Reinforces the imposition of “additional ad valorem
ta on idle lands, tax lands ” as pro provided ided under nder the Local Government Code (LGC) of 1991, by provinces, cities and municipality within the Metro Manila Area. Objectives of DILG-DOF JMC No. 2010-02?
• To generate more revenues for the local
government units; gov s; • To enhance local economic development at the local levels through maximization of the idle lands for productive use; • To clarify the roles and responsibilities of the N ti l Government National G t Agencies A i involved i l d in i the th implementation of this Circular. What is an Idle Land Tax? It is an ad valorem tax on idle land that is levied annuallyy on the assessed value of a real property p p y that remains uncultivated and unimproved by a property owner. Why do we need to impose additional taxes on idle land? • It is a land regulatory measure that discourages the proliferation of undeveloped p p real p properties; p • Ensures that the utilization of real property is according to its highest and best use; • Also serves as a disincentive to excessive land speculation. What are the benefits of Idle Land Tax? • Helps ensure that lands are utilized based on the principle p c p of o highest g s andd best b s use; s ; • Encourages landowners to continuously develop and maintain real properties; • Reduces the possibility of urban blight and decay; • Means additional revenues for the local government units; it • Sustains the delivery of basic government services in the locality. locality Are there LGUs which implemented idle land tax?
• There are a total of 14 LGUs (5 provinces; 8 cities;
andd the Municipality c p y ofo Pateros os in the Metropolitan opo Manila Area) which have implemented the imposition of idle land tax. • Notably, Marikina City posted a total collection of Php243.1 p million from yyear 2002 to 2009 from idle land tax imposition. What are the Legal Bases of Idle Land Tax? • A province or city or a municipality within the Metropolitan p Manila Area, mayy levyy an annual tax on idle lands at the rate not exceeding five percent (5%) of the assessed value of the property which hi h shall h ll be b ini addition ddi i to the h bbasic i real property tax. (Section 236, RA 7160) What are the Legal Bases of Idle Land Tax? • The provincial, city or municipal assessor shall make and keep p an updated p record of all idle lands located within his/her area of jurisdiction. For purposes of collection, the provincial, city or municipal i i l assessor shall h ll ffurnish i h a copy thereof h f to the provincial or city treasurer who shall notify, on the basis of such record, record the owner of the property or person having legal interest therein of the imposition p of the additional tax. ((Section 239,, RA 7160)) What are the conditions for classifying land as idle? • Lands other than agricultural, located in a city or municipality p y with more than 1,000 squareq meter in area, one half (1/2) of which remain uncultivated or unimproved by the owner of the property or person having h i llegall iinterest therein. h i What are the conditions for classifying land as idle? • Agricultural lands which are more than 1 hectare, suitable for cultivation dairying, y g inland fisheryy and other agricultural uses, one half of which remains uncultivated or unimproved by the owner of the property or person having h i llegall iinterest therein. h i • The description does not include lands planted to permanent or perennial crops with at least 50 trees/hectare and grazing lands. How is idle land determined for taxation purposes?
Idle land is determined for taxation purposes when
th provincial, the pr i i l cityit orr m municipal i ip l assessorr h has completed an inventory of all idle lands within his/her area of jurisdiction Is the tax on idle land automatic upon the enactment of the LGC? NO. The local Th l l Sanggunian S i must enact an ordinance di for f the imposition of the idle land tax and in accordance with the pertinent provisions of Sections 187, 187 188 and 189 of the Local Government Code. Is there a need to publish the enabling ordinance on idle land taxation issued by the LGU? YES. Within ten Withi t (10) days d after ft the th approval pp l off the th ordinance imposing idle land tax, all provincial, city and municipal tax ordinances or revenue measures must be published for three (3) consecutive days in a newspaper of local circulation. In case of provinces, cities and municipalities where there are no newspapers of local circulation, the same may be posted in at least two (2) conspicuous i andd publicly bli l accessible ibl places. l Are there exemptions from the imposition of tax on idle lands? YES. Ap province or cityy or a municipality p y within the Metropolitan Manila Area may exempt idle lands from additional levy by reason of force majeure, civil disturbance, natural calamity or any cause or circumstance which physically or legally prevents the owner of the property or person having legal interest therein from improving, utilizing or cultivating the same. Where does the tax on idle land go? • The proceeds of the additional real property tax on idle lands accrue to the respective p ggeneral funds of the province or city where the land is located; • In the case of a municipality within the Metropolitan Manila Area, the proceeds accrue equally to the Metropolitan Manila Authority and the municipality where the land is located. E d End