Manual On Real Estate Appraisal and Assessment

BLGF Draft of Local Assessment Manual (As of September 12, 2003)
This is an Electronic Copy of BLGF documents. Please see Terms of Use and Disclaimer from www.blgf.gov.ph
FOREWORD
Pursuant to the provisions of Section 4, 3rd paragraph, of EO 127, the Department of
Finance shall be responsible for the supervision of the revenue operations of all local
government units. The Bureau of Local Government Finance, pursuant to Section 33 of the
Revised Administrative Code of 1987, shall assist the Department of Finance in the
formulation and implementation of policies over local government revenue administration
and fund management. Likewise, BLGF shall exercise technical supervision over the
assessment operations of all local governments.
Sections 201 of the Local Government Code of 1991 and Article 291 of its
Implementing Rules and Regulations (IRR) provide that the Department of Finance shall
promulgate the necessary rules and regulations for the classification, appraisal, and
assessment of real property. For this purpose, the Department of Finance (DOF) has
constituted a Committee composed of the officials and staff of the Bureau of Local
Government Finance (BLGF) and Provincial, City and Municipal Assessors to formulate a
Manual on Real Property Appraisal and Assessment Operations, which shall serve as a
guide for assessors all over the country.
This Manual is issued to provide local assessment and treasury officials, local
Sanggunians, the local Chief Executives, the local and national officials and others
concerned with an integrated and updated reference in real property assessment
administration. The Manual will serve as a valuable and effective guide for the Assessors in
discharging their functions in accordance with the new concepts of property valuation and
assessment envisioned under the Local Government Code of 1991.
This Manual essentially covers the standard operations and procedures in the
classification, appraisal and assessment of real property for compliance of all local
assessors. It is presented in a modest manner to provide an easy flow of information
pertaining to the statutory and administrative aspects of real property tax administration
with the end in view of attaining fairness and equity in the distribution of tax burden.
This Manual is divided into six Chapters, as follows:
Chapter I
Local Government Assessment Organization
Chapter II
Assessment Operations
Chapter III
Records Management
Chapter IV
Miscellaneous Provisions
Chapter V
Penal Provisions
Chapter VI
Repealing and Effectivity Clause
Historical Background of Real Property Taxation in the Philippines
During the encomienda system of the Spanish Era, there was no real property tax in
the Philippines. Taxes on land were levied primarily on the male tenant of 16-60 years old
as personal taxes or tributes rather than the real land taxes. They were paid generally in the
form of agricultural products for the privilege to work on the land of the encomiendas.
1

It was in 1901, during the American Regime that the real property taxation in the
Philippines was formally instituted. In 1901, Act Nos. 82 and 83 of the Philippine
Commission organized the municipal and provincial governments, respectively. These laws
authorized the municipality and the province to levy taxes on real properties. These taxes
became the primary source of locally-generated revenues. Likewise, Provincial and
Municipal Board of Assessors were created under the same law in each province and
municipality. The Municipal Board was charged with the assessing of real properties for
taxation purposes while the Provincial Board was authorized to levy an annual tax on the
real property assessed value. The said Act also charged the Provincial Treasurer of the
supervision of the real property assessment and tax collection.
Other laws affecting assessment and taxation of real property were enacted and were
later compiled and incorporated in the Administrative Code of 1916 under the Jones Law.
On December 5, 1932, Act No. 3995 An Act Revising and Compiling the
Assessment Laws was passed, which in effect repealed, compiled and incorporated into a
single Body all existing laws relating to the assessment and collection of real property taxes.
Then in July 1939, the National Assembly passed Commonwealth Act No. 470
repealing Act No. 3995. CA No. 470 continued as the Assessment Law from 1940 until the
birth of the new society in 1972 when His Excellency, President Ferdinand E. Marcos
initiated reforms in real property tax administration under Presidential Decree (PD) Nos. 25
and 76.
On May 20, 1974, PD No. 464 entitled The Real Property Tax Code was
promulgated as the law governing the Real Property Tax Administration in the Philippines.
The said law was designed to upgrade the assessment techniques, procedures and practices
in the country.
As provided under Section 8 of Batas Pambansa Blg. 337, dated February 10, 1983,
the Real Property Tax Code (PD 464) was recognized under the Local Government Code of
1983. Accordingly, PD 464, as amended, continued to be the governing laws relative to the
appraisal and assessment of real property for taxation purposes, as well as the levy,
collection and administration of the real property tax until the year 1991 wherein Title II
Book II of the Local Government Code (Republic Act No. 7160) has integrated the law on
real property taxation and repealing PD 464 in the process. Significant changes in the legal
framework, concepts and procedures embodied in the Local Government Code will be
comprehensively discussed in this Manual.
The Present Role of the Local Assessor
The Local Assessor shall take charge of the discovery, classification, appraisal,
assessment and valuation of all real properties within his territorial jurisdiction which shall
be used as the basis for taxation. His duties include the preparation, installation and
maintenance of a system of tax mapping and records management and the preparation of a
Schedule of Fair Market Values of the different classes of real property within his territory.

CHAPTER I
LOCAL GOVERNMENT ASSESSMENT ORGANIZATION
SECTION 1. - LOCAL ASSESSMENT PERSONNEL ADMINISTRATION
I. Appointment of Provincial, City and Municipal Assessors
A. Manner of Appointment The Local Assessor shall be appointed by the
Local Chief Executive concerned, subject to the Civil Service law, rules and
regulations.
All incumbent Assessors holding permanent appointment (appointed
by the President or the Secretary of Finance) shall continue in Office without
need of further appointment. The local chief executive may exercise his
power to appoint the Assessor only when permanent vacancy occurs.
B. Nature of Position - The appointment of an assessor shall be mandatory for
all provincial, city and municipal governments
C. Qualification Requirements - No person shall be appointed assessor unless
he is a citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree preferably
in civil or mechanical engineering, commerce or any other related course
from a recognized college or university and a first grade civil service eligible
or its equivalent. He must have acquired experience in real property
assessment work or in any related field for at least five (5) years in the case
of the city or provincial assessor, and three (3) years in the case of the
municipal assessor.
Experience in related field means actual work experience acquired
from the Bureau of Local Government Finance and its Regional Offices, real
property appraisal, treasury (Land Tax Division), shall be considered
functional experience in the assessment service.
Nobody shall be appointed or designated local Assessor if he does
not possess the minimum requirements for appointment as provided in the
LGC, otherwise, the appointment or designation shall be considered invalid
or without effect.

II.
Appointment of Assistant Assessor.

A. Manner of Appointment The Assistant Assessor may be appointed by
the Local Chief Executive concerned, subject to the Civil Service law,
rules and regulations.
All incumbent Assistant Assessors holding permanent
appointments shall continue in office without need of further
appointment. The local chief executive shall exercise his power to
appoint the assistant assessor only when a vacancy occurs.
B. Nature of Position The appointment of an assistant assessor shall be
optional for provincial, city and municipal governments.
C. Qualification Requirements No person shall be appointed assistant
assessor unless he is a citizen of the Philippines, a resident of the local
government unit concerned, of good moral character, a holder of a
college degree preferably in civil or mechanical engineering, commerce,
or any related course from a recognized college or university, and a first
grade civil service eligible or its equivalent. He must have acquired
experience in assessment or in any related field for at least three (3) years
in the case of the city or provincial assistant assessor, and one (1) year in
the case of the municipal assistant assessor.
III.
Duties, Functions and Responsibilities of Local Assessors.

A. Major Functions
1. Establish a systematic method of assessment in the manner prescribed
herein and in accordance with the rules and regulations issued by the
Secretary of Finance;
2. Install and maintain real property identification and accounting system
conforming to the standards prescribed by the Secretary of Finance;
3. Prepare, install and maintain a system of tax mapping showing
graphically all property subject to assessment in the province, city, or
municipality within Metro Manila and gather all necessary data
concerning the same;
4. Undertake a general revision of real property assessments within two (2)
years after the effectivity of the Local Government Code and every three
(3) years thereafter;
5. Make frequent physical surveys to check and determine whether all real
property within the locality are properly listed in the assessment rolls;

6. Appraise all items of real property at current market value in accordance

with R. A. 7160 and conduct ocular inspections to determine if all
properties are assessed properly;
7. Issue Tax Declaration/s covering newly discovered properties and
transactions involving transfer of ownership, subdivision/segregation of
land into two or more parcels, and/or consolidation of two or more
parcels into a single ownership as well as other transactions involving
assessment of real property;
8. Enforce uniformly the exemption from real property tax prescribed under
Chapter II Section 14 hereof;
9. Apply the appropriate assessment levels prescribed by the Sanggunian
concerned;
10. Keep a record of all transfers, leases and mortgages of real property,
rentals, insurance and cost of construction of buildings and other
improvements on land, and land income for assessment purposes;
11. In case of duplication of assessment on one property, appropriate
cancellation shall be made. However, if any assessee or his representative
shall object to the cancellation of the assessment made in his name, such
assessment shall not be cancelled but the fact shall be noted on the tax
declaration and assessment rolls and other property books of records.
Preference, however, shall be given to the assessment of the person who
has the best title to the property or, in default thereof, of the person who
is in actual possession of the property;
12. Eliminate from the assessment roll of taxable property such properties
which have been destroyed or have suffered a permanent loss of value by
reason of storm, flood, fire or other calamity; or being exempt have been
improperly included in the same;
13. Decrease the assessment where property previously assessed has suffered
a substantial loss of value by reason of physical and economic
obsolescence; and
14. Increase the assessment where improvements and repairs have been made
upon the property subsequent to the last assessment.

B. Other Functions of Local Assessors

a. Declare the property in the name of the defaulting owner, if known, or
against an unknown owner, as the case may be, and shall assess the
property for taxation in accordance with the provisions of Title II, Book
II of the Local Government Code, when any person, natural or juridical,
by whom real property is required to be declared, refuses or fails for any
reason to make such declaration within the time prescribed;
b. Prepare and maintain an assessment roll wherein shall be listed all real
property, whether taxable or exempt, located within the territorial
jurisdiction of the local government unit concerned, except in cases
where the assessors records are computerized and the same are directly
and operationally connected to the Provincial or City or Municipal
Treasurer in the form of LAN or local area networking;
c. Submit to the treasurer of the local government unit, on or before the
thirty-first (31st) of December each year the assessment roll containing a
list of all persons whose real properties have been newly assessed or
reassessed and the value of such properties, except in cases where the
assessors records are computerized and the same are directly and
operationally connected to the Provincial or City or Municipal Treasurer
in the form of LAN or local area networking;
d. For the purpose of obtaining information on which to base the market
value of any real property, the assessor of the province, city or
municipality or his deputy may summon the owners of the properties
affected or persons having legal interest therein and their witnesses;
administer oaths, and take deposition concerning the property, its
ownership, amount, nature, and value;
e. Recommend to the Sanggunian concerned amendments to correct errors
and inequalities of valuation in the Schedule of Fair Market Values;
f. The provincial, city, or municipal assessor shall within thirty (30) days
give written notice of such new or revised assessment to the person in
whose name the property is declared, when real property is assessed for
the first time or when an existing assessment is increased or decreased;
g. In case the provincial, city, or municipal assessor within Metropolitan
Manila Area concurs in the decision of the Local Board of Assessment
Appeals, it shall be his duty to notify the owner of the property or the
person having legal interest therein of such fact using the form prescribed
for the purpose. The owner of the property or the person having legal
interest therein or the assessor who is not satisfied with the decision of
the Board, may, within thirty (30) days after receipt of the decision of
said Board, appeal to the Central Board of Assessment Appeals;
6

h. The provincial, city or municipal assessor shall make and keep an

updated record of all idle lands located within his jurisdiction. For
purposes of collection, the provincial, city and municipal assessor shall
furnish a copy thereof to the provincial, or city treasurer who shall notify,
on the basis of such record, the owner of the property or person having
legal interest therein of the imposition of the additional tax;
i. The assessor concerned, upon the effectivity of the ordinance imposing
special levy pursuant to Section 241 of R. A. 7160, shall forthwith
proceed to determine the annual amount of special levy assessed against
each parcel of land comprised within the area especially benefited by the
public works or improvements to be undertaken and shall send to each
landowner a written notice thereof by mail, personal service or
publication in appropriate cases;
j. The Provincial/City Assessor sits as Chairman of the Appraisal
Committee except in Cities and Municipalities within Metropolitan
Manila Area where the Assessor sits as member pursuant to E.O. 329 as
amended;
k. Whenever appointed by the Court, the Local Assessor shall act as
Commissioner;
l. Annotate in the tax declaration any encumbrance or adverse claims over
the subject property;
m. Attend personally or thru his duly authorized representative all sessions
of the Local and Central Board of Assessment Appeals and present any
information or record in his possession as may be required by the Board
in determining the correct assessment of the real property under appeal;
n. Issue upon request of owner or his authorized representative certificates
pertaining to, or certified copies of, the assessment records of real
property and all other records relative to its assessment, upon the
presentation of the official receipt of payment of realty tax till the current
year and upon payment of a service charge or fee fixed therefor by the
Local Sanggunian concerned; and
o. Exercise such other powers and perform such duties and functions as
may be prescribed by law and ordinance.

IV. Duties and Responsibilities of Assistant Provincial, City and Municipal

Assessors
The assistant assessor shall assist the assessor in performing the foregoing functions
and perform such other duties as the latter may assign to him. All assignments or
delegations of functions to the Assistant Assessors must be in writing.
SECTION 2. SUPERVISION OVER LOCAL ASSESSORS
A. Technical Supervision of DOF thru BLGF:

The Department of Finance shall be responsible for the supervision of the revenue
operations of local government units, with the objective of making these entities less
dependent on funding from the national government.
The BLGF shall exercise technical supervision and coordination over the treasury
and assessment operations of local governments, provide consultative services and technical
assistance to the local governments and the general public on local taxation, real property
assessments and other related matters and exercise line supervision over its Regional
Offices and the Local Treasury and Assessment Services.
Technical Supervision includes the promulgation of the necessary rules and
regulations for the classification, appraisal, and assessment of real property, taxmapping,
general revision of real property assessments and records management pursuant to the
provisions of the Local Government Code. It includes also the submission of the necessary
reports to the DOF thru BLGF to monitor compliance with existing law, rules and
regulations.
DOF, thru BLGF shall exercise the authority to examine and enforce compliance
with the assessment laws, rules and regulations.
For this purpose, the DOF shall, on continuing basis, issue guidelines, rulings and
opinions on matters relating to the classification, appraisal and assessment of real property
and other issues relative thereto for the strict compliance of the local assessors.
B. Technical Supervision of provincial assessors over component City and Municipal
Assessors:
Technical Supervision includes the authority to review actions taken by a
subordinate official to determine compliance with existing pertinent rules and regulations
regarding the conduct of day-to-day operations of official or offices concerned.
Provincial Assessor, therefore, may require the Municipal Assessors concerned to
submit assessment reports and other assessment records or forms for his review and
approval.
8

SECTION 3. DELEGATION OF FUNCTION BY PROVINCIAL ASSESSORS TO

THE MUNICIPAL ASSESSORS
From the provisions of Sections 200 and 232 of the Local Government Code, it is
clear that the real property tax is, generally, a provincial imposition and, therefore, it is the
province that is vested with the power to levy and administer the real property tax and not
the municipality.
However, for reason of being a part of the provincial government, it is the Office of
the Provincial Assessor that shall perform such duties and function as may be essential to
the administration of the real property tax.
It is, therefore, the Provincial Assessors who have the authority to determine
whether or not Municipal Assessors within his territorial jurisdiction may be authorized to
approve tax declarations covering real properties within their respective municipalities.
Municipal Assessor of a province shall perform all the duties and functions related
to the classification, appraisal and assessment for taxation purposes of real property situated
within the municipality under the direct and immediate supervision of the Provincial
Assessor.

SECTION 4. - ORGANIZATIONAL STRUCTURE

As mandated under Section 472 (b)(12), of the Local Government Code, prescribed
hereunder is a minimum/model organizational structure and staffing pattern for the
Provincial/City/Municipal Assessors Office.
ORGANIZATIONAL CHART
OFFICE OF THE PROVINCIAL ASSESSOR
(Minimum)
PROVINCIAL
ASSESSOR
* Optional
ASSESSMENT OPERATIONS
EVALUATION UNIT
ASSISTANT PROVINCIAL
ASSESSOR *
MUNICIPAL ASSESSORS
ADMINISTRATIVE AND
ASSESSMENT RECORDS
MANAGEMENT
DIVISION
TAX MAPPING
OPERATIONS
DIVISION
10
APPRAISAL
STANDARDS AND
EXAMINATION
DIVISION

(Recommended Maximum) **
PROVINCIAL
ASSESSOR
ASSESSMENT
OPERATIONS
EVALUATION UNIT
ASSISTANT
PROVINCIAL
ASSESSOR FOR
ADMINISTRATION *
ASSISTANT PROVINCIAL ASSESSOR FOR

OPERATION *
MUNICIPAL
ASSESSOR
ADMIN.
DIVISION
IT
DIVISION
ASSESSMENT
RECORDS
MANAGEMENT
DIVISION
TAX MAPPING
OPERATIONS
DIVISION
PROPERTY
VALUATION &
EXAMINATION
ASSESSMENT
STANDARD &
EXAMINATION
DIVISION
* Optional
** Recommendatory depending on the financial
capability of the province concerned
11

OFFICE OF THE CITY ASSESSOR
(Minimum)
CITY ASSESSOR
EVALUATION UNIT
ASST. CITY ASSESSOR *
ADMINISTRATIVE AND
ASSESSMENT RECORDS
MANAGEMENT
DIVISION
TAX MAPPING
OPERATIONS
DIVISION
* Optional
12
APPRAISAL AND
ASSESSMENT
DIVISION

CITY
ASSESSOR
EVALUATION UNIT
ASSISTANT CITY
ASSESSOR FOR
OPERATION
ASSISTANT CITY
ASSESSOR FOR
ADMINISTRATION
ADMIN.
DIVISION
IT
DIVISION
ASSESSMENT
RECORDS
MANAGEMENT
DIVISION
TAX MAPPING
OPERATIONS
DIVISION
APPRAISAL
DIVISION
ASSESSMENT
STANDARD &
EXAMINATION
DIVISION
* Optional
** Recommendatory depending on the
financial capability of the city concerned
13

OFFICE OF THE MUNICIPAL ASSESSOR
(Minimum)
MUNICIPAL ASSESSOR
ASST. MUNICIPAL ASSESSOR *
ADMINISTRATIVE &
ASSESSMENT RECORDS
MANAGEMENT UNIT
TAX MAPPING
* Optional
OPERATIONS UNIT
14
APPRAISAL AND
ASSESSMENT UNIT

MUNICIPAL ASSESSOR
ASST. MUNICIPAL ASSESSOR *
ADMINISTRATIVE
AND ASSESSMENT
RECORDS
MANAGEMENT
IT
TAX MAPPING
OPERATIONS DIVISION
DIVISION
APPRAISAL &
ASSESSMENT
DIVISION
* Optional
** Recommendatory depending on the
financial capability of the municipality
concerned
15

Staffing Pattern
(Minimum)
No. of Position
1
1
2
-------
Provincial Assessor (Mandatory)

Assistant Provincial Assessor (Optional)
A. Assessment Operations Evaluation Unit
Assessment Evaluation Officer I, G - 11
Assistant Statistician, G 8
Clerk, G - 4
1
*
1
-------
B. Administrative and Assessment Records

Management Division
Assessment Records Officer III, G 15
Assessment Records Officer I, G 11
Assessment Clerk III, G 9
Data Encoder II, G 8
Clerk III, G 6
Assessment Clerk I, G 4
Storekeeper I, G 4
Clerk I, G 3
Reproduction Machine Operator I, G 2
Book Binder I, G 2
Driver I, G 3
1
*
1
*
1
1
1
1
*
1
*
-------
C. Assessment Standard and Examination Division

Property Appraiser II, G 15
Property Appraiser I, G 11
Assessment Clerk II, G 6
D. Tax Mapping Operations Division
Tax Mapper II, G 15
Information Systems Analyst I, G 12
Tax Mapper I, G 11
Blueprint Machine Operator
Draftsman, G 6
Tax Mapping Aide, G 4
Book Binder, G 2
1
1
1
1
-------
1
*
1
*
1
*
*
3
------- -----18
Total
* Optional
16

Staffing Pattern
No. of Position
Provincial Assessor (Mandatory)

Assistant Provincial Assessor (Optional)*
1
2
-------

Assessment Evaluation Officer IV, G 22
Assessment Evaluation Officer I, G 11
Data Entry Machine Operator II, G 8
Assessment Clerk II, G - 6
B. Administrative Division
Administrative Officer IV, G 22
Administrative Officer I, G 11
Storekeeper II, G 6
Clerk III, G 6
Clerk II, G 4
Clerk I, G 3
Messenger, G 2
Reproduction Machine Operator, G 2
Driver I, G 3
1
4
1
1
1
-------
1
1
1
1
2
2
1
1
1
1
-------
C. Assessment Records Management Division

Assessment Records Officer IV, G 22
Assessment Records Officer II, G 15
Assessment Clerk I, G-4
Book Binder, G 2
17
1
1
1
2
2
1
2
2
1
1
-------
12
14


Tax Mapper IV, G 22
Information Technology Officer I, G -19
Tax Mapper III, G 18
Tax Mapper II, G 15
Tax Mapper I, G - 11
Blueprint Machine Operator, G 7
Draftsman I, G 6
Book Binder, G 2
1
1
1
1
2
1
1
2
2
1
-------
E. Property Valuation and Examination Division

Property Appraiser IV, G 22
Property Appraiser III, G 18
Assessment Examiner II, G 6
Assessment Examiner I, G 4
F. Assessment Standards and Examination Division

Assessment Examiner IV, G 22
Assessment Examiner III, G 18
Assessment Clerk I, G -4
1
1
1
3
1
1
2
2
-------
1
1
1
2
1
1
1
2
-------
13
11
10
-------
G. Information Technology Division

Programmer V
Total
72

capability of the Province Concerned
18

Staffing Pattern
(Minimum)
No. of Position
City Assessor (Mandatory)
Assistant City Assessor (Optional)
1
1
-------

Clerk, G - 4
1
*
1
-------
B. Administrative and Assessment Records

Management Division
Clerk III, G 6
Storekeeper I, G 4
Clerk I, G 3
Messenger, G 2
Book Binder, G 2
Driver I, G 3
1
*
*
1
1
1
1
1
1
*
*
*
-------
C. Tax Mapping Operations Division

Tax Mapper II, G 15
Tax Mapper I, G 11
Draftsman I, G 6
Book Binder, G 2
1
1
*
*
1
1
*
-------
D. Appraisal and Assessment Division

1
1
19


1
*
*
1
4
-------- ------19
Total
*Optional
Staffing Pattern
(Recommended Maximum) *
No. of Position
City Assessor (Mandatory)
Assistant City Assessor (Optional)
1
2
-------

Assessment Evaluation Officer IV, G 22
Assistance Statistician, G 8
Assessment Clerk II, G - 6
B. Administrative Division
Administrative Officer IV, G 22
Administrative Officer I, G 11
Storekeeper I, G 6
Clerk III, G 6
Clerk II, G 4
Clerk I, G 3
Messenger, G 2
Driver I, G 3
1
4
1
1
1
-------
1
1
1
1
1
1
1
1
1
1
-------
C. Assessment Records Management Division

Assessment Records Officer IV, G 22
20
1
1
10


Book Binder, G 2
1
1
1
2
2
1
-------

Tax Mapper IV, G 22
Information Technology Officer I, G 19
Tax Mapper II, G 15
Tax Mapper I, G 11
Draftsman, G 6
Book Binder, G 2
E. Property Appraisable Division
Property Appraiser IV, G 22
1
1
1
1
2
1
1
1
2
1
------1
1
1
4
1
1
1
2
-------
F. Assessment Standards and Examination Division

Assessment Examiner IV, G 22
Assessment Examiner III, G 18
Total
11
12
12
1
1
1
4
1
1
1
2
12
------- ------68

capability of the City Concerned
21

Staffing Pattern
(Minimum)
No. of Position
Municipal Assessor (Mandatory)
Assistant Municipal Assessor (Optional)
Tax Mapper I, G 11
Real Property Appraiser I, G 11
Draftsman I, G 6
1
1
*
1
*
*
*
1
1
-----5
Total
*Optional
Staffing Pattern
(Recommended Maximum) *
No. of Position
Municipal Assessor (Mandatory)
Assistant Municipal Assessor (Optional)
1
1
-------
A. Administrative and Assessment Record Division

Assessment Records Officer III, G - 18
Assessment Records Officer II, G - 15
Driver I, G 3
Book Binder, G 2
Messenger, G 2
22
1
1
1
1
1
1
2
1
1
1
1
-------
12

B. Tax Mapping Operations Division

Tax Mapper II, G 15
Tax Mapper I, G 11
Drafsman, G 6
1
1
2
1
1
1
1
-------
C. Appraisal and Assessment Division

Assessment Clerk, G 4
1
1
2
1
1
1
2
9
------- ------31
Total
SECTION 5. - COORDINATION AND LINKAGES OF LOCAL ASSESSORS

WITH
OTHER
LOCAL
OFFICIALS
AND
NATIONAL
GOVERNMENT AGENCIES
It is inherent upon the Local Assessor to maintain close coordination and
cooperation with the following officials/offices in the performance of their duties
and functions. The local assessors whenever necessary may request from these
agencies assistance/information/data/documents needed in the performance of
duties.
A. Offices of the Local Treasurers
a) On the Assessment Roll
A copy of the Assessment Roll should be furnished the Local
Treasurers Offices as basis for the collection of real property taxes and
updating of the Real Property Tax Register (RPTAR)/Real Property Tax
Index Card (RPTIC), except in cases where the assessors records are
computerized and the same are directly and operationally connected to the
Provincial, City, or Municipal Treasurer in the form of LAN or local area
networking, in which case the assessment roll is readily available to the
Treasurer concerned.
23

b) Conduct of the RPTA-Information and Education Campaign (IEC)

Program
Both the Local Assessor and Treasurer shall act as communication
agent of the RPTA-IEC Program.
c) On the implementation of RPTA Project
Both shall be members of the RPTA Task Force charge with the
implementation of the RPTA Project.
d) On the application of remedies for the collection of real property tax
Before the treasurer can initiate the steps leading to public auction of
delinquent real property or civil action through courts, the assessor
should provide the correct information concerning the ownership and
assessed value of the property in question.
e) On Records Keeping
The two Offices must also coordinate in the aspect of record
management. Both of them should use the same coding system in
recording to avoid confusion in tracking down taxable property. If the
Assessors Office uses numeric codes, like the Property Identification
Number (PIN) and the Tax Declaration Number (TDN), the Treasurers
Office should also do so to avoid problems when one uses a code
different from the other.
B. Office of the Registrar of Deeds

To ascertain whether or not any real property entered in the
Registry of Property has escaped discovery and listing for the purpose of
taxation, secure every year from the Registrar of Deeds, an abstract of his
registry, which shall include brief but sufficient description of the real
properties entered therein, their present owners, and the dates of their
most recent transfer or alienation accompanied by copies of
corresponding deeds of sale, donation, or partition, or other forms of
alienation.
C. Official Issuing Building Permit or Certificate of Registration of
Machinery
Secure from any public official or employee who may now or
hereafter be required by law or regulation to issue to any person a permit for
the construction, addition, repair, or renovation of a building, or permanent
improvement on land, or a certificate of registration for any machinery,
24

including machines, mechanical contrivances, and apparatus attached or

affixed on land or to another real property, a copy of such permit or
certificate within thirty (30) days of its issuance.
D. Geodetic Engineers
Secure from Geodetic Engineers, public or private, to furnish free of
charge a white or blue print copy of each of all approved original or
subdivision plans or maps of surveys executed by them within thirty (30)
days from receipt of such plans from the Lands Management Bureau, the
Land Registration Authority, or the Housing and Land Use Regulatory
Board, as the case may be.
E. Registrar of Deeds and Notaries Public
Secure from the Registrar of Deeds and Notaries Public copies of all
contracts, selling, transferring, or otherwise conveying, leasing, or
mortgaging real property received by, or acknowledged before them.
F. Department of Agrarian Reform (DAR)
Secure from DAR data of Operation Land Transfer (OLT) in
pursuance of the Comprehensive Agrarian Reform Program (CARP), such as
name of barangay, urban code, list of landowners together with the name of
tenant-beneficiaries.
G. Department of Environment and Natural Resources (DENR)
Secure from the DENR, the following:
a) Complete listing of provinces, cities, municipalities, barangays
and city districts cadastrally surveyed, including parcellary maps
of properties under OLT and such other data or documents in the
possession or custody of the Bureau of Lands;
b) Copies of controlled/semi-controlled survey maps;
c) Subdivision Plan approved by the Land Management Bureau
(LMB);
d) Survey plan of Geodetic Engineer approved by the LMB; and
e) Certification as to alienable and disposable land area
H. Housing and Land Use Regulatory Board (HLURB)
Copy of comprehensive land use plan and supporting documents.
25

I. Bureau of Internal Revenue (BIR)

1.
2.
3.
4.
5.
Updated Schedule of Approved Zonal Valuation

List of Branches and Warehouses
Annual List of Income Tax Filers
Quarterly List of Capital Gains Tax Filers
Quarterly Lists of Bank Taxpayers
J. Bangko Sentral ng Pilipinas (BSP) Foreign Currency Conversion

Rates for purposes of computing the acquisition cost of machinery
K. Securities and Exchange Commission (SEC)
1. Articles of Incorporation, By-laws
2. Statement of Assets and Liabilities
L. Board of Investment/Department of Trade and Industry (BOI/DTI)
Price index for purposes of computing the market value of machinery
M. Land Bank of the Philippines (LBP) Certificate of full payment of
CLOAs/emancipation patents
N. Bureau of Customs (BOC)
1.
2.
3.
4.
Bills of lading
Letter of Credit
Official Receipt
Purchase Invoice
O. Philippine Economic Zone Authority (PEZA) List of real

properties/enterprises covered by/within the zone
P. Bases Conversion and Development Authority (BCDA) List of real
properties affected by bases conversion
Q. Cooperative Development Authority (CDA) List of duly registered
cooperatives
R. Department of Agriculture (DA) Copy of the short and medium term
irrigation infrastructure development plan
S. National Commission on Indigenous People (NCIP)
1. Information on Land Ownership
2. Information on Ancestral Domain
3. Certificate of Land Ownership (CLOA)
26

CHAPTER II
STANDARD OPERATIONS IN REAL PROPERTY
ASSESSMENT
SECTION 1. - GUIDING PRINCIPLES
The classification, appraisal and assessment of real property for taxation
purposes shall be governed by the provisions of RA No.7160 and its implementing
rules and regulations and other pertinent laws, with the view of attaining methodical,
efficient and consistent compliance thereof and achieve equity in the distribution of
tax burden and shall be guided by the following fundamental and guiding principles:
1. Real property shall be appraised at its current and fair market value based on
the duly approved schedule of market values;
2. Real property shall be classified for assessment purposes on the basis of its
actual use;
3. Real property shall be assessed on the basis of a uniform classification within
each local government unit;
4. The appraisal, assessment, levy, and collection of real property tax shall not
be let to any private person; and
5. The appraisal and assessment of real property shall be equitable.
6. Assessment Levels The assessment levels to be applied to the fair market
value of real property to determine its assessed value shall be fixed by
ordinances of the Sangguniang Panlalawigan, Sangguniang Panlungsod or
Sangguniang Bayan of a municipality within the Metropolitan Manila Area,
at the rates not exceeding the following:
(a) On lands:
CLASS
Residential
Agricultural
Commercial
Industrial
Mineral
Timberland
ASSESSMENT LEVELS
20%
40%
50%
50%
50%
20%
27

(b) On Building and Other Structures

(1) Residential
Fair Market Value
OVER
175,000.00
300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00
Not Over
P 175,000.00
300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00
Assessment Levels
Not Over
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
Assessment Levels
25%
30%
35%
40%
45%
50%
Not Over
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00
Assessment Levels
30%
35%
40%
50%
60%
70%
75%
80%
0%
10%
20%
25%
30%
35%
40%
50%
60%
(2) Agricultural
Fair Market Value
OVER
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
(3) Commercial/Industrial
Fair Market Value
OVER
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00
28

(4) Timberland
Fair Market Value
OVER
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
Not Over
P 300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
Assessment Levels
45%
50%
55%
60%
65%
70%
(c) On Machineries;
CLASS
Agricultural
Residential
Commercial
Industrial
ASSESSMENT LEVELS
40%
50%
80%
80%
(d) On Special Classes: The assessment levels for all lands, buildings,
machineries and other improvements;
ACTUAL USE
Cultural
Scientific
Hospital
Local water districts
Government-owned or controlled
corporations engaged in the supply
and distribution of water and/or
generation and transmission of electric
power
ASSESSMENT LEVEL
15%
15%
15%
10%
10%
7. Date of Effectivity of Assessment or Reassessment All assessments or reassessments made after the first (1st) day of January of any year shall take
effect on the first (1st) day of January of the succeeding year: Provided,
however, That the reassessment of real property due to its partial or total
destruction, or to a major change in its actual use, or to any great and sudden
inflation or deflation of real property values, or to the gross illegality of the
assessment when made or any other abnormal cause, shall be made within
ninety (90) days from the date any such cause or causes occurred, and shall
take effect at the beginning of the quarter next following the reassessment.
8
Assessment of Property Subject to Back Taxes Real property declared for

the first time shall be assessed for the period during which it would have
29

been liable but in no case for more than ten (10) years prior to the date of
initial assessment: Provided, however, that taxes shall be computed on the
basis of the applicable schedule of values in force during the corresponding
period. Provided further that the total tax liability is eleven (11) years
including the year the assessment is made. If such taxes are paid on or
before the end of the quarter next following the date the notice of assessment
was received by the owner or his representative, no interest for delinquency
shall be imposed thereon; otherwise, such taxes shall be subject to an interest
at the rate of two (2%) per month or a fraction thereof until such taxes are
fully paid but not to exceed thirty-six (36) months.
9. Notification of New or Revised Assessment When real property is assessed
for the first time or when an existing assessment is increased or decreased,
the provincial, city or municipal assessor shall within thirty (30) days give
written notice of such new or revised assessment to the person in whose
name the property is declared. The notice may be delivered personally or by
registered mail or through the assistance of the punong barangay to the last
known address of the person to be served.
10. Effect of Appeal on the Payment of Real Property tax Appeal on
assessments of real property made under the provisions of the Local
Government Code shall, in no case, suspend the collection of the
corresponding realty taxes on the property involved as assessed by the
provincial or city assessor, without prejudice to subsequent adjustment
depending upon the final outcome of the appeal.
SECTION 2. - DEFINITION OF TERMS
All terms defined under Section 199 of R. A. 7160 shall be controlling, and
those that may be incorporated in an Ordinance not otherwise inconsistent with the
provisions of laws.
(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;
(b)
Actual Use refers to the purpose for which the property is principally or
predominantly utilized by the owner or the person in possession thereof;
(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;
30

(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;
(h)
Assessed Value is the fair market value of the real property multiplied by
the assessment level. It is synonymous to taxable value;
(i)
Buildings are considered immovable provided they are more or less of a

permanent structure, substantially adhered to the land, and not mere
superimpositions on the land like barong-barongs or quonset fixtures and
provided there is the intent of permanent annexation. Note that the law uses
the term adhered and not superimposed. And this is true, whether the
building is built on ones own land, or on rented land. The reason is clear:
the law on this point does not distinguish as to who built or owns the
building. (Civil Code of the Philippines, 14th Ed., Vol. II, p. 9, Paras)
(j)
Commercial Property is property devoted principally for the object of

profit and is not classified as agricultural, industrial, mineral, timber, or
residential property;
(k)
Cooperative is a duly registered association of persons with a common

bond of interest, who have voluntarily joined together to achieve a lawful
common or social economic end, making equitable contributions to the
capital required and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative principles.
(R.A. No. 6938)
(l)
Depreciated Value is the value remaining after deducting depreciation

from the acquisition cost;
(m)
Economic Life is the estimated period over which it is anticipated that a

machinery or equipment may be profitably utilized;
(n)
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;
(o)
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
31

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;
(p)
Industrial Land is land devoted principally to industrial activity as capital

investment and is not classified as agricultural, commercial, timber, mineral,
or residential land;
(q)
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, without which such industry or facility cannot
function. Machinery shall in no case include constructions or structures
which basically falls within the definition of Building under Section 2 (i)
hereof;
(r)
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;
(s)
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;
(t)
Remaining Economic Life is the period of time expressed in years from

the date of appraisal to the date when the machinery becomes valueless;
(u)
Remaining Value is the value corresponding to the remaining useful life

of the machinery;
(v)
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 materials; and
(w)
Residential Land is land principally devoted to habitation. (Sec. 199, R.A.

