An Ordinance Amending Ordinance No. 2007-033 Entitled "Real Property Tax Ordinance of the City of Catbalogan" by Expressly Incorporating Therein the Provisions of the Local Government Code of 1991 on Appraisal and Assessment of Real Properties for Purposes of Taxation

April 2, 2008 Excerpt Taken from the Minutes of the Regular Session of the Sangguniang Panlungsod, Catbalogan City, Held at the SP Session Hall, Catbalogan City, on April 2, 2008 at 11:05 A.M. ATTENDANCE: PRESENT: Hon. Manuel Van A. Torrevillas City Vice Mayor/Presiding Officer Hon. Justito R. Yulo, Jr. S.P. Member/Min. Flr. Ldr. Hon. Arthur Vaughn M. Zosa S.P. Member/Maj. Flr. Ldr. Hon. Teodoro V. Ilagan S.P. Member/1st Asst. Maj. Flr. Ldr. Hon. Ernesto C. Arcales S.P. Member Hon. Rodolfo T. Aquino S.P. Member/2nd Asst. Maj. Flr. Ldr. Hon. Perfecta M. Sabenecio S.P. Member Hon. Rodrigo C. Perez III S.P. Member/Asst. Min. Flr. Ldr. Hon. Stephany U. Tan ABC Pres./Ex-Officio Member ABSENT: Hon. Herminia S. Cabral S.P. Member (O.B.) Hon. Kristina Cassandra P. Aquino SK Fed. Pres./Ex-Officio Member (O.B.) CATBALOGAN CITY ORDINANCE NO. 003-08 AN ORDINANCE AMENDING ORDINANCE NO. 2007-033 ENTITLED "REAL PROPERTY TAX ORDINANCE OF THE CITY OF CATBALOGAN" BY EXPRESSLY INCORPORATING THEREIN THE PROVISIONS OF THE LO CAL GOV ERNMENT C ODE O F 1 99 1 ON APPRAISAL AND ASSESSMENT OF REAL PROPERTIES FOR PURPOSES OF TAXATION Authors: Hon. Ernesto C. Arcales, Hon. Justito R. Yulo, Jr., Hon. Teodoro V. Ilagan, Hon. Rodrigo C. Perez, III, Hon. Kristina Cassandra Aquino and Hon. Arthur Vaughn M. Zosa Explanatory Note: WHEREAS, the appraisal and assessment of real properties, the levy and collection of realty taxes and the disposition of tax proceeds make up the principal features of a more or less complete real property tax system which, in the typical ordinance on the subject, are evenly provided for and spelled out in sufficient detail; WHEREAS, in the rush for the enactment of Ordinance No. 2007-033, however, too much focus has been put on the levy, collection and disposition aspects of realty tax administration, thus resulting in only one (1) section, out of forty-five (45) touching on the assessment and appraisal angle of realty tax enforcement, therein declared as subject to be determined according to the Local Government Code provisions that are thereby being adopted and made part of the subject ordinance by REFERENCE; and WHEREAS, even if, as in this particular case, the adoption of a provision of law by mere reference in an ordinance is as binding as when the provision itself is expressly reproduced in said enactment, considerations of convenience and style nonetheless call for the amendment of the measure in question by incorporating in its text or body the pertinent appraisal-and-assessment-of-real-property provisions of Republic Act No. 7160. CAIHTE NOW, THEREFORE, Be It enacted by the Sangguniang Panlungsod in session duly assembled that the Real Property Tax Ordinance of the City of Catbalogan, Ordinance No. 2007-033, is hereby amended to read as follows CHAPTER I General Provisions SECTION 1. Scope. This Ordinance shall govern the appraisal and assessment of real property for purposes of taxation, as well as the levy, collection and administration of real property taxes in the City of Catbalogan. Fundamental Principles. The appraisal and assessment of real property for taxation purposes shall be guided by the following fundamental principles: 1. Real property shall be appraised at its current and fair market value; 2. Real property shall be classified for assessment purposes on the basis of its actual use; 3. Real property shall be assessed on the basis of a uniform classification within the City of Catbalogan and its component barangays; 4. The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and 5. The appraisal and assessment of real properties shall be equitable. SECTION 2. Definitions. When used in this Ordinance: a) "Acquisition Cost" for newly-acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of the machinery to its present owner, plus the cost of transportation, handling and installation at the present site; b) "Actual Use" refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof; c) "Ad Valorem Tax" is a levy on real property determined on the basis of a fixed proportion of its value; d) "Agricultural Land" is land devoted principally to the planting of trees, raising of crops, livestock and poultry, dairying, inland fishery, salt making, and other agricultural activities, and is not classified as mineral, timber, residential, commercial or industrial land; e) "Appraisal" is the act or process of determining the value of property as of a specific date for a specific purpose; f) "Assessment" is the act or process of determining the value of a property, or a proportion thereof, subject to tax, including the discovery, listing and appraisal of property; g) "Assessment Level" is the percentage applied to the fair market value to determine the taxable or assessed value of the property; h) "Assessed Value" is the fair market value of the real property multiplied by the assessment level. It is synonymous to "taxable value"; i) "Commercial Land" is land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential land; j) "Depreciated Value" is the value remaining after deducting depreciation from the acquisition cost; k) "Economic life" is the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized; l) "Fair Market Value" is the price at which a property may be sold by a seller who is not compelled to sell and bought by a buyer who is not compelled to buy; m) "Improvement" is a valuable addition made to a property or an amelioration in its condition, amounting to more than mere repair or replacement of parts involving capital expenditures and labor, which is intended to enhance its value, beauty or utility or to adapt it for new or further purposes; n) "Industrial Land" is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, timber, mineral, or residential lands; o) "Machinery" embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily, to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly, and exclusively used to meet the needs of the particular industry, business or activity and which by their very nature and purpose are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes; p) "Mineral Lands" are those lands in which minerals, metallic or non-metallic, exist in sufficient quantity or grade to justify the necessary expenditures to extract and utilize such materials; q) "Reassessment" is the assigning of new assessed values to property, particularly real estate, as the result of a general, partial, or individual appraisal of the property; DETACa r) "Remaining Economic Life" is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless; s) "Remaining Value" is the value corresponding to the remaining useful life of the machinery; t) "Replacement or Reproduction Cost" is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable substitute property, or the cost of reproducing a new replica of the property on the basis of current prices with the same or closely similar materials; u) "Residential Land" is land principally devoted to habitation. CHAPTER II Appraisal and Assessment of Real Property SECTION 3. Appraisal of Real Property. All real property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the City of Catbalogan. SECTION 4. Declaration of Real Property by the Owner or Administrator. It shall be the duty of all persons, natural or judicial, owning or administering real property, including the improvements thereon, in the City of Catbalogan, or their duly authorized representative, to prepare, or cause to be prepared, and file with the City Assessor, a sworn statement declaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair value of the real property, as determined by the declarant. Such declaration shall contain a description of the property in sufficient detail to enable the City Assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein shall be filed with the City Assessor once every three (3) years within the period from January first (1) to June (30th) commencing with the calendar year 2009. SECTION 5. Duty of Person Acquiring Real Property or Making Improvement Thereon. It shall also be the duty of any person, or his authorized representatives, acquiring at any time real property or making any improvement on real property, to prepare, or cause to be prepared, and file with the City Assessor, a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property, or upon completion or occupancy of the improvement, whichever comes earlier. SECTION 6. Declaration of the Real Property by the City Assessor. When any person, natural or juridical, by whom real property is required to be declared under Section 5 hereof, refuses or fails for any reason to make such declaration within the time prescribed, the City Assessor shall himself declare the property in the name of the defaulting owner, if known, or against an unknown owner, as the case may be, and shall assess the property for taxation in accordance with the provisions of this Ordinance. No oath shall be required of a declaration thus made by the City Assessor. SECTION 7. Listing of Real Property in the Assessment Rolls. (a) There shall be prepared and maintained by the City Assessor an assessment roll wherein shall be listed all real properties, whether taxable or exempt, located within the territorial jurisdiction of the City of Catbalogan. Real property shall be listed, valued and assessed in the name of the owner or administrator, or any one having legal interest in the property. (b) The undivided property of a deceased person may be listed, valued and assessed in the name of the estate or of the heirs and devisees without designating them individually; and undivided real property other than that owned by a deceased may be listed, valued, and assessed in the name of one or more co-owners: Provided, however that such heir, devisee, or co-owner shall be liable severally and proportionately for all obligations imposed by this Ordinance and the payment of the real property tax with respect to their undivided property. The real property of a corporation, partnership, or association shall be listed, valued and assessed in the same manner as that of an individual. (c) Real property owned by the Republic of the Philippines, its instrumentalities and political subdivisions, the use of which has been granted, for consideration or otherwise, to a taxable person, shall be listed, valued and assessed in the name of the possessor, grantee or of the public entity if such property has been acquired or held for resale or lease. SECTION 8. Proof of Exemption of Real Property from Taxation. Every person by or for whom real property is declared, who shall claim tax exemption for such property under this Ordinance shall file with the City