Ra 7160 Lgu Taxation

8/11/2019 Ra 7160 Lgu Taxation

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REPUBLIC ACT 7160 LOCAL GOVERNMENT CODE

BOOK II Local Taxation and Fiscal Matters

TITLE I Local Government Taxation

CA!TER I General !rovisions

"ECTION #$%& "co'e& ( T)e 'rovisions )erein s)all *overn t)e exercise +,

'rovinces- cities- m.nici'alities- and +aran*a,s o/ t)eir taxin* and ot)er reven.e0

raisin* 'o1ers&

"ECTION #$2& !o1er to Create "o.rces o/ Reven.e& ( Eac) local *overnment

.nit s)all exercise its 'o1er to create its o1n so.rces o/ reven.e and to lev, taxes-

/ees- and c)ar*es s.+3ect to t)e 'rovisions )erein- consistent 1it) t)e +asic 'olic,

o/ local a.tonom,& ".c) taxes- /ees- and c)ar*es s)all accr.e excl.sivel, to t)e

local *overnment .nits&

"ECTION #45& F.ndamental !rinci'les& ( T)e /ollo1in* /.ndamental

'rinci'les s)all *overn t)e exercise o/ t)e taxin* and ot)er reven.e0raisin* 'o1ers

o/ local *overnment .nits6

7a8 Taxation s)all +e .ni/orm in eac) local *overnment .nit9

7+8 Taxes- /ees- c)ar*es and ot)er im'ositions s)all6

7#8 +e e:.ita+le and +ased as /ar as 'ractica+le on t)e tax'a,er;s a+ilit, to 'a,9

7$8 +e levied and collected onl, /or '.+lic '.r'oses9

748 not +e .n3.st- excessive- o''ressive- or con/iscator,9

7


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"ECTION #4#& De/inition o/ Terms& ( =)en .sed in t)is Title- t)e term6

7a8 >A*ric.lt.ral !rod.ct> incl.des t)e ,ield o/ t)e soil- s.c) as corn- rice-

1)eat- r,e- )a,- cocon.ts- s.*arcane- to+acco- root cro's- ve*eta+les- /r.its-

/lo1ers- and t)eir +,0'rod.cts9 ordinar, salt9 all ?inds o/ /is)9 'o.ltr,9 and

livestoc? and animal 'rod.cts- 1)et)er in t)eir ori*inal /orm or not&

T)e ')rase >1)et)er in t)eir ori*inal /orm or not> re/ers to t)e trans/ormation o/

said 'rod.cts +, t)e /armer- /is)erman- 'rod.cer or o1ner t)ro.*) t)e a''lication

o/ 'rocesses to 'reserve or ot)er1ise to 're'are said 'rod.cts /or mar?et s.c) as

/ree@in*- dr,in*- saltin*- smo?in*- or stri''in* /or '.r'oses o/ 'reservin* or

ot)er1ise 're'arin* said 'rod.cts /or mar?et9

7+8 >Am.sement> is a 'leas.ra+le diversion and entertainment& It is s,non,mo.s

to relaxation- avocation- 'astime- or /.n9

7c8 >Am.sement !laces> incl.de t)eaters- cinemas- concert )alls- circ.ses and

ot)er 'laces o/ am.sement 1)ere one see?s admission to entertain onesel/ +,

seein* or vie1in* t)e s)o1 or 'er/ormances9

7d8 >B.siness> means trade or commercial activit, re*.larl, en*a*ed in as a

means o/ liveli)ood or 1it) a vie1 to 'ro/it9

7e8 >Ban?s and ot)er /inancial instit.tions> incl.de non0+an? /inancial

intermediaries- lendin* investors- /inance and investment com'anies- 'a1ns)o's-

mone, s)o's- ins.rance com'anies- stoc? mar?ets- stoc? +ro?ers and dealers insec.rities and /orei*n exc)an*e- as de/ined .nder a''lica+le la1s- or r.les and

re*.lations t)ere.nder9

7/8 >Ca'ital Investment> is t)e ca'ital 1)ic) a 'erson em'lo,s in an,

.nderta?in*- or 1)ic) )e contri+.tes to t)e ca'ital o/ a 'artners)i'- cor'oration- or

an, ot)er 3.ridical entit, or association in a 'artic.lar taxin* 3.risdiction9

7*8 >C)ar*es> re/ers to 'ec.niar, lia+ilit,- as rents or /ees a*ainst 'ersons or

'ro'ert,9

7)8 >Contractor> incl.des 'ersons- nat.ral or 3.ridical- not s.+3ect to

'ro/essional tax .nder "ection #42 o/ t)is Code- 1)ose activit, consists essentiall,

o/ t)e sale o/ all ?inds o/ services /or a /ee- re*ardless o/ 1)et)er or not t)e

'er/ormance o/ t)e service calls /or t)e exercise or .se o/ t)e '),sical or mental

/ac.lties o/ s.c) contractor or )is em'lo,ees&


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As .sed in t)is section- t)e term >contractor> s)all incl.de *eneral en*ineerin*-

*eneral +.ildin* and s'ecialt, contractors as de/ined .nder a''lica+le la1s9 /illin*-

demolition and salva*e 1or?s contractors9 'ro'rietors or o'erators o/ mine drillin*

a''arat.s9 'ro'rietors or o'erators o/ doc?,ards9 'ersons en*a*ed in t)e

installation o/ 1ater s,stem- and *as or electric li*)t- )eat- or 'o1er9 'ro'rietors oro'erators o/ smeltin* 'lants- en*ravin*- 'latin*- and 'lastic lamination

esta+lis)ments9 'ro'rietors or o'erators o/ esta+lis)ments /or re'airin*- re'aintin*-

.')olsterin*- 1as)in* or *reasin* o/ ve)icles- )eav, e:.i'ment- v.lcani@in*-

reca''in* and +atter, c)ar*in*9 'ro'rietors or o'erators o/ /.rnit.re s)o's and

esta+lis)ments /or 'lanin* or s.r/acin* and rec.ttin* o/ l.m+er- and sa1mills

.nder contract to sa1 or c.t lo*s +elon*in* to ot)ers9 'ro'rietors or o'erators o/

dr, cleanin* or d,ein* esta+lis)ments- steam la.ndries- and la.ndries .sin*

1as)in* mac)ines9 'ro'rietors or o1ners o/ s)o's /or t)e re'air o/ an, ?ind o/

mec)anical and electrical devices- instr.ments- a''arat.s- or /.rnit.re and s)oere'airin* +, mac)ine or an, mec)anical contrivance9 'ro'rietors or o'erators o/

esta+lis)ments or lots /or 'ar?in* '.r'oses9 'ro'rietors or o'erators o/ tailor s)o's-

dress s)o's- milliners and )atters- +ea.t, 'arlors- +ar+ers)o's- massa*e clinics-

sa.na- T.r?is) and "1edis) +at)s- slenderi@in* and +.ildin* salons and similar

esta+lis)ments9 ')oto*ra')ic st.dios9 /.neral 'arlors9 'ro'rietors or o'erators o/

)otels- motels- and lod*in* )o.ses9 'ro'rietors or o'erators o/ arrastre and

stevedorin*- 1are)o.sin*- or /or1ardin* esta+lis)ments9 master 'l.m+ers- smit)s-

and )o.se or si*n 'ainters9 'rinters- +oo?+inders- lit)o*ra')ers9 '.+lis)ers exce't

t)ose en*a*ed in t)e '.+lication or 'rintin* o/ an, ne1s'a'er- ma*a@ine- revie1 or

+.lletin 1)ic) a''ears at re*.lar intervals 1it) /ixed 'rices /or s.+scri'tion and

sale and 1)ic) is not devoted 'rinci'all, to t)e '.+lication and advertisements9

+.siness a*ents- 'rivate detective or 1atc)man a*encies- commercial and

immi*ration +ro?ers- and cinemato*ra')ic /ilm o1ners- lessors and distri+.tors&

7i8 >Cor'oration> incl.des 'artners)i's- no matter )o1 created or or*ani@ed-

3oint0stoc? com'anies- 3oint acco.nts 7c.entas en 'artici'acion8- associations or

ins.rance com'anies +.t does not incl.de *eneral 'ro/essional 'artners)i's and a

3oint vent.re or consorti.m /ormed /or t)e '.r'ose o/ .nderta?in* constr.ction'ro3ects or en*a*in* in 'etrole.m- coal- *eot)ermal- and ot)er ener*, o'erations

'.rs.ant to an o'eratin* or consorti.m a*reement .nder a service contract 1it) t)e

*overnment& General 'ro/essional 'artners)i's are 'artners)i's /ormed +, 'ersons

/or t)e sole '.r'ose o/ exercisin* t)eir common 'ro/ession- no 'art o/ t)e income

o/ 1)ic) is derived /rom en*a*in* in an, trade or +.siness&


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T)e term >resident /orei*n> 1)en a''lied to a cor'oration means a /orei*n

cor'oration not ot)er1ise or*ani@ed .nder t)e la1s o/ t)e !)ili''ines +.t en*a*ed

in trade or +.siness 1it)in t)e !)ili''ines9

738 >Co.ntr,side and Baran*a, B.siness Enter'rise> re/ers to an, +.siness

entit,- association- or coo'erative re*istered .nder t)e 'rovisions o/ Re'.+lic Act

N.m+ered "ixt,0ei*)t ).ndred ten 7R&A& No& %#58- ot)er1ise ?no1n as >Ma*na

Carta For Co.ntr,side And Baran*a, B.siness Enter'rises 7Kala?alan $58>9

7?8 >Dealer> means one 1)ose +.siness is to +., and sell merc)andise- *oods-

and c)attels as a merc)ant& e stands immediatel, +et1een t)e 'rod.cer or

man./act.rer and t)e cons.mer and de'ends /or )is 'ro/it not .'on t)e la+or )e

+esto1s .'on )is commodities +.t .'on t)e s?ill and /oresi*)t 1it) 1)ic) )e

1atc)es t)e mar?et9

7l8 >Fee> means a c)ar*e /ixed +, la1 or ordinance /or t)e re*.lation or

ins'ection o/ a +.siness or activit,9

7m8 >Franc)ise> is a ri*)t or 'rivile*e- a//ected 1it) '.+lic interest 1)ic) is

con/erred .'on 'rivate 'ersons or cor'orations- .nder s.c) terms and conditions as

t)e *overnment and its 'olitical s.+divisions ma, im'ose in t)e interest o/ '.+lic

1el/are- sec.rit,- and sa/et,9

7n8 >Gross "ales or Recei'ts> incl.de t)e total amo.nt o/ mone, or its

e:.ivalent re'resentin* t)e contract 'rice- com'ensation or service /ee- incl.din*

t)e amo.nt c)ar*ed or materials s.''lied 1it) t)e services and de'osits or advance

'a,ments act.all, or constr.ctivel, received d.rin* t)e taxa+le :.arter /or t)e

services 'er/ormed or to +e 'er/ormed /or anot)er 'erson excl.din* disco.nts i/

determina+le at t)e time o/ sales- sales ret.rn- excise tax- and val.e0added tax

7VAT89

7o8 >Man./act.rer> incl.des ever, 'erson 1)o- +, '),sical or c)emical 'rocess-

alters t)e exterior text.re or /orm or inner s.+stance o/ an, ra1 material or

man./act.red or 'artiall, man./act.red 'rod.ct in s.c) manner as to 're'are it /or

s'ecial .se or .ses to 1)ic) it co.ld not )ave +een '.t in its ori*inal condition- or1)o +, an, s.c) 'rocess- alters t)e :.alit, o/ an, s.c) ra1 material or

man./act.red or 'artiall, man./act.red 'rod.cts so as to red.ce it to mar?eta+le

s)a'e or 're'are it /or an, o/ t)e .se o/ ind.str,- or 1)o +, an, s.c) 'rocess-

com+ines an, s.c) ra1 material or man./act.red or 'artiall, man./act.red

'rod.cts 1it) ot)er materials or 'rod.cts o/ t)e same or o/ di//erent ?inds and in


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s.c) manner t)at t)e /inis)ed 'rod.cts o/ s.c) 'rocess or man./act.re can +e '.t

to a s'ecial .se or .ses to 1)ic) s.c) ra1 material or man./act.red or 'artiall,

man./act.red 'rod.cts in t)eir ori*inal condition co.ld not )ave +een '.t- and 1)o

in addition- alters s.c) ra1 material or man./act.red or 'artiall, man./act.red

'rod.cts- or com+ines t)e same to 'rod.ce s.c) /inis)ed 'rod.cts /or t)e '.r'oseo/ t)eir sale or distri+.tion to ot)ers and not /or )is o1n .se or cons.m'tion9

7'8 >Mar*inal Farmer or Fis)erman> re/ers to an individ.al en*a*ed in

s.+sistence /armin* or /is)in* 1)ic) s)all +e limited to t)e sale- +arter or

exc)an*e o/ a*ric.lt.ral or marine 'rod.cts 'rod.ced +, )imsel/ and )is

immediate /amil,9

7:8 >Motor Ve)icle> means an, ve)icle 'ro'elled +, an, 'o1er ot)er t)an

m.sc.lar 'o1er .sin* t)e '.+lic roads- +.t excl.din* road rollers- trolle, cars-

street0s1ee'ers- s'rin?lers- la1n mo1ers- +.lldo@ers- *raders- /or?0li/ts- am')i+iantr.c?s- and cranes i/ not .sed on '.+lic roads- ve)icles 1)ic) r.n onl, on rails or

trac?s- and tractors- trailers- and traction en*ines o/ all ?inds .sed excl.sivel, /or

a*ric.lt.ral '.r'oses9

7r8 >M.nici'al =aters> incl.des not onl, streams- la?es- and tidal 1aters 1it)in

t)e m.nici'alit,- not +ein* t)e s.+3ect o/ 'rivate o1ners)i' and not com'rised

1it)in t)e national 'ar?s- '.+lic /orest- tim+er lands- /orest reserves or /is)er,

reserves- +.t also marine 1aters incl.ded +et1een t1o lines dra1n 'er'endic.larl,

to t)e *eneral coastline /rom 'oints 1)ere t)e +o.ndar, lines o/ t)e m.nici'alit, orcit, to.c) t)e sea at lo1 tide and a t)ird line 'arallel 1it) t)e *eneral coastline and

