REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING OR ADMINISTERING REAL PROPERTY, INCLUDING THE IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT OF THE TRUE VALUE OF SUCH PROPERTY
I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, and knowing
THAT, values of real property and improvements therein are usually under declared obviously for the purpose of evading payment of higher and correct taxes due the government;
THAT, although real property and the improvements therein are undervalued for purposes of taxation, these real property are sold to the government when needed for public purposes, such as the construction of roads and other infrastructures, at their market value which are usually ten (10) to twenty (20) times more than the value declared by the owners for purposes of taxation;
in order to effect the desired changes and reforms, in the social, economic and political structure of the country, which is the main objective of the New Society;
1. It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements therein, within a city, municipality or municipal district, or their duly authorized representative, to prepare, or cause to be prepared, and file with the provincial or city assessor not later than June 30, 1973, 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.
The "current and fair market value" shall be understood to mean the "price at which a willing seller would sell and a willing buyer would buy neither being under abnormal pressure."
For purposes of just compensation in cases of private property acquired by the government for public use, the basis shall be the current and fair market value declared by the owner or administrator, or such market value as determined by the assessor, whichever is lower.1awphil.net
Under this Decree, the assessed valuation which shall be the basis for the payment of real property tax beginning with the calendar year 1973 shall be fifty per centum of the current and fair market value, as determined by the assessor, in the case of commercial, industrial or mineral lands; forty per centum in the case of agricultural lands; and thirty per centum in the case of lands for purely residential purposes.
All improvements, including machineries, shall be assessed independently of lands and their assessments shall be maintained at their current levels, but in no case shall such levels be lower than the assessment levels for lands hereinabove prescribed nor more than eighty per centum of current and fair market value, except for purely residential houses used as residence of owners thereof the assessment levels of which are hereby fixed as follows:
| Assessment Level | Current Fair Market Value |
| 15% | P30,000.00 | or | less |
| 20% | 30,001.00 | to | P50,000.00 |
| 25% | 50,001.00 | to | 75,000.00 |
| 35% | 75,001.00 | to | 100,000.00 |
| 45% | 100,001.00 | to | 150,000.00 |
| 55% | 150,001.00 | to | 250,000.00 |
| 65% | 250,001.00 | to | 350,000.00 |
| 75% | 350,001.00 | to | 500,000.00 |
| 5% | | over | 500,000.00 |
2. Every five years hereafter, revision of real property assessment shall be undertaken by provincial and city assessors, and no increase in the current assessment level, as determined by the assessor, at any one time shall be more than ten per centum of the assessment levels mentioned in the foregoing paragraphs: Provided, That the limitation herein fixed on the frequency of assessment revision and increase in assessment levels shall not apply if the nature of the real estate has been changed from rural to urban or from residential to commercial and industrial site; And provided, further, That the assessment level of real property shall not exceed eighty per centum of current and fair market value, except upon prior approval of the Secretary of Finance.
3. When real property is found in any city, municipality or municipal district, the owner or administrator of which failed to file the sworn statement required under this Decree on or before June 30, 1973, the provincial or city assessor shall himself 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 this Decree.
No oath shall be required of a declaration thus made by the provincial or city assessor.
4. When the entire assessed valuation of real property in any one municipality or municipal district belonging to a single owner is not in excess of five hundred pesos, the tax thereon shall not be collected though in any event the property shall be valued for the purposes of assessment and record shall be kept thereof.
5. All existing tax declarations as of December 31, 1973 shall be superseded by the corresponding new tax declarations issued under this Decree. Collections, however, of delinquent real property taxes as of December 31, 1973 shall be computed on the basis of the assessed value and rates of penalty then obtaining.
6. To achieve a uniform appraisal of real property, provincial and city assessors shall prepare a schedule of current and fair market value of different classes of real property in their respective jurisdictions, using as guide the instructions prescribed in the implementing rules prescribed by the Secretary of Finance. Copies of the schedule of market values shall be furnished by the Secretary of Finance not later than September 30, 1973; and the same shall be adopted for use under this Decree unless modified or revised by the Secretary of Finance on or before November 30, 1973.