No. 7160)
(x)
Special Classes of Real Property All lands, buildings and other

improvements thereon actually, directly and exclusively used for hospitals,
cultural, or scientific purposes, and those owned and used by local water
districts, and government owned or controlled corporations rendering
32

essential public services in the supply and distribution of water and/or

generation and transmission of electric power shall be classified as special.
(y)
Residential Machinery - are those machines, equipment, appliances or

apparatus permanently attached to residential land and/or buildings.
Other Classifications of land not otherwise enumerated under RA No. 7160

but assessable are also defined as follows:
1.
Timberland land identified as forest or reserved area by the government,

which may or may not be granted to a concessionaire, licensee, lessee or
permittee.
2. Memorial Parks Lands exclusively used as burial ground, the disposition of

which is for commercial purpose or for profit, and considered as wasting assets.
3. Horticultural Land Land devoted to or cultivated for the planting of flowers
and other ornamental plants.
4. Marsh Land A tract of low-lying land usually under water.
5. Foreshore Land A strip of land along the seashore, the use of which may or
may not be granted by the government to private person or corporation.
6. Mangrove Land is a term applied to the type of forest occurring on tidal flat
along the seacoast, extending along stream where the water is brackish. (P.D.
705)
7. Orchard land specifically devoted to various fruit bearing trees and plants.
SECTION 3. - REAL PROPERTY IDENTIFICATION SYSTEM

Property Identification Numbering System (PINS) shall be used to account
for the separate parcels of land, by ownership. The numbering system is unique,
meaning, when it is properly applied, no two parcels of land in the Philippines will
have exactly the same property identification number. Or to restate, every separate
parcel of land in the country shall have a property identification number different
from any other parcel.
The installation of property identification shall be made in accordance with
the following guidelines:
1 Province Index Number - The first three (3) digits (1st, 2nd and 3rd) in the
Property Identification Number (PIN) shall be used to identify the Province,
City and Municipality of Metropolitan Manila Area. For this purpose, each
33

province, city and municipality of Metro Manila Area, is hereby assigned with a
specific Index Number indicated as follows:
Province
Province
Index Number
Batanes
Cagayan
Ilocos Norte
Abra
Kalinga-Apayao
Mountain Province
Ilocos Sur
La Union
Benguet
Ifugao
Isabela
Nueva Vizcaya
Pangasinan
Nueva Ecija
Quezon
Zambales
Tarlac
Bataan
Pampanga
Bulacan
Rizal
Cavite
Laguna
Batangas
Camarines Norte
Camarines Sur
Catanduanes
Occidental Mindoro
Oriental Mindoro
Marinduque
AlbaySorsogon
Romblon
Masbate
Northern Samar
Western Samar
Eastern Samar
Aklan
Capiz
Antique
Iloilo
-001
-002
-003
-004
-005
-006
-007
-008
-009
-010
-011
-012
-013
-014
-015
-016
-017
-018
-019
-020
-021
-022
-023
-024
-025
-026
-027
-028
-029
-030
-031
-032
-033
-034
-035
-036
-037
-038
-039
-040
-041
34

Negros Occidental
Cebu
Leyte
Southern Leyte
Negros Oriental
Bohol
Surigao del Norte
Camiguin
Zamboanga del Norte
Misamis Occidental
Misamis Oriental
Agusan del Norte
Agusan del Sur
Surigao del Sur
Zamboanga del Sur
Lanao del Norte
Lanao del Sur
Bukidnon
North Cotabato
South Cotabato
Davao del Sur
Davao del Norte
Davao Oriental
Sulu
Palawan
Quirino
Siquijor
Tawi-Tawi
Maguindanao
Sultan Kudarat
Basilan
Aurora
Biliran
Guimaras
Sarangani
Apayao
Kalinga
Compostela Valley
Zamboanga Sibugay
-042
-043
-044
-045
-046
-047
-048
-049
-050
-051
-052
-053
-054
-055
-056
-057
-058
-059
-060
-061
-062
-063
-064
-065
-066
-067
-068
-069
-070
-071
-072
-073
-074
-075
-076
-077
-078
-079
-080
City
Index Number
City
Laoag
Baguio
Dagupan
-101
-102
-103
35

San Carlos (Pang.)

San Jose
Palayan
Cabanatuan
Angeles
-104
-105
-106
-107
-108
City/Metro
Manila Mun.
Index Number
City/Metro Manila Municipalities

Olongapo
Navotas
Malabon
Valenzuela
Caloocan
Quezon
Marikina
San Juan
Manila
Mandaluyong
Pasig
Taguig
Pateros
Makati
Pasay
Paraaque
Las Pias
Muntinlupa
Cavite
Trece Martires
Tagaytay
San Pablo
Lipa
Batangas
Lucena
Puerto Princesa
Naga
Iriga
Legazpi
Roxas
Iloilo
Cadiz
Silay
San Carlos (Negros. Occ.)
Bacolod
Bago
La Carlota
-109
-110
-111
-112
-113
-114
-115
-116
-117
-118
-119
-120
-121
-122
-123
-124
-125
-126
-127
-128
-129
-130
-131
-132
-133
-134
-135
-136
-137
-138
-139
-140
-141
-142
-143
-144
-145
36

Canlaon
Bais
Dumaguete
Toledo
Danao
Mandaue
Cebu
Lapu-Lapu
Tagbilaran
Ormoc
Tacloban
Calbayog
Dapitan
Pagadian
Zamboanga
Surigao
Butuan
Gingoog
Cagayan de Oro
Dipolog
Oroquieta
Ozamiz
Tangub
Iligan
Cotabato
Marawi
Davao
General Santos
Sagay
Santiago
Kabankalan
Antipolo
Talisay
Samal
Tagum
Kidapawan
Tuguegarao
Passi
Victorias
Tacurong
Bislig
Koronadal
Calapan
Sorsogon
Digos
Gapan
Calamba
-146
-147
-148
-149
-150
-151
-152
-153
-154
-155
-156
-157
-158
-159
-160
-161
-162
-163
-164
-165
-166
-167
-168
-169
-170
-171
-172
-173
-174
-175
-176
-177
-178
-179
-180
-181
-182
-183
-184
-185
-186
-187
-188
-189
-190
-191
-192
37

San Jose del Monte

Tanauan
Panabo
San Fernando (La Union)
Urdaneta
Vigan
Candon
Alaminos
Himamaylan
Escalante
Science City of Munos
Balanga (Bataan)
San Fernando (Pampanga)
Tarlac
Ligao
Tabaco
Masbate
Maasin
Valencia
Sipalay
Isabela (Basilan)
Cauayan
Malaybalay
Malolos
Tanjay
Bayawan
Talisay
-193
-194
-195
-196
-197
-198
-199
-200
-201
-202
-203
-204
-205
-206
-207
-208
-209
-210
-211
-212
-213
-214
-215
-216
-217
-218
-219
2. Municipal Index Number or City District Index Number. - Following the

three digits which identify the province, city and municipality of Metro Manila
Area are two (2) digits (4th and 5th) which identify the municipality in the
province or district in the City.
(a) Municipal Index Number - The municipalities in the province shall
be numbered consecutively beginning with "01" for the first
municipality, after all the municipalities are arranged alphabetically.
(See Fig. 2, for a typical Municipal Index Map).
(b) City District Index Number - The City Districts shall be numbered
beginning with "01" in the northwesterly most district, thence in an
easterly direction, thence southward to the next district, thence
westerly direction, thence southward and then repeat in an easterly
direction until al the districts within the city are assigned with index
numbers. (See Fig. 3 for a typical City District Index Map).
38

3. Barangay Index Number - The next four (4) digits (6th, 7th, 8th and 9th) in
the Property Identification Number shall be used to identify the barangay.
Barangays are numbered beginning with "0001" for the Poblacion and
continuing serially through all barangays on an alphabetical basis, by
municipality. (See Figures 4 and 4-A, for a typical Barangay Index Map).
In cases where the poblacion consists of two or more barangays that were
designated numerically such as Poblacion I, Poblacion II, etc., the barangays
shall be numbered in like manner, i.e., 0001 for poblacion I, 0002 for poblacion
II, etc. However, if the barangays are designated by name as Poblacion Centro,
Poblacion West, etc., the barangays shall be numbered beginning with 0001 for
barangay, preferably, where the municipal building is located, followed serially
through barangays in an alphabetical order.
In cases where there is no barangay poblacion, the barangays shall be
numbered consecutively beginning with "0001" for the first barangay after all
the barangays are arranged alphabetically.
4. Fundamental Component of PIN. The combination of the Index Numbers of
the Province/City/Municipality of MMA, Municipal/District, barangay,
constitutes the fundamental components (first nine digits) of a Property
Identification Number.
Illustrations:
(a) For parcel located in a Province:
000
Province
00
Municipality
0000
Barangay
(b) For parcel located in a City:

000
City
00
District
0000
Barangay
(c) For parcel located in a municipality of MMA:

000
Mun.
00
District
0000
Barangay
5. Section Index Number. - Following the nine digits, which are the fundamental
components of the property identification number, are three (3) digits (10th, 11th
and 12th) which shall be used to identify the section. Sections shall be numbered
in conformity with the layout under Sec. 30 hereof beginning with "001" in the
north westernmost section, thence on an easterly direction, thence southward,
thence on a westerly direction, thence southward and then repeat on an easterly
39

direction, or stated differently, in an inverted "S" pattern, until all the sections
within the barangay are assigned index numbers.
6. Permanent Parcel Number. - Following the twelve digits in the property
identification number, the two (2) digits (13th and 14th) shall be assigned to
identify each separate parcel of land. A parcel of land for the purpose of this
Manual is a plot or an area of land, having established limits, that is practicable
to be assessed as one parcel of land and likewise numbered, in an inverted S
pattern.
7. Permanent Property Identification Number (PIN). - With the inscription of
the permanent parcel (lot) number on the tax map all needed information are
available to identify and describe all real property in the mapped area. The
numbering system is now ready to bridge the gap between the real property in
the field and office assessment records.
This is called the property
identification numbering system.
The final and permanent property
identification number assigned to a parcel of land in the tax map shall consist of
the following sequence:
The 1st, 2nd and 3rd digits represent the Province/City/Municipality of MMA
Index Number; the 4th and 5th represent the Municipal/District Index Number;
the 6th, 7th, 8th and 9th digits represent the Barangay Index Number; the 10th,
11th and 12th digits represent the Section Index Number; and finally the 13th and
14th digits represent the permanent parcel number. Thus the complete number
sequence of a PIN is illustrated as follows:
000
Prov/City/Mun.
00
Mun./Dist.
0000
Bgy
000
Sec.
00
Parcel
Example: (1) The PIN of Lot (05) of Section (002) of Barangay (0005)
at Municipality (15) in the Province of (020) is:
020-15-0005-002-05
(2) The PIN of Lot (35) of Section (001) of Barangay (0012),
District of (06) in City (132) is:
132-06-0012-001-35
8. PIN of Building. A building which shall be separately assessed from the land,
should bear the PIN of the land with a four(4)-digit number (1001) added to it.
In the case of a condominium building, the permanent PIN of the
condominium unit should bear the PIN of the condominium building with a
three(3)-digit number (001) added to it.
9 PIN of Machinery. A machinery which shall be separately assessed from the
land or building, should bear the PIN of the land with a four (4) digit number
beginning with 2001 added to it.
40

10 PIN of Building or Machinery Separately Assessed from Land. - In case of a

building constructed in a parcel of land whether owned by the landowner or any
person other than the landowner, the permanent PIN of said building will bear the
same PIN of the land with a four(4)-digit number beginning from "1001" added to
it followed by 1002; 1003, etc. for additional buildings constructed on the same
land; for example: 020-15-0005-002-05-1001
for the
first building;
020-15-0005-002-05-1002 and 020-15-0005-002-1003 for other additional
buildings on the land.
Likewise, for machinery installed in a parcel of land, whether owned by
the landowner or any person other than the landowner, the permanent PIN of said
machinery will bear the same PIN of the land with a four(4)-digit number
beginning from 2001 added to it, followed by "2002", "2003", etc., for additional
machinery.
Example: 132-06-0012-001-35-2001; 132-06-0012-001-35-2002 and 132-060012-001-35-2003, etc. for other machineries installed on the land.
The aforementioned four digit numbers in effect substitute the temporary
postfixes B-1, B-2, B-3, etc. and M-1, M-2, M-3, etc. indicated on the FAAS of
building and machinery.
11. Property Identification Numbering in cases of Parcel Subdivisions or
Consolidation. - In case of a land subdivision involving two (2) or more parcels,
the PIN of the original parcel shall be retired while the newly created lots shall be
assigned consecutive numbers beginning with the number following the highest
parcel numbers in the section. These are then indicated on the tax map and new
FAAS shall be prepared for each subdivided parcel. The appropriate PIN shall
then be placed on the corresponding FAAS, thereby, completing the tie-in between
parcel and FAAS which initiates the issuance of the necessary assessment records,
thus, maintaining the integrity of the property numbering system.
Likewise, in cases of consolidation of two or more existing parcels into a
single ownership, the original property identification numbers of the parcels
affected shall be retired and the resulting single parcel shall be assigned with a
number next the highest parcel number in the section.
The practice of retiring index numbers for subdivided or consolidated parcels
provides a history of physical and ownership changes of the parcels involved.
12. Barangay Index Numbers for New Barangays. - In preparing a new Barangay
Index Number once the mother barangay is divided into two or more barangays,
the procedure is to cancel the previous original barangay index number and use
the last succeeding Barangay Index Number. For example, if the last Barangay
Index Number is 0021, the succeeding (new) Barangay Index Number shall be
41

0022, 0023, etc., following the principle of retiring the PIN of a parcel of land in
case of subdivision/consolidation.
Illustration:
Barangay Dadiangas, the mother barangay with an Index Number
0001, was subdivided into four (4) newly created barangays, namely:
Dadiangas North, Dadiangas South, Dadiangas East and Dadiangas West.
Assuming that a city is comprised of 21 barangays, each with an
assigned Index Number whereby Barangay Dadiangas is numbered 0001
and continuing serially through all barangays on an alphabetical basis, the
last barangay has an Index Number 0021.
Thus, mother Barangay (Dadiangas) 0001 is considered retired and
retaining the index number of the other barangay while the newly created
barangay will be numbered as follows:
0001 for Dadiangas (retired)
0021 for the last barangay
0022 for Barangay Dadiangas East
0023 for Barangay Dadiangas North
0024 for Barangay Dadiangas South
0025 for Barangay Dadiangas West
13. Mechanics of PINS. - It shall be the duty of the Provincial, City or Municipal
Assessor of Metropolitan Manila Area to explain to all his personnel the
mechanics and system of the Property Identification Numbering. Special
instructions shall be made to the personnel of the Tax Mapping and the Records
Division, who are directly involved in the execution of the Tax Mapping
Operation.
14. Preparation of Field Appraisal and Assessment Sheet (FAAS). - After
receiving special instructions on the mechanics of Property Identification
Numbering System (PINS) and upon direction of the Provincial, City or
Municipal Assessor of Metro Manila Area, the staff of the Records Management
Division shall start to prepare Field Appraisal and Assessment Sheet (FAAS) as
prescribed under Annexes ___, ____ and ____ hereof. This is done by copying
from existing tax declaration all the information except the classification and
value of the property contained on each original copy of the tax declaration on
file by municipality in the case of province, and by district or barangay in the
case of city or municipality within Metro Manila Area. Only one FAAS shall be
prepared for each real property unit declared under existing and active Tax
Declaration.
(a) Preparation of FAAS by Municipality. - The preparation of FAAS shall
be done on a municipality by municipality basis in the case of province.
42

In the case of city or municipality of Metro Manila Area, FAAS shall be

prepared by barangay.
(b) Segregation of FAAS by Barangay. After the FAASs have been
prepared for the entire municipality or district, they should be segregated
by barangays except for the city or municipality of Metro Manila Area
that were already process by barangay. Those covering lands including
buildings, machineries or other improvements, which were identified to be
standing or installed in a particular parcel of land, shall be attached to the
corresponding FAAS of the land, should be segregated and placed in one
file while those covering buildings, machineries or other improvements
whose location were not identified should be separately placed under
another file. FAAS on each file should be arranged in alphabetical order
by surname of the declared owner.
However, for a province that may undertake tax mapping on two or
more municipalities simultaneously, the temporary PIN shall be of the
three(3)-digit Municipal Index Number, the four(4)-digit Barangay Index
Number and the four(4)-digit number assigned to each FAAS. Thus, the
first FAAS of the first barangay in Municipality of 002 should be 0020001-0001, where 002 identifies the Municipal Index Number, 0001
identifies the Barangay Index Number and 0001 identifies the FAAS.
(c) Assigning Temporary PIN on FAAS. - Following the arrangement of
FAAS in the immediate preceding paragraph, each FAAS of land shall
now be assigned with Temporary Property Index Numbers consecutively
beginning with the number 0001 for first FAAS and proceeding in
numerical order until the last FAAS in the file. It is important that a four
(4) digit number shall be used for the Temporary Property Index Number
as this will readily distinguish it from the two (2) digit number which will
be assigned to each parcel of land under the Permanent PIN after the tax
mapping operation is completed. The complete temporary PIN shall
consist of the four (4) digit Barangay Index Number and the four (4) digit
number assigned to each FAAS, thus the first FAAS of the first Barangay
in a municipality or city should be 0001-0001, where 0001 identifies the
barangay index number and 0001 identifies FAAS. The PIN at this point
is "Temporary" because before tax mapping, the number controls the
FAAS only. After tax mapping these official records will be linked
together with the real property they represent on a permanent basis.
(d) Temporary PIN of FAAS Covering Buildings, Machinery and other
Improvements. - The following steps shall be made on FAAS covering
buildings, machinery, and other improvements now arranged
alphabetically in a separate file:
(1) FAAS covering building identified to be constructed on a particular
parcel of land whether owned by the landowner or any person other
43

than the landowner, shall be attached to the FAAS of the land and
assigned with temporary PIN bearing the temporary PIN of the land
with postfix B1 added to it, followed by B2, B3, etc. for the additional
FAAS still covering buildings identified to be standing on the same
land, for example: 0001-0001B1; 0001-0001B2; 0001-0001B3, etc.
(2) FAAS covering machinery identified to be installed in a particular
parcel of land whether owned by the landowner or any person other
than the landowner, shall be attached to the FAAS of the land and
assigned a temporary PIN bearing the temporary PIN of the land with
postfix M1 added to it, followed by M2, M3, etc. for additional FAAS
still covering machineries identified to be installed on the same land,
for example: 0001-0001M1; 0001-0001M2; 0001-0001M3, etc.
(3) Those FAASes covering buildings, machinery and other
improvements, which are not identified in whose land they are located,
shall be filed alphabetically and placed in a separate folder for proper
identification and assignment of temporary PIN in the field in similar
manner as in the preceding paragraphs.
SECTION 4. - TAX MAPPING OPERATION

Tax mapping is a highly accurate method of field operations for identifying real
property units, defining property boundaries, determining actual use, and discovering
undeclared properties for taxation purposes
A. Objectives of the Tax Mapping Operations 1.
2.
3.
4.
To establish a complete inventory of all real property;

To provide a permanent link between real property and office records;
To identify the ownership of every piece of real property; and
To account for the sum total of all land area of provinces or cities or
municipalities.
B. Three (3) Phases of Tax Mapping Component1. Pre-field Operations

2. Field Operations
3. Post Field Operations
Importance of Tax Maps. - Tax maps are the single most important tool in
the assessment process. It is impossible to establish an adequate property tax record
and accounting system without tax maps, for they are the basic foundation of the
system. They establish a permanent link between the real property in the field and
the tax records in the office. They are indispensable to the discovery of property and
the identification of property ownership. They simplify the task of property
44

description and tie together all property records, including field appraisal and
assessment sheet, tax rolls, and collection registers. They also serve the additional
important purpose of providing the public with vital real property information.
Finally, tax maps make possible the establishment of a system of records that is
easily adopted to automatic data processing techniques.
Thus, it may be seen that tax maps are absolutely necessary in any systematic
method of assessment administration. As tax maps constitute the first step and the
prime requisite of any general valuation or revaluation program, assessors should
place the highest possible priority on their construction over all other phases of
assessment work.
C.
PERSONNEL SUPPORT
1. Organization of Provincial, City and Municipal Assessor's Office.- In
line with the Real Property Tax Administration (RPTA) program,
Provincial, City Assessors Offices, as much as possible shall be
reorganized in such a way that the following divisions are provided:
(1) Tax Mapping Division - To take charge of the tax
mapping operations.
(2) Appraisal and Assessment Division - To take charge of
real property appraisal and assessment operations.
(3) Records Management Division - To take charge of records
management operations.
(4) Research and Statistic Division - To take charge of
gathering and studying data on real property valuation,
assessment and tax collection.
For provinces, a Field Operations Division, may be created, to
supervise the Municipal Assessors.
To insure the effective implementation of the RPTA program there
may be created in every Office of the Municipal Assessor at least one (1)
position of Tax Mapping Aide; one (1) position of Assessment Clerk; one
(1) position of Records Clerk; and one (1) position of Statistical Aide.
2. Staffing of the Provincial/City and Municipal Assessor's Office.- Once the
formal organization and the staffing pattern have been determined, the
next important step is the preparation of qualification standards for
each position. Staffing with qualified personnel in assessment offices is
extremely important. The qualifications of employees already on the job
should be carefully checked to insure that the right persons are in the right
45

positions as designated by the staffing pattern. Recruitment of new

employees to fill new or vacant positions should be so conducted as to
positively insure that only those who are fully qualified would be placed in
the various technical and supervisory positions. The building of a permanent
professionalized and technically competent staff is also a goal of the real
property tax administration.
3. Staffing the Tax Mapping Division.- In order to carry out effectively the tax
mapping operations under the RPTA program, the Tax Mapping Division
shall be provided, at least, with the following minimum regular positions:
(1) One (1) Tax Mapping Division Chief - He shall supervise,
coordinate and direct all phases of the tax mapping operation.
Preferably the incumbent should be a college graduate with
engineering or land surveying background. In some cases,
someone with land surveying and cartography work experience
from the Bureau of Lands, Bureau of Coast and Geodetic Survey,
Private Surveying Firms or other agencies engaged in land surveys
may be recruited to occupy the position. This kind of experience
is sometimes more valuable than a formal educational background.
(2) Two (2) Tax Mappers - The Tax Mapper shall serve as team leader
in tax mapping field operation. Preferably, he should have some
college engineering background with demonstrated leadership and
supervisory capability.
(3) Two (2) Draftsmen - They are the ones responsible for the
preparation of all maps (from base maps to final maps) relative to
real property tax administration and may be utilized to assist in
actual sketching work in the field. A high school or vocational
graduate with substantial training or experience in drafting or
cartography may qualify for the position.
(4) One (1) Typist/Research Clerk - This person shall be responsible
for the recording, cataloguing, and cross referencing of all maps
and related records of the tax mapping division in both the field
headquarters and the main office. A person who has completed at
least two years college and with knowledge or experience in typing
may qualify for the position.
(5) One (1) Map Filer - He shall be responsible for the filing and safe
keeping of tax maps and related records. He must be at least a
high school graduate of average intelligence and above all
dependable.
The foregoing minimum qualification requirements are subject
to such guidelines, rules and regulations on position classification
46

and related personnel matters as may be issued by competent

authority.
If extensive use is to be made of aerial photographs,
qualified personnel in this Division should be enrolled in the Photo
Interpretation Program at the University of the Philippines
Training Center for Applied Geodesy and Photogrammetry.
D. FACILITY, EQUIPMENT AND COMMODITY SUPPORT

1. Facilities.- A separate work area for the preparation and storage of tax maps
and related files must be provided, away from direct contact with the public
but immediately accessible to field survey personnel. The work space
provided should be cool, dust-free, and of sufficient floor area to provide
freedom of movement between and around drafting tables, map files, etc.
Adequate working facilities represent only a relatively limited cash
investment, but one that is absolutely essential to a successful Real Property
Tax Administration improvement projects.
2. Equipment and Commodity Support of Field Operations.- Successful
performance of the field phase of the tax mapping and tax appraisal
operations depends to a large degree upon the adequate equipment and
commodity support, including transportation, the basic tools for mapping
and
measuring and essential supplies. Virtually every field operation
requires the use of suitable vehicles to transport personnel, equipment and
materials to and from the work site in the field.
Past experience has
repeatedly proved that projects fail or fall behind schedule when inadequate
vehicular support is provided. If at all possible, one or more vehicles should
be assigned to the field teams throughout the period they are engaged in
field work.
As the various field phase of tax mapping and tax appraisal work
are accomplished the work burden shifts to the Office where the official tax
maps and records are prepared. Once again, the success of the operation
depends to no small degree on the adequacy of the equipment, tools and
materials available for the work to be done.
In cases of major office equipment outlays, these should be carried
as capital purchases in the Capital Improvement Program (CIP) of the
province, city or municipality. Each years budget should make specific and
detailed provision for all items of office equipment, office tools needed for
mapping and record making, and the office supplies, including the necessary
forms.
The entire office support operations as it relates to the real property
tax administration program must be specifically budgeted in order that the
needed items will be on hand ready for use when needed.
47

Provision of adequate working tools, equipment and materials for field tax
mapping and tax appraisal operations is also of great importance. Field crew that
arrives on site with adequate tools, equipment and materials are in a position to
produce quality work. Without this support, the end product will suffer and the
time taken to produce even inferior work will increase substantially.
Tax mapping field teams should have access, at least, to the tools,
equipment and materials listed below:
(1) Equipment and Tools:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Vehicle (preferably jeep and/or motorcycle)

Magnetic Compass
Transit
Engineer Steel Tape
Stadia Rod
Portable Calculator
Basic Drawing Instruments (such as triangle, scales,
pencils, etc.)
(viii) Map Boards
(2) Materials:
(i) Engineering Controlled Land Survey Maps
(ii) Rectified Aerial Photographs
(iii) Plastic Overlays
(iv) Tracing Papers
(v) Chalks
(vi) Papers, etc.
Adequate and detailed provision must be made in each annual
budget for the vehicular support and maintenance, and for the acquisition of
the equipment, tools and materials needed to support field operations. This
will require the programming of and identifying what items are exactly
needed in the field operation for a particular period. A direct follow up
should be made through the budgetary process to insure that necessary funds
are appropriated and made available as required.
E. Preparatory Steps in Tax Mapping Operations:

1.
Base Source Data Inventory. - Tax maps should be prepared from either
one or any combination of base data sources, viz: (1) the existing
engineering control survey maps; (2) the rectified aerial photograph; or (3)
the original parcellary survey to be conducted by the Assessor's Office.
48

(a) Existing engineering controlled land survey sources are

listed as follows:
(1) Cadastral maps - survey maps referring to extensive urban or
rural surveys made for the purpose of locating property lines and
improvements, and is primarily used in connection with the
extent, value and ownership of land.
(Davis and Foote
Surveying)
(2) Public Land Survey Maps - maps of surveys conducted for the
purpose of subdividing land in accordance with some pre-arranged
plans within a designated area. (Davis and Foote Surveying)
(3) Isolated Survey Map - maps of surveys conducted for isolated or
private land are usually for the purpose of obtaining clear title
certificate to the land.
(4) Topographic Map - map showing the topography or relief (by
contour line) of the area including water drainage areas and other
man-made structures.
(5) Map of Existing Road Network - map showing the location, extent,
design and alignment of roads.
(6) Other relevant sources such as technical descriptions from
Certificate of and Title and Deeds, etc. which can be taken from
the Registrar of Deeds or Land Registration Authority.
(b) Rectified Aerial Photographs - Rectified aerial photograph
can be used as basis and source for base map in tax mapping operation.
It provides an excellent source of information for a parcellary mapping
and property assessment. Advantages of mapping with the aid of aerial
photographs are rapid coverage of large areas, accessible or
inaccessible and assurance in getting visible detail. The procedure for
lot-sketching using rectified aerial photos is described in a later portion
hereof.
(c) Original Parcellary Survey - In the absence of engineering
controlled land survey maps and rectified aerial photographs, the
Assessor concerned shall conduct an original parcellary survey under
any of the following methods.
(1) Compass and Tape Method
(2) Transit and Stadia or Tape Method
(3) Plane Table Method
49

The execution of the abovementioned survey method is discussed in

the later portion hereof.
2. Preparation of Base Maps - It is impossible to secure a complete set of

standard base map for a municipality or city. The assessor concerned shall
explore in resorting to the existing and/or available maps, or undertake
parcellary survey as mentioned in the preceding section hereof in the
preparation of a base map for the purpose. This requires the compilation
and coordination of all survey plans and property descriptive data so that
they will be as accurate and prevailing as possible. When the base source
data are developed into a coordinated map covering the entire municipality
or city, or portion thereof, the developed map (s) is called the base map.
Base Map - The first step in the preparation of tax maps is to secure base
maps. These maps should be a coordinated and updated maps drawn to scale
which shows political boundaries, lot lines, public and private improvement
such as roads, highways, railroad lines, irrigation network and natural features
like rivers, creeks, lakes, etc. (See Fig. 5.)
(a) Engineering Controlled Land Surveys. - If engineering controlled
land survey maps are to be used for tax mapping purposes, it shall be necessary
to prepare base map of the municipality or city so covered. This map shall be
developed from available property boundary information gathered during the
base source data inventory.
The procedure is to consolidate or integrate all the various existing maps
covering an entire municipality or city by tracing them in a tracing paper. In the
process, such map should be reasonably accurate and up-to-date. Information
should be readily retrievable by reference to the base source data.
Since base maps are to be developed from various maps of different
scales, the same should be drawn to a standard scale for a barangay or
segregated portion of a city or municipality. As far as possible one standard
scale may be used for the entire city or municipality. The scale so selected
should be convenient enough to produce a base map where details necessary for
property identification can be conveniently indicated in every parcel of land
thereon and discernible. Thus the engineering controlled land survey maps with
different scales shall be reduced or enlarge to the selected scale with the use of a
pantograph. For this reason maps covering highly urbanized areas may be
prepared of relatively large scale while those covering rural areas may be
prepared of relatively small scale.
After the development of the base maps, it is necessary to invariably
delineate provincial, city, municipal, district and barangay boundaries on the
base maps. At this point the preparation of base map from engineering
50

controlled land surveys has been completed. The original (in tracing paper) of
the base maps shall be safely kept and preserved in the Office and shall not be
used as a working map for tax mapping purposes in the field. Instead, several
prints of the original base map shall be made and used as working map in the
field.
(b) Rectified Aerial Photographs. - When using rectified aerial
photographs, the preparation of base maps shall be accomplished in the field
operation. Actual field inspection and personal interviews with the owners or
occupants shall be made to determine the necessary information in identifying
every parcel of land including its corresponding corners and lines. Every
determined corners and lines of separate parcel of land shall be delineated
directly on the photo overlay and necessary data shall be recorded in the
appropriate forms, continuing the operation until the aerial photograph in use
has been completely covered. The accomplished photo overlay represents the
base map for the area.
Appropriate joining information as coordinated
between aerial photographs in use shall be made to make certain no gap occur in
the area which has been mapped. Sketch information on the photo overlay,
which is a superimposed transparency sheet (tracing paper), shall be the basis
in preparing the tax maps. The original sketches in the tracing paper shall also
be kept and preserved in the same manner as mentioned in the immediate
preceding paragraph.
For convenience of field sketching on aerial photographs and for the
protection of the photos from damage which may be sustained from weather or
handling during field operations, rectified aerial photographs should be encased
in a map board. The board is simply a piece of plywood or lawanit cut slightly
larger than the aerial photos and covered with plastic overlay film secured on
three sides. The 4th side is left open for the convenience of changing photos by
slipping them in and out of the map board. Once secured in the photo map
board, boundary lines and other information can be drawn directly on the
overlay film or tracing paper. Either method is satisfactory. In this manner the
aerial photos will be protected during their use in the field.
(c) Original Parcellary Survey. - In the absence of engineering
controlled land survey maps and rectified aerial photograph, the Assessor
concerned shall conduct an original parcellary survey using any of the methods:
Compass and Tape Method; Transit and Stadia or Tape Method; and Plane
Table Survey Method.
The following preparatory steps shall be made before fieldwork:
(1) Organization of Surveying Team. The team is composed
of the following:
(i)
One (1) Instrumentman - Operates the Transit or

Compass. If nobody in the Office knows how to
51

(ii)
(iii)
(iv)
(v)
(2)
operate a transit or compass, somebody from the outside

shall be recruited for the purpose.
One (1) Lineman - Establishes the loop traverse control
stations and acts as foresightman. To be designated as
such is the Tax Mapper.
Two (2) Chainman - Measure the distance between
traverse stations and/or property boundary corners. To
be designated as such are the Data Gatherer and Tax
Mapping Aide.
One (1) Laborer - Serves as Instrument Carrier and
Backsightman.
One (1) Guide - Assists the team in identifying the
property owners and pinpointing the boundaries of the
lands.
Necessary Equipment, Materials and Supplies to be used

in Original Parcellary Survey:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Transit or Compass
Engineer's Tape
Stadia
Two (2) Plumb Bobs
Fieldnote Books
Metric Scale
Basic drawing Instruments (Triangles, Protractor,
pencils, etc.)
(viii) Drawing Materials (Tracing Papers, ink, etc.)
(3) Procedure:
(a) Compass and Tape Method: A parcellary survey
may be undertaken by the use of a lensatic or any other compass
of similar quality and a tape. The compass and tape are used to
measure the direction and distance, respectively.
At each property corner of the lot, the bearing (angle)
toward the succeeding corner of the same property shall be taken
and recorded on the fieldnote. The distance from the occupied
corner to the sighted corner will then be measured by the tape and
properly recorded. The direction of lines is measured by a compass
showing the angle in degrees of the line with respect to the
meridian (north-south line) is called bearings. These bearings are
measured from North or South and towards the east or west.
Bearings are written in abbreviated form by the meridian direction
(north or south) and the angle of the measured line to either the
west or east, like N 55E which means that the line is 55 east if the
direction measured is from north or simply directly northeast. The
52

recorded bearing and distance shall then be plotted on a sketch map

sheet, preferably a tracing paper, at a convenient size to
accommodate as much as possible all the parcels in a barangay.
The same process shall be continued until all property
boundary lines shall have been plotted accordingly on the sketch
map sheet.
Pertinent data needed in connection with tax mapping and
appraisal and assessment operations, as much as possible shall be
gathered and recorded on the proper forms simultaneously with the
parcellary survey.
(b) Transit and Tape/Stadia Method: The transit is a
surveying instrument used for the purpose of measuring angles.
The operation, use and maintenance of a transit are an extensive
subject, which will not be covered in this manual. It is assumed
that a person on the Assessors staff will be qualified to conduct
training of field personnel in this subject.
A Bearing (a direction of a line) is the angle measured from
any reference line, such as magnetic or true meridian. Bearings are
angles measured from the north and the south towards the east or
the west. They can never be greater than 90 degrees. Bearings read
in the advancing direction are forward bearings; those in the
opposite direction are back bearing. Computed bearings are
obtained by using a bearing and applying a direct deflection, or
other angle. Bearings, either magnetic or true are used in returning
old surveys, in computations, on the maps and on deed descriptions.
An Azimuth is a clockwise angle measured from some reference
line, usually a meridian. Most government surveys use geodetic south as
the base azimuths. Other surveys in the Northern Hemisphere may
employ north. Azimuths are advantageous in topographical surveys,
plotting, direction problems, and other work where the omission of the
quadrant letters and a range of angular values from 0 to 360 degrees
simplify the work.
Horizontal Control explained: All surveys require some kind
of control, be it a base line, or benchmark, or both. Horizontal
control consists of points whose positions are established by
traverse, triangulation or trilateration. The Philippine Coast &
Geodetic Survey has established many thousand control points
throughout the country and tabulated azimuths, latitude and
longitude, coordinates and other data for them.
53

