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General Revision of

Assessments
Purposes
A general revision of real property
assessments serves two important
purposes in addition to its primary
purpose of equalizing and updating
valuation.

a. The real properties that have been


lost from the tax rolls are rediscovered
and
General Revision of
Assessments
Purposes
b. It enables the assessor to purge
the rolls of the double assessments of
properties that have accumulated
through the years. It has the same
purpose as the periodic physical
inventory conducted by a business
establishment.
General Revision of
Assessments
If there is no sufficient time or
resources to complete the general
revision work for all real property
units (RPUs) within the territorial
jurisdiction of a particular local
government unit, a partial revision
may be undertaken by kind or
class of real property.
General Revision of
Assessments
a. By Kind:
1st year - All Lands
2nd year - All other real properties
b. By Class:
1st year - All Commercial & Industrial
Properties
2nd year - All Other Classes of
Properties
SECTION 5. Preparation of
the Schedule of Fair Market
Values
Before any general revision of real
property assessment is made pursuant
to the provision of Title II, Book II of Local
Government Code, there shall be prepared
schedule of fair market values by the
provincial, city and the municipal assessors
of the municipalities within Metro Manila
Area for the different classes of real
property situated in their respective local
government units for enactment of an
ordinance by the sanggunian concerned.
SECTION 5. Preparation of
the Schedule of Fair Market
Values
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 the
case of Metro Manila Area, the assessor of
each assessment district shall meet,
discuss, compare and harmonize their
respective Schedule of Fair Market Values.
SECTION 5. Preparation of
the Schedule of Fair Market
Values
The Miscellaneous Provisions
may contain a provision authorizing
the assessor to classify, value and
assess real property independently of
the schedule in cases where such real
property is not specifically included in
the approved Schedule of Fair Market
Values.
SECTION 5.
A. Establishing a Base
Valuation Date
The Schedule of Fair Market Value
prepared shall prescribed the base valuation
date as January 1 of the first year of the
general revision of assessments.

The base valuation date provides a


predetermined point in time at which all
time adjustments can be aimed. All the
sales used in the pre-appraisal set-up should
be adjusted to the base valuation date to
reflect either inflationary or recessionary
trends in the market.
SECTION 5.
A. Establishing a Base
Valuation Date
Time adjustments can be made by using
either resale properties or a comparable sales
analysis of similar properties. The time
adjustment studies should be conducted as
close to the base valuation date as possible.
These adjustments are expressed as a percent
increase or decrease for an appropriate period.
If re-sales are not available, the trends can be
determined by further analysis. Sales
occurring after the base valuation date must be
considered in the final analysis conducted at
the end of the appraisal program.
SECTION 5.
A. Establishing a Base
Valuation Date
Any changes in value levels as reflected
by those sales are recognized by adjusting the
completed appraisals to base valuation date.
Additionally, during the yearly maintenance
program when new construction is picked up,
always refer back the base valuation date and
use the same base standards. Compensate
for any changes in market value levels
occurring after the original base valuation date
by applying subsequent yearly adjustments.
SECTION 5.
B. Approaches to Value and Mass
Appraisal
as the Basis of Preparation of the
Generally, SFMV
the three (3)
approaches to value, as discussed in
this Manual, shall be the basis in the
preparation of the Schedule of Fair
Market Value
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
For purposes of uniformity the
Schedule of Fair Market Values shall be
prepared and submitted in the format
prescribed in Attachment 12 including the
forms which will be used to support its
preparations namely;

GR Form 1. Office Order/Schedule of


Base Unit Market Values for Residential,
Commercial and Industrial Land (including
Land Value Map)
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
GR Form 2. Criteria for Sub-
Classification of Urban Lands

GR Form 3. Statement of Sales


Values of Residential, Commercial
and Industrial Lands
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
GR Form 4. Tabulation of Sales
Values for each Class of Residential,
Commercial and Industrial Lands
GR Form 5. Computation for the Unit
Base Market Value of Urban Land
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
GR Form 6. Schedule of Unit Base
Market Value for Agricultural Lands
GR Form 7. Statement of Sales
Values of Agricultural Lands
GR Form 8. Tabulation of Sales
Values for each Class of Agricultural
Lands
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
GR. Form 9. Computation for the
Unit Base Market Value of
Agricultural Lands
GR Form 10. Schedule of Base Unit
Cost for Building (Including
Classification of Buildings/Structures
and Type of Construction)
SECTION 5.
C. The Format of the Schedule of Fair
Market Value
GR Form 11. Schedule of
Depreciation
GR Form 12. Schedule of Unit Cost
for Extra Items
Computation for Unit Costs of
Buildings
Miscellaneous Provision
SECTION 5.
D. Classification of
Buildings/Structures
Buildings shall be generally
classified in accordance with the
structural designs for which they were
intended regardless of their actual use,
such as residential, commercial,
industrial, or farmhouse. The
classification system shall embrace only
such structure as are commonly found
in the local government unit (lgu).
SECTION 5.
D. Classification of
Buildings/Structures
1. Under the use design classification,
building may be grouped into the
following:

