Amending Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code)

May 25, 1978

PRESIDENTIAL DECREE NO. 1383

AMENDING SECTIONS THREE, PARAGRAPHS (m); SIX; TWENTY; EIGHTY-EIGHT; NINETY AND ONE HUNDRED FOUR OF PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED SIXTY FOUR, AS AMENDED, OTHERWISE KNOWN AS THE REAL PROPERTY TAX CODE

WHEREAS, in the implementation of the Real Property Tax Code enacted under P.D. 464, as amended, certain common problems and difficulties are encountered in the proper classification, appraisal, and assessment of real property, particularly building, other improvements, and machinery;

WHEREAS, in order to enhance the establishment of an updated and more responsive system of valuation for taxation purposes, it has become necessary to provide more realistic levels of assessment for the various types of real property;

WHEREAS, there is a continuous need to upgrade and professionalize the local government assessment service to promote higher standards of performance efficiency;

WHEREAS, in order to meet the requirements of prevailing conditions, it is imperative to amend the pertinent provisions of the Real Property Tax Code; cd

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order to form part of the laws of the land, the following:

SECTION 1. Section 3, paragraph (m), of Presidential Decree No. 464 is hereby amended to read as follows:

". . .

"(m) Machinery — shall embrace machines, equipment, mechanical contrivances, instruments, appliances and apparatus attached to the real estate. It shall include the physical facilities available for production, as well as the installations and appurtenant service facilities, together with all those 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."

SECTION 2. There is hereby inserted after Section 6 of Presidential Decree No. 464 a new section to be designated as Section 6-A, which shall read as follows:

"SEC. 6-A.  It shall also be the duty of any person or his authorized representative acquiring at any time real property in any municipality or city or making any improvement on real property, to prepare, or cause to be prepared, and file with the provincial, city, or municipal 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 dated comes earlier."

SECTION 3. To provide a reasonable basis for the assessment of real property for taxation purposes, Section 20, paragraph (c) of Presidential Decree No. 464 is hereby amended to read as follows: casia

"SEC. 20.  Assessment Level. — The assessment levels to be applied to the current market values of real property for taxation purposes, shall be as follows:

(a) On Lands. — . . .

(b) On Mineral Lands. — . . .

(c) On Buildings, Machineries and Other Improvements. — The assessment levels shall be as follows:

1. For buildings and other improvements:

	Assessment Levels
Market Value	Residential	Commercial/	Agricultural
		Industrial
P30,000 or less	15%	50%	40%
More than P30,000 but
not exceeding P50,000	20%	55%	45%
More than P50,000 but
not exceeding P75,000	25%	60%	50%
More than P75,000 but
not exceeding P125,000	35%	65%	55%
More than P125,000 but
not exceeding P175,000	45%	70%	60%
More than P175,000 but
not exceeding P250,000	55%	75%	65%
More than P250,000 but
not exceeding P350,000	65%	80%	70%
More than P350,000 but
not exceeding P500,000	75%	80%	75%
More than P500,000	80%	80%	80%

2. For Machineries:

ACTUAL USE	ASSESSMENT LEVEL
Agricultural	60%
Residential	70%
Commercial	80%
Industrial	80%

(d) Special Class. — . . . ."

SECTION 4. Section 40, paragraph (e), of Presidential Decree No. 464, is hereby amended to read as follows: cd

"(a)  . . .

(b)  . . .

(c)  . . .

(d)  . . .

(e) Land acquired by grant, purchase of lease from the public domain for conversion into dairy farms for a period of five years from the time of such conversion; and machinery of a pioneer and preferred industry as certified by the Board of Investments used or operated for industrial, agricultural, manufacturing or mining purposes, during the first three years of the operation of the machinery." aisa dc

SECTION 5. The third and fifth paragraphs of Section 88 of Presidential Decree No. 464 are hereby amended to read as follows:

"SEC. 88. Provincial and City Assessor, his Assistant and Deputy and their appointments.

xxx xxx xxx

Upon the approval of this Code, no person shall be appointed to the position of provincial or city assessor or assistant provincial or city assessor, unless he possesses a degree in law, civil, mechanical, industrial, agricultural or geodetic engineering, architecture; forestry; agriculture; commerce or business administration; or a bachelor's degree in education, arts and sciences, major in mathematics or statistics; or any related courses; has qualified in an appropriate Civil Service Examination and has acquired at least five years experience in real property assessment work, or at least three years in the case of assistant provincial or city assessor. For every year lacking in educational attainment, a two-year experience in real property assessment work in addition to the foregoing experience requirement may be substituted; Provided, However, That he shall have completed at least two years of any of the college courses aforementioned.

