Proposed SFMV Updating and General Revision of Real

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Proposed SFMV Updating and General Revision of Real Property Assessments City Assessor’s Office, Quezon

Proposed SFMV Updating and General Revision of Real Property Assessments City Assessor’s Office, Quezon City

Sec. 219. General Revision of Assessment and Property Classification “The Provincial, city or municipal

Sec. 219. General Revision of Assessment and Property Classification “The Provincial, city or municipal assessor shall undertake a general revision of real property assessment within two (2) years after the effectivity of this Code and every three (3) years thereafter. ” ADMINISTRATIVE ISSUANCES SECTIONS 200, 201 & 219 LOCAL GOVERNMENT CODE OF 1991

Joint Memorandum Circular (JMC) on Revision of SMVs v JMC 2010 -01 enjoins LGUs

Joint Memorandum Circular (JMC) on Revision of SMVs v JMC 2010 -01 enjoins LGUs to implement Section 219 (General Revision of Assessment and Property Classification) of the R. A. 7160 regarding the revision of property assessments and classifications. v It also prescribes the use of the Philippine Valuation Standards (DOF Dept. Order No. 3709) and Mass Appraisal Guidebook (DOF Dept. Order No. 2010 -10) in conducting the general revision of property assessments and classifications.

Commission of Audit Findings

Commission of Audit Findings

What is a Schedule of Fair Market Values (SFMV)? v It is an approved

What is a Schedule of Fair Market Values (SFMV)? v It is an approved schedule of unit base market values for different classes of real property (except machinery) prepared by local assessors as basis for computing Real Property Tax assessments (RPT) which provinces and cities are authorized to impose under the Local Government Code.

Why revise the SMV? v Mandated by law (LGC Book II, Sec. 219) v

Why revise the SMV? v Mandated by law (LGC Book II, Sec. 219) v Seeks to reflect true market levels v Updates the classification of real properties v Discovers new properties or rediscover ‘lost’ properties from the assessment roll v Corrects erroneous entries & duplications in the real property database v Rationalizes the real property tax base v Our own SMV is 20 years outdated (SP Ord. 357 S-1995 approved 12/19/1995)

Schedule of Fair Market Values per SP Ordinance 357 S-1995 Sub-Classification Ra-1 Ra-2 Ra-3

Schedule of Fair Market Values per SP Ordinance 357 S-1995 Sub-Classification Ra-1 Ra-2 Ra-3 Ra-4 Ra-5 Ra-6 Ca-1 Ca-2 Ca-3 Ca-4 Ca-5 Ca-6 Ia-1 Ia-2 Ia-3 Ia-4 Ia-5 Ia-6 Residential - 1 Residential - 2 Residential - 3 Residential - 4 Residential - 5 Residential - 6 Commercial - 1 Commercial - 2 Commercial - 3 Commercial - 4 Commercial - 5 Commercial - 6 Industrial - 1 Industrial - 2 Industrial - 3 Industrial - 4 Industrial - 5 Industrial - 6 Present BUC 3, 000. 00 2, 500. 00 2, 000. 00 1, 500. 00 1, 200. 00 500. 00 6, 000. 00 5, 500. 00 5, 000. 00 4, 500. 00 4, 000. 00 2, 500. 00 3, 000. 00 2, 500. 00 2, 000. 00 1, 500. 00 1, 000. 00

COMPARING VALUES (nearby Cities)

COMPARING VALUES (nearby Cities)

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Philam,

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Philam, Damar, West Triangle Ra-3 Residential - 3 2, 000. 00 Del Monte, Masambong, Paltok, Sta Cruz, Matalahib, etc. Ra-4 Residential - 4 1, 500. 00 Alicia, Vasra Ra-5 Residential - 5 1, 200. 00 Portion of Pagibig sa Nayon, Balingasa, other inner lots Ca-3 Commercial - 3 5, 000. 00 Trinoma, SM North EDSA, Along EDSA & Quezon Ave. Ca-4 Commercial - 4 4, 500. 00 Along Banawe, Roosevelt Ca-5 Commercial - 5 4, 000. 00 NS Amoranto, Retiro, Sgt Rivera

