(NAR) VOL. III NO.

4 / OCTOBER —
DECEMBER 1992

[ DOF LOCAL ASSESSMENT REGULATIONS NO. 1-92,

October 06, 1992 ]

RULES AND REGULATIONS RELATIVE TO THE CONDUCT OF

GENERAL REVISION OF REAL PROPERTY ASSESSMENTS PURSUANT
TO SECTION 201 AND 219 OF R.A. 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991

For the proper implementation of Section 219 of Republic Act No. 7160, otherwise
known as the Local Government Code of 1991, and its Implementing Rules and
Regulations issued by the Oversight Committee, particularly Articles 303 and 310
thereof, the following rules and regulations are hereby prescribed, in accordance with
Section 201 of the said Code, for the guidance and compliance of all concerned.

SECTION 1. General Revision of Assessment and Property Classification - (a) The

Provincial, city or municipal assessor shall undertake a general revision of real property
assessments within two (2) years after the effectivity of the abovementioned Code and
once every three (3) years thereafter.

(b) For this purpose, the provincial assessors, the city assessors and the municipal
assessors of Metropolitan Manila Area shall prepare the schedule of fair market values
for the different kinds and classes of real property within the territorial jurisdiction of
the province, city or municipality within one (1) year from the effectivity of the Code in
accordance with the herein rules and regulations.

(c) The general revision of assessments and property classification shall commence
upon the enactment of the schedule of fair market values but not later than two (2)
years from the effectivity of the Code. Thereafter, the provincial, city of municipal
assessor shall undertake the general revision of real property assessment and property
classifications once every three (3) years.

However, if there is no sufficient time or resources to finish simultaneously the general

revision work for all real property units (RPUs) within the territorial jurisdiction of a
particular local government unit (LUG), a partial revision may be undertaken by kind or
class of real property.

For example,

a. By Kind:

lst year — All lands

2nd year — All other real properties

 b. By Class:

lst year — All Commercial and Industrial Properties

2nd year — All Other Classes of Properties

1. Purpose of general revision of real property — A general revision of property values

serves two important purposes in addition to its primary purpose of equalizing and
updating valuation. First, it brings to light again existing properties - rediscovers many
properties which have been "lost" from the tax roll. Second, it enables the assessor to
purge from the rolls the double assessments of properties which have been destroyed
and that have accumulated through the years. It has the same purpose as the periodic
physical inventory conducted by a business establishment.

2. A general revision of real property assessments shall be considered finished or

completed when all field work in the municipality, province or city have been completed
and corresponding field sheets (FAAS) of all properties within the municipality, province
or city have been prepared and duly approved, and recorded in the record of
assessments. Subsequently, written notices of revised assessments shall be sent to real
property owners.

SECTION 2. Assessment Calendar — For the purpose of the general revision of property
assessment as provided for herein, and once every three years thereafter, the
assessment process and its component activities shall be governed by the assessment
calendar herein prescribed, as follows:
ACTIVITY BY WHOM PERIOD

1. Acceptance of Offices of Provincial, Jan. 1 to June 30

sworn statements City and Municipal of the first year.
declaring true values Assessors
of real property to be
filed by real property
owners/administrators.
2. Gathering and Offices of Provincial, July 1 to
analysis of data and City and Municipal September 30 of
preparation of Assessors the first year
preliminary Schedule
of Market Values.

3. Preparation of final Provincial and City Not later than

schedules of Market Assessors and October 15 of the
Values Municipal Assessors first year
of municipalities
within the
Metropolitan Manila
Area
4. Submittal of Provincial and City Not later than
schedules of Market Assessors and the October 31 of the
Values to the Municipal Assessors first year
Sanggunian concerned of municipalities
for enactment by within the
Ordinance Metropolitan Manila
Area

5. Enactment of Sangguniang Not later than

Ordinance adopting Panlalawigan or January 31, of the
the Schedules of Panlungsod or second year.
Market Values Sangguniang Bayan
of a municipality
within the
Metropolitan Manila
Area

6. Publication of the Sanggunian Not later than

Schedules in the concerned February 29 of the
newspaper of general second year.
circulation the
in
locality or Posting in
the Provincial Capitol,
City or Municipal Hall
and in two other
conspicuous public
places.
7. Preparation of Field Provincial, City or Not later than
Sheets, Tax Municipal Assessors September 31 of
Declarations and the second year.
Notices of
Assessments, and
mailing or delivery of
said notices to
property owners.
8. Preparation of Provincial, City or Not later than
Assessment Rolls and Municipal Assessors November 30 of
accomplishment of the second year.
Real Property Tax
Orders of Payment
(RPTOP) (Part A) by
Provincial and City
Assessors and the
Municipal Assessors of
municipalities within
MMA copies thereof
sent to Provincial, City
 and Municipal
Treasurers.

Accomplishment of Provincial, City and Not later than

Part B of RPTOPs and Municipal Treasurers December 31 of
delivery thereof to the second year
property owners.
9. Effectivity of the Not later than
revised new Real January lst of the
Property Assessments. third year
SECTION 3. General Assessment Revision, Expenses Incident thereto — The
sanggunian of provinces, cities and municipalities within the Metropolitan Manila Area
shall provide the necessary appropriations to defray the expenses incident to the
general revision of real property assessment.

All expenses incident to a general revision of real property assessments shall, by

ordinance of the sangguniang panlalawigan be apportioned equally between the
province and the municipality. The share of each municipality shall be based on the
taxable area of the municipality concerned in proportion to the entire area of the
province.

SECTION 4. Valuation of Real Property — In cases where (a) real property is declared
for the first time; (b) there is an on-going general revision of property classification and
assessment; or (c) a request is made by the person in whose name the property is
declared, the provincial, city or municipal assessor or his duly authorized deputy shall,
in accordance with the provisions of this Regulations make a classification, appraisal
and assessment of the real property listed and described in the declaration irrespective
of any previous assessment or taxpayer's valuation thereon: Provided, however, That
the assessment of real property shall not be increased oftener than once every three
(3) years except in case of a new improvement substantially increasing the value of the
said property or of any change in actual use.

