of the applicable schedule of market values. Building and other structures shall be appraised in accordance with the schedule of market value and assessed as commercial.

e) Adjustment Factors for Agricultural Lands
1) Agricultural lands planted with perennial trees shall be valued as per SFMV plus an additional value per tree as per specified in this Ordinance.

2) Locational adjustment factor for agricultural lands and perennial trees shall be as follows:

a. Types of Road % of Reduction from Market Value

Along National or Provincial Road 0
Along all Weather Roads 3%
Along Dirt Road 6%
No Road Outlet 9%

b. Type of Location

Distance in Kilometer to All Weather Road Local Trading Center

0 to 1 0 +5%
Over 1 to 3 -2% 0
Over 3 to 6 -4% -2%
Over 6 to 9 -6% -4%
Over 9 -8% -6%

f) Adjustment Factors for the Appraisal of Buildings.
1) To account for the loss in value of a building due to its location, there shall correspond a 1% deduction for every one (1) kilometer distance away from the trading center or Poblacion.

2) For building, machinery and other man-made structure subject to re-assessment or when the date of their initial assessment does not coincide with the date of completion or acquisition, depreciation must be consistently applied. When the structure or machinery incur depreciation exceeding the straight line table provided in this Ordinance, the unit in place depreciation fort the part or the whole structure or machinery based on the cost to repair worn-out parts back to its original condition shall be deducted from the value of the structure or machinery. When building is not fully occupied or when the machinery is not being used at maximum level of production or capacity consistently due to the effect of supply and demand, economic obsolescence shall be applied equal to the unused capability of the structure or machinery but not to exceed 80% of its annual market value except in case when the operation of the machinery ceased, assessment of the machinery shall be temporarily transferred to exempt roll. Functional obsolescence have no equivalent depreciation to adjust the market value of the property hence for the purpose of real property assessment, structure and machinery in idle state shall be assessed at 5% assessment level similarly provided in RA 7160 for idle lands.


For valuation of structures such as but not limited to equipment foundations, wharf, pit, lagoons which the schedule of market value for buildings not provided, in the Construction Materials Wholesale Price Index (CMWPI) shall be used in obtaining replacement cost new of that structure.

CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX
1985-100
Base Year

Year Price Index

1990 157.42
1991 182.56
1992 189.33
1993 191.02
1994 200.35
1995 208.06
1996 214.27
1997 219.30
1998 226.90
1999 228.80
2000 234.00
2001 243.70
2002 250.10
2003 266.50
2004 306.10
2005 382.80
2006 374.60
2007 387.70
2008 439.30

i) Other civil structures shall have the following value:
a. Bituminous surface treatment - P 38,000.00/ M.T
b. Bituminous concrete surface treatment - 4,500.00/M.T
c. RCDG Reinforced Concrete Double Girder - 650,000.00/L.M
d. Pre-stressed Concrete I Beam - 700,000.00/ L.M.
e. Steel Bridge - 600,000.00/ L.M.
f. Timber Bridge (Bailey Panel) - 300,000.00/ L.M.
g. Riprapping - 1,298.00/cu.m


Section 24. Depreciation, Appraisal and Assessment of Machinery. 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 of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost.

If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling and installation charges 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 fixed by the Central Bank.


Depreciation Allowance for Machinery - For purposes 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 may be, for each year of use: Provided, however, that the remaining value for all kinds 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 25. Other Related Adjustments.

1) For the purpose of simplifying the assessment, fixing the levels of assessment for buildings and other improvements shall be reduced gradually in every revision period.

2) The schedule of base unit market value shall be controlling, but where the property to be assessed is of a kind not classified in this schedule or of any kind for which the value is not herein fixed, it shall be appraised at the current and fair market value, independently of this schedule by the Provincial Assessor upon the concurrence of the Sangguniang Panlalawigan.

3) Nothing in this ordinance or any part hereof shall be construed to absolve landowners from complying with all legal requirements under national and local laws for the proper reclassification/conversion of their lands such as, but is not limited to securing the necessary permits, documents, clearances, ordinances from concerned municipality, the provincial government, the DENR, DAR and HLURB and other local national government agencies.

