MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 464 June 1, 1974
ENACTING A REAL PROPERTY TAX CODE
WHEREAS, this country cannot progress steadily if its local governments are not potent political subdivisions contributing their proportionate shares to national progress;
WHEREAS, the past decade saw the passage of the Local Autonomy Act, the Barrio Charter, the Decentralization Act and other pieces of legislation intended to make local governments financially self-reliant and stable;
WHEREAS, it is very apparent that in spite of all these laws, local governments still find difficulty in providing adequate funds with which to underwrite basic and essential public services within their respective areas of responsibility;
WHEREAS, studies show that one of the main reasons behind this is the failure of local governments to fully tap the income potentialities of the real property tax;
WHEREAS, to remedy the situation, there is an urgent and compelling need to upgrade assessment services by updating assessment techniques, procedures and practices and thereby bring about equitable distribution of the realty tax burden among real...
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Presidential Decrees
REAL PROPERTY TAX CODE
Presidential Decree No. 464
Summary of the Real Property Tax Code
General Provisions (Sections 1-4)
• Governs appraisal, assessment, levy, collection and administration of real property tax by provinces, cities and municipalities.
• Fundamental principles: market value appraisal, uniform assessment, classification based on actual use, uniform standard of value, no private assessment, equitable tax burden. (Section 2)
• Definitions of key terms like actual use, ad valorem tax, agricultural land, appraisal, assessment, etc. (Section 3)
• Department of Finance is responsible for administration of real property tax. (Section 4)
Appraisal and Assessment of Real Property (Sections 5-29)
• All real property to be appraised at current fair market value. (Section 5)
• Owners to file sworn declaration of property value every 5 years starting 1977. (Section 6)
• Assessor to declare property if owner fails to do so. (Section 7)
• Assessment rolls to list all real property. (Section 8)
• Proof of exemption to be filed by owner. (Section 9)
• Real property identification system. (Section 10)
• Notification of property ownership transfer. (Section 11)
• Register of Deeds to provide property records to assessor. (Section 12)
• Officials issuing permits to provide copies to assessor. (Section 13)
• Surveyors to provide plans to assessor. (Section 14)
• Schedule of market values to be prepared before assessment revision. (Section 15)
• Assessor can take evidence for valuation. (Section 16)
• Amendment of schedule of market values. (Section 17)
• Classification of real property for assessment. (Section 18)
• Assessment based on actual use of property. (Section 19)
• Assessment levels for lands, buildings, machinery, special classes. (Section 20)
• General revision of assessments every 5 years starting 1978. (Section 21)
• Valuation of real property by assessor. (Section 22)
• Certification of revised values to Secretary of Finance. (Section 23)
• Effective date of assessment or reassessment. (Section 24)
• Assessment of property subject to back taxes up to 10 years. (Section 25)
• Binding effect of assessment or reassessment. (Section 26)
• Notification of new or revised assessments. (Section 27)
• Appraisal of machinery based on cost and depreciation. (Sections 28-29)
Assessment Appeals (Sections 30-37)
• Appeal to Local Board of Assessment Appeals within 60 days. (Section 30)
• Organization, powers and functions of Local Board. (Section 31)
• Meetings of Local Board. (Section 32)
• Expenses of Local Board. (Section 33)
• Action by Local Board within 120 days, appeal to Central Board. (Section 34)
• Central Board of Assessment Appeals organization. (Section 35)
• Powers and functions of Central Board. (Section 36)
• Effect of appeals on tax payment. (Section 37)
Imposition of Real Property Tax (Sections 38-40)
• Annual ad valorem tax on real property. (Section 38)
• Tax rates: provinces 0.25%-0.5%, cities 0.5%-2%. (Section 39)
• Exemptions from real property tax. (Section 40)
Special Levies on Real Property (Sections 41-47)
• 1% additional tax for Special Education Fund. (Section 41)
• Additional tax on idle private lands up to 2%. (Section 42)
• Definition of idle lands. (Section 43)
• Exemptions from idle lands tax. (Section 44)
• Application for exemption from idle lands tax. (Section 45)
• Listing of idle lands by assessor. (Section 46)
• Special levy by local governments for public works up to 60% of cost. (Section 47)
Collection of Real Property Tax (Sections 56-85)
• Tax accrues on January 1 and constitutes lien on property. (Section 56)
• Collection by provincial, city or municipal treasurer. (Section 57)
• Assessor to submit assessment roll to treasurer. (Section 58)
• Notice of tax collection periods. (Section 59)
• Payment in 4 installments allowed. (Section 60)
• Tax discounts for early payment. (Section 61)
• Payment under protest allowed. (Section 62)
• Refund of excessive tax collections. (Section 63)
• Restriction on court invalidation of tax. (Section 64)
• Notice of tax delinquency. (Section 65)
• Penalties for delinquency up to 24%. (Section 66)
