AN ORDINANCE PRESCRIBING A REVISED SCHEDULE OF FAIR MARKET VALUES OF REAL PROPERTIES IN THE CITY OF MANILA

November 26, 2013 MANILA CITY ORDINANCE NO. 8330 AN ORDINANCE PRESCRIBING A REVISED SCHEDULE OF FAIR MARKET VALUES OF REAL PROPERTIES IN THE CITY OF MANILA PRINCIPAL AUTHOR: Hon. Raymundo R. Yupangco "1. On buildings and other structures: Residential Fair Market Value Over Not Over Assessment Levels P175,000 & Below 0% 175,000 300,000 10% 300,000 500,000 20% 500,000 750,000 25% 750,000 1,000,000 30% 1,000,000 2,000,000 35% 2,000,000 5,000,000 40% 5,000,000 10,000,000 50% 10,000,000 60% Commercial/Industrial Fair Market Value: Over Not Over Assessment Levels 300,000 & Below 30% 300,000 500,000 35% 500,000 750,000 40% 750,000 1,000,000 50% 1,000,000 2,000,000 60% 2,000,000 5,000,000 70% 5,000,000 10,000,000 75% 10,000,000 80% 2. On machineries: Class Assessment Levels Residential 50% Commercial 80% Industrial 80% 3. On special classes The assessment levels for all lands, buildings, machineries and other improvements shall be as follows: Actual Use Assessment Levels Cultural 15% Scientific 15% Hospital 15% Local Water Districts 10% Government-owned or controlled Corporations engaged in the supply and distribution of water and/or Generation and transmission of Electric power 10%" WHEREAS, Section 219 of R.A. 7160, otherwise known as "The Local Government Code of 1991", empowers the local government units to undertake the general revision of real property assessments within two (2) years after the effectivity of the Code and every three (3) years thereafter; WHEREAS, real property taxes are undoubtedly a major source of revenues to finance the various programs and projects of the City of Manila as well as the delivery of basic services to its constituents; WHEREAS, the City of Manila has not revised the schedule of values of real properties within its territorial jurisdiction since 1996 or for the past seventeen years, and failed to judiciously exercise this mandate, resulting in deprivation of needed revenues: NOW, THEREFORE, Be it ordained by the City Council of Manila, in session assembled, THAT: SECTION 1. Title. This Ordinance shall be known and cited as: "The 2014 GENERAL REVISION OF REAL PROPERTY ASSESSMENTS". caIETS SECTION 2. A revised schedule of fair market values of real property in the City of Manila as embodied in the Schedule of Market Values for Land, Building and Machinery, herein marked as Annex "A" which form integral parts hereof, including the general provisions thereon, is hereby prescribed. SECTION 3. The Department of Assessment shall adopt the newly approved schedules specified in Section 1 hereof: PROVIDED, that : a) The assessment levels shall conform with Sec. 218 of R.A. 7160, supra , for residential, commercial and industrial classifications as well as on special classes of land, building and machinery and shall adopt and apply the provisions of Section 1 of City Ordinance No. 8079, enacted on September 7, 2004 and approved on September 29, 2004, amending Section 74 (A) of City Ordinance No. 7905 EXCEPT as to the Assessment Levels on Land assigned to classes of real properties, which is herein superseded and modified, and shall read as follows: "1. On Land Class Assessment Level Residential 10% Commercial 30% Industrial 30%" b) For buildings and other structures including machineries, the Assessment Levels to be applied to the fair market value to determine its Assessed Value shall be as follows to arrive at the aggregate market values as provided for under Ordinance No. 8079. IDcAHT c) In the assessment of a condominium building, the roof deck, its foundation and its structural component shall form part of the common area. The common areas as well as the saleable area form an integral part of the building and shall be added to the value of the saleable area, which shall produce the market value of the condominium building. The segregated condominium units which have been issued individual Condominium Certificate of Title (CCT) shall be assessed using the "weighted average method", wherein the aggregate values shall be distributed proportionately based on the unit area indicated in the CCT. This shall be applicable in the assessment of townhouses and apartments with individual Condominium Certificates of Title or Transfer Certificate of Title. Any improvement introduced later by the unit buyers, owners or developers of condominium units, apartment units or townhouses, shall be assessed independently using the Schedule of Values for additional components and "extras" as guide for appraisal/assessment. The assessed value of the additional component of unit shall then be added to the unit's original assessed value. EAHcCT d) The amount of tax to be paid by virtue hereof shall in no case be lower than the tax imposed thereon in 2013. Any tax increase, as a consequence of this Ordinance, shall be staggered into two (2) years at the rate of 60% and 40% for the first year (2014) and for the second year (2015), respectively, provided that the said rates are based on the incremental values of real properties. However, i) For the first year (2014), the total amount of tax to be paid on Land, Buildings and other Structures, and Machineries used for residential, commercial and industrial shall in no case be more than double of the tax imposed for 2013 of the same real property; ii) For the second year (2015) and succeeding years, the total amount of tax to be paid shall in no case exceed by 150% of the tax imposed for 2013; iii) It is understood therefore that the herein staggered relief pursuant to Section 192 of R.A. 7160, Ibid., shall be applied only for a period of two (2) years from the effectivity hereof. SECTION 4. Those properties which have been declared and assessed as new or re-assessed increasing the assessment prior to the effectivity of this Ordinance, with tax declarations having been issued and bearing effectivity dates of January 1, 2012, January 1, 2013 and January 1, 2014, shall be re-assessed under this Ordinance, three (3) years after the effectivity date as appearing in the said tax declaration. SECTION 5. Expenses incident to the general revision of real property assessment and monitoring of collection of real property taxes shall be shared proportionately by the City, the City School Board, and the Barangays. The share of the City shall be provided in the appropriation ordinance. The share of a barangay shall be based on its share of the proceeds of the real property tax while the share of the City School Board shall be taken from the Special Education Fund. EHTSCD SECTION 6. If any part, section or provision of this Ordinance, for whatsoever reason, be held invalid or unconstitutional, other parts or portions thereof which are not affected thereby shall remain valid. SECTION 7. All other ordinances, acts, administrative orders, rules and regulations inconsistent with or contrary to the provisions of this Ordinance are hereby deemed amended, modified or otherwise repealed accordingly. SECTION 8. Effectivity Clause. This Ordinance shall take effect immediately. This Ordinance was finally enacted by the City Council of Manila on November 26, 2013. Approved by His Honor, the Mayor, on December 3, 2013. PRESIDED BY: (SGD.) ERNESTO C. ISIP, JR. Acting Presiding Officer City Council, Manila ATTESTED: (SGD.) LUCH R. GEMPIS, JR. City Government Department Head III (Secretary to the City Council) (SGD.) JOSEPH EJERCITO ESTRADA Mayor City of Manila ATTESTED: (SGD.) EDWARD S. SERAPIO City Government Department Head III (Secretary to the Mayor) Published in The Daily Tribute on December 6, 2013.