1. Undeclared real property found at any time or during a general revision of real
property assessments shall be listed, classified, and valued like similar property in the
locality on the basis of the schedule of base market values, or on the schedule of base
unit construction cost in force, and assessed also like similar properties in the locality
and shall be subject to back taxes of not exceeding ten (10) years from the initial
assessment.

2. Owners of real property may request the provincial or city assessor or the municipal
assessors of municipalities within the Metropolitan Manila Area to revise the
assessment of real property, regardless of existing assessments or valuations declared
by the owner under the following circumstances:

a. If real property has suffered permanent loss of value by reason of typhoon, flood,
fire or other calamity.
 b. If improvements have been introduced to real property or there has been change
in the classification or use of property, such as agricultural lands converted into
urban subdivisions, or residential to commercial. In the absence of such new
improvements or change of use, the assessment of real property shall not be
changed during the three—year period.

c. Effectivity of assessment under the foregoing cases shall be as follows:

(1) Cancellation or reduction of assessment shall be made effective the
quarter next following the quarter during which the cause or ground
for cancellation or reduction has occurred.

(2) Increased assessment shall be made effective the year following

the year of re—assessment, i.e., revised assessment made this year
(1992) shall be made effective in 1993.

(3) No re-assessment of real property should be made in the absence

of any circumstances aforementioned.

SECTION 5. Date of Effectivity of Assessment or Re-Assessment — All assessments

made after the first day of January of any year shall take effect on the first day of the
succeeding year: Provided, however, That the re—assessment of real property clue to its
partial or total destruction, or to a major change in its actual use, or to any great and
sudden inflation of deflation of real property values, or to the gross illegality of the
assessment when made, or to any other abnormal causes, shall be made within ninety
days from the date any such cause or causes occurred, the same to take effect at the
beginning of the quarter next following the re-assessment.

a. Revision of Assessment
1. An assessment revised this year 1992 takes effect the following year 1993; that
in 1993 takes effect in 1994.

b. Total or partial destruction of real property refers to the destruction on individual

property or property within an area affected but not on the basis of a general revision.
1. Cancellation of reduction of assessments caused by total or partial destruction of
property takes effect on the first day of the quarter following the quarter in which
the total or partial destruction occurred. Thus, if property was totally or partially
destroyed on July 5, 1990, its assessment shall be cancelled or reduced effective
October 1, 1990 (fourth quarter). Accordingly, if the same property was totally
destroyed, only the first to the third installments of the taxes due for the first to
the third quarters of that year on the basis of the cancelled assessment are
collectible; if partially destroyed, only the first to the third installments of the
taxes due for the first to the third quarters of that year on the basis of the
cancelled assessment; and the fourth installment of the taxes due for the fourth
quarter of that year on the basis of the reduced assessment effective October 1,
1990, are collectible.
 2. When the property is totally destroyed, its assessment shall be cancelled by
Notice of Cancellation of Assessments; when property is partly destroyed, a
revised tax declaration shall be prepared and issued to cancel the tax declaration
covering the original assessment. On the reverse side of the revised tax
declaration, state the quarter and year instead of year only as the effectivity of
the tax.
SECTION 6. Assessment of Property Subject to Back Taxes — Real property declared
for the first time shall have back taxes assessed against it for the period during which it
would have been liable if assessed from the first in proper course but in no case for
more than ten years prior to the year of initial assessments: Provided, however, That
the back taxes shall be computed on the basis of the applicable schedule of values in
force during the corresponding period.

a. Basis for computation of back taxes not exceeding ten years — Undeclared property
if assessed is subject to back taxes for not exceeding ten years. Thus, if an undeclared
real property has never been assessed since 1980 and if assessed today, 1991 the new
assessment thereof takes effect as of 1981. The rule is: include year of assessment
when counting back taxes not exceeding ten years.

b. Undeclared real property subject to back taxes shall be classified and valued on the
basis of the schedule of base market values in force during the period the property was
undeclared and unassessed. Thus, if property has never been declared since 1980 and
is assessed today 1991, and assuming that there was only one schedule of base market
value in force from 1981 to 1992, that schedule of base market value shall be made the
basis for the computation of the market value of the property from 1981 to 1991. As
"actual use" was then made a criterion in the percentage assessment of real property,
that market value multiplied by the applicable assessment level then enforced is
equivalent to the assessed value of that property, which should be made the basis for
the computation of back taxes for the years 1981 to 1991.

SECTION 7. Undeclared Buildings and Other Improvements shall be Exempted from

Foregoing Rule — The directive of this section on the collection of back taxes on the
basis of the schedule of market values in force during the period back taxes should be
collected shall only be applied to lands, and not buildings and other structures as well
as machinery. Buildings and other structures or machinery depreciate by the passage of
time and that depreciation may be physical, functional and/or economic. Estimating
depreciation for every period is an impossible task; depreciation does not operate
uniformly and regularly on that class of property. The amount of depreciation
accumulates from year to year and is depreciated or estimated only at the time of
appraisal of the property. Due to the obvious difficulty in estimating the amount of
depreciation, undeclared and unassessed buildings and other structures or machinery
subject to back taxes shall be classified and valued according to the schedule of base
unit construction cost in use or replacement/reproduction cost of machinery at the time
of appraisal and shall be assessed like similar buildings and other structures or
machinery in the locality to derive their taxable or assessed values, which shall be
made the basis for the collection of back taxes not exceeding ten years.

SECTION 8. Back Taxes, when Subject to or not Subject to Penalties/Interest — 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 (20/0) per month or a fraction thereof from the date
of receipt of the assessment until such taxes are fully paid.

