Under the Local Government Code of 1991, the tax imposed to properties in the provinces, cities and within Metro Manila cities and municipalities vested by the national government to create their own revenues.
What are the types of properties that are taxable?
The tax applies to all forms of property such as land, building, improvements and machinery. Exemption is given to real properties owned by government, charitable institution, churches, cooperatives and those that are used in the supply of water and electric power, and equipment for environmental protection.
Base Tax or Assessment level.
|Land Use||Assessment Level|
|Commercial, Industrial and Mineral||50%|
|Special Classes: Cultural, Scientific||15%|
|Hospital, and Water Districts||10%|
To compute for the tax, determine first the market value of the land and building as assessed by the local Assesor.
Use of Machinery
Commercial / Industrial
|Taxing authories||Tax rates|
|City and Mun. in MM||2%|
Special Education Fund(SEF) Tax is 1% of Assessed Value on all Property Classifications.
Tax Collections – first of January of every year and can be paid in four installment before the office of local treasurer on or before the end of each quarter, 2% surcharge per month but not to exceed 36 months.
The Real property tax is the most important tax revenue source of local government
References: CES Academy and Manila Board C.R.E.S for Broker Manual
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