DOF-NTRC Survey Questionnaires for Local Treasurers and Assessors in the National Capital Region (NCR)

January 21, 2016 BLGF MEMORANDUM CIRCULAR NO. 003-16 TO : All City and Municipal Treasurers and Assessors of the National Capital Region (NCR) SUBJECT : DOF-NTRC Survey Questionnaires for Local Treasurers and Assessors in the National Capital Region (NCR) The National Tax Research Center (NTRC) of the Department of Finance (DOF) is developing the "Short Guide to Philippine Local Taxes," which is a study on the present taxes, fees and charges imposed by local government units (LGUs), as well as on best practices in local tax administration and real property appraisal and assessment. The Survey Questionnaires on (i) the imposition and utilization of the taxing and other revenue raising powers; and (ii) appraisal and assessment practices of LGUs in the NCR are attached to be accomplished by the concerned local treasurers and assessors. In this regard, please properly accomplish the questionnaires and extend your assistance to the NTRC in realizing this worthy undertaking. Mr. Mark Lester L. Aure, Supervising Tax Specialist of the NTRC, will coordinate with you regarding this matter. Should there be any query or clarification, please contact Mr. Aure at telephone no. 527-4128 or e-mail at [emailprotected]. Thank you for your cooperation. (SGD.) JOCELYN T. PENDON OIC-Executive Director ATTACHMENT National Tax Research Center Harbor Centre II 23rd Street Cor. Delgado Street Port Area Manila January 18, 2015 Ms. Jocelyn T. Pendon OIC-Executive Director Bureau of Local Government Finance 8th Flr. EDPC Bldg., BSP Complex Malate, Manila Dear Director Pendon : The National Tax Research Center is preparing a "Short Guide to Philippine Local Taxes". In this regard, we are undertaking a survey on the imposition and utilization of local government units (LGUs) of their taxing and other revenue raising powers. Specifically, the study will determine the present taxes, fees and charges imposed by LGUs as well as the best practices in local tax administration. aDSIHc In this connection, we would like to request your assistance by endorsing our questionnaires to the City and Municipal Assessors and Treasurers in the National Capital Region (NCR) to ensure high percentage of response. We are also requesting your endorsement of this survey through a memorandum addressed to our respondent Assessors and Treasurers. We intend to send the questionnaires on 18 January 2016 to our respondents for them to accomplish within two weeks. We look forward to your valuable assistance. Very truly yours, (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director Name of LGU : __________________________________________ Income Classification : __________________________________________ Questionnaire for City Treasurers Including Municipal Treasurer in Metro Manila 1. Please indicate whether you impose the maximum tax rates under the LGC or not. Taxes Maximum Rates Do you impose the If no, please specify under LGC maximum rates? the actual tax rates Yes No imposed 1. Real Property Tax a. Basic 2% b. SEF 1% c. Idle Land Tax 5% d. Special Levy 60% of Cost of Project 2. Tax on the Transfer 75% of 1% of of Real Property Total consideration Ownership or Fair Market Value whichever is higher 3. Tax on the Business 75% of 1% of gross of Printing and annual receipts Publication 4. Franchise Tax 75% of 1% of gross annual receipts 5. Tax on Sand, Gravel 15% of Fair and Other Quarry Market Value Resources 6. Professional Tax PhP300/Professional 7. Amusement Tax 10% of Gross receipts from admission 8. Annual Fixed Tax PhP750/Delivery on Delivery Trucks truck or Vans 9. Tax on Business: a. On manufacturers, etc. Gross receipts (Php) Less than 10 thousand PhP247.00 10 thousand or more but PhP330.00 less than 15 thousand 15 thousand or more but PhP453.00 less than 20 thousand 20 thousand or more but PhP660.00 less than 30 thousand 30 thousand or more but PhP990.00 less than 40 thousand 40 thousand or more but PhP1,237.00 less than 50 thousand 50 thousand or more but PhP1,980.00 less than 75 thousand 75 thousand or more but PhP2,750.00 less than 100 thousand 100 thousand or more but PhP3,300.00 less than 150 thousand 150 thousand or more but PhP4,125.00 less than 200 thousand 200 thousand or more but PhP5,775.00 