SECTION 9. Notification of New or Revised Assessments — 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 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 to such person or to the occupant in
possession, if any, or by mail to the last known address of the person to be served, or
thru the assistance of the punong barangay. (Sec. 223, id.)

a. Purpose of service of notice of assessment — Although the real property tax is levied
against the real property, it is the owner who pays the tax. After that tax is fixed, he is
entitled to hearing on the assessment of his property; notice and hearing constitute
part of due process (not strictly judicial) in taxation. If he is not satisfied with the
action of the assessor in the assessment of his property, he may, within sixty (60) days
from the date of receipt by him of the written notice of the assessment of his property,
appeal to the Board of Assessment Appeals of the province or city where the property is
located. If he does not appeal within the said period, he will be deprived of his right to
be heard in the Board.

b. To whom and where the notice shall be delivered — The written notice together with
the owner's copy of the tax declaration shall be addressed to the person in whose name
the property is declared. It may be delivered to him personally or to the occupant in
possession of the property, or by mail to the last known address of the owner thru the
assistance of the punong barangay.

If personally delivered to the owner or person in possession of the property, the person
serving the notice shall secure the signature of the owner or occupant on the duplicate
copy of the notice, with a notation of the date when notice was served and
identification, whether the recipient is the owner or occupant of the property. If
assistance of the barrio captain is secured, he should be requested to place his
signature on the duplicate copy of the notice.

If the notice of assessment is coursed through the mail, the notice of assessment and
owner's copy of the tax declaration shall be registered with return card.

For obvious reasons, the duplicate copies of the notice of assessments signed by
owners or occupants of property and the return card shall be filed in the office of the
provincial, city of municipal assessor. Those are important in ascertaining whether
appeals filed by owners of real property are filed within the reglementary period of sixty
days from the date of receipt of such notices.

The notice of assessment and owner's copy of the tax declaration shall be delivered or
mailed to property owners within thirty days from entry of tax declarations covering
assessments of property in the Record of Assessments.
c. Notices of assessment are exempt from postal charges —All real property
assessment notices or owner's copies of tax declarations sent thru the mails by the
assessor shall be exempt from the payment of postal charges or fees. (Sec. 282, id.)

Form of Notice of Assessment of Real Property, RPA Form No. 2, marked as Annex "H,"
shall be used; it may be mimeographed by assessors for their use.

SECTION 10. Actual use of real property as basis of assessment

Real property shall
—
be classified, valued and assessed on the basis of its actual use regardless of where
located, whoever owns it, and whoever uses it. (Sec. 217, id.)

A. Actual Use refers to the purpose for which the property principally or
is
predominantly utilized by the person in possession of the property. (Sec. 199(b), id.)

B. Assessment is the act or process of determining the value of the property, or

proportion thereof, subject to tax, including the discovery, listing and appraisal of
properties. (Sec. 199(f), id.)

Assessment is the determination of the value of the things subject to the tax and the
amount of the tax paid by each individual. (Dollar Savings Bank vs. United States, 86
U.S. 337, cited in Martin's Revised Administrative Code, Vol. 2, p. 493)

SECTION 1 1. Rules for Assessment of Lands —

A. 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 through an ordinance by the Sanggunian concerned.

B. Land located in areas of mixed lands uses — In an area of mixed land uses, as
residential with commercial or industrial, the predominant use of the lands in that area
shall govern the 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.

C. 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 market value of
the lot or parcel determined on the basis of the schedule of base market values.

D. Vacant lands shall be classified, valued and assessed like similar lands in the locality.

E. Agricultural land convertible into urban subdivision 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.

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.

SECTION 12. Special Properties (Lands) —

A. 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 of industrial in accordance with the schedule of base market
values determined on the basis of that schedule.

B. 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 percent (100/0) of the market values.

C. 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.

SECTION 13. Land used for Religious, Charitable or Educational Purposes -

A. 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.

B. 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 as
residential with commercial or industrial, the predominant use of lands in that area
shall govern the classification, valuation and assessment of those lands used for
religious, charitable or educational purposes.

SECTION 14. Lands Owned by the Republic of the Philippines or Any Political
Subdivisions Shall be Classified, Valued and Assessed Like Similar Lands in the Locality.

SECTION 15. Rules for Assessment of Buildings and Other Improvements — A.

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, panlungsod or the sangguniang bayan of a municipality within the
Metropolitan Manila Area, pursuant to Section 218 of the Code.

B. 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 predominant use of the building.

C. Special properties (buildings and other improvements)

1. 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.

2. Buildings 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 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.
D. 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.

E. 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.

SECTION 16. Assessment Levels Defined. —

a. Assessment level the percentage applied to the fair market value to determine
is
the taxable or assessed value of the property. (Sec. 199(g), id.)

b. Assessment level distinguished from current or effective assessment level —

When not qualified, assessment level refers to those prescribed in the Code,
otherwise known as statutory or legal assessment levels and applied to fair market
values of real property determined on the basis of the schedule of base market values
or the schedule of base unit construction cost.
Current or effective assessment level, on the other hand, refers to the level of
assessed values of real property actually sold as applied to their corresponding sales
prices during a certain period. That level may be ascertained only by conducting an
assessed sales ratio study. The study has a two-fold purpose: to ascertain whether the
statutory levels are being achieved or approximated, and whether there is uniformity in
the assessment of real property for taxation purposes in a province, city or
municipality.

Assessment levels fixed by law are affected by the rise and fall of real property
values in the market. If prices generally increase, the statutory levels would exceed the
current or effective assessment level; if prices generally decrease, the statutory levels
would fall below the current or effective assessment level.

c. Assessed or taxable value as basis of computation of tax — Market Value determined

by assessors on the basis of the schedule of base market values or the schedule of
base unit construction cost are not the ultimate basis for the computation of real
property tax. The assessment level fixed in accordance with the Code has to be applied
to the market values or real property to derive their taxable or assessed values.