4) The controlling copy of this Ordinance which shall serve as the main reference shall be the copy and file at the Sangguniang Panlalawigan of Batangas.


Section 26. Depreciation. Building depreciate in value due to wear and tear and other factors brought about by the passage of time. Hence, it is necessary that a schedule of base unit construction cost for buildings with depreciation table for the same be prepared. The table may be established through the combined observed depreciation and effective age method.

The valuation authorized in the next section shall be subject to adjustments in accordance with the following schedule of depreciation.
Schedule of Depreciation
Age
Type 1-A
Type I-B
Type
II-A
Type
II-B
Type
II-C
Type III-A
Type III-B
Type III-C/D
Type
IV-A
% o f D e p r e c i a t i o n
0-2
2
2
3
3
4
4
5
5
6
2-5
4
4
5
6
6
10
14
14
13
5-8
7
8
10
12
14
18
22
24
27
8-12
10
13
14
17
21
25
30
35
38
12-16
14
17
18
22
28
33
37
46
47
16-20
17
21
21
25
34
40
44
56

20-25
20
24
24
29
40
47
52
65

25-30
24
27
27
33
45
55
60
72

30-35
27
30
30
36
49
63
69
79

35-40
30
33
33
39
53




40-45
33
36
36
43
56




45-50
35
39
39
46
60




50-55
38
42
43
49
63




55-60
41
45
46
53
66




60-65
44
48
49
56
69




65-70
47
51
52
60
72




70-75
50
54
55
63
74




75-80
53
57







80-85
56
60

























SCHEDULE OF UNIT VALUES FOR BUILDINGS AND OTHER IMPROVEMENTS
(Pesos per Sq.m)

1
2
3
6
7
8
9
Type
One Family Residence
Assessoria
Or Town House
Apartment
4
Boarding House
5
Lodging House
Motel
Accessory Bldg.
Garage/Quarters
Laundry House
Guard House
Mini-Store
Rentable Space
Etc.
School Bldg.
/Hospital/Funeral Parlor
High Rise Bldg.,
Condominium
Hotel/Office Building/Banks
Theater/
Church
/Assembly House
I A
X
X
X
X
9,290.00
11,300.00
8,590.00
IB
11,202.00
7,350.00
9,050.00
7,040.00
7,950.00
10,020.00
7,700.00
IIA
7,240.00
6,330.00
7,890.00
6,560.00
6,610.00
8,740.00
7,410.00
II B
6,156.00
5,580.00
6,250.00
5,870.00
5,980.00
7,520.00
7,040.00
II C
5,290.00
4,900.00
5,450.00
5,090.00
5,190.00
6,680.00
6,520
IIIA
4,650.00
X
X
X
X
X
X
IIIB
4,030.00
X
X
X
X
X
X
IIIC
3,370.00
X
X
X
X
X
X
IIID
2,730.00
X
X
X
X
X
X
IV
2,310.00
X
X
X
X
X
X


10
11
12
13
14
15
16
Type
Factory/Industrial House/Hangers Warehouse Storage/ (Non-Carrying Live Load)
Market Shopping Center/Mall/
Restaurant
Parking Bldg.
Gymnasium
Coliseum
Recreation
a)Bowling Lanes
b) Club
Sawmills
And Lumber Shed
Gasoline Station Gas Refilling
Swimming Pool and Bath House
I A
8,240.00
8,450.00
6,640.00
8,410.00
X
6,980.00
7,720.00
IB
6,810.00
7,640.00
5,970.00
7,610.00
X
X
X
IIA
5,600.00
7,340.00
5,430.00
7,100.00
X
6,330.00
X
II B
5,070.00
6,940.00
5,090.00
6,530.00
X
5,350.00
X
II C
4,180.00
5,710.00
4,700.00
5,210.00
4,480.00
4,670.00
X
IIIA
X
X
4,470.00
X
3,900.00
X
X
IIIB
X
X
3,560.00
X
3,400.00
X
X
IIIC
X
X
2,2710.00
X
2,480.00
X
X
IIID
X
X
X
X
2,080.00
X
X
IV
X
X
X
X
X
X
X


