Guidelines for the Assessment of Machinery Under Section 3 (m) of Presidential Decree No. 464, as Amended by Section 1 of Presidential Decree No. 1383

October 16, 1979 MINISTRY OF FINANCE ASSESSMENT REGULATIONS NO. 002-79 SUBJECT : Guidelines for the Assessment of Machinery Under Section 3 (m) of Presidential Decree No. 4 64, as Amended by Section 1 of Presidential Decree No. 13 83 TO : All Acting Regional Directors for Local Government Finance, Assistant for Finance of the Metropolitan Manila Commission, Provincial, City and Municipal Assessors and Treasurers For the proper implementation of Section 3 (m) of Presidential Decree No. 464, as amended by Section 1 of Presidential Decree No. 1383, the following guidelines for the assessment of machineries are hereby prescribed: RULE 1. Machineries which are Considered as Real Property. Pursuant to Section 1 of Presidential Decree No. 1383, amending Section 3 (m) of PD 464, as amended, the following machineries are considered real property for taxation purposes: (a) Machines, equipment, mechanical contrivances, instruments, appliances and apparatus permanently attached to the real estate including their auxiliary facilities and/or accessories; (b) Machines, equipment, mechanical contrivances, instruments, appliances and apparatus although not permanently attached to the real estate but are actually, directly and essentially used to meet the needs of the particular industry, business, or works which by their very nature and purpose are designed for, or essential to manufacturing, commercial, mining, industrial or agricultural purposes, including their auxiliary facilities and/or accessories. RULE 2. Machineries which are Not Considered as Real Property. The provision of Rule 1 hereof to the contrary notwithstanding, machines, equipment, mechanical contrivances, instruments, appliances and apparatus, which are mobile, self-powered or self-propelled, operating on wheels or floaters, such as cars, trucks, airplanes, tractors, bulldozers, graders, loaders, yarders, cranes, trains, ships, boats and/or similar kinds, although essential to meet the needs of a particular industry, business and works are NOT considered real property for taxation purposes. RULE 3. Appraisal and Assessment of Machinery. Appraisal and assessment of machinery for real property taxation purposes shall be governed by the rules and regulations prescribed under Department Order No. 22-73 dated June 18, 1973 of this Ministry. TAacHE RULE 4. Repealing Clause. All existing orders, rules, regulations, circulars, and other issuances of this Ministry which are contrary to, or inconsistent with these regulations are hereby repealed or modified accordingly. RULE 5. Effectivity. These regulations shall take effect immediately. All Provincial Assessors and Treasurers are hereby directed to transmit the contents hereof to all Deputy Provincial and Municipal Assessors and Treasurers under their respective jurisdiction for their guidance and strict compliance. (SGD.) PEDRO M. ALMANZOR Acting Minister of Finance