A Study of Philippine Real Property Taxation

REAL_

TAXATI_INTHEPHILIPPI_: IgSJES A_}_ DI_"TI@_

PAPER SERIES No째 84-01

REAL PROPERTY TAXATION IN THE PHI_XPPINES: ISSUES AND RESEARCH DIRECTI01_

"x. n_m_wzcs

The role of local governments the |Eovislon

of public

1N_aXS as pOl_=_s of

looally

this

_s

l_amznity

a_l

zaising

DeveloJ_ment

__4_e_

_

_

aticm, 11_evez,

to

F_es

As a re_It

it was poeslhle

percent

with

p_r yeaE.

a m_Y

Chose

_enfold

local go_eznment

in current only

expenditures

_ituEes.

soon

and

afte=

the

increasedexpecC-

funds

of resC_u_es

of "the national and _ore

gov_nt

of Eesources

and expendi_es.

for local q_vernment

effi_len_

eRpe_dit_es

of 25 perc_t

central terms,

fivefold.

of

Yea_

of new taxes

while

£uSt_atton

in the iEovlslon by %Et_al

effeatlvlty

GoveznBents

ZnmpLta_f this

at an average

T_s,

the

/_

_

fig_a_e for all local gover_nts

their expend_es

_-t

of

in Recent

foe Rational

to In_rease

multiplied

level

of

of the deficiency

e_penaitures

_rzesp_nding

the

as indicated

An indication

pesos)

Depa=ment

there has been a _

Local Gove_

in Table l.

the

ep _= Ig7_

to local _v_nts

_ve_t

pzo_ec_cs.

and

in re,eat

_eco_l/se_

_apla_nted

cf

develo_men_

has beeB highlig_

_:easL'_ly

have

designed the

services

in e_onomL¢

(in curEe_t

m_s o_ly

The 16 1/2

expenditures

local c_verm_ents

was

increased

And this was on a base where

was less than one-fifth

In per capita

sho_

¢olle_t_on,

per year.

_overnment

is

tezms, while

of total the national

Table

_' -

'

.'i

....

i

,

,

•

.,.,

_'_ "

, •

, ,

_

- cen_l

.: T_tal_LocaZ

share of To_l C_tral

Cemkral_Cov_raent

....Gov_rn_ant EXPe_t_esi_.

_,

and

._Gram_a t_ '_LOa_ Go_er._lerri:$

1969_

_,6zi

1971 1973 .

1975 _ 1977 1978 1979 a

4,429 7,041 20,168 23,600 27,110 34,380 ....

t_

GOVe_t E_r_1_tures

Average a_n_al Percent Change Between 1959 and 1978

_0.7 21. ! .18.81 10.2 11.9 tl. 0 10.3

16,5 ._

<

"n

_i'

,.

35.1_..

n

Local __uru _(in ILe_)_

_ 1,033 1,465 _ 2,'202 2,914 3,23?

3,781

it-

n

1

IU

_

km

.

,

,

,

Grantsas a Pez_nt Government

_4_o

of Local EXl:_Uditures

_,_

558 ?00 863 1,009 _ 1,049 1,474

54.0 4?.8 39.1 34.6 32,4 39.0

_-.,

-

,

'

-

8.8

_,

_ ........

,

%,t_tes. ,

__

sources, _dge_ o_ c_ _ionaz

.,-

_ve_

_or _iscal _ear_.zgeg-75,_ldent':_

_

_e_

_,,e_,.

_zonear

._ 1976-79p _i_:F.on on Aud£t Report'S on Local G__ (19_9-_L), _t£n£st_y of Fi_aance,_ (1972-1979) as reported :in Daniel Holland, Michael Was¥1enko and Rolr ]_d., "An Evaluation o£ the Peal Property Tax Administration Project," Local P_,enue _]mtnistration Pro_eot, the Maxweli School, (Syracuse, NYs Syzacuse Unlve_sity, Ootober _, 1980), Table 3, p. 16.

From:

Bahl

and

Miller

(1983),

p.

4. _J

government

has been able to maintain

_overnments

have suffered

l'he

the

Role

of

Real

TO reverse

•nder

its

c_n_l.

the observed

1/

aat_onal allotments 2he reverse

an erosion

Property

bo lo0k at local sources

its real expenditure, in expenditures

trends,

local

governments

have

been utilized

to meet fund requirements

local units.

There

@fficiently,

it being

local gove_ents.

to

the second ,most

The enhancement

depended

budgetak_

of the real property

is also a need

9c_ernments

will _ave

if only "because these

and aid for their

potential

(Table 21.

Tax

of revenue,

Local

loaal

kDavtly

an

needs (Table i

3).

tax has not zeally

and operational ad_tin/ster

_S

important

needs of fund

_evenue

_

souT_e of

of the real pEoperty

tax

•

could substantially national

lessen

local govermnent

dependen=e

.....

on the

authority.

A feeling from real property

for the potential taxes

is given

taxes are shown as a percentage product.

are

On the average,

In contrast,

property

United •States 4t_ir_

for local

by Table

4.

enhan_Jmemt

Here real p_y I

of the country! s gross! nat_or_l

property

tax revenue

tax revenue .averaged a slmilaz period

veln, the share of property

revenue

was 0. 341 per_.

3.96 percent

(Table 5).

taxes out of total

in the

In the same

tax revenue

of

--_/However, several liaitations en local government's taxing p0wers, are found in the Rea1_ Property Tax Code (P.D. 464) and ot/wr laws.

T_le

.2

1969 -79

(Current: and Cons e.ant: 1972 Pesos)

T_u_IL,Governmonts

T_

curtent: o_s_t

1_s9

44.3s

_v. 2o-_

1971

37.25

29.45

36.43

31.27 ,.

1975

5:).34

1977 1979

1973

._

....

,Ha_.t_X_a]L __ ....

..,

a=_e_

__,__;2

,

_

"_

'

....

crustal: _. s

116.5

124.3

31.36

397.2

238.3

64.31

3_ 09 -

644".:4

322.7

78, 51

31.36

.891 •6

358.5

Aveza_e

_mnual pere_t Z_cz_ase

5.

(

0.8)"

.........

_ces:

_,.._ _.,

(:Xm_tsskon an Aud£t Repox_s ]_pe_ti_ures (£oz 1969-71), _e_,4:s (1972-79).