Transit-tape tertiary traverse control maybe sufficient on

original parcellary surveys for tax mapping purposes. Property
corner points may be located by sideshots from traverse stations
and their distances as much as practicable will be taken from stadia
readings. Corner points may be also located by intersection of two
sideshots taken from two traverse stations.
Based on the survey data, recorded on the fieldnotes provided
for the purpose, traverse station (horizontal controls) and property
corner points shall be plotted at a predetermined scale on a tracing
paper of convenient size enough to accommodate as much as
possible all the parcels in the barangay. The parcellary sketch map
may be progressively accomplished as the fieldworks go on.
(c) Plane Table Survey: Two basic kinds of table are used: a
small traverse with peep-sight alidade and fixed leg tripod without
leveling head, obviously appropriate only for rough work; and the
standard plane-table board, usually 24 by 31 in., set on a tripod
having either the USC & GS fourscrew leveling head or the
Johnson ball-and-socket head.
Plane tables are oriented by means of a declinator, by
backsighting as with a transit, or by resection.
Permanent
backsights (towers, lone trees, fixed signals) enable the instrument
man to check his orientation frequently without interrupting the
rodman's movements.
A traverse is run by orienting the table, sighting the next
point, drawing a line along the alidade blade and plotting the stadia
length, then moving to the plotted point and repeating the process.
An average distance and elevation is obtained from the foresight
and backsight. Adjusting the vertical is index to read zero when
the bubble is centered presents an ever-present problem, because
the table goes off level.
Topographic details are located by radiation or intersection.
Short distances can be measured with the cloth tape for large-scale
maps. The intersection method
(graphical triangulation) is
appropriate for long sights taken from two plane-table stations or
three for checking - to inaccessible points.
In resectioning, orientation of the table at positions not yet
identified on the map is done by either of the two or three point
method. In two point location, a direction toward the unselected
next point "X" is plotted. After setting up at any selected spot on
the projected line "bx", the table is oriented using that line. By
54

sighting to the known plotted point "A", which preferably is at an

angle of 60 to 90 with "bx", the set up location is fixed at point y;
the intersection of "bx and "aA extended.
The three-point location method determines the plane table position after
the table is set up at a place from which three or more prominents plotted
control signals can be seen. Area drawn with radii equal to the measured
distance and using the plotted signal points as centers give the desired point.
Scales of Map - The following are some standard scale that shall be considered
in the preparation of maps. The sizes of parcels of land and convenience for
field use have been the controlling factors in influencing its use.
(a) Urban areas
(b) Rural areas
(c) Forested areas
1:100 to 1:2000
1:1000 to 1:10,000
1:4000 to 1:50,000
PRE-FIELD OPERATIONS
- The first step in the Pre- field operation is the preparation of base map as
earlier discussed. It is important that cadastral maps and all engineering controlled
maps are secured from the Department of Environment and Natural Resources/Land
Management Bureau (DENR/LMB) or from other government agencies concerned.
1. PREPARATION OF PRE-TAX MAP CONTROL ROLL - Upon receipt
of the duly prepared FAAS from the Records Management Division, the staff of the
Tax Mapping Division, shall start to prepare the Pre-Tax Map Control Roll. The
necessary data contained in the FAAS shall be tabulated in the said control roll in
numerical order of the temporary PIN. These roll facilitates the control of FAAS in
the field as well as supplying the field crew with a systematic method of accounting
for selected information. It also serves as checklist in determining the extent of
coverage by the tax mapping field crew.
2. PRELIMINARY TIE-UP OF FAAS AND PARCELS ON BASE
MAPS.- The success of the field operation, and the tax mapping as a whole is
largely dependent upon an initial attempt to link office records and the
corresponding parcels in the base map prior to actual field property identification.
The procedure is called the preliminary tie-up. To accomplish such process, the
inputs required are the Pre-Tax Mapping Control Roll and the base map of the
municipality or of the individual barangays and, if available, the list of claimants
which can be secured from the Land Management Bureau. By reference to the
survey lot number, the necessary information for each FAAS reflected in the PreTMCR, a set of information is transferred to the base map. This information
includes the name of the declarant, area as declared, a notation T for titled properties
in blue ink and the 4-digit temporary property index number in red ink. Data from
55

the claimants list may serve as an aid for purposes of validation and/or
reconciliation as to the name of the claimant and the area.
One of the important features of the Preliminary Tie-Up is the use of a
technique in identifying FAAS (in the Pre-TMCR), which have been linked with the
corresponding parcels. For a one-to-one correspondence of parcel and FAAS, i.e.,
one FAAS for one lot, a check mark on the left side of the temporary PIN of the PreTMCR and a check mark in the base map parcel is used to signify the Office Tie-Up.
This means that the ownership will just have to be verified during the field
operation. If the tie-up in the Office is confirmed in the field thru an interview, then
a second check should be marked on the right side of the temporary PIN of the
control roll used.
It is always possible that not all prepared FAAS could be tied-up with the
parcels in the base map. This requires actual verification in the field. Chances are
that several parcels on the base maps may not be covered by tax declarations hence
undeclared by the owners. As such, a new FAAS for each of this parcel shall be
prepared on the field after identifying the property.
3. PREPARATION OF WORK PLAN AND SCHEDULE - In order to
attain a maximum output and efficiency, a fieldwork program shall be prepared.
The Chief of the Tax Mapping Division together with the team leaders should
prepare the fieldwork program and schedule. The work program should include
points of orientation, routes to be taken the number of parcels to be covered in a
given period and the time for returning to the field headquarters in the evening. The
Chief Tax Mapper who should accompany one crew daily on an alternate basis can
give supplementary instructions. Supplementary instructions can likewise be given
at the headquarters during evenings when all members of the field crews have
assembled.
1. Pre-Field Operation Activities:
a) Organization of Tax Mapping Teams
1. Data Gatherer/Tax Mapper
2. Tax Mapping Aide
3. Barangay Guide
b) Training of Tax Mapping Team
c) Procurement of Cadastral Map and list of lot claimants
d) Preparation of Base Maps from:
1. Engineering Controlled Survey
2. Aerial Photography
3. Topographic Maps
4. Road Network Maps
e) Gathering, Classifying and Compilation of property records such as:
1. Titles
2. Sketch plan
3. List of lot claimants
56

f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
q)
4. Other pertinent data

Reflecting lot claimants and area on the base map.
Preparation of FAAS
Arrangement of FAAS alphabetically by barangay (lands/buildings).
Attach all FAAS for buildings to their respective parcels with postfix B-1
Assignment of Temporary Property Index Number to the first FAAS with
001 for every barangay (Complete Temporary PIN 001-0001)
Preparation of Pre-TMCR
Preparation and submission of work plans which will include:
1. Points of Orientation
2. Routes to be taken
3. Number of parcels/RPUs to be covered per day
4. Time for returning to field headquarters
Pre-Field tie-up
General briefing of Tax Mapping Team
1. Public Relation and courtesy towards municipal and Barangay
Officials as well as the taxpayers and residents.
2. Field Operations Techniques
3. Magnitude of the field Tax Mapping Program
4. Data to be gathered and recorded in the field
5. Accomplishment of the necessary prescribed forms
Notification of municipal and barangay officials and written notices,
written both in English and Vernacular, to be placed in conspicuous
places
Establishment of proposed headquarters
Final Check of equipment, supplies and materials
2. Field Operation Activities:

a) Courtesy Call - Immediately upon arrival on the field, and prior to the
beginning of the work, the Chief of the Tax Mapping Division together
with all members of the team should confirm their arrival with the
appropriate local officials. This generally entails a visit to the municipal
building. Crewmembers are introduced to local officials so that they can
be recognized on sight as members of the Assessors staff. The Chief,
Tax Mapping Division should also present and discuss their work plan
and schedule with local officials and arrange a tentative schedule for
periodic meetings to keep them well-informed of work progress.
1. Introduction of the members of the Tax Mapping Team to the
officials concerned
2. Presentation and discussion of work plans with local officials
3. Request for barangay guides
b) Orientation of guides - As soon as practicable, barangay leaders are
assembled for the purpose of their importance in the tax mapping operations.
The work plan and schedule should be coordinated with barangay leaders.
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Guides who are not needed immediately can return to their barangay
and begin an independent informal survey to facilitate and expedite the
property identification operation in their respective barangays. Guides should
be impressed that the major purpose of the operation is to identify real
property parcels and their respective owners.
c) Final Briefing of Tax Mapping Team
1. Tax Mapper
Leads the team in all phases of the operation
Takes note of questions of boundaries and ownership of real
properties
Directs all Mapping and information gathering activities
Checks the Teams field accomplishment
Takes custody of the Pre-TMCR and the FAAS
Responsible for assigning Temporary PIN
Records all information necessary for appraisal and
assessment of all real properties
2. Tax Mapping Aide
Takes charge of the base maps
Records the necessary notation on the base maps (Temporary
PIN, Title (T) check marks for properties tied up)
Reflects partition or consolidation based from approved plan
from Bureau of Lands
3. Barangay Guide
Assists the team in identifying the ownership and property
boundary lines
Serves as liaison between the real property owners and the
Tax Mapping Team
d) Field Work Activities
1.
2.
3.
4.
5.
6.
Field interviews with property owners or administrator

Identification of property ownership
Adjustment of property based on approved plans
Parcellary sketching in case of subdivision or consolidation
Conflicting areas/boundaries should be identified
Final tie up with FAAS in the PRE-TMCR with the tax mapped parcels
on the base map with red check mark on the right hand side of the
Temporary PIN on the PRE-TMCR.
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7. Parcels on the base map should be properly assigned with the temporary
PIN in red ink. If properly identified and for pre-tie up parcels a check
mark is indicated meaning a complete tie up has been made and T in blue
ink should be reflected for titled parcels.
8. Determination of adjustment factors such as type of road outlets, distance
to all weather road, Poblacion, Market and Trading Centers
9. For mixed classification such as agricultural and residential, the area for
both should total the area reflected on the base map
10. For newly discovered land declared for the first time, a new FAAS
should be prepared with ten (10) years back taxes imposed from date of
discovery
11. Approved plan from the Bureau of Forestry with declaration that the land
is alienable and disposable
12. If the property has been occupied for less than 10 years, a barangay
captains certification should be presented with the affidavit of the
adjoining owners stating that such taxes shall take effect the year
following the occupancy
13. For Buildings:
Gather all data needed to come up with correct computation of market
value to determine the correct assessed value.
Other building plans should be secured if possible.
14. For Machineries:
Machine type
Number of machine
Brand name of machine
Year acquired/installed
Condition of machine
Replacement/Reproduction cost for old machine
e) GENERAL FIELD ACTIVITIES. - Whenever possible, field activity
should follow the work plan. However, depending on unforeseen
circumstances on field conditions, the tax mapping crew can make necessary
adjustments in the program. These changes should be recorded in the daily
production/accomplishment report sheet and should be reported to the Chief,
Tax Mapping Division, at the earliest convenience.
Although some specific techniques may vary between methods used,
there are some general procedures that will apply in all cases. The tax
mapping team must familiarize themselves with the base maps, aerial photos
or original surveys as starting point. Combined with the method of
inspection and measurement, the team will determine property boundary
lines and corners. This is done in close coordination with the owners or
occupants of the properties. The information gathered is verified from the
base map. Simultaneously, the team completes the pre-TMCR and the field
appraisal and assessment sheet (FAAS) by recording therein the necessary
information relative to the property under survey. This process is repeated
for every parcel. For newly discovered property, a FAAS shall be
59

correspondingly prepared and a temporary PIN next to the last temporary

PIN in the Pre-TMCR is assigned.
4. REVIEW OF FIELD WORK ACCOMPLISHMENT AND DATA
GATHERED. - Following each day's work, the tax mapping team leader
examines the field work and identifies those areas which need clarification. A
partial checklist to be used by team leader as a guide shall be as follows:
(a) Has each team completed the assigned area?
(b) Does each parcel contains a temporary PIN?
(c) Are there gaps, or overlaps between assigned crew work areas?
(d) Are there any discrepancies found in barangay or municipal
boundaries?
(e) Is there FAAS for each property?
(f) Can clear accurate sketches be drawn from information as provided?
(g) Are sketches oriented by north arrow?
Following comprehensive review of all field work including real
property field appraisal and assessment sheets (FAAS), Pre-TMCR,
sketches and other clarifying information, the team leader makes the decision
as to whether or not the field operation has been successfully concluded. If
not, teams shall be sent back to the area for the purpose of getting the
specific information which they have missed previously. Once the team
leader feels certain that he has secured sufficient information for the purpose
of preparing tax maps and records, the crew is ready to return to the
Assessor's Office.
3. Post Field Operations:
Upon returning from the field, the tax mapping operation enters its final
phase. In this phase, the final tax maps are prepared, permanent property
identification numbers are assigned, if necessary land area is calculated and
the FAAS are completed.
a) Definition of Terms:
Tax Map Is a graphic representation of a portion of the earth's
surface drawn to scale on standard size drawing
material, having property lines and jurisdictional
boundaries delineated showing all parcels of real
property and identifying each separate real property
ownership by a unique number. A tax map is also
referred to as property identification map. The final tax
map also indicates the section in the permanent property
identification numbering system.
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Section - Is a portion of a barangay that can be conveniently drawn

to scale on one standard size tax map sheet.
Drafting Machine - a mechanical device designed to increase drafting
production with fewer motions and greater accuracy.
Pantograph - an instrument for copying from one scale to a predetermined second scale and designed to eliminate the
need for expensive and time-consuming redrafting.
Planimeter - an instrument for measuring the area of a figure by
tracing its boundary line without the necessity for
extensive and time-consuming calculations.
Standard Format and Size of Tax Map. - The tax map shall be prepared
from the validated base map and/or parcellary sketches made in the field using the
standard map format prescribed under Annexes ___ and ___ hereof. The overall
size of the prescribed standard tax map is 35.5 centimeters by 50 centimeters.
Moreover, index maps, which shall be bound together with the tax maps,
become necessary that their size shall be the same as that of the tax map.
1. Activities:
a. Sectioning - It is not ordinarily convenient to draw an entire barangay on
one single standard size. This inconvenience is caused because of the input
requirement of presenting the information graphically to scale on the
standard format as described above. To avoid duplication of parcels, the
section boundaries should be made to pass along the property boundaries or
along improvement lines if feasible. Sectioning of a typical barangay is
shown in Figure ___, illustrating how the standard size format is laid over a
typical barangay. It should be noted that each section is, all-inclusive,
mutually exclusive, and assigned a number, which is recorded on a section
index map.
1. Conflict Area. - Area covered by political boundary conflict
shall be invariably indicated on the barangay index map and shall be
considered as additional section/s of both barangays claiming for it. Said
section/s shall bear the last section index number/s of both barangays. A
status quo shall be observed for the issuance of the necessary assessment
records of real property located therein, that is, the lots, buildings, machinery
and other improvements located within the conflict area shall continue to be
listed in the barangays where they are declared under the existing assessment
records covering thereof, until the conflict shall be settled.
b. Drafting the Tax Map - Field sketch information on the base maps shall be
refined and drawn in the appropriate section first in pencil and finally in
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black ink. The tracing must follow a standard as to weight and types of
lines, symbols and lettering. Information inscribed on the tax map shows lot
lines which represents property ownership boundaries and intersection of lot
lines which represents property owners. That area bounded on all sides
represents a separate land ownership. This process is repeated until each
section has been completely drawn to cover an entire barangay. Joining
information should be recorded for the purpose of matching contiguous
sections.
c.
Standard Lines, Symbols and Lettering for Detail Tax Map. - Tax maps
are the foundation of the assessor's record system and provide the
description for the assessments of all parcels of real property for taxation
purposes. The maps therefore should be neat, consistent and uniform in all
designation. The standards and specifications are set in Annexes "D" and
"D-1".
1. The standard and uniform line designations shall be used for all
property lines and the standard set forth in the standard symbols shall be
consistently used.
2. The standard lettering guides such as the Leroy or Wrico shall
be used so that uniformity for the entire country map system can be
maintained.
d. Subdivision Boundaries. - Political boundaries shall be shown by standard

designation where they actually fall.
(a) Boundary lines that run down the streets or roads shall be
shown running down the center of the street or road.
(b) Boundary lines that run down the river shall be shown running
down the center of the river.
(c) Boundary lines that fall along property lines shall be shown by
a standard symbol.
e. Boundary Definition and Certainty - All political boundaries within the
province or city must be definite and certain. Municipality or district and
barangay boundaries must be definite and certain. All political boundaries
must be positively and physically identified for they are the very foundation
of the property identification numbering system described herein.
Barangay boundaries in rural areas will generally be coincidental
with former barrio boundaries. However, in the poblacion and other more
urbanized areas, new barangay boundaries may have not been set. These
are the kinds of changes, which should be physically identified and charted
before full tax mapping operation should be undertaken in the field. This is
perhaps the single most time-consuming problem encountered by field crews
in the tax mapping operation and it is one which can be avoided if steps to
62

clarify boundaries taken well in advance and/or during the preparation of

base map.
Boundary disputes involving two (2) or more barangays in the same
city or municipality shall be referred for settlement to the Sangguniang
Panlungsod or Sangguniang Bayan concerned.
Boundary disputes involving two (2) or more municipalities within
the same province shall be referred for settlement to the Sangguniang
Panglalawigan concerned.
Boundary disputes involving municipalities or component cities of
different provinces shall be jointly referred for settlement to the
Sanggunians of the province concerned.
Boundary disputes involving a component city or municipality on the
one hand and a highly urbanized city or two (2) or more highly urbanized
cities, on the other hand, shall be jointly referred for settlement to the
respective sanggunians of the parties concerned.
Corollary thereto, concerned officials of all local political
subdivisions of the province/city/municipality should be duly apprised in the
steps necessary to resolve boundary conflicts and the Provincial, City or
Municipal Assessor concerned should make strong representations for the
reconciliation, definitions at the earliest time possible.
In cases where political boundary questions are resolved under this
authority, officials are encourage to set boundaries along easily identifiable
existing natural or man-made land divisions (river courses, road-ways, etc.).
Further, insofar as possible, attempts should be made to set boundaries to
coincide with property lines that are contiguous to political boundaries. This
will have the effect of reducing the number of private ownerships that will
be split into more than one political subdivision, thereby avoiding an
unnecessary additional administrative workload.
f. Unresolved Political Boundary Disputes. - The tax mapping operations
should proceed despite political boundary conflicts; however, the contested
areas shall be clearly defined in the final tax maps, the preparation of which
are discussed in the later portions hereof.
g. Final Parcel Numbering on Tax Map. - After all the parcels have been
drawn in the section map, each separate parcel therein shall be assigned a
two (2) digit number. The numbering sequence shall start from the northern
most parcel as "01" and moving from west to east, then south, and east to
west, then south (or tersely stated in an inverted "S" pattern), repeating the
west-east-south, east-west-south process until all parcels within the section
have been numbered. Insofar as possible consecutive lot numbers should be
63

contiguous to each other, such as lot 01 should adjoined to lot 02; or lot 02
has a common boundary line with lot 03. See Figures 9, 10, 11, and 12 for
illustration.
h. Inscription of Permanent PIN on FAAS.- After the permanent property
identification number has been assigned to each parcel, this number must be
inscribed on the appropriate space of the corresponding FAAS. Recording
of the permanent PIN on the FAAS completes the final tying together of the
official records with the real property in the field.
i. Drafting the Index Maps. - After the completion of the tax maps, index
maps shall be prepared. These maps are important because it facilitate ready
reference in locating the particular tax map for a city or municipality. It
also provides key identification and control of all lands within the province,
city or municipality as well as district and barangay. The order of
preparation of these maps is as follows:
(a) Section Index Maps - After tax maps have been prepared, section
index map of every barangay shall be prepared by consolidating all tax
maps comprise a barangay, showing therein the boundary lines of the
section with its corresponding index number which is numbered in
accordance with Section15 hereof. Inasmuch as the size of the index map
will be the same with that of the tax map, it is necessary that a larger scale
be used so that the same would fit in the standard size.
(b) Barangay Index Map - On the basis of the developed section
index maps, the Barangay Index Map is developed. The preparation of
which shall be made by consolidation of all section index maps to form a
map of the municipality, city district or city. This map shows the barangay
boundary lines of each barangay with its corresponding barangay index
number, which is numbered in accordance with Section 12 hereof. This map
shall be drawn in a standard map size.
(c) Municipal Index Map or City District Index Map - These maps
shall be prepared by consolidating the completed index maps in the
immediate preceding paragraph. This map shows the municipal boundary
lines of each municipality in the case of province, and district/barangay
boundary lines in the case of city or municipality of MMA, both with its
corresponding municipal/district/barangay index number. The map size
shall be the same with that of the tax map.
j. Post Tax Mapped Control Roll. - A Post Tax Mapped Control Roll
(TMCR) shall be prepared for every tax (section) map, based from the
information entered in the pre-tax mapping control roll duly accomplished
by the field crew during the field operation. The parcel entries are now
arranged consecutively by PIN entering parcel number 01 on the first line of
the control roll, unlike in the Pre-TMCR where the parcel entries are
64

arranged in accordance with the alphabetical order of the names of the

landowners in the barangay. The prescribed standard format of the post Tax
Mapped Control Roll is shown in Annexes "E and "E-1" hereof, where the
tabular entries required are self-explanatory. Since this control roll shall be
attached to the corresponding Tax map, it becomes necessary that its size
shall be the same as that of the standard tax map. Entries thereon shall be
under the direct supervision of the Chief, Tax Mapping Division. The
necessary number of copies of this control roll shall be made corresponding
to the number of tax map prints.
k. Calculation of Land Area. - The final phase in the tax mapping operation is
to calculate, if necessary, the area of the parcel of land by geometric
formulae, or by mechanical measure (planimeter or other devices). When
this information has been recorded on the FAAS, it shall be forwarded to the
assessment operation for purposes of appraisal and assessment, which is the
next step in the RPTA process.
l.
Recomputation of Land Area. - The final step in the maintenance of tax

maps shall be the recomputation or measurement of land areas, if necessary
and recording the results on the appropriate FAAS.
It is important to remember that the sum total of the land area of newly
created parcels must be equal to the land area of the original parcel. This
information shall be then recorded on the appropriate FAAS and forwarded
to the Records Management Division thus ending the process. Records shall
be also improved on a continuous basis as engineer controlled land survey
information becomes available.
m. Accounting Public Rights-of-Way. - Public rights-of-way must also be

accounted for on a land area basis. As public rights-of-way increase, the
volume of land area ownership must decrease accordingly, and vice-versa.
By maintaining an accurate accounting of streets or roads, the same shall be
considered as one parcel of land with an assigned parcel number within a
section.
The extend of roads/streets, which shall be a closed figure, should be
categorized as national, provincial, city, municipal or barangay road. Each
contiguous road/street of the same category shall be considered as one parcel
within a section. The outline of the road should be shown by standard
designation, and the inscription of road/street name therein. See Figures 9,
10, 11 and 12 for illustration.
MAP CARE AND STORAGE. - Considering that the provinces, city or
municipality has made substantial capital investments in the preparation of tax maps,
it is now necessary to protect tax maps and/or aerial photography in the same manner
as it would for other capital investments such as vehicles, buildings and infrastructure.
65

It be the first rule of the assessor's office that the tax map original should not leave the
office. Instead, prints should be made for any intended purpose.
For this reason, it is required that as each municipality or city that has been
completely tax mapped, at least two (2) complete sets/prints shall be made. In the
case of the province, at least three (3) complete sets/prints shall be made.
The set of tax map prints together with the post tax map control roll (TMCR)
covering the whole municipality or city shall be loose bound in book form arranged in
the following order:
(a) Municipality/District Index Map
(b) Followed by the Barangay Index Map of the Municipality/District
(c) Followed by Section Index Map of the first Barangay
(d) Followed by the Post Tax Map Control Roll of the 1st Section of the first
Barangay
(e) Followed by the Tax Map (1st Section) of the first Barangay
(f) Followed by the Post TMCR of 2nd Section
(g) Followed by the Tax Map (2nd Section) of the same Barangay
(h) The arrangement shall be made (steps d - g) up to the last section of
the last barangay in the municipality/city
The set of original tax maps (in transparency sheet) together with the original
TMCR shall be arranged in similar manner, in loose leaves and securely filed in a steel
map cabinet.
TAX MAP MAINTENANCE - The Tax Mapping Division has the
responsibility for the maintenance of the tax maps and for the preservation of the
integrity of the identification numbering system. Tax map maintenance is defined as
the technical revision of the tax map document, as differentiated from the care and
storage of tax maps which subject was covered in the previous section.
1. System Elements Affected by Change. - Any one or all of the
following assessment record forms may be affected by changes in (1)
ownership; (2) value; or (3) land area:
(a) Tax Map including Tax Map Control Roll
(b) Property Identification Number
66

(c) Tax Declaration

(d) Assessment Roll
(e) Real Property Field Appraisal and Assessment Sheet (FAAS)
(f) Property Ownership Card
(g) Tax Collection Record
The Tax Mapping Division is responsible for recording changes
in the first two (2) assessment record forms mentioned above. Changes
affecting the other official records are the responsibility of other
divisions. Revision of tax maps and the property identification
numbering system occur as the result of changes in land area only.
2. Changes in Land Area. - There are four (4) kinds of land area changes
which can possibly occur; they are (1) the subdivision of land (the
division of land into smaller ownerships); (2) consolidation (combining
two or more parcels thereby creating one large single ownership); (3)
natural physical phenomenon (such as shifting of river courses); and (4)
road and irrigation canal construction, etc. These land changes require
revision of property identification number and sometimes revision of tax
maps. All such changes will be reflected in new FAAS which shall be
referred to the Tax Mapping Division and becomes the instrument which
initiates appropriate action.
3. Protection of Tax Map Masters. The best method of preserving and
protecting original tax maps (tax map masters) from damage is to
employ the extensive use of prints. Tax map masters should never be
removed from their filing cabinets except for two (2) reasons: (1) for the
purpose of making prints of them or
(2) accomplishing their
comprehensive revision. Only when a tax map section has been the
subject of numerous changes (subdivisions, consolidation or natural
phenomenon) rendering it illegible or not discernible, forcing a large
scale, or similar situation, should a tax map master be revised. Two
complete volumes of tax map book in print copies shall be prepared for
the use by the Assessor's Office. These tax map books shall be kept in
the Tax Mapping Division and their use are discussed as follows:
(a) One Tax Map Book is to be used exclusively for the purpose
of cross- referencing information from other information sources, such
as cadastral lot numbers, benchmark locations, existing monuments, etc.
Under no circumstances should this information be inscribed on tax map
masters. The reason for this is quite simple. Tax maps must be kept as
clear as possible for the purpose of rapid and accurate reading through
the elimination of as much extraneous information clutter as possible.
67

It is understandable that the Assessor may desire to chart cadastral and

similar information, but the point is made here that it should be kept on a
separate set of prints provided for this purpose and not on the tax map
masters.
(b) The second volume is to be used exclusively to record
changes in land areas by inscribing the new property ownership
boundaries as they occur. They may be best described as the "working"
tax maps. It is this volume that is used by the Assessor's Office when
dealing with the public on matters requiring map reference. It is in
observing the condition of these prints that the decision is made when to
revise or redraw the tax map master.
Following the revision or
reconstruction of the tax map master, the appropriate number of prints
should be made and distributed, and the resulting new tax map master
enters the files.
4. Property Index Numbering in cases of Parcel Subdivision or
consolidation - In case of a land subdivision, into two (2) or more parcels,
the PIN of the original parcel shall be retired while the newly created lots
will be assigned consecutive numbers beginning with hw number following
the highest parcel numbers. These are then indicated on the tax map and new
tax declarations are prepared for each separate parcel. The appropriate PIN
is then placed on the corresponding tax declaration, thereby, completing the
tie-in between parcel and tax declaration, thus, maintaining the integrity of
the property numbering system.
Likewise, in cases of consolidation of two or more existing parcels into a
single owner-ship, the original property index numbers of the parcels
affected shall be retired and the resulting single parcel shall be assigned with
a number next the highest parcel number in the section.
The practice of retiring index numbers for subdivided or consolidated
parcels provided a historical physical and owner-ship changes of the parcels
involved.
MISCELLANEOUS PROVISIONS
Tax Mapping Operations constitute the first of the several inter-related
operations that must be undertaken in order to install a Real Property Tax
Administration (RPTA) System. However, before the initial phase of tax mapping
operations can begin, it is necessary that certain pre-requisite conditions shall be
complied with and made in order to insure the success of the program.
(a) When a particular parcel in a tax map is subdivided into numerous lots
and if sketched therein becomes too small to reflect the required data and not
discernible, the subject subdivision shall be drawn on a separate section and the
parcels thereof shall be numbered accordingly. This section forms an additional tax
68

map of the barangay and shall be given a section number next to the last section in
the barangay.
Notation shall be made on the original parcel, as "See
Section(s)____".
(b) No enlargement of parcel shall be reflected within a duly prepared tax
map arising from subdivision, etc. To emphasize, the draftsmen should see to it that
the scale used should be convenient before the finalization of tax map.
(c) The revision of tax map(s) shall be made either after the year end or
during general revision of property assessments. Revision of tax map refers to the
assigning of new number of all parcels within an individual tax map, or section, or
barangay, or district.
In the case of revision for individual tax map, revision shall be allowed if
50% or more parcels in a particular tax map has been affected due to subdivision,
and apparently making the parcel numbers cluttered or no longer discernible.
(d) In case of real property whose owner is unknown, the name of the actual
occupant shall be indicated in the line provided for "Administrator", which should
be superimposed by the word "Occupant" including its address in order that any
notices regarding the said property shall be sent thru the occupant.
(e) As regards the extent of a road or an irrigation canal, which is yet owned
by the registered owner, traversing a parcel of land, the boundaries of which shall
be shown by a designated lines and the same shall be considered as a separate
parcel.
However, if the property owner insists in writing that the affected area be
recorded as part of the said parcel, the same should not be deducted from the area of
such land. Thus the same shall be an integral part of such land and still considered
as one parcel.
(f) When an easement, which restrict the use by the registered or declared
owner, is granted over or through a parcel of land and annotated in the title
certificate, the boundaries of which should be drawn in standard lines. Thus the
same should be considered as a separate parcel.
(g) Parcel of land traversed by barangay boundary line within a municipality
or city, the portion that has a bigger area will bear the PIN of the subject parcel of
land, provided, however, That annotation shall be made as illustrated hereunder:
Barangay
"A"
"B"
Area
5,000 sq.m.
3,000 sq.m.
Assessed Value
P1,000,000
600,000
(h) Two or more contiguous parcels of land owned by a single owner may
be considered as one parcel if the property owner thereof insists/requested in
69

writing to declare the same under one assessment for real property taxation
purposes.
(i) The extent of railroad track, which will be a closed figure, shall be
considered as one parcel of land in every tax map.
(k) Building that is standing on two or more lots will bear the PIN of the lot
where the bigger area of said building is located.
(l) The portions of a parcel of land that is traversed by a municipal or city
boundary line shall constitute separate parcels in its respective LGU.
(m) Adjacent boundaries such as section number, lot number and lines
within a municipality or city shall be indicated on the tax map and to be shown by
its standard designation and lettering.
(n) Adjoining local government units, its boundary lines and names, shall be
indicated in the tax map and to be shown by its standard designation and lettering.
(o) When the mineral rights to a parcel of land are in different ownership
with that of the surface right, the surface right shall possess the PIN of such parcel
of land, and the mineral right should bear the same PIN of the surface right and a
four (4) digit number (such as 3001) will be added to it.
Where the tax map is not yet installed in the LGU, the identification for real
property unit (RPU) should be done through the series of transactions, in a manner
wherein each RPU within the barangay in a municipality must be distinctly marked.
1. The marking shall correspond to the daily numbering of the transactions
known as the Assessment of Real Property Number ARP No. (Tax
Declaration No.) based on the following illustration.
In case of province:
01-000-00000
- refers to the 1st municipality after all the municipalities in the province shall
have been arranged alphabetically and consequently numbered
chronologically .
000 - refers to the designated number of barangay which should also be arranged
alphabetically before they are numbered chronologically. However,
Barangay Poblacion should always be assigned the number 001 and
thereafter followed by the first barangay so arranged.
00000- refers to the series/numbers of daily transactions done consecutively until the
last transaction and shall again start with 00001 when a General Revision of
Assessment of Real Property (GRARP) shall be undertaken.
01
70

In case of city:
01-000-00000
01
refers to district number after all the districts within the city shall have been
assigned their respective number in pursuance of Section 3(b) hereof.
000 - refers to the designated number of barangay which should also be arranged
alphabetically before they are numbered chronologically. However, Barangay
Poblacion should always be assigned the number 001 and thereafter
followed by the first barangay so arranged.
00000 - refers to the series/numbers of daily transactions done consecutively until the
last transaction and shall again start with 00001 when a General Revision of
Assessment of Real Property (GRARP) shall be undertaken.
The entire office support operation as it relates to the real property tax
administration program must be specifically budgeted in order that needed items will
be on hand and ready for use when needed. Following are the items that will be
needed and for which the budget should make special provisions:
Drafting tables with adjustable tops
Drafting tables
Tracing tables
Large map tables
Desk and Chairs
Map filing cabinets
Filing cabinets
Light tables
Standard drafting and mapping instruments:
Drafting Machine
Pantograph
Planimeter
Scales (metric)
Drafting Sets (Pens, compasses, etc.)
Lettering sets
Triangles
T-squares
Straight Edge
Standard drafting and mapping supplies:
Tracing Paper
Drafting Film
Ink
Erasers
Etc.
71

Forms: (Sufficient quantities)

FAAS
Tax Mapped Control Roll
Property Record Form
Property Ownership Cards
Tax Declaration
Real Property Tax Order of Payment
Accomplishment or Production Report Sheet
The goal of the foregoing should be to provide adequate tools, equipment
and supplies for each draftsman and technician in order that tax-mapping work may
be expedited.
SECTION 5. - PREPARATION OF SCHEDULE OF FAIR MARKET VALUES

Before any general revision of real property assessment is made pursuant to the
provisions of Title II, Book II of the Local Government Code, there shall be prepared a
schedule of fair market values by the provincial, city and the municipal assessors of the
municipalities within the Metropolitan Manila Area for the different classes of real property
situated in their respective local government units for enactment by ordinance of the
sanggunian concerned. The Schedule of Fair Market Values shall be published in a
newspaper of general circulation in the province, city or municipality concerned, or in the
absence thereof, shall be posted in the provincial capitol, city or municipal hall and in two
other conspicuous places therein. In case of Metropolitan Manila Area, the assessors of each
district shall meet, discuss, compare and harmonize their respective schedule of values.
The miscellaneous provision may contain a provision authorizing the assessor to
classify, value and assessed real property independently of the schedule in cases where such
real properties are not specifically included in the Schedule of Fair Market Value.
SECTION 6. APPROACHES TO VALUE

The three (3) approaches to value are:
1. Sales Analysis Approach
2. Income Capitalization Approach
3. Cost Approach
A. Sales Analysis Approach:
Sales Analysis Approach is often referred to as Market Data
Approach. It is premised that the best evidence of value is valid sales data.
It is based on the principle of substitutions. This approach involves direct
comparison of the property being appraised to similar properties that have
72

sold in the same or in similar market in order to derive a market value

indicating for the property being appraised. Sales are transfers of rights of
ownership in perpetuity.
1. Sources of Sales or Market Data:
a.
Register of Deeds it is the duty of the Register of Deeds to

furnish the provincial or city assessor concerned with copies of
all contracts conveying, leasing or mortgaging real property
registered in his Office;
b.
Notary Public it is the duty of a notary public to furnish the

provincial or city assessor concerned with copies of all contracts
conveying, leasing or mortgaging real property acknowledged
before him;
c.
Classified Ads offer for sales of bids of real property are

advertised in the newspaper;
d.
Realtors real estate appraisers, brokers, salesman, dealers, and

bankers. Information or opinions on real estate values of such
professionals are valuable for sales analysis. The assessor or his
deputy may summon witnesses, and take disposition concerning
the value of real property.
e.
Real property owners or administrators Real property owners

or administrators are required under the law to declare the true
value of their real property under a sworn statement to be filed
with the Office of the Assessor where the property is located.
f.
Interviews Information from the parties involved in the sales

transactions of real estate are valuable leads to value.
2. Analysis of Sales Transactions:

The sales data to be considered in the sales analysis shall meet the
following criteria:
a.
Date of Transaction The date of transaction must be reasonably

near the assessment date. Sales transactions during the current
year or the preceding year would serve good basis for the current
market value;
b.
Type of Conveyance The conveyance must represent a normal

transaction; that is, whose which involved willing, able and wellinformed buyers and sellers;
73

The following transactions do not reflect market value, hence,

must not be considered in the sales analysis:
1.
2.
3.
4.
5.
Quitclaims
Sheriffs Deeds
Tax Deeds
Transfer between relative or interrelated companies;
Transfer involving non-residents or governmental
jurisdiction;
6. Foreclosures;
7. Deeds of donation
8. Deeds of Exchange
c.
Amount of Consideration The amount of consideration

reflected in the deeds must have the presumption of the true
value of the property involved. It desirable to interview the
parties involved in the transaction to check the accuracy of the
amount of consideration reflected in the deeds. The interview
must be done with utmost confidentiality to get cooperation from
the persons concerned.
d.
Analysis of sales compared to property subject to appraisal:
Sale No.
1
2
3
4
_Price_
Date of Sale
Comparison with
Property subject
of Appraisal____
P250/sq.m.
220
310
370
5 yrs. ago
4 yrs. ago
2 yrs. ago
1 yr ago
Closely comparable
Inferior
Superior
Closely comparable
Analysis:
A study of the patterns indicated that:
a. the sale prices of the closely comparable lots (Sale 1 &
Sale 5) increased from P250 to P360 in four (4) years;
b. Sale 2 tends to support Sale 1 as a fair price for that year;
c. Indications show that the fair market value of the lot under
appraisal is P360 per square meter;
74

Rule:
The general rule is that, the price of a closely comparable property
sold at the most recent date is the one reflective of the market value of
the property subject to appraisal.
d. Abstraction Method
Sales transaction sometime covered both land and
improvement, say lot and building; building and machinery,
etc. In this case, the value of the land or the improvement can
be derived by deducting the value of the improvement to
determine the value of the land or vice versa.
Example:
A house and a 300 square meter lot were sold at a total
price of P150,000.
1.
To determine the value of the lot, the
value of the building may be determined by the cost
approach, then deduct the same from the total price. If
the replacement cost of the building referred above is
P100,000, the value of the lot is P50,000 (150,000
minus P100,000);
2.
To determine the value of the building,
the value of the land may be determined by the sales
value of closely comparative land, preferably
adjoining land, then deduct the same kind has been
recently sold at P165 per square meter, then the value
of the building is P100,500 (150,000 minus 300 x
P165).
B. Income Capitalization Approach:

The Income Approach is based on the principle of anticipation reflected in the
definition of value as the present worth of all the rights to future benefits accruing to
ownership. The analysis of income often will serves as the best means of estimating the
value of types of properties that are not frequently sold in the market but have definite
income. A basic assumption of the Income Approach is that the value of an income
producing property is no more that the return derived from it. The value of income
capitalization rests upon the premise that future income capabilities determine the present
value of property
75