less than 300 thousand 300 thousand or more but PhP8,250.00 less than 500 thousand 500 thousand or more but PhP12,000.00 less than 750 thousand 750 thousand or more but PhP15,000.00 less than 1 million 1 million or more but less PhP20,625.00 than 2 million 2 million or more but less PhP24,750.00 than 3 million 3 million or more but less PhP29,700.00 than 4 million 4 million or more but less PhP34,650.00 than 5 million 5 million or more but less PhP36,526.50 than 6.5 million 6.5 million or more At a rate not exceeding fifty-six and one fourth (56 1/4%) of one percent (1%) b. On Wholesalers, etc. Gross Receipts (PhP) Less than thousand PhP27.00 1 thousand or more but PhP49.50 less than 2 thousand 2 thousand or more but PhP75.00 less than 3 thousand 3 thousand or more but PhP108.00 less than 4 thousand 4 thousand or more but PhP150.00 less than 5 thousand 5 thousand or more but PhP181.00 less than 6 thousand 6 thousand or more but PhP214.50 less than 7 thousand 7 thousand or more but PhP247.50 less than 8 thousand 8 thousand or more but PhP280.50 less than 10 thousand 10 thousand or more but PhP330.00 less than 15 thousand 15 thousand or more but PhP412.00 less than 20 thousand 20 thousand or more but PhP495.00 less than 30 thousand 30 thousand or more but PhP660.00 less than 40 thousand 40 thousand or more but PhP990.00 less than 50 thousand 50 thousand or more but PhP1,425.00 less than 75 thousand 75 thousand or more but PhP1,980.00 less than 100 thousand 100 thousand or more but PhP2,805.00 less than 150 thousand 150 thousand or more but PhP3,630.00 less than 200 thousand 200 thousand or more but PhP4,950.00 less than 300 thousand 300 thousand or more but PhP6,600.00 less than 500 thousand 500 thousand or more but PhP9,900.00 less than 750 thousand 750 thousand or more but PhP13,200.00 less than 1 million 1 million or more but PhP15,000.00 less than 2 million 2 million or more At a rate not exceeding seventy-five percent (75%) of one percent (1%) c. On exporters and on 1/2 of rates for manufacturers, etc. manufacturers, of essential wholesalers or commodities retailers d. On retailers Gross Receipts (PhP) 400 thousand or less 3% More than 400 thousand 1 1/2% e. On contractors, etc. Gross Receipts Less than 5 thousand PhP41.25 5 thousand or more but PhP92.40 less than 10 thousand 10 thousand or more but PhP156.75 less than 15 thousand 15 thousand or more but PhP247.50 less than 20 thousand 20 thousand or more but PhP412.50 less than 30 thousand 30 thousand or more but PhP577.50 less than 40 thousand 40 thousand or more but PhP825.00 less than 50 thousand 50 thousand or more but PhP1,320.00 less than 75 thousand 75 thousand or more but PhP1,980.00 less than 100 thousand 100 thousand or more but PhP2,970.00 less than 150 thousand 150 thousand or more but PhP3,960.00 less than 200 thousand 200 thousand or more but PhP5,445.00 less than 250 thousand 250 thousand or more but PhP6,930.00 less than 300 thousand 300 thousand or more but PhP9,240.00 less than 400 thousand 400 thousand or more but PhP12,375.00 less than 500 thousand 500 thousand or more but PhP13,875.00 less than 750 thousand 750 thousand or more but PhP15,375.00 less than 1 million 1 million or more but less PhP17,250.00 than 2 million 2 million or more At a rate not exceeding seventy-five (75%) of one percent (1%) f. On banks, etc. 75% of 1% of gross receipts g. On peddlers PhP75.00 per peddler 2. Has your local unit exercised the authority under Sec. 186 to levy taxes on any base or subject not otherwise specifically enumerated in the Code or taxed under NIRC? ATICcS [ ] Yes [ ] No If Yes , please indicate the taxable subject, rate and base. Taxable Subject/Entity Rate/Base _______________________ __________________ _______________________ __________________ _______________________ __________________ _______________________ __________________ _______________________ __________________ 3. Has your Sanggunian enacted ordinances granting tax exemptions, incentives or reliefs pursuant to Sec. 192 of the LGC? [ ] Yes [ ] No If Yes , please indicate the beneficiaries/grantees of said exception(s), incentive(s) or relief(s); the reason(s) for granting the tax exemption(s), incentive(s) or relief(s); the date of effectivity and duration of the same as well as the estimated revenue foregone. Beneficiary/ Reason(s) for Date of Estimated Grantee granting tax Effectivity and Foregone exemption/incentive/ Duration Revenue relief _________________ _________________ ________________ ____________ _________________ _________________ ________________ ____________ _________________ _________________ ________________ ____________ _________________ _________________ ________________ ____________ _________________ _________________ ________________ ____________ If No , please state the reason(s) for not granting exemptions, incentives or reliefs. __________________________________________________________________ ___________________________________________________________________ _________________________________________________________ 4. Has your Sanggunian enacted an ordinance imposing the idle land tax in accordance with the LGC? [ ] Yes. If Yes, please indicate the present idle land tax rate and the collections from 2010 to 2014. Present idle land tax rate ________________ Tax Year Collection _____________________ 2010 _____________________ 2011 _____________________ 2012 _____________________ 2013 _____________________ 2014 [ ] No. If No, what is your reason for not enacting an ordinance? Reason(s): _____________________________________________ _____________________________________________ _____________________________________________ ___________________ 5. Does your local government collect a special levy on lands benefited by public works projects or improvement that the local government has undertaken? [ ] Yes. If Yes , please specify the nature of the project(s), date completed and the revenue collected in 2010, 2011, 2012, 2013 and 2014. Year Nature of Project(s) Date Completed Revenue Collected 2010 _________________ _______________ __________________ 2011 _________________ _______________ __________________ 2012 _________________ _______________ __________________ 2013 _________________ _______________ __________________ 2014 _________________ _______________ __________________ [ ] No. If No , please check the primary reason. [ ] The beneficiaries are incapable of paying the special levy [ ] No infrastructure project was undertaken in the local unit that would warrant the imposition of the special levy [ ] Political unpopularity of an additional levy on land [ ] The local government can afford to shoulder the cost of the project [ ] Unwillingness of the concerned property owners to shoulder the special levy [ ] Others, please specify: ____________________________________________ ____________________________________________ ____________________________________________ ____________________ 6. Has your local unit imposed the Socialized Housing Tax authorized under the Urban Development and Housing Act (RA 7279)? TIADCc [ ] Yes. If Yes , please indicate the tax base, rate and total collection for the following years: Year Tax Base Tax Rate Tax Collection 2010 _____________ ____________ ________________ 2011 _____________ ____________ ________________ 2012 _____________ ____________ ________________ 2013 _____________ ____________ ________________ 2014 _____________ ____________ ________________ [ ] No. If No , please check the primary reason. [ ] Not aware of it [ ] Sanggunian has not enacted an ordinance [ ] Our local unit has not undertaken a socialized housing project [ ] Others, please specify: _________________________________________________ _________________________________________________ _________________ 7. Has your local unit exercised the authority to grant tax discounts for advanced and prompt payment of the real property tax? [ ] Yes. If Yes , please indicate the rate of discount for: a) advance payment b) prompt payment [ ] No. If No , please state the reason therefor: ____________________________________________________________ ____________________________________________________________ _____________________ 8. What methods or steps have you adopted to enhance collections of the taxes mentioned below? Please check applicable answers. Real Property Tax [ ] Improved linkage between assessor's office and treasurer's office [ ] Conducted tax information campaigns [ ] Went on a house-to-house collection [ ] Sent demand letters to delinquent taxpayers [ ] Utilized the civil remedies prescribed under the Code [ ] Deputized barangay officials in RPT