17
18
19
20
21
22
Type
Barn House/
Poultry/
Grain House
Livestock
Production Bldg., (Carrying Live Load)
Production Bldg.
Gazebo/Pavillion/
Shed/Lanai
Green House
Piggery/
Cattle Shed/
Horse Stable
Steam Bath
I A
X
17,100.00
12,000.00
4,500.00
X
X
IB
X
X
X
3,900.00
X
X
IIA
X
X
X
3,100.00
X
X
II B
X
X
X
2,550.00
X
2,100.00
II C
X
X
X
2,050.00
X
X
IIIA
3,860.00
X
X
1,600.00
2,900.00
X
IIIB
2,520.00
X
X
1,200.00
2,600.00
X
IIIC
2,200.00
X
X
800.00
2,200.00
X
IIID
1,910.00
X
X
X
1,575.00
X
IV
1,590.00
X
X
X
900.00
X

Average Peso/Dollar : Price Index of Locally Manufactured
Interbank Exchange Rate Machinery
(1959-2008) (1959-2008)

Year Peso Per Dollar Year Price Index


1959 2.2500 1959 1.93
1960 3.0080 1960 2.29
1961 3.4500 1961 2.72
1962 3.8081 1962 2.88
1963 3.8997 1963 3.08
1964 3.8998 1964 3.11
1965 3.9009 1965 3.17
1966 3.8954 1966 3.27
1967 3.9152 1967 3.31
1968 3.9158 1968 3.39
1969 3.9191 1969 3.79
1970 6.0246 1970 4.78
1971 6.4317 1971 5.39
1972 6.6748 1972 5.89
1973 6.7562 1973 6.80
1974 6.7879 1974 8.94
1975 7.2479 1975 10.48
1976 7.4402 1976 11.34
1977 7.4023 1977 12.02
1978 7.3658 1978 13.39
1979 7.3776 1979 14.82
1980 7.5114 1980 16.59
1981 7.8997 1981 18.33
1982 8.5400 1982 20.78
1983 11.1127 1983 23.20
1984 16.6987 1984 36.70
1985 18.6073 1985 46.99
1986 20.3857 1986 49.68
1987 20.5677 1987 52.53
1988 21.0947 1988 57.22
1989 21.7367 1989 59.52
1990 24.3105 1990 65.51
1991 27.4789 1991 71.36
1992 25.5125 1992 72.29
1993 27.1198 1993 73.98
1994 26.4172 1994 74.69
1995 25.7144 1995 74.30
1996 26.2157 1996 74.61
1997 29.4796 1997 75.39
1998 40.8931 1998 100.00
1999 39.0890 1999 117.62
2000 44.1938 2000 117.62
2001 50.9927 2001 117.50
2002 51.6036 2002 117.70
2003 54.2033 2003 125.60
2004 56.0399 2004 129.8
2005 55.0855 2005 136.10
2006 51.3143 2006 141.40
2007 46.1484 2007 142.50
2008 44.2889 2008 199.90
2009 47.3956 as of Feb. 2009
____________


For the purpose of simplifying the assessment, levels of assessment for building and other improvement shall be reduced gradually by contracting the ranges in every revision period. However, its effect to local government units shall be considered before diminishing the variables.



CHAPTER X
SPECIAL LEVIES ON REAL PROPERTY


Section 27. Additional Levy on Real Property for the Special Education Fund. The province shall levy and collect an annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF).

Section 28. Ad Valorem Tax on Idle Lands – In addition to the basic real property tax and the SEF, the province shall likewise levy and collect an annual tax on idle lands at the rate of one-half (1/2) percent of the assessed value of the property, which shall increase by another one-half (1/2) percent every year until the maximum rate of five (5) percent is attained.

