Friday, November 16, 2007

Section 2B.03 Imposition of the Basic Real Property Tax

Section 2B.03 Imposition of the Basic Real Property Tax – There is hereby levied an annual ad valorem tax on the assessed value of real property such as land, buildings, machinery and other improvements affixed or attached to real property located in the City of Olongapo at the following rate:

Class of Property Rates of Levy %
Residential 2.00%
Commercial 2.00%
Industrial 2.00%
Special 2.00%
Agricultural 2.00%
Mineral 2.00%

Section 2B.04 Additional Levy on Real Property Tax for the Special Education Fund (SEF) There is hereby levied an additional annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF).

Section 2B.05 Imposition of Additional Ad Valorem Tax on Idle Lands. There is hereby imposed an annual “ad valorem” tax on idle lands at the rate of one percent (1%) of the assessed value of the real property which shall be in addition to the basic real property tax.

For purpose of real property taxation, “idle lands” shall include taxable lands which are more than one thousand (1,000) square meters in area, one half (1/2) or more of which remains idle, unutilized, or unimproved by the owners of the property or persons having legal interest therein.

Taxable lands with buildings/structure that are not being used, including those that were declared condemned by pertinent authority and remained idle for more than a year, are covered by this section.

Regardless of land area, this Section shall likewise apply to residential lots in subdivision duly approved by proper authorities, the ownership of which has not been transferred to the buyer, shall be considered as part of the subdivisions, and shall be subjected to the additional tax payable under this section by the subdivision owner or operator. ejp

Section 2B.06 Idle lands Exempt from Tax - Exempted from the additional levy imposed in this Article are idle lands which by reason or force majeure, civil disturbance, natural calamity, or any cause or circumstances the owner or person having legal interest therein is physically or legally prevented from improving, utilizing, or cultivating the same.

Section 2B.07 Listing of Idle Lands by the Assessor - The City Assessor shall make and keep an updated record of all idle lands located within Olongapo City. For purposes of collection, the City Assessor concerned shall furnish a copy thereof to the treasurer who shall notify, on the basis of such record, the owner of the property or person having legal interest therein of the imposition of said additional tax.

The City Engineer shall furnish the City Assessor copy of the List of Condemned Buildings and List of Idle Buildings for the Assessor to properly update his records.

Section 2B.08 Classes of Real Property for Assessment Purposes – For purposes of assessment, real property shall be classified as residential, commercial, industrial, agricultural, mineral or special by the City Assessor.

Section 2B.09 Special Classes of Real Property – All lands, buildings, and other improvements thereon actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used by local water company, 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 be classified as special.

Section 2B.10 Actual Use of Real Property as Basis for 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.

Section 2B.11 Time of Payment – The real property tax herein levied together with the additional levy on real property for the Special Education Fund (SEF) and the imposition of additional ad valorem tax on idle lands shall be due and payable on the first (1st) 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, the imposition of additional ad valorem tax on idle land, and the additional one percent (1%) SEF tax must be collected simultaneously. Payment of real property taxes shall first be applied to prior year’s delinquencies, interests, and penalties, if any, and only after said delinquencies are settled that tax payments may be credited to the current period.

Section 2B.12 Tax Discount for Advance and Prompt Payment – (Based on Ordinance No. 51, Series of 1997) if both the basic real property tax, the additional ad valorem tax on idle land, and SEF tax or the whole amount of assessed taxes due in a given tax year are paid in full on or before the first working day of January of that particular year, the taxpayer shall be entitled to a twenty percent (20%) discount for "Advance Payment."

However, when taxes due on either the 1st , 2nd , 3rd and 4th quarters are paid in advance before the beginning of any particular quarter or quarters in addition to the taxes due on the current quarter, the taxpayer shall be entitled to a discount of ten percent (10%) for "Accelerated Payment."

And when taxes due within a given quarter is paid on time, which is within the particular period, the taxpayer is given a five percent (5%) discount for "Prompt Payment." Provided, that such discounts shall only be granted to properties without any delinquency.

Section 2B.13 Collection and Distribution of Proceeds – The collection of the real property tax with interest thereon, the “ad valorem” tax on idle lands, the related expenses and the enforcement of the remedies provided for in this Article or any applicable laws, shall be the responsibility of the City Treasurer. The City Treasurer may deputize the Barangay Treasurer to collect all taxes on real property located in the barangay; Provided, however, that the premium on the bond shall be paid by the City Government.

The proceeds of the real property tax, including interest thereon, the proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction, and fifty percent (50%) of the tax paid under protest in accordance with the provisions of this Article; shall be distributed as follows:

a. City Share – Seventy percent (70%) to the general fund of the City of Olongapo; and

b. Barangay Share – Thirty percent (30%) which shall be distributed among the Component barangays of the City in the following manner:
1. Fifty percent (50%) share shall accrue to the barangay where the property is located.
2. Fifty percent (50%) shall be divided equally among the remaining component barangays.

The share of the barangay shall be released directly to the Barangay Treasurer within five(5) days after the end of each quarter without the need of any further action, and shall not be subject to any lien or holdback for whatever purpose subject to such rules as may be prescribed by the Commission on Audit (COA).

The proceeds of the additional one percent (1%) SEF tax shall accrue entirely and shall be automatically released to the City School Board for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development.

Section 2B.14 Appraisal of Real Property – All 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 classification, appraisal and assessment for real property pursuant to the provisions of the Local Government Code.

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