Revenue Code

Republic of the Philippines
City of Tagbilaran

THE SIXTH SANGGUNIANG PANLUNGSOD

ORDINANCE NO. RC – 001 Series of 1996

REVENUE CODE OF THE CITY OF TAGBILARAN

Be it ordained by the Sixth Sangguniang Panlungsod of the City of Tagbilaran in session duly assembled that:

CHAPTER 1. GENERAL PROVISIONS

Article A. Short Title and Scope of this Code

SECTION 1A.01. Title. This ordinance shall be known as “The 2010 Revised Revenue Code of the City of Tagbilaran.”
SECTION 1A.02. Scope and Application. This code shall govern the levy, assessment, and collection of all city taxes, fees, charges, and other impositions within the territorial jurisdiction of the City of Tagbilaran.

Article B. Definition and Construction of Provisions

SECTION 1B.01. Definitions when used in this Code.

(a) Business means trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit.
(b) Capital Investment is a capital which a person employs in any undertaking, or which he contributes to a capital of a partnership, corporation, or any juridical entity or association in a particular taxing jurisdiction.
(c) Charges refer to pecuniary liability as rents or fees against persons or property.
(d) Cooperative is a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
(e) Corporation includes partnerships, no matter how created or organized, joint-stock companies, joint accounts (cuentas en participacion), associations or insurance companies but does not include general professional partnerships and a joint venture of consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal, and other energy operations pursuant to an operating or consortium agreement under a service contract with the government. General professional partnerships are partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business. The term resident foreign when applied to a corporation means a foreign corporation not otherwise organized under the laws of the Philippines but engaged in trade or business within the Philippines.
(f) Countryside and Barangay Business Enterprise refers to any business entity, association or cooperative registered under the provisions of Republic Act Number Sixty-Eight Hundred Ten (RA 6810) otherwise known as “Magna Carta for Countryside and Barangay Business Enterprises (Kalakalan 20).”
(g) Fee means a charge fixed by law or ordinance for the regulation or inspection of a business or activity.
(h) Gross Sales or Receipts includes the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and deposits or advance payments actually or constructively received during the taxable quarter for the services performed or to be performed for another person excluding discounts if determinable at the time of sales, sales returns, excise tax, and value-added tax (VAT).
(i) Levy means an imposition or collection of an assessment tax, tribute, or fine.

(j) License or Permit is a right or permission granted in accordance with law or by a competent authority to engage in some business or occupation or to engage in some transaction.
(k) Operator includes the owner, manager, administrator or any other person who operates or is responsible for the operation of a business establishment or undertaking.
(l) Persons means every natural or juridical being, susceptible of rights and obligations or of being the subject of legal relations.
(m) Privilege means the value of the consideration, right or immunity granted as a peculiar benefit, advantage or favor.
(n) Rental means whether in money or otherwise, given for the enjoyment or use of a thing.
(o) Residents refer to natural persons who have their habitual residence in the city where they exercise their civil rights and fulfill their civil obligations, and to juridical persons for which the law or any other provision creating or recognizing them fixes their residence in a particular city. In the absence of such law, juridical persons are residents of the city where they have their legal residence or principal place of business or where they conduct their principal business or occupation.
(p) Revenue includes taxes, fees and charges that a state or its political subdivision collects and receives into the treasury for public purposes.
(q) Services means the duties, work or functions performed or discharged by a government official, or by a private person contracted by the government, as the case maybe.
(r) Tax means an enforced contribution, usually monetary in form, levied by the law-making body on persons and property subject to its jurisdiction for the precise purpose of supporting governmental needs.
(s) Wharfage means a fee assessed against the cargo of the vessel engaged in foreign or domestic trade based on quantity, weight, or measure received and/or discharged by vessel.

SECTION 1B.02. Words and Phrases not herein expressly defined. Words and phrases embodied in this Code not herein specifically defined shall have the definitions as found in RA 7160 known as the Local Government Code of 1991.

SECTION 1B.03. Rules of Construction. In construing the provisions of this Code, the following rules of construction shall be observed unless otherwise inconsistent with the manifest intent of the said provisions, or when applied they would lead to absurd or highly improbable results.