_ _ KtL_t_y

Governmm_t of F:i.mm_

_,--,

Table PERCE_T

DIS_UBUTX_

Lo_aI â&#x20AC;˘ Sources 1_efe_e

OF LOCAL

GOVErnMEnT

=

from

'/IWl_ness

64.___8 36.6

_azatiOn Taxes

_

Nqn-Tax

3

16.9 Taxes

19.7

Reve_e

Re_e/pts

28.2

fEom Public

7.2

Enterprises Fees an_ Other

Receipts

.,.

Aids

Total

21.0

,.

and Allotments Internal

Revenue

National

&id

35.._.2 Allotments

28,1.

7,1_

,100.0%

• _ble

_

_emr

zw_z_e _mL11ica)

4

ammm-m_._ w

G_ _

]mR cY 14)7_c_19e0

l_cbsse_s (£n p Kl._

l_olx_:y _z as a percene.age of

_

1972

199

5S,526

.358t

1973

263

"/1 #616

__r_l_

1974

307

99 w631

,3(Ilia,

lq75

346

114 • 26S

3034

1976

368

131w 570

280t

1977

586

151w978

386t

1978

674

175,777

,383t

I_79

799

215_

,3?Or

&veL-age

485

Sources

_n£stz,/o_ Bos 5sad

:

142.254

riaaaoe: "P

PhJ.L£pldae

_

ss_..txmal

341t

_

Swles

#

7

t_ble PI_OP_

•

_

S

RE_Zt_:_N_D GI_ •FOR CY 1972-1_7 (_t_ states)

Ye_

l_ve_e ,_,,(£n $ t£-11£on)

1972

50,603

(in

_ ' $ Bi111o_)

_ Taw as a PerCentage o_ GID

1,185.9

4.2_t i

1973

53.527

1,326.4

4.04qt

1974

56.329

le 439. _

). 93_

Z975

59.506

1 r 549.2

3. N_

1976

66.012

1,718.0

3.84_

1977 • Average

sources:

3.o23 59.8_:.;

3.e1 1,521.95

3.9EIt._m

]_atex_tional• r:Lnauac:La3.Stal_LstiCSw 1980; _iB_-.

Iooal Goverrnent Revenue: Govern_nt Finance • 'U. S. Department of Ccmmerce_ Bureau of Census.

8

local

govuwzents

in the Ph_lil_nes

_he o_ces_ond_g

fi_e

_le

be taken

care

cmm¢_,

_ the

dtf_erences

_t_e_stzu_u_e Onit_d

of _

_

are

have

develol_i

ra1_Lo could

s£_m_fy

rea]_ lq_qperty

tax nm

m_:t_m _dto_.ug

that

d_1_fek_a_

the

f_

in_e

in t_xes

be_r

enfoz=emm¢ by l_oper

G_ester

with

_t_a_Lve

beze _o11_ _

rest

a loe_

ta red_s

_11

_osely

st_e, _Jmt of hatter

noted the alffezengeiKJM_welm

to Inc_aes (1979)

tax

f_

_

2_/

The enbanoemnt

_l_s/d_i_n

the

coun_rles

tax eff_

psope_Q

t_

_

a nsuure--no

give

ms

10z_v:bde _or-

Beslaes.

o_ _

t_e

In the

are no_ very

rates

of 1_e ASEAtl orang,

_ea_s

6).

t_ a 6eveloped

and Ie411 develope4

a g_1_r

Ph_

is

a _lng

Yo_jlltl_ and _nt_8

an

_

_

as

__at

_011e_t_on

a_m_r_

needs

zalozovement.s in 1:his area, services

_

(Table

mm 84 percut

States

nevertheless

alr_ua¥

of

i_ffoz_c J_ TK_bsbly

s_ned

United

in Oo_aring

l:Oper_r

authors =atJ_s

of tax

the

s_h_m_s, ¢ho d/s_repencies

6everal

1_

for

was 50 percent

decisLons

wtll

I_ be given ]0e felt

being made closer

to

the

real

in a higher _

_ lever

tax _1_ public

uhere these az_ qNt be

del_ve_-ed

2-/_or exanple, Nnsgrave, l_rJ_d A and Peggy B Nm_jrm, rJ:_nce __n Theory _ l_cactlce (New York: I4=G=aw-H:Lll. 1973), p

747

9

able 6 PROPSR_Z T_X _rEs _ND _, LOCAL GOVBRNNE_,

P_op_ty Tax Revenue

_mX _SS 1972-1980

Total. _ _

OF

..,dk_m_t_y-Ta x a_ a Pe_n.t:age. of '_tal

_

377

S2;st

t973

_

533

49.3t

1974

_?

692 .

44,4_

1975

.346

!976

.:_,-

1977

M6

1_78

674

. ll4)79.

799

1980

821

-Sourcez

_ ...775_ 799 I,O90

,_

44.6t 46; 1_ S_.8%. -

1,289;.

. _2._% i

.-.2"_537

52'0%

1,565'

Conqpu't:_edfEom Table 4.

'

_

ยง%'_'_

10

'A.

Descr _:ion

The re_ i.e,

it

is

_opeZt¥

a tax

tax

based

is

an ad valorem

upon the

assessed_ :. _

tax

o_ _op_ty,

va!ue_ 9f. _th_..__Y-

,_.-,

zt isi_o_ o.all real p_opertyi_lud_ "L_d. b.i_x_,

property.

• .t

system £s e_c_died ._,_

_-_ _. .....

enacted

as P.D.

governs

the

_n the _

'. .....

No. 464,

app_aisa_

_c_o_

by p_-u_,

c_merci_

. _.... ._._ .,-

lan_,

......

_._:_

promulgated

_

-

•

the

_

May 20,

of real

_ss

.....

1974,

_

0_le

__._Lw_ms

_ _e_. _,'opeEt_;::t.az. 3/

_..

_

.

,

_nd a_so .a_., mineral . . .- .. of zeal

_,

_.

.-

.

.

in _be cue_

p_o_e_ty serves

_i

two p_rp_es,

a_p_alsal _ozk and to effeot a tax dlffe_entlal

tax burden,

3/seo. I, _

.

....

T_e classif£cation

of

_

admlnistrati_n OE tbe__

cur 1_ have a diffexe_tial tax o_rkng

.Code _

-.

_iti._,_._. _m_ci_,

.

and industrial, :o., ._:_ ..... . _!._

tO fa_llta_e

_

..-..

is _,,_msifiedInto r_sident_al, a_:i_u_L1r4_al,

_

.

_

and assessment

the, lev_, c_llectJ.on

......

i,]coper_

-.

