Approving and Adopting the Schedule of Fair Market Values for Lands, Buildings, Machinery, Plants and Trees in the City of Baguio, Fixing the Assessment Levels to be Applied Thereto, and Providing for a Staggered Implementation of the Increase in Real Property Taxes

December 20, 1995 BAGUIO CITY ORDINANCE NO. 101-95 APPROVING AND ADOPTING THE SCHEDULE OF FAIR MARKET VALUES FOR LANDS, BUILDINGS, MACHINERY, PLANTS AND TREES IN THE CITY OF BAGUIO, FIXING THE ASSESSMENT LEVELS TO BE APPLIED THERETO, AND PROVIDING FOR A STAGGERED IMPLEMENTATION OF THE INCREASE IN REAL PROPERTY TAXES EXPLANATORY NOTE City Assessor Romeo J. Gomez submitted for consideration and enactment into an ordinance by the Sangguniang Panlungsod (City Council) the Schedule of Fair Market Values for Lands, Buildings, Machinery, Plants and Trees in the City of Baguio. The cover letter dated 20 September 1995 states: "I have the honor to submit herewith the Schedule of Fair Market Values for Lands, Buildings, Machinery, Plants and Trees for enactment by Ordinance with taxes accruing 1996 pursuant to Section 212 of RA 7160. Likewise pursuant to Section 218 of RA 7160, request that the assessment levels to be applied to the fair market values included in the said schedule of values be adopted. "The above schedule of values is practically a reinstatement of the land values approved under ORDINANCE NUMBERED 006, Series of 1994, ENTITLED 'APPROVING AND ADOPTING THE SCHEDULE OF FAIR MARKET VALUES FOR LANDS, BUILDINGS, MACHINERY, PLANTS AND TREES FOR THE CITY OF BAGUIO' and providing for other purposes BUT WAS REPEALED BY ORDINANCE NUMBERED 099 (Series of 1994) except that the schedule of values for buildings was modified to reflect the increase in the current price of building materials and labor as well as to incorporate the exemption of buildings used for residential purpose with valuation of P175,000 market values or less . "If the above schedule of values be adopted, the following assessed values are projected, viz.: COMPARATIVE ASSESSED VALUES FOR TAXABLE REAL PROPERTIES LAND: Previous A. Value 1995 A. Value % Increase Residential (34.137 RPU's) P604,803,381.00 3,180,933,890.00 426% Commercial (808's) 82,496,520.00 317,713,150.00 285% Industrial (6 RPU's) 5,346,930.00 18,643,980.00 249% BUILDING: Previous A. Value 1995 A. Value % Increase Residential Above (P175,000) P482,878,050.00 1,253,964,040.00 160% Commercial 159,116,630.00 774,325,460.00 387% Industrial 30,180,750.00 164,383,900.00 445% "It is mandated under Section 219 of RA 7160 that the City Assessor shall undertake a general revision of real property assessments within two (2) years after the effectivity of RA 7160 and every three (3) years thereafter. This is one aspect in the exercise of the powers of Local Government to create its own sources of revenues. As interpreted by the Executive Director of the Bureau of Local Government Finance, Department of Finance under BLGF Memorandum Circular No. 45-95, it is mandatory to undertake a general revision of assessment and sanctions are imposed under Section 517 of RA 7160 to officials who fail to perform their duties, which include : 1. The preparation of Schedule of Fair Market Value ; 2. The enactment of Ordinances: a. Levying an annual 'ad valorem' tax on real property and on additional tax accruing to the SEF; b. Fixing the assessment levels to be applied to the market values of real properties; c. Providing necessary appropriation to defray expenses incident to general revision of real property assessments; and d. Adopting the Schedule of Fair Market Values prepared by the Assessor. By Authority of the Secretary: (SGD.) JUANITA A. AMATONG Undersecretary "As borne out by the figures of the repealed 1994 general revisions, the increase in assessed values ranges from 160% to 445%.To cushion the impact of these increases in real property taxes the Ad Hoc Committee created under Ordinance No. 099 (Series of 1994) recommended that the increase in real property taxes be staggered to three (3) years in the following percentages: 1996 50% 1997 75% 1998 100% "Early action hereon is highly appreciated." NOW THEREFORE, on motion of Hon. Weygan for the Committee on Ways and Means, Appropriation and Budget, duly seconded. BE IT ORDAINED BY THE SANGGUNIANG PANLUNGSOD (CITY COUNCIL) IN SESSION