HISTORICAL PERSPECTIVES NOMADIC STATE EARLY MAN WAS NOMADIC, HAD NO CONCEPT OF REAL PROPERTY OR REAL ESTATE. ROAMING BANDS FOLLOWED GAME AND THE SEASONS IN ORDER TO SURVIVE. CLAIM FOR AN EXCLUSIVE USE OF AN AREA WAS REDUNDANT. THE GROUP HAD TO MOVE OUT ONCE SUSTENANCE IN AN AREA IS DEPLETED.
EARLY AGRICULTURAL STAGE MAN DISCOVERED THAT CULTIVATING CROPS AND DOMESTICATING ANIMALS WERE BETTER ALTERNATIVES. THAT ENTAILED DRASTIC CHANGE OF LIFESTYLE. IT MEANT STAYING PUT IN A PLACE UNTIL HARVEST TIME. EXCESS PRODUCE OVER IMMEDIATE NEEDS COULD THE STORED. THE CONCEPT OF AN EXCLUSIVE RIGHT (THE EXCLUSION OF OTHERS) BECAME VERY IMPORTANT. THIS RIGHT WAS CLAIMED FOR THE TRIBE AS A WHOLE. EACH FAMILY IN THE TRIBE WAS GIVEN THE RIGHT TO THE EXCLUSIVE USE OF A PORTION OF THE TRIBE’S LAND. EACH FAMILY, IN TURN, HAD THE DUTY TO AID IN DEFENDING THE TRIBE’S CLAIM AGAINST OTHER TRIBES.
RISE OF POLITICAL STATES INDIVIDUAL TRIBES LATER ALLIED WITH EACH OTHER FOR MUTUAL PROTECTION. “IN NUMBER THERE IS STRENGTH.” THESE ALLIANCES GAVE RISE TO POLITICAL STATES. IN THE PROCESS, LAND OWNERSHIP BELONG TO THE HEAD OF THE STATE, USUALLY CALLED A KING.
FEUDAL SYSTEM THE KING, IN TURN, GAVE THE RIGHT TO USE LARGE TRACTS OF LANDS (CALLED A FEUD) TO SELECT INDIVIDUALS (CALLED THE LORDS). THE LORDS DID NOT RECEIVE OWNERSHIP. THEY WERE SIMPLY TENANTS OF THE KING. THEY WERE REQUIRED TO SERVE AND PAY DUTIES TO THE KIND, TO HELP FIGHT THE KING’S WAR. IT WAS CUSTOMARY FOR THE LORDS TO REMAIN TENANTS FOR LIFE, CONDITIONED ON THE DEFEAT OF THEIR KING BY ANOTHER MONARCH. THIS SYSTEM WHERE ALL OWNERSHIP WAS VESTED IN THE NAME OF THE KING BECAME KNOWN AS THE FEUDAL SYSTEM. THIS GAVE RISE TO THE SO-CALLED “DIVINE RIGHTS OF THE KINGS” WHICH WAS INVOKED BY THE MONARCHS. THE LORDS WHO CONTROLLED LARGE TRACTS OF LAND GAVE THEIR SUBJECTS THE RIGH TO USE SMALL TRACTS OF LAND. THESE SUBJECTS OWED THEIR LORDS A SHARE OF THEIR CROPS AND ALLEGIANCE IN TIME OF WAR. THIS IS THE ONSET OF THE TENANCY SYSTEM.