Prop_ty

treatment

in o_n=J.deza_

Mass al_m!_al

Tax Code,

work. £s ne_ed

of-t_e because

11

individual

_ea_mt

.improvement highly

of

enCai_

developed

each and eV,_y paroel

a lot

of time,

cou_y

like

effort

of

_

Or any

and money.

the United

States

Even a

_esorts

to ms

ap_aisal.

2:

_ctual

Basis'

section property

19 of- the

shall

regardless refers

of _ses_

be assessed

of _he_e

l_edominantl¥

ut_Ll£zed

4-/ it

al_pt_e

for

_

_r_ty

.Tax Oo_e,_states,

c_ the

locat_d

to _he purpose

p_qx_t¥.

aeal

_

of

and whoeve_ which

the

_Bes

_t_a2 it.

p_op_

by the person

_he determining

its

_

_al

use

"_ual

use _

_r_ipall

in possemi_

factor

_.

_

7 or id_

£n a__

assessment level to t_e m_xke¢ value of _ke _.

Thus, if

P_t_Y

_s cla_Ifi_

and valued

as _e_l

_

I_

i,

_he' actual

use

predominant use assessment

level

ae_ordance

with

thereat _ of for

the

the

the

residential b_ause

buildinq there_m

res£den_Lal

land

schedule of b_

l_r_£P_

_s_es£de_i_L_., shall

be applied

market value_ _

_k_ to

mxm_n_a_

land._

_,.. r

...

,..

4-/Sac.19, 3,(8),Ibid. _Lsessment

Regulations no. 8-75, June I0, 1975, p. 51.

13

4.

Assessment Level of Real Property

The assessment levels of real property are as follows:11/

(i) _ for L_du(a)

Resldential

30 pez¢ent 0

(b)

(2)

Comneralal and Industzlal

50 _c_nt

(d)

Ilineral

50 petoent

(e)

Timber and Forest

40 peroent

For t4achineries_ (a)

eesid_tial

70 patoen_

(b)

Co_M_clal

(¢)

Agr_¢ult_lral

a_d Industrial

80 permm_ 60 percent

(d) mneral

(3)

For Buildlngsand

_Marke__alue

Other Imp_ovements_

(TJIPerc.mlt)

(In Pe_ent)

(In Pe_c_It)

_30,000 or less

15

SO

40

Noze _ P30,O00 but not wmm:linq _50,000

20

55

45

1-!l/see. 20, _al _.ss3.

_ropert_, Tax o_e as __:_q,.,lb.

14

J¢=_c value

(xnPe.rcent)

(_

(_

t4o_e _ PSOoO00 but noC ezceed£ng _75,000

25

60

* SO

Ho=e _n

35

65

55

45

10

More than Pl?5,000 but not exceecti_ P2.F_, 000 _.

55

75

ES

than p;tSo, 000 _t ac_ excee_ _350,000

65

80

";0

More than p350,000 but not exceed_mg _500,000

75

80

T5

so

80

80

t_7S,O00

buc n_c_es=e_a_ P125,000 levee than D125,000

6G

but .9C _ze_J_ P175,000

_ -(4)

psoov_oa

For Special Classes (a)

of Real PzopertF:

used fo_ educational, cultural o_ sc£e_tlf__-_5 peroent of their market val_e;

(b) Used for reozeat_onal puz_seS--I5

5

Rates

_)Je_

value

of the

_m¢

l_etmmt O_ their

_he_p_c_v_czal, czty or nunxcipal__p_ac_l a uniformrace,c_ _ 1o_allties as followss

_cy

cu ap__e

to _r

eba_ fix

15

Ca) o=dlnauce

In tbS _se

of a p_ov:_e--the

o_ t4w pz_eincial

boa_l

o_ 1 pes_eent but not more than __

at

tax

shall

the rate

be fized

of not less

1/2 of I percent: of

than 1/_

the ammseed

meal p:opertÂĽ

(b) oz_inan¢_ thsn

In tbe _

of the aunieiga_ _

1/2

of I percent value

assossed

ef a city--the tax shsll b_ flmd

zn t_

I 1/2

not _

of l:ea_ propez4_

case

of the

whleh nay be la_ed than

but

o: city emm:_l

by

at _be z_te of _

than 2 perm_

of _he

12_/

Netropolltan _

Commlsslona t_--...

shall not be less than I/4 of 1 l_a_ent io= an:e

of the assssse_ value of real property _

ccmI_tation of the Tax

The m_._ a_te:

applying

an exaaple,

of

8_SE_l_sively

m_ket 6

the real

property

tax due _11

the appropriate assessment the

fo_ta

for

deten_nin_

for residential

w_e

(e g,

13._/p D

s3, No

z, 921

level the

pSO,O00) (3s

be a:_i_e4 at

and _ tax due _

IXLrpOSO IS illust_a_

m,zl_tpaied_. _,: ,_.Ns.ment level..

Asgess_ value (p28,000)

!see

lees

tax :mq:e bulld_s

16

The_ses_nt _

_ :e_. p_-ope=cy t.nvolve.s_

due, the gAvi.ng _

notate,of a _ def:Lc_y 7

a nottceL _o_that ef__.

o_

t:_ tru/_er,

._m _. t_r cbe_tmencof _ _,_r

s_l_l

Oolle_zou

Pzo_esn

Lm_ely _Sble beAnglazily -zt: _

C_m_

foz the collecU_ o_ _, _ co.ArieS to auesment _ -t

be the :es_o_ibAlt_

cAzy or mn_pa2Acy l_zsu4mt 1:oSees

to collect

ttm

1he Cu4q_

_t

o_ _e tzeuurer o_ the _zqvlilme _z_o_z_t_sz as l_vLed

th__

38, 39, 42, 47, and _

LD the C_de a_

• s/pecLsl levy Luimseclunder R A mo $447 ¢S_C 41 O_ the (=o4e) an4

oChec ]mm and decrees, upon rea_ p_opart_ _ _r o_ervLae

exemp_

_

_

_ies

treasuze_s

_

_o_

sha21 a2so blt l_apons_ble

t_._es ny

del_

resor_..ed to by the _:eas_ze_ sLm_aae_sl_

_y

be e_o_p4

ada_s_a_vely

_Lty

aa_/_:

_--_Assessment_ ]b_zl_t_Lons 8-75, p

_

be

_

_ml_=_,ally , _e

119

Ln

a_mmls_a_lve

17

'-pi_.W_,_prOpL_._,"ezK_ (2) sal® o_ r,,al prope.r._._..I,ubl_ m='_t_, lllLV'e_'_=l.im_l by the oiL'N' _ reBedy

_'_udibJal

_real

p,_'cn_la=:ta, l._8_

£a availed'of

proper_.-_

£o_ _

tllmelr ilellmt:l.ee.