ASSEMBLED THAT: SECTION 1. Schedule of Values . The Schedule of Fair Market Values for Lands, Buildings, Machinery, Plants and Trees in the City of Baguio as prepared and submitted by the City Assessor, hereto attached and made an integral part of this Ordinance as Annex "A",hereby approved and adopted, subject to amendment of particular land valuations to make its implementation just and equitable. Passed. Hon. Claravall, Hon. Tabanda, Hon. Nevada, Hon. Bilog and Hon. Yangot abstained from voting. SECTION 2. Assessment Levels . The assessment levels to be applied to the schedule of Values as approved and adopted under Section 1 of this Ordinance is hereby fixed at 2.5% less than the maximum rates prescribed under Section 218 of the Local Government Code of 1991 and Article 309 of its Implementing Rules and Regulations. Passed. Hon. Bilog abstained from voting. SECTION 3. Staggered Implementation of Increase in Real Property Taxes . The implementation of the increase in Real Property Taxes shall be staggered over a period of three years such that 35% will be applied during the first year, another 35% will be applied during the second year, and the remaining 30% will be applied during the third year. For purposes of this Ordinance, the following percentages of implementation shall be followed: 1996 35% 1997 70% 1998 100% Passed. Hon. Weygan voted against. SECTION 4. This Ordinance shall take effect on January 1, 1996. CERTIFIED CORRECT: (SGD.) DANIEL T. FARIAS Vice Mayor and Presiding Officer ATTESTED: (SGD.) RONALDO B. PEREZ City Secretary APPROVED: (SGD.) MAURICIO G. DOMOGAN City Mayor ANNEX A Schedule of Values on Building 1995 Assessment Levels (Local Government Code) (a) On Lands: Class Assessment Levels Residential 20% Agricultural 40% Commercial 50% Industrial 50% Mineral 50% Timberland 20% (b) On buildings and Other Structures: (1) Residential FAIR MARKET VALUE OVER NOT OVER ASSM'T. LEVELS P175,000.00 0% P175,000.00 300,000.00 10% 300,000.00 500,000.00 20% 500,000.00 750,000.00 25% 750,000.00 1,000,000.00 30% 1,000,000.00 2,000,000.00 35% 2,000,000.00 5,000,000.00 40% 5,000,000.00 10,000,000.00 50% 10,000,000.00 60% (2) Commercial/Industrial FAIR MARKET VALUE OVER NOT OVER ASSM'T. LEVELS P300,000.00 30% P300,000.00 500,000.00 35% 500,000.00 750,000.00 40% 750,000.00 1,000,000.00 50% 1,000,000.00 2,000,000.00 60% 2,000,000.00 5,000,000.00 70% 5,000,000.00 10,000,000.00 75% 10,000,000.00 80% (3) Machineries CLASS ASSM'T. LEVELS Agricultural 40% Residential 50% Commercial 80% Industrial 80% (4) On Special Class: The assessment levels for all lands, buildings, machineries and other improvements: ACTUAL USE ASSESSMENT LEVELS Cultural 15% Scientific 15% Hospital 15% Local Water Districts 10% Government-owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power 10% CLASSIFICATION OF BUILDINGS Building shall generally be classified in accordance with the structural designs for which they are intended regardless of their actual use, such as residential, commercial, industrial, or farm house. The classification system should embrace only such structures as are commonly found in the city or province. Under the use design, classification, building may be group into the following: A. RESIDENTIAL BUILDINGS (a) One-family Dwelling (b) Two-family Dwelling (c) Multi-family Dwelling B. COMMERCIAL BUILDINGS (a) Store (b) Office (c) Bank (d) Theater (e) Hotel (f) Motel (g) Service Station (h) Public Garage, etc. C. INDUSTRIAL BUILDINGS (a) Factory (b) Sawmill (c) Warehouse D. FARM HOUSES (a) Barn (b) Poultry (c) Stable (d) Hog House (e) Green House For purposes of establishing schedule of base unit construction cost, each type of building (say one-family dwelling) shall further be grouped in accordance with the kind and quality of material used on the constructions, such as Type I-A to B, Type II-A to D, Type III-A to D and Type IV. Standard base specifications shall then be prepared, defining and describing each type of building as shown in the sample hereunder: TYPES OF BUILDINGS I. Reinforced concrete: a) Structural Steel reinforced concrete columns, beams, the rest same as I-B. b) Columns, beams, walls, floors and roofs all reinforced concrete. c) Same as "B" but walls are hollow blocks reinforced concrete on tile roofing. II. Mixed concrete: a) Concrete columns, beams