THE SUBJECTS WERE CALLED VASSALS. THEY WERE IN EFFECT TENANTS OF THE LORDS AND SUB-TENANTS OF THE KING. JUST LIKE THE LORDS, THE VASSALS COULD NOT SELL THEIR RIGHTS NOR PASS THEM ON TO THEIR HEIRS. THE FEUDAL SYSTEM HELD SWAY FOR A LONG TIME. A MAJOR CHANGE TOOK PLACE IN 1285 WHEN KING EDWARD 1 OF ENGLAND GAVE HIS LORDS THE RIGHT TO PASS THEIR TENANCY RIGHTS TO THEIR HEIRS. SUBSEQUENTLY, TENANT VASSALS WERE PERMITTED TO CONVEY THEIR TENANCY RIGHTS TO OTHERS (NOT THEIR HEIRS). BY 1650, THE FEUDAL SYSTEM HAD COME TO AN END IN ENGLAND. IN FRANCE, IT ENDED WITH THE FRENCH REVOLUTION IN 1789.
THE ALLODIAL SYSTEM UNDER THE ALLODIAL SYSTEM, INDIVIDUALS WERE GIVEN THE RIGHT TO OWN LAND. INITIALLY, LORDS BECAME THE OWNERS AND THE PEASANTS REMAINED AS TENANTS OF THE LORDS. AS TIME PASSED, THE TENANTS THEMSELVE BECAUSE LANDOWNERS EITHER BY PURCHASE OR BY GIFTS FROM THE LORDS.
GOVERNMENT RIGHTS IN LAND UNDER THE FEUDAL SUSTEM, THE KING WAS RESPONSIBLE FOR ORGANIZING DEFENSE AGAINST INVADERS, MAKING DECISIONS ON LAND USE, PROVIDING SUCH SERVICES AS ROADS AND BRIDGES. IN SHORT, THE KING EXERCISE POWER OF GENERAL ADMINISTRATION OF THE LAND AND HIS SUBJECTS. THE TRANSITION FROM FEUDAL TO ALLODIAL SYSTEM COULD NOT DO AWAY WITH THE NEED FOR THE SERVICES THEN PROVIDED BY THE KING. EVEN THOUGH OWNERSHIP COULD BE HELD BY PRIVATE PERSONS, IT BECAME NECESSARY FOR THE GOVERNMENT TO RETAIN THE RIGHTS OF TAXATION, EMINENT DOMAIN, POLICE POWER AND ESCHEAT. THESE POWERS HAD NOT ONLY ENDURED TO THIS DAY BUT BECAME COMPLICATED AND BUREAUCRATIC.
CONCEPT OF THE LAND LAND LAND ENCOMPASSES: THE SURFACE OF THE EARTH: THE GROUND THE SUB-SURFACE OF THE EARTH: THE GROUND BELOW WHAT IS ABOVE THE GROUND: AIR SPACE
CHARACTERISTICS OF THE LAND LAND HAS TWO DISTINGUISHING CHARACTERISTICS WHICH ARE UNDERLYING CONSIDERATIONS IN BROKERING IN REAL ESTATE: 1. PHYSICAL CHARACTERISTICS 2. ECONOMIC CHARACTERISTICS 3. SOCIAL CHARACTERISTICS
LAND AND REAL ESTATE
PHYSICAL CHARACTERISTICS (Part of Real Estate Economics) 1. IMMOBILITY 2. INDESTRUCTIBILITY 3. NON-HOMOGENEITY 1.
LAND IS IMMOVABLE
- LAND IS FIXED IN PLACE, IMMOBILE. A PARCEL OF LAND RETAINS ITS VERY SAME GEOGRAPHICAL POSITION IN THE GLOBE. THE SOIL, SAND, GRAVEL AND MINERALS MAY BE MOVED BY ACTIONS OF NATURE (EROSION, NATURAL CALAMITIES), OR, OF MAN (DIGGING, QUARRYING) BUT THE SAME PARCEL OF LAND IS FIXED IN PLACE.
SINCE LAND IS IMMOBILE, A PERSON MUST GO TO THE LAND. WHEN LAND IS SOLD, THE SELLER CANNOT PHYSICALLY DELIVER THE LAND TO THE BUYER. INSTEAD, THE SELLER GIVES THE BUYER A DOCUMENT CALLED A DEED THAT TRANSFERS TO THE BUYER THE RIGHT TO POSSESS AND USE THE LAND. HENCE, LOCATION, THE NATURE OF DEVELOPMENT OR IMPROVEMENT TO BE INTRODUCED RELATIVE TO THE PROJECTED USE AND TO THE PROSPECTIVE USERS ARE IMPORTANT.