Section 29. Idle Lands Coverage. For purpose of real property taxation, idle lands shall include the following:
a. Agricultural lands, more than one (1) hectare, suitable for cultivation, dairying, inland fishery and other agricultural uses, one half (1/2) of which remain cultivated or unimproved by the owner of the property or person having legal interest therein. Agricultural lands planted to permanent or perennial crops with at least fifty (50) trees to a hectare shall not be considered idle lands. Lands actually used for grazing purposes shall likewise not be considered idle lands;

b. Lands, other than agricultural, more than one thousand (1,000) square meters in area one half (1/2) of which remain unutilized or unimproved by the owner of the property or person having legal interest therein.

c. Regardless of land area, this provision shall apply to residential lots.





Section 30. Idle Lands Exempt from Tax. Idle lands may be exempt from the from additional levy by reason of force majoure, civil disturbance, natural calamity when ownership of the land is under litigation or any cause or circumstances which physically or legally prevents the owner of the property or person having legal interest therein from improving or cultivating the same.


Section 31. Listing of Idle Lands by the Municipal/Provincial Assessors. The Municipal/Provincial Assessors shall make and keep an updated record of all idle lands located within the locality. For purposes of collection, the Provincial Assessor shall furnish a copy to the Provincial Treasurer who shall notify, on the basis of such record, the owner of the property or person having legal interest therein of the imposition of the additional tax.



CHAPTER XI
COLLECTION OF REAL PROPERTY TAX


Section 32. Date of Accrual of Tax. The real property tax and the special levies in this ordinance shall accrue on the first day of January of 2010 and from that date it shall constitute a lien on the property which shall be superior to any other lien, mortgage, or encumbrance of any kind whatever, and shall be extinguished only the payment of the delinquent tax.

Section 33. Collection of Tax. The collection of the real property tax and the special levies with interest thereon and related expenses, and the enforcement of the remedies provided herein or in any applicable law, shall be the responsibility of the Provincial/Municipal Treasurer. The Provincial Treasurer may deputize the barangay treasurer to collect all taxes on real property located in the barangays provided, that the barangays treasurer is properly bonded for the purpose: Provided, further, that the premium on the bond shall be paid by the Provincial Government.

Section 34. Provincial Assessor to Furnish Provincial Treasurer with Assessment Roll. The Provincial Assessor shall prepare and submit to the Provincial Treasurer on or before the thirty first (31st) day of December each year, an assessment roll wherein there shall be listed all persons including brief but sufficient description of the real properties entered therein, their present owners, and the dates of their most recent transfer or alienation accompanied by copies of corresponding deed of sale, donation or partition or other forms of alienation.

Section 35. Payment of Real Property Tax. The basic real property tax and the special levies, shall be due and payable in four quarterly payments without interests, to wit:
1) First Quarter Payment: on or before the thirty first (31st) of March;
2) Second Quarter Payment:, on or before the thirtieth (30th) of June;
3) Third Quarter Payment: on or before the thirtieth (30th) of September;
4) Fourth Quarter Payment: on or before the thirty first (31st) off December.

Section 36. Application of Tax Payment. Payment of real property taxes shall first be applied to prior years delinquencies, interests and penalties, if any, only after said delinquencies are settled may tax payments be created for the current period.



Section 37. Tax Discount on Advanced Payment.
Advanced Payment: If the basic real property tax, and special levies on idle lands are paid on or before January 15 of the tax year, then a twenty percent (20%) discount shall be granted to the taxpayer;

Section 38. Tax Discount on Prompt Payments. If the basic real property tax and the special levies on idle lands are paid on or before January 30 for the 1st Quarter Payment:; on or before the April 30 for the Second Quarter Payment; on or before the , on or before July 30 for the Third Quarter Payment; and on or before the October 30 for the Fourth Quarter Payment, then a ten percent (10%) discount shall be granted to the taxpayer.

Section 39. Penalties for Late Payment. In case of failure to pay the basic real property tax, SEF and levy on special lands, in accordance with the Schedule of Quarterly Payments, then an interest at the rate of two percent (2%) per month on the unpaid amount or fraction thereof shall be imposed. That in no case shall the total interest on unpaid tax or portion thereof exceed thirty six months.

