Rules and Regulations for the Implementation of Presidential Decree No. 76, dated December 6, 1972, Relating to the Filing of Sworn Statement of the True Value of Real Property, Including the Improvements Thereon, Not Later Than June 30, 1973

February 1, 1973 REVENUE MEMORANDUM CIRCULAR NO. 16-73 SUBJECT : Rules and Regulations for the Implementation of Presidential Decree No. 76, dated December 6, 1972, Relating to the Filing of Sworn Statement of the True Value of Real Property, Including the Improvements Thereon, Not Later Than June 30, 1973 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, Department Order No. 59-72, dated December 8, 1972, is quoted hereunder: "DEPARTMENT ORDER No. 59-72 "December 8, 1972 "SUBJECT : Rules and regulations for the implementation of Presidential Decree No. 76 dated December 6, 1972, relating to the filing of sworn statement of the true value of real property, including the improvements thereon, not later than June 30, 1973. "I. PURPOSE "This Order hereby prescribed the rules and regulations to be followed in implementing Presidential Decree No. 76, relating to the filing not later than June 30, 1973 by the owner or administrator of real property, including the improvements thereof, of a sworn statement of the true value of said property. "II. RULES AND REGULATIONS "1. The proper implementation of the pertinent provisions of Presidential Decree No. 76 is the responsibility of Provincial and City Assessors, Provincial and City Treasurers, and Provincial, City, Municipal or Municipal District Boards or Councils of the province, city, municipality or municipal district concerned, under the direction and supervision of the Secretary of Finance. "2. For purposes of the Decree, commercial, industrial residential and agricultural lands are defined as follows: Commercial Land devoted principally to, or potentially suitable for, commercial purposes, and generally for the object of profit. Industrial Land devoted principally to, or potentially suitable for, industry as capital investment. Residential Land devoted principally to, or potentially suitable for, the habitation of the owner. Agricultural Land devoted principally to, or potentially suitable for, the raising of crops such as rice, sugar, tobacco, coconut, etc., or to pasturing, dairying, inland fishery, including timberlands, forestlands and other agricultural uses. "3. Forms to be used. For purposes of expediency in the filing of sworn statements herein required, Assessment Form No. 1 is prescribed for the cities and Provincial Form No. 140 (Revised) for the municipalities and municipal districts. These forms shall be modified for purposes of Presidential Decree No. 76 by substituting the phrase "Presidential Decree No. 76" over the printed phrase, "Commonwealth Act No. 530." "4. The statement of the owner or administrator or of their duly authorized representative certifying the true value of the property shall be subscribed under oath, free of charge, before the provincial or city assessor, his deputy, the municipal treasurer, or before any other public officer authorized to administer oath. When the statement is made by the authorized representative, the oath of such representative is sufficient to entitle him to consideration as such, without need of a written authority or special power of attorney from the owner or administrator. "5. Where land is declared for the first time, the corresponding sworn statement which sufficiently describes the property can be accepted without requiring other evidence of ownership, such statement, being adequate for purposes for which the same is being required under the Decree. "6. In fixing the assessed valuation of the real property in accordance with the schedule of market values required to be prepared under the Decree, the portion "assessment by provincial or city assessor" of Assessment Form No. 1 and Provincial Form No. 140 (Revised) shall be modified to indicate not only the assessed value but also the assessment level and the market value of the property as per schedule of market values, thus: Assessed Assessment Level Market Value Value Total Value of land P _______ ___________% P _______ Total Value of improvements _______ ___________ _______ Total Assessed Value P_______ "7. All tax declarations covering exempt property must be stamped "EXEMPT" in bold letters on the face of all the copies thereof. "8. The assessed value (not the market value) fixed under the Decree shall be the basis for the collection of the basic real property tax and the additional one per centum for the Special Education Fund, beginning January 1, 1974. Certification of the assessor to the Secretary of Finance as to the completion of the assessments herein referred to is not required; Provided , That completion of subsequent general revision of assessments contemplated in the Decree shall be certified to the Secretary of Finance not later than December fifteen of the year immediately preceding that in which the revised assessment are to become effective. "9. The schedule of market values to be prepared by the provincial or city assessors under Section 6 of the Decree, using the format prescribed in Provincial Circular No. 1-63, dated January 11, 1963 of this Department and the value approaches, namely, market data, cost and income, shall be based on the current and fair market value obtaining in the locality where the property is situated. Said schedule of market values shall be used as the basis of computing the assessed value of lands as soon as copy thereof is furnished the Secretary of Finance; Provided, That once said schedule of market values is put to use, any modification or revision thereof shall be subject to the approval of the Secretary of Finance. "10. The present table of costs for buildings shall be updated to reflect current cost of materials and labor. All buildings and other structures, including machineries, shall be assessed or reassessed on the basis of their current reproduction cost or original cost, less depreciation, and the current level of assessment of such properties; Provided, That such level shall not be less than that of the land on which the improvement is erected nor more than eighty per centum of the current and fair market value, except for purely residential houses used as residences of the owners thereof whose assessment levels are fixed in the decree. "11. The tax rates now enforced in provinces and cities shall be maintained. Both the basic tax and the additional 1% realty tax levied under Republic Act No. 5447 must be collected together and, in case only a portion of the tax is paid, such payment must be deemed to apply to both. "12. The new rate of penalty for late payment of real property tax, both the basic and the additional 1%, provided under Section 10 of the Decree shall be uniformly applied in all provinces and cities beginning with the tax accruing in 1974. The penalty for late payment of the realty tax to become due in 1973 and the delinquent taxes for the previous years shall be computed on the basic of the rate of penalty in force during the corresponding year. "13. All existing rules and regulations inconsistent with this Order are hereby revoked or modified accordingly. "(Sgd.) CESAR VIRATA Secretary" All those concerned are enjoined to be guide accordingly. aisa dc MISAEL P. VERA Commissioner of Internal Revenue