LAND IS INDESTRUCTIBLE
2.
- LAND IS DURABLE. ITS PHYSICAL CHARACTERISTICS MAY CHANGE, SOIL LOST BY EROSION, ITS SURFACE SCRAPED, BUT THE LAND ITSELF DOES NOT CEASE TO EXIST. TODAY, ONE CAN WALK ON THE LAND THAT JESUS CHRIST TROD ON IN HIS TIME. “UNDERNEATH ALL IS THE LAND” IS A BASIC CONCEPT IN REAL ESTATE. THE CHARACTERISTIC OF INDESTRUCTIBILITY, OF PHYSICAL DURABILITY, IS AN ATTRACTION FOR MANY TO INVEST IN REAL ESTATE BECAUSE STOCKS AND BONDS MY GO BUT LAND WILL ALWAYS BE THERE.
3.
LAND IS NON-HOMOGENOUS
- THIS MEANS THAT NO TWO PARCELS OF LAND ARE EXACTLY ALIKE BECAUSE NO TWO PARCELS OF LAND CAN OCCUPY THE SAME POSITION IN THE GLOBE AT THE SAME TIMDE. COURTS OF LAW RECOGNIZE THIS CHARACTERISTICS AND TREAT LAND AS A “NON-FUNGIBLE” COMMODITY. THAT IS, IT IS NON-SUBSTITUTABLE. THIS IS THE PRINCIPLE BEHIND THE DOCTRINE OF “SPECIFIC PERFORMANCE” IN DELIVERY OF LAND SUBJECT OF TRANSACTION WHERE SUBSTITUTION OF ANOTHER PARCEL OF THE SAME SIZE AND DIMENSIONS IS NOT ALLOWED.
ECONOMIC CHARACTERISTICS OF LAND 1. SCARCITY 2. FIXITY OR PERMANENCE OF INVESTMENT 3. LOCATION AND AREA PREFERENCE 4. HIGHEST AND BEST USE THE DISTINCTION BETWEEN THE PHYSICAL AND ECONOMIC CHARACTERISTICS OF LAND IS OFTEN DIFFICULT TO DEFINE. THE PHYSICAL CHARACTERISTICS OF LAND GREATLY INFLUENCE MAN’S ECONOMIC ATTITUDE TOWARD LAND. 1. SCARCITY - A MAN-MADE CHARACTERISTIC. IT IS GIVEN RISE BY THE DISPARITY BETWEEN THE AVAILABLE SUPPLY AGAINST THE DEMAND. THERE IS ONLY A FINITE QUANTITY OF LAND AVAILABLE IN THE WHOLE WORLD WHILE POPULATION CONTINUES TO INCREASE UNRELENTLESSLY. MARK TWAIN SUMMED IT ALL UP: “THEY AIN’T MAKIN’ ANY MORE LAND.” THE INHABITANTS OF THE LAND GROW.
MIGRATION WAS FROM RURAL AREAS TO METROPOLITAN CENTERS WHERE FACTORIES AND MARKET CENTERS. TO ACCOMMODATE MORE WORKERS NEAR THEIR PLACE OF WORK, THE PREFERRED WAY WAS TO GO VERTICALLY. i.e., HONGKONG.THIS WAS REVERSED WITH THE ESCAPE FROM THE CONGESTION AND OF THE URBAN CENTERS BACK TO THE COUNTRY SIDE.