SECTION 17. 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:

ASSESSMENT
CLASS LEVELS

Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%
b. On Buildings and Other Structures:

1. Residential

FAIR ASSESSM ENT LEVELS

MARKET
VALUE

Over Not Over

P175,000 P175,000 0%
300,000 300,000 10%
 500,000 500,000 200/0
750,000 750,000 2 5°/o
1,000,000 1,000,000 30°/o
2,000,000 2,000,000 3 5°/o
5,000,000 5,000,000 400/0
10,000,000100,000,000 500/0

2. Agricultural

FAIR ASSESSMENT
MARKET LEVELS
VALU E

Over Not Over

P300,000 25%
P300,000 500,000 30%
P500,000 750,000 35%
750,000 1,000,000 40%
1,000,000 2,000,000 45%
2,000,000 50°/o

3. Commercial or Industrial

FAIRASSESSMENT LEVELS
MARKET
VALUE

Over Not Over

P300,00 30%
P300,000 P500,000 35%
500,000 750,000 40%
750,000 1,000,000 50%
1,000,000 2,000,000 60%
2,000,00 5,000,000 70%
5,000,000 10,000,000 75%
10,000,000 80%
4. Timberland

FAIR ASSESSMENT
MARKET LEVELS
VALU E

Over Not Over

P300,00 45%
P300,000 P500,000 50%
500,000 750,000 55%
750,000 1,000,000 60%
1,000,000 2,000,000 65%
 2,000,00 70%
c. On Machineries

CLASS ASSESSMENT
LEVELS

Agricultural 40%
Residential 50%
Commercial 80%
Industrial 80%
d. Special Classes: Assessment level for all lands, buildings, machineries and other
improvements:
ACTUAL USE ASSESSMENT
LEVELS

Cultural 15%
Scientific 15%
Hospital 15%
Local Water District 10%
Government—owned or controlled corporation engaged in the supply and distribution of
water and/or generation and transmission of electric power

e. Assessment levels above shall be applied initially during the first general revision of
real property assessments to be undertaken pursuant to Section 219 of the Code. Thus,
the assessment levels applied in the 1981-84 general revision of real property
assessments that took effect on July 1987, shall be maintained until after the first
general revision of real property assessments under the provision of said Section 219 of
the Code, which local assessors are mandated to conduct, shall have taken effect.

f. Increase/decrease of assessment levels — The assessment levels for the different

classes of real property may be increased or decreased at rates to be fixed by
ordinance of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang
bayan of a municipality within the Metropolitan Manila Area, provided, however, that in
no case shall such increase or decrease of the assessment levels shall be made
effective in between general revision of assessment periods.

SECTION 18. Preparation of Schedule of Market Values — Before any general revision
of real property assessment is made, there shall be prepared for each municipality or
city, a schedule of market values for different classes or real property therein situated
in such form and detail as shall be prescribed herein.

Said schedule, together with the abstract of the data on which it is based, shall be
submitted to the sanggunian concerned for enactment by ordinance not later than the
thirty-first of October immediately preceding the period the general revision of
assessments shall be undertaken and prescribed in the assessment calendar herein.
The sanggunian concerned shall have ninety (90) days from the date of receipt within
which to review said schedule to determine whether it conforms with the regulations
set forth herein.

SECTION 19. Duty of the Provincial/City/Municipa/ Assessor — It is the duty of all

provincial and city assessors, and municipal assessors of the municipalities within the
Metropolitan Manila Area to prepare or cause to be prepared a schedule of market
values as the basis for the appraisal and assessment of lands, buildings and other
improvements situated in their respective jurisdiction within one (1) year after the
effectivity of the Code and every three (3) years thereafter.

Market values for real property situated within the province shall be prepared by the
provincial assessors who shall be assisted by the municipal assessors of municipalities
within his jurisdiction.

SECTION 20. Scheduled Reflective of Fair Market Value — The schedule of market
values of real property shall reflect the fair market values of real properties in the
locality, irrespective of the manner in which they are actually used.

SECTION 21. Approaches Used to Estimate Values — As discussed in Section 34 hereof,

to estimate value, three approaches may be used in the construction of the schedule of
fair market values. Sales Analysis Approach (also called Market Date Approach), the
Income Capitalization Approach, and the Replacement or Reproduction Cost Approach.

A. Under the Sales Analysis Approach, the price paid in actual market transactions are
considered. It requires the accumulation of valid sales data. Such data can be secured
from the Office of the Registrar of Deeds and notaries public, who are required under
Section 278 of the Code to furnish the provincial, city or municipal assessors with
copies of all contracts, conveying, leasing, or mortgaging of real property, received or
acknowledged before them. Other evidences of market values to augment sales data
re: bids, offers to sell, opinions of informed real estate appraisers, brokers, salesmen,
dealers or bank officials. Values declared by property owners or administrators
embodied in sworn statements filled pursuant to Section 202 of the Code fully
evaluated, may also be considered as additional source of information of Market Data
Analysis.

In the absence of unavailability of valid sales data, price indices of real property
situated in the different provinces, cities and municipalities, compiled in the National
Statistics Office and the Economic Research Division of the Central Bank of the
Philippines, may be used as primary basis in computing the fair market value that will
be incorporated in the schedule of market values.

1. Analysis of Sales Transactions — The elements that enter into sales transactions
should be analyzed thoroughly, to determine the relationship between the amount of
consideration contained therein and the current value of subject property. Only sales
transactions which meet more or less the following criteria shall be considered for the
sale analysis:

a. The date of the transaction must be reasonably near the general assessment
date. Sales transactions for the current year or preceding year, if adequate, would
also serve as a good basis for studies on trends of market values.
 If the data derived therefrom are inadequate, studies may extend to preceding
year, but in no case shall it be for more than three (3) years from the general re-
assessment date.

b. Type of conveyance representing a normal transaction is one which envisions

willing, able and well well—informed, buyers and sellers. Quitclaims, transfers
between relatives, inter-related corporations and the like, should not be
considered.

c. The amount of consideration reflects a strong presumption of the fair market

value of the property involved.

2. Abstraction Method — Where sales cover land and improvements, a method called
abstraction method is used to estimate value of land. The value of the improvement is
first estimated pursuant to Section 210 of the Code and later deducted from the total
sales of the property to derive the land price which, when divided by the area of the
land, result in the estimated price per hectare or per square meter. For this process to
have validity, as in other techniques for estimating value, it has to be applied to sales of
similar real properties so that a range of value may be prepared as basis for studying
fair market value for purposes of construction of the schedule of market values.

