Huwebes, Mayo 17, 2012

Capili: Understanding property taxation better (IV)


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.

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