xxx xxx xxx

The other employees in the assessment office, whose number and salaries shall be fixed by the Sangguniang Panlalawigan or Panlungsod shall be appointed by the Provincial Governor or City Mayor upon recommendation of the provincial or city assessor, in conformity with the provisions of this Section and the Civil Service Law: Provided, That there shall be in each provincial or city assessment office one Chief Deputy Assessor and at least three deputy assessors to perform full-time field assessment work. Any person with at least two years college education in any of the courses required for provincial or city assessor and who possesses an appropriate Civil Service eligibility shall be deemed qualified for appointment as Chief Deputy Assessor if he has at least three years' experience, both in real property assessment work. The Chief Deputy Assessor shall be appointed by the Provincial Governor or City Mayor upon recommendation of the Provincial or City Assessor, as the case may be, in conformity with the provisions of this Section and the Civil Service Law, subject to the approval of the Secretary of Finance." acd

SECTION 6. A new Section is hereby inserted after Section 90 of Presidential Decree No. 464, hereby denominated as Section 90-A which shall read as follows:

"SEC. 90-A (a) The position title of Municipal Deputy Assessor is hereby changed to Deputy Provincial and Municipal Assessor.

Municipal Deputy Assessors, who, at the time of the approval of this Decree, are holding permanent appointments shall continue in such capacity without the necessity of issuance of new appointments; Provided, However, That they shall henceforth be known as Deputy Provincial and Municipal Assessors.

(b) Beginning January 1, 1979, the position of Deputy Provincial and Municipal Assessor shall be created in all municipalities.

No new appointment for Ex-Officio Deputy Assessor shall be issued beginning January 1, 1979; Provided, However, That those holding appointments as such as Ex-Office Deputy Assessor at the time of the approval of this Decree may continue in Office as such until the appointment of a regular Deputy Provincial and Municipal Assessor, or upon expiration of the twelve-month period covered by his present appointment, whichever comes earlier.

(c)  Any person with a bachelor's degree in law, civil, mechanical, industrial, agricultural or geodetic engineering; architecture; forestry; agriculture; commerce or business administration, or a bachelor's degree in education, arts and sciences, major in mathematics or statistics; or any other related college course; has qualified in an appropriate civil service examination and has acquired at least two years experience in real property assessment work, shall be deemed qualified for appointment as Deputy Provincial and Municipal Assessor. A two-year experience in real property assessment work may be substituted for every year lacking in the abovementioned educational requirement; Provided, However, That the appointee shall have completed at least two years of any of the college courses abovementioned. cdt

(d) A municipality may create the position of Assistant Municipal Assessor, whose salary shall be equal to the rate authorized for the Assistant Municipal Treasurer of the same municipality, payable from the municipal funds. The Assistant Municipal Assessor upon recommendation of the Deputy Provincial and Municipal Assessor shall be appointed by the Provincial Assessor upon recommendation of the Deputy Provincial and Municipal Assessor, subject to the approval of the Secretary of Finance. In the municipalities of Metropolitan Manila, the Assistant Municipal Assessor shall be appointed by the Commissioner for Finance of the Metropolitan Manila Commission upon recommendation of the Municipal Assessor and with the approval of the Secretary of Finance. The educational requirements prescribed for the position of Deputy Provincial and Municipal Assessor shall likewise apply to the Assistant Municipal Assessor, provided, however, that he possesses an appropriate civil service eligibility and at least one year experience in real property assessment work. For every year lacking in the aforementioned educational requirements, a two-year experience in real property assessment work may be substituted; Provided, That the appointee shall have completed at least two years of any of the college courses aforementioned." casia

SECTION 7. Section 104 of Presidential Decree No. 464 is hereby amended to read as follows:

"SEC. 104. Failure to file Declaration and Other Prohibited Acts. — Any person required under the provisions of this Code to declare real property whether taxable or exempt, who fails to file such declaration under the terms and conditions prescribed therefor, shall upon conviction be punished by a fine of not more than one thousand pesos or by imprisonment of not more than one year, or both, at the discretion of the Court; Provided, However, That if a violator shall voluntarily agree to pay a fine without necessity of filing a case in court, the Provincial, City or Municipal Assessor shall recommend the collection of a fine by the Provincial, City or Municipal Treasurer in accordance with the rates to be fixed by the Secretary of Finance on the basis of the assessed value of subject property. The funds herein collected shall be appropriated for the operation of the Office of the Provincial, City or Municipal Assessor, as the case may be."

SECTION 8. Repealing Clause. — All laws, decrees, orders, rules and regulations which are contrary to, or inconsistent with the provisions of this Decree are hereby repealed or modified accordingly. casia

SECTION 9. Implementing Rules. — The Secretary of Finance shall issue the rules and regulations for the proper implementation of this Decree.

SECTION 10. Effectivity. — Except as otherwise herein provided for, this Decree shall take effect immediately.

DONE in the City of Manila, this 25th day of May, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

Published in the Official Gazette, Vol. 79 No. 20 Page 2928 on May 16, 1983. 

Published in the Official Gazette, Vol. 74 No. 37, 5733-P Supp., on September 11, 1978.