ECONOMIC CHARACTERISTICS Cont’d 2. FIXITY OR PERMANENCE OF INVESTMENT -
BUILDINGS AND OTHER IMPROVEMENTS TO THE LAND TAKE LONG PERIODS OF TIME TO PAY FOR THEMSELVES. THERE IS NO ECONOMIC LOGIC IN PURCHASING LAND AND INTRODUCING IMPROVEMENTS THAT WILL TAKE SAY 20 TO 25 YEARS TO RECOVER THE INVESTMENT WHILE THEIR USEFUL LIFE IS ONLY FOR 10 OR 15 YEARS AT MOST. INVESTMENT IN REAL ESTATE IS REGARDED AS A FIXED OR A SUNK COST. FIXITY OF THE LAND REFLECTS THE FACT THAT LAND OR PERMANENT IMPROVEMENTS THEREON CANNOT BE MOVED FROM ITS PRESENT LOCATION TO ANOTHER SITE WHERE IT WILL BE MORE VALUABLE. MAYBE A HOUSE CAN BE MOVED TO ANOTHER LOCATION. BUT THE COST OF DOING SO, OF REPAIRING DAMAGE IN TRANSIT AND PUTTING UP A FOUNDATION AT THE NEW SITE CAN EASILY EXCEED THE VALUE OF THE HOUSE AFTER THE MOVE.
ECONOMIC CHARACTERISTIC Cont’d 3. LOCATION AND AREA PREFERENCE - THE SINGLE MOST IMPORTANT FACTOR IN REAL ESTATE IS, FIRST, LOCATION; SECOND, LOCATION; AND, THIRD, LOCATION. WHAT THIS MEAN IS THE PREFERENCE OF PEOPLE FOR A GIVEN AREA OVER ANOTHER. PREFERENCES ARE THE RESULT OF SUCH CONSIDERATION AS GOOD NEIGHBORHOOD, PEACE AND ORDER, GOOD UTILITIES AND AMENITIES, ACCESSIBILITY TO MEDICAL SERVICES, SHOPPING CENTERS AND PLACE OF EMPLOYMENT, GOOD PUBLIC TRANSPORTATION.
MODIFICATION: SINCE LAND IS IMMOVABLE, MAN MUST GO TO THE LAND AND NOT THE OTHER WAY ROUND. LAND USE AND VALUE ARE GREATLY INFLUENCED BY MODIFICATION. THIS REFERS TO IMPROVEMENTS MADE BY MAN ON SURROUNDING PARCELS OF LAND. EXAMPLE. AN AIRPORT WILL INCREASE THE VALUE AND USEFULNESS OF THE LAND PARALLEL TO THE RUNWAYS BUT WILL HAVE NEGATIVE EFFECTS ON LAND AT BOTH ENDS OF THE RUNWAY BECAUSE OF NOISE, IF NOT DANAGER FROM LANDINGS AND TAKEOFFS OF AIRCRAFTS.
4. HIGHEST
AND BEST USE
- THIS IS A DETERMINANT CONCEPT
IN REAL ESTATE. HIGHEST AND BEST USE MEANS THAT THERE IS AN OPTIMUM USE OF LAND THAT WILL PRODUCE THE LARGEST POSSIBLE RETURN ON INVESTMENT OVER A SET PERIOD TIME. IT IS
GUNS AND BUTTER THEORY
- A THEORY THAT THE VAST
MAJORITY OF US HAVE LIMITED SOURCE OF INCOME. WE CAN SPEND OUR MONEY ON CAPITAL GOODS SUCH AS REAL ESTATE, MACHINERY, STOCKS AND BONDS THAT TEND TO APPRECIATE IN VALUE OVER TIME. THESE ARE THE SO-CALLED “GUNS” OR DURABLES WHICH PROVIDE SECURITY AS INVESTMENT.OR, WE MAY OPT FOR CONSUMER GOODS LIKE TV SETS, STEREO, CD/DVD PLAYERS, PLAY STATIONS, ITEMS OF LEISURE AND COMFORT THAT DEPRECIATE AND LOSE VALUE OVER A GIVEN PERIOD. THESE ARE THE “BUTTER” (THAT MELTS) OR PERISHABLES. THIS THEORY IS AN INVESTMENT APPROACH, A CHOICE BETWEEN DURABLES AND PERISHABLES.