/i/teen 7#8 ?ilometers /rom it& =)ere t1o 7$8 m.nici'alities are so sit.ated on t)e

o''osite s)ores t)at t)ere is less t)an /i/teen 7#8 ?ilometers o/ marine 1aters

+et1een t)em- t)e t)ird line s)all +e e:.all, distant /rom o''osite s)ores o/ t)eir

res'ective m.nici'alities9

7s8 >O'erator> incl.des t)e o1ner- mana*er- administrator- or an, ot)er 'erson

1)o o'erates or is res'onsi+le /or t)e o'eration o/ a +.siness esta+lis)ment or

.nderta?in*9

7t8 >!eddler> means an, 'erson 1)o- eit)er /or )imsel/ or on commission-

travels /rom 'lace to 'lace and sells )is *oods or o//ers to sell and deliver t)e

same& =)et)er a 'eddler is a 1)olesale 'eddler or a retail 'eddler o/ a 'artic.lar

commodit, s)all +e determined /rom t)e de/inition o/ 1)olesale dealer or retail

dealer as 'rovided in t)is Title9


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7.8 >!ersons> means ever, nat.ral or 3.ridical +ein*- s.sce'ti+le o/ ri*)ts and

o+li*ations or o/ +ein* t)e s.+3ect o/ le*al relations9

7v8 >Residents> re/er to nat.ral 'ersons 1)o )ave t)eir )a+it.al residence in t)e

'rovince- cit,- or m.nici'alit, 1)ere t)e, exercise t)eir civil ri*)ts and /.l/ill t)eir

civil o+li*ations- and to 3.ridical 'ersons /or 1)ic) t)e la1 or an, ot)er 'rovision

creatin* or reco*ni@in* t)em /ixes t)eir residence in a 'artic.lar 'rovince- cit,- or

m.nici'alit,& In t)e a+sence o/ s.c) la1- 3.ridical 'ersons are residents o/ t)e

'rovince- cit,- or m.nici'alit, 1)ere t)e, )ave t)eir le*al residence or 'rinci'al

'lace o/ +.siness or 1)ere t)e, cond.ct t)eir 'rinci'al +.siness or occ.'ation9

718 >Retail> means a sale 1)ere t)e '.rc)aser +.,s t)e commodit, /or )is o1n

cons.m'tion- irres'ective o/ t)e :.antit, o/ t)e commodit, sold9

7x8 >Vessel> incl.des ever, t,'e o/ +oat- cra/t- or ot)er arti/icial contrivance

.sed- or ca'a+le o/ +ein* .sed- as a means o/ trans'ortation on 1ater9

7,8 >=)ar/a*e> means a /ee assessed a*ainst t)e car*o o/ a vessel en*a*ed in

/orei*n or domestic trade +ased on :.antit,- 1ei*)t- or meas.re received andor

disc)ar*ed +, vessel9 and

7@8 >=)olesale> means a sale 1)ere t)e '.rc)aser +.,s or im'orts t)e

commodities /or resale to 'ersons ot)er t)an t)e end .ser re*ardless o/ t)e :.antit,

o/ t)e transaction&

"ECTION #4$& Local Taxin* A.t)orit,& ( T)e 'o1er to im'ose a tax- /ee- orc)ar*e or to *enerate reven.e .nder t)is Code s)all +e exercised +, t)e san**.nian

o/ t)e local *overnment .nit concerned t)ro.*) an a''ro'riate ordinance&

"ECTION #44& Common Limitations on t)e Taxin* !o1ers o/ Local

Government nits& ( nless ot)er1ise 'rovided )erein- t)e exercise o/ t)e taxin*

'o1ers o/ 'rovinces- cities- m.nici'alities- and +aran*a,s s)all not extend to t)e

lev, o/ t)e /ollo1in*6

7a8 Income tax- exce't 1)en levied on +an?s and ot)er /inancial instit.tions9

7+8 Doc.mentar, stam' tax9

7c8 Taxes on estates- in)eritance- *i/ts- le*acies and ot)er ac:.isitions mortis

ca.sa- exce't as ot)er1ise 'rovided )erein9

7d8 C.stoms d.ties- re*istration /ees o/ vessel and 1)ar/a*e on 1)arves-

tonna*e d.es- and all ot)er ?inds o/ c.stoms /ees- c)ar*es and d.es exce't


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1)ar/a*e on 1)arves constr.cted and maintained +, t)e local *overnment .nit

concerned9

7e8 Taxes- /ees- and c)ar*es and ot)er im'ositions .'on *oods carried into or

o.t o/- or 'assin* t)ro.*)- t)e territorial 3.risdictions o/ local *overnment .nits in

t)e *.ise o/ c)ar*es /or 1)ar/a*e- tolls /or +rid*es or ot)er1ise- or ot)er taxes-

/ees- or c)ar*es in an, /orm 1)atsoever .'on s.c) *oods or merc)andise9

7/8 Taxes- /ees or c)ar*es on a*ric.lt.ral and a:.atic 'rod.cts 1)en sold +,

mar*inal /armers or /is)ermen9

7*8 Taxes on +.siness enter'rises certi/ied to +, t)e Board o/ Investments as

'ioneer or non0'ioneer /or a 'eriod o/ six 78 and /o.r 7 res'ectivel,9 and

7o8 Taxes- /ees or c)ar*es o/ an, ?ind on t)e National Government- its a*encies

and instr.mentalities- and local *overnment .nits&

CA!TER II "'eci/ic !rovisions on t)e Taxin* and Ot)er Reven.e0Raisin*

!o1ers o/ Local Government nits


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ARTICLE I !rovinces

"ECTION #4


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T)e recei'ts /rom t)e 'rintin* andor '.+lis)in* o/ +oo?s or ot)er readin*

materials 'rescri+ed +, t)e De'artment o/ Ed.cation- C.lt.re and "'orts as sc)ool

texts or re/erences s)all +e exem't /rom t)e tax )erein im'osed&

"ECTION #4& Franc)ise Tax& ( Not1it)standin* an, exem'tion *ranted +,

an, la1 or ot)er s'ecial la1- t)e 'rovince ma, im'ose a tax on +.sinesses en3o,in*

a /ranc)ise- at a rate not exceedin* /i/t, 'ercent 758 o/ one 'ercent 7#8 o/ t)e

*ross ann.al recei'ts /or t)e 'recedin* calendar ,ear +ased on t)e incomin*

recei't- or reali@ed- 1it)in its territorial 3.risdiction&

In t)e case o/ a ne1l, started +.siness- t)e tax s)all not exceed one0t1entiet)

7#$58 o/ one 'ercent 7#8 o/ t)e ca'ital investment& In t)e s.cceedin* calendar

,ear- re*ardless o/ 1)en t)e +.siness started to o'erate- t)e tax s)all +e +ased on

t)e *ross recei'ts /or t)e 'recedin* calendar ,ear- or an, /raction t)ereon- as

'rovided )erein&

"ECTION #4%& Tax on "and- Gravel and Ot)er .arr, Reso.rces& ( T)e

'rovince ma, lev, and collect not more t)an ten 'ercent 7#58 o/ /air mar?et

val.e in t)e localit, 'er c.+ic meter o/ ordinar, stones- sand- *ravel- eart)- and

ot)er :.arr, reso.rces- as de/ined .nder t)e National Internal Reven.e Code- as

amended- extracted /rom '.+lic lands or /rom t)e +eds o/ seas- la?es- rivers-

streams- cree?s- and ot)er '.+lic 1aters 1it)in its territorial 3.risdiction&

T)e 'ermit to extract sand- *ravel and ot)er :.arr, reso.rces s)all +e iss.ed

excl.sivel, +, t)e 'rovincial *overnor- '.rs.ant to t)e ordinance o/ t)esan**.nian* 'anlala1i*an&

T)e 'roceeds o/ t)e tax on sand- *ravel and ot)er :.arr, reso.rces s)all +e

distri+.ted as /ollo1s6

7#8 !rovince ( T)irt, 'ercent 74589

7$8 Com'onent Cit, or M.nici'alit, 1)ere t)e sand- *ravel- and ot)er :.arr,

reso.rces are extracted ( T)irt, 'ercent 74589 and

748 Baran*a, 1)ere t)e sand- *ravel- and ot)er :.arr, reso.rces are extracted (Fort, 'ercent 7


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classi/ication as t)e san**.nian* 'anlala1i*an ma, determine +.t s)all in no case

exceed T)ree ).ndred 'esos 7!455&558&

7+8 Ever, 'erson le*all, a.t)ori@ed to 'ractice )is 'ro/ession s)all 'a, t)e

'ro/essional tax to t)e 'rovince 1)ere )e 'ractices )is 'ro/ession or 1)ere )e

maintains )is 'rinci'al o//ice in case )e 'ractices )is 'ro/ession in several 'laces6

!rovided- )o1ever- T)at s.c) 'erson 1)o )as 'aid t)e corres'ondin* 'ro/essional

tax s)all +e entitled to 'ractice )is 'ro/ession in an, 'art o/ t)e !)ili''ines 1it)o.t

+ein* s.+3ected to an, ot)er national or local tax- license- or /ee /or t)e 'ractice o/

s.c) 'ro/ession&

7c8 An, individ.al or cor'oration em'lo,in* a 'erson s.+3ect to 'ro/essional tax

s)all re:.ire 'a,ment +, t)at 'erson o/ t)e tax on )is 'ro/ession +e/ore

em'lo,ment and ann.all, t)erea/ter&

7d8 T)e 'ro/essional tax s)all +e 'a,a+le ann.all,- on or +e/ore t)e t)irt,0/irst

74#st8 da, o/ Han.ar,& An, 'erson /irst +e*innin* to 'ractice a 'ro/ession a/ter t)e

mont) o/ Han.ar, m.st- )o1ever- 'a, t)e /.ll tax +e/ore en*a*in* t)erein& A line o/

'ro/ession does not +ecome exem't even i/ cond.cted 1it) some ot)er 'ro/ession

/or 1)ic) t)e tax )as +een 'aid& !ro/essionals excl.sivel, em'lo,ed in t)e

*overnment s)all +e exem't /rom t)e 'a,ment o/ t)is tax&

7e8 An, 'erson s.+3ect to t)e 'ro/essional tax s)all 1rite in deeds- recei'ts-

'rescri'tions- re'orts- +oo?s o/ acco.nt- 'lans and desi*ns- s.rve,s and ma's- as

t)e case ma, +e- t)e n.m+er o/ t)e o//icial recei't iss.ed to )im&

"ECTION #


11/68

7d8 T)e san**.nian* 'anlala1i*an ma, 'rescri+e t)e time- manner- terms and

conditions /or t)e 'a,ment o/ tax& In case o/ /ra.d or /ail.re to 'a, t)e tax- t)e

san**.nian* 'anlala1i*an ma, im'ose s.c) s.rc)ar*es- interest and 'enalties as it

ma, deem a''ro'riate&

7e8 T)e 'roceeds /rom t)e am.sement tax s)all +e s)ared e:.all, +, t)e

'rovince and t)e m.nici'alit, 1)ere s.c) am.sement 'laces are located&

"ECTION #


12/68

!#5-555&55 or more +.t less t)an #-555&55 $$5&55

#-555&55 or more +.t less t)an $5-555&55 45$&55

$5-555&55 or more +.t less t)an 45-555&55


13/68

Less t)an !#-555&55 !#%&55

!#-555&55 or more +.t less t)an !$-555&55 44&55

$-555&55 or more +.t less t)an 4-555&55 5&55

4-555&55 or more +.t less t)an


14/68

/i/t, 'ercent

758 o/ one

'ercent 7#8&

7c8 On ex'orters- and on man./act.rers- millers- 'rod.cers- 1)olesalers-distri+.tors- dealers or retailers o/ essential commodities en.merated )ere.nder at

a rate not exceedin* one0)al/ 78 o/ t)e rates 'rescri+ed .nder s.+section 7a8- 7+8

and 7d8 o/ t)is "ection6

7#8 Rice and corn9

7$8 =)eat or cassava /lo.r- meat- dair, 'rod.cts- locall, man./act.red-

'rocessed or 'reserved /ood- s.*ar- salt and ot)er a*ric.lt.ral- marine- and /res)

1ater 'rod.cts- 1)et)er in t)eir ori*inal state or not9

748 Coo?in* oil and coo?in* *as9

7


15/68

7e8 On contractors and ot)er inde'endent contractors- in accordance 1it) t)e

/ollo1in* sc)ed.le6

=it) *ross recei'ts /or t)e Amo.nt o/ Tax

'recedin* calendar ,ear in t)e amo.nt o/6 !er Ann.m

Less t)an !-555&55 !$&5

!-555&55 or more +.t less t)an !#5-555&55 #&5

#5-555&55 or more +.t less t)an #-555&55 #5


16/68

758 o/ one

'ercent 7#8

7/8 On +an?s and ot)er /inancial instit.tions- at a rate not exceedin* /i/t,

'ercent 758 o/ one 'ercent 7#8 on t)e *ross recei'ts o/ t)e 'recedin* calendar,ear derived /rom interest- commissions and disco.nts /rom lendin* activities-

income /rom /inancial leasin*- dividends- rentals on 'ro'ert, and 'ro/it /rom

exc)an*e or sale o/ 'ro'ert,- ins.rance 'remi.m&

7*8 On 'eddlers en*a*ed in t)e sale o/ an, merc)andise or article o/ commerce-

at a rate not exceedin* Fi/t, 'esos 7!5&558 'er 'eddler ann.all,&

7)8 On an, +.siness- not ot)er1ise s'eci/ied in t)e 'recedin* 'ara*ra')s- 1)ic)

t)e san**.nian concerned ma, deem 'ro'er to tax6 !rovided- T)at on an, +.siness

s.+3ect to t)e excise- val.e0added or 'ercenta*e tax .nder t)e National InternalReven.e Code- as amended- t)e rate o/ tax s)all not exceed t1o 'ercent 7$8 o/

