Friday, November 16, 2007

Section 2B.26 Fair Market Values

Section 2B.26 Preparation of Schedule of Fair Market Values

(a) Before any general revision of property assessment is made pursuant to the provision of this Article, there shall be prepared by the City Assessor a schedule of fair market values for the different classes of real property situated in Olongapo City for enactment of a separate ordinance by the Sangguniang Panlungsod. The schedule of fair market values shall be published in a newspaper of general circulation in the City, shall be posted in the City Hall, in city website and in two other conspicuous public places in the City.

(b) In the preparation of schedules of fair market values, the City Assessor shall be guided by the rules and regulations issued by the Department of Finance.

Section 2B.27 Authority of City Assessor to Take Evidence – For the purpose of obtaining information on which to base the market value of any real property, the City Assessor or his deputy may summon the owners of the properties to be affected or persons having legal interests therein and witnesses, administer oath, and take deposition concerning the property, its ownership, nature, and value.

Section 2B.28 Amendment of Schedule of Fair Market Values - The City Assessor may recommend to the Sangguniang Panlungsod amendments to correct errors in valuation in the schedule of fair market value. The Sanggunian shall act upon the recommendation within ninety (90) days from receipt thereof.

Section 2B.29 General Revision of Assessments and Property Classification

(a) The City Assessor shall undertake a general revision of real property assessment and once every three (3) years thereafter.

(b) The general revision of assessments and property classification shall commence upon the enactment of an ordinance by the Sangguniang Panlungsod adopting the schedule of fair market values.

Section 2B.30 General Revision Assessment; Expenses Incident Thereto - Expenses incident to the general revision of real property assessment shall be shared proportionately by the City, City Schools Board and the barangays. The share of the City shall be provided in the appropriation ordinance. The share of a barangay shall be based on its share of the proceeds of the real property law.

Section 2B.31 Valuation of Real Property - In cases where: (a) real property is declared and listed for taxation purposes for the first time; (b) there is an ongoing general revision of property classification and assessment; or (c) a request is made by the person in whose name the property is declared, the City Assessor or his duly authorized deputy shall, in accordance with the provisions of this Article, make a classification, appraisal and assessment of the real property and the same shall not be increased more often than once every three (3) years except in case of new improvements substantially increasing the value of said property or any change in its actual use.

Section 2B.32 Date of Effectivity of Assessment or Reassessment - All assessments or reassessment made after the first (1st) day of January of any given year shall take effect on the first (1st) day of January of the succeeding year. Provided, however, that the reassessment of real property due to its partial or total destruction, or to a major change in its actual use, or to any great or sudden inflation or deflation of real property values, or to the illegality of the assessment when made or to any other abnormal cause, shall be made within ninety (90) days from the date any such cause occurred, and shall take effect at the beginning of the quarter next following the reassessment.

Section 2B.33 Assessment of Property Subject to Back Taxes - Real property declared for the first time shall be assessed for taxation purposes for the period during which it should have been liable but in no case for more than ten (10) years prior to the date of initial assessment: Provided, however, that such taxes shall be computed on the basis of the applicable schedule of values, assessments levels or taxes rates in force during the corresponding period.

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 (2%) per month or a fraction thereof, from the date of receipt of the assessment until such taxes are fully paid.

Section 2B.34 Notification of New or Revised Assessment - When real property is assessed for the first time or when an existing assessment is increased or decreased, the City Assessor shall, within thirty (30) 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 or by registered mail or through the assistance of the Punong Barangay to the last known address of the person to be served.

Section 2B.35 Appraisal and Assessment of Machinery

(a) The fair market value of brand new machinery shall be the acquisition cost including the installation cost of freight. In all other cases, the fair market value shall be determined by dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost.

(b) If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling and installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency rate as fixed by the Bangko Sentral ng Pilipinas.

Section 2B.36 Depreciation Allowance of Machinery - For purposes of Assessment, a depreciation allowance shall be made for machinery at a rate of five percent (5%) of its cost or its replacement or reproduction cost, as the case may be, for each year of use: Provided, however, that the remaining value for all kinds of machinery shall be fixed at twenty percent (20%) of such original replacement, or reproduction cost for so long as the machinery is useful and in operation.

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