1. Steps involved in translating the net income Projection into a value indication (AIREA,
The Appraisal of Real Estate)
a. Estimate potential gross income;
b. Estimate and deduct a vacancy and collection loss allowance to derive effective
gross income;
c. Estimate and deduct expenses of operation to derive net operating income (net
income before recapture);
d. Estimates remaining economic life of the duration and pattern of the projection
income stream;
e. Select an applicable capitalization method and technique;
f. Develop the appropriate rate or rates;
g. Complete the necessary computations to derive an economic value indication by the
income approach.
3.
Capitalization Process
a. Capitalization defined
Capitalization is the mathematical process which translates or converts net
income into an indication of value.
b. The formula to derive capital value may be expressed:
I
V=
Where:
R
V Value
I Net Income
Before recapture
R Capitalization rate
76

Illustrations:
Example 1: A 300 square meter commercial lot is rented at P5,000 a month .
Determine its present value.
Solution:
1. Gross Income (P500 x 12)
2. Less Expenses
3. Net Income
4. Divided by Capitalization Rate
5. Lot Value
6. Divided by Lot Area
7. Lot Value per square meter
= P 60,000.00
=
00.00
=
60,000.00
=
0.13
= 46,153.46
=
300
= P 1,538.46
Capitalization Rate:
Interest rate prevailing in the area
Tax based on Market Value
(2% x 50%)
Example 2:
12%
1%
13%
Determine the present value of a 200 sq.m. lot where a 3-door

residential apartment was constructed using the following
assumptions:
a. Monthly rental per door P600.00

b. Replacement cost of the building
with estimated economic life of 33 years.
=P
90,000.00
=P
20,520.00
Solution (Land Residual Method):

1. Gross Income
(P600 x 3 x 12)
2. Less 5% vacancy
Allowance
3. Effective Gross Income
4. Less Expenses against
building:
a. Taxes
(2% of 90,000 x .65)
b. Insurance
(2% of 90,000 x .6)
c. Repair & Maintenance
(5% of rent collection)
d. Management charges
= P21,600
=
1,080
= 1,170
= 1,440
= 1,926
77

(5% of rent collection) = 1,926

e. Depreciation
(3% of 90,000)
= 2,700
f. Interest on building
investment (12% of
90,000)
= 10,800
5. Net Income computable to land
6. Divided by capitalization rate
7. Residential Land Value
8. Divided by Lot Area
9. Lot Value per square meter
P
=
=
=
=
=.P
18,162.00
2,358.00
0.126
18,714.28
200
93..52
Capitalization rate:
Tax based on market vale
Of land (2% x 30%)
12%
.6%
________
12.6%
Example 3 (Building Residual Method):

Assume that:
a. Gross Income
b. Land Value
c. Actual Use
d. Economic Life of bldg.
e. Location
=
=
=
=
=
P100,00 for first year

200,000
Commercial
40 years
Manila
Computation of the residual building value:

1. Gross income
=
P100,000
2. Less Vacancy & collection
allowance (5%)
= 5,000
3. Effective Gross Income
__________________P95,000
4. Less Expenses (excluding interest
amortization & taxes) say 25% _______________ 23,750
5. Net Operating Income _____________________ 71,250
6. Land Charges (P200,000x13.5%) _____________ 27,000
7. Income computable to building
P44,250
8. Divided by Capitalization rate _______________ 0.166
_______
9. Residual Building Value __________________P266,566.26
say: P266,570
=========
78

Land Charge Rate:

Interest of land cost
Tax (3% x 50%)
__
__
12%
1.5%
13.5%
__
__
__
12%
2.1%
2.5%
=========
16.6%
Capitalization rate:
Tax Based on Market Value (3%x70%)
Depreciation (1/40)
Example 4. (Riceland):
In leasehold agreement, the sharing of rice production, are 75% for the tenant
and 25% for the landlord, all expenses charged to the tenant except taxes.
Determine the value of a 2nd class unirrigated riceland:
Solution:
1. Under Assessment Regulations No. 7-77 dated July 26, 1977 of the
Ministry of Finance, the productivity of a 2nd class unirrigated riceland ranges from
47 to 63 cavans of palay per hectare. The midpoint of the range is therefore 55.
2. The share of the landlord of the
production therefore (25% x 55)
13.75
3. Net income of the land is

13.75 times P65.00 (assumed
price of palay per cavan)
4.Capitalization rate:
Tax (2% x 40%)
Interest rate
5. Capitalized
Value per
Hectare
____ .8%
____ 12%
____
12.8%
P893.75
.128
79
P6,982.42, say
P6,980
=====
P893.75

C. The Cost Approach

Basic to the cost approach is the Principle of Substitution; i.e. No prudent person
will pay more for a property than the amount for which more for a property than the amount
for which he or she can obtain by purchase of a site and construction of a building without
undue delay, a property of equal desirability and utility.
1. Relation of Cost and Value:
Costs represent a sacrifice, (that which is given up to obtain anything), or
negative past income. Value depends upon future expected benefits. It is clear
that there is no necessity for cost to equal value.
2. Reproduction Cost/ Replacement Cost Defined:
a) Reproduction Cost/Replacement Cost The cost of creating a building or
improvement having the same or equivalent utility, on the basis of current
prices and using current standards of material and design. It does not require
that all features be reproduced, inasmuch as it assumes only equivalent
services of not identical features.
3. Replacement/Reproduction Cost Illustrated
3.1 In 1992, a 520,000 family dwelling residential building was constructed at a
total cost of P120,000 (assumed). In 2003, the same replica building was
constructed on a lot located near the vicinity of the former at a total cost of
P1,500,000.
Therefore, the Replacement Cost New (RCN) in 2003, of the building
constructed in 1992 was P1,500,000 (assumed).
In other words, the cost of constructing the same replica of building
in 2003 was 2.5 times than its cost in 1992.
3.2 A certain brand new electric generator was bought in 1992 at P300,000
(assumed). The same brand of generator is now sold (2003) at P1,500,000.
The replacement cost of said generator is therefore P1,500,000. The
accumulated allowable annual depreciation from 1972 to 1984 should be
deducted from the replacement cost of P1.5M to determine the current
market value of the old generator bought in 1972.
80

SECTION 7. PROCEDURES IN THE PREPARATION OF THE SCHEDULE OF

FAIR MARKET VALUES
A.
Legal Basis:
1. Procedure for Approval and Effectivity of Tax Ordinances and Revenue
Measures. The procedure for approval of local tax ordinances and
revenue measurers shall be in accordance with the provisions of R.A. No.
7160: Provided, That public hearings shall be conducted for the purpose
prior to the enactment thereof: Provided, further, That any question on
the constitutionality or legality of tax ordinances or revenue measures
may be raised on appeal within thirty (30) days from the effectivity
thereof to the Secretary of Justice who shall render a decision within
sixty (60) days from the date of receipt of the appeal: Provided,
however, That such appeal shall not have the effect of suspending the
effectivity of the ordinance and the accrual and payment of tax, fee, or
charge levied therein: Provided, finally, That within thirty (30) days after
receipt of the decision or the lapse of the sixty-day period without the
Secretary of Justice acting upon the appeal, the aggrieved party may file
appropriate proceedings with a court of competent jurisdiction.
2. Publication of Tax Ordinance and Revenue Measures. (a) Within ten
(10) days after their approval, certified true copies of all provincial, city
and municipal tax ordinances or revenue measures shall be published in
full for three (3) consecutive days in a newspaper of local circulation:
Provided, however, Than in provinces, cities and municipalities where
there are no newspapers of local circulation, the same may be posted in at
least two (2) conspicuous and publicly accessible places.
B.
Technical Aspect:
1. A Schedule of Fair Market Values (SFMV) shall be prepared by the
Provincial, City or Municipal Assessors of the municipalities in
Metropolitan Manila for all classes of real properties within the local
government units concerned before a general revision of assessment is
conducted once every 3 years, reckoned from the first general revision
conducted pursuant to Section 219 of R.A. 7160.
2. In the case of Metro Manila, the Assessors of the district shall meet,
discuss and harmonize their respective schedules of market values.
3. The SFMV shall be prepared on the basis of standard approaches to value
such as market sales, cost or income value with consideration to data
gathered from mortgages, insurance, rentals and such other appraisal
information available to the assessors and evaluated in the prescribed
forms.
81

4. Upon completion of the SFMV, the same shall be forwarded to the

Sanggunian of the province, city, or municipalities in MMA for
deliberation and series of public hearings. Within ten days after approval,
the SFMV shall be published in a newspaper of general circulation for
three consecutive days or in the absence thereof, in the local newspaper
or be posted in the provincial capitol, city or municipal hall and in two
other conspicuous places therein.
5. The approved ordinance on the SFMV for the general revision of
assessment of real property shall include the legally approved assessment
levels and the percentages of adjustments applicable to the market value.
SECTION 8. DECLARATION OF REAL PROPERTY BY THE OWNER OR

ADMINISTRATOR
It shall be the duty of all persons, natural or juridical, owning or
administering real property, including the improvements thereon, within a city or
municipality, or their duly authorized representative, to prepare, or cause to be
prepared, and file with the provincial, city or municipal assessor, a sworn statement
declaring the true value of their property, whether previously declared or undeclared,
taxable or exempt, which shall be the current and fair market value of the property,
as determined by the declarant. Such declaration shall contain a description of the
property sufficient in detail to enable the assessor or his deputy to identify the same
for assessment purposes. The sworn declaration of real property herein referred to
shall be filed with the assessor concerned once every three (3) years during the
period from January first (1st) to June thirtieth (30th) commencing with the calendar
year 1992.
SECTION 9. DUTY OF PERSON ACQUIRING REAL PROPERTY OR MAKING

IMPROVEMENT THEREON
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 comes earlier.
SECTION 10. DECLARATION OF REAL PROPERTY BY THE ASSESSOR

When any person, natural or juridical, by whom real property is required to be
declared under Section 6 hereof, refuses or fails for any reason to make such declaration
within the time prescribed, the provincial, city or municipal assessor shall himself declare
82

the property in the name of the defaulting owner, if known, or against an unknown owner,
as the case may be, and shall assess the property for taxation in accordance with the
provision of this Title.
SECTION 11. RULES IN THE APPRAISAL AND ASSESSMENT OF REAL

PROPERTY
All real property, whether taxable or exempt, shall be appraised at the current and
fair market value prevailing in the locality where the property is situated.
The appraisal of real property shall be based on the latest Schedule of Fair Market
Values prepared by the Provincial Assessor, City Assessor or Municipal Assessor of Metro
Manila Area (MMA) embodied in an Ordinance passed by the Sangguniang Panlalawigan,
Sangguniang Panlungsod or Sangguniang Bayan of municipalities within Metro Manila
Area.
Appraisal of real property declared for the first time shall be listed, classified and
valued on the basis of the SFMV (either for land or building), and shall be subject to back
taxes (if applicable) of not exceeding ten (10) years from the year of initial assessment.
Thus, the property shall be liable to tax payment for a maximum of eleven (11) years
including the current year. The schedule of values applicable for the affected period shall
be controlling.
ILLUSTRATION:
(A) Land - Declared in 2003. Assume all supporting documents are submitted.
Basic Data:
Area 10,000 square meters
ConditionPlanted to fruit bearing tree
SFMV 1993 P20.00 per sq. m.
1994 P50.00 per sq. m.
2000 P110.00 per sq. m.
COMPUTATION OF VALUE
DESCRIPTION
Orchard
AREA
10,000 sq.m.
10,000
10,000
ASSESSMENT LEVEL
40%
40%
40%
SFMV
P20.00
50.00
110.00
ASSESSED VALUE
P80,000.00
P200,000.00
P440,000.00
83
MARKET VALUE
P 200,000.00
500,000.00
1,100,000.00
EFFECTIVITY
1991-1993
1994-1999
2000-2001

! Requirements for the appraisal of land declared for the first time:
1. For Untitled Property:
(a) A survey plan prepared by a duly licensed Geodetic Engineer
preferably approved by Land Management Bureau of the Department
of Environment and Natural Resources (DENR);
(b) Certification from Community Environment and Natural Resources
Office (CENRO), stating among other things, that the land is within
alienable and disposable area;
(c) Affidavit of ownership and/or Sworn Statement of Market Value of
Real Property submitted by the owner/administrator; Affidavit that
the applicant is in long, continuous and notorious possession of the
property.
(d) Certification from the Barangay Captain that the declarant is the
present possessor and occupant of the land and the certification of the
Adjoining Owners duly sworn to by the Barangay Captain and/or the
Municipal Mayor;
(e) Ocular inspection/investigation report by the assessor or his
authorized representative;
(f) In cases of newly discovered land wherein the possessor/occupant
whose rights can not be established, the foregoing requirements under
(a) to (e) hereof, shall likewise apply;
(g) In case of lands of the public domain occupied and possessed by
National Cultural Communities prior to July 4, 1955, a certification
from a government agency in charge of cultural communities,
National Commission for Indigenous Peoples (NCIP) or other
government agency, shall be submitted.
(h) An untitled property being claimed by two or more persons whether
natural or juridical should be issued two or more assessment of real
property.
2. For Titled Property:
(a) Certified true copy of free patent, homestead or miscellaneous sales
must be submitted;
(b) Certified true copy of the title issued by the Registry of Deeds,
certifying among others, that the original copy of which is intact and
existing in the said registry.
84

(c) Approved survey plan

A.
APPRAISAL AND ASSESSMENT OF LAND:

A.1
Urban Lands
Generally, market values of urban lands are enhanced by their
proximity to commercial and government center, educational and
religious institutions, highways and availability of water, electricity,
telephone system and transportation facilities, as well as accessibility to
good roads and avenues
Residential lands are valuable if they are accessible to
employment opportunities and shopping, recreational, educational and
cultural centers. Value of commercial lands depends upon their access to
suitable markets, while industrial lands are valuable if accessible to
source of raw materials, roads, ports, electric power and labor.
On the basis of these influences on value, residential, commercial,
and industrial lands located within the contiguous urban areas of the city
or municipality, may then be sub-classified into first, second, third or
more classes, and schedule of base unit market value per square meter
shall be determined and fixed for each sub-class. The number of subclasses for each class of the urban lands shall be left to the discretion of
the provincial and city assessor, and the municipal assessors of the
municipalities within the Metropolitan Manila Area depending upon the
existing variations of value factors in such land. The criteria established
herein, may vary or be modified to suite the actual physical
developments and conditions obtaining in a city or municipality.
However, lots located in the populous centers of barangays
separate from the contiguous areas defined hereof may not be subclassified in accordance with the criteria herein referred to. A schedule
of barangay street unit land value shall be established independently on
the basis of the sales value as well as opinions on declared values of
representative lots therein
(1) Lands actually and principally used for residential, agricultural,
commercial or industrial or mineral purposes shall be classified and
valued according to the schedule of unit base market values and
assessed at their corresponding levels of assessment, which shall be
fixed thru an ordinance by the Sanggunian concerned.
(2) Lands located in areas of mixed land uses In an area of mixed land
uses, such as residential with commercial or industrial, the
predominant use of the lands in that area shall govern the
85

classification, valuation and assessment thereof. If the predominant

use is residential, all lands in that area shall be classified, valued and
assessed as residential; if the predominant use is commercial or
industrial, all lands in that area shall be classified, valued and
assessed as such.
(3) A lot or parcel of land classified and valued as commercial or
industrial occupied by a building used both for residential and
commercial or industrial purposes shall be assessed on the basis of
the predominant use of the building or buildings. If the predominant
use of the building is residential, the assessment level fixed thereon
for residential land shall be applied on the market value of the lot or
parcel determined on the basis of the schedule of base market values;
if industrial or commercial, the assessment level for industrial or
commercial, shall be applied on the basis of the schedule of base
market values.
(4) Vacant lands shall be classified, valued and assessed like similar
lands in the locality.
(5) Lands actually, directly and exclusively used for cultural or scientific
purposes, located in residential, commercial or industrial areas shall
be classified and valued as residential, commercial or industrial in
accordance with the schedule of base market values determined on
the basis of that schedule.
(6) Lands owned by local water districts and government-owned or
controlled corporations rendering essential public services in the
supply and distribution of water and/or generation and transmission
of electric power, located in residential, commercial or industrial
areas shall, likewise, be classified and valued as residential,
commercial or industrial in accordance with the schedule of base
market values, and shall be assessed at ten per cent (10%) of the
market values.
(7) If those special classes of lands are, however, located in areas of
mixed land uses, such as residential with commercial or industrial,
the predominant use of the lands in that area shall govern the
classification and valuation of those special classes of land and shall
be assessed at the corresponding levels of assessment.
(8) Lands actually, directly and exclusively used for religious, charitable
or educational purposes located in residential, commercial or
industrial areas shall be classified, valued and assessed as residential,
commercial or industrial.
86

(9) If those lands actually, directly and exclusively used for religious,
charitable or educational purposes are, however, located in an area of
mixed land uses, such residential with commercial or industrial, the
predominant use of the lands in that area shall govern the
classification, valuation and assessment of those lands used for
religious, charitable or educational purposes.
! Rules for Computing Values of Urban Lands:
(a) The value of rectangular lots shall be computed as follows:
(1)
(2)
(3)
(4)
Rectangular lot within the standard depth - To find the value

of a rectangular lot within standard depth, multiply base unit
value by its area.
Rectangular lot whose depth exceeds the standard. (Compare
with Book)
Rear (Interior) Rectangular Lot. To find the value of a
interior rectangular lot, extend first the two (2) opposite sides
from a hypothetical rectangular lot supposedly formed by a
combination of the hypothetical rectangular lot and the
subject lot as in Rule I (b).
This value less the value of the hypothetical rectangular lot
computed also as in Rule I (b) is the value of subject
rectangular lot.
(b) Triangular Lots

(1)
(2)
Triangular lots with base on street. To find the value of a

triangular lot with base on street, first compute as a
rectangular lot as in Rule I, then take two-thirds (2/3) of the
resulting value.
Triangular lot with apex on street. To find the value of a
triangular lot with apex on street, first compute as rectangular
lot as in Rule I, then take one-third (1/3) of the resulting
value.
(c) Trapezoidal Lot. To find the value of a trapezoidal lot, compute the
values of the rectangular and triangular portions separately, according to
the rules hereof and take the sum of the computed values for the total
value.
(d) Irregular Lot. Reduce the irregular lot to the nearest equivalent
rectangular, triangular, trapezoidal sector and apply the abovestated rules
for computation of lot values.
87

(e) The established SFMV along a particular street in an urban area shall be
controlling irrespective of the actual use.
ILLUSTRATION:
Residential Land-SFMV - P1,500.00 per square meter
Land Dimension: Width 10 meters
Length
20 meters
Area
200 square meter
SFMV
P1,500.00/square meter
Market value
P3,000,000.00
Assessment Level
- 20%
Assessed Value
- P60,000.00
ILLUSTRATION:
Commercial Land SFMV - P500.00 per square meter
Land Dimension: Width - 10 meters
Length - 20 meters
Area
- 200 square meter
SFMV - P1,500.00/square meter
Market value - P3,000,000.00
Assessment Level
- 50%
Assessed Value
- P150,000.00
All Assessment Levels used herein are in accordance with the
statutory provisions of R.A. 7160 which may vary in accordance with the
local tax ordinance as specifically mentioned under the foregoing Section
1(6) hereof.
(f) Appraisal by Stripping Method shall be adopted where the length of the
land exceeds the established depth of 20 meters for residential areas, 30
meters for commercial areas, and 50 meters for industrial areas as
determined by the local assessor.
Suppose a residential lot 20 by 50
meters is located along a street whose schedule of base unit value is
P20.00 and the standard depth for residential land in the locality is 20
meters.
Strip
1
2
3
Unit
Value
%
Value
Adj.
UV
P20.00
100%
80%
60%
P20.00
16.00
12.00
Area
(sq.m.
)
400
400
200
88
(Width
Depth)
20x20
20x20
20x10
Value
X
P8,000.00
6,400.00
2,400.00

NOTE: Subdivision Lots are not subject to Stripping

Total . . . . . . . . 1,000 sq.m.
P16,800.00
ILLUSTRATION:
Class of Land
- Commercial
Established Standard Depth - 30 meters
Established Strip
2 strips
Applied percentage of SFMV per Strip
1st Strip
100%
2nd Strip
80%
Land Dimension: Width
Length
SFMV
20 meters
55 meters
P1,5000.00 per square meter
1) Recomputed
STRIP
1ST
W
20
2nd
20
TOTAL
L
3
0
2
5
TOTAL
AREA
600
SFMV
X P1,500 (100%)
500
X P1,500 (80%)
1,100 sq.m.
MARKET VALUE
P 900,000.00
600,000.00
P1,500,000.00
Stripping method shall not apply to corner lots.

For lands bounded by 2 streets which are not considered corner lots, the
higher street value shall be applied provided that the value per square meter
for the last strip shall not be lower than the value per square meter of lots in
the other street.
(g) Corner lots shall be valued with percentage increment as determined by the
local assessor in SFMV, provided that only the SFMV along the street with
the highest value will be considered as the factor for the corner influence.
Provided further that an alley or callejon shall not be a factor to
increase/adjust the value of the land.
(h) Adjustment for Frontage - Adjustment value for frontage shall be added to
the valuation of all commercial lots fronting streets or roads. The same is
derived by multiplying the length of frontage in linear meter by 50% of the
unit base value thereof.
89

A.2
Agricultural Lands
The base unit market value per hectare prescribed in the schedule
is multiplied by the area to arrive at its market value for different subclasses of agricultural lands. No provision in R.A.7160 for trees and
plants and it is the kind of plants and trees that determine the
classification and value of agricultural land. The aggregate value arrived
at is subject to the applicable adjustment(s) expressed in percentage(s)
for: (a) Type of road where the property is located or accessible, and (b)
location of property such as distance from the public road, and from the
poblacion or trading center.
The computation of values begins with the determination of
area(s) and productivity of the sub-classes of land or each sub-class
within a parcel of land. In the case of a parcel of land utilized to various
sub-classes, that is, rice, corn, coconut, etc. (if practicable, the boundaries
of such sub-class be plotted or sketched on the map) and the
corresponding area thereof shall be determined. Each area so derived at
(check if it tallies against the total area of the lot) be multiplied by the
applicable base unit market value. The resulting values for each sub-class
so derived at are summed up to obtain the total base market value of the
parcel. To arrive at a final value, the total base market value is modified
by applying the adjusted percentage value, which is the difference of
100% (base market value) and total percentage adjustment for type of
road serving the parcel and location of the property.
! ADJUSTMENT FACTORS The following guides are recommended

for percentage Adjustment on values for agricultural lands:
(1) Type of Road
% Adjustment
(a) Provincial or National Road

(b) For all weather Roads
(c) Along Dirt Road
(d) For no road outlet
--------- No Deduction
--------- 3% Deduction
(2) Location: Adjustment Factor

Distance in Kms.
0 to 1
Over 1 to 3
Over 3 to 6
Over 6 to 9
Over 9
Trading Center/Poblacion
0
-2%
-4%
-6%
-8%
90
All Weather Road

+5%
0%
-2%
-4%
-6%

Distance of property from all-weather roads, railroad stations, landing places

along sea coast and from trading center or poblacion shall be measured from
corner of the lot or parcel nearest to such road or center.
All-weather road includes national, provincial, municipal and all other public
roads traversable by trucks, cars and other forms of vehicles under any kind
of weather.
ILLUSTRATIONS:
Assuming a five (5) hectare irrigated riceland, capable of producing
204 cavans of palay per hectare annually has a SFMV of P150,000.00 per
hectare. Assume further that the riceland is over 3 kms. from all weather road
and trading center or town proper.
Market Value
Adjustments:
a) along no road frontage
b) kms from all weather road
c) kms to trading center
Total Percentage Adjustment
% of Adjustment of Unit Value
Adjusted Unit Value
Area
Market Value
Assessment Level
Percentage
Adjustment
SFMV
100%
P150,000.00
-9%
-4%
-2%
-15%
85%
P127,500.00
5 hectares
P637,500.00
40%
! Values of improvement such as trees and plants shall be considered in the

preparation of the schedule of values of land which is principally planted
on the land. This conclusion finds support in the decided case entitled
Manila Railroad Company vs Aguilar (35 Phil. 118), where the
Supreme Court said: when the land preferably intended for the raising of
a given crop or for the planting of trees of a certain kind, although these
or the crop be deemed improvements of the land they should not be
appraised apart from the land as they are an integral part thereof and their
value is inherent or forms a part of that of the land
! Agricultural land convertible into urban subdivisions such as residential,
commercial or industrial shall be classified, valued and assessed as
agricultural until such time that they shall have been converted and
developed into such subdivisions. This rule shall also apply to lands
already approved by proper authorities as subdivision but have not yet
been actually developed for the purpose.
91

As soon as a portion of the subdivision is finally divided,

converted and developed into residential lots, the same shall be valued
and assessed like similar lots in the locality. Portions of the subdivision
not yet developed and converted into residential, commercial or
industrial lots shall be classified, valued and assessed as agricultural.
Roads or streets in urban subdivisions, unless already donated or
turned over to the barrio (barangay), municipality or city, shall be listed
in the name of the subdivision owner and shall be valued on the basis of
the cost of cementing, asphalting or paving them with gravel and sand
per square meter. The roads or streets shall be assessed at the rate not
exceeding the assessment level applicable to lands located in the
subdivisions.
A.3
Subdivision Lands
Requirements:
(a) Duly approved subdivision plan by the Land Management Bureau
(LMB);
(b) A copy of the authority to sell from the Housing and Land Use
Regulatory Board (HLURB);
(c) Certified true copies of the Transfer Certificate of Title (TCT) and/or
summary of Certified List of individual TCTs issued indicating the
TCT Number, Name of Owner, Lot Number and corresponding area;
(d) Certificate of real property and transfer clearance issued and signed
by the Provincial, City or Municipal Treasurer/authorized
representative; and
(e) Sworn Statement/Declaration of Current Market Value by the
owner/administrator.
(f) Approval of the subdivision project by the Local Sanggunian.
A.4
Timber and Forest Lands

Timber and forest lands belonging to the Republic of the
Philippines or any of its political subdivisions, the beneficial use of
which have been granted to a taxable person, shall be subject to the real
property tax. For this purpose, said lands shall be appraised and assessed
yearly, at the market value of the marketable timber on the basis of the
annual volume of timber actually cut from the operational area, during
92

the preceding year regardless of the annual total allowable cut

indicated in the lease agreement.
A.5
Golf Courses
Procedures in the Appraisal of Golf Courses Course development follows a reasonably well-established
pattern including:
A.
B.
C.
D.
E.
F.
G.
Land Acquisition
Water Supply Provision
Route Planning and Surveying
Grading and Shaping
Installation of Irrigation and Drainage System
Seeding and Landscaping
Slope Rating
The time necessary to complete development is usually from ten

to twenty months depending upon timing of work in relation to seasonal
weather patterns.
The course developer can spend any amount of money to develop
a course which may range from the example given below:
TYPE
A
B
C
PER HOLE
5M
3M
2M
Type A consists of 19 Holes and above

Type B consists of 10 to 18 Holes
Type C consists of 9 Holes and below
In broad terms, golf courses can be categorized further by the
topography of the surrounding area: (1) flat course located upon valley
lands, (2) gently slopping courses located upon flood plains, (3) hilly
courses located upon gently rolling and steeper sloping lands. Hence, the
following additional cost may be considered:
Flat course
Gently sloping course
Hilly courses
93
Per Hole
P 500,000
700,000
900,000

GOLF COURSE VALUATION CRITERIA:

1) LOCATION- Accessibility to the general public. Type and distance
of road leading to and from the highway, secondary and make and width,
whether concreted, asphalted, gravel road.
2) SIZE Sufficient area to support a high-quality golf facility. Layout
and appearance good. Tees and greens large enough (140 to 160 acres is
considered an average size for a course). Acres to hectares x .40 x 160 =64
has.
3) Hectares to acres x 2.47
4) TURF - (Stratum of soil bound by grass and plant roots into a thick
mat) Types of grasses, condition of turf overall maintenance and the quality
of the playing surface.
5) SOIL This rating considers the types of soil on the golf course and
how well the soil can support a good playing surface. The soils ability to
drain ground water and support natural hazards.
6) DRAINAGE Establish area that drain well. Grass/trees grow well
due to proper drainage.
7) HAZARDS Enough hazards and bunkers make the course
distinctive and challenging to play. Bunkers are used to outline greens, direct
play or increase the strategic value of holes.
8) AMENITIES Given to trees, shrubs, planted areas, cart paths,
practice areas, lakes, ponds, views, etc.
9) WATERING SYSTEM Whether the watering system is manual,
semi-automatic, or fully automatic and whether the system uses quick-couple
sprinklers, pop-ups or a combination.
GOLF CHARACTERISTICS
Golf Characteristics
Location
Size (adequacy of greens, tees and length)
Turf
Soil
Drainage
Hazard (bunkers, lakes and ponds
Amenities (trees, shrubs, cart paths, etc.)
Watering System
Slope Rating
Total Weight
94
% of weight
25
20
10
10
10
10
5
5
5
100%

Example of Weighted Score Calculation

Rating
Location
Size
Turf
Soil
Drainage
Hazards
Amenities
Watering System
Slope
Total Score
8
7
6
7
8
3
10
Weight
25
20
10
10
10
10
5
5
5
100%
Weighted Score
25 x 0.70 =
17.5
20 x 0.90 =
18.0
10 x 0.80 =
8.0
10 x 0.70 =
7.0
10 x 0.60 =
6.0
10 x 0.70 =
7.0
5 x 0.80 =
4.0
5 x 0.30 =
1.5
5 x 1.00 =
5.0
75.0%
Establish Golf Value per hole

Example:
900,000.00 per hole

18 hole golf course
P 900,000 x 75% = 675,000 x 18 = P12,150,000.00
! For purposes of assessment, golf courses shall be classified on the
basis of a duly enacted ordinance.
A.6
Memorial Parks
The following are the requirements for the appraisal/assessment of

memorial parks:
(a) Memorial Park development plan, license to operate and license to
sell;
(b) Approval of the Memorial Park development plan by the Local
Sanggunian. Saleable area as identified in the Master List;
(c) List of saleable areas and sold plots as of the end of every year;
(d) The aggregate area for the pathways, open spaces which remained in
the name of the developer which are recorded in the permanent
assessment record; and
(e) Memorial Park the lots of which are still registered in the name of the
owner/developer shall still be assessed and declared in its name and
shall be classified as commercial. Lots already in the name of the
buyer and actually used as burial ground shall be likewise assessed
and classified as commercial and considered exempt.
95

THE PRIVATE BURIAL GROUND COMMONLY KNOWN AS A

MEMORIAL PARK SHALL BE CONSIDERED AS A COMMERCIAL
LAND AND A WASTING ASSET.
A.7
Reclassifying Land to Other Uses

The following are the procedures in reclassifying land to other uses:
(a) Land converted into other uses, e.g. agricultural to residential, residential to
commercial, made known to the assessor in writing by the owner shall be
inspected for confirmation of the actual condition/use of the property;
(b) A report of the actual condition of the property and the recommendation
thereof should be rendered either by the responsible personnel of the
Provincial Assessors Office or the Municipal Assessor not exceeding fifteen
(15) working days after inspection in accordance with the policy as may be
prescribed by the Provincial Assessor;
(c) Among others, the report may contain, tangible land improvement, e.g. land
leveling and compaction, construction of road networks, drainage and other
relevant land amenities;
(d) In all others cases, Local Finance Circular No. 3-92 dated September 11,
1992 and Local Finance Circular No. 1-98 dated December 15, 1998 shall be
controlling in reclassifying agricultural land to non-agricultural uses the
pertinent portions thereof is quoted hereunder: (Local Finance Circular No.
1-98 dated December 15, 1998 shall be controlling in reclassifying
agricultural land to non-agricultural uses, pertinent portions thereof is quoted
hereunder: x x x).
(e) Duly approved Zoning Ordinance.
B.
APPRAISAL AND ASSESSMENT OF BUILDINGS:
The appraisal and assessment of buildings shall be in accordance with the

approved SFMV and supported by the following:
(a)
(b)
(c)
Copy of the approved building permit, building plan, and/or certificate of

Completion or Certificate of Occupancy permit from local officials
concerned;
Notice of the date of inspection, if the owner/administrator is not around
during the discovery;
Report of inspection of the building/structure; and
96

(d)
Accomplished affidavit of ownership or Sworn Statement of the market

value of the property, in the absence of a building permit or Certificates
required under Item (a) above.
In case of two (2) storey building used both for residential and
commercial or industrial purposes, the same shall be classified and
valued in accordance with the Schedule of Basic Unit Construction Cost
and shall be assessed on the basis of the principal and predominant use of
the building.
Historical or vintage building the life span of which had surpassed the
estimated economic life shall be independently reassessed from the
ordinary course of the established procedures.
Bowling alleys shall be valued separately from the principal building but
its appraisal shall form part of the whole, except the machinery, which
shall be independently appraised and assessed.
B.1
Appraisal and Assessment of Buildings and Other Structures

A. For the appraisal of building and other structures, the Schedule of
Base Unit Construction Cost (SBUCC) refers to base unit cost per
square meter including additional items, to be determined by the
assessor should conform with the structural design, type and other
amenities described under Sec. 401 R.A. No. 1096 otherwise known
as the National Building Code of the Philippines.
Types of Construction. - For purposes of this Manual, all
buildings shall be classified or identified according to the following
types:
Type I Type I buildings shall be of wood construction. The

structural elements may be any of the materials permitted as follows:
Nipa Houses and similar structures will fall under this type:
Type II Type II buildings shall be of wood construction with
protective fire-resistant materials and one-hour fire-resistive
throughout: Except, that permanent non-bearing partitions may use
fire-retardant treated wood within the framing assembly.
Type III Type III buildings shall be of masonry and wood
construction. Structural elements may be any of the materials
permitted by this Code: Provided, that the building shall be one-hour
fire-resistive throughout. Exterior wall shall be of incombustible fireresistive construction.
97

STRONG MATERIALS:
A) First group wooden structural framings, flooring, walls and
G.I. roofing
B) First group wooden structural framings, flooring, walls on the
first floor, and tanguile walls on the second and G.I. roofing.
C) First group wooden posts, griders, girsts, window walls and
heads, apitong, floor joists and roof framing, tanguile floor
and sidings and G.I. roofing.
D) Third group wooden structural framings, floorings and
sidings, and G.I. roofing.
E) Same as D but structural members are sub-standard.
Type IV Type IV buildings shall be of steel, iron, concrete, or

masonry construction. Walls, ceiling, and permanent partitions shall be
of incombustible fire-resistive construction: Except, that permanent nonbearing partitions of one-hour fire-resistive construction may use fireretardant treated wood within the framing assembly.
MIXED CONCRETE:
A. Concrete columns, beams and walls but wooden floor
joists, flooring and roof framing and G.I. roofings; even if
walls are in CHB, kitchen and T&B are in reinforced
concrete slabs.
B. Concrete columns and beams but hollow blocks walls
and G.I. roofings
Type V Type V building shall be fire-resistive. The structural

elements shall be of steel, iron, concrete, or masonry construction.
Walls, ceiling, and permanent partitions shall be of incombustible fireresistive construction.
REINFORCED CONCRETE:
A) Structural steel and reinforced concrete columns, beams,
the same as I-B.
B) Columns, beams, walls, floors and roofs all reinforced
concrete.
C) Same as B but walls are hollow blocks reinforced
concrete or tiles roofings.
98

B. Extra Items as Component Parts of Buildings:

1. Carport
30% - 40% of Base Unit Value

plus additional for finishings
of materials used.
2. Mezzanine ..
60% of Base Unit Value plus

additional for finishings of
materials used.
3. Porch ...

of materials used.
4. Balcony ...

materials used.
5. Garage .

materials used.
6. Terrace:
Covered
Open ..

of materials used.
of materials used.
7. Roof Deck:
Penthouse ..

of materials used.
Covered .. 60% of Base Unit Value plus
materials used
Open .. 30% of Base Unit Value plus
materials used.
99

8. Basement:
Residential .. 100% of Base Unit Value plus
materials used.
High Rise-Bldg. plus 120% of Base Unit Value
of materials used.
9. Pavement.
Tennis Court .. 300 360 per sq. meter
Concrete .
10 cm. thick .. 150 per sq. meter
15 cm. thick . 210 per sq. meter
20 cm. Thick 270 per sq. meter
Asphalt ..
1 course 140 per sq. meter
10. Floor Finishes ...