Assessor within thirty (30) days from the date of the declaration of real property sufficient documentary evidence in support of such claim including corporate charters, title of ownership, articles of incorporation, by laws, contracts, affidavits, certifications and mortgage deeds. If the required evidence is not submitted within the period herein prescribed, the property shall be listed as taxable in the assessment roll. However, if the property shall be proven to be tax exempt, the same shall be dropped from the assessment roll. SECTION 9. Real Property Identification System. All declarations of real property made under the provisions of this Ordinance shall be kept and filed under a uniform identification system to be established by the City Assessor. aDSIHc SECTION 10. Notification of Transfer of Real Property Ownership. Any person who shall transfer real property ownership to another shall notify the City Assessor within sixty (60) days from the date of such transfer. The notification shall include the mode of transfer, the description of property alienated, the name and address of the transferee. SECTION 11. Duty of Registrar of Deeds to Apprise Assessor of Real Property Listed in Registry. (a) To ascertain whether or not real property entered in the Registry of Property has escaped discovery and listing for the purpose of taxation, the Registrar of Deeds shall prepare and submit to the City Assessor, within six (6) months from the date of effectivity of this Ordinance and every year thereafter an abstract of his registry which shall include brief but sufficient description of the real properties entered therein, their present owners, and the date of their most recent transfer or alienation accompanied by copies of corresponding deeds of sale, donation, or partition or other forms of alienation. (b) It shall also be the duty of the Registrar of Deeds to require every person who shall present for registration a document of transfer, alienation, or encumbrance of real property to accompany the same with a certificate to the effect that the real property subject to the transfer, alienation, or encumbrance, as the case may be, has been fully paid of all real property taxes due thereon. Failure to provide such certificate shall be a valid cause for the Registrar of Deeds to refuse the registration of the document. SECTION 12. Duty of Official Issuing Building Permit or Certificate of Registration of Machinery. Any public official or employee who may now or hereafter be required by law or regulation to issue to any person a permit for the construction, addition, repair, or renovation of a building, or permanent improvement on land, or a certificate of registration for any machinery, including machines, mechanical contrivances, and apparatus attached or affixed to a land or to another real property, shall transmit a copy of such permit or certificate within thirty (30) days of its issuance to the City Assessor. SECTION 13. Duty of Geodetic Engineers to Furnish Copy of Plans. It shall be the duty of all geodetic engineers, public or private, to furnish free of charge to the City Assessor with a white or blue print copy of each of all approved original or subdivision plans or maps of surveys executed by them within thirty (30) days from receipt of such plans from the Lands Management Services, the Land Registration Authority, or the Housing and Land Use Regulatory Board, as the case may be. SECTION 14. Preparation of Schedule of Fair Market Values. Before the general revision of property assessment is made pursuant to the provisions of this ordinance, there shall be prepared a schedule of fair market values by the City Assessor for the different classes of property situated in Catbalogan City for enactment into an ordinance by the Sangguniang Panlungsod. The schedule of fair market values shall be published in a newspaper of general circulation in the city and shall be posted in the city hall and in two other conspicuous public places therein. SECTION 15. Authority of Assessor to Take Evidence. For the purpose of obtaining information on which to base the market value of any real property, the City Assessor or his deputy may summon the owners of the property to be affected or persons having legal interest therein and witnesses, administer oaths, and take deposition concerning the property, its ownership, amount, nature and value. SECTION 16. Amendment of Schedule of Fair Market Values. The City Assessor may recommend to the Sangguniang Panlungsod amendments to correct errors in valuation in the schedule of fair market values. The Sanggunian shall, by ordinance, act upon the recommendation within ninety (90) days from receipt thereof. SECTION 17. Classes of Real Property for Assessment Purposes. For purposes of assessment, real property shall be classified as residential, agricultural, commercial, industrial, mineral, timber land or special. SECTION 18. Special Classes of Real Properties. All lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water districts, and government-owned or controlled corporations rendering essential public services in the supply and distribution of water and/or generation and transmission of electric power shall be classified as special. SECTION 19. Actual Use of Real Property as Basis for Assessment. Real Property shall be classified, valued and assessed on the basis of its actual use regardless of where located, whoever owns it, and whoever uses it. SECTION 20. Assessment Levels. The assessment levels to be applied to the fair market value of real property to determine its assessed value are hereby fixed in accordance with the provisions of Republic Act No. 7160 otherwise known as the Local Government Code of 1991, as follows: ETHIDa (a) On Lands: Class Assessment Level 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 Assessment 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) Agricultural Fair Market Value Over Not Over Assessment Levels P300,000.00 25% P300,000.00 500,000.00 30% 500,000.00 750,000.00 35% 750,000.00 1,000,000.00 40% 1,000,000.00 2,000,000.00 45% 2,000,000.00 50% (3) Commercial/Industrial Fair Market Value Over Not Over Assessment 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% (c) On Machineries Class Assessment Level Agricultural 40% Residential 50% Commercial 80% Industrial 80% (1) On Special Classes: The assessment levels for lands, buildings, machineries and other improvements. Actual Use Assessment Level Cultural 15% Scientific 15% Hospital 15% Local Water Districts 10% Government-owned or Controlled Corporations engaged in the Supply distribution of water and/or generation and transmission of electric power 10% SECTION 21. General Revision of Assessments and Property Classification. Beginning with the calendar year 2011, the City Assessor shall undertake a general revision of real property assessments in the City to take effect January 1, 2012, and once every three (3) years thereafter. SECTION 22. Valuation of Real Property. In cases where (a) real property is declared and listed for taxation purposes for the first time; (b) there is an ongoing general revision of property classification and assessment; or (c) a request is made by the person in whose name the property is declared, the City Assessor or his duly authorized deputy shall, in accordance with the provisions of this ordinance, make a classification, appraisal, and assessment of the real property listed and described in the declaration irrespective of any previous assessment of taxpayer's valuation thereon: Provided, however, that the assessment of real property shall not be increased oftener than once every three (3) years except in case of new improvements substantially increasing the value of said property or of any change in its actual use. SECTION 23. Date of Effectivity of Assessment or Reassessment. All assessments or reassessments made after the first (1st) day of January of any year shall take effect on the first (1st) day of January of the succeeding year. Provided, however, that the reassessment of real property due to its partial or total destruction, or to a major change in its actual use or to any great and sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or to any other abnormal cause, shall be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the beginning of the next quarter following the reassessment. SECTION 24. Assessment of Property Subject to Back Taxes. Real property declared for the first time shall be assessed for taxes for the period during which it would have been liable but in no case for more than ten (10) years prior to the date of initial assessment: Provided, however, that such taxes shall be computed on the basis of the applicable schedule of values in force during the corresponding period. If such taxes are paid on or before the end of the quarter following the date the notice of assessment was received by the owner, or his representative, no interest for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of two percent (2%) per month or a fraction thereof from the date of the receipt of the assessment until such taxes are duly paid. SECTION 25. Notification of New or Revised Assessment . When real property is assessed for the first time or when an existing assessment is increased or decreased, the City Assessor shall, within thirty (30) days, give a written notice of such new or revised assessment to the person in whose name the property is declared. The notice may be delivered personally or by registered mail through the assistance of the punong barangay to the last known address of the person to be served. cSEDTC SECTION 26. Appraisal and Assessment of Machinery . a) The fair market value of brand new machinery shall be the acquisition cost. In all other cases, the fair market value shall be determined by dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost. b) If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling and installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency exchange rates as fixed by the Bangko Sentral ng Pilipinas. SECTION 27. Depreciation Allowance for Machinery. For purposes of assessment, a depreciation allowance shall be made for machinery at a rate not exceeding five percent (5%) of its original cost or its replacement or reproduction cost, as the case may be, for each year of use: Provided, however, that the remaining value for all kinds of machinery shall be fixed at not less than twenty percent (20%) of such original, replacement, or reproduction cost for so long as the machinery is useful and in operation. CHAPTER III Assessment Appeals SECTION 28. City Board of Assessment Appeals. Any owner or person having legal interest in the property who is not satisfied with the action of the City Assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents in support of the appeal. SECTION 29. Organization, Powers, Duties, and Functions of the