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Tivoli

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Tivoli Royale, Don Antonio Royale Ra-3 Residential - 3 2, 000. 00 BF Homes Subd. Ra-4 Residential - 4 1, 500. 00 Commonwealth Hts, Don Enriquez, Don Antonio Hts, Northview I & II Ra-5 Residential - 5 1, 200. 00 Sugartown, Violago Homes, Dona Juana, Parkwood, Sunnside, Villa Beatriz Ra-6 Residential - 6 500. 00 NGC Housing Projects, Villa Maloles, Ca-4 Commercial - 4 4, 500. 00 Along Commonwealth Ca-5 Commercial - 5 4, 000. 00 Holy Spirit Drive from Commonwealth to BF Homes, Capitol View Park, etc

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Ra-1 Residential - 1 3, 000. 00 Ra-2 Residential -

SITUATIONER Sub-Classification Present BUC Ra-1 Residential - 1 3, 000. 00 Ra-2 Residential - 2 2, 500. 00 Ra-3 Residential - 3 2, 000. 00 Ra-4 Residential - 4 1, 500. 00 Ra-5 Ca-1 Ca-2 Ca-3 Ca-4 Ca-5 Ca-6 Ia-2 Ia-3 Residential - 5 Commercial - 1 Commercial - 2 Commercial - 3 Commercial - 4 Commercial - 5 Commercial - 6 Industrial - 2 Industrial - 3 1, 200. 00 6, 000. 00 5, 500. 00 5, 000. 00 4, 500. 00 4, 000. 00 2, 500. 00 3, 000. 00 2, 500. 00 Sample Location Ayala Hts, Ayala Hills, Corinthian, Green Meadows, Greenwich White Plains, Blue Ridge A & B, Xavierville I & II, etc Tivoli Green, Vista Real, North Susana, New Intramuros, all lots w/in Cubao, etc Claro, Amihan, Duyan-Duyan, Bayanihan, Quirino 2 -A-C, etc. NHA Project (Pansol), Bents Ent. Subd. Araneta Center Katipunan Ave. , C-5 Rd (E. Rodriguez Jr) Mercury Ave. , EDSA (U Norte) Aurora Blvd, Kamias Rd. , 20 th Ave Along Anonas, 15 th Ave. Boni. Ave. (Santolan) Portion of E Rodriguez Jr (Bagumbayan) Calle Industria

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Laging

SITUATIONER Sub-Classification Present BUC Sample Location Ra-2 Residential - 2 2, 500. 00 Laging Handa, Sacred Heart, Paligsahan, Damayan lagi, Scout areas, Kalusugan, Mariana Ra-3 Residential - 3 2, 000. 00 Tatalon, Central, Pinyahan, etc. Ra-4 Residential - 4 1, 500. 00 Talayan Ca-1 Commercial - 1 6, 000. 00 Timog Ave. , Tomas Morato Ca-3 Commercial - 3 5, 000. 00 Quezon Ave. , EDSA, West Ave. Ca-4 Commercial - 4 4, 500. 00 Kamuning Rd, Banawe, Aurora, E Rodriguez, Roces Ca-5 Commercial - 5 4, 000. 00 Kalayaan Ave. , V Luna Ca-6 Commercial - 6 2, 500. 00 Mother Ignacia, Panay Ave. , Maguinhawa

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Sample Location Ra-4 Residential - 4 1, 500. 00 Fairview

SITUATIONER Sub-Classification Present BUC Sample Location Ra-4 Residential - 4 1, 500. 00 Fairview East & West, Lagro Subd. , North Olympus, Greenfields, N Fairview, SSS Housing, etc Ra-5 Residential - 5 1, 200. 00 Maligaya Park, San Gabriel Estate, Capri Hts. , Chudian, etc Ra-6 Residential - 6 500. 00 Aguardiente Ca-4 Commercial - 4 4, 500. 00 Along Commonwealth Ca-5 Commercial - 5 4, 000. 00 Quirino Hiway, Gen Luis fr Nova Proper to Nagkaisang Nayon Ca-6 Commercial - 6 2, 500. 00 Regalado Ave. , Dumalay, Susano Rd.

