LOCAL GOVERNMENT CODE (Section 218)|

REALTY TAXATION AND ASSESSMENT

Assesment Level to be applied to the Fair Market Value of real property as fixed by Sangguniang Panlalawigan,
Sangguniang Panglungsod or Sangguniang Bayan Ordinance:

a. On Lands
Class Assessment Level
Residential 20.00%
Agricultural 40.00%
Commercial 50.00%
Industrial 50.00%
Mineral 50.00%
Timberland 20.00%

b. On Buildings and Other Structures

1. Residential
Fair Market Value Assessment
Level
Over Not Over
P 175,000 0.00%
P 175,000 P 300,000 10.00%
P 300,000 P 500,00 20.00%
P 500,000 P 750,000 25.00%
P 750,000 P 1,000,000 30.00%
P 1,000,000 P 2,000,000 35.00%
P 2,000,000 P 5,000,000 40.00%
P 5,000,000 P 10,000,000 50.00%
P 10,000,000 60.00%

2. Agricultural
Fair Market Value Assessment
Level
Over Not Over
P 300,000 25.00%
P 300,000 P 500,000 30.00%
P 500,000 P 750,000 35.00%
P 750,000 P 1,000,000 40.00%
P 1,000,000 P 2,000,000 45.00%
P 2,000,000 50.00%
 3. Commercial/Industrial
Fair Market Value Assessment
Level
Over Not Over
P 300,000 30.00%
P 300,000 P 500,000 35.00%
P 500,000 P 750,00 40.00%
P 750,000 P 1,000,000 50.00%
P 1,000,000 P 2,000,000 60.00%
P 2,000,000 P 5,000,000 70.00%
P 5,000,000 P 10,000,000 75.00%
P 10,000,000 80.00%

4. On Special Classes: The Assessment Levels for all lands, buildings, machineries and other
improvements
Actual Use Assessment Level
Cultural 15.00%
Scientific 15.00%
Hospital 15.00%
Local Water Districts, Government 10.00%
Owned or Controlled Corporation
engaged in the supply and
distribution of water and/or
generation and transmission of
electrical power

Section 233: A fixed and unifrom rate of basic real property tax can be imposed:

1. Provinces at the rate not exceeding one percent (1.0%) of the assessed value (AV) of the real property; and

2. Cities or municipality within Metropolitan Manila Area at the rate not exceeding two percent (2.0%) of the
assessed value (AV) of real property