City Board of Assessment Appeals. (a) The City Board of Assessment Appeals shall be composed of the Registrar of Deeds, as Chairman, the City Prosecutor and the City Engineer as members, who shall serve as such in an ex-officio capacity without additional compensation. (b) The chairman of the Board shall have the power to designate any employee of the city to serve as secretary of the Board also without additional compensation. (c) The chairman and members of the City Board of Assessment Appeals shall assume their respective positions without need of further appointment or special designation. They shall take an oath or affirmation of office in the prescribed form. SECTION 30. Meetings and Expenses of the City Board of Assessment Appeals. (1) The City Board of Assessment Appeals shall meet once a month and as often as they may deem necessary for the prompt disposition of appeal cases. No member of the Board shall be entitled to per diems or traveling expenses for his attendance in Board Meetings, except when conducting an ocular inspection in connection with a case under appeal. (2) All expenses of the Board shall be charged against corresponding appropriation in the general fund. SECTION 31. Action by the City Board of Assessment Appeals. (a) The Board shall decide the appeal within one hundred twenty (120) days from the date of receipt of such appeal. The Board, after hearing, shall render its decision. (b) In the exercise of this appellate jurisdiction, the Board shall have the power to summon witnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena duces tecum. The proceedings of the Board shall be conducted solely for the purpose of ascertaining the facts without necessarily adhering to technical rules applicable in judicial proceedings. (c) The Secretary of the Board shall furnish the owner of the property or the person having legal interest therein and the City Assessor with a copy of the decision of the Board. In case the City Assessor concurs in the revision or the assessment, it shall be his duty to notify the owner of the property or the person having legal interest therein of such fact using the form prescribed for the purpose. The owner of the property or the person having legal interest therein or the assessor who is not satisfied with the decision of the Board, may, within thirty (30) days after receipt of the decision of the said Board, appeal to the Central Board of Assessment Appeals as herein provided. The decision of the Central Board shall be final and executory. SECTION 32. Effect of Appeal on the Payment of Real Property Tax. Appeal on assessment of real property made under the provisions of this Ordinance shall, in no case, suspend the collection of the corresponding realty taxes on the property involved as assessed by the City Assessor, without prejudice to subsequent adjustment depending upon the final outcome of the appeal. SDAaTC CHAPTER IV Imposition of Real Property Tax SECTION 33. Levy of Real Property Tax. A schedule of Ad Valorem Tax (Basic Tax) on real property in the City of Catbalogan, such as land, building, machinery and other improvements not herein specifically exempted is hereby imposed at the rate of one percent (1%) of the assessed value of said property. SECTION 34. Exemption from Real Property Tax. The following are exempted from payment of the real property tax. (a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to taxable person. (b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational/hospital purposes. (c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power. (d) All real property owned by duly registered cooperatives as provided for under R.A. No. 6938; and (e) Machinery and equipment used for pollution control and environmental protection. Except as provided herein, any exemption from payment of real property tax previously granted to, or presently enjoyed by all persons, whether natural or juridical, including all government-owned or controlled corporations are hereby withdrawn upon the effectivity of this Ordinance. CHAPTER V Special Levies on Real Property SECTION 35. Additional Levy on Real Property for the Special Education Fund . There is hereby levied an additional annual tax of one percent (1%) on the assessed value of real property in the City of Catbalogan which shall exclusively accrue to the Special Education Fund (SEF). SECTION 36. Additional Ad Valorem Tax on Idle Lands. There is hereby levied an additional annual tax on idle lands in the City of Catbalogan, at the rate of three percent (3%) of the assessed value of the property which shall be in addition to the basic real property tax. SECTION 37. Idle Lands, Coverage. For purposes of real property taxation, idle lands shall include the following: (a) Agricultural lands, more than one (1) hectare in area, suitable for cultivation, dairying, inland fishery, and other agricultural uses, one-half (1/2) of which remain uncultivated or unimproved by the owner of the property or person having legal interest therein. Agricultural lands planted to permanent or perennial crops with at least fifty (50) trees to a hectare shall not be considered idle lands. Lands actually used for grazing purposes shall likewise not be considered idle lands. (b) Lands, other than agricultural, located in the city, more than one thousand (1,000) square meters in area one-half (1/2) of which remain unutilized or unimproved by the owner of the property or person having legal interest therein. Regardless of land area, this Section shall likewise apply to residential lots in subdivisions duly approved by proper authorities, the ownership of which has been transferred to individual owners, who shall be liable for the additional tax: Provided, However, that individual lots of such subdivisions, the ownership of which has not been transferred to buyer shall be considered as part of the subdivision, and shall be subject to the additional tax payable by subdivision owner or operator. SECTION 38. Idle Lands Exempt from Tax. Idle lands, by reason of force majeure, civil disturbance, natural calamity or any cause or circumstance which physically or legally prevents the owner of the property or person having legal interest therein from improving, utilizing or cultivating the same, are exempt from the additional ad valorem tax on idle lands. SECTION 39. Listing of Idle Lands by the Assessor. The City Assessor shall make and keep an updated record of all idle lands located within the City of Catbalogan. For purposes of collection, the City Assessor shall furnish a copy thereof to the City Treasurer who shall notify on the basis of such record, the owner of the property or person having legal interest therein of the imposition of the additional tax. SECTION 40. Accrual of Special Levy. The accrual of special levy shall be governed by another separate ordinance which shall be in accordance with Sections 240-244 of RA 7160. CHAPTER VI Collection of Real Property Tax SECTION 41. Date of Accrual of Tax. The Real Property tax for any year shall accrue on the first day of January and from that date it shall constitute a lien on the property which shall be extinguished only upon the payment of the delinquent tax. acEHCD SECTION 42. Collection of Tax. The collection of Real Property tax with interest thereon and related expenses and the enforcement of the remedies provided for in this Ordinance or any applicable laws, shall be the responsibility of the City Treasurer. The City Treasurer may deputize the barangay treasurer to collect all taxes on real property located in the barangay: Provided, that the barangay treasurer is properly bonded for the purpose: the premium on the bond of the barangay treasurer shall be paid by the city government. SECTION 43. Assessor to Furnish Local Treasurer with Assessment Roll. The City Assessor shall prepare and submit to the City Treasurer on or before the thirty-first (31st) day of December each year, an assessment roll containing a list of all persons whose real properties have been newly assessed or reassessed and the values of such properties. SECTION 44. Notice of Time for Collection of Tax. The City Treasurer shall, on or before the thirty-first (31st) day of January each year, in the case of the basic real property tax and the additional tax for the Special Education Fund (SEF) or on any other date to be prescribed by the Sangguniang Panlungsod in the case of any other tax levied under this Ordinance, post the notice of the dates when the tax may be paid without interest at a conspicuous and publicly accessible place at the City Hall. Said notice shall likewise be published in a newspaper of general circulation in the locality once a week for two (2) consecutive weeks. SECTION 45. Payment of Real Property Taxes in Installments. The owner of the real property or the person having legal interest therein may pay the basic real property tax and the additional tax for Special Education Fund (SEF) due thereon without interest in four (4) equal installments: the first installment to be due and payable on or before March thirty-first (31st); the second installment, on or before June thirty (30); and the third installment, on or before September thirty (30); and the last installment on or before December thirty-first; except the special levy the payment of which shall be governed by an ordinance of the Sangguniang Panlungsod. The date for the payment of any other tax imposed under this ordinance without interest shall be prescribed by the Sangguniang Panlungsod. Payments of real property taxes shall first be applied to prior-year delinquencies, interests, and penalties, if any, and only after said delinquencies are settled may tax payments be credited for the current period. SECTION 46. Tax Discount for Advance Payment. A twenty percent (20%) discount of the amount of the annual tax due is hereby granted if the basic real property tax and the additional tax accruing to the Special Education Fund (SEF) are paid in advance of the time schedule prescribed in Section 45 hereof. SECTION 47. Payment under Protest. (a) No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated on the tax receipts the words "paid under protest". The protest in writing must be filed within thirty (30) days from payment of the tax to the City Treasurer who shall decide the protest within sixty (60) days from receipt. (b) The tax or a portion thereof paid under protest, shall be held in trust by the City Treasurer. (c) In the event that the protest is finally decided in favor of the taxpayer, the amount or portion of the tax protested shall be refunded to the protestant, or applied as tax credit against existing or future tax liability. (d) In the event that the protest is denied or upon the lapse of the sixty day period prescribed in subparagraph (a) the taxpayer may avail of the remedies provided for in Chapter 3, Title II, Book II of R.A. 7160, otherwise known as