(a) General Rule. All words and phrases shall be construed and understood according to the common and approved usage of the language; but technical words and phrases and such other words which may have acquired a peculiar or appropriate meaning in this Code shall be construed and understood according to such technical, peculiar or appropriate meaning.
(b) Gender and Number. Every word in this Code importing the masculine gender shall extend to both a female and male. Every word importing the singular number, shall extend and apply to several persons or things and every word importing the plural number shall extend and apply to one person or thing as well.
(c) Reasonable Time. In all cases where any act is required to be done within a reasonable time, the same shall be deemed to mean such time as may be necessary for the prompt performance of the act.
(d) Computation of Time. The time within which an act is to be done as provided in this Code or in any rule or regulation issued pursuant to the provisions thereof, when expressed in days, shall be computed by excluding the first day including the last day, except if the last day falls on a Sunday or a holiday in which case the same shall be excluded from the computation, and the next business day shall be considered the last day.
(e) References. All references to Chapters, Articles, Sections, are to the Chapters, Articles, Sections in this Code, unless otherwise specified.
(f) Conflicting Provisions of Chapters, or Articles. If the provisions of different Chapters or Articles conflict with or contravene each other, the provisions of each Chapter or Article shall prevail as to all specific matters and questions involved therein.
(g) Conflicting Provisions of Sections. If the provisions of different Sections in the same Article conflict with each other, the provisions of the Section which is last in point or sequence shall prevail.

SECTION 2A.01. Scope. This title shall govern the administration, appraisal, assessment, levy and collection of real property tax.

SECTION 2A.02. Definitions. When used in this Chapter;

(a) Acquisition Cost for newly-acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of the machinery to its present owner, plus the cost of transportation, handling, and installation at the present site.
(b) Actual Use refers to the purpose of which the property is principally or predominantly utilized by the person in possession thereof.
(c) Ad Valorem Tax is a levy on real property determined on the basis of a fixed proportion of the value of the property.
(d) Agricultural Land is land devoted principally to the planting of trees, raising crops, livestock and poultry, dairying, salt making, inland fishing and similar aquacultural activities, and other agricultural activities, and is not classified as mineral, timber, residential, commercial or industrial land.
(e) Appraisal is the act or process of determining the value of property as of a specific date for a specific purposes.
(f) Assessment is the act or process of determining the value of property, or proportion thereof subject to tax, including the discovery, listing, classification, and appraisal of properties.
(g) Assessment Level is the percentage applied to the fair market value to determine the taxable value of the property.
(h) Assessed Value is the fair market value of the real property multiplied by the assessment level. It is synonymous to taxable value.
(i) Commercial Land is a land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential land.
(j) Depreciated Value is the value remaining after deducting depreciation from the acquisition cost.
(k) Economic Life is the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized.
(l) Fair Market Value is the price at which a property may be sold by a seller who is not compelled to sell and bought by a buyer who is not compelled to buy.
(m) Improvement is a valuable addition made to a property or an amelioration in its condition, amounting to more than a mere repair or replacement of parts involving capital expenditures and labor, which is intended to enhance its value, beauty or utility or to adapt it for new or further purposes;
(n) Industrial Land is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, timber, mineral or residential land.
(o) Machinery embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily, to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly, and exclusively used to meet the needs of the particular industry, business or activity and which by their very nature and purpose are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes.
Machinery which are of general purpose use including but not limited to office equipment, typewriters, telephone equipment, breakable or easily damaged containers (glass or cartons), microcomputers, facsimile machines, telex machines, cash dispensers, furniture and fixtures, freezers, refrigerators, display cases or racks, fruit juice or beverage automatic dispensing machines which are directly and exclusively used to meet the needs of a particular industry, business or activity shall not be considered within the definition of machinery under this Rule.
Residential Machinery shall include machines, equipment, appliances or apparatus permanently attached to residential and improvement or those immovable by destination.
(p) Mineral Lands are lands in which minerals, metallic or non-metallic, exist in sufficient quantity or grade to justify the necessary expenditures to extract and utilize such materials.
(q) Reassessment is the assigning of new assessed value to property, particularly real estate, as the result of a general, partial, or individual reappraisal of the property.
(r) Remaining Economic Life is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless.
(s) Remaining Value is the value corresponding to the remaining useful life of the machinery.
(t) Replacement or Reproduction Cost is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable substitute property, or the cost of reproducing a new replica of the property on the basis of current prices with the same or closely similar material.
(u) Residential Land is land principally devoted to habitation.