Section 40. Payment Under Protest.
a) No protest shall be entertained unless the taxpayer first pay the tax. There shall be annotated on the tax receipts the words “paid under protest.” The protest in writing be filed within thirty (30) days from payment of the tax to the Provincial Treasurer who shall decide the protest within sixty (60) days from receipt.

b) The tax or a portion thereof paid under protest shall held in trust by the treasurer concerned;
c) In the event that the protest is finally decided in favor of the taxpayer, the amount of portion of the tax protested shall be refunded to the protestant, or applied as tax credit of his existing future tax liability.
d) In the event that the protest is denied or upon the lapse of the sixty (60) day period prescribed in subparagraph a) the taxpayer may avail of the remedies provided for in this Ordinance[l].

Section 41. Repayment of Excessive Collections. When an assessment of basic real property tax, or any other tax levied is found to be illegal or erroneous and the tax is accordingly reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and interest with the Provincial Treasurer within two (2) years from the date the taxpayer is entitled to such reduction or adjustment.

The Provincial Treasurer shall decide the claim of tax refund or credit within sixty (60) days from receipt thereof, in case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies provided herein or in other applicable laws.


CHAPTER XI
Remedies of Provincial Government for Collection
of Real Property Tax


Section 42. Notice of Delinquency in the Payment of Real Property.
a) When the real property tax or other tax herein imposed becomes delinquent, the Provincial/Municipal Treasurer shall immediately cause a notice of the delinquency to be posted at the main entrance of the Provincial Capitol/Municipal Hall and in publicly accessible and conspicuous place in each municipality. The notice of delinquency shall also be published once a week for two (2) consecutive weeks, in a newspaper or general circulation in the locality.


b) Such notice shall specify the date upon which the tax became delinquent and shall state the personal property may distrained to effect payment. It shall likewise state that at any time before the distraint or personal property payment of the tax with surcharges, interest and penalties may be made in accordance with the succeeding action, and unless the tax, surcharges and penalties are paid before the expiration of the year for which the tax is due, except when the notice of assessment or special levy is contested administratively or judicially, the delinquent real property will be sold at public auction, and the title of the property will be vested in the purchaser, subject however, to the right of the delinquent owner of the property or any person having legal interest thereon to redeem the property within one (1) year from the date of sale.

Section 43. Interest in Unpaid Real Property Tax. If in case of failure to pay the basic real property tax and special levies herein upon the expiration periods herein prescribed or when due, as the case may be, shall subject the taxpayer to the payment of interest at two (2) percent per month on the unpaid amount or a fraction thereof, until the delinquent tax shall have been fully paid; provided, further, that no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six (36) months;

Section 44. Remedies for the Collection of Real Property Tax. For the collection of the basic real property tax and special levies, the Province may avail of the remedies by administrative action through levy on real property or by judicial action.

Section 45. Government’s Lien. The real property tax and other taxes herein levied constitute a lien on the property subject to tax, superior to all liens, charges or encumbrances in favor of any person, irrespective of the owner or possessor thereof, enforceable by administrative or judicial action, and may only be extinguished upon payment of the tax and the related interest and expenses.

Section 46. Levy on Real Property. After the expiration of the time required paying the basic real property tax or other tax herein levied, real property subject to such tax may be levied upon the issuance through the issuance of a warrant or on before, or simultaneously with the institution of the civil action for the collection of the delinquent tax. The Provincial Treasurer when issuing a warrant of levy shall prepare a daily authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of legal execution. The warrant shall be mailed to or served upon the delinquent owner of the real property or person having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or occupant of the property. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the assessor and the Register of Deeds who shall annotate the levy on the tax declaration and certificate of title of the property, respectively.

The levying officer shall submit a report on the levy to the Sangguniang Panlalawigan within ten (10) days after receipt of the warrant by the owner of the property or person having legal interest therein.