CONCEPT OF REAL PROPERTY
SOCIAL CHARACTERISTICS OF REAL ESTATE Basic Principle: PRIVATE OWNERSHIP OF REAL ESTATE IS VESTED WITH PUBLIC INTEREST Underlying concepts: 1. Sic utere tuo ut alienum non laedas: So use your own property in such a manner as not to injure that of another, 2. Prior tempore, potrio jure, First in time, stronger in law. 3. Social acceptability. 4. Over-riding right of the State over private ownership.
SOCIAL CHARACTERISTICS OF REAL ESTATE 1. STEWARDSHIP CONCEPT OF OWNERSHIP 2. SOCIAL CHARACTERISTICS OF PRIVATE OWNERSHIP THE EXERCISE OF PROPERTY RIGHTS OF ONE OWNER MUST BE TEMPERED WITH RESTRAINT OR LIABILITY FOR HARM CAUSED, SO AS TO BE ATTUNED WITH THE COMPARABLE RIGHTS OF ANY VALUE IN HIS NEIGHBORS’. “. . . TO PERMIT ANYONE TO DO ABSOLUTELY WHAT HE LIKES WITH HIS PROPERTY IN CREATING NOISE, SMELLS, OR DANGER OF FIRE, WOULD BE TO MAKE PROPERTY IN GENERAL VALUELESS. TO BE REALLY EFFECTIVE, THEREFORE, THE RIGHT OF PROPERTY OWNER MUST BE SUPPORTED BY RESTRICTIONS OR POSITIVE DUTIES ON THE PART OF THE OWNERS, ENFORCED BY THE STATE AS MUCH AS THE RIGHT TO EXCLUDE OTHERS.”
PRACTICES IN THE COLLECTION OF REAL PROPERTY TAXES (CHAP. 6, R.A. 7160)
Sec 246. Date of Accrual of Real Property Tax accrue on the first (1st) day of January constitute alien on the property which shall be superior to any other lien, mortgage or encumbrance extinguished only upon the payment of the delinquent tax.
Sec 247. Collection of Tax responsibility concerned.
of the
city or municipal treasurer
city or municipal treasurer may deputize the barangay treasurer to collect on real property taxes located in the barangay; provided, barangay treasurer is properly bonded premium on the bond shall be paid by the city or municipal government .
Sec 248. Assessor to Furnish Local Treasurer with Assessment Roll provincial, city or municipal assessor prepares and submit to the local treasurer on or before the thirty-first (31st) day of December each year, an assessment roll a list of all persons whose real properties have been newly assessed or reassessed and the values such properties.
Sec 249. Notice of Time for Collection of Tax city or municipal treasurer shall, on or before the thirty-first (31st) day of January each year: post the notice of the dates when the tax may be paid without interest at a conspicuous and publicly accessible place publish in a newspaper of general circulation in the locality once a week for two (2) consecutive weeks.
Sec 250. Payment of Real Property Taxes in Installments owner of the real property may pay the basic real property tax and additional tax for the SEF due without interest in four (4) equal installments: first installments - thirty-first (31) day of March; second installment - thirtieth (30th) of June; third installment - thirtieth (30th) of the September;
4th installment - thirty-first (31st) of December; special levy the payment of which shall be governed by ofreal the sanggunian concerned. ordinance Payment of property taxes shall first be applied prior years delinquencies, interest, and penalties,
Sec 251. Tax Discount for Advanced Prompt Payment Advance payment sanggunian concerned may grant a discount not exceeding twenty percent (20%) of the annual tax due.