L_ the

Coor_

1marbecomesdue and _e

o_ ,.Tamiary of tuat yearandthe _

'-:_"_.f__y __ly

ac_._i__o •le: sl,aU _o,,_._

o_=liw_,

:ooZes,

_.,'_11 be eni6_ceab_e 4el_b_luent

of-_e

"be ZmoW_le

-.

_ule

•a_a__

or eamm#_aaces tgsins_

or a¥

of an_ kind

ovMr

__ve_ in t3'ue po_esotxm

or po__

_t.¥ by _

payment o_ li_6dk_l_, t.ale_and i_enl_L_tes, _-T_

_

i_f,

_

_

t_ece are

also

.speet._L

_ _. _o__

T_,_s__._

_/se_.

e_dpm_e..t..r,E_e.

a l:_m us_ the

the p_'oper_.y 5ehether

ub_t

H

-._._

o_ __

H

i_p_i_.c _

s6. e,D. No. 464.

"_-_.se_. 4_, :_/4......

_o. s44_._-_

levt_s

on

18

• i;.

_b) _d valore_ tax on isle lands at the rate of 5 perce_t

w _ p_ino_.l or olty .s,e.=r o_.. p_ovin=e or ci_ ,_. ....

IEope_

iS located, or by the municipal assessor in the oase %

Idle Ns _la.

I 7'

in the munici_alltles Of _litan

si_a_

1-_

Lands coBsIdered

_._ da_rying, hail

._alsnd

of which

,_,,:

as "idle"

fishery

,z_min

and _,ker

uncultivated

are _

follows,

1-_/

agricultural

uses,

°me-

ac _;

(2) Landother than agr_culturaZ, l_a_d_ _s a

or s_nicli_al_Cy,

more than 2,o00

square

_eters

_

__e-

_alf of whioh resain unutillsed o_ _q_.

• {e4 _ s_pecial levy on Zamd_especia_y bemfi_eaby _ improvements

_

of the

of

costs

pzovin_a_,

b_ local said

not exceeding 60 p_r&_n_

_ve_s

improvements

or infrastructures.

city or municipal boards Gr c_ils

The may, by ordinance,

Provide fo_ the imposition and c_llect_on of this levy on lands _Ised

withJ_

l-_/Sec.42,

_tse_. _/Sec. 21/Sec.

the

district

excep_

lands

Iba_l.

-43, :.Ibid., 47,

benefited,

ibid.

40, Ib___.

as amended by P.o.

No. 1446.

exeMPt

f_

2O

(?|;, "Pas_:b_e_'and/or '_grui_3

with.calendaE _

la_

acquired

1977,.and for acquisiti_

b_/ i_Q81s_

made t_w_eaf_,

_hall begin with the yea_ of such aoq_sie.Lon;

the _am _ and

_ .oe._£_'_eioa_o..x

_tuuons

oW.log:re_ property,

6055) are also exmpt. 22/ _:-(d):_-".__

le_onlands

. eSpeetall¥

beneflted

_

publ_

*ksp_o:je_ts _inan_e4 by,_e natioMi,:_ve_me_, _-_ pe_e_t ....

"*. _i.

,_._

l_view

of the cost "_ _

.,

0_er

thereof.

The Minister

of Finance _a_, ' • .

,

,

issue _or the purpose, provide £o_ the i_osit_O_

of Literature

The standazds flow f_

that may be u_

thesame

criteria imposed on all _her

m

_' '-_/Sec.'r 9_ "_b_e. ; 23---/Se_. 55,

fl_ assess ._J_e zeal.

Ibid.

policies.

21

..': - ,,... •

a _

_vaz_ •

..

•__._.

_:_,,_

_',j,f_Ele,.,

._t.iwe

(at}

_uat_

_)

I_

./,.

:

d/,.tr.J.but/.ve

aJ.:Locat.l.ve e_£ic_enc_

_

_

._.

i,....__.tl_ _,_ = _.._ eLt_f/,c_!

.,.

.__

eqLt.tjq,.,,4md qwoue_Lc

Y_ts enccut_hsas

_

bes_

resources awag _/_,J',¢

use o_ cur couatry's

be_.,

_e_ _p_es,

,_

,=,a,,.,mel_ _..._av _:_W.....::_

_.re. -o.._e

be _eet,.toas..,abou_... ,tlbj_. _,: _t_O.tc. e belu,,e tea.t._"

_. _e_,e.t, ,.,.w.._1 a,,_.,_,_.e.dm.. (b) dist_i_tive An the "

- ,_e

_'.'

-.

"."

pub_3£© finanee of pebllc

i."

.'

equity -- _is aritert_

"'"

.

._

•

,

public

1£t.ara_e revenue

.

..

. ....

this ..

.the

revenue

and expenditure

_

s_,opextvtuas.

p_ev£ous

is-often

_is

ob_ec_ves,

_an££est_

"

of g_

...

does =_ .,,. =__

explaJ.n8

is alreadF •

-_:

stab_lizing

_r',:_=, _-t _.-__

as an objective though

"..

and in automatic

_. =_o

e_at£on

,. .,....... _

_

_nteresc".in._lext_l£_

.._--.

on _

l_m o£

...

criterion

"

...

through

,d). _,,'_h-- _",,_o

the p_.

_

and. expmdimre,....

-

f_ce,

as

_.s.o_

its

s_d_Umo d

explicit under

p_ eo_sidbho eJsz_o

2z.

"'+

.

, .,

.' ..

,

....

_.

s_e _

_

t_t

most e_,_

._.

_

.

.

.

',.

,f"

of the z_l

. ,, ,/_

_,

"

_ty

, ._..

" .

,'"l

tax

....., _-.+-

have equity

(tax _c_e)

..... __n

_ =__

_ l_he_f_e,

as t_e _jor

__

_ -_ ut.=a,=., o. _o =e_ p_ope_

_ _._

.

_.

.m.o._ .

:.

._=

."

_ _ n.i_a_..._'e_ _ eco.,=_Lc _ c¢_side:at_Lon.

+_-e_y

_ .

_ _

_..

z'm_Z

_be quest.k_ of ellocatlve

: ,_'_ _+-

•

.-

_tme_t_

in p_l_s

and qm_mti_tes_." _e + IatCe= _

_e_endson the _t_e_en_ _y, •

•__"_z_e.s_.

-?_

o__

in turn

_w_ and_t_.e_._,-

,

+'.

