What is a Real Property?

Real property includes all lands, buildings, and such other structures including machinery.

What do we mean by the term appraisal?

Appraisal is the act or process of determining the value of the property or proportion thereof subject to tax including the discovery, listing, classification and appraisal of properties.

What is an assessment level on value?

The assessment level is the percentage applied to the market value of the property to determine the assessed value or taxable value.

What do we mean when we say assessed value?

The assessed value is the taxable value of the property when we multiply the fair market value with the assessment level.

What are the assessment levels that will be applied on all classes of lands in Quezon City pursuant to the Quezon City Revenue Code of 1993?

What are the assessment levels that will be applied on all classes of lands in Quezon City pursuant to the Quezon City Revenue Code of 1993?

How are the taxes determined for real property?

Taxes for a real property parcel are determined by multiplying its taxable value by the total consolidated tax rate for the tax district in which the parcel is located.

What are the rates of levy imposed by the Quezon City Government on real property?

The Quezon City Revenue Code of 1993 imposes one and one-half percent (1½) on the assessed value of residential properties and two percent (2%) on the assessed value of commercial, industrial and special real properties.

What other levies are imposed by the Quezon City Government in real property?

A Special education Fund Tax of One percent (1%) of the assessed value of all real property is also imposed in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund. Beginning 1994, there is so imposed on all idle lands an annual tax of three percent (3%) of the assessed value of idle lands located along national roads and one percent (1%) for all idle lands in other areas which shall be in addition to the basic real property tax.

When does the tax on my real property accrue and become effective?

Real property tax for any year shall accrue on the first day of January and from the date it shall constitute a lien on the property which shall be superior to any other lien, mortgage or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the delinquent tax (Sec. 246 of RA 7160)

What is the date of effectivity of Assessment or Reassessment?

All assessments or reassessments made after the first (1st) day of Juanuary of any year shall take effect on the first (1st) day of January of the succeeding year. Provided however, that the reassessment of real property due to its partial or total destruction, or to a major change in its actual use, or to any great and sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or any other abnormal cause, shall bemade within ninety (90) days from the date such cause or causes occurred, and shall take effect at the beginning of the quarter next following the reassessment.

What if the property owner disagrees with the assessment of his/her real property?

Any owner or administrator of real property, or any persona having legal interest therein, who is not satisfied with the action of the assessor in the assessment of his/her property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Local Board of Assessment Appeals where the property is located.

Does the value of real properties remain constant throughout the years?

No, the value of real property generally appreciates as the years go by. It is influenced most especially by the law of supply and demand of economics and the inflation rates obtaining in the locality.

How often do we increase values of real properties?

Sec. 219 of RA 7160 otherwise known as the Local Government Code of 1991 provides that the provincial, city or municipal assessor shall undertake a general revision of real property assessments within two (2) years after the effectivity of the Code and every three (3) years thereafter

What will be the basis of valuation when a general revision is undertaken by the assessor?

Sec 212of RA 7160 likewise provides that before a general revision of property assessment pursuant to the provision of the Code, there shall be prepared a schedule of fair market values for the different classes of real property situated in their local government units for enactment by ordinance of the Local City Council in case of Quezon City. The duly approved schedule of fair market values shall be published in a newspaper of general circulation.

What is the purpose of general revision of real property assessment? The important purpose of the general revision of real property assessment, are as follows:

To equalize and update real property valuations for taxation purposes;
To rediscover many real properties which have been inadversely dropped from the assessment rolls.
To enable the assessor to purge from the assessment roll double assessments of a single property and assessments of non-existing that may have accumulated through the years.

What is the effectivity of an assessment made in a general revision of real property assessments?

Sec.271 of the Local Government Code provides that all assessments or reassessments made after the first day of January of any year shall take effect on the first day of January of the succeeding year.

How will I know if the value or the assessment of my property declared for taxation purposes has been revised?

Sec. 223 of the Local Government Code provides that when real property is assessed for the first time or when existing assessment is increased or decreased, the provincial,city or municipal assessor shall within thirty (30) days give notice of such new or revised assessment to the person in whose name the property is declared. The notice maybe delivered personally or by registered mail or through the assistance of the punong barangays to the last known address of the person to be served.

To whom shall I pay my realty taxes?

The collection of real property tax including the interest thereon on account of delinquency shall be the responsibility of the city or municipal treasurer. (Sec 247 of the Local Government Code)

What are the OPTIONs that a taxpayer may avail of in order to make his tax payments easier for him? The OPTIONs available to the taxpayer are the following:

Property owner or the person having legal interest therein may pay the basic real property tax and the additional tax for Special Education Fund due hereon without interest in four (4) quarterly installments. The first installment to be due and payable on or before the 31st of March, the second installments on or before the 30th of June, third installment on or before the 30th of September and the last on the 31st of December.
If the basic real property tax and the addition tax according to the Special Education Fund are paid on time, there is hereby granted a ten percent (10%) discount on both the basic and the SEF. (Sec. 12-D of the Quezon City Revenue Code )

Suppose I was not able to pay my realty tax on time. What will the penalties be on my tax delinquency?

Failure to pay basic real property tax or any tax upon expiration of the periods provided for or when due, as the case maybe, shall subject the taxpayer to the payment of interest at the rate of two percent (2%) per month on the unpaid amount or fraction thereof, until the delinquency tax shall have been fully paid, provided however, that in no case shall that the total interest on unpaid tax or portion thereof exceeded eighteen (18) months. (Sec. 12-E of the Quezon City Revenue Code )

Suppose my total realty tax payments amount to P1,000.00, where will this amount go?

Seventy percent (70%) of the total amount of P1,000.00 which is P700.00 shall accrue to the general fund of the city government;
Thirty percent (30%) of P300.00 shall be distributed among the component barangays of the city where the property is located in the following manner:
 Fifty percent (50%) of P300.00 which is P150.00 shall accrue to the barangay where the property is located;
 The remaining fifty (50%) shall accrue equally to all component barangays of the city (Sec. 271-LGC)

Where will the collections on the Special Education Fund accrue?

The proceeds from the additional one percent (1%) SEF shall automatically be released to the local school boards, provided however, that the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals and sports development as determined and approved by the local school board.

How is the basic realty tax spent by the local governments?

The realty tax forms a part of financial resources of the local government that are allotted for the following expenditures:
1) Construction and maintenance of roads and bridges;
2) Construction and maintenance of public hospitals;
3) Construction and maintenance of public schools;
4) Installation and maintenance of electric street lights;
5) Construction and maintenance of artesian and deep well;
6) Collection of garbage;
7) Installation and maintenance of public health facilities;
8) Maintenance of peace and order and public safety;
9) Regulation and control of vehicular traffic;
10) Aid to victims of calamities in the city and elsewhere;
11) Purchase of relocation sites to the city’s urban poor and squatters;
12) Maintenance and operational costs of the city government.
All these major activities and many other projects are being funded by the income from the real property tax and other sources of income by the City Government of Quezon City.