and walls but wooden floor joist, flooring and roof framing and G.I. roofing; even if walls are in the CHB Kitchen and I & G are in reinforced concrete slabs. b) Concrete columns and beams but hollow blocks walls and G.I. roofings. c) Concrete columns and wooden beams, hollow block walls, wooden floor joists, floor and roof framing; and G.I. roofing and second floor wooden walls. III. Strong Materials: a) First group wooden structural framings, floorings, hollow block walls and G.I. roofing. b) First group wooden structural framings, floorings and hollow block walls on the first floor, and tanguile walls on the second floor and G.I. roofing. c) First group wooden posts, girders, girts, window sills and heads, apitong floor joists and roof framing, tanguile floor and sidings and G.I. roofing. d) Third group wooden structural framings, floorings and sidings and G.I. roofing. e) Same as "D" but structural members are standard. The temporary makeshift structure this is the barong-barong type. ADDITION AND DEDUCTION FACTORS Structures falling under one classification are not all exact replica of each other, or of the standard adopted in the preparation of the schedule of values. It follows therefore that their values are not exactly equal, even if their area and classification may be the same. The compensate for this difference in the value, a set of adjustment factors must be prepared, to go with the schedule. It should only treat items that are commonly found deviating from the standard and may be expressed as schedule of the base unit construction cost list in the schedule. Addition and deduction factors may be prepared by the quantitative analysis method. Sample of the Addition and Deduction Factors of the schedule of base unit cost are shown below: EXTRA ITEMS AS COMPONENT PART OF BUILDINGS: 1. Carport 30% of Base Unit Value 2. Mezzanine 60% of Base Unit Value 3. Porch 40% of Base Unit Value 4. Balcony 45% of Base Unit Value 5. Garage 45% of Base Unit Value 6. Terrace Covered 35-40% of Base Unit Value Open 20% of Base Unit Value 7. Deck Roof Covered 35-40% of Base Unit Value Open 20% of Base Unit Value 8. Basement Residential 70% of Base Unit Value High rise building 20% of Base Unit Value 9. Pavements Tennis Court P50-60 per sq.m. Concrete: 10 cm. thick P60 per sq.m. 15 cm. thick P65 per sq.m. 20 cm. thick P100 per sq.m. Asphalt: 1 Course P40 per sq.m. 2 Course P65 per sq.m. 3 Course P90 per sq.m. 10. Floor Finishes a) Marble Slabs P220-320 per sq.m. b) Marble Tiles P130-150 per sq.m. c) Crazy Cut Marbles P100 per sq.m. d) Granolithic P60 per sq.m. e) Narra P60-80 per sq.m. f) Yakal P60 per sq.m. g) Narra/Fancy Wood Tiles P60-80 per sq.m. h) Ordinary Wood Tiles P40 per sq.m. i) Vinyl Tiles P30 per sq.m. j) Washout Pebbles P30 per sq.m. 11. Wallings a) Use the same rate for floor finishing in a, b, c, and i, as indicated above. b) Double Walling Ordinary Plywood P30 per sq.m. c) Double Walling Narra Panelling P45 per sq.m. d) Glazed White Tiles P30 per sq.m. e) Glazed Colored Tiles P60 per sq.m. f) Fancy Tiles P80 per sq.m. g) Synthetic Tiles P40 per sq.m. h) Bricks P50 per sq.m. 12. Special Panels a) Glass with Wooden Frames P200 per sq.m. b) Glass with Aluminum Frames P300 per sq.m. (For tinted glass, add) P50 per sq.m. 13. Ceiling a) Ordinary Plywood P30 per sq.m. b) Luminous Ceiling P150 per sq.m. c) Acoustic P140 per sq.m. d) Special Finish P150 per sq.m. 14. Fence a) Wood P30-40 per sq.m. b) CHB 10 cm thick P50-60 per sq.m. 15 cm thick P75-80 per sq.m. 20 cm thick P100 per sq.m. c) Reinforced Concrete P150-160 per sq.m. d) Steel Grills P200-220 per sq.m. e) Interlink Wire P15 per sq.m. 15. Excess Heights a) Residential and Commercial Add 20% of Base Value for every meter in excess of three (3) meters b) Bodega and Factory Add 15% of Base Value for every meter in excess of 4.50 meters 16. Extra T & B Ordinary P7,000/unit 17. Foundation P100 x total floor area less floor area of 1st and 2nd piles driver 18. Piles P200 per linear meter of pile driven 19. Painting If the building is not painted deduct ten (10%) percent of the basic rate 20. Second Hand Materials If the building has used Second-Hand materials, deduct five to ten (5-10%) percent Fireplace P8,000.00 Outside Stairs Concrete 500 per sq.m. Wooden 400 per sq.m. Proposed Schedule of Value for 1996