Real Estate Updates
Sunday,
May 13, 2012
THE
collection and payment of real property tax shall be based on these guidelines:
1. The
tax shall be payable starting on the first day of January and shall constitute
a lien on the property superior to any other lien.
2. The
collection shall be the responsibility of the City or Municipal Treasurer
concerned.
3. The
property owner or his authorized representative shall pay the Basic Tax and the
additional SEF (Special Education Fund) Tax due thereon without interest in
four (4) equal installments as follows: 1st installment -- due and payable on
or before March 31; 2nd installment – due and payable on or before June 30; 3rd
installment -- due and payable on or before September 30; and last installment-due
and payable on or before December 30.
4.
Payments on real property taxes shall first be applied to prior years’
interests, if any, and only after such delinquencies are settled may tax
payments be credited or applied for the current year.
5. If
real property tax is paid in advance, the LGU concerned may grant a discount
not exceeding 20% of the annual tax due.
6. In
case of failure to pay the tax, the taxpayer shall be subject to the payment of
interest at the rate of 2% per month on the unpaid amount or fraction thereon.
However, in no case shall the total interest on the unpaid tax or portion
exceed 36 months.
7. Taxes
shall be collected within five (5) years from the date they become due. No
action for the collection of the tax shall be instituted after the expiration
of such period. In case of fraud or other infractions, such action may be
instituted within ten (10) years from the discovery of such fraud or
infraction.
8. The
period of prescription above to collect taxes shall be suspended for the time
when: the Treasurer is legally prevented from collecting the tax; the property
owner or representative requests for reinvestigation and executes a waiver in
writing before the period to collect expires and the property owner or
representative is out of the country or otherwise cannot be located.
The
following are exempted from the payment of the real property tax:
1. Real
property owned by the government whether national or local except when the
beneficial use has been granted to a taxable person.
2. Charitable
institutions, churches, parsonages or convents, mosques, non-profit or
religious cemeteries and all lands, buildings and improvements use directly and
exclusively for religious, charitable and educational purposes.
3. All
machineries and equipments directly and exclusively used by local water
districts and government-owned and controlled corporations (GOCC’s) engaged in
the supply and distribution of water and/or generation and transmission of
electric power.
4. Real
property owned by duly registered cooperatives as provided for by the
Philippine Cooperative Code (R.A. No. 9520).
5.
Machinery and equipments used for pollution control and environmental
protection.
Any
person who is not satisfied with the Assessment of his property may file an
appeal with the Local Board of Assessment Appeals composed of: the Provincial
or City Register of Deeds as Chairman; the Provincial or City Prosecutor and
Engineer as Members.
The
Board duly constituted shall decide the appeal within 120 days from the receipt
of such appeal. Its decision shall be based on evidences and testimonies
received as reasonable and adequate basis to support its decision. If the
person is not satisfied with the Board’s decision, he may file an appeal with
the Central Board of Assessment Appeals within 30 days from receipt of the
local board decision. The Central Board’s decision is final and executory.
As a
rule, any appeal or assessment of real property tax shall not suspend the
collection of the corresponding realty taxes without prejudice however, to
subsequent adjustment upon the final outcome of the appeal.
The
intricacies of property taxation must be a lesson for all since it constitutes
an obligation on our part as a citizen at the same time a single source of
revenues where we enjoy social and community services extended by the
government to us. Let it be an eye opener as a social responsibility to nourish
and nurture now and the future.
-o0o-
(The writer is a Certified Public Accountant and president of
the Baguio Realtors Board, Inc. Apart from being a recognized Real Estate
Practitioner as a Real Estate Broker and Educator, Lecturer and Resource
Person, he is likewise a Business Management/ NGO/Cooperative Consultant,
Project Development Consultant, Financial Advisor/Loan Broker and Columnist.
For comments and more information of Real Estate Updates and Studies, you may
get in touch with him at No. 04 Old Forestry Compound, Baguio City 2600, Tel.
No (074) 427-1971/ Cell Nos. 09109302753/09163188274 or email:
bert_capili@yahoo.com/ bertcapili65@hotmail.com).
Published in the Sun.Star
Baguio newspaper on May 14, 2012.