Article B – Real Property Taxes

     SECTION 2B.01. Imposition of the Basic Real Property Tax. There is hereby levied an annual ad valorem tax at the rate of one point ten percent (1.10%) on the assessed value of real properties such as lands, buildings, machineries and other improvements affixed or attached to the real properties located in the City of Tagbilaran.

     SECTION 2B.02. Additional Levy on Real Property for the Special Education Fund (SEF).There is hereby levied an annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property 6 tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF). SEC

     SECTION 2B.03. Exemptions from Real Property Tax. The following are exempted from payment of the basic real property tax and the SEF tax:

(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real properties owned by duly registered cooperatives as provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environmental protection.
Except as provided herein and pursuant to Section 234 of the LGC, any exemption from payment of real property tax previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including all government-owned controlled corporations are hereby withdrawn effective January 1, 1992.

     SECTION 2B.04. Time of Payment. The real property tax herein levied together with the additional levy on real property for the Special Education Fund shall be due and payable on the first day of January. The same may, however, at the discretion of the taxpayer, be paid without interest/penalty in four (4) equal installments. The first installment, on or before March 31; the second installment, on or before June 30; the third installment on or before September 30; and the last installment, on or before December 31.

Both the basic tax and the additional one percent (1%) tax for SEF must be collected simultaneously. Payments of real property taxes shall first be applied to prior years delinquencies, interest and penalties, if any, and only after said delinquencies are settled may tax payments be credited for the current period.

     SECTION 2B.05. Tax Discount for Advance and Prompt Payment. Tax discount is hereby granted to taxpayers in the following schemes: (Ordinance No. RC-024)
1) 20% discount for advance payment if real property taxes shall be paid annually on or before January 31 of each year, provided there is no delinquency.
2) 10% discount for prompt payment of real property taxes if paid on or before the deadline of each quarter, provided there is no delinquency on the previous years. If
paid after the deadline a 2% monthly penalty shall be added to the yearly tax but not to exceed 36 months.

     SECTION 2B.06. Appraisal of Real Property. All real property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the city in accordance with the rules and regulations promulgated by the Department of Finance for the classification, appraisal, and the assessment of real property, pursuant to the provisions of the Local Government Code.

     SECTION 2B.07. Declaration of Real Property by the Owner or Administrator. It shall be the duty of all persons, natural or juridical owning or administering real property, including the improvements therein, within the City of Tagbilaran or their duly authorized representative, to prepare, or cause to be prepared, and the file with the City Assessor, a sworn statement declaring the true value of their property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. Such declaration shall contain a description of the property sufficient in detail to enable the assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein referred to shall be filed with the City Assessor once every three (3) years during the period from January first (1st ) to June thirtieth (30th) commencing with the calendar year 1992.
For this purpose, the City Assessor shall use the standard form known as Sworn Declaration of Property Values prescribed by the Department of Finance. The procedures in filing and safekeeping thereof, shall be in accordance with the guidelines issued by the said Department.
Property owners or administrator who fail to comply with this provisions shall be subject to a fine of Five Hundred Pesos (P500.00).