the Local Government Code of 1991, and treated in Sections 28 to 32 of this Ordinance. SECTION 48. Repayment of Excessive Collections. When an assessment of basic real property tax or any other tax levied under this Ordinance is found to be illegal or erroneous and the tax is accordingly reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and interests to the City Treasurer within two (2) years from the date the taxpayer is entitled to such reduction or adjustment. The City Treasurer shall decide the claim for tax refund credit within sixty (60) days from receipt thereof. In case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies provided for in Chapter 3, Title II, Book II of R.A. No. 7160, otherwise known as the Local Government Code of 1991, and, as cited above, likewise discussed in this Ordinance. SECTION 49. Notice of Delinquency in the Payment of the Real Property Tax. (a) When a real property tax or any other tax imposed under this Ordinance becomes delinquent, the City Treasurer shall immediately cause a notice of the delinquency to be posted at the main entrance of the City Hall and in a publicly accessible and conspicuous place in the barangay where the property is located. The notice of delinquency shall also be published once a week for two (2) consecutive weeks in a newspaper of general circulation in the city. (b) Such notice shall specify the date upon which the tax became delinquent and shall state that at any time before the distraint of personal property, payment of the tax with surcharges, interests, and penalties may be made in accordance with the next following section and unless the tax surcharges are paid before the expiration of the year for which the tax is due, except when notice of assessment or special levy is contested administratively or judicially pursuant to the provisions of Chapter 3, Title II, Book II of R.A. No. 7160, the delinquent real property will be sold at public auction, and the title to the property will be vested in the purchaser, subject, however, to the right of the delinquent owner of the property or any person having legal interest therein to redeem the property within one (1) year from the date of sale. SDHTEC SECTION 50. Interest on Unpaid Real Property Tax. In case of failure to pay the basic real property tax or any other tax levied under this Ordinance upon the expiration of the periods as provided for in Section 250 of R.A. 7160 and Section 45 of this Ordinance, or when due, as the case may be, shall subject the taxpayer to the payment of interest at the rate of two percent (2%) per month on the unpaid amount or a fraction thereof until the delinquent tax shall have been fully paid: Provided, however, that in no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six (36) months. SECTION 51. Remedies for the Collection of Real Property Tax. The remedies for the collection of the real property tax and other levies under this Ordinance shall be by administrative action thru levy on real property or by judicial action. SECTION 52. Local Government Lien. The basic real property tax and any other tax levied under this Ordinance constitutes a lien on the property subject to tax superior to all liens, charges or encumbrances in favor of any person, irrespective of the owner or possessor thereof, enforceable by administrative or judicial action, and may only be extinguished upon payment of the tax and the related interests and expenses. SECTION 53. Levy on Real Property. After the expiration of the time required to pay the basic real property tax or any other tax levied hereunder, real property subject to such tax may be levied upon through the issuance of a warrant on or before, or simultaneously with, the institution of the civil action for the collection of the delinquent tax. The City Treasurer, when issuing warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or persons having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of a legal execution throughout the city. The warrant shall be mailed to or served upon the delinquent owner of the real property or persons having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or occupant of the property. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the City Assessor or the Registrar of Deeds of Catbalogan City who shall annotate the levy on the tax declaration and certificate of title of the property, respectively. The levying officer shall submit a report on the levy to the Sangguniang Panlungsod within ten (10) days after receipt of the warrant by the owner of the property or person having legal interest therein. SECTION 54. Penalty for Failure to Issue and Execute Warrant. Without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, the City treasurer or his deputy who fails to issue or execute the warrant of levy within one (1) year from the time the tax becomes delinquent or within thirty (30) days from the date of issuance thereof, or who is found guilty of abusing the exercise thereof in an administrative or judicial proceeding, shall be dismissed from service. SECTION 55. Advertisement and Sale. Within thirty (30) days after service of the warrant of levy, the City Treasurer shall proceed to publicly advertise for sale at public auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of City Hall and in a publicly, accessible and conspicuous place in the barangay where the real property is located and publication once a week for two (2) weeks in newspaper of general circulation in the city. The advertisement shall specify the amount of the delinquent tax, the interest thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or persons having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the property or persons having legal interest therein may stay the proceedings by paying the delinquent tax, interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the City Hall or on the property to be sold, or at any other place as specified in the notice of the sale. Within this (30) days after the sale, the City Treasurer or his deputy shall make a report of the sale to the Sangguniang Panlungsod which shall form part of his records. The City Treasurer shall likewise prepare and deliver to the purchaser, a certificate of sale which shall contain a description of the property sold, the amount of delinquent tax, the interest thereon, the expenses of sale and a brief description of the proceedings: Provided, however, the proceeds of the sale in excess of the delinquent tax, the interest thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein. The City Treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs or collection through the remedies provided from this title, including the expenses of advertisements and sale. SECTION 56. Redemption of the Property Sold. Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the City Treasurer the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of two (2) percent per month on the purchase price from the date of sale to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption which shall be issued by the City Treasurer or his deputy. From the date of sale until the expiration of the period of redemption, the delinquent property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof. The City Treasurer or his deputy upon receipt from the purchaser of the certificate of sale shall forthwith return to the latter the entire amount paid by him plus the interest of two (2) percent per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale. AScHCD SECTION 57. Final Deed to Purchaser. In case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the city treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceeding upon which the validity of the sale rests. SECTION 58. Purchase of Property by the City Government for Want of Bidder. In case there is no bidder for real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property tax and the related interest and costs of sale, the City Treasurer shall purchase the property in behalf of the city government to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his Office of any such declaration of forfeiture to transfer the title of the forfeited property to the city government without the necessity of an order from a competent court. Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying the City Treasurer the full amount of real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested in the City of Catbalogan. SECTION 59. Resale of Real Estate Taken for Taxes, Fees or Charges. The Sangguniang Panlungsod may, by ordinance duly approved, and upon notice of not less than twenty (20) days, sell and dispose of the real property acquired under the preceding section at public auction. The proceeds of the sale shall accrue to the General Fund of the city government. SECTION 60. Further Distraint or Levy. Levy may be repeated if necessary until the full amount due, including all expenses, is collected. SECTION 61. Collection of Real Property Tax through the Court. The city government may enforce the collection of the basic real property tax or any other tax levied under this Ordinance by civil action in any court of competent jurisdiction. The civil action shall be filed by the City Treasurer within the period prescribed in this Ordinance. SECTION 62. Action Assailing Validity of Tax Sale. No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein under this Ordinance until the taxpayer shall have deposited with the court the amount for which the property was sold, together with interest of two (2) percent per month from the date of sale to the time of the institution of the action. The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails. Neither shall any court declare a sale at public auction invalid by reason of irregularities or informalities in the proceedings unless the substantive rights of the delinquent owner of the real property or the person having legal interest therein have been impaired. SECTION 63. Payment of Delinquent Taxes on Property Subject of Controversy. In any action involving the ownership or possession of, or succession to, real property, the court may, motu propio or upon representation of the City Treasurer or his deputy, award such ownership, possession or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action. SECTION 64. Treasurer to Certify Delinquencies Remaining Uncollected. The City Treasurer or his deputies shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year in the city, and a statement of the reasons for such non-collection or non-payment, and shall submit the same to the Sangguniang Panlungsod on or before December thirty-first (31st) of the year immediately succeeding the year in which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herein. SECTION 65. Period within Which to Collect Real Property Taxes. The basic real property tax and any other tax levied under this Ordinance shall be collected within five (5) years from the date they become due. No action for the collection of the tax whether administrative or judicial, shall be instituted after the expiration of such period. In case of fraud or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment. The period of prescription within which to collect shall be suspended for the time during which: (a) The City Treasurer is legally prevented from collecting the tax; (b) The owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; and (c) The owner of the property or the person having legal interest therein is out of the country or otherwise cannot be located. CHAPTER VII Disposition of Proceeds SECTION 66. Distribution of Proceeds. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction in accordance with the provisions of this Ordinance by the City of Catbalogan shall be distributed as follows: AcICHD (a) Seventy Percent (70%) shall accrue to the General Fund of the city; (b) Thirty percent (30%) shall be distributed among the component barangays of the City in the following manner: a. Fifty percent (50%) shall accrue equally to all component barangays of the city; and b. Fifty percent (50%) shall accrue to the barangay where the property is located; and c. The share of each barangay shall be released, without need of any further action, directly to the barangay treasurer on a quarterly basis within five (5) days after the end of each quarter and shall not be subject to any lien or holdback for whatever purpose. SECTION 67. Application of Proceeds of the Additional One Percent (1%) Special Education Fund (SEF) Tax. The proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the City School Board, provided, that the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the School Board. SECTION 68. Proceeds of the Tax on Idle Lands. The proceeds of the additional real property tax on idle lands shall accrue to the General Fund of the City. SECTION 69. Proceeds of the Special Levy. The proceeds of the special levy on lands benefited by public works, projects, and other improvements shall accrue to the fund which financed such public works, projects, or other improvements. CHAPTER VIII Special Provisions SECTION 70. General Assessment Revision; Expenses Incident Thereto. All expenses incident to a general revision of real property assessment shall be apportioned between the city and the barangay on the basis of the taxable area therein. SECTION 71. Duty of Registrar of Deeds and Notaries Public to Assist the City Assessor. It shall be the duty of the Registrar of Deeds and notaries public to furnish the City Assessor with copies of all contracts selling, transferring, or otherwise conveying, leasing, or mortgaging real property received by, or acknowledged before them. SECTION 72. Insurance Companies to Furnish Informations. Insurance companies are hereby required to furnish the City Assessor copies of any contract or policy insurance on buildings, structures, and improvements insured by them or such other documents which may be necessary for the proper assessment thereof. SECTION 73. Fees in Court Actions. All court actions, criminal or civil, instituted at the instance of the City Treasurer or City Assessor under the provisions of this Ordinance, shall be exempt from the payment of court and sheriff's fees as decreed by Section 280 of the Local Government Code of 1991. SECTION 74. Fees in Registration of Papers or Documents on Sale of Delinquent Real Property to the City. All certificates, documents and papers covering the sale of delinquent property to the City shall be exempted from the payment of documentary stamp tax and registration fees. CHAPTER IX Penal Provisions SECTION 75. Penal Provisions of RA7160 Adopted. The provisions of Sections 517, 518, and 519 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, are hereby expressly adopted and made integral parts hereof. CHAPTER X Final Provisions SECTION 76. Repealing Clause. The provisions of Ordinance No. 2007-033 otherwise known as the Real Property Tax Ordinance of the City of Catbalogan, or part or parts thereof, which are inconsistent with the provisions hereof are hereby repealed or modified accordingly. SECTION 77. Separability Clause. If, for any reason or reasons, any part or provisions of this Code shall be held to be unconstitutional or invalid, other parts, or provisions hereof which are not affected thereby shall continue to be in full force and effect. SECTION 78. Effectivity Clause. This Ordinance shall take effect upon its approval and compliance with the posting and publication requirements prescribed by the Local Government Code of 1991. APPROVED: Unanimously. ENACTED: April 2, 2008. TAIaHE I HEREBY CERTIFY to the correctness of the herein Ordinance. (SGD.) DEBORAH T. MARCO, Ph. D., C.S.E.O. Secretary to the Sangguniang Panlungsod ATTESTED as duly enacted. (SGD.) HON. MANUEL VAN A. TORREVILLAS City Vice Mayor/Presiding Officer APPROVED: (SGD.) HON. COEFREDO T. UY City Mayor Date: 4-08-08 ATTACHMENT SCHEDULE OF BASE UNIT CONSTRUCTION COST FOR BUILDINGS (BASE UNIT VALUE) Type (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) of One Family Duplex, Hotel, Hospital, Churches, Theater, Industrial Gasoline Open Shed Garage, Saw Mills, Barn, Building Dwelling, Multiple Lodging Office Chapel, Shopping Bldg., Station Quarters, Rice Mills, Poultry Temporary Dwellings, Houses, Bldg., Convention Center, Factory, Laundry Lumber Houses, Makeshift Townhouses, Dormitory, School Hall, Market Warehouse, House, Sheds Hog Structures, Row Houses, Boarding Bldg., Gymnasium, Bldg., Bodega, Guard Houses, Nipa Hut Apartment Houses, Banks Cockpit Restaurant Storage House Green Bldg. Funeral Houses Parlor Type V A 10,300- 10,100- 9,700- 9,700- 9,500- 9,500- 9,300- 9,700- 7,100- 10,600 10,400 10,000 10,000 9,800 9,800 9,600 10,000 7,400 B 9,900- 9,700- 9,300- 9,300- 9,100- 9,100- 8,900- 9,300- 6,700- 10,200 10,000 9,600 9,600 9,400 9,400 9,200 9,600 7,000 C 9,500- 9,300- 8,900- 8,900- 8,700- 8,700- 8,500- 8,900- 6,300- 9,800 9,600 9,200 9,200 9,000 9,000 8,800 9,200 6,600 Type IV A 8,400- 8,200- 7,800- 7,800- 7,600- 7,600- 7,400- 7,800- 5,700- 7,700- 6,700- 8,700 8,500 8,100 8,100 7,900 7,900 7,700 8,100 5,800 8,000 7,000 B 8,000- 7,800- 7,400- 7,400- 7,200- 7,200- 7,000- 7,400- 5,300- 7,300- 6,300- 8,300 8,100 7,700 7,700 7,500 7,500 7,300 7,700 5,600 7,600 6,600 Type III A 7,100- 6,900- 6,500- 6,500- 6,300- 6,300- 6,100- 4,600- 5,800- 5,200- 4,800- 7,400 7,200 6,800 6,800 6,600 6,600 6,400 4,800 6,100 5,500 5,100 B 6,700- 6,500- 6,100- 6,100- 5,900- 5,900- 5,700- 4,300- 5,400- 4,800- 4,600- 7,000 6,800 6,400 6,400 6,200 6,200 6,000 4,500 5,700 5,100 4,700 C 6,300- 6,100- 5,700- 5,700- 5,500- 5,500- 5,300- 4,000- 5,000- 4,400- 4,300- 6,600 6,400 6,000 6,000 5,800 5,800 5,600 4,200 5,300 4,700 4,500 D 5,900- 5,700- 5,300- 5,300- 5,100- 5,100- 4,900- 3,700- 4,600- 4,000- 4,000- 6,200 6,000 5,600 5,600 5,400 5,400 5,200 3,900 4,900 4,300 4,200 E 5,500- 5,300- 4,900- 4,900- 4,700- 4,700- 4,500- 3,400- 3,600- 3,700- 5,800 5,600 5,200 5,200 5,000 5,000 4,800 3,600 3,900 3,900 Type II A 4,400- 4,200- 3,800- 3,600- 3,400- 2,300- 3,000- 2,800- 2,600- 4,700 4,500 4,100 3,900 3,700 2,600 3,300 3,100 2,900 B 4,000- 3,800- 3,400- 1,900- 2,600- 2,400- 2,200- 4,300 4,100 3,700 2,200 2,900 2,700 2,500 C 3,600- 3,400- 2,900- 1,500- 2,200- 2,000- 1,800- 3,900 3,700 3,200 1,800 2,500 2,300 2,100 Type I A 1,200- 1,400 B 800- 1,000 Schedule of Values for Pavements, Floors and Slabs 1. Commercial and Residential Building: Plan 4" thick concrete slab P325.00 sq. m. 4" concrete slab with plain colored 487.50 sq. m. 1" x 8" cement tile floor 2. Light Industry Building: (Service and Gas Station & Factories, etc.) 3" ready mix pavement (bituminous asphalt) P203.00 sq. m. 4" slab with 1/2 round W.I. bars for 365.50 sq. m. temperature reinforcement 3. Heavy In-Class "A" Concrete: 6" slab with 1/2 round W.I. temperature P812.50 sq. m. reinforcement to 0.50 cm. both ways Schedule of Values for Fences 1. Concrete Hollow Block (2 meters high) a. with plaster finish P812.50/linear meter (lin. m.) b. without plaster finish 568.50 add P6.50 per lin. m. for every meter additional height. 2. Adobe Stone (2 meters high) a. with plaster finish on both sides P487.50/lin. m. b. without plaster finish 325.00/lin. m. 3. Apitong with apitong posts set on P568.50/lin. m. concrete foundation 4. Yacal with yacal posts set on concrete foundation P812.50/lin. m. 5. Wrought Iron Grills P967.50/lin. m. 6. Steel Matting P568.50/lin. m. 7. Chicken or Hog Wire on timber frames P243.75/lin. m. 8. Round Bars P819.00/lin. m. 9. Gates (2 meters high) a. plain with round bars P975.00/lin. m. b. round bars P975.00/lin. m. Extra Items as Component Parts 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 60% of Base Unit Value Open 30% of Base Unit Value 8. Basement: Residential 70% of Base Unit Value High Rise Building 20% of Base Unit Value 9. Pavements: Tennis Court P80-90 per sq. m. Concrete: 10 cm. thick P325.00 per sq. m. 15 cm. thick 487.50 per sq. m. 20 cm. thick 650.00 per sq. m. Asphalt: 1. Course P100.00 per sq. m. 2. Course 162.50 per sq. m. 3. Course 225.00 per sq. m. 10. Floor Finisher: a) Marble slabs P1,250.00 per sq. m. b) Marble Tiles 1,125.00 per sq. m. c) Crazy Cut Marble 800.00 per sq. m. d) Granolithic 1,000.00 per sq. m. e) Narra 205.00 per sq. m. f) Yacal 205.00 per sq. m. g) Narra/Fancy Wood Tiles 600.00 per sq. m. h) Ordinary wood Tiles 600.00 per sq. m. i) Vinyl Tiles 100.00 per sq. m. j) Washout Pebbles 300.00 per sq. m. k) Unglazed Tiles 150.00 per sq. m. 11. Walling: a) Use the same rate for floor finishing in a, c, d, and i as indicated above. b) Double Walling (ordinary plywood) P187.50 per sq. m. c) Double Walling (Narra Panelling) 350.00 per sq. m. d) Glazed White Tiles 450.00 per sq. m. e) Glazed Color Tiles 325.00 per sq. m. f) Fancy Tiles 275.00 per sq. m. g) Synthetic Rubble 200.00 per sq. m. k) Bricks 237.50 per sq. m. 12. Special Panels: a) Glass with Wooden Frame P800.00 per sq. m. b) Glass with Aluminum Frame 1,200.00 per sq. m. (For Tinted Glass Add) 237.50 per sq. m. 13. Ceiling: (below concrete floor) a) Ordinary Plywood P187.50 per sq. m. b) Luminous Ceiling 625.00 per sq. m. c) Acoustic 700.00 per sq. m. d) Special Finish 750.00 per sq. m. 14. Fences: a) Wood P75.00-100.00 per sq. m. b) CHB: 10 cm thick P300.00-325.00 per sq. m. 15 cm thick 425.00-487.00 per sq. m. 20 cm thick 600.00-650.00 per sq. m. c) Reinforced concrete 625.00-750.00 per sq. m. d) Steel Grills 1,125.00-1,250.00 per sq. m. e) Interlink Wire 75.00-112.50 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 & G-Ordinary Finish P14,000.00/unit 17. Foundation P250.00 X total floor area less floor area of 1st and 2nd floors. 