Alaminos Law Blog: Public Instrument

Alaminos Law Blog: Public Instrument: Sina Daniel and Katerina ay ikakasal pagkatapos ng tatlong buwan.  Samantala, para ipakita ang kanyang pag-ibig, nagdonate si Daniel ng ...

Alaminos Law Blog: Public Instrument

Alaminos Law Blog: Public Instrument: Sina Daniel and Katerina ay ikakasal pagkatapos ng tatlong buwan.  Samantala, para ipakita ang kanyang pag-ibig, nagdonate si Daniel ng ...

Tax Deed Versus Tax Lien | Tax Sales Secrets .com

Tax Deed Versus Tax Lien | Tax Sales Secrets .com

Tax Liens, Tax Deeds, and Tax Deed Overages.mp4

Words and Phrases

SEC. 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:

(a) Real property shall be appraised at its current and fair market value;

Comments

Local government unit under RA 7160 is empowered to enact laws regarding value of properties for their local government. This is the basis of appraising property properties, located within their locality

(b) Real property shall be classified for assessment purposes on the basis of its actual use;

Comments

Properties regardless of where located or who owns it, shall be assessed on the basis of actual use.

(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;

Comments

There should be uniformity of appraisal and assessment in each local government unit.

(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and

Comments

Appraisal, assessment, levy and collections are functions of people who are by law authorized to appraise, assess and collect taxes.

(e) The appraisal and assessment of real property shall be equitable.

Comments:

That real properties should be appraised and assessed equitably. It must not be oppressive and confiscatory. In other words, it is mind- bungling "to kill the hen the lays the golden egg."

SEC. 199. Definitions. - When used in this Title: (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;

Since some of the terms are self-explanatory, I would center my comments on those I believed foreign to many. However, I would advise my reader to just ask for anything that you wish to be clarified with.

(b) "Actual Use" refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof;

Comments

A building located in areas considered or classified at commercial can still be classified for taxation purposes if the actual use of the building is used as residential by the owner.

(c) "Ad Valorem Tax" is a levy on real property determined on the basis of a fixed proportion of the value of the property;

(d) "Agricultural Land" is land devoted principally to the planting of trees, raising of crops, livestock and poultry, dairying, salt making, inland fishing and similar aquacultural activities, 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 proportion thereof subject to tax, including the discovery, listing, classification, and appraisal of properties;

(g) "Assessment Level" is the percentage applied to the fair market value to determine the taxable value of the property;

Comments-Expressed in terrms of percentage and are used by Assessors in arriving at the 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;

This is the amount arrived at by multiplying the Market Value by the assessment level

Illustrative example

Area of residential land 1,000 sqm

Schedule of Market Value per sqm Php 1,500 /sqm

Assessment level is 10%

Tax rate of Davao City is 1 1/2% for basic tax

and 1.0% for Special educational tax

How to arrive at the following:

1. Market Value= 1,000 x 1,500 or Php 1,500,000

2. Assessed Value=1,500,000 x 10% or Php 150,000

3. Annual Tax Due= 150,000 x .025 or Php3,750.00

(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 a 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 land;

(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 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 reappraisal of the property;

(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 material; and

(u) "Residential Land" is land principally devoted to habitation.