a. RESIDENTIAL BUILDINGS:
(1) Single Detached
(2) Duplex
(3) Apartments or Row Houses
(4) Town Houses
(5) Condominiums
SECTION 5.
D. Classification of
Buildings/Structures
1. Under the use design classification,
building may be grouped into the
following:

b. COMMERCIAL BUILDINGS:
(1) Office
(2)Bank
(3)Theater
(4) Hotel/ Motel
(5) Parking Buildings
(6) etc
SECTION 5.
D. Classification of
Buildings/Structures
1. Under the use design classification,
building may be grouped into the
following:

c. INDUSTRIAL BUILDINGS:
(1) Factory
(2) Warehouses or Bodega
SECTION 5.
D. Classification of
Buildings/Structures
1. Under the use design classification,
building may be grouped into the
following:

d. AGRICULTURAL STRUCTURES
(1) Barn
(2) Poultry House
(3) Stable
(4) Hog house
(5) Greenhouse
SECTION 5.
D. Classification of
Buildings/Structures
2. For purposes of establishing the
schedule of base unit construction costs,
each type of building shall be further
grouped in accordance with the kind and
quality of material, used in the
construction, such as Type I-A to C; Type
II-A to D; Type III-A to IV. Standard base
specifications shall then be prepared and
defined, at the same time describing
each type.
SECTION 5.
D. Classification of
Buildings/Structures
The residential building type improvement
class in the market-related cost approach is
based on quality class benchmarks developed
for the area. The class of a residential
building is determined by comparing its
construction quality (materials and
workmanship) with the base specifications
developed for the area.
To properly classify the house and maintain
uniformity with other LGU appraisers,
compare the subject to benchmarked homes
for the area.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

For purposes of this Manual and so


as to be consistent with the provisions
of the Building Code, all buildings shall
be classified or identified according to
the following types:
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

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 falling under this type.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

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.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

Third group wooden structural framings,


floorings and sidings, and G.I. roofing
but structural members are
substandard.
Third group wooden structural framings,
floorings and sidings, and G.I. roofing
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

Type III Buildings shall be of masonry and wood


construction. Structural elements may be any of
the materials permitted by the said National
Building Code: Provided, that the building shall be
one-hour fire resistive throughout. Exterior wall
shall be of incombustible fire- resistive construction.
Third Group wooden structural framings, floorings
and sidings, and G.I. roofing, but structural
members are sub-standard.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

Third Group wooden structural framings,


floorings and sidings, and G.I. roofing, but
structural members are sub-standard.
Third Group wooden structural framings,
floorings and sidings, and G.I. roofing.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

First Group wooden post, girders, girts,


windowsills and head, apitong floor joists and roof
framing, tanguile floorings and sidings, and G.I.
roofing.
First Group wooden structural framings, floorings, and
walls on the first floor, and tanguile walls on the
second floor, and G.I. roofing.
First group wooden structural framings, walls and G.I.
roofing.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

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 non-bearing
partitions of one-hour fire-resistive
construction may use fire-retardant treated
wood within the framing assembly.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

a. Concrete columns, beams and walls


but wooden floor joists, flooring and roof
framings and G.I. roofing; even if walls are
in CHB, kitchen and T & B are in
reinforced concrete slabs.
b. Concrete columns and beams but
hollow block walls and G.I. roofings.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

Type V Buildings 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 fire-resistive
construction.
SECTION 5.
D. Classification of
Buildings/Structures
2. a. Types of Construction

a.Structural steel and reinforced


concrete columns and beams.
b.Columns beams, walls, floors and
roofs all reinforced concrete.
c.Walls are hollow blocks reinforced
concrete or tile roofing.
SECTION 5.
D. Classification of
Buildings/Structures
2. b. Extra Items as Component Parts of Buildings:

1. Carport % of Base Unit Construction Cost (BUCC)


2. Mezzanine.. % BUCC plus additional cost for finishing.
3. Porch ... % BUCC plus additional cost for finishing.
4. Balcony. % of BUCC plus additional cost for
finishing.
5. Garage ... % of Base Unit Value
6. Terrace:
Covered .. ___ % of BUCC plus additional cost for finishing
Open .... ___ % of BUCC plus additional cost for finishing.
SECTION 5.
D. Classification of
Buildings/Structures
2. b. Extra Items as Component Parts of Buildings:

7. Roof Deck:
Penthouse .. % of BUCC plus additional cost for finishing.
Covered .... % of BUCC plus additional cost for finishing.
8. Basement:
Residential .. __ % of BUCC plus additional cost for
finishing.
High Rise-Bldg. plus.. __ % of BUCC plus additional cost for
finishing.
9. Pavement:
Tennis Court ... P _ per sq. meter
Concrete ..... per sq. meter
10 cm. thick .. per sq. meter
15 cm. thick . per sq. meter
20 cm. Thick per sq. meter
SECTION 5.
D. Classification of
2. b. ExtraBuildings/Structures
Items as Component Parts of Buildings:

10.Floor Finishings:
Marble Slabs . per sq. meter
Marble Tiles . per sq. meter
Narra . per sq. meter
Narra/Fancy
Wood Tiles per sq. meter
Ordinary Wood
Tiles .. per sq. meter
Vinyl Tiles per sq. meter
Washout Pebbles .. per sq. meter
Unglazed Tiles .. per sq. meter
Granite . per sq. meter
SECTION 5.
D. Classification of
Buildings/Structures
2. b. Extra Items as Component Parts of
Buildings:

11.Special glass panels/sidings


CHB Fence
With Steel Gate... per sq.meter
With Finishing per sq.meter
With Iron Grills .. per sq.meter
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
a.Procedure for Approval of Ordinance
Prescribing the Schedule of Fair Market
Values and Revenue Measures and their
Effectivity
a.1. The procedure for approval of local
tax ordinances and revenue measures
shall be in accordance with the
provisions of R.A. No. 7160:
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
a.2. Provided, That public hearings
shall be conducted for the purpose
prior to the enactment thereof:
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
a.3. 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:
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
a.4. 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:
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
a.5. 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.
C. Procedures in the Approval
of the Schedule of Fair Market
Values
1. Legal Basis:
b. 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, That in provinces, cities
and municipalities where there are no
newspapers of local circulation, the same
shall be posted in at least two (2)
conspicuous and publicly accessible places.
SECTION 5
C. Procedures in the Approval
of the Schedule of Fair Market Values

2. Technical Aspect:

The SFMV shall be prepared on the


basis of the standard approaches to
value, such as the market or sales, the
cost or the income approach.
Consideration is made on the data gathered
from mortgages, insurance, rentals and
such other appraisal information available
to the assessors, which are evaluated and
tabulated in the prescribed forms.
SECTION 5
C. Procedures in the Approval
of the Schedule of Fair Market Values

2. Technical Aspect:

The ordinance of the SFMV for the


general revision of real property
assessments shall include the legally
approved assessment levels and the
percentages of adjustments applicable
to determine the market values of real
properties for purposes of real property
taxation.
E. Publication of the
Schedule of Fair Market Values
Upon completion of the SFMV, the same
shall be forwarded to the Sanggunian of the
province, city or municipalities in Metro Manila
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 (3) consecutive days or in
the absence, thereof, in the local newspaper, or
shall be posted in the provincial capitol, city or
municipal hall and in two other conspicuous
places therein.
F. Applicability of the
Schedule
Real property shall be valued for
taxation purposes on the basis of the
Schedule of Fair Market Values prepared for
the province, city or municipality. As far as
properly applicable, such schedule shall be
controlling, except where the property to be
assessed is not of the same kind as classified
in the schedule, or where the value is not
fixed. The same shall be valued at its market
value independent of said schedule.
G. Amendment of the
Schedule of Fair Market Values
The provincial, city or municipal
assessor may recommend to the
Sanggunian concerned amendments to
correct errors in the Schedule of Fair
Market Values. The Sanggunian
concerned shall, by ordinance, act
upon the recommendation within
ninety (90) days from receipt thereof.
H. Reassessment
Due to General Revision
Reassessment of real properties covered
by general revision shall be strictly made in
accordance with the approved SFMV.

1.Individual property adjustments pursuant


to the approved SFMV shall be consistently
enforced;
2.Stripping method for land, which depth
exceeds the established standard for a
particular class of property, shall be
consistently adhered to;
H. Reassessment
Due to General Revision
3. For lands bounded by two parallel streets, the
value of the last strip shall not be lower than the
market value per square meter of the abutting
street;
4. Value adjustments based on factors not specified
in the SFMV, such as but not limited to the shape,
topography and blighted status of lands that
adversely affect the value of the property being
assessed, shall be applied;
5. In case of buildings, machinery and other
structures, already covered by existing
assessments, the Reproduction/Replacement Cost
New Less Depreciation (RCNLD) approach shall be
applied.
MR. ERWIN
TULFO

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