*ross sales or recei'ts o/ t)e 'recedin* calendar ,ear&

T)e san**.nian concerned ma, 'rescri+e a sc)ed.le o/ *rad.ated tax rates +.t in

no case to exceed t)e rates 'rescri+ed )erein&

"ECTION #


17/68

rate o/ tax- t)e tax s)all +e com'.ted on t)e com+ined total *ross sales or recei'ts

o/ t)e said t1o 7$8 or more related +.sinesses&

7c8 In cases 1)ere a 'erson cond.cts or o'erates t1o 7$8 or more +.sinesses

mentioned in "ection #


18/68

'rivile*es6 !rovided- /.rt)er- T)at t)e san**.nian* +a,an ma, re:.ire a '.+lic

+iddin* in con/ormit, 1it) and '.rs.ant to an ordinance /or t)e *rant o/ s.c)

'rivile*es6 !rovided- /inall,- T)at in t)e a+sence o/ s.c) or*ani@ations and

coo'eratives or t)eir /ail.re to exercise t)eir 're/erential ri*)t- ot)er 'arties ma,

'artici'ate in t)e '.+lic +iddin* in con/ormit, 1it) t)e a+ove cited 'roced.re&

7$8 Grant t)e 'rivile*e to *at)er- ta?e or catc) +an*.s /r,- 'ra1n /r, or ?a1a*0

?a1a* or /r, o/ ot)er s'ecies and /is) /rom t)e m.nici'al 1aters +, nets- tra's or

ot)er /is)in* *ears to mar*inal /is)ermen /ree o/ an, rental- /ee- c)ar*e or an,

ot)er im'osition 1)atsoever&

748 Iss.e licenses /or t)e o'eration o/ /is)in* vessels o/ t)ree 748 tons or less /or

1)ic) '.r'ose t)e san**.nian* +a,an s)all 'rom.l*ate r.les and re*.lations

re*ardin* t)e iss.ances o/ s.c) licenses to :.ali/ied a''licants .nder existin* la1s9

!rovided- )o1ever- T)at t)e san**.nian concerned s)all- +, a''ro'riate ordinance-'enali@e t)e .se o/ ex'losives- noxio.s or 'oisono.s s.+stances- electricit,- m.ro0

ami- and ot)er deleterio.s met)ods o/ /is)in* and 'rescri+e a criminal 'enalt,

t)ere/or in accordance 1it) t)e 'rovisions o/ t)is Code6 !rovided- /inall,- T)at t)e

san**.nian concerned s)all )ave t)e a.t)orit, to 'rosec.te an, violation o/ t)e

'rovisions o/ a''lica+le /is)er, la1s&

"ECTION #5& "it.s o/ t)e Tax& ( 7a8 For '.r'oses o/ collection o/ t)e taxes

.nder "ection #


19/68

7$8 "event, 'ercent 758 o/ all sales recorded in t)e 'rinci'al o//ice s)all +e

taxa+le +, t)e cit, or m.nici'alit, 1)ere t)e /actor,- 'ro3ect o//ice- 'lant- or

'lantation is located&

7c8 In case o/ a 'lantation located at a 'lace ot)er t)an t)e 'lace 1)ere t)e

/actor, is located- said sevent, 'ercent 758 mentioned in s.+'ara*ra') 7+8 o/

s.+section 7$8 a+ove s)all +e divided as /ollo1s6

7#8 "ixt, 'ercent 758 to t)e cit, or m.nici'alit, 1)ere t)e /actor, is located9

and

7$8 Fort, 'ercent 7


20/68

"ECTION #$& "co'e o/ Taxin* !o1ers& ( T)e +aran*a,s ma, lev, taxes-

/ees- and c)ar*es- as 'rovided in t)is Article- 1)ic) s)all excl.sivel, accr.e to

t)em6

7a8 Taxes ( On stores or retailers 1it) /ixed +.siness esta+lis)ments 1it) *ross

sales o/ recei'ts o/ t)e 'recedin* calendar ,ear o/ Fi/t, t)o.sand 'esos

7!5-555&558 or less- in t)e case o/ cities and T)irt, t)o.sand 'esos 7!45-555&558

or less- in t)e case o/ m.nici'alities- at a rate not exceedin* one 'ercent 7#8 on

s.c) *ross sales or recei'ts&

7+8 "ervice Fees or C)ar*es& ( Baran*a,s ma, collect reasona+le /ees or

c)ar*es /or services rendered in connection 1it) t)e re*.lations or t)e .se o/

+aran*a,0o1ned 'ro'erties or service /acilities s.c) as 'ala,- co'ra- or to+acco

dr,ers&

7c8 Baran*a, Clearance& ( No cit, or m.nici'alit, ma, iss.e an, license or

'ermit /or an, +.siness or activit, .nless a clearance is /irst o+tained /rom t)e

+aran*a, 1)ere s.c) +.siness or activit, is located or cond.cted& For s.c)

clearance- t)e san**.nian* +aran*a, ma, im'ose a reasona+le /ee& T)e a''lication

/or clearance s)all +e acted .'on 1it)in seven 78 1or?in* da,s /rom t)e /ilin*

t)ereo/& In t)e event t)at t)e clearance is not iss.ed 1it)in t)e said 'eriod- t)e cit,

or m.nici'alit, ma, iss.e t)e said license or 'ermit&

7d8 Ot)er /ees and C)ar*es& ( T)e +aran*a, ma, lev, reasona+le /ees and

c)ar*es6

7#8 On commercial +reedin* o/ /i*)tin* coc?s- coc?/i*)ts and coc?'its9

7$8 On 'laces o/ recreation 1)ic) c)ar*e admission /ees9 and

748 On +ill+oards- si*n+oards- neon si*ns- and o.tdoor advertisements&

ARTICLE V Common Reven.e0Raisin* !o1ers

"ECTION #4& "ervice Fees and C)ar*es& ( Local *overnment .nits ma,

im'ose and collect s.c) reasona+le /ees and c)ar*es /or services rendered&

"ECTION #


21/68

c)ar*es /or t)e .se o/ an, '.+lic road- 'ier- or 1)ar/- 1ater1a,- +rid*e- /err, or

telecomm.nication s,stem /.nded and constr.cted +, t)e local *overnment .nit

concerned6 !rovided- T)at no s.c) toll /ees or c)ar*es s)all +e collected /rom

o//icers and enlisted men o/ t)e Armed Forces o/ t)e !)ili''ines and mem+ers o/

t)e !)ili''ine National !olice on mission- 'ost o//ice 'ersonnel deliverin* mail-'),sicall,0)andica''ed- and disa+led citi@ens 1)o are sixt,0/ive 78 ,ears or

older&

=)en '.+lic sa/et, and 1el/are so re:.ires- t)e san**.nian concerned ma,

discontin.e t)e collection o/ t)e tolls- and t)erea/ter t)e said /acilit, s)all +e /ree

and o'en /or '.+lic .se&

ARTICLE VI Comm.nit, Tax

"ECTION #& Comm.nit, Tax& ( Cities or m.nici'alities ma, lev, a

comm.nit, tax in accordance 1it) t)e 'rovisions o/ t)is Article&

"ECTION #& Individ.als Lia+le to Comm.nit, Tax& ( Ever, in)a+itant o/

t)e !)ili''ines ei*)teen 7#%8 ,ears o/ a*e or over 1)o )as +een re*.larl,

em'lo,ed on a 1a*e or salar, +asis /or at least t)irt, 7458 consec.tive 1or?in*

da,s d.rin* an, calendar ,ear- or 1)o is en*a*ed in +.siness or occ.'ation- or

1)o o1ns real 'ro'ert, 1it) an a**re*ate assessed val.e o/ One t)o.sand 'esos

7!#-555&558 or more- or 1)o is re:.ired +, la1 to /ile an income tax ret.rn s)all

'a, an ann.al additional tax o/ Five 'esos 7!&558 and an ann.al additional tax o/

One 'eso 7!#&558 /or ever, One t)o.sand 'esos 7!#-555&558 o/ income re*ardlesso/ 1)et)er /rom +.siness- exercise o/ 'ro/ession or /rom 'ro'ert, 1)ic) in no case

s)all exceed Five t)o.sand 'esos 7!-555&558&

In t)e case o/ ).s+and and 1i/e- t)e additional tax )erein im'osed s)all +e +ased

.'on t)e total 'ro'ert, o1ned +, t)em and t)e total *ross recei'ts or earnin*s

derived +, t)em&

"ECTION #%& H.ridical !ersons Lia+le to Comm.nit, Tax& ( Ever,

cor'oration no matter )o1 created or or*ani@ed- 1)et)er domestic or resident

/orei*n- en*a*ed in or doin* +.siness in t)e !)ili''ines s)all 'a, an ann.alcomm.nit, tax o/ Five ).ndred 'esos 7!55&558 and an ann.al additional tax-

1)ic)- in no case- s)all exceed Ten t)o.sand 'esos 7!#5-555&558 in accordance

1it) t)e /ollo1in* sc)ed.le6

7#8 For ever, Five t)o.sand 'esos 7!-555&558 1ort) o/ real 'ro'ert, in t)e

!)ili''ines o1ned +, it d.rin* t)e 'recedin* ,ear +ased on t)e val.ation .sed /or


22/68


23/68

1)ic) to 'a, t)e comm.nit, tax 1it)o.t +ecomin* delin:.ent& Cor'orations

esta+lis)ed and or*ani@ed on or a/ter t)e /irst da, o/ H.l, s)all not +e s.+3ect to t)e

comm.nit, tax /or t)at ,ear&

I/ t)e tax is not 'aid 1it)in t)e time 'rescri+ed a+ove- t)ere s)all +e added to t)e

.n'aid amo.nt an interest o/ t1ent,0/o.r 'ercent 7$


24/68

comm.nit, tax certi/icates and distri+.te t)e same to t)e cities and m.nici'alities

t)ro.*) t)e cit, and m.nici'al treas.rers in accordance 1it) 'rescri+ed

re*.lations&

T)e 'roceeds o/ t)e tax s)all accr.e to t)e *eneral /.nds o/ t)e cities-

m.nici'alities and +aran*a,s exce't a 'ortion t)ereo/ 1)ic) s)all accr.e to t)e

*eneral /.nd o/ t)e National Government to cover t)e act.al cost o/ 'rintin* and

distri+.tion o/ t)e /orms and ot)er related ex'enses& T)e cit, or m.nici'al

treas.rer concerned s)all remit to t)e national treas.rer t)e said s)are o/ t)e

National Government in t)e 'roceeds o/ t)e tax 1it)in ten 7#58 da,s a/ter t)e end

o/ eac) :.arter&

7+8 T)e cit, or m.nici'al treas.rer s)all de'.ti@e t)e +aran*a, treas.rer to

collect t)e comm.nit, tax in t)eir res'ective 3.risdictions6 !rovided- )o1ever- T)at

said +aran*a, treas.rer s)all +e +onded in accordance 1it) existin* la1s&

7c8 T)e 'roceeds o/ t)e comm.nit, tax act.all, and directl, collected +, t)e

cit, or m.nici'al treas.rer s)all accr.e entirel, to t)e *eneral /.nd o/ t)e cit, or

m.nici'alit, concerned& o1ever- 'roceeds o/ t)e comm.nit, tax collected

t)ro.*) t)e +aran*a, treas.rers s)all +e a''ortioned as /ollo1s6

7#8 Fi/t, 'ercent 758 s)all accr.e to t)e *eneral /.nd o/ t)e cit, or

m.nici'alit, concerned9 and

7$8 Fi/t, 'ercent 758 s)all accr.e to t)e +aran*a, 1)ere t)e tax is collected&

CA!TER III

Collection o/ Taxes

"ECTION #& Tax !eriod and Manner o/ !a,ment& ( nless ot)er1ise

'rovided in t)is Code- t)e tax 'eriod o/ all local taxes- /ees and c)ar*es s)all +e t)e

calendar ,ear& ".c) taxes- /ees and c)ar*es ma, +e 'aid in :.arterl, installments&

"ECTION #& Accr.al o/ Tax& ( nless ot)er1ise 'rovided in t)is Code- all

local taxes- /ees- and c)ar*es s)all accr.e on t)e /irst 7#st8 da, o/ Han.ar, o/ eac)

,ear& o1ever- ne1 taxes- /ees or c)ar*es- or c)an*es in t)e rates t)ereo/- s)all

accr.e on t)e /irst 7#st8 da, o/ t)e :.arter next /ollo1in* t)e e//ectivit, o/ t)e

ordinance im'osin* s.c) ne1 levies or rates&

"ECTION #& Time o/ !a,ment& ( nless ot)er1ise 'rovided in t)is Code-

all local taxes- /ees- and c)ar*es s)all +e 'aid 1it)in t)e /irst t1ent, 7$58 da,s o/


