Pay Real Estate Taxes for 2010 before December 15 to get 20% discount

Before each year ends City government gives 20% discount for early payment of taxes for 2010.

So if you have a lot of real estate properties. Go now and send someone to pay your taxes.

Just bring a photocopy of your previous realty tax reciept.

(from LGC of 1991, RA7160)

How Much Do I need to pay in Realty Tax

1. AMOUNT OF REALTY TAX (Basic)

In provinces- not exceeding of 1% of the assessed value ((check on your tax declaration you can see the assessed value)
In cities of municipalities- not exceeding 2% of the assesed value

Special Levies (special taxes imposed to a real estate properties)

1. Special Education Fund Tax (SEF)- a special levy of 1% of the assessed value

2. On Idle Lands- A province of city or a munnicipality within the Metropolitan Manila area may levy and annual tax on idle lands at that rate not exceeding 5% of the assessed value.

What are the real estate properties considered idle lands?

a. Agricultural Lands, more than 1 hectare in area, suitable for cultivation, dairying, inland fishery and other agricultural uses one-half (1/2) of which remailn unclutivated or unimproved by the owner or the owners thereof.

b. Agricultural lands planter to permanent or perennial crops with at least fifty (50) tress to a hectare-50 trees:1hectare shall not be considered idle lands, including lands actually used for grazing purposes.

c.Lands, other than agricultural more than 1,000 sqm in area, one half (1/2) of which remain unutilized or unimproved by the owner of owners thereof.

Regardless, of land area, residential lots in subdivisions duly approved by proper authorities , the ownership of which has been transferred to individual oweners, who sahll be liable for the additional tax: Provided, however, that individual lots of such subdivisions, the ownership of which has not been transferred to the buyer shall be considered as part of the subdivision, an shall be subject to the additional tax payable by subdivision owner or operator (Sec 237 of LGC)

3. The Special Levy on idle lands does not apply to tha landowners who are unable to improve, utilize or cultivate their landds due to any of the following causes:

a. Adverse peace and order condition in the place where the land is situated.
b.Financial losses of the owner due to fire,flood, typhoon,earthquake, and other causes of similar nature;
c.Unfavorable physical factores such as rocky nature of the ground or uneven topography in the use of agricultural land which render the land unsuitable for cultivation.

4. Special Levy by Local Government Units- On lands comprised within its territorial jurisdiction specially benefited by public works projects or improvements funded by the local government unit: provided the special levy shall not exceed sixty percent (60%) of the actual cost of such projects and improvement including the costs of acquiring land and such other real property, provided special levy, shall not apply to lands exempt from basic real property tax and the remainder of the land portions of which have been donated to the local government unit concerned for the construction of such projects. (Number of annual installment to pay the special levy, not less than 5 years or more than 10 years (SEc 240,241 LGC)

Exemptions from Real Property Tax


1. Real property owned by the Republic of the Philippines or any of its political subdivision except when the beneficial use thereof has been granted to taxable person;

2. Charitable institutions, churches, parsonages, convents appurtenant thereto,mosques, and all lands, buildings, and improvements actually, directly and exclusively used for charitable religious, or educational purposes;

3. Non-profit or religious cemeteries or burial grounds;

4. Machineries and equipment that are actually, directly, and exclusively used by local water district and government owned or controlled corporations engaged in the supply of water and/or generation of electric power;

5. All real property owned by duly registered cooperatives as provided for under RA No 6938 and

6. Machineries and equipment used for pollution control and environmental protection