__,

_,m_,

._"

_,

23

question

as only

Especially

importance

investments

because

Thzs aspect

of tax ancidence

at often

of allocation

affects

as heightened

roughly

vlews, wlth

the tame pattern

on the _ncadence

into main

of real property

schools,

the

taxes can be

traditional"

and the "new"

trylng

to forge an integrated

In 1966, the conventional

wlsdo_

was suma_rlzed

work by Netzer

(1966)

Aaron

or

trad_tional"

The 1966

tax would be dlvaded that imposed by the

through

while that on zmprovements f_nal product

view,

_eduCed

capital--both 0_KS

income

lowered would

asset values

be passed

that the prol_Ety (slte value) _d wo_Id

_

_a_d

("capitalized"),

on _o consumers

of _the

that the tax is borne

(land and improvmuents)

the main effect

the current

on land

job for the new

The tax on site values

The new view concludes

of property

return _

v_ew concluded

approanh _/

in an extensive

(1975) dad a similar

into that imposed

on improvements

landowners

ownars

of

in the case of real

some articles

view

is of

taxes

_he studies divided

to the pCob_em

in the case of an LDC, the probleu

pazamount

property

_nc_en_al

by

According

to th_s

of the p_operty

tax Is to reduce

the r_e

reproducible

and nonreprodu_ible

of all capital

bear

Ttn_s

the tax in the form of a

in thei_e assets

_/See _-or example Blake (1979_ who presen%s a very lucid Of _ka two vaews This dist111atlon as largely based ¢_

of

24

The Traa_taonal

View

The tcedL£tmml v_ew ks based on the noti_ _hat the supply of land is ab_lqtely f_xed but _hat the supply Of reproducible cap£tal xS not _th the land supply f_xed, the lan_R_jers can not escape the tax bur4ea of the land portion of real_p_ty However, the tax porti_j _ _proVements to real prope_f (_eprodu¢ible capital) can be s_fted by the landewnez onto the _m_r of the real p_operty se_ or Products The ar_ent fo_ ihl8 forward shifting is that re_duu_bie capital is ¢_pe_it/vel¥ s_q_lled and therefore l_rioed at _/nlmm_ long-ran average cost The app11catlon of the property tax, whlch _s an ad valorem tax on capital, would Increase the supply price of the reproducible capital in an exolsetax fashion s_nce that capital would not be produced and supplaed at a loss Therefore, the portaon of the tax levied on _mp_ovements would be passed forwaZ_ onto the occupant or the consumer of the services or products This Flew thus saw the la_k_mer as bearing the burden of the tax on the land pQrtion of real property (_h negative capltal_zation), wh_le the portion of the tax on improvements was passed fozward to the (current) ultimate usezs of the pro_peEty

The New View

The new view, as detaxled here, as dast_ILed mainly fr_ the work of Aaron (1975) who singles out Mxe_k/ (1967, 1972) as pazt_cularly influentaal an the develol_ent of this perspective _ieszkowak_

25

analyzed the _c_dence of property taxes In _ tradit_o_ of Harberger s _nal work (1962) on the _n_e_e of the corporate income _aX The new view a_roa_es the property tax _ncidence question by _nit_ally view_ the property tax as if it were r a single ad valorem tax on all uapltal That sln_le tax r_ i_ appl_ed unlforetIy over _ndus_rle_ and space _n a closed econ_ÂĽ in which the supply of capital is perfectly inelastic The results of this analys_s are then ad2u_ted to a11_w ÂŁor some elastlci_ in the supply of cap_tal and to allow for geo_ra_hi_l and Industrial differences â&#x20AC;˘n property tax rates (Aaron 1975, p 38)

General

Conclusion

In a closed economy an which the supply of capital is perfectly inelastlc, the appllcation of an ad,,valgrem'tax on all cap_l will simply cause the rate of return on capital to fall, because in such an econcay the retu_rns to capital are pure rents /The suppliers are assumed unable to shift their assets to an untaxed o_cupatlon and unwilllng to restrict their supplies an response to the tax--/ The lower rate of return is the _nulde_ae of the uniform tax on capxtal The new view theorists assume that these results hold for the p_perty taxj that is, a single tax rate applied to all real property WOuld simply reduoe the rate of return o_ all property

26

(Aaron 1975, pp 38-39} Note that • n this case asset Prices axe unaffected--there _e no negative ¢apx_alization effect on any asset If the rate of return is Eedu¢ed frcR i0 perce_t to 8 percent by a t_ percent real pro_, the asset which was pri_ at _i00 and y_elded a $i0 annua_ paa_ent now yxelds a net $8 annual retttrn W_th the new dlsccunt _ the price of that aqset Eemalns $I00,

xt is

__h

.ot i.g the_ this

tarts pa_ id by the curren____._t owners of the r_l property regardless of when the tax was orlginallF lev_ed

As of

sume_rised

capital

that

is

the

main

assumption

is

The

same

view

recognizes

that

fixed

the closed

economy's

may be $hlfted (investment

above,

supply

Thus p through

or new capital},

xs elastic,

a reduction

wage rates

be reduced

Where there are var_atlo_

of diffarent

jurisdictions,

as excise

Goods

taxes

be t_eated

as different_odu_ts

to

the

supply

the

extent

some of the tax burden

in the supply of capital

throughout

the eo_

in the effective

the dlfferent_als

produced

that

ma¥

tax sates

have the same effects

in different

jurisdictions

and the differentials

would

would have

4

effect on excise

main how elasti_ assumes

_e

taxes

difference supply

capital _

of

in figures

tko

reproducible

be infinitely

that capita], for __le _llustrated

between

econ_F

_

vt_

i$

_

_e

elaS_l_le while

t_

is f_

_la) _nd (Ib)

_

_kD _sumptton old

view

new view assue_s

__iffeEe_ces _

on

old _

are _la| owners

*Daniel R Blake, _Pgoperty Tax Znc_dence_ _._Alternat/ve Land Bcono_ es Vol LX, N_, 4 (November 1979) 521-31

View,"

27

P

p, Pn = P

A

%

o (a)

_' Q Tradltic_al View

Q

P

l

s

P n

D

Q (b)

Figure _PLY

_Q

New view

1

_lD DEMANDFOR RF_R0_XJCTBLECAPITAL

28

of

capital

can reduce

their

Preserve their af_rcax r_4_m tO t'°

_

_e_c

_ice-reaal_lLaC

p'&r_

ee_s ,

mim_ly

-

•

,'

that

pla_

and buildings

and _nvest_e_t. in the section

_e

_upply

decEeaSes_to

the

c_m_iCute

(Sanchez,

..

