Real Property Taxation

Section 198. Fundamental Principle

The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:
(a) Real property shall be appraised at its current and fair market value;
(b) Real property shall be classified for assessment purposes on the basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and
(e) The appraisal and assessment of real property shall be equitable.

Section 199. Definition of Terms:

  • (a) "Acquisition Cost"
  • (b) "Actual Use"
  • (c) "Ad Valorem Tax"
  • (d) "Agricultural Land"
  • (e) "Appraisal"
  • (f) "Assessment"
  • (g) "Assessment Level"
  • (h) "Assessed Value"
  • (i) "Commercial Land"
  • (j) "Depreciated Value"
  • (k) "Economic Life"
  • (l) "Fair Market Value"
  • (m) "Improvement"
  • (n) "Industrial Land"
  • (o) "Machinery"
  • (p) "Mineral Lands"
  • (q) "Reassessment"
  • (r) "Remaining Economic Life"
  • (s) "Remaining Value"
  • (t) "Replacement or Reproduction Cost"
  • (u) "Residential Land"

Section 200. Administration of the Real Property Tax

The provinces and cities, including the municipalities within the Metropolitan Manila Area, shall be primarily responsible for the proper, efficient and effective administration of the real property tax.

Section 201. Appraisal of Real Property

All real property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is situated. The Department of Finance shall promulgate the necessary rules and regulations for the classification, appraisal, and assessment of real property pursuant to the provisions of this Code.

Section 202. Declaration of Real Property by the Owner or Administrator

It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements therein, within a city or municipality, or their duly authorized representative, to prepare, or cause to be prepared, and file with the provincial, city or municipal assessor, a sworn statement declaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. Such declaration shall contain a description of the property sufficient in detail to enable the assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein referred to shall be filed with the assessor concerned once every three (3) years during the period from January first (1st) to June thirtieth (30th) commencing with the calendar year 1992.

Section 203. Duty of Person Acquiring Real Property or Making Improvement Thereon

It shall also be the duty of any person, or his authorized representative, acquiring at any time real property in any municipality or city or making any improvement on real property, to prepare, or cause to be prepared, and file with the provincial, city or municipal assessor, a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier.

Section 204. Declaration of Real Property by the Assessor

Declaration of Real Property by the Assessor. - When any person, natural or juridical, by whom real property is required to be declared under Section 202 hereof, refuses or fails for any reason to make such declaration within the time prescribed, the provincial, city or municipal assessor shall himself declare the property in the name of the defaulting owner, if known, or against an unknown owner, as the case may be, and shall assess the property for taxation in accordance with the provision of this Title. No oath shall be required of a declaration thus made by the provincial, city or municipal assessor.