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Pedro walaiuta  applied for a 5 hectares agricultural land on June , 1990, when he was only 21 years old.  After 22 years of waiting, it was approved and  an Order for the Issuance of title was issued.  Assuming that the Schedule of  Market Value of the following:

1. Coconut Land (Eff 2008 Gen Revision) 80,000/ hectare before 2008 revision 60,000/hectare


How much would be the tax due

Assumptions:            
Schedule of Market Value         SMV   
2008   General Revision      80,000 per hectare   
Prior to 2008 60,000 per hectare            
Tax rate of Davao City         2.50%   
Section 222 of the Local Government code of 1991-not more than 10 years subject to tax            
         Year   SMV
Exclude Year of Assessment         2012   (x)
Begin Here      1   2011   
      2   2010   
      3   2009   
      4   2008   80,000
      5   2007   60,000
      6   2006   
      7   2005   
      8   2004   
      9   2003            
      10   2002            
(x) When less than ten years, the year of Assessment is the reckoning year.                     

SMV for 2008 to 2011            80,000         
                     
Computation for 2008 to 2011            Formula   Area      
1. Market Value= SMV  x Area            80,000   5   hectares    400,000.00
2. Assessed Value=MV x Assessment level            400,000   20%   percent    80,000.00
3. Annual Tax Due= Assessed value x Tax Rate            80,000   2.50%   percent    2,000.00

SMV for 2002 to 2007            60,000         
                     
Computation for 2008 to 2011            Formula   Area      
1. Market Value= SMV  x Area            60,000   5   hectares    300,000.00
2. Assessed Value=MV x Assessment level            300,000   20%   percent    60,000.00
3. Annual Tax Due= Assessed value x Tax Rate            60,000   2.50%   percent    1,500.00

Total tax due for the ten-year period:                     

2008 to 2011 or      4 years   x 2,000/year or   8000         
2002 to 2007 or      6 years   x1,500.00/year or   9000         
Total tax for 10 years                                       17,000         
                     
Note: Interest is waived if the total tax of 17,000 shall be paid on the next quarter following the date                     
when the notice of Assessment was received by the Owner/authorized Representative.                      
Take note, the keywords are " Notice of Assessment was Received"                     


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