Of r_pr6ducible

"

__mse.

al__

_

effects

a major _rt_on

1982).

"

Pn < p°

'elas_iclty .

iS

in o_d_

As a result, market

Q.

price

*

bil_Nr;

Q'

As a result, z_cket price

e _onsiderablFq_ar_'_

,_e_,

91oned

tax

to

eq_e_s of..capit_l, throughout

fixed ac

act_

j..

Q

Pn = P"

_t_

Of the ,

eaPital_!_la_se_E often

price,

f_m

Ch_ new view, _L_.

the __ve

_ieal

supply

More will

of

is

that

are

_pil_L_

be sa2d on .Ch_s:_t=

on future research.

Administcativ_

The o_he_ large'body of literature on-reai IEoperty-ta_es " maturate, f_

_.thOS_ _ _4_fi_

tax_s;•• _'Th_•:_sis-•In

aspects t_ese

(a_tx_ative

the collect_on

Df

ad_L_iS_a_.

_

these studies _is':onthe legal_ty,'equity

e_iciency),

¢nteteste...-_,,fSeb ,,for

of

example

taxes

ilM:a_es_c_u:ez efficiency

actse

some of the

(_9_) ;andm_ve_'_ne: _OUSon (19?7).) spec_£Le:

and

as a by'pr_du_ azticle_

,_on_ the _cs

of

in Lynn

Of

and costs of _Sm/nls_atlon;

quarry-, of__sesmm_ts,_-, esseseo_s_.. _i of rea$"propertY-" taxation,

29

Most of the studies

on the Philippine

real property

tax system

is

of thls type

2

Phillpp_ne

Sources

A relatlve

few have written

the PhiliPpines

although

abo_

real property

the volume _f work _

_

4_axation in

area has beea

/

increaeingin reoe_t years deserIptlve

wlth

des_tIptlon property

_o_t of the _t_k_

some an_lytlcal

Up _

been the main centers

National

Tax Rsearch

methods

on the topic

topic

Center

nistrat_ve analy_ed

Other

(1982) wrote

taxation

the causes

staff

Th_s

(1979)

for the taxes

members _f

and _he

the Natlonal

Tax

|NTRC} have also workefl oa the

a generally

enlighter_ng

emphasized

_tzod_£an

_he legal

and _a_-

(1981) o_ the o_r

Guevara

of_ re_£ property

The studies

of real property

taxation

of tax laws prev_ag

the rationale

and consequenoes

in the Philippines

an the description

have

as 1953

and _uintos

a descriptlon

The arta_les

bases of the tax

as early

by Yoingco

of the Philippines

Ciru3ales

of property

quency

including

of collection

Research

Fore groups

_n the study of real proi_rty

is essentlall_

in the New Society,

on

Center

who wrote

work

have concentrated

and its problems

early piece has been superseded The latter

from the

of th_s research

One of the pioneers has been Yoingco

inferene_zawn

now, most articles

tax a_In_stratlon

tend t_ be

ha_e

taxation

been

_

de1£n-

s_bstantla_ly

undertaken

u_ed

in this paper

3O

University

of the Philippines

The U.P.

Law Center

under the New Society volume

by Flores

done by Cirujales

Law Center

also undertook

(U.P. Law Center,

specific

1975).

study

on

Ta_Laws

Two articles

undertook

a task quite

and Guevara

of NTRC.

Ao_aln, an_l!rtical inferences

of the system.

to so the results

remain

indi_tive

similar

in the

and Tiambeng

are also drawn _descriptions is resorted

a_similar

to that

No e_girical instead

work

of giving

_a_a_tu_es.

â&#x20AC;˘ t_

6_aonseUniversity

Study

Group

At the turn of the decade,

the United

States

Agency

for Znter[',

natio_

Development

Citizenship

_md Public Affairs,

local government requested government policy

commissioned

finance

that the study be responsive in pursuing

issues.

specific

as well as data

from surveys

outside

four provinces. local finance

good

The result

picture

with

for pollclmaking

University

topics

and selected

(Bahl

used data fz_

on Audit

the

ACtivities on all

munlc_palitles

empirical

(ed.), 1983).

to get hold of the raw data used

of the Philippine

and in identifying

has been an impressive tentative

of

of a_rem_nt

and its Economic

and the C_ssion

S_0ol

to do a study of

The term_

'_hegroup

the Population

of Metro Manila

the Maxwell

to the needs

research

As part of its study, Census_of

cations

Syracuse

fr_

in the Philippines.

1975 Inteqrated

cities

a group

fz_

review of the

rest;lts It would,

and

impli-

perhaps,

be

in the study so that subsequent

31

phases

of

the

duplicate

present

this

research

previous

The volume

•.

real property

chapter

to

•After a_ initial

.

methods, tax.

it discusses

In su_Mtry

property

discussion L

and assessment countEies.

a poor _ecord

•

..

,

_

property, showing wlt_ uniform

(by

..ofthe tax rates fir_dinge on the

found that the stricture is sound

practice

HOwever,

and the

of enforcement. capita

,

is impressive

the revenue The

ou_ared

performance data show

real property tax revernles during

.

(Table 7. Note this i_ Table

in real

tax

•

the _pirical

the study

th4_ there was little qra_th inper the _eventies

than

..

ha_ _uffered _rom

property

tax per capita

that substantial

gains

2-5 of Bahl.).

There .was also wide

and per assessed

in tax yield

value of

is possible

enforcement.

Research

Foundation -

The

real

the

tax _u the Philippines

othe_ _eloping

-Bus_ess

rather

..

of assessors

var_tion

extend

-

of the real property

_

one

-

and assessment

_ality

will

work.

devotes

Bahl and schroeder).

effort

Business

Research

•

....

•- •

Foundation

(BRF)

of

the

College

of

,

_usiness

Administration

been commissioned Development country , ,:".

of the University

by the United

States Agency

to study the real property

in order . ,

of the Philippines

of the

that will "enhance the

..

..

yield of the real property

_ax.

The study

...

only a preliminary

for International

tax administration

to come up wi_h changes

has

report

is still on-golng ...

is available.

end

32

"_adole •7 P_

PROPERT'[ T_ 1969-79

_

__

--_

t_,'ENUES:

.......

In Ctlr_r._ent Pesos Year

AmO_L_t __Percent

1969

6,07

1970

4.97

1971 1972

,

Increase •

_t

_

Perce_t

Increase

9.20._ " :

-(19)

6.56,

(29)

4.29

(14)

4,65

5.10

19

5.10,

10 -_ii '

_

(30)

1973

6.54

:.29

5.62

1974

,7,41

14

4.74

1975

8.23

tl

4, g_

5 "-

19.76

8_.37

.2:

" 4.60-'

:_( ?_.,:,

1977

12.94

55

6.46

1978

14.44

12

6.72

16.61

15

6.63

'

1979 _

,t Pesos

._n Co_.