18. Piles P500.00 per lin. m. of piles 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. Schedule of Depreciation V-A V-B V-C IV-A IV-B III-A, B III-C, D III-E II-A II-B I-A, B 1st 5 yrs. 1.8% 2.0% 2.2% 2.4% 2.6% 3.0% 4.0% 4.0% 5.0% 5.0% 5.2% 2nd 5 yrs. 1.4% 1.8% 2.0% 2.2% 2.3% 2.5% 3.5% 3.6% 4.0% 4.2% 4.6% 3rd 5 yrs. 1.2% 1.5% 1.7% 2.0% 2.2% 2.5% 3.0% 3.2% 3.4% 3.6% 4.0% 4th 5 yrs. 1.0% 1.2% 1.3% 1.7% 2.0% 2.0% 2.5% 3.0% 3.0% 3.2% 3.4% After 20 years 1.0% 1.0% 1.1% 1.4% 1.6% 2.0% 2.0% 2.5% 3.0% 3.2% 3.2% Residual Value 40.0% 40.0% 37.0% 35.0% 33.0% 30.0% 28.0% 20.0% 15.0% 12.0% 10.0% For an excess in the above rates of annual depreciation, bigger rate may be applied in extra-ordinary cases, that is, if properly presented and described as in the following instances: 1. Damage due to catastrophe (earthquake, fire, deluge) 2. Heavily damaged due to pest ( e.g. , termite) 3. Established defects in construction. 4. Obsolescence Schedule of Depreciation Type No. of Years V-A V-B V-C IV-A IV-B III-A, B III-C, D III-E II-A II-B I-A, B Each of 1st 5 yrs. 1.8% 2.0% 2.2% 2.4% 2.6% 3.0% 4.0% 4.0% 5.0% 5.0% 5.2% Progressive 9.0% 10.0% 11.0% 12.0% 13.0% 15.0% 20.0% 20.0% 25.0% 25.0% 26.0% Depreciation Each of 2nd 5 yrs. 1.4% 1.8% 2.0% 2.2% 2.3% 2.5% 3.5% 3.6% 4.0% 4.2% 4.6% Progressive 16.0% 19.0% 21.0% 23.0% 24.5% 27.5% 37.5% 38.0% 45.0% 46.0% 49.0% Depreciation Each of 3rd 5 yrs. 1.2% 1.5% 1.7% 2.0% 2.2% 2.5% 3.0% 3.2% 3.4% 3.6% 4.0% Progressive 22.0% 26.5% 29.5% 33.0% 35.5% 40.0% 52.5% 54.0% 62.0% 64.0% 69.0% Depreciation Each of 4th 5 yrs. 1.0% 1.2% 1.3% 1.7% 2.0% 2.0% 2.5% 3.0% 3.0% 3.2% 3.4% Progressive 27.0% 32.5% 36.0% 41.5% 45.5% 50.0% 65.0% 69.0% 77.0% 80.0% 86.0% Depreciation Each year after 1.0% 1.0% 1.1% 1.4% 1.6% 2.0% 2.0% 2.5% 3.0% 3.2% 3.2% 20 years Residual Value 40.0% 40.0% 37.0% 35.0% 33.0% 30.0% 28.0% 20.0% 15.0% 12.0% 10.0% Years to get to 53 48 45 37 34 30 24 24 23 23 22 Residual For an excess in the above rates of annual depreciation, bigger rate may be applied in extra-ordinary cases, that is, if properly presented and described as in the following instances: 5. Damage due to catastrophe (earthquake, fire, deluge) 6. Heavily damaged due to pest ( e.g. , termite) 7. Established defects in construction 8. Obsolescence Kinds of Building 1. One Family Dwelling a detached building designed for or occupied exclusively by one family. cDHAES 2. Duplex Dwelling a detached building designed for or occupied exclusively by two families living independently of each other in their respective single housekeeping unit. 2a. Town House a single family house of two (2) or more stories connected to another house by a common wall. 3. Multiple Dwelling a building used as a house or residence of three or more families living independently from one another, each occupying one or more rooms as a single housekeeping. 4. Row House a house of not more than two (2) stories composed of a row of dwelling units entirely separated from one another by party wall or walls and with an independent entrance for each dwelling unit. 5. Apartment Building a building designed for dwelling of four (4) or more families living independently from one another and doing their household chores independently in their particular premises but with one (1) or more common entrance. 6. Boarding House (Dormitory) a house containing one (1) or more common sleeping rooms, accommodating several boarders with centralized toilet and bathroom and provided with lodging and meal for a fixed sum paid by the month or week, in accordance with previous arrangement. 6a. Lodging House a building containing not more than fifteen (15) sleeping rooms with centralized toilet and bathroom, where lodging is provided with fixed compensation. 7. Hotel a building with more than 15 sleeping rooms, usually occupied singly, where transients are provided with temporary lodging, with or without meals, and no provisions for cooking in any individual suite. 8. Office Building a building mainly used for stores and/or offices. 9. Church a building set apart for public worship, especially Christian worship and religious services. 10. Restaurant an establishment where refreshments or meals may be served. 11. Funeral Parlor a building pertaining to or befitting a funeral; a place where funeral services are rendered. 12. School Building a building or group of buildings in which a school is conducted. 13. Theater a building specifically designed for the presentation of plays, operas, motion pictures, etc. 13a. Convention Hall a large room for assembly, usually equipped with seats. 13b. Auditorium a room, hall, or building used for lectures, speeches, concert, etc. 14. Hospital a building or institution where sick or injured persons are given medical or surgical care. 15. Market Building a building where goods and commodities especially provisions or livestock are shown for sale, usually with stalls or booths for the various dealers. 16. Shopping Center a building where a variety of goods are offered for sale; usually a commercial complex. 17. Cold Storage a building designed for storage of perishable food, etc. 18. Industrial Building a building designed for people engaged in branch of trade, business, production, or manufacture. 18a. Factory a building or collection of buildings usually with equipment and machineries for the manufacture of goods. 19. Warehouse, Bodega a building mainly used for deposit or storage of goods, wares, etc. 20. Gasoline Service Station a structure for the servicing of motor vehicle and dispensing of motor fuel. 21. Gymnasium a building containing appropriate equipment for various indoor sports activities associated with program of physical education and typically including spectator accommodations, locker and shower rooms, a swimming pool, offices and classrooms. 21a. Recreational building a building which houses any form of play, amusement or relaxation, used for this purpose, as games, sports, hobbies, reading, etc. 21b. Cockpit a place for cockfighting. 22. Saw Mills and Lumber Sheds a building used mainly for the processing or cutting of logs to lumber and/or storage of lumber products. 23. Open Shed a large, strongly built barn-like, or hangar-like structure, as for storage, with open front or sides. 24. Swimming Pool an artificially created pool or tank, either indoors or outdoors, designed for swimming. The fair and current market value of old buildings shall be computed on the basis of replacement cost less depreciation. Replacement cost shall be computed on the basis of the schedule of building unit values which is reflective of the current cost of labor and building materials. Old building shall be valued as new and the corresponding allowable depreciation deducted to arrive at their current and fair market value. Types of Construction For purposes of this Schedule of Base Unit Value for buildings and so as to be consistent with the provisions of the National Building Code, all buildings shall be classified or identified according to the following types: ASEcHI TYPE V Buildings shall be fire-resistive. The structural elements shall be of steel, iron, concrete, or masonry construction. Walls, ceiling, and permanent partitions shall be of incombustible fire-resistive construction. A. Structural steel/reinforced columns, beams, girders, floors, walls, and roofs. B. Columns, beams, floors, walls, and roofs all are reinforced concrete. C. Columns, beams, and floors are of reinforced concrete with CHB walls and reinforced concrete or tile roof. TYPE IV Buildings shall be of steel, iron, concrete, or masonry construction. Walls, ceiling, and permanent partitions shall be of incombustible fire-resistive construction: Except that permanent non-bearing partitions of one-hour fire-resistive construction may use fire-retardant treated wood within the framing assembly. A. Reinforced concrete columns, beams, floors, toilet and bath, CHB walls but wooden roof framings and G.I./tile roofing. B. Reinforced concrete columns, beams, toilet and bath but CHB walls and wooden floor framings, flooring and roof framings and G.I./tile roofing. TYPE III Buildings shall be of masonry and wood construction. Structural elements may be any of the materials permitted by the said National Building Code: Provided, that the building shall be one-hour fire-resistive throughout. Exterior wall shall be of incombustible fire-resistive construction. A. Reinforced concrete columns, and flooring, and CHB walls on the first floor with first group wooden structural, framings, and G.I./tile roofing. B. Reinforced concrete columns, and flooring and CHB walls on the first floor and tanguile walls on the second floor, with first group wooden structural framings and G.I. roofing. C. First group wooden structural framings, flooring, and CHB walls and G.I./tile roofing. D. First group wooden structural framings, flooring, CHB walls on the first floor, and tanguile walls on the second floor, and G.I. sheet roofing. E. First group wooden structural framings, floorings, and walls, and G.I. roofing, but structural members are sub-standard. TYPE II Buildings shall be of wood construction with protective fire-resistant materials and one-hour fire resistive throughout: Except that permanent non-bearing partitions may use fire-retardant treated wood within the framing assembly. A. Third group wooden structural framings, floorings, and sidings, and G.I. roofing. B. Third group wooden structural framings, floorings, and sidings, and G.I. roofing but structural members are substandard. C. Posts, girders, girt, floor framing and flooring, studs and roof framings are of sub-standard wooden materials with nipa sidings and G.I. roofing. TYPE I Buildings shall be of wood construction. The structural element may be any of the materials permitted as follows: Nipa houses and similar structures falling under this type. A. Round log posts, structural framings are of coco lumber, with wood flooring and sidings and nipa roofing. B. Round log posts, girders, girt, studs, floor joists and roof framing, with bamboo flooring and nipa sidings and roofing. Assessment Levels The Assessment Levels to be applied to the appraisal of lands, buildings, and other structures shall be those as prescribed under Section 218 of LocalGovernmentCode and Section 20 of City Ordinance No. 2008-003, as follows: (a) On Lands: Classification Assessment Levels Residential 20% Agricultural 40% Commercial 50% Industrial 50% Mineral 50% Timberland 20% (b) On Buildings and other Structures: (1) Residential Buildings Fair Market Value Over Not Over Assessment 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) Agricultural (Trees/Plants/Barn, Dike, etc.) Fair Market Value Over Not Over Assessment Levels - P300,000.00 25% P300,000.00 500,000.00 30% 500,000.00 750,000.00 35% 750,000.00 1,000,000.00 40% 1,000,000.00 2,000,000.00 45% 2,000,000.00 - 50% (3) Commercial/Industrial Buildings Fair Market Value Over Not Over Assessment 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% (4) Timberland Fair Market Value Over Not Over Assessment Levels - P300,000.00 