Section 47. Advertisement and Sale. - Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as specified in the notice of the sale. Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the sanggunian concerned, and which shall form part of his records. The local treasurer shall likewise prepare and deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings: Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein. The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale.

Section 48. Redemption of Property Sold. - Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the local treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption which shall be issued by the local treasurer or his deputy. From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof. The local treasurer or his deputy, upon receipt from the purchaser of the certificate of sale, shall forthwith return to the latter the entire amount paid by him plus interest of not more than two percent (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale.

Section 49. Final Deed to Purchaser. - In case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the local treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests.

Section 50. Purchase of Property By the Local Government Units for Want of Bidder. In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property tax and the related interest and costs of sale the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court. Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the local government unit concerned.

Section 51. Resale of Real Estate Taken for Taxes, Fees, or Charges. The sanggunian concerned may, by ordinance duly approved, and upon notice of not less than twenty (20) days, sell and dispose of the real property acquired under the preceding section at public auction. The proceeds of the sale shall accrue to the general fund of the local government unit concerned.

Section 52. Further Distraint or Levy. Levy may be repeated if necessary until the full amount due, including all expenses, is collected.

Section 53. Collection of Real Property Tax Through the Courts. The local government unit concerned may enforce the collection of the basic real property tax or any other tax levied under this Title by civil action in any court of competent jurisdiction. The civil action shall be filed by the local treasurer within the period prescribed in the Local Government Code, Section 270.

Section 54. Action Assailing Validity of Tax Sale. - No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein under this Title until the taxpayer shall have deposited with the court the amount for which the real property was sold, together with interest of two percent (2%) per month from the date of sale to the time of the institution of the action. The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails. Neither shall any court declare a sale at public auction invalid by reason of irregularities or informalities in the proceedings unless the substantive rights of the delinquent owner of the real property or the person having legal interest therein have been impaired.

Section 55. Payment of Delinquent Taxes on Property Subject of Controversy. In any action involving the ownership or possession of, or succession to, real property, the court may, motu propio or upon representation of the provincial, city, or municipal treasurer or his deputy, award such ownership, possession, or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action.

Section 56. Treasurer to Certify Delinquencies Remaining Uncollected. The provincial or municipal treasurer or their deputies shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-payment, and shall submit the same to the sanggunian concerned on or before December thirty-first (31st) of the year immediately succeeding the year in which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herein.

Section 57. Periods Within Which To Collect Real Property Taxes. The basic real property tax and special levies under this Title shall be collected within five (5) years from the date they become due. No action for the collection of the tax, whether administrative or judicial, shall be instituted after the expiration of such period. In case of fraud or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment. The period of prescription within which to collect shall be suspended for the time during which:

(1) The local treasurer is legally prevented from collecting the tax;
(2) The owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; and
(3) The owner of the property or the person having legal interest therein is out of the country or otherwise cannot be located.


CHAPTER XII
REMEDIES OF THE TAXPAYER


Section 58. Question of Constitutionality of Legality. The constitutionality or legality of this tax ordinance may be raised by any taxpayer within thirty (30) days from the effectivity thereof to the Secretary of Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal; Provided, however, that such appeal shall not have the effect of suspending the effectivity of the ordinance and the accrual and payment of the tax, fee or charge levied therein: Provided, finally, That within thirty (30) days after receipt of the decision or lapse of the sixty-day period without the Secretary of Justice acting upon the appeal, the aggrieved party may file the appropriate proceeding with a court of competent jurisdiction.

Section 59. Appeal of Assessment. Any owner or person having legal interest in the property who is not satisfied with the action of the Provincial Assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Local Board of Assessment appeals of the province or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal.
Section 60. Procedure on Assessment Appeals. Chapter 3, Sections 226 to 231 of R.A. 7160 (Local Government Code) are hereby adopted and incorporated in this Ordinance.
Section 61. Effect of Appeal on the Payment of Real Property Tax. - Appeal on assessments of real property made under the provisions of this Code shall, in no case, suspend the collection of the corresponding realty taxes on the property involved as assessed by the provincial or municipal assessor, without prejudice to subsequent adjustment depending upon the final outcome of the appeal.