----

.

__.

(16)

41 4 ( 2)

.

•

•

Sov_ee, Roy BahZ and Barbara ,.. FL'/&mcs __n_the Third 198:3), p. 69.

,

•

..

_

.

. ....

,. _', ._

D. Mil_er (eds.), Local Gov_t Wor!,4 (New Yozk.. Pr&qbger Publ'Jsh_u:S,

33

The study included A_Lnistration _ula_

(RI_&) tax-mapping

and Tabaco,

_

undertaken.

,Quantitative

Various

benefit-co'st mea_ires

estimating

Tak

in Plazldel,:

analysis

was made

for

the Cash revenues

the benefits variability

_cash revenues

indicators,

in substantial

to Plarldel,

the estimated

benefits

indicated

Bulaaan

showed

to local

flab,s benefits

of .tax

that

_overnmemtS.

pEo_ect.

mapping

the project. projects

alone

times

For Taha_# costs.

was only due to different in

the

(5) to ten (10}

was from 2.5 to 3 times the project in the estimates

had the project

that the cash •z_wenue

was from five

costs of the tax mapping

about the cost of funds used

3.

involved

the municipality's

=esulted

project

proJects_T/_ose

A benefit-cost

project

inareame

of two Real Property

c*

comparing this no£" been

Albay.

The. method

the taxiing.

# ._

case analyses

The as_'ons

The direct, seem to

Albay,

quu_ntl-

Justlfy _the

expenditures.

PreliminaryAnalysis

in

the short-run,

falls on the owners is lu_bile. property

of Incidence

the incidence

of real property

Moreover,

by selling

To illustrate asset before

the taxed • .

this,

i

since

tax

the capital _invested

on the ownersi'who held

imposed.

,

They cannot shake

the off

asset.

_ •

assume

tax is i0 percent,

Effects

of the real property

the burden is

at the time the tax was

the burden

and Al$ocatlve

that the rate of return on an so that a property

yielding

P3,000

34

per year is _rth'_30,oO0.._

_se

t_

&41m¢._... p3oo.Goxs

2.

capitalized

at

10 percent,

lo_ers

the

._j_erty

value

co, P27,0

.0_. "

<

If

the

must

initial absorb

owner

of

tax

loss,

the

net return

of

investment

elsewhere.

o_er-'of

the

own_s and

_o

are

n0_

the

10 pexcent,

the _

similar

to

_b_

of

_

The burden

pz_peEty

l_io_

the

tax

im_oll_ion

old

asset

will

burdened

by

the

tax.

The loss

value

which

public

da

of _eal propert_

_o

falls

st

the

been

she

_, on the

tax.

a lower

_s

or

ob_Ltn..a,

gram

thus of

due _.

by. allowing

the revenue

services

went. to

he

S1_em_

price

o_y

capi_alize_

owner. 24--/

or even increased

services

it,,

available,

the

be neutralized

highways

to

s_ll

wAIl

l_Z_base,

The reduced

additional

to

since

and stays wlth the initial

p_blic

_s

prope_ÂĽ

taxes

for the _fi_s

may provide.

,f_mm

The _vis_on

like the construoc2on

may raise the value

maF,. _er,

of real ._EOper_y

of

of roads, am_-

and even

.

attzac_

i

capital

..

inflow.

In the long run,

shifting

exclusion

of owner-occuPied

coincide}

and owners

They

of

suffer a permanent

idle

of the tax is possible

residences land.

loss equal

(where owner

The __-___burden, to their

_e

_ ._n

with

the

oonsumer with

_T/_.

in _he_ tax.

2_/Ric_ard &. _usgrave and Peggy B. Musgrave, Public Finance in Theory and Practice (New York: McGraw-Hill Co,, 1973), p. 432.

36

Thus,

property

be progressive

values

may _ncrease

or regressive

or

decrease

ar_t __ax

i_u_en

with the iw_posltion of real propeEty

_es,

depending

c_ the counterbalancing. ,of the tax and ben6fit

effect

add on the kinds of real properuy

_axea.

37

IZI.

•A,

CONCLUSIONS

LesSOns. from

AND SUGGESTIONS

PastPhilippine

Some of the major •

/

pointsmay,

Research

issues

in real property

(i)

literature

Different

is to retard

reviewed.

be justified

(See section

the conversion

on the basis

However,

conscious

desired

"

follow_

of society's

have been adequately

at times, one

real property

tax is warranted

and "distortions"

are often

_ay

for Sosin uses over

there really

is such a

ramlfi=atlone

of such

considered.

assessment capital

from the former.

wonders

this

Thit

proparty).

the economic

of reproducible

and land away

effect of

preference

whether

on

from some uses to

to commercial

The other •effect of the differiRg

mach£nery)

,

dependlng

The direct

of real property

or whether

the combination

are used

II A.4.)

there may be doubt

preference,

preference

For example,,the

levels of assessment

(e.g. i,"rom agricultural

others.

distort

have _meal

raised:

of ,se.

others.

taxes

,

be

the type

RESEARCH

,,, ,,

in the:

pointed

FOR FUTURE

whether or

While

a blanket

(buildings

by

and

this result may be bias through

even intended.

compounded

levels is

These

the second

the

retardat£ons

feature mentioned

below...

"

(2)

purposes

The

standardof

of assessment

"actual of

use" ' instead

real property

of

,best

may artificially

use"

for

prolong

_he

'

38

devot/on

of _

_Eo3mrty

t_ans£orlat£on of

the

value

assessed of

the

of a higher to shift

the

better

value land

if

it

were

This

devoted (best

the propert_ in land

may have

the

even

if

is

on actual

value

In.ease

feature

use.

based

assessed

oz sell

t_muqh this

to'a

to one use

condittxma

so,

use

because

does

to a better

use)

would

effect

(to

the

inoorp_ate The use

forced

the

can use it

reflece

the best

of re_zding

its

re_mt£o_

purpose.

have

to soaebody _ value

not

waxTa_t

the

owne=

better use).

socially

_ms,

optimal

shift.

(3) mst£y

Other

issues

pinpointed

in the Philippine

sources

pertain

to adLtnis_rat£on.