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
j.
Marble Slabs . 400 - 500 per sq. meter

Marble Tiles . 280 320 per sq. meter
Crazy Cut Marble . 250
per sq. meter
Granolithic 220
per sq. meter
Narra . 240
per sq. meter
Yacal . 240
per sq. meter
Narra/Fancy
Wood Tiles 240
per sq. meter
Ordinary Wood
Tiles .. 240
per sq. meter
Vinyl Tiles 220
per sq. meter
Washout Pebbles .. 200
per sq. meter
Unglazed Tiles .. 220
per sq. meter
Granite . 3,500
per sq. meter
11. Special glass panels/sidings
100
4,000
per sq. meter

12. CHB Fence

With Steel Gate... 250-400 per sq.meter
With Finishing 400-550 per sq.meter
With Iron Grills .. 550-800 per sq.meter
NOTES:
1) All the Base Unit Values herein indicated are not controlling and the same may vary
depending upon the schedule of Unit Value enacted by the Sanggunian concerned. The
foregoing rule shall not apply to Parking Spaces or garage of high rise buildings which
shall be appraised and assessed on the basis of the base unit construction cost of the
building plus additional provisions depending on the type of finishings.
2) Percentages (%) may vary.
3) DEFINITION OF TERMS:
(a) Carport an open-sided roofed automobile shelter that is usually formed by
extension of the roof from the side of a building.
(b) Garage a building or compartment of a building used for housing an automotive
vehicle.
(c) Terrace a relatively level paved or planted area adjoining a building and in formal
settings often surrounded by a balustrade.
(d) Balcony a usually unroofed platform projecting from the wall of a building,
enclosed by a parapet or railing, and usually nesting on brackets or consoles.
(e) Porch a covered entrance to a building usually with a separate roof and often large
enough to serve as an outdoor seating or walking space
ILLUSTRATION :
One family single detached one-storey house with basic information
as follows:
Structural design
Bungalow
Type III
Foundation
Reinforced Concrete Roofing - G.I. Sheet
Dimension: (House core 6.00 meters x 10.00 meter)
Master Bedroom with
18.00 sq.m.
Toilet and Bath
8.00 sq.m
.One Bedroom
12.00 sq.m.
Toilet and Bath
6.00 sq.m.
Family Hall
16.00 sq.m.
101

COMPUTATION OF VALUE:
DESCRIPTION
AREA
Master Bedroom
18.00
One Bedroom
12.00
2 Toilets & Baths
14.00
Family Hall
16.00
2nd Floor Total
60.00sq. m.
Add: Market Value
Ground Floor
TOTAL MARKET VALUE
Assessment Level
ASSESSED VALUE
UNIT
VALUE
Php 4,000.00
Php 4,000.00
Php 4,000.00
Php 4,000.00
Percentage
Adjustment
+ 20%
+ 20%
+ 10%
+ 20%
ADJUSTMENT
MARKET
VALUE
Php 86,400.00
57,600.00
61,600.00
76,800.00
Php282,400.00
432,000.00
Php714,400.00
25%
Php178,600.00
NOTE :
For three or more storeys, the same procedures in valuation shall apply,
provided that when the materials and amenities differ including but not limited to
quality and design of fixtures, etc., appropriate adjustments either plus or minus
percentage on the basic SFMV have to be made.
C.
A duplex, apartment/row houses shall be valued per unit and the aggregate
appraisal shall be indicated as the value of whole, whether the structural
design, materials used differs or typical for proper identification, reference
and adjustment in case of segregation of the units.
ILLUSTRATION :
A Two-storey duplex with typical semi-concrete for ground floor, 1st floor
cement flooring with vinyl tiles, 2nd floor colored cement, G.I. roofing, etc.
Dimension: Unit A
Width
Length
Toilet & Bath
Open Patio
4.00 meters
8.00 meters
6.00 meters
6.00 meters
Type IV Building
Basic SFMV - (1st Flr.) Php5,800.00 per square meter
Basic SFMV - (2nd Flr.) Php4,500.00 per square meter
Add on:
- 5% on basic SFMV for vinyl tiles
102

COMPUTATION OF VALUE:
DESCRIPTION
AREA
UNIT VALUE
PERCENTAGE ADJUSTMENT
ADJUSTMENT
MARKET
VALUE
1st Floor
32.00
Php5,800.00
Toilet & Bath
6.00
Php 5,800.00
Open Patio
6.00
Php 2,000.00
1st Floor Market Value
+ 5%
Php194,880.00
34,800.00
12,000.00
Php241,680.00
Add:
2nd Floor
32.00
Php4,500.00
Market Value Unit A
Add: Market Value Unit B
TOTAL MARKET VALUE
Assessed Level
ASSESSED VALUE
Say
Php144,000.00
Php385,680.00
385,680.00
Php771,360.00
39%
Php231,408.00
Php231,410.00
ILLUSTRATION :
A building with three or more fix adjoining units, e.g. apartment, row houses
or town houses shall be valued similar with the valuation of a duplex. Differences in
SFMV that maybe attributed due to Type, structural design, quality of materials used
and other fixtures inside and outside the building.
Assume that in Illustration 15.1, the identical/replica units are four instead of
two, the valuation would be:
Unit A Market Value
Unit B Market Value
Unit C Market Value
Unit D Market Value
(or Php385,680.00 x 4 units) Market Value
Assessment Level
ASSESSED VALUE
B.2
-P
385,680.00
385,680.00
385,680.00
385,680.00
- Php2,742,720.00
40%
- Php1,097,088.00
Assessment of Buildings and Other Structures

(1) Buildings used exclusively for residential purposes shall be
classified and valued in accordance with the schedule of base unit
construction cost, and shall be assessed by applying the corresponding
assessment levels fixed by ordinances of the sangguniang panlalawigan,
103

panlungsod or the sangguniang bayan of a municipality within the

Metropolitan Manila Area.
(2) A building used both for residential and commercial or
industrial purposes shall be classified and valued in accordance with the
schedule of base unit construction cost and shall be assessed on the basis
of the principal and predominant use of the building.
(3)
Special properties (buildings and other improvements)

a.
Building and other improvements actually, directly and

exclusively used for hospital, cultural or scientific
purposes shall be classified and valued according to the
schedule of base unit construction cost, and shall be
assessed at 15% of their depreciated market values.
b. Buildings owned by local water districts and governmentowned or controlled corporations rendering essential
public services in the supply and distribution of water
and/or generation and transmission of electric power shall,
likewise be classified and valued in accordance with the
schedule of base unit construction cost, and shall be
assessed at 10% of their depreciated value.
(4)
Churches, parsonages, convents, mosques and buildings and

other improvements used actually, directly and exclusively for
religious, charitable or educational purposes shall be
classified and valued in accordance with the schedule of base
unit construction cost, if applicable, otherwise on the basis of
their replacement cost as of the year of appraisal, and shall be
assessed as residential on the basis of their depreciated values.
(5)
Buildings and other improvements owned by the Republic of

the Philippines or any of its political subdivisions shall be
classified, valued and assessed like similar buildings and
improvements in the locality.
If the buildings and
improvements are of a kind not covered by the schedule of
base unit construction cost, they shall be valued at their fair
market value at the time of appraisal and shall be assessed like
similar buildings and improvements in the locality.
104

B.3
Assessment of Multi-Storeys or High Rise Buildings

The following are the procedures in the appraisal and assessment
of Multi-Storeys or High Rise Buildings
(a)
Multi-storeys or High Rise buildings should be appraised in a

similar manner shown in the preceding illustration, provided,
however, that in case the building is built under R.A. 4726
(Condominium Act), each unit or separate interest and the
common areas shall be independently appraised and assessed.
ILLUSTRATION:
A 10 storeys Commercial building owned by a Corporation erected on a 1,000
square meter parcel of land.
Building Dimension: Width 20 meters
Length 30 meters
10-Storey Building
Basement Gross Area
600 square meters
Open Parking Area
400 square meters
Foundation
Reinforced Steel Concrete
Space for one elevator shafts 4.00 square meters
4.00 sq. meters x 4 elevators =
16.00 square meters
All Floors Reinforced Steel Concrete
Ground Floor Granite
Exterior Walls Reinforced Concrete w/ colored glass paneling
All Other amenities 1st Class
RECAPITULATION OF THE AREA & COMPUTATION OF VALUE:
Total Land Area
Building Ground Floor Area
Space for elevator shaft
DECRIPTION
AREA
Foundation
Basement
Ground Floor
2nd Floor
rd
3 to 10th Floor
600
584
584
584
1,000 square meters

600 square meters
16 square meters
UNIT
ADJUST
VALUE
-MENT
Php1,000
15,000
15,000
+ 2,000
15,000
+ 1,000
(replica of 2nd Floor)
NO. OF
UNITS
10
1
1
8
Add: parking Space 400 sq. m. @ Php5,000

MARKET VALUE
Assessment Level
ASSESSED VALUE
105
MARKET VALUE
Php6,000,000.00
8,760,000.00
9,928,000.00
9,344,000.00
74,752,000.00
Php108,784,000.00
2,000,000.00
Php110,784,000.00
80%
Php88,627,200.00

ILLUSTRATION:
Assume that the 10-storey building in the preceding illustration was
constructed under R.A. 4726, the Condominium Act Assume further that the ground
floor and 2nd floor were sold to a Corporation for its sole use, while the 3rd to 10th
floors are divided into ten (10) separate units, composing of 40.00 square meters
each. Common areas are provided from the ground floor up to 10th floor.
RECAPITULATION OF SEPARATE AND COMMON AREAS:
DESCRIPTION
SEPARATE UNIT
Ground Floor
4 Elevator shafts spaces
and alleys
Space for stairway
Alley to elevator
and Stairway
2nd Floor
and alleys
Space for stairway
Alley to elevator
and Stairway
566 square meters

16.000 square meters
6.00 square meters
12.00 square meters
566 square meters
6.00 square meters
12.00 square meters
TOTAL AREA
3RD Floor
and alleys
Space for stairway
Hallways, terrace, etc.
1,132 SQ. METERS

400 square meters
TOTAL AREA
400 SQ. METERS
DESIGNATED
FLOOR
3RD
4th
5th
6th
7th
8th
9th
10th
TOTAL
COMMON AREA
68.00 SQUARE METERS

6.00 square meters
166.00 square meter
188.00 SQUARE METERS
NO. OF UNITS
TOTAL AREA
SEPARATE UNIT
TOTAL COMMON
AREA
10
10
10
10
10
10
10
10
80
400 Square meters

400
400
400
400
400
400
400
3,200 square meters
188 square meters

188
188
188
188
188
188
188
1,504 square meters
106

NOTE:
Depending upon the enabling or master deed of the Condominium project, each
separate unit should be appraised independently, whether or not the Condominium
Certificate of Title is in the name of the corporation or individual person.
Each separate unit shall have the same Unit Base Value. Number of rooms, toilet
and bath and other internal amenities are important factors to consider for higher
valuation.
The common area in the building should be appraised and assessed in the name of
the Condominium Corporation or Association.
In case of indivisible portions of the Condominium building such as corridors,

lobby, stair etc. shall be considered as common areas or common elements and shall
be appraised and assessed as such.
Town house shall also be appraised and assessed in accordance with the abovementioned provisions on condominiums.
The capital equipment such as machinery, elevators, water pumps and tanks of the
condominium project shall be listed and assessed aggregately in the name of the
Condominium Corporation or Association.
Parking Spaces not sold to respective unit owners in the building shall be considered
as common areas, assessed and declared in the name of the developer-owner or
Condominium Corporation or Association of the condominium building for taxation
purposes.
B.4
Appraisal of Buildings and Other Structures Previously Valued and

Assessed
(a)
Building and other structures subject to reappraisal and

reassessment must be revalued in accordance with the current
Schedule of Base Unit Construction Cost (SBUCC).
(b)
The loss in value or depreciation due to physical, functional or

economic obsolescence must be considered in one application, or
a combination of two or all of the three methods depending upon
building condition.
(c)
Since depreciation is definite to occur in any man-made structure

due to use, degree of maintenance, changing economic conditions
and several obtaining factors, the rule on RCNLD must be
consistently applied every time a reappraisal is made.
107

ILLUSTRATION:
Physical Depreciation (Wear and Tear) Straight Line Method
Assume the building (house) in Illustration 16.1 was constructed in 1994.
Only minor repair made
Estimated Economic Life
25 years
New SBUCC for 2000
Php6,000.00 per sq. m.
COMPUTATION OF VALUE
DESCRIPTION
Two-Bedrooms
Living Room
Dining & Kitchen
Toilet & Bath
Open Terrace &
Carport
Total
Reproduction
Cost New
Less:
Depreciation
(6/25=24%)
Market Value (Rev.)
Assessment Level
AREA
(SQ. M.)
UNIT VALUE
18.00
16.00
17.00
9.00
Php6,000.00
6,000.00
6,000.00
6,000.00
30.00
3,000.00
PECENTAGE
ADJUSTMENT
+ 20%
+ 30%
+ 30%
+ 10%
ADJUSTED
MARKET
VALUE
Php29,600.00
124,8000.00
132,600.00
59,400.00
Php446,400.00
90,000.00
Php536,400.00
128,736.00
407,664.00
20%
81,532.00
Php81,530.00
ASSESSED VALUE
(d)
Loss in value if applied, due to functional obsolescence shall be

categorized and measured into curable or incurable deterioration.
Curable if the functional obsolescence can be remedied by the
introduction of improvements that will not affect the structural
base of the building otherwise it is incurable.
(e)
Loss in Value due to Economic obsolescence regarded as

incurable shall be measured by sales comparison or rent loss.
(f)
A Depreciation Table developed to rationalize the degree of

maintenance, e.g. Poor, Average or Excellent must be in
consonance with the model shown in Appendix ________.
108

B.5
1st 5yrs
2nd 5yrs
3rd 5yrs
4th 5yrs
AFTER
20 YRS
RESID
UAL
VALUE
Schedule of Depreciation:
I-A
I-B
I-C
II-A
II-B
II-C
3.0%
2.5%
2.5%
2.0%
2.0%
III-AB
4.0%
3.5%
3.0%
2.5%
2.0%
III-CD
4.0%
3.6%
3.2%
3.0%
2.5%
1.8%
1.4%
1.2%
1.0%
1.0%
2.0%
1.8%
1.5%
1.2%
1.0%
2.2%
2.0%
1.7%
1.3%
1.1%
2.4%
2.2%
2.0%
1.7%
1.4%
2.6%
2.3%
2.2%
2.0%
1.6%
40.0%
40.0%
37.0%
35.0%
33.0%
IV
5.0%
4.0%
3.4%
3.0%
3.0%
30.0%
28.0%
20.0%
15.0%
In the excess of the above rate of annual depreciation, bigger rate may be granted for
extra-ordinary causes, if properly presented and described as in the case of the following:
1)
2)
3)
4)
C.
Damage due to catastrophy (earthquake, fire, deluge)

Heavily damaged due to pest (termite, anay or pest)
Established defects of construction.
Obsolescence
APPRAISAL AND ASSESSMENT OF MACHINERY:

Appraisal and Assessment of new machinery installed and fully
operational as discovered by the assessor or his representative or reported by the
owner/administrator, shall be supported by the following:
(a) Certified list of machinery indicating the acquisition cost, as supported by
consular invoices, in case of imported machinery and plain
invoices/receipt, in case of locally manufactured machinery, date of
acquisition, date of actual operation, including freight, insurance,
brokerage, bank and other charges, handling and installation costs, etc.
including the model, serial number, quantity/pieces, horse
power/capacity and country of origin, if imported; or
(b) Information from the Bureau of Customs, Securities and Exchange
Commission, Banks and other agencies for reference in confirming the
value of the machinery; and
(e) Notice of the date of inspection, if the owner/administrator is not around
during the discovery;
(f) Report of inspection of the building/structure; and
109

(g) Accomplished affidavit of ownership or the Sworn Statement of the market

value of the property, in the absence of a building permit or Certificates
required under Item (a) above.
(1) The appraisal of machinery shall be based on its actual cost which
include the acquisition cost, freight and insurance charges, brokerage,
arrastre and handling, customs duties and taxes, transportation, handling
and installation charges, among others, to the site.
(2) To support the actual cost, the declared value or sworn statement from
the owner or responsible officer in case of a corporation, shall be secured
to form an integral part of the appraisal report.
(3) The imported brand new machinery, the market value should be based on
its acquisition cost; which cost shall be that with the actual cost to the
owner and when the same is not yet depreciated and appraised within the
year of its purchase, plus the cost of freight, insurance, bank and other
charges, brokerage, arrastre and handling, duties and taxes, plus cost of
inland transportation, handling and installation charges at the present site.
The cost in foreign currency shall be converted to peso cost on the basis
of foreign currency exchange rates fixed by the Bangko Sentral ng
Pilipinas (BSP).
By the expressed provision of the Code, the acquisition cost of
the machinery should be based on the actual cost to the owner when it
was acquired. Further, the cost in foreign currency should be converted
to average exchange rate then prevailing.
(4) In all other cases the cost in foreign currency of imported machinery
shall be converted to peso equivalent based on exchange rates fixed by
the BSP, at the time of acquisition, and applied a depreciated allowance
of not exceeding 5% per year.
FMV = AC x FERAC
WHERE:
AC = Acquisition Cost
FERAC = Foreign Exchange Rate at time of Acquisition
(5)
In case of doubt of the declared value of machinery, confirmation has

to be made by securing documents from Bureau of Customs (BoC),
Bureau of Internal Revenue (BIR), Securities and Exchange
Commission (SEC) and other agencies of the government.
110

ILLUSTRATION:
Assume that in 1999, several pieces of machinery worth US200,
000.00 was installed in a factory building. Freight and insurance charges
were US20,000.00. Peso expenses for brokerage, arrastre and handling,
customs duties, etc., amounted to PhP2,000,000.00
Appraisal could be:
US200,000,00@49.15
=
Php 9,830,000.00
US20,000.00@49.15
=
983,000.00
Brokerage, arrastre, etc.
=
2,000,000.00
Market Value
=
Php12,813,000.00
Assessment Level
=
80%
ASSESSED VALUE
=
Php10,250,000.00
NOTE:
Indicated figures are rough estimates.
The declared value of the owner, subject to confirmation by the assessor, is
controlling.
(h)
Reappraisal of machinery by RCNLD shall be based on the formula

established for the purpose.
FORMULA:
RCNLD=OC x FC2 / FC1 x REL / EL
Where:
RCNLD
OC
FC1
FC2
EL
REL
=
=
=
=
=
=
Reproduction/Replacement Cost New Less Depreciation

Original Cost (or Acquisition Cost)
Foreign Currency Exchange Rate Time of Acquisition
Foreign Currency Exchange Rate during Reassessment
Economic Life
Remaining Economic Life
ILLUSTRATION :
Assume that a machinery from U.S.A. was acquired, installed and in
operation in February 1995 at total original cost of converted
P10,000,000.00. Reappraisal was made in December 1999 to take effect in
2000.
Dollar Exchange Rate at the time of operation P25.0282 to 1.00 dollar
Dollar Exchange Rate at the time of appraisal P40.6232 to 1.00 dollar
Estimated Economic Life 30 years
111

RCNLD
=
=
=
say
Assessment Level
ASSESSED VALUE
SAY
10,000,000 x 40.6232 / 25.0282 x 26 / 30

10,000,00 x 1.6231 x .08666
P14,065,784.00
P14,065,780.00
80%
P11,252,627
P11,252,630.00
(5)
An annual rate of depreciation shall be applied to the machinery,

provided that the formula provided for in paragraph F hereof shall be
observed and provided further that major expenses to recondition the
same and extending its life span shall be capitalized and added to the
depreciated value.
(6)
Depreciation Allowance for Machinery The depreciation allowance

shall be made at a rate not exceeding five percent (5%) of its original cost
or its replacement or reproduction cost, as the case may be, for each of
use: Provided, however, that the remaining value for all kinds of
machinery shall be fixed at not less than twenty percent (20%) of such
original, replacement, or reproduction cost for so long as the machinery
is useful and in operation.
(i)
If the machinery has reached its maximum economic life, the 20% residual
value shall be applied against the last current Market Value determined during
the last general revision which shall be maintained for so long as the
machinery is serviceable and in operation.
(j)
Appraisal of Elevated Rail Track and Road shall be based on cost approach or
income approach whichever is applicable the total market value of which shall
be apportioned or pro-rated to the local government units they traverse.
(k)
Appraisal of Transmission Lines, Transmission Tower, Cell Sites and the likes
shall be assessed like all other machineries and taxes thereon paid in the local
government unit where they are constructed. Transmission lines including the
posts be assessed on the basis of its total value using the cost or income
approach and the total market value shall be apportioned or pro-rated to the
local government unit where these lines traverse.
(l)
Appraisal and assessment for submerged pipe lines for natural gas and water
shall be assessed on the basis of the cost or income approach, the total market
value thereof shall be apportioned or pro-rated to the local government unit
they traverse.
(m) Appraisal for Heavy Equipment being used and operated in Timberland area
and Mineral Land shall be assessed on the basis of the cost approach in the
local government unit where they operate. In cases where they operate in more
112

than one local government unit, the market value thereof shall be apportioned
or pro-rated among local government units.
(n)
Appraisal for standby generators, airconditioners, reservoir, dams, tailings

pond, pier, wharf. Standby generators and other equipment shall not be
assessed. Reservoir, dams, tailing ponds, pier and wharf shall be assessed on
the basis of the cost approach. Provided however, that the cost of the piling of
port must be given additional consideration.
SECTION 12. - REASSESSMENT DUE TO GENERAL REVISION.

Reassessment of real properties covered by general revision shall be strictly
made in accordance with the approved SFMV.
(a)
Individual property adjustments of SFMV should be consistently enforced;
(b)
Stripping of land beyond the established standard depth for a particular class
of property shall be adhered to;
(c)
For lands bounded by two parallel streets, the value of the last strip should
not be lower than the market value per square meter of the abutting street;
and
(d)
Application of adjustments based on factors not specified in the SFMV, such

as but not limited to the shape, topography and blighted status adversely
affecting the value of the property being assessed, should be applied;
(e)
In case of buildings, machinery and other structures, already covered by the

existing assessment, reproduction/Replacement Cost New Less Depreciation
(RCNLD) approach shall be applied.
(f)
All assessments or re-assessments made after the first (1st) day of January of
any year shall take effect on the first (1st) day of January of the succeeding
year: Provided, however, That the reassessment of real property due to its
partial or total destruction, or to a major change in its actual use, or to any
great sudden inflation or deflation of real property values, or to the gross
illegality of the assessment when made or any other abnormal cause, shall be
made within ninety (90) days from the date any such cause or causes
occurred, and shall take effect at the beginning of the quarter next following
the reassessment; Provided further, that real property declare for the first
time shall be assessed for the taxes for the period during which it would have
been liable but in no case for more than ten (10) years prior to the date of
initial assessment: Provided, however, That such taxes shall be computed on
the basis of the applicable schedule of values in force during the
corresponding period. If such taxes are paid on or before the end of the
quarter following the date the notice of assessment was received by the
113

owner or his representative, no interest for delinquency shall be imposed

thereon; otherwise, such taxes shall be subject to an interest at the rate of two
percent (2%) per month or a fraction thereof from the date of the receipt of
the assessment until such taxes are fully paid.
SECTION 13. ISSUANCE OF TAX DECLARATION ON TRANSFERRED REAL

PROPERTY
The following are the basic requirements for the issuance of tax declaration
of transferred real property:
A. For Untitled Property
(a) Copy of the Deed of Conveyance duly registered in the Registry of
Deeds;
(b) Copy of realty tax clearance or official receipt from the Local Treasurer;
(c) Copy of transfer tax receipt;
(d) Certificate of payment of appropriate BIR taxes;
(e) A sketch plan of the property preferably prepared by a Geodetic
Engineer; and
(f) A sworn statement of the market value of the property filed by the
transferee.
B.
For Titled Property:

(a) A duplicate copy or a certified copy of the Deed of conveyance duly
registered in the Registry of Deeds;
(b) A certified copy of the Transfer Certificate of Title;
(c) Copy of the realty tax clearance or official receipt issued by the local
treasurer;
(d) Copy of the Official receipt of Transfer Tax;
(e) Certificate of payment of appropriate BIR taxes; and
(f) A sworn statement of the market value of the property as far as
practicable.
C.
Requirements for the transfer of building, machinery and other structures.

114

(a) A certified copy of the Deed of conveyance.

(b) A certificate of realty tax payment or official receipt issued by the local
treasurer as well as the copy of the Official Receipt of Transfer Tax.
(c) Certificate of payment of appropriate BIR taxes.
SECTION 14. EXEMPTION FROM THE REAL PROPERTY TAX

The following are exempted from real property tax:
A. Constitutional provisions - Charitable institutions, churches and parsonages or
convents appurtenant thereto, mosques, and non-profit cemeteries, and all lands,
buildings and improvements actually, directly and exclusively used for religious,
charitable, or educational purposes shall be exempt from taxation.
B. Statutory provisions 1. Real property owned by the Republic of the Philippines or any of its political
subdivisions except when the beneficial use thereof has been granted, for
consideration or otherwise, to a taxable person.
The exemption shall cover properties owned by the Republic of the
Philippines and those of constitutionally declared political subdivisions such
as provinces, cities, municipalities and barangays which are owned in a
patrimonial or private character, the beneficial use of which has not been
granted, for consideration or otherwise, to a taxable person.
(a) Under this provision, real property owned by the Republic of the
Philppines, or any of its political subdivisions (Provinces, cities,
municipalities and barangays) shall be declared taxable in the
name of the grantor or grantee, refers to their patrimonial or
private properties under Article 421 and 423 of the Civil Code
and excludes real property for public use and for public service,
which are beyond the commerce of man; and to lands of public
domain granted, sold or leased under Com. Act No. 141 and the
Forestry Laws.
(b) "Private or patrimonial property of the state" is a property over
which the State has the same rights as private individuals in
relation to their own property, subject only to the administrative
laws and regulations in the exercise of such rights.
(c) Public lands may be declared as private property of the state as
soon as they are available for the alienation or disposition, such
115

alienation or disposition of public lands for agricultural,

residential, commercial, industrial and other similar purposes,
and for reservation for town sites and for public and quasi-public
uses.
(d) "Private property of provinces, cities and municipalities" are those
other than property for public use consisting of roads, streets, the
squares, public waters, promenades, and public works for public
service paid for provinces, cities and municipalities.
(e) Charitable institutions, churches, parsonages or convents
appurtenant thereto, mosques, nonprofit or religious cemeteries
and all lands, buildings, and improvements actually, directly, and
exclusively used for religious or charitable or educational
purposes.
1. "Charitable institutions" are those whose "principal aim is to
give of its material substance or time to benefit those who
are in need of such gift or expenditures in some other way
than simply by an improvement of morals or bringing to
them under the influence of the gospel."
2. "Church" is a building set apart for public worship; a place of
worship of any religion.
3. "Parsonages", as derived from American usage, must be read,
not in a technical or an ecclesiastical sense, but in the broad
meaning of a ministerial residence used in connection with
any place of worship of any denomination. It should
include the house appurtenant to a cathedral, to a
synagogue, or to a country-meeting house.
4. "Convent" includes not only the land actually occupied by the
building, but also the adjacent ground or vegetable garden
destined to the incidental use of the parish priest in the
ordinary life. It is also defined as "a monastery or nunnery.
"Nunnery, is defined as a house or building in which a body
or community of nun reside."
5. "Mosque" is an Islamic place of public religious worship.
6. The term "cemetery" for purposes of tax exemption, should
be construed as "an area or place where the dead are buried,
a place of burial place set apart either by municipal
authority or private enterprises for the interment of the dead,
etc., and this includes whatever property is necessary for use
of the cemetery such as paths, ornamentation and the land
116

within the cemetery limits acquired for but not yet actually
used for the burial of the dead.
7. Nonprofit cemetery" is one owned and operated by the
government, by religious corporations, by associations and
societies exclusively for its members and not for profit.
In the case of memorial park, which is a privately
owned cemetery, developed and operated for profit and
considering that lots/plots within that park although sold
and used as burial grounds, are still part of a privatelyowned cemetery operated for profit, thus, shall be classified
as commercial. However, exempt shall apply on plot(s)
which is owned by a single person, actually occupied by the
dead person.
8. Exclusively used" means the primary or inherent use and
does not preclude such incidental uses as are directly
connected with, essential to, and in furtherance of the
primary use. To illustrate, the primary use of a building
may be for the purpose of a charitable or religious or
educational institution, so that the exemption is not wholly
or partly lost because on occasion the building or part of it
is used for social purposes or let out to others for
entertainment.
9.
Religious purposes means a use of such property by a

religious society or body of persons as a stated place for
public worship, Sunday schools and religious instructions.
10. Seminary building used by the Roman Catholic Church, as

a place for public worship and the education for men for
priesthood, which mainly involves religious instructions, is
deemed considered used for religious purposes.
Moreover, Seminary is defined as a place or school
where persons are instructed in theology; such as the study
for priesthood.
D.
C.
All machineries and equipment that are actually, directly and exclusively
used by local water districts and government-owned or controlled
corporations engaged in the supply and distribution of water and/or
generation and transmission of electric power
All real property owned by duly registered cooperative as provided for under
R.A. 6938.
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However, Electric Cooperatives registered with the National

Electrification Administration (NEA) under P.D. No. 269, as amended, are
not covered by the herein exemption.
D.
Machinery and equipment used for pollution control and environmental

protection.
Except as provided herein, any exemption from payment of real
property tax previously granted to, or presently enjoyed by, all persons,
whether natural or juridical, including all government-owned or-controlled
corporations are hereby withdrawn upon the effectivity of the Code (R.A.
7160). (id.) Thus, real property owned by government-owned or-controlled
corporations are now taxable whether or not there is beneficial user.
Day exemption is determined - If property is taxable on January 1, it is

liable to taxation for the whole year although it afterwards becomes
exempt. In the same manner, if the property is exempt on January 1 it is
exempt for the whole year although it afterwards becomes taxable.
SECTION 15. RULES AND PROCEDURES BEFORE THE LOCAL BOARD OF

ASSESSMENT APPEALS (LBAA) AND CENTRAL BOARD OF
ASSESSEMENT APPEALS (CBAA)
LOCAL BOARDS OF ASSESSMENT APPEALS

Pursuant to the provisions of Section 230, Chapter 3, Title Two, Book II of Republic
Act No. 7160, otherwise known as the Local Government Code of 1991, the following rules
of procedure governing proceedings before the Local Boards of Assessment Appeals on
appeals by real property owners from the assessment collection of real property taxes by the
provincial or city assessors and treasurers, or municipal assessors and treasurers in the
Metropolitan Manila Area, are hereby adopted and promulgated.
RULE I
TITLE AND CONSTRUCTION
Section 1. Title These rules shall be known as the Rules of Procedure in the Local
Boards of Assessment Appeals.
The Local Board of Assessment Appeals shall mean any of the Boards of
Assessment Appeals in every province or city, including the municipalities comprising the
Metropolitan Manila Area. Whenever the term Local Board is used in any part of these
118

rules, it shall be held to mean the Provincial or City Board of Assessment Appeals or the
Municipal Board Assessment Appeals of any of the municipalities within the Metropolitan
Manila Area.
Section 2. Construction These rules shall be liberally construed in order to
promote their objectives and to assist the parties in obtaining just, expeditious and
inexpensive determination of every action relative to the assessment and collection of real
property taxes.
RULE II
LOCAL BOARDS OF ASSESSMENT APPEALS
Section 1. Composition The Local Board of the province or city, or municipality

within the Metropolitan Manila Area, shall be composed of the Registrar of Deeds, as
Chairman, the provincial, city or municipal prosecutor and the provincial, city or municipal
engineer, as Members, who shall serve as such in an ex officio capacity without additional
compensation. In the absence of a provincial, city or municipal engineer, the district
engineer shall serve as member of the Local Board. In the absence of regular appointee, the
officer performing the duties of the Register of Deeds, or of the provincial, city or municipal
prosecutors, or of the provincial, city or municipal engineer or district engineer, whether in
an acting capacity or the duly designated officer-in-charge, shall act as Chairman or
Member, respectively, of the said Local Board.
Section 3. Oath of Office The Chairman and Members of the Local Board shall
enter into the duties of their respective positions without need of appointment or special
designation in the manner prescribed under Section 317 (g) of the LGC.
Section 3. Submission of Oath of Office It shall be the duty of the Local Board
Chairman and Members, by its Board Secretary, to furnish the Central Board of Assessment
Appeals with a copy of their oaths of office and, whenever there is a change in the person
occupying a particular position in the Local Board, to update the Local Board Roster of
Membership on the file in the Central Board.
RULE III
ROLE OF THE CENTRAL BOARD
Section 1. Supervision of Local Boards The Central Board of Assessment

Appeals shall exercise supervision over all Local Boards.
119

Section 2. Submission of Monthly Reports The Local Board shall submit to the
Central Board a monthly report of accomplishment which shall state, among other, the
number of cases receive and disposed of, the assessed values involved, and all ocular
inspections conducted for evaluation, policy formulation, program coordination and
statistical purposes.
RULE IV
JURISDICTION OF LOCAL BOARDS
Section 1. Jurisdiction The Local Board shall have original jurisdiction to hear
and decide appeals of owners/administrators of real property from the action of the
Provincial or City Assessors, or the Municipal Assessors in the Metropolitan Manila Area,
in the assessment of their real properties, and from the action of the Provincial or City
Treasurers, or Municipal Treasurers in the Metropolitan Manila Area, regarding collection
of real property taxes, special levies, or other real property taxes under Title Two, Book II
of the R. A. No. 7160.
RULE V
APPEAL TO THE LOCAL BOARD
Section 1. Who May Appeal Any owner or administrator of real property, or any
person having legal interest therein, who is not satisfied with the action of the provincial,
city or municipal assessor in the assessment of his property may appeal to the Local Board
of Assessment Appeals of the province, city, or municipality with the Metropolitan Manila
Area, where the property is located. A real property taxpayer who is aggrieved by the
decision, action or inaction of the provincial, city or municipal treasurer over excessive
realty tax paid under protest, or on claim for refund of illegally or erroneously collected real
property tax, including special levies on real property, may likewise appeal to the Local
Board as provided in the Rule.
Section 2. Period of Appeal (a) The owner, administrator or person who is not
satisfied with the assessment of his property may, within sixty (60) days from the date of
receipt of the written notice of assessment, appeal to the Local Board concerned.
(b) Any real property taxpayer who is aggrieved by the decision, action or inaction of the
provincial or city treasurer, or municipal treasurer within the Metropolitan Manila Area,
on his written claim for refund or credit may appeal to the Local Board concerned as
follows:
1. If, within sixty (60) days from the date or receipt by the treasurer
concerned of the written claim for refund or credit for tax paid under
120

protest the treasurer concerned fails to make any decision thereon, the
appeals may be made within sixty (60) days from the date of receipt by
the treasurer concerned of the said written claim for refund or credit; or
2. If, within sixty (60) days from the date of receipt by treasurer concerned
of the written claim for refund or credit for tax paid under protest the
treasurer concerned denies the said claim, the appeal may be made
within sixty (60) days from the date of receipt by the taxpayer concerned
of the said treasurers decision denying the said claim.
Section 3. Parties in the Local Board. The real property owner or person
making the appeal shall be called the Petitioner and the Provincial or City Assessor or
Treasurer, or the Municipal Assessor or Treasurer within the Metropolitan Manila Area,
shall be called the Respondent.
Section 4. What may be appealed. Any action of the Provincial, City or
Municipal Assessor in the assessment of real property, and any action or inaction of the
Provincial or City Treasurer, or Municipal Treasurer, on taxpayers claim for refund of
taxes paid under protest, or on claims for reduction or adjustment of taxes paid or for tax
credits on illegally or erroneously collected realty taxes and such other real property taxes
or special levies under Title Two, Book II of Republic Act No. 7160, may be appealed to
the Local Board concerned.
Section 5. Requisites of Appeal The appeal shall be effected by filing, within
the reglementary period, with the Local Board concerned a petition under oath which shall
state the action of the provincial, city or municipal assessor or treasurer appealed from the
grounds relied upon, the arguments in support thereof, and the date the petitioner received
the written notice of assessment or revised assessment or tax declaration with a written
notice of assessment, and, in the case of an appeal from the action or inaction of the
treasurer, the date when the petitioner received the decision of the treasurer denying the
claim or protest, or the date the treasurer received the protest in writing showing the lapse
of the 60-day period and without any decision from the treasurer concerned having been
rendered. The appeal shall be filed in three (3) legible and typewritten copies, accompanied
by three (3) copies of the written protest and decision of the treasurer concerned, or such
other documents showing the lapse of the 60-day period without any decision from the
treasurer concerned, and such affidavits or other documents in support of the appeal.
For this purpose, the Secretary of the Local Board may assist the petitioner in filing
of the appeal for purposes of substantial compliance with the aforementioned requirements.
Section 6. Nature of Proceedings The proceedings before the Local Board shall
be conducted solely for the purpose of ascertaining the truth without necessarily adhering to
the technical rules applicable in judicial proceedings.
Section 7. Effect of Appeal on Collection of Taxes. An appeal shall not suspend
the collection of the corresponding realty taxes on the real property subject of the appeal as
assessed by the provincial, city or municipal assessor, without prejudice to subsequent
adjustment depending upon the outcome of the appeal. An appeal may be entertained but
121

the hearing thereof shall be deferred until the corresponding taxes due on the real property
subject of the appeal shall have been paid under protest or the petitioner shall have given a
surety bond, subject to the following conditions:
1. The amount of the bond must not be less than the total realty taxes and
penalties due as assessed by the assessor nor more than double said amount;
2. The bond must be accompanied by a certification from the Insurance
Commissioner (a) that the surety company is duly authorized to issue such
bond; (b) that the surety bond is approved by and registered with said
Commission; and (c) that the amount covered by the surety bond is within the
writing capacity of the surety company; and
3. The amount of the bond in excess of the surety companys writing capacity, if
any, must be covered by Reinsurance Binder, in which case, a certification to
this effect must likewise accompany the surety bond.
Section 8. Docket Upon receipt by the Local Board Secretary of the appeal, the
same shall be docketed and assigned a case number consecutively in the order or receipt.
Dokecting and other fees, which the Local Board may hereafter fix, shall be collected.
Thereafter, the parties shall place the case number on all other related pleadings which may
be filed.
Section 9. Quorum A majority of the members of the Local Board shall
constitute a quorum to decide any matter before said Board relative to its functions, and the
vote or concurrence of a majority of the members constituting a quorum shall be necessary
to promulgate a decision, order or resolution of the Local Board.
RULE VI
DECISION
Section 1. Period to decide The Local Board shall decide the appeal within one
hundred twenty (120) days from the date of receipt of such appeal. The Board, after
hearing, shall render its decision based on substantial evidence or such relevant evidence on
record as a reasonable mind might accept as adequate to support the conclusion.
Section 2. Service of Decision to Parties The Local Board Secretary shall
furnish the parties to a case each with a copy of the decision of the Local Board. Where the
parties are represented by counsel, service of the decision to partys counsel is deemed
proper service to the party.
Section 3. Revision of Assessment In the case the Provincial or City Assessor
concurs in the revision of the assessment, it shall be his duty to notify the petitioner of such
fact using the form prescribed for the purpose.
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RULE VII
POWER AND DUTIES OF LOCAL BOARDS
Section 1. Powers In the exercise of its appellate jurisdiction, the Local Board
shall have the power to summon witnesses, administer oaths, take despositions, and issue
subpoena and subpoena duces tecum and conduct ocular inspections of the real properties in
question.
The Local Board may likewise prescribe filing, docketing, and other fees at such
rates or amounts as it may be deem just, proper and reasonable, consistent with the
expenses, such as office supplies and services, that its local government unit may incur to
serve the needs of every petitioner or appellant.
Section 2. Duties - The Local Board shall conduct hearings on all appealed cases
and render decisions thereon with the periods prescribed by law. It shall likewise inform
the Central Board of any new matter or issue not provided for in these rules, and submit to
the latter such reports or information as the Central Board may require from time to time.
RULE VIII
APPEALS TO THE CENTRAL BOARD
Section 1. Period of Appeal; Where to Appeal; How to Appeal Taken Any

party aggrieved by the decision, order or resolution of the Local Board may appeal to the
Central Board within the period and in the manner prescribed under Rule IV of the Rules of
Procedure before the Central Board of Assessment Appeals.
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CENTRAL BOARD OF ASSESSMENT APPEALS (CBAA)
RULE I
TITLE AND CONSTRUCTION;
APPLICABILITY OF RULES OF COURT;
AND DEFINITION OF TERMS
Section 1. Title. These rules shall be known as the Rules of Procedure before the
Central Board of Assessment Appeals.
Section 2. Construction. These rules shall be liberally construed in order to
promote their objectives and to assist the parties in obtaining just, speedy and inexpensive
determination of every action relative to the real property assessment and collection of
realty tax pursuant to the Local Government Code and other related assessment laws.
Section 3. Suppletory Application of the Rules of Court. In the absence of any
applicable provision in these Rules, the pertinent provisions of the Revised Rules of Court
of the Philippines may be applied in a suppletory character and effect in all proceedings
before the Central Board of Assessment Appeals without strictly adhering to the technical
rules of evidence.
Section 4. Definition of Terms Whenever they appear in any part of these rules
and in decisions, orders, and resolutions, the term Central Board shall be held to mean the
Central Board of Assessment Appeals and the term Local Board shall be held to mean the
Boards of Assessment Appeals of every province or city, including the municipalities
within the Metropolitan Manila Area.
RULE II
CENTRAL BOARD OF ASSESSMENT APPEALS
Section 1. Composition. The Central Board shall be composed of a Chairman

and two (2) Members, all of whom are appointed by the President for fixed terms as
provided under the Local Government Code of 1991.
Section 2. Quorum. A majority of the members of the Central Board shall
constitute a quorum to decide any matter before it relative to its rule-making power and
adjudicatory functions, and the vote or concurrence of a majority of the members
constituting a quorum shall be necessary to promulgate a decision, resolution or order.
Section 3. Place of Office. The Central Board shall hold office at the EDPC
Building, Bangko Sentral ng Pilipinas Complex, Roxas Blvd., Manila.
124

