RA 7160 Flashcards
Local Government Code of 1991 was signed on ____ by president ___
October 10, 1991
Corazon Aquino
Local Government Code of 1991 effectivity date
January 1, 1992
Real Property Taxation. Fundamental Principles- The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:
(f) Real property shall be appraised at its current and fair market value
(a) Real property shall be classified for assessment purposes on the basis of its actual use
(u) Real property shall be assessed on the basis of a uniform classification within each local government unit
(c) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person
(et) The appraisal and assessment of real property shall be equitable
All real property, whether taxable or exempt, shall be appraised at the ___ prevailing in the locality where the property is situated
current fair market value
shall promulgate the necessary rules and regulations for the classification, appraisal, and assessment of real property pursuant to the provisions of this Code
Department of Finance
Sworn declaration of real property shall be filed with the assessor concerned once every ___ during the period from ___
3 years, January 1 to June 30
It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements therein, within a city or municipality, or their duly authorized representative, to prepare, or cause to be prepared, and file with the provincial, city, or municipal assessor, a sworn statement declaring the ___ 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
true value
Duty of person acquiring real property or making improvement thereon - prepare or cause to be prepared, and file with the provincial, city or municipal assessor a sworn statement declaring the true value of the subject property, within ____ after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier
60 days
any person who shall transfer real property ownership to another shall notify the provincial, city or municipal assessor concerned within ___ from the date of such transfer. The notification shall include the mode of transfer, the description of the property alienated, the name and address of the transferee
60 days
For purposes of assessment, real property shall be classified as ___,
___, ___, ___, ____, ____.
R-A-C-I-M-S
residential
agricultural
commercial
industrial
mineral
special
The city or municipality within Metropolitan Manila Area, through their respective ____, have the power to classify lands as residential, agricultural, commercial, industrial, mineral, timberland, or special in accordance with their zoning ordinances
Sanggunian
all lands, buildings, and other improvements actually, directly and exclusively used for hospitals, cultural or scientific purposes, and those owned and used by local water districts, and government-owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission od electric power shall be classified as ___
special
Real property shall be classified, valued and assessed on the basis of its ___ regardless of where located, whoever owns it, and whoever uses it
actual use
The assessment levels to be applied to the fair market value of real property to determine its assessed value shall be fixed by ordinances of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan of a municipality within the Metropolitan Manila Area, at the rates not exceeding the following:
Assessment Levels on Lands
Commercial - 50%
Industrial - 50%
Mineral - 50%
Agricultural - 40%
Residential - 20%
Timberland - 20%
Assessment Levels on Buildings and Other Structures
Commercial - 80%
Industrial - 80%
Timberland - 70%
Residential - 60%
Agricultural - 50%
Assessment Levels on Machineries
Commercial - 80%
Industrial - 80%
Residential - 50%
Agricultural - 40%
Special Classes: Assessment levels for all lands, buildings, machineries and other improvements -
Cultural - 15%
Scientific - 15%
Hospital - 15%
Local Water Districts - 10%
GOCC (power) - 10%
The provincial, city or municipal assessor shall undertake a general revision of real property assessments within ___ after the effectivity of this Code and every ___ thereafter
2 years, 3 years
In cases where real property is declared and listed for taxation purposes for the first time, there is an ongoing general revision of the property classification and assessment, or a request is made by the person in whose name the property is declared, the provincial, city or municipal assessor or his duly authorized deputy shall, in accordance with the provisions of this Chapter, make classification, appraisal, and assessment of real property listed and described in the declaration irrespective of any previous assessment or taxpayer’s valuation thereon: Provided, however, That the assessment of real property shall not be increased oftener than ___ except ___
once every 3 years, in case of new improvements substantially increasing the value of said property or of any change in its actual use
All assessments or reassessments made after the first (1st) day of January of any year shall take effect ___
on the 1st day of January of the succeeding year
Reassessment of real property due to its partial or total destruction, or to a major change in its actual use, or to any great and sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or to any other abnormal cause, shall be made within ___ from the date any such cause or causes occurred, and shall take effect at ___
90 days, the beginning of the quarter next following the reassessment
Real property declared for the first time shall be assessed for taxes for the period during it would have been liable but in no case for more than ___ prior to the date of initial assessment
10 years
If such taxes are paid on or before the end of the quarter following the date the notice of assessment was received by the owner or his representative, no interest for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of ___ or a fraction thereof from the date of the receipt of the assessment until such taxes are fully paid
2% per month
When real property is assessed for the first time or when an existing assessment is increased or decreased, the provincial, city or municipal assessor shall within ___ give written notice of such new or revised assessment to the person in whose name the property is declared.