Sec 252. Payment Under Protest No protest shall be entertained unless taxpayer first pays the tax. protest in writing must be filed within thirty (30) days from payment of the tax to the provincial, city treasurer or municipal treasurer, treasurer shall decide the protest within sixty (60) days from receipt. tax or a portion paid under protest shall be held in trust by the treasurer within sixty (60) days from receipt.
 If protest is finally decided in favor of the taxpayer, the amount or portion of the tax protested shall be refunded or applied as tax credit.  If protest is denied or upon the lapse of the sixty day period, tax payer may avail of the remedies as provided in R.A. 7160.
Sec 253. Repayment of Excessive Collections If assessment is illegal or erroneous and the tax is accordingly reduced or adjusted, taxpayer may file a written claim for refund or credit for taxes and interest with the provincial or city treasurer within two (2) years from the date the taxpayer is entitled to such reduction or adjustment. provincial or city treasurer decide the claim for tax refund or credit within sixty (60) days from receipt. In case the claim for tax refund or credit is denied, taxpayer may avail of the remedies.
Sec 254. Notice of Delinquency in the Payment of the Real Property Tax When the real property tax becomes delinquent, the provincial, city or municipal treasurer shall cause a notice of the delinquency posted at the main entrance of the provincial capitol, or city or municipal publicly accessible and conspicuous place in each barangay of the local government unit. published in a newspaper of general circulation in the locality mailed/delivered to the delinquent taxpayers
personal property payment.
may be distrained to effect
the delinquent real property will be sold at public auction, right of the delinquent owner to redeem the property within one (1) years from the date of sale.
Sec 255. Interest on Unpaid Real Property Tax Interest - two percent (2%) per month on the unpaid amount or a fraction thereof total interest on the unpaid tax or portion thereof not to exceed thirty-six (36) months or 72%.
Sec 256. Remedies for the Collection of Real Property Tax administrative action judicial action.
Sec 258. Levy on Real Property issuance of the warrant on or before, or simultaneously with the institution of the civil action levying officer shall submit a report to the sanggunian concerned within ten (10) days after receipt of the warrant by the owner of the property or person having legal interest therein.
Sec 259. Penalty for Failure to Issue Execute Warrant local treasurer or his deputy who fails to issue or execute the warrant of levy within one(1) year from the time the tax becomes delinquent or within thirty (3) days from the date of the issuance thereof, shall be dismissed from the service.
Sec 260. Advertisement and Sale Within thirty days (30) days after service of the warrant of levy, the local treasurer shall proceed publicly advertise for sale or auction the property or a useable portion thereof posting a notice a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in
 publication once a week for two (2) weeks in a news paper of general  mail/delivered to the delinquent taxpayers  At any time before the sale, the owner of the real property or person having legal interest therein may stay the proceeding by paying delinquent tax, sale shall be held either at the man entrance of the provincial, city municipal building, or on the property to be sold, or at any other place as specified in the notice of sale.
Sec. 261 Redemption of Property Sold ďƒź Within one (1) year of the date of the sale, the owner the delinquent real property, shall have the right to redeem the property upon payment of the local treasurer of the amount of the delinquent tax, including interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption.
ďƒź From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain the possession of the owner or person having legal interest therein. ďƒź The local treasurer shall for with return to the owner the entire amount paid by him plus interest of not more than two (2%) percent per month.
Sec. 262. Final Deed to the Purchaser ďƒź In case the fails to redeem the delinquent property, the local treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale.
Sec 263. Purchase of Property by the Local Government Units for Want of Bidder ďƒź In case there is no bidder, highest bid is for an amount insufficient to pay the real property tax and the related interest and cost of sale the local treasurer conducting the sale shall purchase the property in behalf of the local government unit
duty of the Register of Deeds concerned, upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court. Within one (1) year from the date of such forfeiture, may redeem the property by paying the local treasurer the full amount of the real property tax and the related interest and the cost of sale.
Sec 264. Resale of Real Estate Taken for Taxes, Fees, or Charges The sanggunian may by ordinance duly approved and upon notice of not less than twenty (20) days, sell and dispose of the real property acquired.
