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Mr. Juan Yuta-an is an owner of a 5 hectares agricultural land. When subdivided into smaller residential lots, it contains the following:

Roads and play gounds and other subdivision facilities  10,000 sqm meters
Residential lots 40,000 square meters.

Questions:

1.  Are the subdivided lots taxable as Residential? Or will it remain as agricultural?
2. If not, when will it be classified for assessment purposes as  residential lot.


Answers:SEC. 198. Fundamental Principles. - The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:

(a) Real property shall be appraised at its current and fair market value;
(b) Real property shall be classified for assessment purposes on the basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and
(e) The appraisal and assessment of real property shall be equitable.

2. This is supported by LAR No. 1-92 of October 6, 1992 that "if there is no physical change of the property so divided, it shall remain as agricultural.  change in assessment takes place for that portion when where is an actual development of the property.

thanks for this stuff

You're welcome, David. You're fully appreciated. Indeed, reading maketh a full man.