B. Income Capitalization Approach. — Is a direct approach to estimate the value of

property. It is based on the theory that the value of an income producing property is no
more than the return derived from it. It requires an analysis of the income produced by
a property in order to estimate the sum which might be invested in the purchase of the
property. A detailed financial study must be made of the property. Gross annual income
is either determined from actual figures or is estimated. Annual expense figures are
obtained from the owner. The income, operating expenses and fixed charges of the
subject property are analyzed and the expenses derived thereof are the subtracted
from the gross income. The resultant net income capitalized at a rate which the
investor of the property can expect as reasonable return or interest prevailing in the
locality. The capitalized value of the income represents the present value of the
property.

Income method may be utilized to check results derived from sales analysis approach
in the case of rental or income producing property.

C. Reproduction Cost (New) Approach — This is a factual approach used exclusively in

appraising man-made improvements such as buildings and other structures. This
method depends on guides and standards, based on such data as materials and labor
costs.

The "reproduction or replacement cost approach" makes use of a value estimate of

reproducing a new replica property within the same or closely similar materials on the
basis of current construction materials and labor costs. Unit base construction cost is
developed on a per square meter or per cubic meter basis for typical buildings or
structures. The unit cost is multiplied by the ground area or volume, as the case may
be, of the subject structure to derive its total reproduction or replacement cost,
allowance for depreciation is deducted to arrive at the depreciated cost of subject
property.

1. Quantitative Analysis Method — The schedule of unit base construction cost for
buildings shall be established by the quantitative analysis method of the reproductions
cost (new) approach. A base unit cost for each type and sub-typed of typical buildings
in the province or city or municipality shall be established.

By this method, a detailed inventor of all materials and labor that went into the finished
buildings is made.

The first step in this method is collection or preparation of plans and specifications for
adopted typical (sample) buildings, representing each type. Data on cost of
construction materials prevailing in the city or province or municipality shall then be
gathered and listed. Labor cost and others that contribute to the construction cost may
be estimated by proper consultation with building contractors, engineers, architects and
labor agencies.

From the plans and specifications, materials and labor quantities are then computed for
all parts of the structures. The materials cost shall be determined by applying the price
for building materials computed from the material quantities that went with finished
buildings. The amount added to the estimated labor cost and miscellaneous expenses,
results in the total cost miscellaneous expenses, results in the total cost of the subject
building. The base unit cost shall be then determined by dividing this total cost by the
average area in the square meters of the subject structure.

SECTION 22. Coverage of the Schedule of Market Values for Urban Lands — As much
as possible, the schedule of market values for urban lands which comprises principally
residential, commercial and industrial lands, shall cover the full extent of areas in the
city of municipality.

The said schedule shall be in the form as shown in Annex "A"* attached herein.

SECTION 23. Sub-Classification of Residential, Commercial and Industrial 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
depend 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 sub-
classification may be, as much as possible, guided with the criteria herein attached
marked as Annex "E". The number of sub—classes 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 suit 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 urban areas defined hereof may not be sub-classified 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.

For this purpose, separate urban unit value map shall be prepared for every barangay
concerned. This will form an integral part of the schedule of market values.

SECTION 24. Highly or Fully Developed Residential Subdivisions — In cases of highly or

fully developed residential subdivisions, a schedule of base unit market values may be
established independently on the basis of the exclusive sales analysis on the lots of
such subdivisions. The lots of these subdivisions may not be sub-classified in
accordance with the criteria established. In this case, a schedule of base land values
shall be established depending on the influence of physical development and facilities
particularly those highly or fully developed residential subdivisions.

SECTION 25. Modifications for Variations (Urban Lands) — Theoretically, in establishing

unit base values, we eliminate such value factors as size, shape, location with respect
to public ways, and topography because they are generally the points of variation that
every parcel of land nearly has, in relations to a standard parcel and with one another.
This is especially true with respect to developed urban areas, and it is necessary to
make specific adjustments in the valuation of individual parcels for the eliminated
factors. Specifically, modifications may be for the depth, corner, alley, irregular shape,
and topography. It is noteworthy to consider, that the importance of these modifications
depend upon the degree to which they are reflected on the local real estate market. It
is safe to assume, nevertheless, that depth is one of the many factors that is commonly
reflected in the market and must be considered unsparingly.

SECTION 26. Depth Influence and Standard Lot Depth — It is a recognized fact that the
urban lot value tapers from street frontage to the rear. The nearest portion or strip to
the street has the highest value and the value of each successive parallel strip across a
given lot decreases as distance to street increases. This brings about the necessity of
adopting a standard depth for each residential or commercial land. Considering that
individual lots used for industrial purposes are generally large in area, standards depth
for industrial lands may not be considered.

The standard depth may be established after careful study of various depths in the
locality. If, for instance the dominant or prevailing lot depth among the residential lots
in the city or municipality is 20 meters, this depth maybe fixed as a standard depth for
residential lands within the locality. Standard depth for commercial lands shall be
established in similar manner.

SECTION 27. Unit Value Construction — Lot values taken from sales transactions shall
be translated into value per square meter attributed to the frontage strip within the
standard depth. For a lot conforming to the established standard depth and space
(rectangular), estimating value per square meter would be an easy process. This is
done by merely dividing the total purchase price by its area. However, the same
becomes complicated if a lot is not rectangular in shape whose depth exceeds the
standard.

For instance, a residential lots of 20 by 75 meters or 1500 square meters in area, is

sold at P100.00 per square meter or P150,000.00. Suppose further that the standard
depth established for residential lands in the locality is 20 meters and the percentage
values are 100% for the first strip; 80% for the second strip; 60% for the third strip;
40% for the fourth strip and 20% for the remaining strip or strips. The value per
square meter of the area within each strip may be computed as follows:
STRIP WIDTH X DEPTH AREAO/o VALUE EFFECTIVE
AREA

1 20 X 20 400 100% 400 sq. m.