Sec 266. Collection of real Property tax Through The Courts ďƒź local government unit may enforce the collection by civil action in any court of competent jurisdiction.
Sec 267.
Action Assailing Validity of Tax sale
ďƒź No court shall entertain any action assailing the validity of any sale at public auction of real property until the taxpayer shall have deposited wit the court the amount for which the real property was sold, together with interest of two percent (2%) per month from the date of sale to the time of the institution of the action.
Sec 269. To Certify Delinquencies Remaining Uncollected. ďƒź Local treasurer of his deputy shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year,  submit the same o the sanggunian on or before the thirty-first (31st) of December.
Sec 270. Periods Within Which to Collect Real Property Taxes collected within five (5) years from the date they become due. No action for the collection of the tax, whether administrative or judicial, shall be instituted after the expiration of such period. period of prescription to collect shall be when: 1. The local treasurer is legally prevented from collecting the tax; 2. The owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; and 3. The owner of the property of the person having legal interest therein is out of the country or otherwise cannot be located.
Sec . 271 Distribution of Proceeds a)INCASE OF PROVINCES: 1. Province - Thirty-five (35%); 2. Municipality – Forty percent (40%); 3. Barangay -Twenty – five percent (25%) b)IN CASE OF CITIES: 1. City- Seventy Percent (70 2. Barangay - Thirty percent (30) i. Fifty percent (50%) shall barangay where the property is located. ii. Fifty percent (50%) accrue equally to all component barangays of the city.
c) municipality within the Metropolitan Manila Area: 1)Metropolitan Manila Authority – Thirty-five percent ( 35%); 2)Municipality- Thirty-five percent (35%); 3)Barangays - Thirty percent (30%) : i. Fifty percent (50%) barangay where the property is located; ii. Fifty percent (50%) component barangays.
Sec . 272. Application of Proceeds of the Additional One Percent SEF Tax ďƒź one percent (1%) tax on real property accruing to the SEF released to the local schools boards;
Sec . 273. Proceeds of the Tax on the Idle Lands ďƒź accrue to the general fund of the province or city
Sec . 274. Proceeds of the Special Levy ďƒź proceeds of the special levy on lands benefited by public works, projects accrue to the general fund of the local government.
CHAPTER 8. Special Provisions Sec . 275. General Assessment Revision; Expenses Incident There to All expenses incident to a general revision of real property assessment shall, by ordinance of the sangguniang panlalawigan, apportioned between the province and the municipality on the basis of the taxable areas of the municipality concerned.
Sec . 276. Condonation or Reduction of Tax and Interest general failure of crops substantial decrease in the price of agricultural or agribased products, or calamity in any province, city, or municipality, the sanggunian, by ordinance passed prior to the first (1st) day of January of any year and upon recommendation of the Local disaster Coordinating Council,
Sec 277. Condonation or Reduction of Tax by the President of the Philippines ďƒź when public interest so requires, condone or reduce the real property tax and interests within the Metropolitan Manila Area.
Sec 278. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial, City or Municipal Assessor ďƒź duty of the Registrar of Deeds and notaries public to furnish the provincial, city or municipal assessor with copies of all contracts selling, transferring, or otherwise conveying, leasing or mortgaging real property.
Sec 279. Insurance Companies to Furnish Information ďƒź Insurance companies are required to furnish the provincial, city or municipal assessor copies of any contract or policy insurance on buildings, structures and improvements insured by them.
Sec 280. Fees in Court Actions ďƒź All court actions, criminal or civil, instituted of the provincial, city or municipal treasurer or assessment, shall be exempt from the payment of court and sheriff's fees.
Sec 281. Fees in Registration of Papers or Documents on Sale of Delinquent Real Property to Province, City or Municipality exempt from the documentary stamp tax and registration fees.
