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Principles in
Assesment of Real
Property Taxes
1.
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
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
Procedure:
1. Take the schedule of the Fair Market Value (FMV)
In practice, however,
the Fair Market Value
is based on the
assessment of the
municipal or city
assessor as written in
Tax
Declaration.
the
LAND
CLASS
Residential
Timberland
Agricultural
Commercial
Industrial
Assessment
Level
20%
20%
40%
50%
50%
FMV OVER
0.00
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
ASSESMENT
LEVEL
50%
60%
RPT
rate
2%
1%
Lets compute!
Lets say for example that we want to compute
the
assessed value
land
of a
residential
million
assessed
value x tax rate = amount of tax.
value of 400,000 pesos is computed this way:
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.