45% P300,000.00 500,000.00 50% 500,000.00 750,000.00 55% 750,000.00 1,000,000.00 60% 1,000,000.00 2,000,000.00 65% 2,000,000.00 - 70% (c) On Machineries Class Assessment Levels Agricultural 40% Residential 50% Commercial 80% Industrial 80% (d) On Special Classes: The Assessment Level 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 corporation engaged in the supply and distribution of water and/or generation and transmission of electric power 10% ITAaHc Special Classes of Real Properties All lands, buildings and other improvements thereon, actually, directly and exclusively used for educational, cultural, recreational or scientific purposes, as well as hospitals not owned by and operated by the government or by any of its instrumentalities shall be classified as Special. The assessment level for all lands, buildings and other improvements thereon, actually, directly and exclusively used for educational, cultural or scientific purposes, as well as, hospitals not owned and operated by the government or any of its instrumentalities, shall be fifteen percent (15%) of the market value of such property, and for those exclusively used for recreational purposes, thirty percent (30%) of their market value. DOF DEPARTMENT ORDER NO. 22-73 June 18, 1973 SUBJECT : Guidelines for the assessment of machinery under Presidential Decree No. 76 TO : All Provincial and City Assessors Under Presidential Decree No. 76 and Implementing Order No. 5972, dated December 8, 1972 of this Department, all improvements including machinery but excluding residential houses directly used by the owner, shall be assessed independently of lands and on the basis of the assessment levels presently obtaining in the Province or City, provided the same are not lower than the assessment level prescribed under the Decree for the particular class or real property nor more than 80% of their current market value as determined by the assessor. Therefore, in accordance therewith and in order to achieve uniform application thereof, the following guidelines for the assessment of machinery are hereby prescribed: I. Definition of Terms: A. "MACHINERY" Sec. 199 of R.A.7160 (LocalGovernmentCode) embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily to the real property. It includes the physical facilities for production, the installations and appurtenant services facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly and exclusively used to meet the needs of the particular industry, business or activity and which by their very nature and purposes are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes; B. Current Fair Market Value as defined in the Presidential Decree No. 76, when applied to machinery, shall be based on the following approached: 1. Original Cost for newly acquired machinery NOT YET DEPRECIATED and appraised within the year of its purchase, the actual cost of the machinery to its present owner (plus the cost of the transportation, handling and installation at the present site). 2. Replacement or Reproduction Cost (new) The cost that would be incurred on the basis of current price in acquiring and equally desirable substitute property, or the cost of reproducing a new replica property on the basis of current prices with the same or closely similar material. C. Economic Life The estimated period over which it is anticipated that the machinery may profitably be utilized. D. Remaining Economic Life The period of time (years) from the date of appraisal to the date when the machinery becomes valueless. E. Remaining Value The value corresponding to the remaining useful life of the machinery. II. Current and Fair Market Value of all machineries to be declared by the owners or administrators. The owners or administrators shall declare the current and fair market value of their machineries now in operation. Any addition, replacement or retirement of machinery subsequent thereto, should be declared not later than December fifteenth of the year during which such addition, replacement or retirement occurred. III. Supporting Inventory. All declarations of current and fair market value of machineries shall be supported by an inventory in triplicate, describing each item of machinery in such manner that will prove understandable to the average reader. As far as practicable, the name of the item, the name of the manufacturer, country of origin, model or type, date of acquisition, estimated economic life, remaining economic life, condition, and cost of acquisition whether acquired brand new or second hand and replacement or reproduction cost (new) should be indicated after each item of machinery included in the inventory. IV. Basis of Establishing Replacement or Reproduction Cost (New). The replacement or reproduction cost (new) theories are the most simple of approaches in arriving at current and fair market value. Here, the measure of market value is comparative. Old machineries are compared with the new ones. The terms REPLACEMENT and REPRODUCTION are to be used synonymously. In order to establish the replacement cost or reproduction cost (new) of an item of machinery, the Assessor may secure from the manufacturer the present-day cost of replacing the item of machinery to be assessed, with its nearest equivalent model. Even in the absence of a willing buyer-willing seller is no bar to estimating current and fair market value through the replacement or reproduction cost (new) approaches. Comparison can be made with machineries for which there is a market value and relationship to market is maintained. A. Imported Machinery If the machinery is imported, replacement or reproduction cost (new) shall be the original acquisition cost which would normally include such costs as freight and insurance charges, bank charges, brokerage, arrastre and handling, custom duties and taxes plus cost of inland transportation and handling, and significant installation charges at the present site. The dollar cost of the machinery shall be converted to peso cost by using the following formula: CHTAIc Step 1 Current Dollar Exchange Rate = Conversion Factor Dollar Exchange Rate of Time Step 2 Original Cost X Conversion Factor = Replacement Cost of machinery Reproduction Cost (new) The dollar exchange rate shall be based on the table of dollar exchange rates provided by the Central Bank of the Philippines (See Appendix "A") Machinery purchased in the other currencies shall similarly be converted to peso cost according to the same formula. The replacement or reproduction cost (new) of any machinery may be test-checked against the prices prevailing in the open market obtained from the manufacturer, suppliers and/or dealers of said machinery. B. Locally Manufactured Machinery If the machinery is purchased locally, replacement or reproduction cost (new) shall be determined in similar manner as imported machinery, using the price index. V. Basis for Establishing Current and Fair Market Value. Current and fair market value through the use of replacement or reproduction cost (new) is determined as follows: Remaining Economic Life x Replacement or = Current and Fair Reproduction Market Value Economic Life Cost (new) The economic life of the machinery may be estimated by the owners or administrators on the basis of their particular operating conditions experience, and informed judgment as to technological improvements and economic changes. In such cases, the period of estimated economic life used by owners or administrators is subject to review by the assessor, who may require such owners or administrators to substantiate the period so used. The economic life of the machinery must be premised on a reasonable expense policy as to the cost of repairs and maintenance. Due consideration should also be given to the replacement policy of the owners or administrators. The estimated economic life of the machinery may include an allowance for normal obsolescence, but should not contain any provision for extra-ordinary obsolescence such as is occasioned by revolutionary inventions, abnormal growth or development, radial economic changes, or other unpredictable factors which may force the retirement or replacement of the machinery prior to the termination of its normal economic life. To the extent possible, the remaining economic life of the machinery must be determined by the examination of the actual physical condition, degree of utility and available records of the owner and/or records of the manufacturer, supplier and/or dealers or government agencies. In the absence of any authoritative local references, for purposes of uniformity, the Depreciation Rate Tables under Bulletin "F" of the U.S. Internal Revenue Service may be used as basis for estimating the economic life of machinery. VI. Basis for Establishing Assessed Value. The Assessed Value of the machineries shall be the current and fair market value multiplied by the assessment levels prevailing at the time of the enactment of Presidential Decree No. 76 which shall be maintained for purposes of the general revision of assessment being undertaken thereto. But in no case shall such level be lower than those prescribed for the lands on which the machinery is located nor more than eighty per centum of current and fair market value of such machinery. VII. Basis for Establishing Remaining Value. The remaining value for all kinds of machinery shall be fixed not less than twenty per centum (20%) of its replacement or reproduction cost, for so long as the machinery is useful and in operation. VIII. Failure of Owner or Administrator to File Declaration: If the owners or administrators fail or refuse to declare their machineries or to make a supporting inventory thereon, the assessor shall declare the same and determine its current and fair market value in accordance with the preceding guidelines. IX. All existing rules and regulations inconsistent with this order are hereby revoked or modified accordingly. (SGD.) CESAR VIRATA Secretary Economic Lives of Machinery 1. Agriculture : On a composite basis, the average useful life of machinery used in agriculture is 15 years. The average useful lives of some machinery/equipment used in agriculture are as follows: ENGINES: Diesel - 15 Gasoline - 10 Stationary Stem - 20 FURNAGES: Evaporator, dry - 15 Heating Disk - 15 MILLS: Feed - 15 Grist - 25 PUMPS: Centrifugal/Rotary - 20 Plingar - 15 TANKS: Concrete - 50 Steel - 40 Wood - 20 2. Airline Manufacturing : The general useful life for machinery and equipment used in the construction of airplanes is approximately 15 years. EATCcI 3. Automobile Manufacturing : The average life of the machinery used in the manufacturing of automobile varies from 15 to 20 years. 4. Automobile Accessories : The over-all composite life of machinery in the manufacturing of automobile accessories is 15 years. 5. Automobile Repair Shops : The average composite life for automobile repair shops is approximately 10 years. 