• Remedies for collection are cumulative. (Section 67)
• Distraint of personal property for delinquency. (Section 68)
• Exempt personal property from distraint. (Section 69)
• Sale of distrained personal property. (Section 70)
• Redemption of distrained property. (Section 71)
• Return of sale proceeds by officer. (Section 72)
• Advertisement of real property tax sale. (Section 73)
• Stay of real property tax sale. (Section 74)
• Treasurer can buy property on behalf of province or city. (Section 75)
• Certificate of sale to purchaser. (Section 76)
• Report of sale to local board or council. (Section 77)
• Redemption of real property within 1 year. (Section 78)
• Possession and usufruct of property within 1 year. (Section 79)
• Issuance of final bill of sale after 1 year. (Section 80)
• Disposition of property acquired by province or city. (Section 81)
• Collection through courts allowed. (Section 82)
• Suits assailing tax sale validity. (Section 83)
• Payment of delinquent taxes in property disputes. (Section 84)
• Treasurer to certify uncollected delinquencies. (Section 85)
Disposition of Proceeds (Sections 86-87)
• Distribution of real property tax proceeds. (Section 86)
• Barrio shares of 5-10% of tax collection. (Section 86)
• Application of tax proceeds to funds. (Section 87)
Organization, Functions and Supervision (Sections 88-91)
• Appointment of provincial or city assessor. (Section 88)
• Qualifications of assessor and assistant assessor. (Section 88)
• Appointment of deputy assessors and other staff. (Section 88)
• Powers and duties of provincial or city assessor. (Section 89)
• Creation of municipal deputy assessor position. (Section 90)
• Qualifications of municipal deputy assessor. (Section 90)
• Supervision by Department of Finance over local assessment. (Section 91)
Special Provisions (Sections 92-95)
• Market value as basis for expropriation compensation. (Section 92)
• Exemption for non-profit educational institutions. (Section 93)
• P10 million Assessment Revolving Fund. (Section 94)
• Appropriations for general assessment revision expenses. (Section 95)
Miscellaneous Provisions (Sections 96-103)
• Remission of tax by local board for disasters. (Section 96)
• Remission or reduction of tax by President. (Section 97)
• Duty of officers to assist assessor. (Section 98)
• Insurance companies to provide building information. (Section 99)
• Exemption from court fees. (Section 100)
• Exemption from registration fees for tax sale. (Section 101)
• Promulgation of rules by Secretary of Finance. (Section 102)
• Exemption from postal fees for assessment notices. (Section 103)
Penal Provisions (Sections 104-108)
• Penalties for failure to file declaration, false declaration. (Section 104)
• Penalties for acts committed for corporations. (Section 105)
• Penalties for omission from assessment rolls by officers. (Section 106)
• Penalties for delaying assessment or appeals. (Section 107)
• General penalty for violation of Code provisions. (Section 108)
Transitory Provisions (Sections 109-112)
• Existing sales and forfeitures governed by prior laws. (Section 109)
• Turnover of pending cases to new appeals boards. (Section 110)
• Repealing of inconsistent laws like Commonwealth Act 470. (Section 111)
• Effectivity date of June 1, 1974. (Section 112)
General Provisions (Sections 1-4)
• Governs appraisal, assessment, levy, collection and administration of real property tax by provinces, cities and municipalities.
• Fundamental principles: market value appraisal, uniform assessment, classification based on actual use, uniform standard of value, no private assessment, equitable tax burden. (Section 2)
• Definitions of key terms like actual use, ad valorem tax, agricultural land, appraisal, assessment, etc. (Section 3)
• Department of Finance is responsible for administration of real property tax. (Section 4)
Appraisal and Assessment of Real Property (Sections 5-29)
• All real property to be appraised at current fair market value. (Section 5)
• Owners to file sworn declaration of property value every 5 years starting 1977. (Section 6)
• Assessor to declare property if owner fails to do so. (Section 7)
• Assessment rolls to list all real property. (Section 8)
• Proof of exemption to be filed by owner. (Section 9)
• Real property identification system. (Section 10)
• Notification of property ownership transfer. (Section 11)
• Register of Deeds to provide property records to assessor. (Section 12)
• Officials issuing permits to provide copies to assessor. (Section 13)
• Surveyors to provide plans to assessor. (Section 14)
• Schedule of market values to be prepared before assessment revision. (Section 15)
• Assessor can take evidence for valuation. (Section 16)
• Amendment of schedule of market values. (Section 17)
• Classification of real property for assessment. (Section 18)
• Assessment based on actual use of property. (Section 19)
• Assessment levels for lands, buildings, machinery, special classes. (Section 20)
• General revision of assessments every 5 years starting 1978. (Section 21)
• Valuation of real property by assessor. (Section 22)
• Certification of revised values to Secretary of Finance. (Section 23)
• Effective date of assessment or reassessment. (Section 24)
• Assessment of property subject to back taxes up to 10 years. (Section 25)