Section 4. Conduct of Business. The Central Board may, on its own, conduct
hearings of any appealed cases on such date and at such time and place it may designate,
taking into consideration the interest of the parties concerned.
Section 5. Supervision over Local Boards. The Central Board shall have
supervision over the local boards and shall promulgate rules and regulations relative to their
proceedings.
RULE III
JURISDICTION OF THE CENTRAL BOARD
Section 1. Appellate Jurisdiction. The Central Board shall have exclusive

jurisdiction to hear and decide all appeals from the decisions, orders and resolutions of the
Local Boards involving contested assessments of real properties, claims for tax refund
and/or tax credits or overpayments of taxes.
RULE IV
APPEAL
Section 1. What may be appealed. All decisions, resolutions, and orders of

Local Boards in cases involving (1) contested assessments of real properties, (2) claims for
refund of taxes overpaid and claims for tax credits, and (3) protests against special levies
may be appealed to the Central Board of Assessment Appeals as prescribed herein.
Section 2. Who may appeal; when to appeal. Any party in a case before the
Local Board who feels aggrieved by the decision, resolution or order of the said Local
Board may, within thirty (30) days from and after receipt of the said decision, resolution or
order, appeal to the Central Board.
Section 3. How appeal taken. An appeal shall be taken by filing a written notice
of appeal, and the appeal itself, personally or by registered mail, with the Local Board
which rendered the decision, resolution or order appealed from, or directly with the Central
Board or with the latters field office in the area where the real property in question is
located, after serving a copy each of the notice of appeal and the appeal upon the adverse
party or the latters attorney. The appeal shall state clearly and distinctly the decision,
resolution or order appealed from, the date when appellant received a copy thereof, the
grounds relied upon , and the arguments in support thereof.
125

Section 4. Time to answer or comment. The appellee may, within ten (10) days
from and after receipt of the appeal, file his answer or comment thereto after service of a
copy of said answer/comment upon the appellant.
Section 5. Transmittal of Records and Appeal. Within ten (10) days from
receipt of the notice of appeal or from receipt of the notice from the Central Board to the
effect that an appeal has been filed, whichever comes first, the Local Board which rendered
the decision or order appealed from shall transmit to the Central Board the complete
original records of the case, together with transcripts of stenographic notes, if any. The
records, with pages duly numbered from the earliest document to the latest, shall be
accompanied by a certification to the effect that the same constitute the original and
complete records of the case involved.
Section 6. Docket and Docketimg Fee. Upon receipt of the appeal, the
Secretary of the Central Board shall docket and assign the same with a case number
consecutively in the order of receipt. Appeals coming from the Luzon area shall be
numbered L-___; those from Visayas area, V-____; and those from Mindanao area,
M-____. The parties shall place the case number so assigned on all subsequent pleadings
filed relative thereto.
No appeal before the Central Board shall be considered filed unless the
corresponding docketing fee, in legal tender or in postal money order made payable to the
Central Board, is paid. The docketing fee shall be based on the realty tax assessment
involved in the appeal: Provided, That, if the realty tax assessment involved cannot be
determined, the docketing fee shall be P500.00 per appeal, thus:
Tax Assessment Involved
Over
Not Over
P200,000.00
300,000.00
400,000.00
500,000.00
P200,000.00
300,000.00
400,000.00
500,000.00
Docket
Fee
Exempt
P100.00
150.00
300.00
500.00
Section 7. Effect of appeal on collection of taxes. An appeal shall not suspend

the collection of the corresponding realty taxes on the real property subject of the appeal as
assessed by the assessor concerned without prejudice to subsequent adjustment depending
upon the final outcome of the appeal.
If the corresponding realty taxes are not paid, the Central Board may nevertheless
entertain an appeal by requiring the appellant to file a bond to guarantee the payment of the
said taxes if found to be due, subject to the approval by the Central Board.
Section 8. Withdrawal of Appeal. The Appellant may withdraw his appeal at any
time before the resolution thereof by the Central Board by filing a written notice of
withdrawal with the Central Board which shall enter a memorandum thereof upon the
docket of the case. The parties thereto shall forthwith be advised in writing by the Central
126

Board of such withdrawal. No further proceedings shall be taken on the appeal, the
withdrawal having the same effect as that of dismissal of the appeal.
RULE V
DECISIONS, MOTIONS FOR RECONSIDERATION
Section 1. Period to decide; finality of decision. The Central Board shall decide
cases brought before it on appeal within twelve (12) months from the dates of receipt
thereof. A decision by the Central Board shall become final and executory fifteen (15) days
after receipt thereof by the appellant or appellee, as the case may be. If a petition for
reconsideration is filed on time, said decision, as may be modified by a resolution on such
petition, shall become final and executory fifteen (15) days after receipt by the appellant or
appellee, as the case may be, of a copy of said resolution.
Section 2. Decisions, orders and entry thereof. All decisions of the Central
Board determining the merits of the case brought before it on appeal shall be in writing and
signed by the members of said Board, stating clearly and distinctly the facts and the law on
which they are based, and filed with the Secretary of the Board.
As soon as it becomes final, the decision or order shall be entered in the Book of
Entries of Decisions with a notation on the dispositive portion of the decision or order. The
entry shall be signed by the Secretary of the Board that such decision or order has become
final and executory. Thereafter, the Secretary shall return the complete original records of
the case, together with a certified copy of the decision or order, to the Local Board
concerned.
Section 3. Petition for reconsideration. The Central Board shall, with like
jurisdiction, resolve petitions for reconsideration of its decisions, resolutions or orders. An
aggrieved party may file a motion for reconsideration within fifteen (15) days from the date
he receives the Central Boards decision, resolution or order sought to be reconsidered,
furnishing the adverse party with a copy of such motion: Provided, That only one petition
for reconsideration shall be entertained.
Section 4. Opposition. The adverse party may file his opposition to the motion
for reconsideration within ten (10) days from the date he receives a copy of the said motion.
Section 5. Action taken on motion for reconsideration. The motion for
reconsideration, as well as the opposition thereto, which shall embody all the arguments in
support thereof, shall be set by the Central Board Secretary for hearing on the next Motion
Day. Upon the expiration of the period set forth in the preceding section of this Rule
without any opposition having been filed, the motion for reconsideration shall be considered
submitted for resolution by the Central Board, unless the Board deems it necessary to hear
oral arguments, in which case, the Central Board shall issue the proper order.
RULE VI
127

PARTIES AND PLEADING
Section 1. Parties in the Central Board. The owner of the property involved, or
the person having legal interest therein, shall be called the Petitioner-Appellant or
Petitioner-Appellee, as the case may be. The Local Board concerned shall always be
called the Appellee and the Assessor or Treasurer shall be called the RespondentAppellant or Respondent-Appellee, as the case may be.
Section 2. Size of Stationery. Appeals and other pleadings shall be typewritten,
double-spaced, on plain bond paper, 8 1/2 inches in width and 13 inches in length.
Section 3. Citations. Citations shall be indented at least one inch from the left
and right margins and shall be typed single-spaced.
Section 4. Number of Copies. Six (6) copies, including the original copy of the
appeal shall be filed.
RULE VII
HEARING OFFICERS
Section 1. Hearing Officers. There shall be three Hearing Officers appointed by

the Central Board, one (1) each for Luzon, Visayas and Mindanao, who shall hold office in
Manila, Cebu City and Cagayan de Oro City, respectively. The Hearing Officers shall assist
the Central Board in its adjudicatory and rule-making functions in order that any matter
before it and all appeals involving contested assessments and collections of real property
taxes may be expeditiously decided.
Section 2. Duties and Functions of the Hearing Officers. The Hearing Officers
shall, upon direction of the Central Board, conduct hearings of all appeals before the Central
Board in their respective venues upon direction of the Central Board. They may receive
new evidence pertinent or relevant to issues raised and decided in the Local Board relative
to appeals in the Central Board. For this purpose, they are authorized to summon witnesses,
take depositions, issue subpoena and subpoena duces tecum, administer oaths on all matters
or proceedings related to the performance of their duties and, after due notice to parties
concerned, conduct ocular inspections of real properties subjects of the appeals whenever
such inspections are deemed necessary.
Section 3. Report of Findings and Recommendation. Within sixty (60) days
after the termination of the proceedings before them, the Hearing Officers shall render full
and accurate reports of their findings and recommendations to the Central Board. The
reports shall be accompanied by a proposed decisions of the appeals concerned.
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CHAPTER III
REAL PROPERTY ASSESSMENT RECORDS MANAGEMENT
INTRODUCTION:
This chapter shall govern the installation and maintenance of a real property
assessment records system in every local assessment jurisdiction for real property taxation
purposes; and shall cover the following subject matters:
(a) The records/forms prepared and maintained in an Assessors Office, whether
manual or automated;
(b) The procedures in, or manner of, preparing and maintaining these assessment
records/forms; and
(c) The unit in the assessors office, or the assessors office concerned as well as the
personnel responsible in preparing and maintaining the assessment
records/forms.
Objectives. - This aims to establish a uniform records system and ensure that a
systematic method of assessment is installed in every assessors office throughout
the country. More particularly, the objectives of this chapter are as follows:
(a) To systematize the existing real property records management system, which
would be the source of all information from manual to computerized records
system in the local assessors offices;
(b) To install and maintain a uniform real property assessment records system in the
offices of the provincial, city and municipal assessors.
(c) To provide the provincial, city or municipal treasurers with updated real property
assessment records of real properties within their respective jurisdictions from
which the latest records of real property tax collectibles can be generated.
SECTION 1. FORMS AND RECORDS

For the purpose of this chapter, the assessment forms/records shall be
grouped into two (2) categories, namely: The technical real property assessment
records which shall be prepared and maintained by the technical units or personnel
of an assessors office; and the non-technical real property assessment records
which shall be prepared and maintained by the administrative or non-technical units
or personnel of Assessors Office.
129

A.
The Technical Real Property Assessment Records The technical records

are the primary and principal real property assessment records/forms and
shall be the following:
(1) Real Property Field Appraisal and Assessment Sheet (FAAS) for Land;
(Attachment 1)
(2) Real property Field Appraisal and Assessment Sheet (FAAS) for
Buildings and other Structures; (Attachment 2)
(3) Real Property Field Appraisal and Assessment Sheet (FAAS) for
Machinery, (Attachment 3)
The FAAS shall be prepared for every real property unit as it is the
most important tool of an assessor. It contains all information needed in
appraising a real property unit including the sketch of the land or the floor
plan of the building. It enables an Assessor to keep constant account of all
real property units in a locality. The FAAS when approved shall be a source
for generating all other assessment records.
Title of the form:
Field Appraisal and Assessment Sheet (FAAS) for Land,
Field Appraisal and Assessment Sheet (FAAS) for Buildings
and other Structures
Field Appraisal and Assessment Sheet (FAAS) for Machinery
Purpose of the form:
To serve as the primary and principal record of all real
property information that are necessary for appropriate
assessment thereof.
Assessor Responsible in the preparation of the form:
- Unless delegated, the municipal assessor subject to the
approval of the Provincial Assessor. The print copy shall be
made after it has been approved.
City Assessors, and Municipal Assessors of the
municipalities in Metro Manila.
Number of copies to be prepared and Office where they are
filed:
Number of copies
Type of copy
Office where filed
1 copy
original
Municipal Assessors Office
130

1 copy
1 copy
1 copy
original
original
duplicate
for municipalities within

Metro Manila
City Assessors Office
Provincial Assessors Office
In municipalities outside
Metro Manila
FAAS shall be prepared each time there is an

assessment transaction.
Manner of filing FAAS and assigning ARPN.

- The FAAS shall be filed numerically according to PIN by
barangay.
- In LGUs that have been tax mapped or are undertaking the
RPTA project, the FAAS in a completely tax mapped
barangay shall be arranged according to the sequence of
their PIN. The pre-ARP numbers in the JAT are then
assigned to the FAAS as recorded. Subsequent FAAS are
numbered chronologically as they are recorded.
- In LGUs that have not been tax mapped, the FAAS are first
segregated by barangay, then they shall be arranged
alphabetically by surnames of the property owners, after
which they are assigned ARP numbers as recorded in the
JAT. Subsequent FAAS are numbered chronologically.
- A FAAS of a building which shall be filed next to the
FAAS of the land on which they are located regardless of
who owns the land, shall bear the PIN of that land with
appropriate suffix such as 1001 added to it.
- FAAS of machinery which shall be filed next to the FAAS
of the building where it is installed, shall bear the PIN of
the land with appropriate suffix such as 2001 added to it. In
cases where two or more buildings are constructed on the
land and machinery is installed in one of the building, the
FAAS of the machinery shall be filed next to the FAAS of
the building where it is installed.
Instructions on the manner of accomplishing FAAS
! Field Appraisal and Assessment Sheet (FAAS) for Land:
131

a) Transaction Code:
Indicate the code of the transaction
necessitating the assessment or reassessment of the property which
may be any of the following:
RANK
1
3
4
5
7
8
9
TRANSACTION
CODE
Subdivision
Consolidation
Discovery/New Declaration
Reassessment due to Physical
Obsolescence.
Reassessment due to a dispute
in
Assessed
Value
or
assessment to correct an error
in the assessment of property
due to wrong information,
erroneous documents, etc.
Reassessment
due
to
destruction of the Property
(Partial)
Transfer/Segregation
Reclassification
General Revision
SD
CS
DC
PC
DP
DT
TR
RC
GR
b) ARP/TD No.: Indicate the assessment of real property number

assigned to the property assessment.
c) TDN: Indicate the number of the TD which shall be fixed by the
Provincial, City, and Municipal Assessors.
d) PIN: Indicate the designated property index number (13 digits) of
the land, of the building and of the machineries and
equipment, as duly recorded in the TMCR.
e) OCT/TCT No., Survey No., Lot No. and Blk. No.: Indicate the
Original Certificate of Title (OCT) number or the Transfer
Certificate of Title number of the lot and the date of entry as
indicated in the title; the survey plan number such as Cad 774,
Psd 10011, its designated lot number (Lot 1104) and/or block
number (Blk. 2) as verified and/or as validated.
f) Owner: Indicate the name of the declared owner with his or her
middle name or initial as much as possible, his mailing address.
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g) TIN: Indicate the Taxpayer Identification Number of the declared

owner as verified.
h) Administrator/Beneficial User: Indicate the name of the
administrator(s) or beneficial user (s) including their respective
Taxpayer Identification Number, mailing addresses.
- The Administrator referred to is the duly authorized
representative of the owner to manage the subject property.
- The Beneficial User refers to that person who has been granted or
permitted to use the subject property and who is liable for the
payment of real property taxes under Section 234 of RA No.
7160.
i) Property Location: Indicate completely where property is located
the number and/or street name, name of the barangay,
municipality and province or city.
j) Property boundaries : Indicate in the appropriate space the
adjoining property which bound the said land, to wit:
-
If tax mapped, indicate the assessors lot number and the

corresponding survey lot number enclosed in parenthesis. In case
the said parcel of land is bounded by a parcel of land located in
another municipality, state the name of the municipality and/or
the survey lot number, if available.
If not tax mapped but surveyed, indicate the cadastral lot

numbers/survey lot number and/or the name of the owner of the
parcel of land bounding the subject parcel. In case the said parcel
of land is bounded by a parcel of land located in another
municipality, indicate the name of the municipality.
If surveyed, state the name of the owner as declared in the tax

declaration bounding the subject property.
In the case of street, river, etc. state the name of such street, road,
river, etc. bounding the subject property.
Sources of information:
-
The section map or base map, if tax mapped;

The survey plan; if not tax mapped but is surveyed,
The certificate of title; if titled,
k) Land Sketch: The drawing of the lot shall be indicated.

133

l) Land Appraisal: All the required information for appraisal shall

be reflected in the space provided, to wit:
Classification: Indicate the property classification
such as residential, agricultural, commercial,
industrial, mineral, special or timber/forest land
(RACIMST).
Sub-Classification: Indicate the sub-classification
code of the property adopted by the Assessors
Office as embodied in the schedule of Market
values, like, R-1 for 1st class residential, C-2 for 2nd
class commercial, UIR-1 for 1st class un-irrigated
riceland, F-1 for 1st class fruit land etc. The subclassification codes that are not embodied in the
Schedule of Market Values, such as UIR-1 for unirrigated riceland, etc., must be established by the
Provincial, City/Municipal Assessor of Metro
Manila Area concerned.
Area: Indicate the area of the land in hectares, in
the case of an agricultural land; or in sq.m., in the
case of an urban land.
Unit Value: Indicate the base unit value for the land
in accordance with the approved Schedule of Market
Values.
Base Market Value: Indicate the amount arrived at
which is the product of the area and the base unit
value.
m) Value Adjustment: The data shall be reflected as called for in each
column, to wit:
Base Market Value: Enter the total base market
value as arrived at in Land Appraisal, that is, to
the total value of Land.
Adjustment factors: State the adjustment factors
applied for the subject property as provided for in
the approved Schedule of Market Values such as the
following:
- Sunken or low area
- Accessibility
- Presence of or nearness to squatter or
depressed area
=Along/No road frontage
= Kms. To all weather road
134

= Kms. To market (pob) Heading center

Percent (%) Adjustment: Indicate the percent (rate)
of adjustment as fixed in the approved schedule of
market value, either to be added to or deducted
from the base market value. For instance, apply 10%
as the percent of adjustment factor for corner lot
influence.
Value adjustment: Indicate the amount equivalent to
the percent of applicable adjustment factor
multiplied by the base market value as provided for
in the Schedule of Market values. An example is
P400, which is the amount arrived at as the value
adjustment; that is the product of the base market
value of P4, 000 and 10% for corner influence.
Market value: Indicate the amount arrived at by
applying the value adjustments to the base market
value. In the above (Value Adjustment) example,
the 10% Value Adjustment of P400.00, is added to
P4, 000, the Base Market Value of the subject
property, and the result is the Market Value, which
is P 4,400, or P4,000 + P 400.
n) Property Assessment:
Actual Use: Indicate the actual use of the property
such as residential, commercial, industrial,
agricultural, mineral, special or timber/forest land.
Market value: Enter the market value (round to the
nearest ten) as determined under Market Value
Adjustment.
Assessment level: Indicate the assessment level,
which is consistent with the actual use of the
property as fixed in the LGU ordinance.
Assessed value: Indicate the value arrived at as the
product of the market value and the assessment
level.
Taxable: Mark the appropriate Taxable box by an
X, if the property is Taxable pursuant to the
provisions of existing law(s).
Exempt: Mark the appropriate Exempt box by an
X if the property is exempt from payment of real
property tax, pursuant to Sec. 234 of the Local
Government Code of 1991 or expressly granted
under other laws.
135

Effectivity of Assessment/Reassessment: State the

year or quarter of the year when the assessment shall
take effect as basis for the collection of taxes.
o) Assessed By/Recommending Approval: The Assessor or
personnel who appraises and assesses, and thereupon recommends
approval of the assessment, shall affix their signatures over the
printed name on the appropriate spaces provided.
p) Approved by: The approving officer which is the City Assessor,
Municipal Assessor of Metro Manila or the Provincial Assessor,
as the case may be, shall affix his/her signature over the printed
name. The Provincial Assessor however may delegate the
authority to approve assessments to Municipal Assessors under his
jurisdiction.
q) Memoranda: any of the causes that brought about the assessment
of real property may be written in the space provided, such as the
reason for the assessment or reassessment of the subject property
as in a general revision of assessments; or in the implementation
of an RPTA project; or in any other legal basis.
r) Reference & Posting Summary:
Indicate the appropriate
information in the space provided for, which may be needed for
cross referencing, to wit:
-
Record of Superseded Summary Assessment: Enter

the respective PIN, ARPN/TDN, page number of the
Assessment Roll, Tax Roll, Total Assessed value,
Previous Owner and Effectivity of Assessment as
indicated in the cancelled record.
Recording Personnel: The personnel who entered the

information affixes his/her initial and indicates the
date of entry.
(A) Tax Declaration of Real Property; (Attachment 4) and
Title of form: Tax Declaration of Real Property
Purpose of the form: To establish a permanent assessment record and

provides property owner with information relative to the assessment
of his property for purposes of real property tax.
136

Assessor responsible in preparing the form:
- Provincial Assessor but may be delegated to the Municipal Assessor

concerned, including the approval thereof.
- City Assessor, and Municipal Assessor of Metro Manila.
Number of copies to be prepared:
Number of copies
Type of copy
Office where filed

For Cities/Municipalities
Within Metro Manila Area:
2 copies
original
Duplicate
Mun. Assessors Office

Within Metro Manila
Property Owner
For Cities:
2 copies
original
duplicate

Property Owner
For Provinces:
3 copies
original
duplicate
Triplicate
Provl. Assessors Office

Property Owner
Numbering System Used: The Tax Declaration or TD/ARPN shall be

established by the Provincial/City Assessor and the Municipal
Assessor within the Metro Manila Area following the numbering
system as prescribed herein.
Frequency in preparing the Tax Declaration of Real Property
A tax declaration shall be prepared for every real property unit (RPU) in
the general revision of property assessment, and thereafter, as in the
following instances:
-
When the property is newly discovered and declared for the first
time.
When there is change in location.
When there is a change in area,
When there is a change in classification,
When there is a change in ownership, and
137

When there is a physical change in the property, or in any other

causes than the above instances.
Manner of Filing
The TD shall be filed by barangay following the sequence of
ARPN/TDN.
Instruction on the Manner of Accomplishing a Tax Declaration

All information that should be indicated in the Tax Declaration
shall be extracted from the respective FAAS covering the property
assessed.
a) No.: This refers to the number of the tax declaration that is, the
TDN/ARPN. In case of municipalities outside Metro Manila Area,
the Provincial Assessor shall have the sole authority to assign such
number.
b) Property Index no.: Indicate the PIN (Property Index No.) assigned to
the subject property.
c) Owner: Indicate the name of the owner of the property in the same
manner as in the FAAS, and mailing address.
d) Administrator/Beneficial User: Indicate the name of the
administrator, if any, as well as the mailing address.
e) Location of Property: Indicate the building number, if any, the name
of street, the name of barangay, municipality/district and province or
city.
f) OCT/TCT No.: Survey No.; and Block No.: Indicate, as far as
practicable, the Title number and the date of entry, the survey plan
no., lot no., and block number.
g) Boundaries: Indicate the appropriate description bounding the subject
property as appearing in the FAAS.
h) Kind of Property: Indicate the kind of real property such as land,
building or machinery.
i) Classification: Indicate the classification of the property (RACIMST)
as appearing in the FAAS.
j) Area: Indicate the area of the parcel of land or area of the building, as
the case may be, as appearing in the FAAS.
k) Market Value: Indicate the market value as appearing under Property
Assessment of the FAAS.
l) Actual Use: Indicate the actual use of the property (RACIMIST) as
appearing in the FAAS.
m) Assessment Level: Indicate the assessment level as appearing in the
FAAS.
n) Assessed Value: Indicate the assessed value as appearing in the
FAAS.
138

o) Total: Indicate the total market value and the total assessed value as
appearing in the FAAS.
p) Total Assessed Value: Indicate in words the amount of total assessed
value.
q) Taxable: Mark the appropriate Taxable box if the property is
taxable as indicated in the FAAS.
r) Exempt: Mark the appropriate Exempt box if the property is
exempt as indicated in the FAAS.
s) Effectivity of Assessment/Reassessment: Indicate the effectivity year
or quarter of the year, as appearing in the FAAS
t) Recommending Approval: The Municipal Assessor outside Metro
Manila Area; or the Assistant City Assessor, or the Assistant
Municipal Assessor within Metro Manila Area shall affix their
signature over their printed name, as the official recommending
approval of the assessment, or more particularly the tax declaration.
u) Approved By: The City Assessor, the Municipal Assessor in Metro
Manila or the Provincial Assessor shall approve and affix their
signature over their printed name. The Provincial Assessor, however,
may delegate such authority to the Municipal Assessor.
v) This declaration cancels TD No./ARP No.: Fill such space by
entering the TD No./ARP No. of the cancelled or superseded
assessment.
w) Memoranda: Enter the remarks as noted in the FAAS.
x) Note: Fill-in the blank spaces provided for as follows:
= Sangguniang _____: State the Panglunsod or Panlalawigan or Bayan
within Metro Manila Area that enacted the Property Tax Ordinance.
= Ordinance No. ________dated: State the number of the Real Property
Tax Ordinance and the date the ordinance was enacted by the
Sanggunian concerned.
(B) Tax Map Control Roll (TMRC) (Attachment 5)
Purpose of form:
a) It is the basic document in controlling the PIN.

b) It serves as the summary table of every parcel of land for each
section map.
c) It is also used as a reference in identifying related records of real
property.
Offices responsible in preparing and maintaining the TMCR:
-
The City Assessors Office

The Municipal Assessors Office in Metro Manila
139

The Provincial Assessors Office, but such responsibility may be

delegated to the Municipal thru a written order. However, both
offices shall each maintain TMCRs and tax maps.
Number of copies to be prepared

a) One copy of original and one printed copy of TMCR shall be
prepared in municipalities of Metro Manila and all cities.
b) In cases of Municipalities outside of Metro Manila, one copy of
original and two print copies shall be prepared, that is, one print
copy for the Provincial Assessors Office and one for the
Municipal Assessors Office.
Frequency in preparing the Tax Map Control Roll

The Tax Map Control Roll (Post) shall be prepared separately for
each section maps and for new/created section map. Extra sheets
may be allowed for listing as the need arises.
Manner of Filing:
a) TMCRs shall be filed with the corresponding tax maps by barangay.

b) The original copy of the TMCR shall be filed with the original tax
map (map master) in the
Office of the City Assessor
Office of the Municipal Assessor of Metro Manila
Office of the Provincial Assessor
Instruction on the manner of accomplishing the TMCR
a) Province/City: State the name of the province or city followed by
the index number enclosed in parenthesis;
b) Municipality/District: State the name of the municipality/district
followed by the index number enclosed in parenthesis.
c) Index No.: State the barangay index and section index numbers
such as 001-01.
d) Assessors Lot No.: State the assessors lot number which is the
3-digits number assigned to individual lot. It is used in
conjunction with the Province/City/Municipality within MMA,
Municipality/District, Barangay and Section Numbers, to
complete the Property Identification Numbering System.
e) Survey/Lot No.: Indicate the Survey Plan No., such as Cad-775 or
Psd-10011, and/or lot number including the block number of
survey plan as verified/validated.
140

f) Land: Fill in the appropriate columns which are headed from, left
to right, and described as follows:
- Title No.: State the number of certificate of title either original
or transfer on the first line for the initial entry. The other 4
lines are used for updating. If Title No. changed, simply enter
the new TCT No. I the next empty line.
- Area: State in hectare as 0.02970 for agricultural and
mineral/timber lands, and square meters as 2, 970 for
residential, commercial or industrial.
- Class Code: State the classification code such as R for
residential, A for Agricultural, etc. on the first line for the
initial entry. If reclassified, enter the new classification in the
next empty line.
g) Name of Owner: State the complete name of owner, surname first
followed by the given name, then middle initial on the first line
for the initial entry. If ownership changed on the same property,
enter the name of the new owner in the next empty line.
h) ARP No.: State the assigned Assessment of Real Property
Number of the subject property on the first line for the initial
entry.
i) TD No.: Enter the tax Declaration No. In line with the respective
ARPN.
j) Improvements:
- Buildings/Structures: State the number of building/structures
that are erected on the lot
- Machinery: Indicate b a x mark (x) if machinery has been
installed in the building.
- Others: State the kind of improvement other than building or
machinery found on the lot.
k) Remarks: State the explanatory remarks concerning any unusual
acts or circumstances, i.e., subdivided, duplicate, etc. pertaining
to the subject property.
B.
The Non-Technical Real Property Assessment Records. The nontechnical records are secondary real property assessment records/forms and
shall be the following:
(a) Assessment Roll (AR) (For Taxable Properties); (Attachment 7)
141


To serve as a permanent listing of all real property assessments made
with the corresponding tax due.
To provide the Treasurer the basis for updating and validating his real
property tax records.
Offices responsible in preparing the form in the initial records installation:

Assessment Roll:
Office of the Municipal Assessor in
Metro Manila
Office of the Provincial Assessor
The Provincial Assessor may delegate through a written order the

responsibility of preparing the AR/TR to the Municipal Assessor under his
jurisdiction.
Frequency in the preparation of the Assessment Roll:

p. Initially, the Roll shall be prepared arising from the general revision or
property assessment, and thereafter, a quarterly supplemental update
shall be prepared, furnishing the Treasurer concerned until the next
general revision, except in cases where the assessors records are
computerized and the same are directly and operationally connected to
the Provincial or City or Municipal Treasurer in the form of LAN or local
area networking.
Number of copies to be prepared and the office where they are filed
Number of Copies
Type of Copy
Office where filed

Municipalities within
Metro Manila:
2 copies
original
duplicate

Municipal Treasurers Office
Cities:
Original
Duplicate

City Treasurers Office
Municipalities outside of
Metro Manila:
142

4 copies
original
duplicate
triplicate
quadruplicate

Mun. Treasurers Office
Provl. Treasurers Office
Manner of Filing:
The Roll shall be filed by barangay together with the supplemental

update which shall be of the same form.
Instruction on the manner of Accomplishing the Assessment Roll/Tax Roll
All pertinent information to be entered in this record shall be extracted

from FAAS or Tax Declaration, if accomplished.
a) Real Property Assessment Roll (To be accomplished by the Assessor)
- Page No.: Indicate the page number of the sheet, which is the
barangay index code and follows by the sheet number. For
instance, barangay A has an Index No. 001 and consist of 4
sheets of assessment roll, the first sheet bears the page no. 001-1,
second sheet will bears the page no. 001-2 and so on.
- Under the ________ General Revision: Fill-in the blank space
provided by indicating the year, which is the time when the
general revision was undertaken and subsequent assessment made
using the same schedule of market values that caused the listing in
the Assessment Roll, i.e., 1992-93.
- Province/City: Enter the name of the Province or City followed by
the Index No.
- Municipality/District: Enter the name of the municipality/district
followed by the Index No.
- Barangay: Enter the name of the barangay and its Index No.
- Date Prepared: State the date of entry in the roll was made.
- ARP No.: Enter the assessment of real property (ARP) number
assigned to the property as noted in the FAAS.
- TD No.: Enter the tax declaration number.
- PIN: Enter only the Section Index No. and Assessors Lot number
assigned to the land including the four (4) digits suffixes in the
case of building or machinery.
- Lot/Block No.: Enter the Lot Number and Block No.
- Property Owner: Enter the name of the property owner with the
surname written first followed by the first/given name and the
middle initial.
- Address of Property Owner: Enter the full address of the property
owner.
143

- Kind: Enter the Kind Code as noted in the FAAS such as L for
land, B for building and M for machinery.
- Assessed value: Enter the assessed value as noted in the FAAS
under Property Assessment.
- Classification: Enter the Classification Code of the property, i.e. R
for residential, etc. (RACIMST).
- Assessed value: Enter the assessed value as noted in the FAAS
under Property Assessment.
- Previous ARPN: Enter the superseded ARPN as noted in the
Reference and Posting Summary.
- Previous TDN: Enter the superseded TDN as noted in the
Reference and Posting Summary.
- Effectivity: Enter the year or quarter in which the assessment take
effect as noted in the Property Assessment.
b) Tax Roll (to be accomplished by the Treasurer)
- Tax Rate: State the rate of the tax for the locality as fixed in the
ordinance.
- Tax Due: State the amount of tax to be collected (Assessed Value
times Tax Rate).
- NATB No.: Enter the number of Notice of Assessment and tax Bill
as assigned by the assessor concerned.
- Remarks: State the important and relevant remarks pertaining to
the property tax of the property.
- Data entered in RPTAR:
= Date: State the date of entry in the RPTAR.
= Clerks Initial: The clerk who posted the information in the
RPTAR shall affix his/her initial.
(c) Assessment Roll (AR) (For Exempt Properties); (Attachment 8)

-
It serves as a permanent listing of all real property exempt from real

property taxes.
To provide the Treasurer the basis for updating and validating his real
property tax records.
144

Offices responsible in preparing the form:

Assessment Roll:
Office of the Municipal Assessor in Metro
Manila
Office of the Provincial Assessor (Office
of the Municipal Assessor
While the Provincial Assessor is responsible in the preparation of the

assessment roll, he may delegate through a written order the responsibility of
preparing the same to the Municipal Assessor under his jurisdiction.
Frequency in the preparation of the Assessment/Tax Roll for Exempt

Properties.
q. The Roll shall be prepared as a result of a general revision, and
thereafter a quarterly supplemental update shall be prepared until the next
general revision of property assessments. Except in cases where the
assessors records are computerized and the same are directly and
operationally connected to the Provincial or City or Municipal Treasurer
in the form of LAN or local area networking.
Number of copies to be prepared and the office where they filed:

Number of Copies
Type of Copy
Office where filed

Municipalities within
Metro Manila:
1 copy
1 copy
original
duplicate

Municipal Treasurers Office
Cities:
1 copy
1 copy
Original
Duplicate

City Treasurers Office
Municipalities outside of
Metro Manila:
4 copy
1 copy
1 copy
1 copy
original
duplicate
triplicate
quadruplicate
145

Mun. Treasurers Office
Provl. Treasurers Office

Manner of Filing:
The Roll shall be filed by barangay together with the supplemental

update, which is of the same form.
Instruction on the Manner of Accomplishing the Assessment Roll for

Exempt Properties.
All pertinent information to be entered in this record shall be
extracted from the FAAS.
a) Real Property Assessment Roll (To be accomplished by the Assessor)
-
Page No.: State the page number of the roll.