7. Any owner who is not satisfied with the action of the provincial or city assessor in the assessment of his property under this Decree may, within sixty days from the date of receipt by him of the written notice of assessment, appeal to the Board of Tax (Assessment) Appeals of the province or city, which shall be composed of three members: the Register of Deeds, as Chairman, the Provincial or City Auditor and the Provincial or City Engineer, as Members, who shall serve as such in the ex-officio capacity without additional compensation.
The Provincial or City Board of Tax (Assessment) Appeals shall decide the appeal within sixty days from receipt thereof. The decision of the Board shall fully recite the consideration upon which it is founded. Upon receipt of the decision, the Provincial or City Assessor shall thereupon act accordingly. If, however, the owner or administrator of the property or the assessor be not satisfied with the decision of the Board of Tax (Assessment) Appeals, he may within thirty days after receipt of the decision of the Board, appeal to the Central Board of Tax (Assessment) Appeals, composed of the Secretary of Finance, as Chairman, the Secretary of Justice and the Secretary of Local Governments and Community Development, as members, whose decision shall be final. Said Central Board of Tax (Assessment) Appeals shall promulgate rules and regulations governing the procedure in such appeals.
The appeals, however, shall not suspend the collections of the corresponding realty taxes as assessed by the provincial, or city assessor, without prejudice to subsequent adjustment depending upon the final outcome of the appeal.
8. To effectively implement the objective of this Decree, provincial, city, municipal or municipal district boards or councils shall provide the necessary appropriations to underwrite or defray expenses incident thereto, using for the purpose any unappropriated balances in the general, road and bridge and/or permanent public improvement funds; any underestimated revenues accruing thereto or reversions of unauthorized appropriations in their respective budgets which are not otherwise urgently needed, existing laws to the contrary notwithstanding.
9. Any increase in the shares of provinces, cities, municipalities and municipal districts from the additional one per centum realty tax levied and apportioned under Republic Act No. 5447, accruing to their respective local school boards commencing with fiscal year 1973-74 over what has been actually realized during the fiscal year 1971-72 which, for purposes of this Decree, shall remain as the base year, shall be divided equally between the general fund and special education fund of the local government units concerned. The Secretary of Finance may, however, at his discretion, increase to not more than seventy-five per centum the amount that shall accrue annually to the local general fund.
10. Failure to pay the real property tax before the expiration of the terms for the payment without penalty of the quarterly installment thereof, shall subject the taxpayer to the payment of a penalty equivalent to two per centum on the amount of the delinquent tax for each month of delinquency or fraction thereof until the delinquent tax shall be fully paid: Provided, That in no case shall the total penalty exceed twenty-four per centum of the delinquent tax. The rate of penalty for tax delinquency fixed herein shall be uniformly applied in all provinces and cities.
11. Any one who shall knowingly make false declaration concerning any property or who shall deliberately fail to file the sworn statement required in this Decree shall, upon conviction, pay a fine of not less than five hundred pesos nor more than ten thousand pesos. If the offense is committed by a corporation, the manager or person in charge of the management of the business of the corporations shall be responsible therefor.
Any officer charged with the duty of assessing real property, who shall willfully fail to assess, or shall omit from the tax lists, any real property which he knows to be lawfully taxable pursuant to and according to this Decree shall be punished by a fine not exceeding five thousand pesos, or imprisonment of not more than two years, or both, at the discretion of the court.
Any government official or employee who shall intentionally and deliberately delay the filing of the real property tax declaration or the filing of any appeal against an assessment shall, upon conviction, be punished by a fine of not more than one thousand pesos or by imprisonment of not more than two years, or both, at the discretion of the court.
12. The Secretary of Finance is hereby ordered to formulate the implementing rules and regulations to be followed by all Provincial and City Assessors for the immediate and successful implementation of this Decree.
This Decree shall form part of the laws of the land and shall take effect immediately after its publication. All laws, rules and regulations which are inconsistent with this Decree are hereby repealed.
Done in the City of Manila, this 6th day of December, in the year of Our Lord, nineteen hundred and seventy-two.