25/68


26/68

In case t)e examination )erein a.t)ori@ed is made +, a d.l, a.t)ori@ed de'.t, o/

t)e local treas.rer- t)e 1ritten a.t)orit, o/ t)e de'.t, concerned s)all s'eci/icall,

state t)e name- address- and +.siness o/ t)e tax'a,er 1)ose +oo?s- acco.nts- and

'ertinent records are to +e examined- t)e date and 'lace o/ s.c) examination and

t)e 'roced.re to +e /ollo1ed in cond.ctin* t)e same&

For t)is '.r'ose- t)e records o/ t)e reven.e district o//ice o/ t)e B.rea. o/ Internal

Reven.e s)all +e made availa+le to t)e local treas.rer- )is de'.t, or d.l,

a.t)ori@ed re'resentative&

CA!TER IV Civil Remedies /or Collection o/ Reven.es

"ECTION #$& A''lication o/ C)a'ter& ( T)e 'rovisions o/ t)is C)a'ter and

t)e remedies 'rovided )erein ma, +e availed o/ /or t)e collection o/ an, delin:.ent

local tax- /ee- c)ar*e- or ot)er reven.e&

"ECTION #4& Local Government;s Lien& ( Local taxes- /ees- c)ar*es and

ot)er reven.es constit.te a lien- s.'erior to all liens- c)ar*es or enc.m+rances in

/avor o/ an, 'erson- en/orcea+le +, a''ro'riate administrative or 3.dicial action-

not onl, .'on an, 'ro'ert, or ri*)ts t)erein 1)ic) ma, +e s.+3ect to t)e lien +.t

also .'on 'ro'ert, .sed in +.siness- occ.'ation- 'ractice o/ 'ro/ession or callin*-

or exercise o/ 'rivile*e 1it) res'ect to 1)ic) t)e lien is im'osed& T)e lien ma,

onl, +e extin*.is)ed .'on /.ll 'a,ment o/ t)e delin:.ent local taxes- /ees and

c)ar*es incl.din* related s.rc)ar*es and interest&

"ECTION #


27/68

7a8 "[email protected] ( 'on /ail.re o/ t)e 'erson o1in* an, local tax- /ee- or c)ar*e to

'a, t)e same at t)e time re:.ired- t)e local treas.rer or )is de'.t, ma,- .'on

1ritten notice- sei@e or con/iscate an, 'ersonal 'ro'ert, +elon*in* to t)at 'erson or

an, 'ersonal 'ro'ert, s.+3ect to t)e lien in s.//icient :.antit, to satis/, t)e tax- /ee-

or c)ar*e in :.estion- to*et)er 1it) an, increment t)ereto incident to delin:.enc,and t)e ex'enses o/ [email protected]& In s.c) case- t)e local treas.rer or )is de'.t, s)all

iss.e a d.l, a.t)enticated certi/icate +ased .'on t)e records o/ )is o//ice s)o1in*

t)e /act o/ delin:.enc, and t)e amo.nts o/ t)e tax- /ee- or c)ar*e and 'enalt, d.e&

".c) certi/icate s)all serve as s.//icient 1arrant /or t)e distraint o/ 'ersonal

'ro'ert, a/orementioned- s.+3ect to t)e tax'a,er;s ri*)t to claim exem'tion .nder

t)e 'rovisions o/ existin* la1s& Distrained 'ersonal 'ro'ert, s)all +e sold at '.+lic

a.ction in t)e manner )erein 'rovided /or&

7+8 Acco.ntin* o/ distrained *oods& ( T)e o//icer exec.tin* t)e distraint s)all

ma?e or ca.se to +e made an acco.nt o/ t)e *oods- c)attels or e//ects distrained- a

co', o/ 1)ic) si*ned +, )imsel/ s)all +e le/t eit)er 1it) t)e o1ner or 'erson /rom

1)ose 'ossession t)e *oods- c)attels or e//ects are ta?en- or at t)e d1ellin* or

'lace o/ +.siness o/ t)at 'erson and 1it) someone o/ s.ita+le a*e and discretion- to

1)ic) list s)all +e added a statement o/ t)e s.m demanded and a note o/ t)e time

and 'lace o/ sale&

7c8 !.+lication ( T)e o//icer s)all /ort)1it) ca.se a noti/ication to +e ex)i+ited

in not less t)an t)ree 748 '.+lic and cons'ic.o.s 'laces in t)e territor, o/ t)e local

*overnment .nit 1)ere t)e distraint is made- s'eci/,in* t)e time and 'lace o/ sale-and t)e articles distrained& T)e time o/ sale s)all not +e less t)an t1ent, 7$58 da,s

a/ter notice to t)e o1ner or 'ossessor o/ t)e 'ro'ert, as a+ove s'eci/ied and t)e

'.+lication or 'ostin* o/ t)e notice& One 'lace /or t)e 'ostin* o/ t)e notice s)all +e

at t)e o//ice o/ t)e c)ie/ exec.tive o/ t)e local *overnment .nit in 1)ic) t)e

'ro'ert, is distrained&

7d8 Release o/ distrained 'ro'ert, .'on 'a,ment 'rior to sale ( I/ at an, time

'rior to t)e cons.mmation o/ t)e sale- all t)e 'ro'er c)ar*es are 'aid to t)e o//icer

cond.ctin* t)e sale- t)e *oods or e//ects distrained s)all +e restored to t)e o1ner&

7e8 !roced.re o/ sale ( At t)e time and 'lace /ixed in t)e notice- t)e o//icer

cond.ctin* t)e sale s)all sell t)e *oods or e//ects so distrained at '.+lic a.ction to

t)e )i*)est +idder /or cas)& =it)in /ive 78 da,s a/ter t)e sale- t)e local treas.rer

s)all ma?e a re'ort o/ t)e 'roceedin*s in 1ritin* to t)e local c)ie/ exec.tive

concerned&


28/68

")o.ld t)e 'ro'ert, distrained +e not dis'osed o/ 1it)in one ).ndred and t1ent,

7#$58 da,s /rom t)e date o/ distraint- t)e same s)all +e considered as sold to t)e

local *overnment .nit concerned /or t)e amo.nt o/ t)e assessment made t)ereon

+, t)e Committee on A''raisal and to t)e extent o/ t)e same amo.nt- t)e tax

delin:.encies s)all +e cancelled&

"aid Committee on A''raisal s)all +e com'osed o/ t)e cit, or m.nici'al treas.rer

as c)airman- 1it) a re'resentative o/ t)e Commission on A.dit and t)e cit, or

m.nici'al assessor as mem+ers&

7/8 Dis'osition o/ 'roceeds ( T)e 'roceeds o/ t)e sale s)all +e a''lied to

satis/, t)e tax- incl.din* t)e s.rc)ar*es- interest- and ot)er 'enalties incident to

delin:.enc,- and t)e ex'enses o/ t)e distraint and sale& T)e +alance over and a+ove

1)at is re:.ired to 'a, t)e entire claim s)all +e ret.rned to t)e o1ner o/ t)e

'ro'ert, sold& T)e ex'enses c)ar*ea+le .'on t)e [email protected] and sale s)all em+raceonl, t)e act.al ex'enses o/ [email protected] and 'reservation o/ t)e 'ro'ert, 'endin* t)e

sale- and no c)ar*e s)all +e im'osed /or t)e services o/ t)e local o//icer or )is

de'.t,& =)ere t)e 'roceeds o/ t)e sale are ins.//icient to satis/, t)e claim- ot)er

'ro'ert, ma,- in li?e manner- +e distrained .ntil t)e /.ll amo.nt d.e- incl.din* all

ex'enses- is collected&

"ECTION #& Lev, on Real !ro'ert,& ( A/ter t)e ex'iration o/ t)e time

re:.ired to 'a, t)e delin:.ent tax- /ee- or c)ar*e- real 'ro'ert, ma, +e levied on

+e/ore- sim.ltaneo.sl,- or a/ter t)e distraint o/ 'ersonal 'ro'ert, +elon*in* to t)edelin:.ent tax'a,er& To t)is end- t)e 'rovincial- cit, or m.nici'al treas.rer- as t)e

case ma, +e- s)all 're'are a d.l, a.t)enticated certi/icate s)o1in* t)e name o/ t)e

tax'a,er and t)e amo.nt o/ t)e tax- /ee- or c)ar*e- and 'enalt, d.e /rom )im& "aid

certi/icate s)all o'erate 1it) t)e /orce o/ a le*al exec.tion t)ro.*)o.t t)e

!)ili''ines& Lev, s)all +e e//ected +, 1ritin* .'on said certi/icate t)e descri'tion

o/ t)e 'ro'ert, .'on 1)ic) lev, is made& At t)e same time- 1ritten notice o/ t)e

lev, s)all +e mailed to or served .'on t)e assessor and t)e Re*ister o/ Deeds o/ t)e

'rovince or cit, 1)ere t)e 'ro'ert, is located 1)o s)all annotate t)e lev, on t)e

tax declaration and certi/icate o/ title o/ t)e 'ro'ert,- res'ectivel,- and t)edelin:.ent tax'a,er or- i/ )e +e a+sent /rom t)e !)ili''ines- to )is a*ent or t)e

mana*er o/ t)e +.siness in res'ect to 1)ic) t)e lia+ilit, arose- or i/ t)ere +e none-

to t)e occ.'ant o/ t)e 'ro'ert, in :.estion&

In case t)e lev, on real 'ro'ert, is not iss.ed +e/ore or sim.ltaneo.sl, 1it) t)e

1arrant o/ distraint on 'ersonal 'ro'ert,- and t)e 'ersonal 'ro'ert, o/ t)e tax'a,er


29/68

is not s.//icient to satis/, )is delin:.enc,- t)e 'rovincial- cit, or m.nici'al

treas.rer- as t)e case ma, +e- s)all 1it)in t)irt, 7458 da,s a/ter exec.tion o/ t)e

distraint- 'roceed 1it) t)e lev, on t)e tax'a,er;s real 'ro'ert,&

A re'ort on an, lev, s)all- 1it)in ten 7#58 da,s a/ter recei't o/ t)e 1arrant- +e

s.+mitted +, t)e lev,in* o//icer to t)e san**.nian concerned&

"ECTION #& !enalt, /or Fail.re to Iss.e and Exec.te =arrant& ( =it)o.t

're3.dice to criminal 'rosec.tion .nder t)e Revised !enal Code and ot)er

a''lica+le la1s- an, local treas.rer 1)o /ails to iss.e or exec.te t)e 1arrant o/

distraint or lev, a/ter t)e ex'iration o/ t)e time 'rescri+ed- or 1)o is /o.nd *.ilt,

o/ a+.sin* t)e exercise t)ereo/ +, com'etent a.t)orit, s)all +e a.tomaticall,

dismissed /rom t)e service a/ter d.e notice and )earin*&

"ECTION #%& Advertisement and "ale& ( =it)in t)irt, 7458 da,s a/ter t)e

lev,- t)e local treas.rer s)all 'roceed to '.+licl, advertise /or sale or a.ction t)e

'ro'ert, or a .sa+le 'ortion t)ereo/ as ma, +e necessar, to satis/, t)e claim and

cost o/ sale9 and s.c) advertisement s)all cover a 'eriod o/ at least t)irt, 7458 da,s&

It s)all +e e//ected +, 'ostin* a notice at t)e main entrance o/ t)e m.nici'al

+.ildin* or cit, )all- and in a '.+lic and cons'ic.o.s 'lace in t)e +aran*a, 1)ere

t)e real 'ro'ert, is located- and +, '.+lication once a 1ee? /or t)ree 748 1ee?s in a

ne1s'a'er o/ *eneral circ.lation in t)e 'rovince- cit, or m.nici'alit, 1)ere t)e

'ro'ert, is located& T)e advertisement s)all contain t)e amo.nt o/ taxes- /ees or

c)ar*es- and 'enalties d.e t)ereon- and t)e time and 'lace o/ sale- t)e name o/ t)etax'a,er a*ainst 1)om t)e taxes- /ees- or c)ar*es are levied- and a s)ort

descri'tion o/ t)e 'ro'ert, to +e sold& At an, time +e/ore t)e date /ixed /or t)e sale-

t)e tax'a,er ma, sta, t)e 'roceedin*s +, 'a,in* t)e taxes- /ees- c)ar*es- 'enalties

and interests& I/ )e /ails to do so- t)e sale s)all 'roceed and s)all +e )eld eit)er at

t)e main entrance o/ t)e 'rovincial- cit, or m.nici'al +.ildin*- or on t)e 'ro'ert,

to +e sold- or at an, ot)er 'lace as determined +, t)e local treas.rer cond.ctin* t)e

sale and s'eci/ied in t)e notice o/ sale&

=it)in t)irt, 7458 da,s a/ter t)e sale- t)e local treas.rer or )is de'.t, s)all ma?e a

re'ort o/ t)e sale to t)e san**.nian concerned- and 1)ic) s)all /orm 'art o/ )is

records& A/ter cons.ltation 1it) t)e san**.nian- t)e local treas.rer s)all ma?e and

deliver to t)e '.rc)aser a certi/icate o/ sale- s)o1in* t)e 'roceedin*s o/ t)e sale-

descri+in* t)e 'ro'ert, sold- statin* t)e name o/ t)e '.rc)aser and settin* o.t t)e

exact amo.nt o/ all taxes- /ees- c)ar*es- and related s.rc)ar*es- interests- or


30/68

'enalties6 !rovided- )o1ever- T)at an, excess in t)e 'roceeds o/ t)e sale over t)e

claim and cost o/ sales s)all +e t.rned over to t)e o1ner o/ t)e 'ro'ert,&

T)e local treas.rer ma,- +, ordinance d.l, a''roved- advance an amo.nt s.//icient

to de/ra, t)e costs o/ collection +, means o/ t)e remedies 'rovided /or in t)is Title-

incl.din* t)e 'reservation or trans'ortation in case o/ 'ersonal 'ro'ert,- and t)e

advertisement and s.+se:.ent sale- in cases o/ 'ersonal and real 'ro'ert, incl.din*

im'rovements t)ereon&

"ECTION #2& Redem'tion o/ !ro'ert, "old& ( =it)in one 7#8 ,ear /rom t)e

date o/ sale- t)e delin:.ent tax'a,er or )is re'resentative s)all )ave t)e ri*)t to

redeem t)e 'ro'ert, .'on 'a,ment to t)e local treas.rer o/ t)e total amo.nt o/

taxes- /ees- or c)ar*es- and related s.rc)ar*es- interests or 'enalties /rom t)e date

o/ delin:.enc, to t)e date o/ sale- 'l.s interest o/ not more t)an t1o 'ercent 7$8

