Real Property Tax in the Philippines Vital Information.
Real Property tax is a tax imposed on the real properties in the Philippines. Whoever the owner of such real properties as of January 1st will be the one liable to pay such tax. In the event that the owner of such properties is an exempt entity, then the person actually using the real property will be the one subject to real property tax based on the actual usage.
What is Considered a Real Property
According to Civil Code of the Philippines, Article 415, the following are to be considered as “Real Property.”
- Land, buildings, roads and constructions of all kinds adhered to the soil;
- Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable;
- Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object;
- Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements;
- Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, and which tend directly to meet the needs of the said industry or works;
- Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in these places are included;
- Fertilizer actually used on a piece of land;
- Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant;
- Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast;
- Contracts for public works, and servitudes and other real rights over immovable property.
Rate of the Property Tax.
The rate of the Property Tax is determined by the city and the municipality where the real property is located. It is the Cities and the municipalities that will assess the real properties. The computation of the assessed value is based on the fair market value of the real property multiplied the by assessment level. The assessment level varies as it is determined by the local government unit. The assessment level of the local government is based on the classification of the real property, whether it is a residential, industrial, commercial or agricultural. The highest level classification is the commercial and industrial, followed by residential then last is the agricultural.
- Cities and municipalities rate of Tax is 2% of the assessed value
- Provinces rate of tax is 1% of the assessed value.
Incharge in the Collection of Real Property Tax.
Local Government Code section 247, state that the following are in charge for collection of the real property tax.
- The provincial, city or municipal treasurer is the primarily responsible / in charged for the collection of the Real Property Tax with the interest and other related expenses there on.
- It is the assessor department who shall prepare and submit to the city or municipal treasurer before December 31st each year, a list of all real estate properties that have been assessed .
Real Property Payment due date.
Every 1st of January is the start of the accrual of tax liabilities for the owner of real property. The government provided the real property owners with two options so settle their real tax liabilities. First option is pay it in one time for the whole year and the second option is to pay it thru installment method by quarterly.
Here are the important dates to remember for installment quarterly payments:
First quarter: On or before the 31st of March
Second quarter: On or before the 30th of June
Third quarter: On or before the 30th of September
Fourth quarter: On or before the 31st of December
Paying the Real Property Tax.
- Submit a copy of your Real Property Tax Declaration to the City assessor office and ask for your current real property tax bill.
- Go to the Local Government Unit’s cashier department and pay your Real Property Tax bill.
- Keep always the official receipt of your payment.
Read also: Certificate of Title in the Philippines
To receive updates on relevant information, like and follow us on Facebook: infostackpinoy.com
Leave a Reply