Sec 282. Real Property Assessment Notices or Owner’s Copies of Tax Declarations to be Exempt from Postal Charges or Fees All real property assessment notices or owner’s copies of tax declaration sent trough the mails by the assessor exempt from the payment of postal charges or fees.
Real Property Taxation Practices Formulas for the Computation of Real Property Taxes: 1.Basic Tax (BT) = Annual Tax Due (ATD) x Basic Tax Rate (Province-1%, Cities-not more than 2%) 2.Special Education Fund (SEF) = ATD x 1% 3.Annual Tax Due (ATD) = Basic Tax (BT) + SEF 4.Quarterly Tax Due (QTD) = Annual Tax Due/4 qtrs. 5.Discount (Prompt Payment) = ATD x 10% 6.Discount (Advance Payment) = ATD x 20% Note: discount may be less than 20% depending on the provision of the LGU’s enabling ordinance 7. Annual Tax Due (Prompt Payment) = ATD – 10% discount 8. Annual Tax Due (Advance Payment) = ATD – 20% discount
Computation of Current Year Real Property Taxes Formula: Annual Tax Due = Basic Tax + SEF
A. Given: Compute the realty tax due for the Current year 2015, if payment is made on or before March 31, 2015 and if the LGU enabling ordinance provides for a 1 % basic tax rate, 10% discount for prompt payment and 20% discount for advance payments compute for: 1. Basic Tax Assessed Value P 600,000.00 x 1% (Basic P 6,000.00 2. Special Education Fund P 600,000.00 x 1% (SEF) P 6,000.00
3. Annual Tax Due (ATD) P 6,000.00 (Basic) + P 6,000.00 (SEF) = P 12,000.00 4. Quarterly Tax Due (QTD) P 12,000.00 ÷ 4 qtrs. = P 3,000.00 5. Discount Prompt Payment P 12,000.00 x 10% discount = P 1,200.00 6. Discount Advance Payment (2016 RPT Tax Due) P 12,000.00 x 20% discount = P 2,400.00 7. Annual Tax Due (Prompt Payment) P 12,000 – P 1,200 = P 10,800.00 8. Annual Tax Due (Advance Payment-2016) P 12,000 – P 2,400.00 = P 9,600.00
Assessment Value P600,000.00 GIVEN: C. Compute the realty tax due for the current year if paid on April 8, 2015. (Please see table of penalties). Total Tax Due 12,000.00 รท 4 Qtrs. To get quarterly dues Basic Pen. SEF Pen. Tax Due 2015 (1st Qtr) 1,500.00 120.00 1,500.00 120.00
Total 3,240.00
2015 (2nd Qtr)
1,500.00
(150.00)
1,500.00 (150.00)
2,700.00
2015 (3rd Qtr)
1,500.00
(150.00)
1,500.00 (150.00)
2,700.00
2015(4th Qtr.)
1,500.00
(150.00)
1,500.00 (150.00)
2,700.00 P11,340.00
Computation
Given: compute the penalty and realty tax due for 2013 up to the current year 2015, if paid on April 8,2015.. Assessed Value P600,000 P600,000 X 1% (Basic) x 1% (SEF) P6,000.00 P6,000.00 x 56% Penalty Rate x 56% Penalty Rate P3,360.00 (Penalty) P3,360.00 (Penalty) + P6,000.00 (Basic) + P6,000.00 (SEF) P 9,360.00 P 9,360.00 Total Tax Due: P18,720.00 – annual realty tax due
2013 = P6,000 + P6,000 = P12,000 (x56%)=P6720
P12,000 + P6720 = P18,720.00 2014 = P6,000 + P6,000 = P12,000 (x30%)= P3600
P12,000 + P3840 = P15,840.00 2015 = P6,000 + P6,000 = P12,000 (x10% discount)= P1200 P12,000 (-) P1200 = P11,340.00 Total : 2013 = P18,720.00 2014 = P15,840.00 2015 = P11,340.00 P45,900.00