'er mont) on t)e '.rc)ase 'rice /rom t)e date o/ '.rc)ase to t)e date o/redem'tion& ".c) 'a,ment s)all invalidate t)e certi/icate o/ sale iss.ed to t)e

'.rc)aser and t)e o1ner s)all +e entitled to a certi/icate o/ redem'tion /rom t)e

'rovincial- cit, or m.nici'al treas.rer or )is de'.t,&

T)e 'rovincial- cit, or m.nici'al treas.rer or )is de'.t,- .'on s.rrender +, t)e

'.rc)aser o/ t)e certi/icate o/ sale 'revio.sl, iss.ed to )im- s)all /ort)1it) ret.rn

to t)e latter t)e entire '.rc)ase 'rice 'aid +, )im 'l.s t)e interest o/ not more t)an

t1o 'ercent 7$8 'er mont) )erein 'rovided /or- t)e 'ortion o/ t)e cost o/ sale and

ot)er le*itimate ex'enses inc.rred +, )im- and said 'ro'ert, t)erea/ter s)all +e/ree /rom t)e lien o/ s.c) taxes- /ees- or c)ar*es- related s.rc)ar*es- interests- and

'enalties&

T)e o1ner s)all not- )o1ever- +e de'rived o/ t)e 'ossession o/ said 'ro'ert, and

s)all +e entitled to t)e rentals and ot)er income t)ereo/ .ntil t)e ex'iration o/ t)e

time allo1ed /or its redem'tion&

"ECTION #%5& Final Deed to !.rc)aser& ( In case t)e tax'a,er /ails to redeem

t)e 'ro'ert, as 'rovided )erein- t)e local treas.rer s)all exec.te a deed conve,in*

to t)e '.rc)aser so m.c) o/ t)e 'ro'ert, as )as +een sold- /ree /rom liens o/ an,taxes- /ees- c)ar*es- related s.rc)ar*es- interests- and 'enalties& T)e deed s)all

s.ccinctl, recite all t)e 'roceedin*s .'on 1)ic) t)e validit, o/ t)e sale de'ends&

"ECTION #%#& !.rc)ase o/ !ro'ert, B, t)e Local Government nits /or =ant

o/ Bidder& ( In case t)ere is no +idder /or t)e real 'ro'ert, advertised /or sale as

'rovided )erein- or i/ t)e )i*)est +id is /or an amo.nt ins.//icient to 'a, t)e taxes-


31/68

/ees- or c)ar*es- related s.rc)ar*es- interests- 'enalties and costs- t)e local

treas.rer cond.ctin* t)e sale s)all '.rc)ase t)e 'ro'ert, in +e)al/ o/ t)e local

*overnment .nit concerned to satis/, t)e claim and 1it)in t1o 7$8 da,s t)erea/ter

s)all ma?e a re'ort o/ )is 'roceedin*s 1)ic) s)all +e re/lected .'on t)e records o/

)is o//ice& It s)all +e t)e d.t, o/ t)e Re*istrar o/ Deeds concerned .'on re*istration1it) )is o//ice o/ an, s.c) declaration o/ /or/eit.re to trans/er t)e title o/ t)e

/or/eited 'ro'ert, to t)e local *overnment .nit concerned 1it)o.t t)e necessit, o/

an order /rom a com'etent co.rt&

=it)in one 7#8 ,ear /rom t)e date o/ s.c) /or/eit.re- t)e tax'a,er or an, o/ )is

re'resentative- ma, redeem t)e 'ro'ert, +, 'a,in* to t)e local treas.rer t)e /.ll

amo.nt o/ t)e taxes- /ees- c)ar*es- and related s.rc)ar*es- interests- or 'enalties-

and t)e costs o/ sale& I/ t)e 'ro'ert, is not redeemed as 'rovided )erein- t)e

o1ners)i' t)ereo/ s)all +e /.ll, vested on t)e local *overnment .nit concerned&

"ECTION #%$& Resale o/ Real Estate Ta?en /or Taxes- Fees- or C)ar*es& ( T)e

san**.nian concerned ma,- +, ordinance d.l, a''roved- and .'on notice o/ not

less t)an t1ent, 7$58 da,s- sell and dis'ose o/ t)e real 'ro'ert, ac:.ired .nder t)e

'recedin* section at '.+lic a.ction& T)e 'roceeds o/ t)e sale s)all accr.e to t)e

*eneral /.nd o/ t)e local *overnment .nit concerned&

"ECTION #%4& Collection o/ Delin:.ent Taxes- Fees- C)ar*es or ot)er

Reven.es t)ro.*) H.dicial Action& ( T)e local *overnment .nit concerned ma,

en/orce t)e collection o/ delin:.ent taxes- /ees- c)ar*es or ot)er reven.es +, civilaction in an, co.rt o/ com'etent 3.risdiction& T)e civil action s)all +e /iled +, t)e

local treas.rer 1it)in t)e 'eriod 'rescri+ed in "ection #2< o/ t)is Code&

"ECTION #%


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7c8 is necessar, clot)in*- and t)at o/ all )is /amil,9

7d8 o.se)old /.rnit.re and .tensils necessar, /or )o.se?ee'in* and .sed /or

t)at '.r'ose +, t)e delin:.ent tax'a,er- s.c) as )e ma, select- o/ a val.e not

exceedin* Ten t)o.sand 'esos 7!#5-555&5589

7e8 !rovisions- incl.din* cro's- act.all, 'rovided /or individ.al or /amil, .se

s.//icient /or /o.r 7


33/68

H.stice actin* .'on t)e a''eal- t)e a**rieved 'art, ma, /ile a''ro'riate

'roceedin*s 1it) a co.rt o/ com'etent 3.risdiction&

"ECTION #%%& !.+lication o/ Tax Ordinances and Reven.e Meas.res& (

=it)in ten 7#58 da,s a/ter t)eir a''roval- certi/ied tr.e co'ies o/ all 'rovincial- cit,-

and m.nici'al tax ordinances or reven.e meas.res s)all +e '.+lis)ed in /.ll /or

t)ree 748 consec.tive da,s in a ne1s'a'er o/ local circ.lation6 !rovided- )o1ever-

T)at in 'rovinces- cities and m.nici'alities 1)ere t)ere are no ne1s'a'ers o/ local

circ.lation- t)e same ma, +e 'osted in at least t1o 7$8 cons'ic.o.s and '.+licl,

accessi+le 'laces&

"ECTION #%2& F.rnis)in* o/ Co'ies o/ Tax Ordinances and Reven.e

Meas.res& ( Co'ies o/ all 'rovincial- cit,- and m.nici'al and +aran*a, tax

ordinances and reven.e meas.res s)all +e /.rnis)ed t)e res'ective local treas.rers

/or '.+lic dissemination&

"ECTION #25& Attem't to En/orce Void or ".s'ended Tax Ordinances and

Reven.e Meas.res& ( T)e en/orcement o/ an, tax ordinance or reven.e meas.re

a/ter d.e notice o/ t)e disa''roval or s.s'ension t)ereo/ s)all +e s.//icient *ro.nd

/or administrative disci'linar, action a*ainst t)e local o//icials and em'lo,ees

res'onsi+le t)ere/or&

"ECTION #2#& A.t)orit, o/ Local Government nits to Ad3.st Rates o/ Tax

Ordinances& ( Local *overnment .nits s)all )ave t)e a.t)orit, to ad3.st t)e tax

rates as 'rescri+ed )erein not o/tener t)an once ever, /ive 78 ,ears- +.t in no cases)all s.c) ad3.stment exceed ten 'ercent 7#58 o/ t)e rates /ixed .nder t)is Code&

"ECTION #2$& A.t)orit, to Grant Tax Exem'tion !rivile*es& ( Local

*overnment .nits ma,- t)ro.*) ordinances d.l, a''roved- *rant tax exem'tions-

incentives or relie/s .nder s.c) terms and conditions as t)e, ma, deem necessar,&

"ECTION #24& =it)dra1al o/ Tax Exem'tion !rivile*es& ( nless ot)er1ise

'rovided in t)is Code- tax exem'tions or incentives *ranted to- or 'resentl,

en3o,ed +, all 'ersons- 1)et)er nat.ral or 3.ridical- incl.din* *overnment0o1ned

or 0controlled cor'orations- exce't local 1ater districts- coo'eratives d.l,re*istered .nder R&A& No& 24%- non0stoc? and non0'ro/it )os'itals and ed.cational

instit.tions- are )ere+, 1it)dra1n .'on t)e e//ectivit, o/ t)is Code&

CA!TER VI Tax'a,er;s Remedies


34/68

"ECTION #2


35/68

'rescri+ed )erein 1it)in 1)ic) to a''eal 1it) t)e co.rt o/ com'etent 3.risdiction

ot)er1ise t)e assessment +ecomes concl.sive and .na''eala+le&

"ECTION #2& Claim /or Re/.nd o/ Tax Credit& ( No case or 'roceedin* s)all

+e maintained in an, co.rt /or t)e recover, o/ an, tax- /ee- or c)ar*e erroneo.sl,

or ille*all, collected .ntil a 1ritten claim /or re/.nd or credit )as +een /iled 1it)

t)e local treas.rer& No case or 'roceedin* s)all +e entertained in an, co.rt a/ter t)e

ex'iration o/ t1o 7$8 ,ears /rom t)e date o/ t)e 'a,ment o/ s.c) tax- /ee- or c)ar*e-

or /rom t)e date t)e tax'a,er is entitled to a re/.nd or credit&

TITLE II& Real !ro'ert, Taxation

CA!TER I General !rovisions

"ECTION #2& "co'e& ( T)is Title s)all *overn t)e administration- a''raisal-

assessment- lev, and collection o/ real 'ro'ert, tax&

"ECTION #2%& F.ndamental !rinci'les& ( T)e a''raisal- assessment- lev, and

collection o/ real 'ro'ert, tax s)all +e *.ided +, t)e /ollo1in* /.ndamental

'rinci'les6

7a8 Real 'ro'ert, s)all +e a''raised at its c.rrent and /air mar?et val.e9

7+8 Real 'ro'ert, s)all +e classi/ied /or assessment '.r'oses on t)e +asis o/ its

act.al .se9

7c8 Real 'ro'ert, s)all +e assessed on t)e +asis o/ a .ni/orm classi/ication1it)in eac) local *overnment .nit9

7d8 T)e a''raisal- assessment- lev, and collection o/ real 'ro'ert, tax s)all not

+e let to an, 'rivate 'erson9 and

7e8 T)e a''raisal and assessment o/ real 'ro'ert, s)all +e e:.ita+le&

"ECTION #22& De/inition o/ Terms& ( =)en .sed in t)is Title- t)e term6

7a8 >Ac:.isition Cost> /or ne1l,0ac:.ired mac)iner, not ,et de'reciated and

a''raised 1it)in t)e ,ear o/ its '.rc)ase- re/ers to t)e act.al cost o/ t)e mac)iner,to its 'resent o1ner- 'l.s t)e cost o/ trans'ortation- )andlin*- and installation at t)e

'resent site9

7+8 >Act.al se> re/ers to t)e '.r'ose /or 1)ic) t)e 'ro'ert, is 'rinci'all, or

'redominantl, .tili@ed +, t)e 'erson in 'ossession t)ereo/9


36/68

7c8 >Ad Valorem Tax> is a lev, on real 'ro'ert, determined on t)e +asis o/ a

/ixed 'ro'ortion o/ t)e val.e o/ t)e 'ro'ert,9

7d8 >A*ric.lt.ral Land> is land devoted 'rinci'all, to t)e 'lantin* o/ trees-

raisin* o/ cro's- livestoc? and 'o.ltr,- dair,in*- salt ma?in*- inland /is)in* and

similar a:.ac.lt.ral activities- and ot)er a*ric.lt.ral activities- and is not classi/ied

as mineral- tim+er- residential- commercial or ind.strial land9

7e8 >A''raisal> is t)e act or 'rocess o/ determinin* t)e val.e o/ 'ro'ert, as o/ a

s'eci/ied date /or a s'eci/ic '.r'ose9

7/8 >Assessment> is t)e act or 'rocess o/ determinin* t)e val.e o/ a 'ro'ert,- or

'ro'ortion t)ereo/ s.+3ect to tax- incl.din* t)e discover,- listin*- classi/ication-

and a''raisal o/ 'ro'erties9

7*8 >Assessment Level> is t)e 'ercenta*e a''lied to t)e /air mar?et val.e todetermine t)e taxa+le val.e o/ t)e 'ro'ert,9

7)8 >Assessed Val.e> is t)e /air mar?et val.e o/ t)e real 'ro'ert, m.lti'lied +,

t)e assessment level& It is s,non,mo.s to taxa+le val.e9

7i8 >Commercial Land> is land devoted 'rinci'all, /or t)e o+3ect o/ 'ro/it and is

not classi/ied as a*ric.lt.ral- ind.strial- mineral- tim+er- or residential land9