2 20 . X 20 400 80% 320 sq. m.
3 20 X 20 400 60% 240 sq. m.
4 20 X 15 300 40% 120 sq. m.

1,500 sq 1,080 sq
m m

The value per square meter of the first strip is equivalent to P150,000 divided by 1,080
sq.m. (Effective area) or P138.89. The unit value for the second, third and fourth strips
are P111.11 (80% of 138.89); P83.33 (60% of 138.89); and P55.66 (40% of 138.89);
respectively.

The unit sales values which corresponds to the first strip of the lots involved in the sale
analysis are the values to be entered in column 8 of DF—RPA (SMV) Form No. 1
attached herewith, marked as Annex "B”*.

SECTION 28. Use of Working Map — Preparatory to the final computation of the
schedule of unit base market values for urban lands, the assessor should be prepare an
outline map on which to record information of the determined unit land values. A map
must be drawn to scale, to cover the full extent of the continuous urban areas in the
city or municipality and show all road system, waterways, railroad lines, including all
principal landmarks within the area. Such map is of a great importance in determining
comparative land values.
SECTION 29. Establishing Unit Base Market Value for Each Sub-Class of Residential,
Commercial and Industrial Lands — A unit base market value for each sub—class of
residential, commercial and industrial lands shall be established and reflected in the
schedule of market values.

SECTION 30. Grouping Unit Sales Values by Class — Preparatory to the computation of
the final base unit values, each sub—class (say first class residential) shall be
segregated from the record of sales entered in DF-RPA (SMV) Form No. 1 and
subsequently entered exclusively in the prescribed form known as DF—RPA (SMV) Form
No. 1-A, marked as Annex "C"*. Only sales values involving non-corner lots located
along streets or roads, with more or less common elevation, shall be included in cases
of sales analysis to establish unit market values for urban lands. In view of the
influence on values peculiar to them, corner and interior lots shall be excluded in the
sales analysis. Sales documents used as basis in the established of values shall be
separately filed and kept for future reference.

SECTION 31. Computation for the Unit Base Market Values — The unit base market
values of a subject sub-class of land is determined by dividing the sum of the Average
and Median of the unit sales involved, by two, as illustrated in Annex "D"*.

The average is determined by dividing the sum of the sales values involved by the total
number of sales values.

The Median is the middlemost sales value among the unit sales values involved,
arranged in numerical order.

SECTION 32. Computation for the Unit Base Market Values by Income Capitalization
Approach — The unit base market value of a subject sub-class of land is determined by
dividing the net income attributable to the land, which is the difference of the gross
land income and the corresponding operating expenses by the appropriate
capitalization rate.

For instance, a 400 square meter commercial lot is rented at P1,000.00 a month.
Determine its estimated value. The interest rate prevailing in the area is 20% (Bank
Rate).

Solutions:
1. Gross Income - P1,000.00
x 12 mos.
P12,000.0(=)

2. Less: Expenses 0

3. Net Income P12,000.00

4. Divided by 20%
Capitalization Rate
 5. Lot Value P60,000.00
6. Divided by Lot 400 sq. m.
Area

7. Lot Value per P150.00

square meter
SECTION 33. Corner Influence — The location of a lot on a street intersection enhances
its value. The value of corner lots exceed the value assigned to lots along streets sides
because of added frontage provided for by the side street. The simplest method of
appreciating corner influence is to assign a percentage value to corner lots, on the
basis of the value of one-street frontage lots.

The percentage of corner influence may be determined in the following manner:

a. Average price per square P130.00

meter of corner first class
residential lots ...............................

b. Average price per square P100.00

meter of lots along street sides
for first class residential ...........

c. Difference 30.00

d. Corner Influence for First Class

Residential lots 30/100 = 30%
The average of the corner influence of at least two (2) sub-classes of residential land
(say lst and 2nd Classes) will be adopted as corner influence on lands classified as
residential in the Schedule of Values.

The percentage of corner influence for commercial lands shall be determined in similar
manner. Corner influence however, shall not be considered on industrial lands.

SECTION 34. Setting up the Unit Value Map — Together with the selection of unit
measure and standard depth as preliminary steps to unit value establishment, is the
preparation of unit land value map upon which information and conclusions of value
may be recorded graphically. This map is very essential in making comparisons of
value. The first step in setting up unit land value map is to construct a block outline
map. The tax map drawn to a much smaller scale showing a large area of all the tax—
mapped district is preferable. Such map should only indicate street lines and other
principal landmarks such as rivers, railroad lines and the like, as well as government
buildings, known private buildings, parks, etc. The main purpose is to have as much
white space as possible on which to record information of value and established unit
base market values. It is often necessary to exaggerate the street width at the expense
of the block areas and to indicate the street names and other identifying information
outside the street areas.

SECTION 35. Coverage of the Schedule of Market Value for Agricultural Lands. — The
schedule of market value for agricultural lands shall cover all agricultural lands
predominantly rural in nature that are beyond potential urban limits and generally at a
great distance from the poblacion of the city or municipality.

The schedule shall be in a form as shown in Annex "F"* attached herein.

SECTION 36. Classification of Agricultural Lands — The principal crop used shall be the
basis of classification of agricultural lands such as rice land, corn land, coconut land and
other crop land, that is predominantly developed in the locality. Each class shall further
be sub-classified into the first, second, third or more classes on the basis of their
productivity.

The productivity classification of several crop lands shall be prepared based on

information which may be obtained from the Department of Agriculture.

The productivity classification of crop lands shall be determined by the assessor on the
basis of the annual yield per hectare. Each crop land should use the applicable unit of
measure, such as, cavans of palay, picul for sugar, kilos for fishponds, etc. For fruit
bearing trees, the number of fruits shall be the basis of measure.

In setting up the ranges of annual yield in each class, the Assessor should see to it that
the ranges are reasonable.