Under the _________ General Revision: Fill-in the blank space
provided by indicating the year which is the time when the
general revision was undertaken and subsequent assessment made
using the same schedule of market value that cause the listing.
Province/City: Enter the name of the Province or City followed
by its Index No.
Municipality/District: Enter the name of the municipality or
district followed by its Index No.
Barangay: Enter the name of the barangay followed by its Index
No.
Date Prepared: State the date of entry in the roll was made.
ARP No.: Enter the assessment of real property number as noted
in the FAAS.
TD No.: Enter the Tax Declaration No. (TDN).
PIN: Enter only the Section Index and Assessors Lot Number of
the Property Identification Number assigned to the property as
noted in the FAAS.
(C) Ownership Record Card (ORC); (Attachment 6)
Title of form: Ownership Record Card (ORC)

1) To expedite notice for the collection of real property of a person in
a municipality, city or province.
2) It is the alternative basis for the annual preparation of the NATB.
3) To facilitate the determination of the total real property ownership
in a local government unit.
146

4) To serve as the alphabetical list of all real property owners for

purposes of verification, ownership and record retrieval.
Office responsible in preparing the record:

The Municipal Assessor shall prepare the ownership report card by

listing therein all properties of a person locate within the municipality
and to be submitted to the Provincial Assessor who shall consolidate and
make an alphabetical listing of all properties of a person provincewide,
except in municipalities in Metro Manila Area where the Municipal
Assessors shall be solely responsible for the preparation, consolidation
and alphabetical listing of all properties of a person in the municipality.
Number of copies prepared and office where copies are filed:
Number of copies
Type of copy
Office where copy is filed
1 copy
original
1 copy
1 copy
1 copy
original
original
original
Metro Manila Municipal

Assessors Office
Municipal Assessors
Office in municipalities
Outside of Metro Manila
Frequency in preparing the form:

-
An ownership record card shall be prepared for every property owner

in the municipality/city/province.
It shall be prepared when a new person declared/acquires a property

in a locality.
It shall be updated when that person acquired a property in that

locality by recording that property in his card.
Manner of Filing:
The Ownership Record Card shall be filed following the alphabetical

order of the surname of the property owner by municipality, city or
province.
147

Instruction on the manner of accomplishing the Ownership Record

Card.
All pertinent information to be entered in this record shall be

extracted from the FAAS or TD, if accomplished.
"
"
"
"
"
"
"
"
"
"
"
"
Name of Owner: Enter the name of the owner in the same manner
noted in the FAAS/TD.
TIN: Enter the Taxpayers Identification Number, that is, the TIN
of declared owner.
Address and Tel. No.: State the complete address of the property
owner for mailing purposes as well as his/her telephone number.
Date Prepared: State the date of entry.
Prov./City/Mun.: Enter the name of the Local Government Units
followed by its Index No. that prepared the card.
Date of Entry: State the date (Month/day/year) upon every entry.
Kind: State the kind code, as L for land, plant and trees; B for
building and M for machinery as indicated in the FAAS/TD.
Class Code: Enter the classification code of the property such as
R (residential), A (Agricultural), C (commercial), I (industrial), M
(Mineral), S (Special), and T (Timber) as noted in the FAAS/TD.
PIN: State the Barangay Index No., the Section Index No. and
Assessors lot No. of the subject property as a municipality/city
record but as a Provincial Record include the Municipal Index
No.
Title No.: Enter the Certificate Title No., original or transfer.
Lot/Block No.: Enter the lot No. and/or Block No., under the
survey plan.
ARPN/TDN:
Enter the Assessment of Real Property
Number/Tax Declaration Number as noted in the FAAS or in the
corresponding tax declaration in twelve digits as follows:
00
(Year)
"
"
"
"
00000
00000
(Municipality Code and
(Real Property Count)
Barangay Code or Index Nos.)
Location of Property: Enter the building number, if any, and

name of street and barangay, in the case of municipality/city
record but in the case of provincial record, include the
municipality.
Area: Enter the land area in a square meters or hectares as noted
in the FAAS. In the case of structure, enter the total floor area of
the buildings.
Market value: Enter the Market Value as noted in the FAAS/TD.
Assessed Value: Enter the assessed value as noted in the
FAAS/TD
148

" Market Value Indicate the total market value as noted

in the cancelled TD.
" Assessed Value Indicate the total assessed value as
noted in the cancelled TD.
o
Sub-Total State the computed total of sheet 1, this total

should be carried forward and stated in the line Balance
Forward of succeeding sheet.
(b) Notice of Assessment (NA) (Attachment 10)
To notify property owner of the assessment, and the current real property
taxes due on his property/properties.
Offices responsible for preparing the NA:

a) Notice of Assessment (PART A):
-
Provincial Assessor
City Assessor
Municipal Assessor of MMA
In the case of province, the Provincial Assessor and Treasurer may

delegate such responsibility to the Municipal Assessor and Treasurer.
Number of copies to be prepared:
Two copies shall be prepared by the assessor concerned, then the Assessor
shall file the duplicate and served the original to the declared owner.
Frequency in preparing:
It shall be prepared on assessments arising from general revision

conducted or assessment made for the first time or when existing assessment is
increased or decreased or when there is an update in the Tax Declaration arising
from change of declared owner or his address, effectivity of taxes or
correction/change of property location.
Manner of Filing:
NA shall be filed according to the sequence of the NA number by city or

municipality
149

Instruction on the Manner of Accomplishing the Notice of Assessment.

a) Property Owner: Enter the name of the declared property owner as
well as his/her latest mailing address as noted in the Assessment Roll
or ORC.
b) No. Indicate the assigned NA No.
c) Date: Indicate the date when prepared.
d) Fill-in the blank space by the year as accrual of the taxes.
e) Notice of Assessments: This is to be accomplished by the Assessor
concerned as extracted Assessment Roll/Tax Roll/ORC/FAAS/TD.
-
TDN/ARP No.: Enter the tax declaration number/ARP Number.

Property Index Number: Enter the PIN that is for tax mapped
area.
- Location: Enter the location of the property.
- Lot/Block No.: Enter the survey Lot No. and Block, if any.
- Classification: Enter the classification code (RACIMST).
- Market Value: Enter the market value.
- Assessed Value: Enter the assessed value.
- Total: State the total amount for market value and assessed value.
- Assessor: Affix the signature of the Provincial/City/Municipal
Assessor or his duly authorized representatives over printed
name.
f) Date delivered or mailed.
The detailed descriptions, the specifications, and the manner/procedures in
filling-up the above-enumerated records/forms are included hereto and are attached
immediately after each and every copy of the same.
SECTION 2. NUMBERING SYSTEM IN REAL PROPERTY ASSESSMENT

RECORDS MANAGEMENT
The numbering system in real property assessment records management shall
be: (a) the Property Index Numbering System; (b) the Assessment of Real
Property/Tax Declaration Numbering System; (c) the Notice of Assessment
Numbering System. However, LGUs with existing numbering system should
maintain the status quo until such time that they will conduct several revisions of
property assessments in order to minimize the cost of revising assessment records.
150

A. The Property Identification Numbering System. A unique Property

Identification Number or PIN is assigned to each parcel of land plotted on a tax
map and the same procedure as in the Tax Mapping Manual is hereby
maintained as follows:
(a) For Lands
00
0000
000
Prov./City/Mun. (MMA) Mun./City Dist. Barangay
000
00
Section Parcel No.
(b) For Buildings and Other Structures PIN of the building constructed on
a parcel of land, whether owned by the land owner or any person other
than the land owner, shall first bear the PIN of the land with a four-digit
number beginning with 1001, for the first building, added to it, followed
by 1002, 1003, etc, etc. for additional buildings constructed on the same
parcel of land.
In the case of condominium building, the PIN of the unit shall

first bear the PIN of the land with a letter A and 3-digit number
beginning with A001, for the unit of the first condominium
building, added to it, for by B001, etc., for the unit of another
condominium building constructed on the same parcel of land.
(c) For Machinery - The permanent PIN of machinery installed on a parcel

of land, whether owned by the land owner or any person other than the
landowner, shall, likewise, bear first the PIN of the land and a four-digit
number beginning with 200l, for the first machinery added to it, followed
by 2002, 2003, etc. for additional machinery installed within the same
parcel of land. One unit of machinery refers to machinery including its
accessories, Intended for the purpose such as industrial, sugar mill,
commercial escalators.
B. The Assessment of Real Property/Tax Declaration Numbering System - An
(ARPN) which is assigned to every assessment of real property unit (RPU), shall
be indicated in the space provided for in the forms/records prescribed under this
Regulations. The initial numbering shall be done everytime a general revision of
real property assessments is conducted, or in some instances, during the
implementation of a Real Property tax Administration (RPTA) Project.
(a)
The ARP/TD No. shall be as follows:

(1) For Provinces.
00
Mun.
0000
Barangay
0000
Assessment Count
The Municipality and the Barangay Index numbers The first two
(2) digit numbers, representing the index number of the
municipality; and the next three (3) digit number representing the
151

index number for barangays, are the same index numbers for
municipalities and barangays as may be determined based on the
procedures in assigning the index numbers the tax mapping
operation; and
The Assessment Count The last four (4) digit number represents
the assessment number assigned to every RPU starting with 0001
for the first RPU assessed and 0100 for the one hundred RPU
assessed and recorded per barangay, and so on.
(2) For Cities (outside Metro Manila Area)
0000
Barangay
00000
Assessment Count
The Barangay Index Number The first four (4) digit number
represents the index number of the barangay which as may be
determined based on the procedures is assigning barangay index
numbers for barangays in tax mapping operation; and
The Assessment Count The last five (5) digit number represents
the assessment number assigned to every RPU as in Item 4.3.1.5.1.
(3) For Cities and Municipalities within Metro Manila Area
AA or A
General Revision
Indicator
00
Mun.
0000
Barangay
00000
Assessment Count
The General Revision Indicator The number of times the LGU

has undertaken a general revision since the effectivity of the
Local Government Code of 1991, i.e., AA or A for the first one
conducted immediately after January 1, 1992; and BB or B for the
second general revision of real property assessments, and so on;
The Municipality/City District Index Numbers The two digits

represent the index number of the municipality or city district;
The Barangay Index Number This shall be the four (4)-digit

number of the barangay as in the foregoing Items for Provinces
and for Cities; and
The Assessment Count The last five (5) digit numbers shall
represent the similar assessment assigned to every RPU as in the
foregoing Items for Provinces and Cities.
152

(b) Installation of the ARP Numbering System The process of installing the ARP
Numbering System in a city or municipality is as follows:
1. For a Tax Mapped Municipality/City The Field Appraisal Assessment
Sheets (FAASs) together with the corresponding tax declarations (TDs)
as arranged by PIN; which are consequently filed by barangay.
Thereupon, the ARP Number, which corresponds to the number of line
of entry in the JAT are then assigned to the FAAS and TD so arranged
starting from the first line numbered 001.
2. For a Municipality/City Not Tax Mapped FAASs together with the
corresponding TDs are first segregated by barangay, which shall also be
so arranged as in a tax mapped municipality or city, that is, 001 for
Barangay Poblacion and the remaining thereof, are arranged in
alphabetical order. The FAASs and the corresponding TDs which are
filed by barangay, are then arranged in alphabetical order by owners
surname, and the ARP Numbers which correspond to the number of line
of entry in the JAT are assigned such FAAS and TD.
(c) The Notice of Assessment Numbering System The Notice of Assessment (NA)
also referred to as the Real Property Tax Order of Payment (RPTOP) are
numbered in such a way that no two RPTOPS issued shall bear identical
numbers. The manner of numbering RPTOPs is provided hereunder.
1.
For Municipalities Outside the Metropolitan Manila Area. The

numbering structure of the RPTOP for municipalities outside the MMA
shall be as follows:
00000
Prov/Mun.
______________
RPTOP Count
where: The first three (3) digits of the five (5)-digit number represent the
index number of the province; the next two (2) digits thereof
represent the index number of the municipality; and the succeeding
numbers represent the RPTOP count. The first RPTOP is assigned
the number 1 and the second is assigned the number 2, and so on.
2.
For all Cities and Municipalities within the Metropolitan Manila Area
The Numbering structure of the RPTOP for cities and municipalities
within the MMA shall be as follows:
000
City/Mun.
____________________
RPTOP Count
where: The first three (3)-digit number represents the index number of a city
or a municipality within the MMA; The succeeding numbers shall
153

represents the RPTOP count. The first RPTOP assigned the number
1 and the second is assigned the number 2, and so on.
The preparation of the Real Property Tax Order of Payment shall not be
required in assessors office in Cities or Municipalities which are already
computerized and the records of which are already accessible to the treasurers
office through LAN or local area networking.
SECTION 3. CODES USED IN ASSESSMENT RECORDS
The Codes which shall be used in the assessment records of the Assessors
Office are as follows:
A. Kind Code The Kind Code refers to the code which shall be used for the
different kinds of real properties, viz:
Kind of Property
Code
Land
Building and Other Structure
Machinery
L
B
M
B. Classification Code The Classification Code refers to the code which shall be
used for the different classifications of real property on the basis of: (1) the
approved schedule of market values for lands, buildings and other structures,
prepared in pursuance of the provisions of Section 2.1.1 of R.A. No. 7160; and
(2) the degree of utilization and/or the ordinance enacted by the sanggunians
concerned strictly in accordance with Section 20 of the said Act, in line with the
decision rendered by the Office of the President under OP Case No. 96-C-6424
dated March 29, 1996. The following classification codes shall be used:
Property Classification
Residential
Agricultural
Commercial
Industrial
Mineral
Timberland/Forest
Special:
Hospital
Cultural
Scientific
Local Water District
Corporation engaged in
Generation/distribution of electric
Power
154
Code
R
A
C
I
M
T
SH
SC
SS
SW
SG

C. Update or Transaction Code The Update or Transaction Code refers to the

code, which shall be used to identify the kind of transaction for which the
assessment or reassessment of real property is being made. The transaction, its
rank and the corresponding code shall be as follows:
Rank
Transaction Type
Code
Subdivision
SD
Consolidation
CS
Discovery/New Declaration
DC
Reassessment due to Physical Change in

the Property
PC
Reassessment due to a Dispute in Assessed DP

Value or reassessment to correct an error in
the assessment of the property due to
wrong information, erroneous documents, etc.
Reassessment due to Destruction of the

Property (Partial Total)
DT
Transfer/Segregation
TR
Reclassification
RC
General Revision of Assessments
GR
For assessment or reassessments involved two (2) or more transactions, the

highest rank among the transactions shall be indicated.
D. Use Code The Use Code refers to the code which shall be indicated to identify
the actual use of the property assessed and to determine the appropriate tax rate.
The following shall be the Use Code for real property assessment records
purposes:
Use
Code
Residential
Commercial
Industrial
Agricultural
Mineral
AR
AC
AI
AA
AM
155

Timberland/Forest
Hospital
Cultural
Scientific
Local Water District
Charitable
Religious
Recreational
Educational
Cemetery
Park
ATF
ASH
ASC
ASS
ASLWD
ACH
ARE
ARC
AED
ACT
ARK
Government:
National
Provincial
City
Municipality
Barangay
Corporation
ANG
APG
ACG
AMG
ABG
AGOCC
SECTION 4. REVISED ASSESSMENT FORM

For purposes of observing the economy measures enunciated by the
government, local governments may continue to use their unused forms until their
present supplies are fully exhausted; provided, however, that local assessment
offices that have recently completed their general revision work for CY 2001, shall
use the prescribed forms/records subsequent to the next general revision of real
property assessments and in the implementation of tax mapping and/or record
conversion projects.
SECTION 5. REPORTING
The report format marked as Attachment II contains information on the
number of real property units, the land area, taxable value by property classification,
exempt value by property classification, the market value, assessed value, the rate of
levy and tax collectible.
A. Frequency The report shall be prepared on quarterly.
B. The report shall be prepared and certified correct by the Assessor concerned as
indicated in the footnote of said form.
156

C. Submission of Reports
1. In the case of Municipalities, all reports must be submitted to the Provincial
Treasurer and to the Provincial Assessor, as the case maybe, on or before the
10th day of the month immediately following the quarter.
2. In the case of Cities, all reports shall be submitted to the BLGF Regional
Office copy furnished the BLGF Central Office on or before the 20th day of
the month immediately following the quarter reported on.
3. In the case of Provinces, all reports shall be submitted to the BLGF Regional
Office copy furnished the BLGF Central Office on or before the 20th day of
the month immediately following the quarter reported on. The Provincial
Treasurers or the Provincial Assessors shall submit a consolidated report of
different reports of the municipalities under their jurisdiction.
4. Cities and Municipalities within Metro Manila shall submit their reports on
or before the 30th day of the month following the quarter reported on, directly
to the BLGF Central Office, which shall prepare the required consolidated
reports.
5. The BLGF Regional Office shall submit a consolidated report of all the
LGUs within the region to the BLGF Central Office due on or before the 30th
day of the month immediately following the quarter reported on.
CHAPTER 4
Miscellaneous Provisions
SECTION 1. - PROVINCIAL/CITY APPRAISAL COMMITTEES
The right of eminent domain is usually understood to be the ultimate right of
the sovereign power to appropriate, not only to the public but the private property of
all citizens within the territorial jurisdiction for public purpose. It is a power
inherent in sovereignty. Hence, it is a power which need not be granted by any
fundamental law.
The delegated power of eminent domain of local government is strictly
speaking not a power of eminent but of inferior domain, - a share merely in eminent
domain. Hence, it is only as broad as the eminent authority would allow it to be.
Article III, Section 9 of the 1987 Constitution provides that Private Property
shall not be taken for public use without just compensation. There are two (2)
Constitutional limitations on the power of eminent domain: (1) the purpose of the
157

taking must be for public use, and (2) just compensation must be given to the private
owner.
An LGU may, through its Chief Executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, purpose, or welfare
of the poor and the landless, upon payment of just compensation.
The following shall among others, be considered as public use, purpose or
welfare:
a) Socialized housing;
b) Construction or extension or roads, streets, sidewalks, viaducts, bridges,
ferries, levees, wharves, or piers;
c) Construction or improvement of public buildings; maintained and operated
by the government for public use such as nurseries, health center, or
hospitals. Building of research, breeding, or dispersal centers for animals.
d) Establishment of parks, playgrounds, or plazas;
e) Establishment of public market places;
f) Construction of artesian wells or water supply systems;
g) Establishment of cemeteries or crematories;
h) Establishment of drainage systems, cesspools, or sewerage systems;
i) Construction of irrigation canals or dams;
j) Establishment of nurseries, health centers, or hospitals; and
k) Establishment of abattoirs.
The requisites for a valid exercise of the power of eminent domain by LGUs are:
a) An ordinance must be passed authorizing the local chief executive to
subject a certain property to a local governments units power of eminent
domain or to expropriation;
b) The power must be exercised for public use purpose or welfare for the
benefit of the poor and the landless;
c) There must be payment of just compensation; and
d) A valid and definite offer to buy the property must have been previously
made to the owner but the offer was not accepted. (Pimentel, 1993)
158

A. Definition of Terms
Public Use - means public usefulness, utility, or advantage, or what is
productive of general benefit, so that any appropriating of private
property by the State under its right of eminent domain, for purposes
of great advantage to the community, is a taking for public use.
Just Compensation described as the just and complete equivalent of the loss
which the owner of the thing expropriated has to suffer by reason of
the expropriation.
Market Value price agreed upon by the buyer and seller in the open market in
the usual and ordinary course of legal trade and competition; the price
and value of the article established or shown by sale, public or
private, in the ordinary way of business; the fair value of property as
between one who desires to purchase and one who desires to sell; the
current price; the general or ordinary price for which property may be
sold in that locality.
Consequential damages damages to other interests of the owner that can be
attributed to the expropriation.
Consequential benefits the increase in the value of the other interests of the
owner that can be attributed to the new use to which his former
property will be put by the expropriating authority.
Executive Order No. 132, dated 22 December 1937, which since then has
undergone several amendments, authorized the creation of Appraisal Committees
which are tasked generally to determine the real or market value of the property to
be acquired. Referral to the Appraisal Committee is necessary only if negotiations
with the owner fail.
The composition of Appraisal Committee is as follows:
B.
PROVINCIAL/CITY
amended):
Chairman
Member
Member
APPRAISAL
COMMITTEE
E.O.
132
(as
Provincial/City Assessor
Provincial/City Engineer
Provincial/City Treasurer
In Provinces where no position for Provincial Engineer exists, the

Public Works and Highways District Engineer shall sit as member of the
Committee, provided that if there are two or more Engineering Districts in
the Province, the Public Works and Highways District Engineer of the
Engineering District concerned shall sit as member of the Committee.
159

1) APPRAISAL COMMITTEE IN THE METROPOLITAN MANILA

AREA
City Appraisal Committee
Chairman
Member
Member
Member
Member
MMDA Chairman
City Assessor
City Treasurer
City Engineer
District Engineer of the DPWH
Municipal Appraisal Committee of MMA:

Chairman
Member
Member
Member
Member
Member
C.
MMDA Chairman
District Engineer of the DPWH
City Assessor of the District
Municipal Assessor
Municipal Engineer
Municipal Treasurer
Modes of Acquisition of Real Property:

1. Negotiated Sale
2.Expropriation
Acquisition Through Negotiated Sale As an initial step, the government

implementing agency/instrumentality concerned shall negotiate with the owner of
the land that is needed for the project for the purchase of said land, including
improvements thereon. In the determination of the purchase price to be paid, the
Department of Finance and the Provincial/City Assessors shall extend full assistance
and coordinate with the personnel of the government implementing agency
concerned in the valuation of current and fair market value declared by the owner or
administrator of the land, or such current market value as determined by the
assessor, which ever is lower, prior to the negotiation.
A. O. No. 50 was already amended by R. A. No. 8974 making the zonal
value the basis of the offer to acquire property for public purpose less the additional
10% increase in the existing zonal value. However, both A. O. 50 and R. A. No.
8974 do not provide for the basis and procedure for the acquisition of building and
improvements as well as the valuation of machineries and equipment to be affected
by the public project nor do they apply to the acquisition of properties by the Local
government for public purpose. It is therefore necessary that appraisal committee
be created in Local government units outside Metro Manila for the appraisal of
properties to be acquired for public purposes. It is therefore proper that building and
improvement must be appraised taking into consideration the following factors:
160

1. the rise of the building and improvement affected.

2. The materials used
3. The age or depreciation of the building plus other factors as economic
and legal obsolesce.
4. In the case of machinery refer to Chapter II of this manual for guidance.
Expropriation If the parties fail to agree to negotiation of the sale of the
land as provided in the preceding section, the government implementing
agency/instrumentality concerned shall have authority to immediately institute
expropriation proceedings through the Office of the Solicitor General, the
Government Corporate Counsel, or Provincial/City legal officer as the case may be.
The just compensation to be paid for the property to be acquired through
expropriation shall then be determined by the court in accordance with the
provisions of R. A. 8974. Courts shall give priority to the adjudication of cases on
expropriation and shall immediately issue the necessary writ of possession upon
deposit by the government implementing agency/ instrumentality, the amount
initially proposed just compensation provided under R. A. 8974; Provided, That the
period within which said writ of possession shall be issued shall in no case extend
beyond five (5) days from the date such deposit was made.
In order to facilitate the immediate judicial determination of just
compensation during the expropriation proceedings, the expropriating agency or its
duly authorized assessor in appraising the fair market value of the private property
intended to be expropriated must consider, among other well established factors, the
following relevant standards:
a)
b)
c)
d)
e)
The classification and use for which the property is suited;

The developmental costs for improving the land;
The value declared by the owners;
The current selling price of similar lands in the vicinity;
The reasonable disturbance compensation for the removal and/or
demolition of certain improvements on the land and for the value of
improvements thereon;
f) The size, shape or location, tax declaration and zonal valuation of the
land;
g) The price of the land as manifested in the ocular findings, oral as well as
documentary evidence presented; and
h) Such facts and events so as to enable the affected property owners to
have sufficient funds to acquire similarly-situated lands of approximate
areas as those required from them by the government, and thereby
rehabilitate themselves as early as possible.
161

D. Procedures to be followed in the Acquisition of Private Property for Public

Use (E. O. 132):
1. to secure complete data such as, deed of sale, declared under oath or
affirmation, certification by the municipal assessor to ascertain the real or
market value of the property to be acquired for public use and to ascertain
the purchase price of the property to be acquired or of other property
similarly conditioned in the same vicinity.
2. To hold public hearings and make such other investigation as may be
deemed necessary.
3. Upon the completion of the investigation which shall not be longer than 60
days after the receipt of notification by the chairman, submit a report to the
provincial board, city or municipal council or National government officials
concerned with recommendation as to whether the property should be
purchased at the prices determined upon by the Committee and approved by
the owner or condemnation proceedings instituted.
If the recommendation of the Appraisal Committee is not acceptable to the
government entity or to the property owners concerned, steps should be
taken to institute condemnation proceedings in accordance with Section 12,
Chapter 4, Book III of the Administrative Code of 1987 and the Rules of
Court.
4. To determine the consequential benefits that may be derived from the
construction of the proposed improvements and the damage that may be
caused by such improvements.
In arriving at a fair valuation as contemplated by law, if the estimated
damages exceed the estimated benefits, such excess should be added to the
market value. On the other hand, if the estimated benefits exceed the
probable damages, the difference shall be disregarded and the market price
considered the fair valuation.
5. In the case of all public improvements where it is necessary to acquire
private property through condemnation proceedings, construction work shall
not be started unless the following requirements concur.
a. bond to be filed by the government.
b. Authorized entry upon the property, and
c. Sufficient funds are obligated or set aside to cover a reasonable
estimate of the cost of such private property.
162

E. Activities Preparatory to Acquisition of Property (E.O. 1035)

l. Feasibility Studies
Feasibility studies shall be undertaken for all major projects, and such studies
shall in addition to the usual technical, economical operational aspects, include the
social, political, cultural and environmental impact of the project.
2. Information Campaign
Every agency, office and instrumentality of the government proposing to
implement a development project which require the acquisition of private real
property or right thereon shall first make consultations with the local government
officials, including the regional development councils- having jurisdiction over the
area where the project will be undertaken to elicit their support and assistance for the
smooth implementation of the project. The implementing agency/instrumentality
concerned with the assistance of the local government officials and representatives
of the Office of the Media Affairs shall conduct an extensive public information
campaign among the local inhabitants that will be affected by the project to acquaint
them with the objectives and benefits to be derived from the project and thus avoid
any resistance or objection to the acquisition of the property for the property.
3. Detailed Engineering Surveys
The implementing government agency/ instrumentality concerned shall, well
in advance, of the scheduled construction of the project, undertake detailed
engineering, including parcellary surveys to indicate the location and size of the sites
and to determine ownership of the land to be acquired, including the status of such
land ownership.
4. Project Cost/Funding
The estimated cost of a project shall have the following distinct components:
a. Pre-investment cost which shall include the cost of undertaking the
feasibility study and public information campaign;
b. Investment cost which shall include the cost of detailed engineering, cost
of the property to be acquired and cost of construction and construction
supervision.
The programming and budgeting of funds for the pre-investment and preconstruction phases, carried out in that order, shall be undertaken well in
advance of the scheduled commencement of construction. The
implementing agency/instrumentality concerned shall include in their
respective proposals for annual budgetary outlays provisions to finance
these preparatory activities and the Office of Budget and Management
163

(DBM) shall consider such proposals in the light of the foregoing. In the
case of the infrastructure ministries, the necessary outlays for each phase
of the pre-implementation activities shall be made a distinct component
of the annual infrastructure program which shall be released by the DBM
as scheduled.
SECTION 2. - ZONAL VALUATION
(by Atty. Raymund S. Gallardo, Asst. RDO, South Q. C.)
A. BACKGROUND
Zonal valuation for revenue tax purposes is a relatively new concept in the
Philippine taxation as the method was only made effective in January 1, 1988.
Before 1998, valuation of real properties for internal revenue taxes (capital
gains/income and transfer taxes) is based mainly on the valuation of real properties
as determined by the local government for its annual real property collection. But
because of the structural defect in the valuation procedure adopted by the local
government, wherein only a fraction of the market values of the properties (assessed
value) is used as a basis of valuation, the Philippine tax authorities, specially the
Bureau of Internal Revenue (BIR), the taxing arm of the national government, in its
desire to raise more revenues have turned its attention to the potentialities of a
correct land valuation as a major means of resources mobilization.
The direction taken for the valuation of properties by the national
government therefore is towards a less dependent state o the valuation undertaken by
the local government. As such, the valuation adopted by the national government
should be one that would at least approximate the current market value and one that
is procedurally uniform and simple. The attempt however, to adopt a valuation
method should be guided by the following principles:
(1)
(2)
(3)
(4)
Taxation should be uniform and equitable

Real property should be appraised at its current and fair market value
The appraisal of real property shall be uniform in each district or zone
Real property shall be classified for assessment purposes on the basis of
its actual use
(5) In no case shall the appraisal and assessment of real properties for
taxation purposes be let to any private person
(6) The goal of real property assessment shall be the equitable distribution of
the tax burden.
164

B. LEGAL BASISTOF ZONAL VALUATION

SECTION 6(E) of the National Internal Revenue Code (NIRC) of 1997
which became effective on January 1, 1998, provides the statutory authority for
zonal valuation. The law empowers the Commissioner of the Bureau of Internal
Revenue to:
(1) Divide the Philippines into different zones or areas
(2) (2) Determine the fair market value (FMV) of real properties in each
zones or areas.
This authority, however, carries with it the following constraints:
(a) that consultation should be made with competent appraisers both from the
public and private sectors; and
(b) for purposes of computing any internal revenue tax, the value of the
property shall be either the Fair Market Value as determined by the
Commissioner of Internal Revenue (in this instance the zonal value) or
the fair market value as shown in the schedule of values of the Provincial
and City Assessors which ever is higher.
The BIR is divided into branches or district throughout the country. Every
district has a definite territorial boundary or jurisdiction where it can exercise its
authority. These branches or districts wee then adopted as the different zones for
valuation of real properties. Since these zones are in different locations, valuation
therefore differs from one zone to the other.
C. OBJECTIVES OF ZONAL VALUATION

The main objectives therefore are the following:
(1) To establish a realistic value of real properties which can more or less
approximate the present fair market value of real properties as a basis for computing
any internal revenue tax.
(2) To have an efficient tax administration by minimizing the use of
discretion in the determination of the tax base on the part of the administrator on one
hand and the taxpayer on the other hand.
The philosophy behind tax zoning and in vesting special powers of authority
to revenue officers is to prevent the taxpayer from violating the laws rather than to
wait for the taxpayer to violate the law and prosecute them later when they can no
longer pay their taxes or when they can no longer be located at their place of
business. This approach therefore, is more of a preventive or persuasive approach
rather then punitive or remedial in nature.
165

D. ZONAL VALUATION PROCESS

The determination of zonal valuation is a three tiered approach. Basically,
these three states of zonal evaluation starts with the Sub-technical Committee
(STCRPV), to the Technical Committee (TCRPV) and then to the Executive
Committee (ECRPV) before its final approval by the Secretary of Finance through
the issuance of a Department Order.
These committees were created by the Ministry of Order Nos. 20-86 and 2186 and were recently amended by Department Orders No. 10-92 AND 11-92. The
Executive Committee is composed of the Commissioner of Internal Revenue as
Chairman, Assistant Commissioner, (National Assessment Office) and
representatives from the Bureau of Local Government Finance, National Tax
Research Center, and two competent appraisers from the private sector as members.
Tapped as Consultants are representatives of the Housing and Land use Regulatory
Board (HLURB), National Mapping and Research Information Authority
(NAMRIA), Land Registration Authority (LRA), and National Housing Authority
(NHA). It is in charge with the function of studying, analyzing and approving zonal
valuations passed upon by the Technical Committee and to decide on difficult
questions or protest raised in the lower level committees.
The Technical Committee (TCRPV), on the other hand, is composed of the
Assistant Commissioner of the Internal Revenue as chairman, and for its members
include the representatives from the Bureau of Local Government Finance, National
Tax Research Center, Bureau of Internal Revenue and two representatives from the
Association of Private Real Estate Appraisers, Brokers or Developers. It has for its
function the study and preparation of zonal schedules of fair market values on real
properties to be used as basis in the computation of any internal revenue tax.
Department Order No. 10-92 further gave this committee an additional authority to
create a Sub-technical Committee on Real Property Valuation (STCRPV).
This Sub-technical Committee is composed of the Revenue District Chief in
every branch or zones as chairman, and the Provincial/City/Municipal Assessors and
two competent appraisers/brokers representing the private sector, as members. This
committee will basically provide the initial work related to the establishment of
zonal values on real properties situated within the respective jurisdiction of the
Revenue District Chief.
(a) STEP-BY-STEP PROCEDURE
Revenue Memorandum Order No. 56-89 provides for the procedural
steps in establishing the zonal values from the Revenue District Branches until
its final approval by the Secretary of Finance. The following therefore are the
steps adopted in arriving at the zonal values of real properties.
166

1. Preparation of a preliminary schedule of recommended values on real

properties.
After determining the boundaries or zones and classification of the lands,
the Sub-technical Committee shall prepare the schedule of recommended values
by the zones/barangays or barrios (the smallest political unit in the Philippines)
under the following classifications:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Residential Regular .
Commercial Regular
Residential Condominium ..
Commercial Condominium
Agricultural .
Industrial .
General Purpose .
Government Purpose .
Area for Priority Development .
RR
CR
RC
CC
A
I
GP
GL
APD
The recommended values shall be based on acceptable methods of

appraisal, records of the most recent and actual sales/transfers/exchanges of
properties appearing on documents filed in public offices, private records of
banks, realtors or appraisers in the locality and records of the
Provincial/City/Municipal Assessors.
The recommended zonal values shall be made only after a
deliberation has been conducted with the appraisers and assessor of the
locality on the three recommended values of the land. The final
recommended value shall be the average of the two highest values.
2.
Values.
Submission/Review of the Schedule of Recommended Zonal
The schedule of recommended values of real properties duly signed

by the chairman of the Sub-technical Committee and members including the
maps and listings shall be submitted to the Technical Committee (TCRPV).
The Technical Committee shall then evaluate the submitted schedule
of recommended zonal values. In the absence of any objections of
comments, the same shall be finalized and submitted to the Executive
Committee for consideration, otherwise, said schedules shall be returned to
the Sub-technical Committee for necessary corrections or adjustments.
3. Public Hearing/Notice to the Public
A public hearing shall be held in (1) Metro Manila Areas; (2)
chartered cities and (3) provincial capitals with the following in attendance:
167

(a) Chairman or a representative of the Executive Committee; (b) Chairman

or representative of the Technical Committee; and (c) chairman and
members of the Sub-technical Committee. In places other than the abovementioned areas, a public hearing shall be held with the following in
attendance (a) Revenue Regional Director; (b) a representative of the
Technical Committee; and (c) chairman and members of the Sub-technical
Committee.
Notice of public hearing shall be given wide publicity in newspapers

of general circulation, radio and television. The Revenue District Office
concerned shall likewise disseminate the information by preparing notices to
be posted in the places where the public hearing will beheld together with the
letters of invitation to local officials association of realtors, civic
organization, etc.
In places where public hearing is not feasible, notice to the public
regarding the recommended zonal values shall instead be made through the
Municipal and Barangay (Village) Officials, by posting the said zonal values
in public places for thirty (30) days and/or weekly publications in local
newspapers of general circulation for three consecutive weeks. If no
comments or objections are received within the said period, the schedule of
values shall be finalized for final approval.
4. Implementation of Approved Zonal Values
As soon as the Executive Committee accepts the zonal values, a
Department Order on the implementation of the said zonal values shall be
prepared for approval and signature of the Secretary of Finance.
Upon issuance of the Department Order implementing the approved
schedule of zonal values on real properties, the latter shall be published in
the Official Gazette or any newspaper of general circulation. Said values
shall be take effect fifteen days from the date of circulation.
(b)
ZONAL VALUE COMPARED TO MARKET VALUE
The general standard for valuation of property for tax purposes is

market value. Market Value is defined as the price a willing buyer would
pay to a willing seller, assuming that neither is under any compulsion to buy
or sell. It can also be described as the most probable price, as of specified
date, in cash, or in terms equivalent to cash, or in other precisely revealed
terms, for which the specified property rights should sell after reasonable
exposure in a competitive market under all conditions requisite to fair sale,
with the buyer and seller each acting prudently, knowledgeable, and for self
interest, and assuming that neither is under undue duress.
168

As differentiated from market value, zonal value is a value set by the

government for internal tax purposes and is derived at by taking into
consideration factors such as location or zone of the property, its most recent
selling price, appraisal valuation or realtors and the assessed values as
prepared by the Provincial/City/Municipal Assessors. It can be said
therefore that zonal values are some sort of a compromise value derived at
from a diversified valuation procedure adopted or used by the different
members of the recommending body. When these values are approved by
the Secretary of Finance, then they become the statutory values of the
properties until their subsequent revision or amendment.
In the various zonal values approved by the Department of Finance, it
can be observed that the zonal values are relatively lower than the current
market value but is a more realistic valuation of properties for internal
revenue tax purpose than those values on the same properties adopted by the
local governments which is based on the assessed value.
E.
TAXES AFFECTED BY ZONAL VALUATION IN THE NATIONAL TAX