738 >De'reciated Val.e> is t)e val.e remainin* a/ter ded.ctin* de'reciation

/rom t)e ac:.isition cost9

7?8 >Economic Li/e> is t)e estimated 'eriod over 1)ic) it is antici'ated t)at a

mac)iner, or e:.i'ment ma, +e 'ro/ita+l, .tili@ed9

7l8 >Fair Mar?et Val.e> is t)e 'rice at 1)ic) a 'ro'ert, ma, +e sold +, a seller

1)o is not com'elled to sell and +o.*)t +, a +.,er 1)o is not com'elled to +.,9

7m8 >Im'rovement> is a val.a+le addition made to a 'ro'ert, or an amelioration

in its condition- amo.ntin* to more t)an a mere re'air or re'lacement o/ 'arts

involvin* ca'ital ex'endit.res and la+or- 1)ic) is intended to en)ance its val.e-

+ea.t, or .tilit, or to ada't it /or ne1 or /.rt)er '.r'oses9

7n8 >Ind.strial Land> is land devoted 'rinci'all, to ind.strial activit, as ca'ital

investment and is not classi/ied as a*ric.lt.ral- commercial- tim+er- mineral or

residential land9


37/68

7o8 >Mac)iner,> em+races mac)ines- e:.i'ment- mec)anical contrivances-

instr.ments- a''liances or a''arat.s 1)ic) ma, or ma, not +e attac)ed-

'ermanentl, or tem'oraril,- to t)e real 'ro'ert,& It incl.des t)e '),sical /acilities

/or 'rod.ction- t)e installations and a''.rtenant service /acilities- t)ose 1)ic) are

mo+ile- sel/0'o1ered or sel/0'ro'elled- and t)ose not 'ermanentl, attac)ed to t)ereal 'ro'ert, 1)ic) are act.all,- directl,- and excl.sivel, .sed to meet t)e needs o/

t)e 'artic.lar ind.str,- +.siness or activit, and 1)ic) +, t)eir ver, nat.re and

'.r'ose are desi*ned /or- or necessar, to its man./act.rin*- minin*- lo**in*-

commercial- ind.strial or a*ric.lt.ral '.r'oses9

7'8 >Mineral Lands> are lands in 1)ic) minerals- metallic or non0metallic- exist

in s.//icient :.antit, or *rade to 3.sti/, t)e necessar, ex'endit.res to extract and

.tili@e s.c) materials9

7:8 >Reassessment> is t)e assi*nin* o/ ne1 assessed val.es to 'ro'ert,-'artic.larl, real estate- as t)e res.lt o/ a *eneral- 'artial- or individ.al rea''raisal

o/ t)e 'ro'ert,9

7r8 >Remainin* Economic Li/e> is t)e 'eriod o/ time ex'ressed in ,ears /rom

t)e date o/ a''raisal to t)e date 1)en t)e mac)iner, +ecomes val.eless9

7s8 >Remainin* Val.e> is t)e val.e corres'ondin* to t)e remainin* .se/.l li/e o/

t)e mac)iner,9

7t8 >Re'lacement or Re'rod.ction Cost> is t)e cost t)at 1o.ld +e inc.rred on

t)e +asis o/ c.rrent 'rices- in ac:.irin* an e:.all, desira+le s.+stit.te 'ro'ert,- or

t)e cost o/ re'rod.cin* a ne1 re'lica o/ t)e 'ro'ert, on t)e +asis o/ c.rrent 'rices

1it) t)e same or closel, similar material9 and

7.8 >Residential Land> is land 'rinci'all, devoted to )a+itation&

"ECTION $55& Administration o/ t)e Real !ro'ert, Tax& ( T)e 'rovinces and

cities- incl.din* t)e m.nici'alities 1it)in t)e Metro'olitan Manila Area- s)all +e

'rimaril, res'onsi+le /or t)e 'ro'er- e//icient and e//ective administration o/ t)e

real 'ro'ert, tax&CA!TER II A''raisal and Assessment o/ Real !ro'ert,

"ECTION $5#& A''raisal o/ Real !ro'ert,& ( All real 'ro'ert,- 1)et)er

taxa+le or exem't- s)all +e a''raised at t)e c.rrent and /air mar?et val.e

'revailin* in t)e localit, 1)ere t)e 'ro'ert, is sit.ated& T)e De'artment o/ Finance


38/68

s)all 'rom.l*ate t)e necessar, r.les and re*.lations /or t)e classi/ication-

a''raisal- and assessment o/ real 'ro'ert, '.rs.ant to t)e 'rovisions o/ t)is Code&

"ECTION $5$& Declaration o/ Real !ro'ert, +, t)e O1ner or Administrator& (

It s)all +e t)e d.t, o/ all 'ersons- nat.ral or 3.ridical- o1nin* or administerin* real

'ro'ert,- incl.din* t)e im'rovements t)erein- 1it)in a cit, or m.nici'alit,- or t)eir

d.l, a.t)ori@ed re'resentative- to 're'are- or ca.se to +e 're'ared- and /ile 1it)

t)e 'rovincial- cit, or m.nici'al assessor- a s1orn statement declarin* t)e tr.e

val.e o/ t)eir 'ro'ert,- 1)et)er 'revio.sl, declared or .ndeclared- taxa+le or

exem't- 1)ic) s)all +e t)e c.rrent and /air mar?et val.e o/ t)e 'ro'ert,- as

determined +, t)e declarant& ".c) declaration s)all contain a descri'tion o/ t)e

'ro'ert, s.//icient in detail to ena+le t)e assessor or )is de'.t, to identi/, t)e same

/or assessment '.r'oses& T)e s1orn declaration o/ real 'ro'ert, )erein re/erred to

s)all +e /iled 1it) t)e assessor concerned once ever, t)ree 748 ,ears d.rin* t)e

'eriod /rom Han.ar, /irst 7#st8 to H.ne t)irtiet) 745t)8 commencin* 1it) t)e

calendar ,ear #22$&

"ECTION $54& D.t, o/ !erson Ac:.irin* Real !ro'ert, or Ma?in*

Im'rovement T)ereon& ( It s)all also +e t)e d.t, o/ an, 'erson- or )is a.t)ori@ed

re'resentative- ac:.irin* at an, time real 'ro'ert, in an, m.nici'alit, or cit, or

ma?in* an, im'rovement on real 'ro'ert,- to 're'are- or ca.se to +e 're'ared- and

/ile 1it) t)e 'rovincial- cit, or m.nici'al assessor- a s1orn statement declarin* t)e

tr.e val.e o/ s.+3ect 'ro'ert,- 1it)in sixt, 758 da,s a/ter t)e ac:.isition o/ s.c)

'ro'ert, or .'on com'letion or occ.'anc, o/ t)e im'rovement- 1)ic)ever comesearlier&

"ECTION $5


39/68

1)et)er taxa+le or exem't- located 1it)in t)e territorial 3.risdiction o/ t)e local

*overnment .nit concerned& Real 'ro'ert, s)all +e listed- val.ed and assessed in

t)e name o/ t)e o1ner or administrator- or an,one )avin* le*al interest in t)e

'ro'ert,&

7+8 T)e .ndivided real 'ro'ert, o/ a deceased 'erson ma, +e listed- val.ed and

assessed in t)e name o/ t)e estate or o/ t)e )eirs and devisees 1it)o.t desi*natin*

t)em individ.all,9 and .ndivided real 'ro'ert, ot)er t)an t)at o1ned +, a

deceased ma, +e listed- val.ed and assessed in t)e name o/ one or more co0

o1ners6 !rovided- )o1ever- T)at s.c) )eir- devisee- or co0o1ner s)all +e lia+le

severall, and 'ro'ortionatel, /or all o+li*ations im'osed +, t)is Title and t)e

'a,ment o/ t)e real 'ro'ert, tax 1it) res'ect to t)e .ndivided 'ro'ert,&

7c8 T)e real 'ro'ert, o/ a cor'oration- 'artners)i'- or association s)all +e listed-

val.ed and assessed in t)e same manner as t)at o/ an individ.al&

7d8 Real 'ro'ert, o1ned +, t)e Re'.+lic o/ t)e !)ili''ines- its instr.mentalities

and 'olitical s.+divisions- t)e +ene/icial .se o/ 1)ic) )as +een *ranted- /or

consideration or ot)er1ise- to a taxa+le 'erson- s)all +e listed- val.ed and assessed

in t)e name o/ t)e 'ossessor- *rantee or o/ t)e '.+lic entit, i/ s.c) 'ro'ert, )as

+een ac:.ired or )eld /or resale or lease&

"ECTION $5& !roo/ o/ Exem'tion o/ Real !ro'ert, /rom Taxation& ( Ever,

'erson +, or /or 1)om real 'ro'ert, is declared- 1)o s)all claim tax exem'tion /or

s.c) 'ro'ert, .nder t)is Title s)all /ile 1it) t)e 'rovincial- cit, or m.nici'alassessor 1it)in t)irt, 7458 da,s /rom t)e date o/ t)e declaration o/ real 'ro'ert,

s.//icient doc.mentar, evidence in s.''ort o/ s.c) claim incl.din* cor'orate

c)arters- title o/ o1ners)i'- articles o/ incor'oration- +,0la1s- contracts- a//idavits-

certi/ications and mort*a*e deeds- and similar doc.ments&

I/ t)e re:.ired evidence is not s.+mitted 1it)in t)e 'eriod )erein 'rescri+ed- t)e

'ro'ert, s)all +e listed as taxa+le in t)e assessment roll& o1ever- i/ t)e 'ro'ert,

s)all +e 'roven to +e tax exem't- t)e same s)all +e dro''ed /rom t)e assessment

roll&"ECTION $5& Real !ro'ert, Identi/ication ",stem& ( All declarations o/ real

'ro'ert, made .nder t)e 'rovisions o/ t)is Title s)all +e ?e't and /iled .nder a

.ni/orm classi/ication s,stem to +e esta+lis)ed +, t)e 'rovincial- cit, or m.nici'al

assessor&


40/68

"ECTION $5%& Noti/ication o/ Trans/er o/ Real !ro'ert, O1ners)i'& ( An,

'erson 1)o s)all trans/er real 'ro'ert, o1ners)i' to anot)er s)all noti/, t)e

'rovincial- cit, or m.nici'al assessor concerned 1it)in sixt, 758 da,s /rom t)e

date o/ s.c) trans/er& T)e noti/ication s)all incl.de t)e mode o/ trans/er- t)e

descri'tion o/ t)e 'ro'ert, alienated- t)e name and address o/ t)e trans/eree&

"ECTION $52& D.t, o/ Re*istrar o/ Deeds to A''rise Assessor o/ Real

!ro'ert, Listed in Re*istr,& ( 7a8 To ascertain 1)et)er or not an, real 'ro'ert,

entered in t)e Re*istr, o/ !ro'ert, )as esca'ed discover, and listin* /or t)e

'.r'ose o/ taxation- t)e Re*istrar o/ Deeds s)all 're'are and s.+mit to t)e

'rovincial- cit, or m.nici'al assessor- 1it)in six 78 mont)s /rom t)e date o/

e//ectivit, o/ t)is Code and ever, ,ear t)erea/ter- an a+stract o/ )is re*istr,- 1)ic)

s)all incl.de +rie/ +.t s.//icient descri'tion o/ t)e real 'ro'erties entered t)erein-

t)eir 'resent o1ners- and t)e dates o/ t)eir most recent trans/er or alienation

accom'anied +, co'ies o/ corres'ondin* deeds o/ sale- donation- or 'artition or

ot)er /orms o/ alienation&

7+8 It s)all also +e t)e d.t, o/ t)e Re*istrar o/ Deeds to re:.ire ever, 'erson

1)o s)all 'resent /or re*istration a doc.ment o/ trans/er- alienation- or

enc.m+rance o/ real 'ro'ert, to accom'an, t)e same 1it) a certi/icate to t)e e//ect

t)at t)e real 'ro'ert, s.+3ect o/ t)e trans/er- alienation- or enc.m+rance- as t)e case

ma, +e- )as +een /.ll, 'aid o/ all real 'ro'ert, taxes d.e t)ereon& Fail.re to

'rovide s.c) certi/icate s)all +e a valid ca.se /or t)e Re*istrar o/ Deeds to re/.se

t)e re*istration o/ t)e doc.ment&

"ECTION $#5& D.t, o/ O//icial Iss.in* B.ildin* !ermit or Certi/icate o/

Re*istration o/ Mac)iner, to Transmit Co', to Assessor& ( An, '.+lic o//icial or

em'lo,ee 1)o ma, no1 or )erea/ter +e re:.ired +, la1 or re*.lation to iss.e to

an, 'erson a 'ermit /or t)e constr.ction- addition- re'air- or renovation o/ a

+.ildin*- or 'ermanent im'rovement on land- or a certi/icate o/ re*istration /or an,

mac)iner,- incl.din* mac)ines- mec)anical contrivances- and a''arat.s attac)ed

or a//ixed on land or to anot)er real 'ro'ert,- s)all transmit a co', o/ s.c) 'ermit

or certi/icate 1it)in t)irt, 7458 da,s o/ its iss.ance- to t)e assessor o/ t)e 'rovince-cit, or m.nici'alit, 1)ere t)e 'ro'ert, is sit.ated&

"ECTION $##& D.t, o/ Geodetic En*ineers to F.rnis) Co', o/ !lans to

Assessor& ( It s)all +e t)e d.t, o/ all *eodetic en*ineers- '.+lic or 'rivate- to

/.rnis) /ree o/ c)ar*e to t)e assessor o/ t)e 'rovince- cit, or m.nici'alit, 1)ere

t)e land is located 1it) a 1)ite or +l.e 'rint co', o/ eac) o/ all a''roved ori*inal