SECTION 37. Establishing the Schedule of Unit Base Market Values for Agricultural
Lands — The schedule of unit base market value for the different classes of agriculture
lands shall, as much as possible, be established by the sales analysis approach.
However, for lack of market data, the income capitalization approach may be resorted
to.

In sales analysis method, unit sale values involving one class of crop shall be entered
separately in a prescribed form known as DF—RPA (SMV) Form No. 2—A attached
herewith marked as Annex "G"* and consequently adjusted with location factor as
illustrated in Annex "H,"* also attached herewith.

The following guides are suggested for location adjustment on values for agricultural
lands:

Type of Roads:

(a) Provincial or National Highways — No deductions from basic value 100%

(b) For other all-weather roads — 3% deduction from basic value 100%

(c) Dirt Roads — 6% deduction from basic value 100%

(d) For no road outlet — 9% deduction from basic value 100%

Type of Location Adjustment Factors

(a) All (b) Local
Distance in Km. to: weather Roadtrading
Center
(Poblacion)
0 to 1 - - 0 - 5%
Over 1 to - 2% - O%
3 _

Over 3 to - 4% —
2%
6 _

Over 6 tO - 60/0 - 40/0

9 _

Over 9 —
- 8% —
6%
Distance of property from all-weather road, railroad stations, landing places along sea
coast and from traded center (poblacion), shall be measured from corner of the lot or
parcel nearest to such road or center.

All-weather roads include municipal, provincial, national and all other public roads
traversable by trucks, cars, and other forms of motor vehicles under any kind of
weather.

In the Income Capitalization Approach, several processes are possible, namely (a)
gross production minus production expenses per hectare (b) rental income per hectare
(c) income per hectare on sharing basis. However, income should be the basis of
capitalization value. Capitalized value which will be considered the market value of the
land, must be equal to the net income per hectare divided by the rate of capitalization.

Accordingly, this approach or estimating value, requires information on crop production

in the area and the generally expected rate of interest on money invested for the
preceding years. Crop production and average cost production may be obtained from
the Bureau of Agriculture Extensions and the Bureau of Plant Industry, thru their
respective offices, while prices of crops can be obtained from the National Food
Authority and the Department of Industry and Trade; and the rate of Interest from the
Philippine National Bank, Development Bank of the Philippines of Rural Banks.

For illustrations purposes, a sample computation for the schedule of unit base market
value for rice land through the sales analysis approach is enclosed in Annex "I".

SECTION 38. Classification of Buildings — Buildings shall generally be classified in

accordance with the structural designs for which they are intended regardless of their
actual use, such as residential, commercial, industrial, or farm house. The classification
system should embrace only such structures as are commonly found in the city or
provmce.

Under the use design classification, buildings may be grouped into the following:
A. RESIDENTIAL BUILDINGS

(a) One—family Dwelling

(b) Two-family Dwelling
(c) Multi-family Dwelling

B. COMMERCIAL BUILDINGS

(a) Store (e) Hotel

(b) Office (f) Motel
(c) Bank (9) Service Station
(cl) Theater (h) Public Garage, etc.
C. INDUSTRIAL BUILDINGS

(a) Factory
(b) Sawmill
(c) Warehouses, etc.
D. FARM HOUSES

(a) Barn
(b) Poultry
(c) Stable
(d) Hog House
(e) Green Houses, etc.

For purposes of establishing schedule of base unit construction cost, each type of
building (say one-family dwelling) shall further be grouped in accordance with the kind
and quality of material used on the constructions, such as Type I-A to B; Type II-A to D,
Type III—A to D and Type IV. Standard base specifications shall then be prepared,
defining and describing each types of building as shown in the sample hereunder:

TYPES OF BUILDINGS

I. Reinforced concrete:

a) Structural Steel reinforced concrete columns, beams, the rest same as

1-8.

b) Columns, beams, walls, floors and roofs all reinforced concrete.

c) Same as "B" but walls are hollow blocks reinforced concrete or tile
roofing.

II. Mixed Concrete:

a) Concrete columns, beams and walls — but wooden floor joists, flooring
and roof framing 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 blocks walls and G.I.
roofings.

c) Concrete columns and wooden beams, hollow block walls, wooden floor
joists, floor and roof framing; and G.I. roofing and second floor wooden
walls.

III. Strong Materials:

a) First group wooden structural framings, floorings, hollow block walls

and G.I. roofing.

b) First group wooden structural framings, floorings and hollow block walls
on the first floor and tanguile walls on the second floor and G.I. roofing.

c) First group wooden posts, girders, girts, window sills 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 substandard.

IV. The temporary makeshift structure — this is the barong—barong type

The schedule for building shall be in the prescribed form as shown in Annex "J"*
attached herein.

SECTION 39. Addition and Deduction Factors — Structures falling under one
classification are not all exact replica of each other, or of the standard adopted in the
preparation of the schedule of values. It follows therefore that their values are not
exactly equal, even if their area and classification may be the same.

To compensate for this difference in the value, a set of adjustment factors must be
prepared, to go with the schedule. It should only treat items that are commonly found
deviating from the standard and may be expressed as percentage of the base unit
construction cost listed in the schedule. Addition and deduction factors may be
prepared by the quantitative analysis method. Samples of the Addition and Deduction
Factors of the schedule of base unit cost are shown below.

EXTRA ITEMS AS COMPONENT PART OF BUILDINGS

1. Carport ................................ 30°/o of

Base Unit
Value

2. Mezzanine .......................... . 60% of

Base Unit
 Value

3. Porch .................................. 40% of

Base Unit
Value

4. Balcony .............................. 45% of

Base Unit
Value

5. Garage ............................... 45% of

Base Unit
Value

6. Terrace:
Covered ............................... 35%-40%
of Base
Unit Value
20% of
Base Unit
Value

7. Deck Roof:
Covered ............................... 35-40%
of Base
Unit Value
ZOO/0 of
Base Unit
Value

8. Basement:
Residential 70°/o Of
Base Unit
Value
20% of
Base Unit
Value

9. Pavements:
Tennis Court P50-
60.00 per
sq. m.

Concrete:
10 cm. thick P60.00
persq.
 15 cm. thick P65.00
per sq.
m.
P100.00
per sq.
m.