collection [ ] Undertook tax mapping project [ ] Computerized revenue operations [ ] Posted a list of delinquent taxpayers on conspicuous places [ ] Granted rewards/recognition to top taxpayers [ ] Accepted payment thru banks, etc. [ ] Others, please mention innovative or new practice or methods adopted in your local unit ___________________________________________________ ___________________________________________________ ___________________________________________________ ________________ Other local taxes [ ] Imposed maximum tax rates [ ] Conducted a comprehensive identification of taxable businesses and activities [ ] Sent collection bills [ ] Conducted tax information campaigns [ ] Sent demand letters to delinquent taxpayers [ ] Posted a list of delinquent taxpayers on conspicuous places [ ] Utilized the civil remedies prescribed under the Code [ ] Involved barangays in tax collection and campaigns [ ] Computerized revenue operations [ ] Granted rewards/recognition to top taxpayers [ ] Others, please mention innovative or new practice or methods adopted in your local unit ___________________________________________________ ___________________________________________________ ___________________________________________________ ________________ Name of LGU : __________________________________________ Income Classification : __________________________________________ Questionnaire for City Assessors Including Municipal Assessor in Metro Manila 1) Has an ordinance adopting/revising the Schedule of Market Values (SMV) in accordance with Sec. 219 of the 1991 LGC been enacted by your Sanggunian? AIDSTE [ ] Yes If Yes, state the year that the ordinance was approved. Year approved: _____________ [ ] No If No, please state the reason(s) [ ] Requirement of joint preparation of Schedule of Market Values under PD 921 [ ] Others, please specify. ______________________________________________________ ______________________________________________________ ______________________________________________________ _____________________ 2) Prior to the latest SMV revision, when was the last general revision of property assessments conducted in your locality? Latest Revision Prior to Latest Revision Year Started ________________ ____________________ Year Completed ________________ ____________________ Year Implemented ________________ ____________________ Not yet implemented ________________ ____________________ 3) Please indicate the current assessment levels applied by your local unit on the following real properties; a) Lands, Machineries and Special Classes: Land Under the LGC Present (Maximum Levels) (Actual assessment levels applied) Residential 20% Agricultural 40% Commercial 50% Industrial 50% Mineral 50% Timberland 20% Machineries Agricultural 40% Residential 50% Commercial 80% Industrial 80% Special Classes Cultural 15% Scientific 15% Hospital 15% Local Water Districts 10% GOCCs engaged in the supply 10% and distribution of water and/ or generation and transmission of electric power b) Building, Structures and Other Improvements: Over Not Over Under the LGC Present (actual (Maximum Levels) assessment level applied) Residential PhP175 T 0% PhP175 T 300 T 10% 300 T 500 T 20% 500 T 750 T 25% 750 T 1 M 30% 1 M 2 M 35% 2 M 5 M 40% 5 M 10 M 50% 10 M 60% Agricultural PhP300 T 25% PhP300 T 500 T 30% 500 T 750 T 35% 750 T 1 M 40% 1 M 2 M 45% 2 M 50% Commercial/ Industrial PhP300 T 30% PhP300 T 500 T 35% 500 T 750 T 40% 750 T 1 M 50% 1 M 2 M 60% 2 M 5 M 70% 5 M 10 M 75% 10 M 80% Timberland PhP300 T 45% PhP300 T 500 T 50% 500 T 750 T 55% 750 T 1 M 60% 1 M 2 M 65% 2 M 70% 4) Please indicate the total assessed value for each type of real property exempt from the real property tax; and check which real property exemption(s) should be retained or withdrawn and your primary reason. AaCTcI Type of Total Retain Withdraw Reasons for Property Assessed Retaining/ Value Withdrawing (PhP) Owned by: - Republic of the Philippines - Cooperatives Used for: - Educational Purposes - Charitable Purposes - Religious Purposes Machineries and Equipment Actually and Exclusively Used by: (a) Local water districts (b) GOCCs engaged in the supply and distribution of water and generation and transmission of electric power Machineries and Equipment Used for Pollution Control and Environmental Protection