SITUATIONER

SITUATIONER

SITUATIONER Sub-Classification Present BUC Ra-2 Residential - 2 2, 500. 00 Ra-3 Residential -

SITUATIONER Sub-Classification Present BUC Ra-2 Residential - 2 2, 500. 00 Ra-3 Residential - 3 2, 000. 00 Sample Location Tierra Pura, Miranilla, Ferndale, St Charbelle Executive Vill. Congressional Vill. , Grace Village, Bellevue, Meiling QCVille, FEU Housing, Delta Vill. , Gem Subd. , Hilda Village, Carmel I & II, Gloria 16, Dona Faustina, GSIS Vill. , Metro Hts, etc Ra-5 Residential - 5 1, 200. 00 Ra-6 Residential - 6 500. 00 Ca-3 Commercial - 3 5, 000. 00 Ca-4 Commercial - 4 4, 500. 00 Ca-5 Commercial - 5 4, 000. 00 Quirino Hiway Ca-6 Commercial - 6 2, 500. 00 T Sora Ave. , Howmart, Kaingin Rd. , Oliveros, Samson Rd UP Site I & II, Sunny Villas, Saman ng mga NGOs EDSA, Along Visayas Ave. , Commonwealth, Congressional, Mindanao Ave. ,

REAL ESTATE APPRAISAL (ASSESSOR) Real estate appraisal or property valuation is the process of

REAL ESTATE APPRAISAL (ASSESSOR) Real estate appraisal or property valuation is the process of developing an estimate of the value of a real property. • It includes all of the research, data, reasoning, analysis and conclusions necessary to arrive at a “fair and equitable” value estimate, for taxation purposes. • There are requirements and detailed process that we have to follow as prescribed by existing laws, MRPAAO, and guided by the Generally Accepted Valuation Principles (GAVP) and the Philippine Valuation Standards (PVS). There are no "guesstimates" when it comes to appraisal

Compliance as to the requirement Section 212 of R. A. No. 7160,

Compliance as to the requirement Section 212 of R. A. No. 7160,

Existing and Proposed Market Values and the Resulting Changes PRESENT PROPOSED PERCENTAGE BASIC UNIT

Existing and Proposed Market Values and the Resulting Changes PRESENT PROPOSED PERCENTAGE BASIC UNIT INCREASE IN VALUE MARKET (Php/ sq. m. ) (Php/sq. m. ) VALUES CODE DESCRPITION Ca-1 Commercial - 1 6, 000. 00 40, 000. 00 566. 67% Ca-2 Commercial - 2 5, 500. 00 35, 000. 00 536. 36% Ca-3 Commercial - 3 5, 000. 00 30, 000. 00 500. 00% Ca-4 Commercial - 4 4, 500. 00 25, 000. 00 455. 56% Ca-5 Commercial - 5 4, 000. 00 20, 000. 00 400. 00% Ca-6 Commercial - 6 2, 500. 00 15, 000. 00 500. 00%

Existing and Proposed Market Values and the Resulting Changes CODE PRESENT BASIC UNIT VALUE

Existing and Proposed Market Values and the Resulting Changes CODE PRESENT BASIC UNIT VALUE DESCRPITION (Php/sq. m. ) PROPOSED BASIC UNIT VALUE (Php/sq. m. ) PERCENTAGE INCREASE IN MARKET VALUES Ia-1 Industrial - 1 3, 500. 00 20, 000. 00 471. 43% Ia-2 Industrial - 2 3, 000. 00 18, 000. 00 500. 00% Ia-3 Industrial - 3 2, 500. 00 15, 000. 00 500. 00% Ia-4 Industrial - 4 2, 000. 00 For reclassification Ia-5 Industrial - 5 1, 500. 00 For reclassification Ia-6 Industrial - 6 1, 000. 00 For reclassification