     SECTION 2B.08. Duty of Person Acquiring Real Property or Making Improvement thereon. (a) It shall be the duty of any person, or his authorized representative, acquiring at any time real property in the city or making improvement on real property, to prepare, or cause to be prepared, and file with the City Assessor, a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier.
(b) In the case of house, buildings or other improvements acquired or newly constructed which will require building permits, property owners or their authorized representatives shall likewise file a sworn declaration of the true value of the subject house, building, or other improvement within sixty (60) days after:
(1) The date of a duly notarized final deed of sale, contract, or other deed of conveyance covering the subject property executed between the contracting parties;
(2) The date of completion or occupancy of the newly constructed building, house, or improvement, whichever comes earlier; and
(3) The date of completion or occupancy of any expansion, renovation, or additional structures or improvements made upon any existing building, house, or other real property, whichever comes earlier;

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(c) In the case of machinery, the sixty-day period of filing the required sworn declaration of property values shall commence on the date of installation thereof as determined by the City Assessor and, for this purpose, the City Assessor may secure certification from the building official or engineer or other appropriate official stationed in the City.
(d) Property owners or administrators who fail to comply with the above provisions shall be subject to a fine of Five Hundred pesos (P500.00), or an imprisonment of not more than one (1) month in case of willful neglect, or both, at the discretion of the Court.

     SECTION 2B.09. Declaration of Real Property by the Assessor. (a) When any person, natural or juridical, by whom real property is required to be declared under Section 2B.03 of Article B of this Code refuses or fails for any reason to make such declaration within the time prescribed, the City Assessor shall himself declare the property in the name of the defaulting owner, to known, or against an unknown owner, as the case may be, and shall assess the property for taxation in accordance with the provision of this Article. No oath shall be required of a declaration thus made by the City Assessor.

     SECTION 2B.10. Listing of Real Property in the Assessment Rolls. (a) The City Assessor shall prepare and maintain as assessment roll wherein real properties are listed, whether taxable or exempt, located within the territorial jurisdiction of the City of Tagbilaran.
Real property shall be listed, valued and assessed in the name of the owner or administrator, or anyone having legal interest in the property.
(b) The undivided real property of a deceased person maybe listed, valued and assessed in the name of the estate or of the heirs and devisees without designation them individually; and undivided real property other than the owned by a deceased may be listed, valued and assessed in the name of one or more co-owners. Provided, however, That such heir, devisee, or co-owner shall be liable severally and proportionately for all obligations imposed by this Article and the payment of the real property tax with respect to the undivided property.
(c) The real property of a corporation, partnership or association shall be listed, valued and assessed in the same manner as that of an individual.
(d) Real property owned by the Republic of the Philippines, its instrumentalities and political subdivisions, the beneficial use of which has been granted, for consideration or otherwise, to a taxable person, shall be listed, valued and assessed in the name of the possessor, grantee or of public entity if such property has been acquired or held for resale or lease.

SECTION 2B.11. Proof of Exemption of Real Property from Taxation. Every person, by or for whom real property is declared, who shall claim tax exemptions for such property under this Article, shall file with the City Assessor within thirty (30) days from the date of the declaration of real property sufficient documentary evidence in support of such claim including corporate, charters, title of ownership, articles of incorporation and by-laws, contracts, affidavits, certifications and mortgage deeds, and similar documents. If the required evidence is not submitted within the period herein prescribed, the property shall be listed as taxable in the assessment roll. However, if the property shall be proven to be tax exempt, the same shall be dropped from the assessment roll.

SECTION 2B.12. Real Property Identification System. All declarations of real property made under the provisions of this article shall be kept and filed under a uniform classification system to be established by the City Assessor pursuant to the guidelines issued by the Department of Finance (DOF) for the purpose.
SECTION 2B.13. Notification of Transfer of Real Property Ownership. (a) Any person who shall transfer real property ownership to another shall notify the City Assessor within sixty (60) days from the date of such transfer.
(b) The notification shall include the mode of transfer, the description of the property alienated, the name and address of the transferee.
(c) In addition to the notice of transfer, the previous property owner shall likewise surrender to the City Assessor the tax declaration covering the subject property in order that the same may be cancelled from the assessment records of the assessment records of the City Assessor. If, however, said previous property owners still owned property other than the property alienated he shall, within the prescribed sixty-day period, file with the City Assessor, an amended sworn declaration of the true value of the property or properties he retains in accordance with the provisions of Sections 2B.07 and 2B.08 of this Code.