30 days
The fair market value of a brand-new machinery shall be the ___
acquisition cost
The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency exchange rates as fixed by the
Central Bank
For purposes of assessment, an allowance shall be made for machinery at a rate ___ of its original cost or its replacement or reproduction cost, as the case may be, for each year use
not exceeding 5%
The remaining value for all kinds of machinery shall be fixed at ___ of such original, replacement, or reproduction cost for so long as the machinery is useful and in operation
not less than 20%
any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city, or municipal assessor in the assessment of his property may, within ___ from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the province or city by filing a petition under oath
60 days
The Local Board of Assessment Appeals of the province or city shall be composed of
Register of Deeds - chairman
Provincial or City Prosecutor and the Provincial or City Engineer - members
The Local Board of Assessment Appeals shall decide the appeal within ___ from the date of receipt of such appeal
120 days
The Central Board of Assessment Appeals shall be composed of ___ to be appointed by the ___ who shall serve for a term of ___ , without reappointment
a chairman and 2 members, President, 7 years
A province or city or a municipality within the Metropolitan Manila Area shall fix a uniform rate of basic real property tax applicable to their respective localities as follows
Province - rate not exceeding 1% of the assessed value
City or Municipality within Metropolitan Manila Area - rate not exceeding 2% of the assessed value
The following are exempted from payment of real property tax
Real property owned by the Republic of the Philippines
Charitable institutions, churches, parsonages, or convents
Machineries and equipment used by local water districts and GOCCs (water/power)
Real property owned by duly registered cooperatives
Machinery and equipment used for pollution control and environmental protection
A province or city, or a municipality within the Metropolitan Manila Area, may levy and collect an annual tax of ___ 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)
1%
A province or city, or a municipality within Metro Manila Area, may levy an annual tax on idle lands at the rate ___ of the assessed value of the property which shall be in addition to the basic real property tax
not exceeding 5%
Idle lands, coverage
Agricultural lands, more than 1 hectare in area, 1/2 of which remain uncultivated or unimproved
Lands other than agricultural, more than 1,000 square meters in area 1/2 of which remain unutilized or unimproved
not considered idle lands
Agricultural lands planted to permanent or perennial crops with at least 50 trees to a hectare
Lands used for grazing purposes
A province or city, or municipality within the Metropolitan Manila Area may exempt idle lands from the additional levy by reason of ___, ___, ___ or any cause or circumstance which physically or legally prevents the owner of the property or person having interest therein from improving, utilizing or cultivating the same
force majeure
civil disturbance
natural calamity
A province or city, or municipality may a special levy on lands comprised within its territorial jurisdiction specially benefited by public works or improvements funded by the local government unit concerned: Provided however, that the special levy shall be ___
not exceed 60% of the actual cost
the number of annual installments for the payment of the special levy
5 - 10 years
The real property tax for any year shall accrue on
1st day of January
shall constitute a lien on the property which shall be superior to any other lien, mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the delinquent tax
real property tax
The province, city or municipal assessor shall prepare and submit to the treasurer of the local government unit, on or before ___, an assessment roll containing a list of all persons whose real properties have been newly assessed or reassessed and the values of such properties
31st day of December each year
The city or municipal treasurer shall on or before ___ post the notice of the dates when the tax may be paid without interest and shall likewise be published in a newspaper of general circulation in the locality once a week for 2 consecutive weeks
31st day of January each year
The owner of the real property or the person having legal interest therein may pay the basic real property tax and the additional tax for SEF due thereon without interest in 4 equal installments:
1st - March 31
2nd - June 30
3rd - September 30
4th - December 31
Tax Discount for Advanced Prompt Payment: If the basic real property tax and the additional tax accruing to the Special Education Fund (SEF) are paid in advance in accordance with the prescribed schedule of payment as provided under Section 250, the Sanggunian concerned may grant a discount ___ of the annual tax due
not exceeding 20%
No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated on the tax receipts the words ___
“paid under protest”
Payment under protest: The protest in writing must be filed within ___ from payment of the tax to the provincial, city treasurer or municipal treasurer, in the case of the municipality within Metropolitan Manila Area, who shall decide the protest within ___ from receipt
30 days, 60 days
In the event that the protest is finally decided in favor of the taxpayer, the amount or portion of the tax protested shall be ___ or ___
refunded, applied as tax credit
In no case shall the total interest on the unpaid tax or portion thereof exceed ___
36 months / 72%
The proceeds of the basic real property tax shall be distributed as follows:
In case of provinces:
Province - 35% shall accrue to the general fund
Municipality - 40% to the general fund
Barangay - 25%
In the case of cities
City - 70% to the general fund
Barangays - 30%, where 50% shall accrue to the Barangay where the property is located and 50% shall accrue equally to all component Barangays of the City
In the case of a municipality within Metro Manila Area:
Metropolitan Manila Authority - 35%
Municipality - 35%
Barangays - 30%, where 50% to the barangay where property is located and 50 % equally to component barangays
The share of each barangay shall be released, without need of anu further action, directly to the Barangay treasurer on a ___ within ___ after end of each quarter and shall not be subject to any lien or holdback for whatever purpose
quarterly basis, 5 days
A city or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands and provide for the manner their utilization or disposition in the following cases:
(1) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture
(2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the sanggunian concerned
Reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance
highly urbanized and independent component cities - 15%
component cities and 1st to 3rd class municipalities - 10%
4th to 6th class municipalities - 5%
___ may, when public interest so requires and upon recommendation of ___, authorize a city or municipality to reclassify lands in excess of the limits
The President, National Economic and Development Authority
Individuals liable to Community Tax
(1) 18 years of age who has been regularly employed on a wage or salary basis for at least 30 consecutive working days during any calendar year
(2) engaged in business or occupation
(3) owns real property with an aggregate assessed value of Php1,000 or more
(4) who is required by law
How much is Community Tax
P5.00 and an additional P1.00 for every P1,000 of income but shall not exceed P5,000
Every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay annual community tax of ___ and an additional annual tax, which in no case, shall exceed ___ in accordance with the following schedule:
P500;
P10,000;
(1) P2.00 for every P5,000 worth of real property
(2) P2.00 for every P5,000 of gross receipts or earnings
The following are exempt from the community tax:
Diplomatic and consular representatives
Transient visitors when their stay in the Philippines does not exceed 3 months
