Requiring All Persons, Natural Or Juridical, Owning Or Administering Real Property, Including The Improvements Thereon, To File Sworn Statement Of The True Value Of Such Property
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Requiring All Persons, Natural Or Juridical, Owning Or Administering Real Property, Including The Improvements Thereon, To File Sworn Statement Of The True Value Of Such Property
Presidential Decree No. 76
December 6, 1972
Case Overview and Summary
Summary of Presidential Decree No. 76Requiring Sworn Statement of True Value of Real Property
- All persons owning or administering real property must file a sworn statement declaring the true value (current and fair market value) of their property with the provincial or city assessor by June 30, 1973. (Section 1)
- Current and fair market value is defined as "the price at which a willing seller would sell and a willing buyer would buy neither being under abnormal pressure." (Section 1)
- For just compensation in cases of private property acquired by the government, the basis shall be the lower of the declared market value or the assessor's determined market value. (Section 1)
Assessment Levels for Taxation
- Assessed valuation for taxation shall be: (Section 1)
- 50% of market value for commercial, industrial or mineral lands
- 40% of market value for agricultural lands
- 30% of market value for purely residential lands
- Improvements shall be assessed independently, with levels maintained at current levels but not lower than land assessment levels or higher than 80% of market value, except for purely residential houses with assessment levels based on a schedule. (Section 1)
Revision of Assessments
- Provincial and city assessors shall revise real property assessments every 5 years. (Section 2)
- Assessment increase shall not exceed 10% at any one time, unless the property's nature changes from rural to urban or residential to commercial/industrial. (Section 2)
- Assessment level shall not exceed 80% of market value without prior approval from the Secretary of Finance. (Section 2)
Failure to File Sworn Statement
- If the owner fails to file the sworn statement by June 30, 1973, the assessor shall declare the property and assess it according to the provisions of the decree. (Section 3)
Exemption for Low Valuation
- If the total assessed valuation of a single owner's real property in a municipality is not more than 500 pesos, the tax shall not be collected, but the property shall still be valued and recorded. (Section 4)
Transition from Previous Declarations
- Existing tax declarations as of December 31, 1973 shall be superseded by new declarations under this decree. (Section 5)
- Delinquent taxes as of December 31, 1973 shall be computed based on the previous assessed value and penalty rates. (Section 5)
Uniform Appraisal and Market Value Schedule
- Provincial and city assessors shall prepare a schedule of current and fair market values of different property classes in their jurisdictions, using guidelines from the Secretary of Finance. (Section 6)
- The Secretary of Finance shall furnish the market value schedules by September 30, 1973, and may modify or revise them by November 30, 1973. (Section 6)
Appeals Process
- Owners unsatisfied with the assessor's assessment may appeal to the Provincial or City Board of Tax (Assessment) Appeals within 60 days of receiving the assessment notice. (Section 7)
- The Board shall decide the appeal within 60 days, and its decision can be appealed to the Central Board of Tax (Assessment) Appeals within 30 days. (Section 7)
- The Central Board's decision shall be final. (Section 7)
- Appeals shall not suspend tax collections, subject to adjustment based on the final outcome. (Section 7)
Funding for Implementation
- Local government units shall provide necessary appropriations for expenses related to implementing the decree, using unappropriated balances, underestimated revenues, or reversions of unauthorized appropriations. (Section 8)
Allocation of Additional Realty Tax Revenue
- Any increase in the local government units' shares from the additional 1% realty tax under Republic Act No. 5447, starting from fiscal year 1973-74 over the base year 1971-72, shall be divided equally between the general fund and special education fund. (Section 9)
- The Secretary of Finance may increase the amount accruing to the local general fund to up to 75%. (Section 9)
Penalties for Tax Delinquency
- Failure to pay the real property tax before the expiration of the quarterly installment term shall subject the taxpayer to a penalty of 2% on the delinquent amount for each month of delinquency, up to a maximum of 24%. (Section 10)
Penalties for False Declaration or Failure to File
- Anyone who knowingly makes a false declaration or deliberately fails to file the sworn statement shall be fined between 500 and 10,000 pesos upon conviction. For corporations, the manager shall be responsible. (Section 11)
- Any assessing officer who willfully fails to assess or omits taxable real property shall be fined up to 5,000 pesos, imprisoned up to 2 years, or both. (Section 11)
- Any government official or employee who intentionally and deliberately delays the filing of the tax declaration or any appeal shall be fined up to 1,000 pesos, imprisoned up to 2 years, or both. (Section 11)
Implementation Rules and Regulations
- The Secretary of Finance shall formulate the implementing rules and regulations for provincial and city assessors to follow for the successful implementation of the decree. (Section 12)
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Requiring All Persons, Natural Or Juridical, Owning Or Administering Real Property, Including The Improvements Thereon, To File Sworn Statement Of The True Value Of Such Property
Presidential Decree No. 76
•December 6, 1972
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 76 December 6, 1972
REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING OR ADMINISTERING REAL PROPERTY, INCLUDING THE IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT OF THE TRUE VALUE OF SUCH PROPERTY
I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, and knowing
THAT, values of real property and improvements therein are usually under declared obviously for the purpose of evading payment of higher and correct taxes due the government;
THAT, although real property and the improvements therein are undervalued for purposes of taxation, these real property are sold to the government when needed for public purposes, such as the construction of roads and other infrastructures, at their market value which are usually ten (10) to twenty (20) times more than the value declared by the owners...
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