• Binding effect of assessment or reassessment. (Section 26)
• Notification of new or revised assessments. (Section 27)
• Appraisal of machinery based on cost and depreciation. (Sections 28-29)
Assessment Appeals (Sections 30-37)
• Appeal to Local Board of Assessment Appeals within 60 days. (Section 30)
• Organization, powers and functions of Local Board. (Section 31)
• Meetings of Local Board. (Section 32)
• Expenses of Local Board. (Section 33)
• Action by Local Board within 120 days, appeal to Central Board. (Section 34)
• Central Board of Assessment Appeals organization. (Section 35)
• Powers and functions of Central Board. (Section 36)
• Effect of appeals on tax payment. (Section 37)
Imposition of Real Property Tax (Sections 38-40)
• Annual ad valorem tax on real property. (Section 38)
• Tax rates: provinces 0.25%-0.5%, cities 0.5%-2%. (Section 39)
• Exemptions from real property tax. (Section 40)
Special Levies on Real Property (Sections 41-47)
• 1% additional tax for Special Education Fund. (Section 41)
• Additional tax on idle private lands up to 2%. (Section 42)
• Definition of idle lands. (Section 43)
• Exemptions from idle lands tax. (Section 44)
• Application for exemption from idle lands tax. (Section 45)
• Listing of idle lands by assessor. (Section 46)
• Special levy by local governments for public works up to 60% of cost. (Section 47)
Collection of Real Property Tax (Sections 56-85)
• Tax accrues on January 1 and constitutes lien on property. (Section 56)
• Collection by provincial, city or municipal treasurer. (Section 57)
• Assessor to submit assessment roll to treasurer. (Section 58)
• Notice of tax collection periods. (Section 59)
• Payment in 4 installments allowed. (Section 60)
• Tax discounts for early payment. (Section 61)
• Payment under protest allowed. (Section 62)
• Refund of excessive tax collections. (Section 63)
• Restriction on court invalidation of tax. (Section 64)
• Notice of tax delinquency. (Section 65)
• Penalties for delinquency up to 24%. (Section 66)
• Remedies for collection are cumulative. (Section 67)
• Distraint of personal property for delinquency. (Section 68)
• Exempt personal property from distraint. (Section 69)
• Sale of distrained personal property. (Section 70)
• Redemption of distrained property. (Section 71)
• Return of sale proceeds by officer. (Section 72)
• Advertisement of real property tax sale. (Section 73)
• Stay of real property tax sale. (Section 74)
• Treasurer can buy property on behalf of province or city. (Section 75)
• Certificate of sale to purchaser. (Section 76)
• Report of sale to local board or council. (Section 77)
• Redemption of real property within 1 year. (Section 78)
• Possession and usufruct of property within 1 year. (Section 79)
• Issuance of final bill of sale after 1 year. (Section 80)
• Disposition of property acquired by province or city. (Section 81)
• Collection through courts allowed. (Section 82)
• Suits assailing tax sale validity. (Section 83)
• Payment of delinquent taxes in property disputes. (Section 84)
• Treasurer to certify uncollected delinquencies. (Section 85)
Disposition of Proceeds (Sections 86-87)
• Distribution of real property tax proceeds. (Section 86)
• Barrio shares of 5-10% of tax collection. (Section 86)
• Application of tax proceeds to funds. (Section 87)
Organization, Functions and Supervision (Sections 88-91)
• Appointment of provincial or city assessor. (Section 88)
• Qualifications of assessor and assistant assessor. (Section 88)
• Appointment of deputy assessors and other staff. (Section 88)
• Powers and duties of provincial or city assessor. (Section 89)
• Creation of municipal deputy assessor position. (Section 90)
• Qualifications of municipal deputy assessor. (Section 90)
• Supervision by Department of Finance over local assessment. (Section 91)
Special Provisions (Sections 92-95)
• Market value as basis for expropriation compensation. (Section 92)
• Exemption for non-profit educational institutions. (Section 93)
• P10 million Assessment Revolving Fund. (Section 94)
• Appropriations for general assessment revision expenses. (Section 95)
Miscellaneous Provisions (Sections 96-103)
• Remission of tax by local board for disasters. (Section 96)
• Remission or reduction of tax by President. (Section 97)
• Duty of officers to assist assessor. (Section 98)
• Insurance companies to provide building information. (Section 99)
• Exemption from court fees. (Section 100)
• Exemption from registration fees for tax sale. (Section 101)
• Promulgation of rules by Secretary of Finance. (Section 102)
• Exemption from postal fees for assessment notices. (Section 103)
Penal Provisions (Sections 104-108)
• Penalties for failure to file declaration, false declaration. (Section 104)
• Penalties for acts committed for corporations. (Section 105)
• Penalties for omission from assessment rolls by officers. (Section 106)
• Penalties for delaying assessment or appeals. (Section 107)
• General penalty for violation of Code provisions. (Section 108)
Transitory Provisions (Sections 109-112)
• Existing sales and forfeitures governed by prior laws. (Section 109)
• Turnover of pending cases to new appeals boards. (Section 110)
• Repealing of inconsistent laws like Commonwealth Act 470. (Section 111)
• Effectivity date of June 1, 1974. (Section 112)