6. Bakery : Ovens 20 years 7. Brewery : The average useful life of machinery and equipment found in brewing companies is 20 years. Blower System - 15 yrs. Compressors - 20 yrs. Condensers - 15 yrs. Conveyors - 20 yrs. Coblers - 20 yrs. Dust Collecting System - 15 yrs. Elevators - 20 yrs. Extractors - 15 yrs. VAT - 30 yrs. Beer Filter - 20 yrs. Water Filter - 25 yrs. Gas Heater - 25 yrs. Water Heater - 25 yrs. Interchangers - 20 yrs. Tanks - 30 yrs. Piping - 20 yrs. Refrigerators System - 20 yrs. Pumps - 15 yrs. 8. Canned Products : The average life for machinery used in canning fruits and vegetables, varies 15 to 17 years. 9. Cement : The average life for machinery used in manufacturing cement varies from 20 to 25 years. 10. Cereals : The average life of a: a. Cereal Milling Machinery is 25 years. b. Machinery used in packing goods is 10 to 20 years. 11. Chemicals : The estimated average lives of machinery and equipment used in the manufacturing of: Acid - 15 yrs. Alkaline Products - 22 yrs. Aciline Dyes - 20 yrs. Atmospheric Nitrogen - 15 yrs. Carbide and Carbon Products - 15 yrs. Pharmaceuticals - 20 yrs. Chromium Products - 15 yrs. Coal Tar Products - 20 yrs. Electro Chemicals - 17 yrs. Oxygen Products - 18 yrs. Soaps - 20 yrs. 12. Clay Products : The average life of machinery and equipment used in manufacturing brick, china, pottery varies from 15 to 20 years. 13. Coffee, Tea and Spices : The life of the machinery and equipment used in manufacturing coffee, tea and spices is 17 years. 14. Confections : The equipment used in manufacturing confection has an average life of 15 years. 15. Paper Container : The composite life of machinery used for the making of paper containers is 22 years. 16. Cottonseed Oil : The average life of the machinery used in Cottonseed Oil Industry is approximately 25 years. 17. Dairy Products : The average life of machinery used in (a) pasteurizing and bottling of Dairy Products is 15 years (b) Milk Products is 20 years. DHITCc 18. Distilling : The average life of various machinery used in distillery industry are as follows: Bottling Machinery - 13 yrs. Controls, Electric - 15 yrs. Laboratory - 15 yrs. Piping - 20 yrs. Pumps - 15 yrs. Tanks - 22 yrs. 19. Glass Manufacturing : The composite life of machinery used in making glass container is 15 years. 20. Hotels : The average life of equipment used in hotels is 12 years. 21. Ice and Refrigerations : The average life of machinery used in ice industry is 20 years. 22. Iron and Steel Industry: The over-all life of machinery and equipment used in the iron and steel industry is 25 years. 23. Laundries : The composite life of laundry machinery is 14 years. 24. Leather Manufacturing Industry : The average life of shoemaking machinery is 15 years. 25. Lumber and Wood Products : The average life of sawmill machinery and equipment varies from 20 to 25 years. 26. Metal Products and Processed : The composite lives of machinery and equipment used in manufacturing metal equipments used in the following principal industries are as follows: Agricultural Equipment - 20-25 yrs. Aluminum ware - 20-25 yrs. Automobiles - 15-20 yrs. Bearings - 14-20 yrs. Boilers - 20-25 yrs. Brass and Copper stamping and casting - 15-20 yrs. Business machines - 15-20 yrs. Cans - 20-25 yrs. Chains - 20-25 yrs. Electrical equipment - 17-20 yrs. Engines & Turbines - 20-25 yrs. Hardware - 25-28 yrs. Wheels (auto) - 12-20 yrs. Heating - 20-25 yrs. Ice and Refrigeration - 17-20 yrs. Firearms - 18-20 yrs. Machine tools - 17-29 yrs. Pipe - 20-25 yrs. Machinery - 20-28 yrs. Plumbing - 15-20 yrs. Railroad equipment - 25-28 yrs. Refrigeration (household appliances) - 10-15 yrs. Sewing Machines - 14-18 yrs. Scales - 20-25 yrs. Ships - 20-25 yrs. Tractors - 12-20 yrs. 27. Oil and Gas : Pipe, Gas Distributor lines - 50 yrs. Casing - 20 yrs. Light, Equipt., gas and air - 10 yrs. Pumps, Filling Station - 10 yrs. Storage Tanks: Horizontal, Cylindrical - 30 yrs. Under ground - 20 yrs. Vacuum Plants - 15 yrs. Refinery - 25 yrs. Boilers - 30 yrs. Pumping Equipment - 33 yrs. 28. Packing Products : The average life of packing machinery and equipment is between 17 to 20 years. 29. Paints and Varnishes : The over-all life of machinery used in paints and varnish industry is 20 years. 30. Power Generations and Electric Equipment : The composite life of steam power and generating equipment ranges from 20 to 25 years. 31. Printing and Publishing : The composite life of machinery used in publishing companies is 17 years. 32. Steam Production : Boilers plants equipment - 28 yrs. Engines and generators - 30 yrs. Turbo-generators units - 30 yrs. Power plant equipment - 28 yrs. 33. Hydraulic Production : Turbines and Generator - 35 yrs. Power plant equipment - 35 yrs. 34. Transmission Equipment : Station equipment - 28 yrs. Towers - 50 yrs. 35. Ice Plants : The average life of machinery in ice plants is 22 years. 36. Gas Production Plant : Boiler Plant Equipment - 30 yrs. Power Equipment - 40 yrs. Production Equipment - 33 yrs. 37. Radio Broadcasting and Telegraphy : The composite over-all life for radio broadcasting and telegraphy equipment is 10 years. 38. Telephone Companies : Central Office Equipment - 24 yrs. Station apparatus - 6 yrs. 39. Pulp, Paper and Paper Board : Pulp Machinery and Equipment (Sulphate and Soda) - 20 yrs. Paper Mill Machinery - 22 yrs. 40. Rubber Goods : The average composite life of machinery used in the manufacture of rubber goods is 17 years. cEaSHC 41. Soft Drinks : The composite life of machinery used in the manufacture of soft drinks is from 13 to 15 years. 42. Sugar (Refinery) : a.) The average life of machinery used in the sugar plants varies from 40 to 50 years. b.) The average life of machinery used in sugar refinery varies from 28 to 30 years. 43. Textiles : The composite life of machinery used in: a.) Spinning and weaving cotton, - 25 yrs. wool and silk b.) Knitting - 15 yrs. c.) Rayon manufacturing - 16 yrs. 44. Tobacco Products : The average life machinery and equipment used in manufacturing tobacco varies from 15 to 20 years. Miscellaneous Provisions 1. As a general rule, 100% base value per square meter on residential and commercial lands shall be applied to within the first strip fronting roads or streets, land beyond the standard depth, that is 20 meters for residential and 30 meters for commercial, shall be valued 80% for the 2nd strip, 60% for 3rd strip, 40% for the 4th strip, and 20% for the 5th strip of the base value fixed for the road or street thereof for the remaining area, provided that the value per square meter for the last strip shall not be lower than the value per square meter of lots in the other street or of the interior lots as reflected in the Schedule of Base Market Value. 2. An abnormally low urban lands, a reduction from the base unit value may be allowed in the amount to the cost of filling up of such land, provided that such deduction shall exceed 30% of the value of the lot subject to appraisal if it were normally filled or leveled. 3. A reduction of 50% and 20% shall be applied from the base value fixed for lands along gravel, earth or dirt and proposed street or roads, respectively. In similar manner, if the street or roads and/or sections thereof are subsequently improved or constructed, the appraisal and assessment of the same shall be adjusted accordingly. 4. Corner influence of 10% of the base unit value shall be added to residential and commercial lots situated at the corner of the streets or roads. Provided, that if the streets or roads have different base unit value, the higher value shall be used in the computation thereof. An alley or callejon shall not be considered for the adjustment thereof. 5. Adjustment value for frontage shall be added to the valuation of all commercial lots fronting streets or roads. The same is derived by multiplying the length of frontage in linear meter by 50% of the unit base value thereof. 6. To arrive at a final value of agricultural land, the total base market value shall be multiplied by the percentage of adjustments as follows: A. Type of Roads: Provincial or National Roads - No deduction For all weather Roads - 3% deduction Along dirt Roads - 6% deduction For no road outlet - 9% deduction B. Type of Location: Distance in a) All Weather b) Local Trading Km. to: Road Center (Poblacion) 0 to 1 0% +5% over 1 to 3 -2% 0% over 3 to 6 -4% -2% over 6 to 9 -6% -4% over 9 -8% -6% 7. Value adjustment based on factors not specified in this Schedule of Fair Market Value (SFMV), such as but not limited to shape, topography, and blighted status of the lands that affect the value of the property being assessed, shall be applied. 8. Vacant or Idle land located in the purely residential area shall be classified as residential. If such land is located in a purely commercial area the same shall be classified as commercial. Mixed residential-commercial area, the same shall be classified according to the class which is more predominant. 9. Building shall be generally classified and value in accordance with the structural designs for which they were intended regardless of their actual use. Individual property adjustment pursuant to this approved SFMV shall be consistently enforced. 10. In case of buildings, machinery and other structures already covered by existing assessment, the Reproduction/Replacement Cost New Less Depreciation (RCNLD) approach shall be applied. 11. The appraisal of machinery for tax purposes shall be based on its actual cost to the owner when it was acquired which shall include the acquisition cost plus the cost of freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes (if imported). Plus the cost of inland transportation, handling and installation charges at the present site. 12. For purposes of assessment, a depreciation allowance shall be made for machinery at a rate not exceeding five percent (5%) of its original cost or its replacement or reproduction cost, as the case may be, for each year of use: Provided, however, that the remaining value for all kinds of machinery shall be fixed at not less than twenty percent (20%) of such original, replacement or reproduction cost for as long as the machinery is useful and in operation. CTIEac 13. As a general rule, the classification, appraisal, and assessment of real property for taxation purposes, shall be governed by the provisions of R.A.7160 and its implementing rules and regulations and other existing laws and rules issued by the Department of Finance thru the Bureau of Local Government Finance (DOF-BLGF). Note : As far as properly applicable, this Schedule of Values shall be controlling; but where the property to be assessed is of a kind not classified in this schedule or of a kind which value is not herein fixed, it shall be appraised at its full and true value independently of this schedule and assessed for taxation purposes at a uniform level of percentage of value fixed for the city.