FORMULAS FOR WORDS AND PHRASES USED IN GOVERNMENT APPRAISAL AND ASSESSMENTS
a) Schedule of Market Value Usually this Schedule is being prepared by the Assessor. Before the devolution of the powers under the Local government Code of 1991, it is the Department of Finance who approves the Schedule of Market Value. Under the RA 7160, it is now the local Sanggunian who will approve the Schedule of market Value. With this Schedule, the Assessor is guided on what values are to be used in arriving at the Fair Market Value of the property he is going to asssess. Samples of the Schedule of market Values are: From the R.Magsaysay junction of Villafuerte street both side to Davao Bukidnon Highway the following are to be used: Commercial lots along the street Php 2,000,000 per sqm , all other interior lots 1,000 per sm Residential Php 1,500 per sqm Agricultural lot Php 50,000 per ha. Residential Assume the following, to be owned by Mr. Candido Yutan Kaayo: 1,200 sqm of commercial lot located at Villafuerte Street 1,000 residential lot 10 hectare agricultural lot Formula to arrive at Fair Market Value Definiton of Faair Market Value Refer to Section 199 Letter I A)Along the road, Commercial lot 1,200 x 2,000 =2,400,000 B)Residential 1,000 sqm x 1,500/sqm= Php 1,500,000 C) 10 ha x 50,000= 500,000 How to arrive at Assessed Value Definition-Please refer to Section 199 of RA 7160 Letter H Definition of Assessment Level-Please refer to RA 7160 Letter G Formula= Market Value x Assessment Level Assuming that the following are A)the assessment levels of: B) Tax rate is 2.5% Tax rate and assessments levels are provided for by the local Sanggunian of the place where the properties are located. Commercial 50% Residential 20% Agricultural 40% To arrive at assessed value: Commercial= 2,400,000 x 50% or 1,200,000 Residential 1,500,000 x 20 or 300,000 Agricultural 500,000 x 40% or 200,000 Formula for Annual Tax dues: Assessed Value x Tax Rate Commercial 1,200,000 x 2.5% or Php 30,000 per annum Residential 300,000 x 2.5% or Php 7,500 per annum Agricultural 200,000 x 2.5 or Php 5,000 per annum Total annual tax due Php 42,500.00
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Topic: FORMULAS FOR WORDS AND PHRASES USED IN GOVERNMENT APPRAISAL AND ASSESSMENTS (Read 976 times)