SYSTEM
Under the national tax system of the Philippines, the transfer, exchange or
disposition of properties with or without consideration for so long as an economic
benefit is derived thereat will give rise to a taxable activity.
Basically, there are four types of taxes that are being collected from this kind
of an activity, namely:
1. Capital Gains Tax
2. Estate Tax
3. Donors Tax
4. Documentary Stamp Tax
The tax treatment on sale or exchange of real properties is dependent on the
type of taxpayer (individual, estate or trust, or corporation) and on whether the
property is considered a capital or an ordinary asset.
For corporations, the actual gain on the sale or exchange of real property
irrespective of its classification or ordinary or capital asset is subject to ordinary
income tax.
For individuals, the actual gain on the sale or exchange of real properties
held as an ordinary asset is also subject to ordinary income. Ordinary assets as
defined in Sec. 39 (A) (1) of the NIRC refers to all those properties which are
primarily held for sale to customers in the ordinary course of trade or business. All
other real properties sold or exchanged by an individual not included in the
foregoing definition of ordinary assets are considered capital assets and as such,
subject to capital gains tax. Presently, the capital gains tax on real property transfers
169

is deemed an income tax that is separately assessed on each transaction and required
to paid on the date the return presented therefor is filed by the person liable thereto.
Capital gain is a presumed outcome of every real property transaction and the tax is
imposed regardless of whether the property owner incurred a loss or income in the
said transaction.
The tax on ordinary gain or capital gain is based on the gross selling price or
fair market value (zonal) of the property sold whichever is higher.
SECTION 3. - LAND USE PLANNING

Section 20, par. (c), of the Local Government Code provides that the local
government units shall, in conformity with exiting laws, continue to prepare their
respective comprehensive land use plans enacted through zoning ordinances which
shall be the primary and dominant bases for the future use of land resources:
Provided, that the requirements for food production, human settlement, and
industrial expansion shall be taken into consideration in the preparation of such
plans.
The above-quoted provision is being implemented under Art. 41 of the
Implementing Rules and Regulations (IRR) which provided that:
ART. 41. Comprehensive Land Use Plans. (a) Subject to
applicable laws, rules and regulations, cities and municipalities shall
continue to prepare their respective comprehensive land use plans
enacted through zoning ordinances.
The requirements for food
production, human settlement, ecological balance, and industrial
expansion shall be considered in the preparation of such plan.
(b) The comprehensive land use plan shall be the primary and
dominant basis for future use of local resources and for reclassification
of agricultural lands.
(c) The Sangguniang Panlalawigan shall review the
comprehensive land use plans and zoning ordinances of component
cities and municipalities and shall adopt comprehensive provincial land
use plan, primarily based on the revised plan.
A. Objectives:
-
to ensure the wise use of land and protection to critical environmental

areas
to intensify land productivity through modernization agricultural
technology
Protection, preservation and rehabilitation of critical environmental areas
and watershed
170

Utilization of land in accordance with its sustainability for a continuous

production
Increase productivity per unit area
Prohibit population pressure on protected land areas
Regulate conversion of prime agri-land for urban development
Municipal Planning and Development Office (MPDO) through Municipal

Technical Working Group, Municipal Land use Committee
-
responsible for the formulation, development and determination of the

land use plan consistent with the provincial and national land use policy
MPDO will submit the proposed land use plan for the review and approval
by the local Sanggunian
Provincial Planning and Development Office (PPDO)
-
to review/approve the land use plans submitted by the MPDO
Technical Working Group

MPDO Chairman
Chairman
Municipal Assessor
Member
Municipal Agricultural Officer
Member
Municipal Agrarian Reform Office (MARO) Member
Municipal Engineer
Member
Local Government Officer
Member
Municipal Assessor provide maps, classification, and actual use
City Planning and Development Office (CPDO)
Regional Land Use Committee
-
Reviews/Approves the land use plan submitted by the PPDO and CPDO
NEDA will be the lead agency
A. Definition of Terms (DAR
A. O. No. 07, S. 1997)
Agricultural Land refers to land devoted to agricultural activity and not

classified as mineral, forest, residential, commercial or industrial
land.
Comprehensive Land Use Plan refers to a document accompanied by maps
and similar illustrations which represent the community-desired
pattern of population distribution and a proposal for the future
allocation of land to the various land-using activities. It identifies the
allocation, character and extent of the areas land resources to be used
171

for different purposes and includes the process and the criteria
employed in the determination of the land use.
Land Use refers to the manner of utilization of land, including its allocation,
development and management.
Land Use Conversion refers to the act or process of changing the current use
of a piece of agricultural land into some other use as approved by
DAR.
Reclassification of Agricultural Lands refers to the act of specifying how
agricultural lands shall be utilized for non-agricultural uses such as
residential, commercial, as embodied in the land use plan, subject to
the requirements and procedure for land use conversion. It also
includes the reversion of non-agricultural lands to agricultural use.
National Integrated Protected Areas Systems (NIPAS) - is the classification
and administration of all designated protected areas to maintain
essential ecological processes and life-support system, to preserve
genetic diversity, to ensure sustainable use of resources of forest
therein, and to maintain their natural condition to the extent possible.
Environmental Critical Areas refers to areas declared by laws as:
1) areas for natural parks, watershed reserves, wildlife preserves, and
sanctuaries;
2) areas set aside as aesthetic potential tourist spots;
3) areas which constitute the habitat for any endangered or threatened
species of indigenous Philippine wildlife (flora and fauna);
4) areas of unique historic, archaeologic, or scientific interests;
5) areas which are traditionally occupied by cultural communities and
tribes;
6) areas with critical slopes;
7) areas frequently visited and/or hard hit by natural calamities (geologic
hazards, floods, typhoons and volcanic activities);
8) areas classified as prime agricultural lands;
9) recharge areas of aquifers;
10) water bodies;
11) mangrove areas;
12) coral reefs;
13) mossy and virgin forests;
14) river bank; and
15) swamp forests and marshlands
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Socialized Housing refers to housing programs and projects covering houses

and lots or homelots only undertaken by the government, the private
sector for the underprivileged and homeless citizens which shall
include sites and service developments, long-term financing,
liberalized terms on interests payments, and such other benefits in
accordance with R.A. 7279.
Special Economic Zones refers to selected areas with highly developed or
which have the potential to be developed into agro-industrial,
industrial, tourist/recreational, commercial, banking, investment and
financial centers. An ecozone may contain any or all of the
following: industrial estates, export processing zones, free trade
zones, and tourist recreational centers.
Tourism Development Areas refers to specific sites for tourism development
located in areas identified as priorities in the national and regional
tourism master plans, as well as those designated through legislation
and executive issuances as tourist zones which can be developed into
tourism estates or integrated resort, leisure and recreation complexes,
and other tourism-related facilities.
Watershed refers to a catchment area or drainage basin from which the waters
of a stream or stream system are drawn.
Zoning is the delineation/division of a city/municipality into functional zones
where only specific land uses are allowed. It directs and regulates the
use of all lands in the community in accordance with an approved or
adopted land use plan for the city/municipality. It prescribes setback
provisions, minimum lot sizes, building heights and bulk.
Zoning Ordinance refers to a local legislation approving the development
control/zoning plan and providing for the regulations and other
conditions, on the uses of land including the limitation on the
infrastructures that may be placed thereon within the territorial
jurisdiction of a city or municipality.
B. Conversion of Agricultural Lands to Non-Agricultural Uses
The Department of Agrarian Reforms (DAR) is mandated to approve or
disapprove application for conversion, restructuring or readjustment of agricultural
lands into non-agricultural uses pursuant to Section 4 (j) of E.O. No. 129-A, series
of 1987. It is vested with the exclusive authority to approve or disapprove
applications for conversion of agricultural lands for residential, commercial,
industrial, and other land uses. Action on application for land use conversion on
individual landholding shall remain as the responsibility of the DAR, which shall
utilize as its primary reference, documents on the comprehensive land use plans and
accompanying ordinances passed upon and approved by the local government units
173

concerned, together with the National Land Use Policy pursuant to R. A. No. 6657
and E.O. No. 129-A.
The following may apply for conversion:
1. Owners of private agricultural lands or other persons duly authorized by
the landowners.
2. Farmer-beneficiaries of the Agrarian Reform Program after the lapse of
five (5) years from award, reckoned from the date of registration of their
landholdings, and who have fully paid their obligations and are qualified
under A. O. No. 07, Series of 1997 issued by DAR, or persons duly
authorized by them.
3. Government agencies, including government-owned or controlled
corporations.
This shall cover all private agricultural lands as defined herein regardless of
tenurial arrangement and commodity produced. It shall also include all untitled
agricultural lands and agricultural lands reclassified by LGUs into non-agricultural uses
after June 15, 1988, pursuant to M. C. No. 54, Series of 1993 of the Office of the
President and those proposed to be used for livestock, poultry and swine-raising.
* The following criteria were adopted as bases for the approval of
applications for conversion:
# Agricultural lands classified or zonified for non-agricultural uses by LGUs
and approved by the HLURB before June 15, 1988 shall be governed by
DAR Administrative Order No. 6, Series of 1994.
# Conversion may be allowed if at the time of the application, the lands are
reclassified as commercial, industrial, residential or other non-agricultural in
the new or revised town plans promulgated by the local government unit and
approved by the HLURB or by the Sangguniang Panlalawigan (SP) after
June 15, 1988 in accordance with Section 20 of R. A. 7160, as implemented
by M. C. No. 54, and E. O. No. 72, Series of 1993 of the Office of the
President.
# If the city/municipality does not have a comprehensive development /land
use plan and zoning ordinance duly approved by the HLURB/SP but the
dominant use of the area surrounding the land subject of the application for
conversion is no longer agricultural or if the proposed use is similar to, or
compatible with the dominant use of the surrounding areas as determined by
the DAR, conversion may be granted.
C. The following areas shall not be subject to or non-negotiable for conversion:
174

"
Protected areas designated under the National Integrated Protected Areas

(NIPAS), including watershed and recharged areas of aquifers, as determined by
the Department of Environment and Natural Resources (DENR, pursuant to R.A.
7586 (1992).
"
All irrigated lands, as delineated by the DA and/or the National Irrigation

Authority (NIA) under the Network of Protected Areas for Agriculture where
water is available to support rice and other crop production, and all irrigated
lands where water is not available for rice and other crop production but are
within areas programmed for irrigation facility rehabilitation by the DA and the
NIA, pursuant to Presidential Administrative Order No. 20 (1992):
For this purpose, the Network of Protected Areas for Agriculture (as of
1991), as determined by the DA and/or NIA shall serve as guide in determining
non-negotiable areas.
All irrigable lands already covered by irrigation project with firm funding
commitments, as delineated by the DA and/or NIA; and
All agricultural lands with irrigation facilities operated by private organization.
In all cases, applicants for conversion involving lands protected from and nonnegotiable for conversion shall not be given due course.
"
"
"
"
D. The following areas shall be classified as highly restricted from conversion:

# Lands classified as Highly Restricted from Conversion in the Network of
Protected Areas for Agriculture as delineated by the DA, as follows:
-
Irrigable lands without irrigation project with firm funding commitments;
Agro-industrial croplands, or lands presently planted to industrial crops that

support the economic viability of existing agricultural infrastructure and
agro-based enterprises; and
Highlands, or areas located in elevations of 500 meters or above and have the
potential for growing semi-temperate and usually high value crops.
# Lands issued a Notice of Acquisition/Valuation under the agrarian reform

program or subject of a perfected agreement between the landowner and the
beneficiaries under the Voluntary Land Transfer (VLT) or Direct Payment
Scheme (DPS) under CARP; and
# Areas identified as environmentally critical as determined by the DENR,
pursuant to P.D. 1586 (1978) and is implementing rules and regulations.
Lands falling under this classification may only be converted upon
compliance with existing laws and submission of the following:
-
Social Benefit-Cost Analysis approved by the DA; and
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Environmental Impact Assessment (EIA) and/or Environmental

Clearance Certificate (ECC) for lands falling under 4 above.
SECTION 4. REAL PROPERTY TAX ADMINISTRATION (RPTA) PROJECT

RPTA is a country-wide program administered by the Department of Finance
through the Bureau of Local Government Finance (BLGF-DOF) in cooperation with the
USAID, World Bank and all the local government units (LGUs). It is a program
involved in the upgrading of assessment services by updating of assessment techniques,
procedures and practices.
A. Objectives of the RPTA
RPTA was designed to develop real property tax system to its fullest
potential as a local revenue source with the following specific objectives:
1. To evolve a comprehensive system of real property appraisal that will
ensure fair and realistic property valuation for taxation purposes;
2. To establish uniform assessment methods and procedures to standardize
property values in each LGU;
3. To ensure that the ad valorem tax on real property shall be just, uniform
and equitable;
4. To adopt the necessary measures that will promote maximum tax
collection efficiency at the local levels;
5. To provide for optimum utilization by the local government of the
proceeds from the real property tax collection;
6. To formulate and adopt policies and procedures to improve technical
skills and develop reasonable standards of performance in the local
assessment and treasury services.
B. Incentives available from the RPTA Project
The RPTA Project will provide technical and financial assistance and
incentives to the LGUs participating in the project under the Project Cost Sharing
Scheme indicated under 5.4.6 of this Chapter.
C. Major Components of the RPTA Project
To facilitate effective administration of the RPTA, it has devised a system
composed of the following four (4) major components which is an integration of
technical and administrative processes based upon the value of real properties:
1.
2.
3.
4.
Tax Mapping
Records Conversion
Tax Collection
Data Computerization
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D. How will the RPTA Project Be Implemented?

The RPTA Project is to be implemented on the national, regional, provincial
and City/Municipal levels
1) National Level
The BLGF-DOF has the legal authority and responsibility to ensure
that the RPTA system installation is in full consonance with existing
laws, rules, regulations, policies and procedures. It monitors the activities
of the Provincial/City/Municipal Assessors and Treasurers who, in turn,
will be responsible for the implementation of the Project in their
respective provinces/cities/municipalities.
2) Regional Level As the implementing arm of the BLGF-DOF, the Regional Offices of
the BLGF-DOF shall perform the following functions within their
respective regions:
1. To supervise and coordinate RPTA projects;
2. To monitor the implementation of RPTA directives through the
provincial, city/municipal assessors and treasurers offices;
3. To recommend action on the LGU applications for participation
in the Project;
4. To compile and analyze RPTA statistical data
5. To undertake other related activities as directed by the BLGF,
DOF.
3) Provincial/City Level
The Provincial/City level RPTA Task Force shall be composed of
the following local officials; additional members may be disseminated at
the discretion of the Local Chief Executive, to wit:
Provincial Governor or City Mayor - Chairman
Provincial or City Assessor Member
Provincial or City Treasurer Member
1 Local Sanggunian Member Member
177

Functions:
1. To plan and implement multi-year Provincial/City RPTA
Programs including the IEC
2. To monitor and evaluate RPTA Projects of municipalities,
cities/districts in cooperation/coordination with the BLGF
Regional Offices
3. To review and recommend actions on requests of municipalities
for project participation
4. To submit progress reports and statistical data through the BLGF
Regional Offices.
5. To undertake related activities as directed by the BLGF- DOF
4) Municipal Level
The Municipal Task Force shall be created in every participating
municipality composed of the following members, additional members
may be disseminated at the discretion of the Municipal Mayor, to wit:
Municipal Mayor
Municipal Assessor
Municipal Treasurer
1 Local Sanggunian Member
Chairman
Member
Member
Member
Functions:
1. To prepare RPTA Program in coordination with the
Provincial Assessor
2. To coordinate, facilitate and recommend to the
Sanggunian the appropriate budget/financing of the
logistic and support services for the RPTA project
implementation
3. To prepare requests for financing and participation in the
Project
4. To prepare and submit periodic progress reports and
statistical data
E. Role of the Local Chief Executive in the RPTA Project

The Local Chief Executives, being heads of LGUs will be directly
involved in the initial planning, implementation and monitoring of the RPTA
178

Project and shall be responsible for disseminating information about the

RPTA Project to their constituents.
F. How is the Financing of the RPTA Project?
The RPTA Project Total Cost shall be shared by the national
government through grant/national assistance and the LGU concerned as
follows:
LGU Income Class/ % Contribution
In case of Province/Municipality
National Government
Province
Municipality
LGU Equity
Province
Municipality
TOTAL
In case of a City:
National Government
City
LGU Equity
City
TOTAL
1st & 2nd
3rd & 4th
5th & 6th
30%
30%
60%
====
35%
35%
70%
====
40%
40%
80%
====
20%
20%
40%
====
100%
====
15%
15%
30%
====
100%
====
10%
10%
20%
====
100%
====
60%
70%
80%
40%
100%
====
30%
100%
====
20%
100%
====
G. How can an LGU participate in the RPTA Project?

An LGU can Participate in the Project upon submission/compliance with
the following:
1. Letter of intent of the Local Chief Executive (LCE).
2. Sangguniang Panlalawigan and Sangguniang Bayan Resolution (in case
of municipality)/Sangguniang Panlunsod Resolution expressing
commitments as follows:
179

To authorize the LCE to enter into Memorandum of Agreement

with DOF, through the BLGF;
To provide the required equity;
To provide annually adequate funds for the proper maintenance of
completed project;
To support Real Property Tax Collection Enhancement Program
(RPTCEP).
3. Base Maps should be available

4. Accessible to transportation
5. Peaceful political environment to conduct field work
H. Role of the Local Government Officials, Treasurers in the RPTA IEC
Program
(a) Local Government Officials:
1. Availability to their constituents to answer inquiries about the RPTA
Project
2. Dissemination to all intended audiences
3. Give all possible support to Local Assessors and Treasurers to
successfully carry out their duties and responsibilities
4. Encourage constituents to pay real property taxes honestly and
promptly
5.
(b) Local Assessors and Treasurers
1. Availability of reference or guide materials on RPTA to answer
inquiries about the RPTA Program
2. Communication Agent of the RPTA Program
SECTION 5.- CLARIFICATORY CONSTRUCTION
(a) SEC. 226. Local Board of Assessment Appeals.- Any owner or person
having legal interest in the property who is not satisfied with the action of the
provincial, city or municipal assessor in the assessment of his property may, within
sixty (60) days from the date of receipt of the written notice of assessment, appeal to
the Board of Assessment Appeals of the province or city by filing a petition under
oath in the form prescribed for the purpose, together with copies of the tax
declarations and such affidavits or documents submitted in support of the appeal.
180

SEC.252. Payment Under Protest.

(a) No protest shall be entertained unless the taxpayer first pays the tax.
There shall be annotated on the tax receipts the words paid under protest. The
protest in writing must be within thirty (30) days from payment of the tax to the
provincial, city treasurer or municipal treasurer, in the case of a municipality within
Metropolitan Manila -Area, who shall decide the protest within sixty (60) days from
receipt.
(b)
The tax or a portion thereof paid under protest shall be held in trust
by the treasurer concerned.
(c)
In the event that the protest is finally decided in favor of the
taxpayer, the amount or portion of the tax protested shall be refunded to the
protestant, or applied as tax credit against his existing or future tax liability.
(d)
In the event that the protest is denied or upon the lapse of the sixtyday period prescribed in subparagraph (a), the taxpayer may avail of the remedies as
provided for in Chapter 3, Title Two, Book II of this code.
There seems to be a conflict on the period within which a taxpayer is given
the right to appeal the assessment made by the assessor on his property. However,
assessors should legally invoke Section 226 whenever appropriate in cases of
appeals of assessment.
1. Section 226 is under Chapter III, titled Assessment Appeals while Section
252 is under Chapter 6, titled Collection of Real Property Tax of R.A. 7160 such
that the period within which to appeal must strictly conform with Section 226, R.A.
7160.
2. If the property owner made his appeal on the basis Section 252, R.A.
7160, his protest shall be acted upon if the reglamentary period provided for under
Section 226 has not yet prescribed.
3. Section 252 without reference to the period provided for under Section
226 will render the latter provision negatory for it will give the taxpayer the right to
appeal beyond the statutory period of appeal.
b. Lands shall be assessed on the basis of the current and fair market value
of the street or place of location. The assignment of the assessment level serves the
purpose of classification of the lot based on the actual use or predominant use of the
land in the area if vacant, and for the purpose of applying the current tax rate based
on classification.
c. If the property is exempt on the tax day (January 1), then it is exempt for
the whole year even though it becomes taxable after the tax day. If the property is
181

taxable on the tax day (January 1) then it is taxable for the whole year even though it
becomes exempt after the tax day.
d. Real properties declared for the first time shall be assessed on the basis of
the approved schedule of values during the effective date of the commencement of
tax liability and not during the time the assessment was made specially when back
taxes are imposed on the property. If general revision takes place after the initial
assessment, then the assessment should be correspondingly revised to reflect the
new schedules of values.
e.
Sec. 221. Date of Effectivity of Assessment or Reassessment. - All
assessments or reassessments made after the first (1st) day of January or any year
shall take effect on the first (1st) day of January of the succeeding year; Provided,
however, that the reassessment of real property due to its partial or total destruction,
or to a major change in its actual use, or to any great and sudden inflation or
deflation of real property values, or to the gross illegality of the assessment when
made or to any other abnormal cause, shall be made within ninety (90) days from the
date any such cause or causes occurred, and shall take effect at the beginning of the
quarter next following the reassessment.
This provision shall apply to all existing assessments of real properties which
taxes by operation of law should be paid annually such that in cases of change of
ownership, location, subdivided or consolidated properties, the effective date of the
commencement of taxes shall be the 1st day of January of succeeding year. Provided
that all real property taxes for the current year contrary opinion on this provision,
will run counter to the provision of Section 203 and 222 of R.A. 7160 which provide
as follows:
Sec. 203. Duty of Person Acquiring Real Property or Making Improvement
Thereon. 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 comes earlier.
Sec. 222. Assessment of Property Subject to Back Taxes. Real property
declared for the first time shall be assessed for taxes for the period during which it
would have been liable but in no case for more than ten (10) years prior to the date
of initial assessment: Provided, however, That such taxes shall be computed on the
basis of the applicable schedule of values on force during the corresponding period.
If such taxes are paid on or before the end of the quarter following the date
the notice of assessment was received by the owner or his representative, no interest
for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to
an interest at the rate of two percent (2%) per month or a fraction thereof from the
date of the receipt of the assessment until such taxes are fully paid.
182

f. Sec. 225. Depreciation Allowance for Machinery. For purposes of

assessment, a depreciation allowance shall be made for machinery at a rate not
exceeding five percent (5%) of its original cost or its replacement or reproduction
cost, as the case may be, for each year of use: Provided, however, That the
remaining value for all kinds of machinery shall be fixed at not less than twenty
percent (20%) of such original, replacement, or reproduction cost for so long as the
machinery is useful and in operation.
This Section does not authorize the local assessor to grant depreciation
allowance to machinery and equipment. The grant of depreciation to this property is
dependent upon the determination cost which the local assessor is mandated to
determine as a condition precedent to the grant of depreciation. Further,
accumulated depreciation is already and is previously imposed upon machinery and
equipment during general revision through the mandatory use and application of the
formula for the computation of its current and fair market value.
g. Sec. 231. Effect of Appeal on the Payment of Real Property Tax.
Appeal on assessments of real property made under the provisions of this Code
shall, in no case, suspend the collection of the corresponding realty taxes on the
property involved as assessed by the provincial or city assessor, without prejudice to
subsequent adjustment depending upon the final outcome of the appeal.
The appeal on assessment mentioned under this provision refers to the
appeals on the real property assessments made by the assessor pursuant to the
provisions of Sections 226 and 252, R.A. 7160, and the payment of realty taxes as
condition precedent to the appeal does not apply to cases brought before the court
where questions of law, legality of the law or ordinance or constitutionality of the
law is being raised.
SECTION 5. - ASSESSMENT LOAN REVOLVING FUND (ALRF)

An Assessment Loan Revolving Fund (ALRF) was created pursuant to P.D.
1002, which provides as follows:
Assessment Loan Revolving Fund. The sum of fifty million
pesos is hereby appropriated out of the unallocated balance of internal
revenue allotments to local governments, after distribution of their
individual shares pursuant to Section One of Presidential Decree
No.144, as amended, to constitute an Assessment Loan Revolving Fund
for financing tax-mapping projects, periodic revision of assessments,
and other real property assessment programs of provinces, cities and
municipalities. Such fund shall be administered by the Secretary of
Finance and shall be loaned without interest to provinces, cities and
municipalities, under such terms and conditions as he may impose.
183

5.1 Who Can Avail the Loan from the ALRF?

All provinces, cities and municipalities can avail of the loan from the P50-M
Assessment Loan Revolving Fund to finance any of the following
programs/projects:
1. Tax mapping project
2. General Revision of Real Property Assessments
3. Other real property assessment programs
A. Who Administered the Fund
The P50-M ALRF is administered by the Bureau of Local
Government Finance, Department of Finance (BLGF-DOF) available as loan
to the province, city or municipality at an amount not exceeding their
borrowing capacity as Certified by the BLGF, payable in five (5) equal
annual installments without interest.
B. How To Apply For ALRF
The loan application by the province, city or municipality shall be
filed in the BLGF, 8th Floor, EDPC Building, Bangko Sentral ng Pilipinas
Complex, Roxas Blvd., Manila. The Loan application shall be accompanied
by the following documents:
1. A resolution of the Sangguniang Panlalawigan, Sangguniang
Panlungsod or Sangguniang Bayan, authorizing the Provincial
Governor, City or Municipal Mayor to enter into a loan agreement
with the Department of Finance, indicating the amount of loan
desired and the specific project to be undertaken (MOF Assessment
Regulations No.4-77 dated May 23, 1977).
2. A Project Study and Action Plan (PSAP).
C. Release of Loan Proceeds

The proceeds of the loan shall be released to the Provincial/City/
Municipal Treasurer concerned in the following manner:
1st Release 50% of the approved loan to be used primarily for the
purchase and acquisition of supplies and materials,
furniture and equipment, base maps and other expenses
necessary in the initial stage of project implementation.
2nd Release - 30% of the approved loan.
184

1. Submission of the Report of Actual Accomplishments of the

Project duly certified by the Assessor concerned.
2. Submission of the Report of Actual Expenditure covering the
1st release jointly signed by the Assessor and the Treasurer;
3. Favorable recommendation by the representative of the
BLGF-DOF (Central Office), who evaluated the Project in the
field.
3rd Release - 20% of the approved loan.
Requirements:
1. Certification by the Assessor concerned that the project
financed by the loan is at least 75% completed and duly
attested by the Governor/Mayor;
2. Submission of the Actual Accomplishment of the project
duly certified by the assessor;
3. Submission of the report of actual expenditures covering
the 2nd release jointly signed by the assessor and
treasurer; and
4. Favorable recommendation by the representatives of the
BLGF Central Office.
D. Terms and Conditions of the Loan
The terms and conditions of the loan are defined in the Contract of
Loan executed by and between the DOF and the Provincial Governor/City
Mayor/Municipal Mayor. A sample of the Contract is shown hereunder:
185

CONTRACT OF LOAN
KNOW ALL MEN BY THESE PRESENTS:
This is a CONTRACT OF LOAN executed by and between the

, represented by the
.., hereinafter known as the PARTY OF THE FIRST PARTY and the Republic of
the Philippines, represented by the Department of Finance, Administrator of the Assessment
Loan Revolving Fund, established by virtue of Presidential Decree No.1002, hereinafter
known as the PARTY OF THE SECOND PARTY.
-WITNESSETH-
That the PARTY OF THE FIRST PARTY having accomplished the documents and
information required under Section 4.5.3 of Chapter 4 of this Manual on Real Property
Assessment and Administration.
That the PARTY OF THE FIRSYT PARTY having submitted to the PARTY OF
THE SECOND PARTY all the required supporting papers incident to the application of
loan.
NOW, THEREFORE, for and in consideration of the foregoing premises, the
PARTY OF THE SECOND PARTY hereby grants and approves a loan in the amount of
.., Philippine Currency, out of the Assessment Loan
Revolving Fund to the and that the PARTY OF FIRST
PARTY hereby accepts said loan subject to the following terms and conditions:
1. That the proceed of the loan shall be expended on the basis of the estimated costs of the
project as itemized in the Project Study and Action Plan submitted by the
borrower.. which Plan is hereby made an integral part hereof
as Annex A.
2. That the initial release of the proceeds of the loan shall be approximately50% hereof, the
date of release and the amount thereof shall be scheduled and determined by the
Department of Finance.
3. That the prosecution of the project shall be started not later than sixty days from the date
of receipt of the amount covering the first release of the loan.
4. That the project shall not be let to any private person.
5. That the second and last releases of the portions of the loan, shall be subject to a prior
submission of progress report to the Executive Director, Bureau of Local Government
186

Finance, copy furnished the Accounting Division, both of the Department of Finance,
duly verified by the representatives of the BLGF-DOF who personally inspected the
project;
6. That the period of repayment of the annual proceeds of the loans shall be for five (5)
years in equal annual amortization, to commence on or before the end of December of
the year following the year of completion of the project until the same have been fully
paid and liquidated; Provided, however, That if the project is not finished even after the
full release of the loan, the repayment shall commence on or before the end of
December of the year following the year of the last release of the loan.
7. That the completion of the project, for purposes of determining the running of the period
of repayment, shall be certified by the BLGF-DOF representative who inspected and
evaluated the project;
8. That in case the borrower ______________________ concerned fails to pay the annual
amortization when due, the same shall automatically be deducted from its share from the
internal revenue allotment of the borrower _______________ ______________, which
allotment is hereby made as a guaranty of the repayment of whatever loan released;
9. That the proceeds of the loan, or any portion thereof, shall in no case be used,
temporarily or otherwise, for any other purpose by the borrower
_________________________ except for the financing and implementation of the
project described hereunder:
That the PARTY OF THE SECOND PARTY reserves the right to rescind this
contract whenever public interest so demands.
IN WITNESS WHEREOF, the parties have hereunto set their hands at Manila,
Philippines, on this .. day of , 2000.
PARTY OF THE FIRST PARTY
PARTY OF THE SECOND PARTY
Represented by:
Represented by:
SIGNED IN THE PRESENCE OF:

.
187

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)

C I T Y O F M A N I L A) S.S.
BEFORE ME, a Notary Public for and in the City of Manila, personally appeared
.. representing the PARTY OF THE FIRST PARTY
with Community Tax Certificate No. .., issued on .., at
.. and.. representing the
PARTY OF THE SECOND PARTY, with Community Tax Certificate No.,
issued on . At ., known to me and to me
known to be the same persons who executed the foregoing document denominated as a
Contract of Loan and who acknowledged having executed the same of their own free will
and deed.
The fore going document consisting of three (3) pages including this page wherein
the acknowledgment appears are duly signed by the parties and their instrumental witnesses
on the left hand margin thereof.
IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal in the City
of Manila, Philippines, this day of , 2000.
NOTARY PUBLIC
BOOK NO
PAGE NO
BOOK NO.
SERIES OF 2001
Until December 31, 200

PTR No.
Issued on ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
At
188

Glossary of Terms
1. Tax Mapping is the primary concern of the Municipal Assessor and City Assessor
and the first component undertaken in the installation of the RPTA Project which
involves physical survey of land parcels for the following purposes:
a)
b)
c)
d)
Proper identification of real properties and property owner

Determining the lines or boundaries of real properties
Assigning of Property Index Number (PIN)
Developing tax maps which would show a graphical presentation of a propertys
earth surface drawn to scale.
2. Assessment Operations is a means of assigning on every parcel of land and upon all
the taxable improvements on such lands, a current and fair market value, an assessment
level to be able to arrive at an assessed value for each land and each improvement.
3. Records Conversion and Management (RC) is the establishment and maintenance
of permanent official records and files in the office of the Provincial, City or Municipal
Assessor so that an updated and regular listing of all properties is readily available. It
also serves as a basis for a more accurate collection of real property tax and establishes
the all important control link between assessment and tax collection operations.
4. Real Property Tax Collection Operation involves collection of all real property
taxes and penalties due and payable to the LGU through the positive and total
enforcement of tax laws and their penal provisions.
5. Data Computerization encompasses all activities leading to the establishment and
operationalization of a computer-assisted data base for Real Property Tax
Administration (RPTA) among which includes the familiarization/training of key
personnel, encoding and validation of data acquisition and installation of standard
RPTA system, generation of reports and preparation of complementary manual of
procedures.
6. Information, Education Campaign (IEC) Program is the RPTA Information kit for
use of the LGU officials, assessors and treasurers in the RPTA Project.
189

CHAPTER 5
PENAL PROVISIONS
The Local Government Code provides penalties for violations of its provisions. The
following provisions are applicable to local officials involved in assessment operations:
1. Any local official and any person or persons dealing with him who violate the
prohibitions provided in Section 89 of Book I of LGC, shall be punished with
imprisonment for six (6) months and one (1) day to six (6) years, or a fine of not
less than Three Thousand Pesos (P3, 000.00) nor more than Ten Thousand Pesos
(P10, 000.00), or both such imprisonment and fine, at the discretion of the court.
2. Section 89 of the Code enumerates the following prohibited business and pecuniary
interest:
1) Engaging in any business transaction with the local government unit in which he
is an official or employee or over which he has the power of supervision, or with
any of its authorized bards, officials, agents or attorneys, whereby money is to be
paid, or property of any other thing of value is to be transferred, directly or
indirectly, out of the resources o the local government unit to such person of
firm;
2) Holding such interest in any cockpit or other games licensed by a local
government unit;
3) Purchasing any real estate or other property forfeited in favor of such local
government unit for unpaid taxes or assessment, or by virtue of a legal process at
the instance of the said local government unit;
4) Being a surety for any person contracting or doing business with the local
government unit for which a surety is required; and
5) Possessing or using any public property of the local government unit for private
purpose.
3. Any officer charged with the duty of assessing real property who willfully fails
to assess, or who intentionally omits from the assessment or tax roll any real
property which he knows to be taxable, or who willfully or negligently
underassesses any real property, or who intentionally violates or fails to perform
any duty imposed upon him by law relating to the assessment of taxable real
property shall, upon conviction, be punished by a fine of not less than One
Thousand Pesos (P1, 000.00) nor more than Five Thousand Pesos (P5,000.00),
or by imprisonment of not less than one (1) month nor more than six (6) months,
or both such fine and imprisonment, at the discretion of the court.
190

The same penalty shall be imposed upon any officer charged with the
duty of collecting the tax due on real property who willfully or negligently fails
to collect the tax and institute the necessary proceedings for the collection of the
same.
Any other officer required by this Code to perform acts relating to the
administration of the real property tax or to assist the assessor or treasurer in
such administration, who willfully fails to discharge such duties shall, upon
conviction be punished by a fine of not less than Five Hundred Pesos (P500.00)
nor more than Five Thousand Pesos (P5, 000.00) or imprisonment of not less
than one (1) month nor more than six (6) months, or both such fine and
imprisonment, at the discretion of the court.(Sec. 517, RA 7160)
4. Any government official who intentionally and deliberately delays the
assessment of real property or the filing of any appeal against its assessment
shall, upon conviction, be punished by a fine of not less than Five Hundred
Pesos (P500.00) nor more than Five Thousand Pesos (P5, 000.00), or by
imprisonment of not less than one (1) month nor more than six (6) months, or
both such fine and imprisonment, at the discretion of the court. (Sec. 518, RA
7160)
CHAPTER 6
REPEALING AND EFFECTIVITY CLAUSE
Section 1. Repealing Clause. All rules, regulations and orders inconsistent with
the provisions hereof are hereby repealed or modified accordingly.
Section 2. Effectivity. This Assessment Manual shall take effect immediately.
JOSE ISIDRO N. CAMACHO

Secretary
191

Manual On Real Estate Appraisal and Assessment

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BLGF Draft of Local Assessment Manual (As of September 12, 2003)

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

Appointment of Assistant Assessor.

Duties, Functions and Responsibilities of Local Assessors.

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

6. Appraise all items of real property at current market value in accordance

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

B. Other Functions of Local Assessors

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

h. The provincial, city or municipal assessor shall make and keep an

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

IV. Duties and Responsibilities of Assistant Provincial, City and Municipal

SECTION 2. SUPERVISION OVER LOCAL ASSESSORS

A. Technical Supervision of DOF thru BLGF:

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

SECTION 3. DELEGATION OF FUNCTION BY PROVINCIAL ASSESSORS TO

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

SECTION 4. - ORGANIZATIONAL STRUCTURE

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

ASSISTANT PROVINCIAL ASSESSOR FOR

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

ASST. CITY ASSESSOR *

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

ASST. MUNICIPAL ASSESSOR *

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

ASST. MUNICIPAL ASSESSOR *

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

Provincial Assessor (Mandatory)

B. Administrative and Assessment Records

C. Assessment Standard and Examination Division

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

Provincial Assessor (Mandatory)

A. Assessment Operations Evaluation Unit

C. Assessment Records Management Division

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

D. Tax Mapping Operations Division

E. Property Valuation and Examination Division

F. Assessment Standards and Examination Division

G. Information Technology Division

** Recommendatory depending on the financial

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

A. Assessment Operations Evaluation Unit

B. Administrative and Assessment Records

C. Tax Mapping Operations Division

D. Appraisal and Assessment Division

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

Assessment Clerk III, G 9

A. Assessment Operations Evaluation Unit

C. Assessment Records Management Division

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

Assessment Records Officer II, G 15

D. Tax Mapping Operations Division

F. Assessment Standards and Examination Division

** Recommendatory depending on the financial

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

A. Administrative and Assessment Record Division

BLGF Draft of Local Assessment Manual (As of September 12, 2003)

B. Tax Mapping Operations Division

C. Appraisal and Assessment Division

SECTION 5. - COORDINATION AND LINKAGES OF LOCAL ASSESSORS