CHAPTER XIII
DISPOSITION OF PROCEEDS


Section 62. Distribution of Proceeds. - The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction in accordance shall be distributed as follows:
(a) In the case of provinces:
(1) province - Thirty-five percent (35%) shall accrue to the general fund;
(2) municipality - Forty percent (40%) to the general fund of the municipality where the property is located; and
(3) barangay - Twenty-five percent (25%) shall accrue to the barangay where the property is located.
(b) In the case of municipalities:
(1) municipality - Thirty-five percent (35%) shall accrue to the general fund of the municipality where the property is located;
(2) barangays - Thirty percent (30%) shall be distributed among the component barangays of the municipality where the property is located in the following manner:
(i) Fifty percent (50%) shall accrue to the barangay where the property is located;
(ii) Fifty percent (50%) shall accrue equally to all component barangays of the municipality.
(c) The share of each barangay shall be released, without need of any further action, directly to the barangay treasurer on a quarterly basis within five (5) days after the end of each quarter and shall not be subject to any lien or holdback for whatever purpose
Section 63. Application of Proceeds of the Additional One Percent SEF Tax. The proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the Local School Board.
Section 64. Proceeds of the Tax on Idle Lands. The proceeds of the additional real property tax on idle lands shall accrue to the respective general fund of the province

Section. 65. Proceeds of the Special Levy. The proceeds of the special levy on lands benefited by public works, projects and other improvements shall accrue to the general fund of the Province which financed such public works, projects or other improvements.
CHAPTER XIV
DUTIES OF PROPERTY OWNERS/ADMINISTRATORS:PENALTIES


Section 66. 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 improvement therein, within the municipality, or their duly authorized representative, to prepare, or cause to be prepared and file with the provincial assessor or to the municipal assessor concerned, 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 during the period from January (1st) to June thirtieth (30th).


Section 67. Duty of Person Acquiring Real Property or Making Improvement Thereon. It shall be the duty of any person, natural or juridical, or his authorized representative, acquiring at any time real property, to prepare, or cause to be prepared, and file with the provincial assessor or the municipal assessor concerned, a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier.

Any person, natural or juridical, or their duly authorized representative required to file the sworn statement herein referred to in the preceding sections, who fail to comply within the prescribed period of filing shall, upon conviction, be punished by a fine or imprisonment, or both such fine and imprisonment, at the discretion of the court, as follows ;

A fine of not less than five hundred pesos (P500.00) nor more than two thousand pesos
(P2,000.00) or by imprisonment of not less than one (1) month nor more than six (6)
months if a natural person ;

A fine of not less than five thousand pesos (P5,000.00) nor more than twenty thousand
pesos (P20,000.00) or by imprisonment of whoever is the president, manager or
administrator, of not less than one (1) month nor more than six (6) months if a juridical
person.








CHAPTER XV
ADOPTION, SEPARABILITY, REPEAL AND EFFECTIVITY CLAUSE


Section 68. Adoption of Related Provisions. Sections 227, 228, 229 & 230 and Section 277, Section 278, Section 279, Section 280, Section 281, Section 282 and Section 283, Chapter 8 on Special Provisions, Book II of RA &7160 otherwise known as the Local Government Code of the Philippines are hereby adopted as salient provisions and part of the Ordinance.[li]
Section 69. Separability Clause. If, for any reason or reasons, any part or provision of this Code shall be held to be unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect.

Section 70. Repealing Clause. All ordinances or regulations inconsistent with this Code are hereby repealed, amended or revised accordingly.

Section 71. Publication. This ordinance shall within ten (10) days from its approval be published in a newspaper of general circulation in this province for three consecutive issues of said newspaper.

Section 72. Notice of Assessment. The Provincial and Municipal Assessors shall furnish the provincial and municipal treasurers and the individual taxpayers a copy of the new assessment of their respective real properties before December 31, 2009.

Section 73. Effectivity Clause. All assessment and valuation embodied herein shall take effect on the 1st day of January 2010.

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