Asphalt:
1 Course P40.00
.......................... .

per sq.
m
2 Course .......................... . P65.00
per sq.
m.
3 Course P90.00
per sq.
m.

10. Floor Finishes:

a) Marble P220—320
Slabs ...................... .
persq.
”L
b) Marble P130-150
Tiles ........................ persq.
nm
c) Crazy Cut P100.00
Marbles ............... persq.
nL
d) P60.00
Granolithic ........................ . persq.
”L
e) P60-80
Narra ................................. persq.
nL
f) Yakal P60.00
persq.
fiL
9) Na rra/Fancy Wood P60-80
Tiles ........................ persq.
nL
h) Ordinary Wood P40.00
Tiles ............ persq.
WL

i) Vinyl Tiles P30.00

persq.
nm
P30.00
persq.
nL
 k) Unglazed P40.00
Tiles ..................... per sq.

11. Wallings:
a) Use the same rate for
floor finishing in a, b, c,
and i, as indicated above
b) Double Walling P30.00
(Ordinary Plywood per sq.
........................ m.
c) Double walling (Narra P45.00
Panelling) ..................... per sq.
m.
d) Glazed White Tiles P50.00
......... per sq.
m.
e) Glazed Colored Tiles P60.00
....... per sq.
m
f) Fancy Tiles ................... P80.00
per sq.
m.
9) Synthetic Rubble P40.00
............ per sq.
m.
h) Bricks ........................... P50.00
per sq.
m.

12. Special Panels:

a) Glass with Wooden P200.00
Frames per sq.
m.
b) Glass with Aluminum P300.00
Frames ......................... per sq.
m.
(For tinted Glass, Add) P50.00
per sq.
m.

13. Ceiling: (Below Concrete

Floor)
a) Ordinary Plywood P30.00
............... per sq.
m.
b) Luminous Ceiling P150.00
................ per sq.
m.
 c) Acoustic P140.00
per sq.
m.
P150.00
per sq.
m.

14. Fence:
a) Wood P30-4O
per sq. m

b) CHB:
10 cm. thick P50-60
per sq.
m.
.P75-85
per sq.
m.
P100.00
per sq.
m.

P150-160
per sq.
m.

P200-220
per sq.
m.

.P15.00
per sq.
m.

15. Excess Heights:

a) Residential and Commercial
...Add 20% of Base Value every
meter in excess of three (3) meters.
b) Bodega and Factory .. .......... Add
15% of Base Value for every meters
in excess of 4.50 meters.

16. Extra T & B — Ordinary Finish...

P7,000/unit

17. Foundation ......................... . P100 x

total floor area less floor area of lst
and 2nd piles driven.
 18. Piles .................................. P200.00
per linear meter of pile driven.

19. Painting .............................. If the

building is not painted, deduct ten
(10%) percent of the basic rate.

20. Second Hand Materials .......... If the building has used Second-
Hand materials, deduct five to ten (5-10%) percent.
SECTION 40. Depreciation — Buildings depreciate in value due to wear and tear, and
other factors brought about by the passage of time. Hence, it is necessary that a
schedule of base unit cost for buildings with a depreciation table for the same be
prepared by the assessor. The table may be established through the combined
observed depreciation and effective age method.

SECTION 41. Format of the Schedule of Base Unit Cost for Buildings — The schedule of
base unit cost for buildings shall be prepared in such form and manner as illustrated in
Annex "J"*.

SECTION 42. Forms to be Used and Manner of Submittal of Schedule of Market Values
— The schedule of market values for all classes of real property situated in one city or
municipality shall be prepared in accordance with the format.

The original and duplicate copies of such schedule prepared in book form (preferably
cloth bound) shall be submitted to the Sanggunian concerned for review together with
all essential materials and consecutively arranged in the following manners.

1. Letter of Transmittal

2. Schedule of Values for Residential, Commercial and Industrial lands (See Annex "A")

3. Unit Land Value Map (Residential, Commercial and Industrial Lands)

a. One for each "poblacion" or trading center of municipality in case of province.

b. One for each district or barangay in case of city

4. Statement of Sales Values of Residential, Commercial and Industrial Lands. (See

sample DF—RPA (SMV) Form No. 1 marked as Annex "B")

5. Tabulation of Sales Values for each class of Residential, Commercial and Industrial
Lands taken from DF-RPA Form No. 1 (see DF-RPA (SMV) Form No. 1-A, marked as
Annex "C")

6. Computation for the Unit Base Market Value. (See illustration example marked as
Annex "D")

7. Criteria for Sub—classification of Urban Lands situated in Residential, Commercial and

Industrial Areas. (See Annex "E")

8. Schedule of Values for Agricultural Lands. (See Annex "F")

9. Statement of Sales Values of Agricultural Lands (See Annex "G")

10. Tabulation of Unit Sales for Each Class of Agricultural Land taken from DF—RPA
(SMV) Form No. 2. (See Annex "H")

11. Computation of Unit Base Market Values on Agricultural Lands. (See Annex "I")

12. Classification of Buildings and other Improvements.

13. Schedule of Values and other Classes of Lands such as Timber and Forest Lands,
mineral, Pasture Lands, Memorial Parks or Cemetery, etc.

14. Schedule of Buildings’ Base Unit Cost. (See Annex "J")

15. Depreciation Table on Buildings and other structures.

16. Other information relevant to the establishment of Unit Base Value for lands,
buildings, and other improvements.

SECTION 43. Repealing Clause — AII rules and regulations inconsistent with the
provisions of these Assessment Regulations are hereby modified accordingly.

Adopted: 6 Oct. 1992

(SGD.) RAMON R. DEL ROSARIO, JR.

Secretary

*
Text available upon request at the Office of the National Administrative Register
(ONAR), U.P. Law Center, Diliman, Quezon City.

Source: Supreme Court E—Library

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