1. Real property tax is a specific tax based on the area of the real property.

T
2. The local government code provides that real property must be appraised at book values of the
property. F
3. If the landowner does agree with the agree with the special assessment imposition, he can
appeal it to the Local Board of Assessment Appeals. T
4. Local fees, charges and taxes including real property taxes shall accrue exclusively to the local
government units. T
5. A parcel of land in a subdivision in Lapulapu City has been turned over to the buyer but he did
not use it and he was assessed for idle land tax. Assuming that the assessed value of the
property is P500,000, how much is total of all the necessary payments to the LGU if he pays
them exactly on the deadline? (answer must all be numbers, no peso sign, no commas, no
decimals and no extra spaces in between numbers) 35k
6. Special assessment on lands benefitting from public improvements is considered a tax. T
7. For idle lands in a subdivision to be considered as such, it must more than 1,000 square meters
in area and half of it remain unutilized. F
8. The local government code provides that only a city or province or a municipality within Metro
Manila area may levy real property tax. T
9. A repair shed is not essential for the conduct of a transport business, thus, if constructed on a
rented land, it would not be considered as real property for real property taxation purposes. T
10. Sugar mills with appropriate machinery is subject to real property tax. T
11. Real property taxes are local taxes and not national taxes. T
12. For real property tax collection of a city, how much % shall accrue to the general fund of the city?
70%
13. ?
14. Gasoline statement equipment and machineries are subject to real property tax. F
15. Power barges are treated as real property for real property taxation purposes. T
16. The basic real property tax for a property in a province should not exceed 1% of its assessed
value. T
17. Property which are merely incidentals and acquired or used for expediency to facilitate or
improve services are part of the real property. F
18. The City Government of Manila may not impose: Special levy on lands within its territory
specially benefitted by public works funded by it at 80% of the actual cost of the project
19. Agricultural lands used for grazing purposes will not be considered idle land. T
20. Personal property under the civil law may be considered as real property for purposes of taxes
where the property is an essential and principal element to the conduct of the business. T
21. Real property actually and exclusively used for religious, charitable or educational purposes shall
be subject to real property tax if its owner is a taxable person. F
22. The LGU can enter into an agreement with a private entity for the collection of real property
taxes in which it will be compensated on a commission basis. F
23. Before enactment of an ordinance imposing a special levy, the sanggunian concerned shall
conduct a public hearing thereon. T
24. Real property tax is an indirect tax. F
25. Real property taxes are direct taxes imposed on the privilege to use real property such as land,
building, machinery and other improvements. T
26. Taxes are levied on land, persons, property, income or businesses while special assessment are
levied purely on land benefitted by public improvement.
27. Oil companies such as Caltex and Shell install underground tanks in the gasoline stations located
on land they lease from others. Are these underground tanks considered real property for real
property taxation purposes? Yes
28. If a personal property is essential in the conduct of business, it will be treated as real property
subject to real property tax. T
29. The enactment of RA7160 was based on a constitutional mandate provided for under Article X,
Section 3 of the 1987 Philippine Constitution. T
30. Benjie leases a parcel of land from Chit for a period of ten years. Benjie constructed a
warehouse on the land. In order to operate the warehouse, Benjie installed thereon a
removable overhead crane. A forklift is in the warehouse used solely for warehouse operations
to load and unload cargoes for warehouse operations to load and unload cargoes from trucks a
well as stack and arrange goods stored in the warehouse. As part of the contractual agreement,
the title of ownership to the warehouse, the overhead crane and the forklift were immediately
transferred to Chit. Which is correct? Benjie shall pay real property taxes on the land, the
warehouse, the overhead crane and the forklift.
31. Agricultural lands planted with permanent or perennial crops with at least 50 trees to a hectare
will not be considered idle land. T
32. For real property tax collection of municipality within Metro Manila, how much % shall accrue to
the general fund of the municipality? 35%
33. The right of local government units to collect taxes due must always be upheld to avoid severe
tax erosion. T
34. The term "machinery" embraces machines, equipment, mechanical contrivances, instruments,
appliances or apparatus which may or may not be attached, permanently or temporarily to a
real property. T
35. Proceeds from special assessment on lands benefitted by public works shall accrue to the
general fund of the LGU who funded the public works. T
36. Special education fund is imposed at a rate of 2% of assessed value of property. F
37. An improvement is intended to enhance the value of a property or to adapt it for new or further
purposes. T
38. Idle land tax is at a rate of 15% of the idle land. F
39. Tools and equipment used by a transport business in its service shop are considered "essentials"
in the business. F
40. Actual use shall refer to the purpose for which the property is principally or predominantly
utilized by the person in possession of the property. T
41. Real property taxation has the same constitutional underpinnings as local business taxes, fees
and charges which is Section 5, Article X of the 1987 Constitution. T
42. For idle lands other than agricultural located in a city or municipality to be considered as such, it
must more than 1,000 square meters in area and half of it remain unutilized. T
43. Real property shall be classified, valued and assessed on the basis of its actual use regardless of
where located, whoever owns it and whoever uses it. T
44. Pipelines attached to the land for the purpose of conveying petroleum shall not be considered
real property for real property taxation purposes. F
45. Which of the following local legislative bodies could not exercise the power of real property
taxation? Sangguniang Bayan of a municipality outside Metro Manila Area
46. Special levy is an imposition made by a local government unit that has spent for the
construction of an infrastructure upon lands that specifically benefitted by that infrastructure up
to the extent of not more than 80% of the amount spent by the LGU. F
47. Real property shall be assessed on the basis of uniform classification within each local
government unit. T
48. For real property tax collection of the province, how much % shall accrue to the general fund of
the municipality? 35%
49. Presidential Decree 464 known as the Real Property Tax Code is still fully effective and binding
until today. F
50. Which of the following is not a purpose for the use of SEF? road construction
51. The guidelines and limitations provided by Congress are those found under the provisions of
RA7160. T
52. Idle lands may be exempt from idle land tax if owner cannot make any improvements thereon
by reasons of force majeure, civil disturbance, natural calamity and other causes beyond the
owner's control. T
53. For real property tax purposes, real property shall be classified on the basis of zoning. F
54. Laws relating to real property taxation used to be under Presidential Decree 464 known as the
Real Property Tax Code. T
55. A government owned real property in which the beneficial use is granted to a taxable person
engaged in business shall not be subject to real property tax because the owner is the
government. F
56. Cash registers and typewriters and considered "essentials" to the hotel business. F
57. Improvement is a valuable addition made to a property or an amelioration in its condition,
amounting to more than a mere repair or replacement of parts. T
58. The basic real property tax for a property in a city or municipality within Metro Manila should
not exceed 2% of its assessed value. T
59. In general, real property subject to real property tax are those immovables considered as such
under the Civil Code of the Philippines. T
60. The number of annual installments for the special assessment shall not be less than 10 nor more
than 15 years. F