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INVENTORY OF PARCELS BY SUB-CLASS & CURRENT/EXISTING ASSESSMENT

INVENTORY OF PARCELS BY SUB-CLASS & CURRENT/EXISTING ASSESSMENT

TOTAL MARKET/ASSESSED VALUES & TOTAL TAX DUE UNDER CURRENT AND PROPOSED SMVs Current SMV

TOTAL MARKET/ASSESSED VALUES & TOTAL TAX DUE UNDER CURRENT AND PROPOSED SMVs Current SMV Total Market Value (Php) Total Assessed Value (Php) Total Estimated Tax Due (Php) Proposed SMV 146, 894, 200, 426 856, 959, 437, 000 38, 166, 142, 205 224, 159, 595, 030 1, 051, 505, 032. 85 6, 186, 547, 345. 50 At 18% & 45% Assessment Level for Residential and Commercial, respectively (without introducing any adjustments) the new SMV will have a tax due of Php 6, 186, 547, 345. 50, or a gross incremental revenue of Php 5, 135, 042, 312. 65.

POSSIBLE POLICY OPTIONS For large increases in values, the following options may be considered

POSSIBLE POLICY OPTIONS For large increases in values, the following options may be considered to mitigate their impact on real property taxes: Option 1: Adjust the assessment level Option 2: Adjust the tax rate Option 3: Phased implementation of the increase in the tax, e. g. : q 1 styear: 50% of the increase q 2 ndyear: 60% of the increase q 3 rdyear: 100% of the increase

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Sample Computations

Sample Computations

Sample Computations

Sample Computations

Sample Computations

Sample Computations

Sample Computations

Sample Computations

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BASE UNIT CONSTRUCTION COST (BUCC) FOR IMPROVEMENTS The proposed increase in Base Unit Construction

BASE UNIT CONSTRUCTION COST (BUCC) FOR IMPROVEMENTS The proposed increase in Base Unit Construction Cost are likewise well founded, and this time, a single valuation for each building type and kind was adopted, departing from the minimum-maximum bracket valuation. • Buildings are classified according to its use and construction characteristics; and • Unit value are established for its class and sub-class, together with the set of addition and reduction adjustment factors.

BUILDING TYPE AND CLASSIFICATION Type II Buildings of wood construction. Structural elements consisting of

BUILDING TYPE AND CLASSIFICATION Type II Buildings of wood construction. Structural elements consisting of any of the materials permitted, nipa house, and similar structures. Buildings of wood construction with protective fire-resistant materials and one-hour fire resistive throughout. Permanent non-bearing partitions may use fire-retardant treated wood within the framing assembly. Type III Buildings of masonry and wood construction. Structural elements may be any of the materials permitted by the National Building Code; Provided that the building shall be one-hour fire resistive throughout. Exterior wall shall be of incombustible fire-resistive construction. Type IV Buildings of steel, iron, concrete, or masonry construction. Walls, ceilings, and permanent partitions shall be of incombustible fire resistive construction. Permanent non-bearing partitions of one-hour fire resistive construction may use fire retardant treated wood within the framing assembly. Type V Buildings that are fire-resistive. The structural elements are of steel, iron, concrete, or masonry construction. Walls, ceilings, and permanent partitions are of incombustible fire-resistive construction. Though we still have to refer and adhere to the sub-classifications and various types mentioned in the Manual on Property Appraisal and Assessment, only with slight modification considering current building designs.

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

BASIC UNIT CONSTRUCTION COST OF BUILDING & OTHER STRUCTURES

COMPARATIVE FIGURES

COMPARATIVE FIGURES

General Revision of Property Assessments v is the process of updating all real property

General Revision of Property Assessments v is the process of updating all real property records of the LGU for real property taxation purposes using the updated SMV.

THANK YOU. . We are now ready for your questions

THANK YOU. . We are now ready for your questions