Use of the Assessment Data on Properties with Restrictions as Target Parameter for Real Property Tax Collections

August 29, 2016 BLGF MEMORANDUM CIRCULAR NO. 019-16 TO : All Bureau Officials, Regional Directors and Personnel, Provincial, City and Municipal Treasurers and Assessors and Others Concerned SUBJECT : Use of the Assessment Data on Properties with Restrictions as Target Parameter for Real Property Tax Collections This Memorandum Circular is issued to clarify the use of the assessment data on Properties with Restrictions as target parameter for real property tax (RPT) collections under Operational Performance Goal (OPG) 1 of the Performance Standards for Local Treasurers and Assistant Treasurers, in relation to Department Order (DO) No. 006-2015 (Performance Standards for Local Treasurers and Assistant Treasurers), dated 20 January 2015, as well as for other performance evaluation and monitoring purposes. Section 5.1.3.1 of the said DO provides that in determining the RPT target for OPG 1, the Current Year Collectibles and the Cumulative Collectible Delinquencies for the last five (5) years based on the Quarterly Report on Real Property Assessments (QRRPA) as reported by the local assessors shall be computed. It is hereby clarified that current year collectibles shall refer to total assessed value less the assessed value of properties with restrictions. Likewise, in computing the cumulative collectible delinquencies, the data indicated under properties with restrictions for the last five (5) years are also deducted from total RPT collectibles for the indicated year. To further clarify, RPT target shall be computed as follows: Thus: RPTT = (TCC x 80%) + (Cumulative 5-Year Delinquencies x 35%) TCC = (TCAV - TAVPR) x Tax Rate Cumulative 5-Year Delinquencies = [(TCAV - TAVPR) x Tax Rateyear t - 5 - RPTCCyear t - 4] + [(TCAV - TAVPR) x Tax Rateyear t - 4 - RPTCCyear t - 3] + [(TCAV - TAVPR) x Tax Rateyear t - 3 - RPTCCyear t - 2] + [(TCAV - TAVPR) x Tax Rateyear t - 2 - RPTCCyear t - 1] + [(TCAV - TAVPR) x Tax Rateyear t - 1 - RPTCCyear t] Where: RPTT Real Property Tax Target TCC Total Current Collectibles TCAV Total Current Assessed Values TAVPR Total Assessed Value of Properties with Restrictions RPTCC RPT Current Collections The TAVPR includes the total assessed values of properties under CARP, under court litigation, road lots, open spaces and other amenities of subdivisions which have not been officially donated to local government units (LGUs), etc., wherein the local treasurers are temporarily prevented from collecting the RPT. As such, the TAVPR should be excluded/deducted from the TCAV which determines the RPTT and collection performance of local treasurers. It is understood, however, that properties with restrictions remains taxable, demandable and continue to be subject of RPT, and shall form part of the actual collectibles that shall accrue to the LGU annually, unless otherwise provided by law or upon proper disposition/settlement of the subject properties by competent authority. CAIHTE For reporting purposes, pursuant to Department Order No. 059-2015, it shall be the duty of the local assessors to monitor and justify the changes in the TAVPR with the end view that local treasurers may collect RPT from these properties. It is, therefore, imperative for local assessors to maintain up-to-date records/documents pertaining to properties with restrictions. The BLGF Local Assessment Operations Division (LAOD), together with the Regional counterparts, shall regularly monitor the QRRPA submitted by the LGUs in accordance with this Circular. Please be guided accordingly. (SGD.) NIO RAYMOND B. ALVINA OIC Executive Director