Land Tax question?

Question

I have a 500sq.m. residential lot in San Isidro Babak, Samal Island, Davao (no house, no fruit-bearing trees) which I bought in 2003. Since then I haven't paid any land tax. Now I need to pay it. How much do u think I would pay all in all including penalty for not being able to pay yearly or something..

Answer 1

Land tax, or real property tax, is assessed based on the percentage of market value fixed by law; thus:

     residential.....10%

     agricultural.....15%

     industrial.........40%

     mineral............20%

     timberland......20%

plus the basic tax rate collected by the municipality (1.0%), plus Special Education Fund (SEF) which is 1.0%.

Market value is the price you have declared in acquiring the property. If for example, you have acquired the property for Php100,000, the computation will be:

     Market value: Php100,000.00

     Assessed value: 10% of 100,000 = 10,000.00

     Tax due =  Assessed value x 2% tax rate (basic + SEF)

                    = 10,000.00 x 2%

                    = Php 200.00

Late payment penalty is 2% of tax due for every month of delay, not exceeding 36 months. I think you would be able to compute it from here.

Tip: Most municipalities gives moratorium or forego the late payment penalty if you ask them. However, you have to pay the total full amount of tax due.

Hope this gives you the information you needed.