Calasiao Real Property Tax Automated Assessment System
Chapter 1
INTRODUCTION
Background of the Study
Real Property is any property that is attached directly to land, as well as the land itself. Real property not only includes buildings and other structures, but also rights and interests. Local governments in the Philippines are vested with the power to create their own revenue sources. Such power must of course be exercised within the limitations set by law. The Local Government Code of 1991 allocated the taxing powers among local government units to prevent double and multiple taxation. A ceiling on the tax rates is also provided under the law. National policy thus sets the tax base (and the valuation rules) as well as the limits for tax rates. (Real Property Taxation in the Philippines). The power to impose the real property tax has been given to provinces, cities, and municipal governments within the Metropolitan Manila area. The tax applies to all forms of real property such as land, building, improvements, and machinery. Exemption is given to real properties owned by government, charitable institutions, churches, cooperatives, and those that are used in the supply of water and electric power.
(Real Property Taxation in the Philippines). Equipment for pollution control and environmental protection is not subject to tax.
The base of the tax, or the assessment level, is only a fraction or a percentage of the market value of the land. The under-taxation of land is therefore built into the tax structure. This is compounded by assessment levels that are differentiated depending on land use: Residential-20%, Agricultural-40%, Commercial, Industrial and Mineral-50%, Timberland-20%, Special classes: cultural, scientific-15%, Hospital, and Water districs-10%. (Real Property Taxation in the Philippines). The manual tax assessment process is as follows: the tax declaration or latest official receipt was presented by the taxpayer to the person in charge;
INTRODUCTION
Background of the Study
Real Property is any property that is attached directly to land, as well as the land itself. Real property not only includes buildings and other structures, but also rights and interests. Local governments in the Philippines are vested with the power to create their own revenue sources. Such power must of course be exercised within the limitations set by law. The Local Government Code of 1991 allocated the taxing powers among local government units to prevent double and multiple taxation. A ceiling on the tax rates is also provided under the law. National policy thus sets the tax base (and the valuation rules) as well as the limits for tax rates. (Real Property Taxation in the Philippines). The power to impose the real property tax has been given to provinces, cities, and municipal governments within the Metropolitan Manila area. The tax applies to all forms of real property such as land, building, improvements, and machinery. Exemption is given to real properties owned by government, charitable institutions, churches, cooperatives, and those that are used in the supply of water and electric power.
(Real Property Taxation in the Philippines). Equipment for pollution control and environmental protection is not subject to tax.
The base of the tax, or the assessment level, is only a fraction or a percentage of the market value of the land. The under-taxation of land is therefore built into the tax structure. This is compounded by assessment levels that are differentiated depending on land use: Residential-20%, Agricultural-40%, Commercial, Industrial and Mineral-50%, Timberland-20%, Special classes: cultural, scientific-15%, Hospital, and Water districs-10%. (Real Property Taxation in the Philippines). The manual tax assessment process is as follows: the tax declaration or latest official receipt was presented by the taxpayer to the person in charge;