41/68

or s.+division 'lans or ma's o/ s.rve,s exec.ted +, t)em 1it)in t)irt, 7458 da,s

/rom recei't o/ s.c) 'lans /rom t)e Lands Mana*ement B.rea.- t)e Land

Re*istration A.t)orit,- or t)e o.sin* and Land se Re*.lator, Board- as t)e case

ma, +e&

"ECTION $#$& !re'aration o/ "c)ed.le o/ Fair Mar?et Val.es& ( Be/ore an,

*eneral revision o/ 'ro'ert, assessment is made '.rs.ant to t)e 'rovisions o/ t)is

Title- t)ere s)all +e 're'ared a sc)ed.le o/ /air mar?et val.es +, t)e 'rovincial-

cit, and m.nici'al assessors o/ t)e m.nici'alities 1it)in t)e Metro'olitan Manila

Area /or t)e di//erent classes o/ real 'ro'ert, sit.ated in t)eir res'ective local

*overnment .nits /or enactment +, ordinance o/ t)e san**.nian concerned& T)e

sc)ed.le o/ /air mar?et val.es s)all +e '.+lis)ed in a ne1s'a'er o/ *eneral

circ.lation in t)e 'rovince- cit, or m.nici'alit, concerned- or in t)e a+sence

t)ereo/- s)all +e 'osted in t)e 'rovincial ca'itol- cit, or m.nici'al )all and in t1o

7$8 ot)er cons'ic.o.s '.+lic 'laces t)erein&

"ECTION $#4& A.t)orit, o/ Assessor to Ta?e Evidence& ( For t)e '.r'ose o/

o+tainin* in/ormation on 1)ic) to +ase t)e mar?et val.e o/ an, real 'ro'ert,- t)e

assessor o/ t)e 'rovince- cit, or m.nici'alit, or )is de'.t, ma, s.mmon t)e

o1ners o/ t)e 'ro'erties to +e a//ected or 'ersons )avin* le*al interest t)erein and

1itnesses- administer oat)s- and ta?e de'osition concernin* t)e 'ro'ert,- its

o1ners)i'- amo.nt- nat.re- and val.e&

"ECTION $#


42/68

c.lt.ral- or scienti/ic '.r'oses- and t)ose o1ned and .sed +, local 1ater districts-

and *overnment0o1ned or 0controlled cor'orations renderin* essential '.+lic

services in t)e s.''l, and distri+.tion o/ 1ater andor *eneration and transmission

o/ electric 'o1er s)all +e classi/ied as s'ecial&

"ECTION $#& Act.al se o/ Real !ro'ert, as Basis /or Assessment& ( Real

'ro'ert, s)all +e classi/ied- val.ed and assessed on t)e +asis o/ its act.al .se

re*ardless o/ 1)ere located- 1)oever o1ns it- and 1)oever .ses it&

"ECTION $#%& Assessment Levels& ( T)e assessment levels to +e a''lied to

t)e /air mar?et val.e o/ real 'ro'ert, to determine its assessed val.e s)all +e /ixed

+, ordinances o/ t)e san**.nian* 'anlala1i*an- san**.nian* 'anl.n*sod or

san**.nian* +a,an o/ a m.nici'alit, 1it)in t)e Metro'olitan Manila Area- at t)e

rates not exceedin* t)e /ollo1in*6

7a8 On Lands6

CLA"" A""E""MENT LEVEL"

Residential $5

A*ric.lt.ral


43/68

55-555&55 5-555&55 $

5-555&55 #-555-555&55 45

#-555-555&55 $-555-555&55 4

$-555-555&55 -555-555&55


44/68

$-555-555&55 -555-555&55 5

-555-555&55 #5-555-555&55

#5-555-555&55 %5

7


45/68

Government0o1ned or

0controlled cor'orations

en*a*ed in t)e s.''l,

and distri+.tion o/ 1ater

andor *eneration and

transmission o/

electric 'o1er #5

"ECTION $#2& General Revision o/ Assessments and !ro'ert, Classi/ication&

( T)e 'rovincial- cit, or m.nici'al assessor s)all .nderta?e a *eneral revision o/

real 'ro'ert, assessments 1it)in t1o 7$8 ,ears a/ter t)e e//ectivit, o/ t)is Code and

ever, t)ree 748 ,ears t)erea/ter&

"ECTION $$5& Val.ation o/ Real !ro'ert,& ( In cases 1)ere 7a8 real 'ro'ert,

is declared and listed /or taxation '.r'oses /or t)e /irst time9 7+8 t)ere is an

on*oin* *eneral revision o/ 'ro'ert, classi/ication and assessment9 or 7c8 a re:.est

is made +, t)e 'erson in 1)ose name t)e 'ro'ert, is declared- t)e 'rovincial- cit,

or m.nici'al assessor or )is d.l, a.t)ori@ed de'.t, s)all- in accordance 1it) t)e

'rovisions o/ t)is C)a'ter- ma?e a classi/ication- a''raisal and assessment o/ t)e

real 'ro'ert, listed and descri+ed in t)e declaration irres'ective o/ an, 'revio.s

assessment or tax'a,er;s val.ation t)ereon6 !rovided- )o1ever- T)at t)eassessment o/ real 'ro'ert, s)all not +e increased o/tener t)an once ever, t)ree 748

,ears exce't in case o/ ne1 im'rovements s.+stantiall, increasin* t)e val.e o/

said 'ro'ert, or o/ an, c)an*e in its act.al .se&

"ECTION $$#& Date o/ E//ectivit, o/ Assessment or Reassessment& ( All

assessments or reassessments made a/ter t)e /irst 7#st8 da, o/ Han.ar, o/ an, ,ear

s)all ta?e e//ect on t)e /irst 7#st8 da, o/ Han.ar, o/ t)e s.cceedin* ,ear6 !rovided-

)o1ever- T)at t)e reassessment o/ real 'ro'ert, d.e to its 'artial or total

destr.ction- or to a ma3or c)an*e in its act.al .se- or to an, *reat and s.dden

in/lation or de/lation o/ real 'ro'ert, val.es- or to t)e *ross ille*alit, o/ t)e

assessment 1)en made or to an, ot)er a+normal ca.se- s)all +e made 1it)in

ninet, 7258 da,s /rom t)e date an, s.c) ca.se or ca.ses occ.rred- and s)all ta?e

e//ect at t)e +e*innin* o/ t)e :.arter next /ollo1in* t)e reassessment&


46/68

"ECTION $$$& Assessment o/ !ro'ert, ".+3ect to Bac? Taxes& ( Real

'ro'ert, declared /or t)e /irst time s)all +e assessed /or taxes /or t)e 'eriod d.rin*

1)ic) it 1o.ld )ave +een lia+le +.t in no case /or more t)an ten 7#58 ,ears 'rior to

t)e date o/ initial assessment6 !rovided- )o1ever- T)at s.c) taxes s)all +e

com'.ted on t)e +asis o/ t)e a''lica+le sc)ed.le o/ val.es in /orce d.rin* t)ecorres'ondin* 'eriod&

I/ s.c) taxes are 'aid on or +e/ore t)e end o/ t)e :.arter /ollo1in* t)e date t)e

notice o/ assessment 1as received +, t)e o1ner or )is re'resentative- no interest

/or delin:.enc, s)all +e im'osed t)ereon9 ot)er1ise- s.c) taxes s)all +e s.+3ect to

an interest at t)e rate o/ t1o 'ercent 7$8 'er mont) or a /raction t)ereo/ /rom t)e

date o/ t)e recei't o/ t)e assessment .ntil s.c) taxes are /.ll, 'aid&

"ECTION $$4& Noti/ication o/ Ne1 or Revised Assessment& ( =)en real

'ro'ert, is assessed /or t)e /irst time or 1)en an existin* assessment is increasedor decreased- t)e 'rovincial- cit, or m.nici'al assessor s)all 1it)in t)irt, 7458 da,s

*ive 1ritten notice o/ s.c) ne1 or revised assessment to t)e 'erson in 1)ose name

t)e 'ro'ert, is declared& T)e notice ma, +e delivered 'ersonall, or +, re*istered

mail or t)ro.*) t)e assistance o/ t)e '.non* +aran*a, to t)e last ?no1n address o/

t)e 'erson to +e served&

"ECTION $$


47/68

CA!TER III Assessment A''eals

"ECTION $$& Local Board o/ Assessment A''eals& ( An, o1ner or 'erson

)avin* le*al interest in t)e 'ro'ert, 1)o is not satis/ied 1it) t)e action o/ t)e

'rovincial- cit, or m.nici'al assessor in t)e assessment o/ )is 'ro'ert, ma,- 1it)in

sixt, 758 da,s /rom t)e date o/ recei't o/ t)e 1ritten notice o/ assessment- a''eal

to t)e Board o/ Assessment A''eals o/ t)e 'rovince or cit, +, /ilin* a 'etition

.nder oat) in t)e /orm 'rescri+ed /or t)e '.r'ose- to*et)er 1it) co'ies o/ t)e tax

declarations and s.c) a//idavits or doc.ments s.+mitted in s.''ort o/ t)e a''eal&

"ECTION $$& Or*ani@ation- !o1ers- D.ties- and F.nctions o/ t)e Local Board

o/ Assessment A''eals& ( 7a8 T)e Board o/ Assessment A''eals o/ t)e 'rovince or

cit, s)all +e com'osed o/ t)e Re*istrar o/ Deeds- as C)airman- t)e 'rovincial or

cit, 'rosec.tor and t)e 'rovincial- or cit, en*ineer as mem+ers- 1)o s)all serve as

s.c) in an ex o//icio ca'acit, 1it)o.t additional com'ensation&

7+8 T)e c)airman o/ t)e Board s)all )ave t)e 'o1er to desi*nate an, em'lo,ee

o/ t)e 'rovince or cit, to serve as secretar, to t)e Board also 1it)o.t additional

com'ensation&

7c8 T)e c)airman and mem+ers o/ t)e Board o/ Assessment A''eals o/ t)e

'rovince or cit, s)all ass.me t)eir res'ective 'ositions 1it)o.t need o/ /.rt)er

a''ointment or s'ecial desi*nation immediatel, .'on e//ectivit, o/ t)is Code&

T)e, s)all ta?e oat) or a//irmation o/ o//ice in t)e 'rescri+ed /orm&

7d8 In 'rovinces and cities 1it)o.t a 'rovincial or cit, en*ineer- t)e district

en*ineer s)all serve as mem+er o/ t)e Board& In t)e a+sence o/ t)e Re*istrar o/

Deeds- or t)e 'rovincial or cit, 'rosec.tor- or t)e 'rovincial or cit, en*ineer- or t)e

district en*ineer- t)e 'ersons 'er/ormin* t)eir d.ties- 1)et)er in an actin* ca'acit,

or as a d.l, desi*nated o//icer0in0c)ar*e- s)all a.tomaticall, +ecome t)e c)airman

or mem+er- res'ectivel,- o/ t)e said Board- as t)e case ma, +e&

"ECTION $$%& Meetin*s and Ex'enses o/ t)e Local Board o/ Assessment

A''eals& ( 7a8 T)e Board o/ Assessment A''eals o/ t)e 'rovince or cit, s)all

meet once a mont) and as o/ten as ma, +e necessar, /or t)e 'rom't dis'osition o/a''ealed cases& No mem+er o/ t)e Board s)all +e entitled to 'er diems or travelin*

ex'enses /or )is attendance in Board meetin*s- exce't 1)en cond.ctin* an oc.lar

ins'ection in connection 1it) a case .nder a''eal&

7+8 All ex'enses o/ t)e Board s)all +e c)ar*ed a*ainst t)e *eneral /.nd o/ t)e

'rovince or cit,- as t)e case ma, +e& T)e san**.nian concerned s)all a''ro'riate


48/68

t)e necessar, /.nds to ena+le t)e Board in t)eir res'ective localities to o'erate

e//ectivel,&

"ECTION $$2& Action +, t)e Local Board o/ Assessment A''eals& ( 7a8 T)e

Board s)all decide t)e a''eal 1it)in one ).ndred t1ent, 7#$58 da,s /rom t)e date

o/ recei't o/ s.c) a''eal& T)e Board- a/ter )earin*- s)all render its decision +ased

on s.+stantial evidence or s.c) relevant evidence on record as a reasona+le mind

mi*)t acce't as ade:.ate to s.''ort t)e concl.sion&

7+8 In t)e exercise o/ its a''ellate 3.risdiction- t)e Board s)all )ave t)e 'o1er to

s.mmon 1itnesses- administer oat)s- cond.ct oc.lar ins'ection- ta?e de'ositions-

and iss.e s.+'oena and s.+'oena d.ces tec.m& T)e 'roceedin*s o/ t)e Board s)all

+e cond.cted solel, /or t)e '.r'ose o/ ascertainin* t)e /acts 1it)o.t necessaril,

ad)erin* to tec)nical r.les a''lica+le in 3.dicial 'roceedin*s&

7c8 T)e secretar, o/ t)e Board s)all /.rnis) t)e o1ner o/ t)e 'ro'ert, or t)e

'erson )avin* le*al interest t)erein and t)e 'rovincial or cit, assessor 1it) a co',

o/ t)e decision o/ t)e Board& In case t)e 'rovincial or cit, assessor conc.rs in t)e

revision or t)e assessment- it s)all +e )is d.t, to noti/, t)e o1ner o/ t)e 'ro'ert,

or t)e 'erson )avin* le*al interest t)erein o/ s.c) /act .sin* t)e /orm 'rescri+ed

/or t)e '.r'ose& T)e o1ner o/ t)e 'ro'ert, or t)e 'erson )avin* le*al interest

t)erein or t)e assessor 1)o is not satis/ied 1it) t)e decision o/ t)e Board- ma,-

