Vous êtes sur la page 1sur 42

Fundamental

Principles in
Assesment of Real
Property Taxes

1.

The basis of the appraisal is the


current and fair market value of the
real property.
2. The basis of the classification
should be the actual use.
3. The appraisal, assessment, levy and
collection should not be let to any
private person.
4. The appraisal and assessment must
be equitable.

TYPES OF REAL PROPERTY TAX

1.Basic Real Property Tax


Coverage

Cities and Municipalities


within Metro Manila
Provinces

RPT
rate
2%
1%

2. Special Levies:
The following tax computations are only for land with fair
market value ofEDUCATION
2 million pesos. If there is an
A. SPECIAL
FUND
improvement on the land, like a house or a building, the
assessed value
is computed
separately. This is because real
(SEF) TAX
1%
additional
there are different assessment levels for improvements.
the taxto
dues for
land and the improvement
to get
the
estate Add
tax
finance
the
SEF
total tax amount.
B. Ad Valorem Tax on Idle Landsnot exceeding 5% of the assessed
value of the property

What are considered as Idle Lands?


1. Agricultural Lands- More than 1 hectare if more
than remain uncultivated or unimproved by the
owner or person having legal interest therein
NOT IDLE LANDS:
Agricultural lands with at least 50 trees to a
hectare
Lands used for grazing purposes

Classification of Land for Purposes


of Assesment
1. Commercial
2. Residential
3. Mineral
4. Industrial
5. Tmberland
6. Special

Actual Use of the Property is the


Basis for Assessment
Real property shall be classified, valued and assessed
on the basis of actual use regardless of where it is
located, whoever owns it and whoever uses it.
Unpaid realty taxes is chargeable to the person who
had actual or beneficial use and possession regardless
of whether or not he is the owner.

STEP 1. Declaration of Real Property


A. Declared by Owner or Administrator
When: Once every three (3) years
during the period from January 1June 30
How: File a sworn declaration with
the assessor with description of the
property

NOTE:
1. If newly acquired property:
A. File with the assessor within 60 days from date
of transfer
B. Sworn statement containing FMV and
description of property
2. If improvement on real property:
A. File within 60 days upon completion or
occupation (whichever is earlier)
B. Sworn statement containing FMV and the
description of property

Note: If property declared for the first


time, the property shall be assessed
for back taxes
a. For not more than 10 years prior to
the date of initial assessment
b. Taxes shall be computed on the
basis of applicable schedule of
values in force during the

Procedure:
1. Take the schedule of the Fair Market Value (FMV)

FMV, defined, is the highest price a property can


command if put up for sale in an open market,
allowing a reasonable time to find a buyer for it,
with both seller and buyer acting prudently and
knowledgeably, and assuming there is no undue
stimulus affecting its value.

For purposes of taxation, the determination of the


fair market value and the pegging of the
assessment levels for land and improvements like
houses or buildings are conducted by

municipal assessors for


municipalities within Metro Manila and the
provincial assessors for
municipalities outside the
metropolis. Cities have their own government
assessors.

In practice, however,
the Fair Market Value
is based on the
assessment of the
municipal or city
assessor as written in

Tax
Declaration.
the

2. Compute for the Assessed Value


Assesses Value= FMV x Assessment
Level

What is Assessment Level?

Assessment Level is the


percentage applied to the
FMV to determine the
taxable value of real
property

The Assessment Level shall be fixed


through ordinances of the Sangguniang
Panlalawigan, Sangguniang Panglungsod,
or the Sangguniang Pambayan of the
municipality within the Metro Manila area.
To get this data, look for the tax Ordinance
of the city or municipality where your
property is located.

MAXIMUM LEVEL ASSESMENT


RATES

LAND
CLASS
Residential
Timberland
Agricultural
Commercial
Industrial

Assessment
Level
20%
20%
40%
50%
50%

Buildings and Other Structures


RESIDENTIAL
AGRICULTURAL
COMMERCIAL/ INDUSTRIAL
TIMBERLAND

FMV OVER
0.00

BUT NOT OVER ASSESMENT


LEVEL
175, 000
0%

175,000

300, 000

10%

300, 000

500, 000

20%

500, 000

750,000

25%

750, 000

1, 000, 000

30%

1, 000, 000

2, 000, 000

35%

2, 000, 000

5, 000, 000

40%

FMV OVER

BUT NOT
OVER

5, 000, 000 10, 000,


000
10, 000,
000

ASSESMENT
LEVEL

50%
60%

3. Compute for the Real Property


Tax

RPT= Assessed Value x


Tax Rate

What are the RPT Rates?


Coverage
Cities and Municipalities within Metro
Manila
Provinces

RPT
rate
2%
1%

Lets compute!
Lets say for example that we want to compute
the

assessed value

land

of a

residential

whose fair market value is pegged at

million

pesos by the municipal assessor.

The formula for getting the assessed


value of this property is: fair market
value x assessment level =
assessed value. Hence, 2 million x 20
percent = 400,000 pesos.

Next step: Compute for the Basic


Real Estate Tax
To do this, we multiply the assessed value by the rate of basic
real estate tax, which is pegged at not more than 1 percent for
the provinces and not more than 2 percent for cities and Metro
Manila municipalities.
The basic real estate tax for residential land with an assessed

assessed
value x tax rate = amount of tax.
value of 400,000 pesos is computed this way:

Let us say that this land is located in a town


in Cebu, where the tax rate is 1 percent,
then the amount of tax for a residential
land with an assessed value of 400,000 is
4,000 pesos.

The assessed value is still used in computing the


special education fund tax, which is a uniform
rate of 1 percent. To get the tax amount, multiply
the assessed value by the tax rate of 1 percent.
So, 400,000 (assessed value) x 1 percent
(special education fund tax rate) = 4,000 pesos
(tax amount).

So how much is the REAL PROPERTY TAX DUE?


P4, 000 (basic real property tax) + P4, 000 (SEF)= 8,
000 (Tax Due)

The following tax computations are only for land


with fair market value of 2 million pesos. If there
is an improvement on the land, like a house or a
building, the assessed value is computed
separately. This is because there are different
assessment levels for improvements.
Add the tax dues for land and the improvement
to get the total tax amount.

FMV for Machinery


1. For Brand New Machinery, FMV is the
acquisition cost
2. In all other cases:
FMV= Remaining Eco. Life
x
Replacement Cost

Estimated Eco.Life

Machinery
-embraces machines, equipments, 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
installations and appurtenant service facilities, those
which are mobile, self-powered or self-propelled and
those not permanently attached to the real property but
which are ACTUALLY, DIRECTLY, and EXCLUSIVELY USED
to meet the needs of a particular industry, business or
activity necessary for the manufacturing, mining,
logging, commercial, industrial or agricultural purposes.

Vous aimerez peut-être aussi