(i)

The presmce earmarked

(ii)

of n_erous for

specific

puzposes

¢apacity_of

local

The absence

of adequate

tax

mal_,

lack

special

levies which

with erodes

_ds the

taxing

governments. bDola of the tax

of _raining

of assesso:s

surr_jndlng Jurisdictions and quest_ne

assessor and the

like

_nfusion

of ownership

(which is being remedied through the RPT_ project)o

The studies Researah

Pmmdation

mm be generated It

is

of Bah1 and Schroeder

expected

(1983)

through f_at

have

shown that

increases

succeeding

(1983)

in tax

research

and the

a subs_mtLal adml_stration

stages

aspects will follow fz_u the present studies.

Business improveem_t efficiency.

in a_-4n/strative

39

B_.

• ,,[ sugge_tions . , . . ......

The ,.

•

for

.Suggestions

•.

,.•

: ,.,,

from :_e-review _ incorpo.va_:e _a

" " _ "_ tSerefore

" _:

•

" ' growth. ,

basi6ail

•

• requi_e,

" other

of

,

Y

•

(X)

" _ The

On

in a

.. . . approach

,, •

wher_

"

the

_,sked re,._rdin_

allocation

._ .'; '- "' • .L of-Sh£l:ting.

", _ differences ;" ,'.: I_e

view,

,for e_ample,

ca_,i-h_i is

bo±l

elan:t i::.. A

are

•

of

the

real

we

.

two

property

..

tax

although

the

f-.

the

..," '

%

capital

,

the

"

, ..

(Y

_s

the

1967),_

is

general

Y,

.

...,.

-. .

of

..

of

'

:

,.

.

a

'

tax

.

_ubstitution "

X

._..•

and

.

,',

am_unts

Y;

respectively,

..

.

between . .

on

the

"

economy.

<

.

d emand.fo_

.

of

respectively; .

are

. .

pri¢:e _:last.ici_y

. ,

original

and

_11 the

conditions

throt_,:]hout the

,

X;

capital

and

,

..

fL'

..

.

S

K

,

labor

K

and

total

. .

ir_itial, shar_

cost

L

, x

employed

in

industries

_.he ela_ti.cities -..:. .:,

_,_'_ .i_,'{

of *_" ,

o_._i.t:_l,respect.ire_].y,. Ln industries . .

the

- are

S

, y

• _:

y

• .

f'_< are

in.the

and

.

•

..',.

x

.

_-

labor

:

X

.

....

effects

::

. ;'T_..

would

i_sed'

a tr_x i_

: ., : • .[ .. _4ie.';zkowsk_,

examine

dow1_

iL],us_:ret:e this,

_o_._odity. wot-ld

,

,".

px:iee of .

whell

anal.y_is ;.t._

,..

is the .

of

ful!(,._r

x .

"'

: i' ............. =__..... /_ _ __ (_;. '_';. -, ___,-(_ _.,'_:y - LX /i y"_ -- _y : S'-(__.L_: ;_, :{'_v % ._'x/Lv )

-, .

E

already

-; " ; magnitudes

': used-here

Here, •

.

•

incidence

" ' _ " " " ' '- " " " the quantitative

or: capi_ll

equilib_:ium

. .

......,.aP H

be

ta_

•+

industry

r:'.," '.,

. prof_.i.-si.n

of

eff.ects

Imrden

.

.

on

, .',

..

simpiified, .:

t_

Supply

tax

?J3an _rtial more

need

as%d t/_.enew

. ..

mucb

debate

o_._,'er • emp!ric_. 1 e,'_tima.

•tes.-. To

one

})_., o_uct)

rather

the .

cons:i.der tlie final profits

view

the economic

vario'_S

The

"

naturally.

._

......... extenf the

determLne

I 'to __h_£her of

very

.

traditional

dlscu_sion

follow

.

" ' " involve

These

-

research ._

qtlest.ioz{s that

.... ' which

betweenthe

further

..

lite_.ature.

.

par_meters

for .

of

the

"

.....

Future._l_ezeart'-h•

of. producing

"

.' "

of

"

_

.

.-k.

J.abor: and X;

gk

is

"

caDital_ the

share

L y

41

n,

o_er

_op_s

Spec£al

topics

perta/n£ng

taken up.

_

bm=ause it

is _r_dely believed

_ad.

exan_e

But land _

the tax on Idle

alao

tax may also be

lands is often. _aisod the. l_odm:t£ve too _ly

obvious

that

use of

and _

it

or Satez _han tie mrke_ _uld

oLt'cumstanoes. (e.g.. see .N:Llls (1980J).

seem ]_msver, _

to hasten

be d_loped

should be developed ear$ier • on att_tdant

tO, the property

several

more topice

These

__n be _sted,

oe_tra_Llty and importance of the suggested b_Los

argue fo= att_tion

to them in the succeeding

phases of re.arch.

46

Loea_ .Gove.rnm_nt

PEoVlmu/al

_ernments

T_xes,

Pe_s,

a_x] Charges

_eal _ro_ez_ Tax Real Property %_ansfer Tax Tax o_ Prim_i_g a_a lh_bllcatlon Busi_es_ Franchise Tax Sand CraveZ Tax Taxes on C_cupati_ns, Amus_._an_.

2_issioas, a_ Fees _r Ceili,_ and Liuemsing Wei%_s an_ ik_asure8, each _ wb.ic_,- iS im_ose_ the _attoral _,ezm._nt. with revemmes t=ansfarEe#..,t_ the: province Peddler ' s tax Tax on _iver_ Truc_s C*c Va_s Rental P_es f/o_ _s_nq. M_.'_c_':_I Waters, P._ver_, etc., as L_g L_:¢_-'_

Mum/cipal

,_ve_m.cs

._aal Property Ta_.

B;_siness %_Ke_ Fees or Chaz_es on n'.'_u._+ activities _c]_K_ir_ i_arades, larg_ cattle Zeg.%St.Zat_X_, huii_in_ p_s, d_g licen_s, etc.

Fishery Rentals o_ Fees

City _ernments

Cities can ut_.li_s any of the taxes lis_ed ab_we for either pr_wlnues or mualcipalltle_. |re_all that •" cities, in essence, enjoy the d_al f_unct/o_s of 9r_vi_ces and mu_ci_l£_ies

47

_1_en_i:c Ta_le (_m_Lzme_)

_s.

5

• Taxes o._. +,,mL.s.on.. et:_ oz" ;:et;aL1er._ _-i_:l_ fixed cap£1:a.1 investz_n_ of _$,000 or less, ,_cx_s mined, by _-,agay _es_nts _ cock_£gh_s (:_. es f_ services of bara_fac_lit£es.

48

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