1it)in t)irt, 7458 da,s a/ter recei't o/ t)e decision o/ said Board- a''eal to t)e

Central Board o/ Assessment A''eals- as )erein 'rovided& T)e decision o/ t)eCentral Board s)all +e /inal and exec.tor,&

"ECTION $45& Central Board o/ Assessment A''eals& ( T)e Central Board o/

Assessment A''eals s)all +e com'osed o/ a c)airman and t1o 7$8 mem+ers to +e

a''ointed +, t)e !resident- 1)o s)all serve /or a term o/ seven 78 ,ears- 1it)o.t

rea''ointment& O/ t)ose /irst a''ointed- t)e c)airman s)all )old o//ice /or seven

78 ,ears- one mem+er /or /ive 78 ,ears- and t)e ot)er mem+er /or t)ree 748 ,ears&

A''ointment to an, vacanc, s)all +e onl, /or t)e .nex'ired 'ortion o/ t)e term o/

t)e 'redecessor& In no case s)all an, mem+er +e a''ointed or desi*nated in a

tem'orar, or actin* ca'acit,& T)e c)airman and t)e mem+ers o/ t)e Board s)all +e

Fili'ino citi@ens- at least /ort, 7


49/68

emol.ments& T)e mem+ers o/ t)e Board s)all )ave t)e salar, *rade e:.ivalent to

t)e ran? o/ Director II .nder t)e "alar, "tandardi@ation La1 excl.sive o/

allo1ances and ot)er emol.ments& T)e Board s)all )ave a''ellate 3.risdiction over

all assessment cases decided +, t)e Local Board o/ Assessment A''eals&

T)ere s)all +e earin* O//icers to +e a''ointed +, t)e Central Board o/

Assessment A''eals '.rs.ant to civil service la1s- r.les and re*.lations- one eac)

/or L.@on- Visa,as and Mindanao- 1)o s)all )old o//ice in Manila- Ce+. Cit, and

Ca*a,an de Oro Cit,- res'ectivel,- and 1)o s)all serve /or a term o/ six 78 ,ears-

1it)o.t rea''ointment .ntil t)eir s.ccessors )ave +een a''ointed and :.ali/ied&

T)e earin* O//icers s)all )ave t)e same :.ali/ications as t)at o/ t)e H.d*es o/ t)e

M.nici'al Trial Co.rts&

T)e earin* O//icers s)all eac) )ave t)e salar, *rade e:.ivalent to t)e ran? o/

Director I .nder t)e "alar, "tandardi@ation La1 excl.sive o/ allo1ances and ot)eremol.ments& T)e earin* O//icers s)all tr, and receive evidences on t)e a''ealed

assessment cases as ma, +e directed +, t)e Board&

T)e Central Board Assessment A''eals- in t)e 'er/ormance o/ its 'o1ers and

d.ties- ma, esta+lis) and or*ani@e sta//s- o//ices- .nits- 'rescri+e t)e titles-

/.nctions and d.ties o/ t)eir mem+ers and ado't its o1n r.les and re*.lations&

nless ot)er1ise 'rovided +, la1- t)e ann.al a''ro'riations /or t)e Central Board

o/ Assessment A''eals s)all +e incl.ded in t)e +.d*et o/ t)e De'artment o/

Finance in t)e corres'ondin* General A''ro'riations Act&

"ECTION $4#& E//ect o/ A''eal on t)e !a,ment o/ Real !ro'ert, Tax& (

A''eal on assessments o/ real 'ro'ert, made .nder t)e 'rovisions o/ t)is Code

s)all- in no case- s.s'end t)e collection o/ t)e corres'ondin* realt, taxes on t)e

'ro'ert, involved as assessed +, t)e 'rovincial or cit, assessor- 1it)o.t 're3.dice

to s.+se:.ent ad3.stment de'endin* .'on t)e /inal o.tcome o/ t)e a''eal&

CA!TER IV Im'osition o/ Real !ro'ert, Tax

"ECTION $4$& !o1er to Lev, Real !ro'ert, Tax& ( A 'rovince or cit, or am.nici'alit, 1it)in t)e Metro'olitan Manila Area m, lev, an ann.al ad valorem

tax on real 'ro'ert, s.c) as land- +.ildin*- mac)iner,- and ot)er im'rovement not

)ereina/ter s'eci/icall, exem'ted&


50/68

"ECTION $44& Rates o/ Lev,& ( A 'rovince or cit, or a m.nici'alit, 1it)in

t)e Metro'olitan Manila Area s)all /ix a .ni/orm rate o/ +asic real 'ro'ert, tax

a''lica+le to t)eir res'ective localities as /ollo1s6

7a8 In t)e case o/ a 'rovince- at t)e rate not exceedin* one 'ercent 7#8 o/ t)e

assessed val.e o/ real 'ro'ert,9 and

7+8 In t)e case o/ a cit, or a m.nici'alit, 1it)in t)e Metro'olitan Manila Area-

at t)e rate not exceedin* t1o 'ercent 7$8 o/ t)e assessed val.e o/ real 'ro'ert,&

"ECTION $4


51/68

assessed val.e o/ real 'ro'ert, 1)ic) s)all +e in addition to t)e +asic real 'ro'ert,

tax& T)e 'roceeds t)ereo/ s)all excl.sivel, accr.e to t)e "'ecial Ed.cation F.nd

7"EF8&

"ECTION $4& Additional Ad Valorem Tax on Idle Lands& ( A 'rovince or

cit,- or a m.nici'alit, 1it)in t)e Metro'olitan Manila Area- ma, lev, an ann.al

tax on idle lands at t)e rate not exceedin* /ive 'ercent 78 o/ t)e assessed val.e

o/ t)e 'ro'ert, 1)ic) s)all +e in addition to t)e +asic real 'ro'ert, tax&

"ECTION $4& Idle Lands- Covera*e& ( For '.r'oses o/ real 'ro'ert,

taxation- idle lands s)all incl.de t)e /ollo1in*6 7a8 A*ric.lt.ral lands- more t)an

one 7#8 )ectare in area- s.ita+le /or c.ltivation- dair,in*- inland /is)er,- and ot)er

a*ric.lt.ral .ses- one0)al/ 7#$8 o/ 1)ic) remain .nc.ltivated or .nim'roved +,

t)e o1ner o/ t)e 'ro'ert, or 'erson )avin* le*al interest t)erein& A*ric.lt.ral lands

'lanted to 'ermanent or 'erennial cro's 1it) at least /i/t, 758 trees to a )ectares)all not +e considered idle lands& Lands act.all, .sed /or *ra@in* '.r'oses s)all

li?e1ise not +e considered idle lands&

7+8 Lands- ot)er t)an a*ric.lt.ral- located in a cit, or m.nici'alit,- more t)an

one t)o.sand 7#-5558 s:.are meters in area one0)al/ 7#$8 o/ 1)ic) remain

.n.tili@ed or .nim'roved +, t)e o1ner o/ t)e 'ro'ert, or 'erson )avin* le*al

interest t)erein&

Re*ardless o/ land area- t)is section s)all li?e1ise a''l, to residential lots in

s.+divisions d.l, a''roved +, 'ro'er a.t)orities- t)e o1ners)i' o/ 1)ic) )as +eentrans/erred to individ.al o1ners- 1)o s)all +e lia+le /or t)e additional tax6

!rovided- )o1ever- T)at individ.al lots o/ s.c) s.+divisions- t)e o1ners)i' o/

1)ic) )as not +een trans/erred to t)e +.,er s)all +e considered as 'art o/ t)e

s.+division- and s)all +e s.+3ect to t)e additional tax 'a,a+le +, s.+division o1ner

or o'erator&

"ECTION $4%& Idle Lands Exem't /rom Tax& ( A 'rovince or cit, or a

m.nici'alit, 1it)in t)e Metro'olitan Manila Area ma, exem't idle lands /rom t)e

additional lev, +, reason o/ /orce ma3e.re- civil dist.r+ance- nat.ral calamit, oran, ca.se or circ.mstance 1)ic) '),sicall, or le*all, 'revents t)e o1ner o/ t)e

'ro'ert, or 'erson )avin* le*al interest t)erein /rom im'rovin*- .tili@in* or

c.ltivatin* t)e same&

"ECTION $42& Listin* o/ Idle Lands +, t)e Assessor& ( T)e 'rovincial- cit, or

m.nici'al assessor s)all ma?e and ?ee' an .'dated record o/ all idle lands located


52/68

1it)in )is area o/ 3.risdiction& For '.r'oses o/ collection- t)e 'rovincial- cit, or

m.nici'al assessor s)all /.rnis) a co', t)ereo/ to t)e 'rovincial or cit, treas.rer

1)o s)all noti/,- on t)e +asis o/ s.c) record- t)e o1ner o/ t)e 'ro'ert, or 'erson

)avin* le*al interest t)erein o/ t)e im'osition o/ t)e additional tax&

"ECTION $


53/68

does not a''ear o/ record in )is +oo?s& 'on t)e e//ectivit, o/ t)e ordinance

im'osin* s'ecial lev,- t)e assessor concerned s)all /ort)1it) 'roceed to determine

t)e ann.al amo.nt o/ s'ecial lev, assessed a*ainst eac) 'arcel o/ land com'rised

1it)in t)e area es'eciall, +ene/ited and s)all send to eac) lando1ner a 1ritten

notice t)ereo/ +, mail- 'ersonal service or '.+lication in a''ro'riate cases&

"ECTION $


54/68

case o/ t)e +asic real 'ro'ert, tax and t)e additional tax /or t)e "'ecial Ed.cation

F.nd 7"EF8 or an, ot)er date to +e 'rescri+ed +, t)e san**.nian concerned in t)e

case o/ an, ot)er tax levied .nder t)is Title- 'ost t)e notice o/ t)e dates 1)en t)e

tax ma, +e 'aid 1it)o.t interest at a cons'ic.o.s and '.+licl, accessi+le 'lace at

t)e cit, or m.nici'al )all& "aid notice s)all li?e1ise +e '.+lis)ed in a ne1s'a'er o/*eneral circ.lation in t)e localit, once a 1ee? /or t1o 7$8 consec.tive 1ee?s&

"ECTION $5& !a,ment o/ Real !ro'ert, Taxes in Installments& ( T)e o1ner

o/ t)e real 'ro'ert, or t)e 'erson )avin* le*al interest t)erein ma, 'a, t)e +asic

real 'ro'ert, tax and t)e additional tax /or "'ecial Ed.cation F.nd 7"EF8 d.e

t)ereon 1it)o.t interest in /o.r 7


55/68

7c8 In t)e event t)at t)e 'rotest is /inall, decided in /avor o/ t)e tax'a,er- t)e

amo.nt or 'ortion o/ t)e tax 'rotested s)all +e re/.nded to t)e 'rotestant- or

a''lied as tax credit a*ainst )is existin* or /.t.re tax lia+ilit,&

7d8 In t)e event t)at t)e 'rotest is denied or .'on t)e la'se o/ t)e sixt,0da,

'eriod 'rescri+ed in s.+'ara*ra') 7a8- t)e tax'a,er ma, avail o/ t)e remedies as

'rovided /or in C)a'ter 4- Title II- Boo? II o/ t)is Code&

"ECTION $4& Re'a,ment o/ Excessive Collections& ( =)en an assessment

o/ +asic real 'ro'ert, tax- or an, ot)er tax levied .nder t)is Title- is /o.nd to +e

ille*al or erroneo.s and t)e tax is accordin*l, red.ced or ad3.sted- t)e tax'a,er

ma, /ile a 1ritten claim /or re/.nd or credit /or taxes and interests 1it) t)e

'rovincial or cit, treas.rer 1it)in t1o 7$8 ,ears /rom t)e date t)e tax'a,er is

entitled to s.c) red.ction or ad3.stment&

T)e 'rovincial or cit, treas.rer s)all decide t)e claim /or tax re/.nd or credit

1it)in sixt, 758 da,s /rom recei't t)ereo/& In case t)e claim /or tax re/.nd or

credit is denied- t)e tax'a,er ma, avail o/ t)e remedies as 'rovided in C)a'ter 4-

Title II- Boo? II o/ t)is Code&

"ECTION $


56/68

or an, 'erson )avin* le*al interest t)erein to redeem t)e 'ro'ert, 1it)in one 7#8

,ear /rom t)e date o/ sale&

"ECTION $& Interests on n'aid Real !ro'ert, Tax& ( In case o/ /ail.re to

'a, t)e +asic real 'ro'ert, tax or an, ot)er tax levied .nder t)is Title .'on t)e

ex'iration o/ t)e 'eriods as 'rovided in "ection $5- or 1)en d.e- as t)e case ma,

+e- s)all s.+3ect t)e tax'a,er to t)e 'a,ment o/ interest at t)e rate o/ t1o 'ercent

7$8 'er mont) on t)e .n'aid amo.nt or a /raction t)ereo/- .ntil t)e delin:.ent tax

s)all )ave +een /.ll, 'aid6 !rovided- )o1ever- T)at in no case s)all t)e total

interest on t)e .n'aid tax or 'ortion t)ereo/ exceed t)irt,0six 748 mont)s&

"ECTION $& Remedies /or t)e Collection o/ Real !ro'ert, Tax& ( For t)e

collection o/ t)e +asic real 'ro'ert, tax and an, ot)er tax levied .nder t)is Title-

t)e local *overnment .nit concerned ma, avail o/ t)e remedies +, administrative

action t)ro.*) lev, on real 'ro'ert, or +, 3.dicial action&

"ECTION $& Local Government;s Lien& ( T)e +asic real 'ro'ert, tax and

an, ot)er tax levied .nder t)is Title constit.te a lien on t)e 'ro'ert, s.+3ect to tax-

s.'erior to all liens-

Ra 7160 Lgu Taxation

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