There will be more provinces imposing the Idle Land Tax

ONLY 5 PROVINCES, 8 CITIES ARE IMPOSING IDLE LAND TAX, BUT THERE WILL BE MORE, SAYS THE DEPT. OF FINANCE & DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT

Out of the country's 80 provinces and 121 cities, only 5 provinces and 8 cities are currently imposing idle land tax, but this will soon change.

In a press statement, Finance Secretary Cesar Purisima and Department of Interior and Local Government Secretary Jesse M. Robredo recently directed all local sanggunians to enact appropriate ordinance for the proper implementation of the the additional ad valorem tax on idle lands.

Sec. Purisima cited that Section 236 of the Local Government Code provides that "xxx A province or city, or a municipality within Metro Manila, may levy an annual tax on idle lands at the rate not exceeding 5% of the assessed value of the property, which shall be in addition to the basic property tax xxx."

To implement this, the Finance Secretary and DILG Secretary signed a Joint Memorandum Circular No. 2010-002, dated October 20, 2010.

It is entitled, "Guidelines in the Imposition of an "Additional Ad Valorem Tax on Lands," and Other Related Provisions of the Local Government Code of 1991, by Provinces, Cities and Municipality Within Metro Manila Area.

The 5 provinces that are currently imposing idle land tax are Cagayan, Isabela, Cavite, Aklan and Capiz. On the other hand, the 8 cities are Marikina, Tagaytay, Trece Martirez, Naga, Navotas, Iloilo, Pasig and Mandaluyong.

The DoF and DILG also signed Joint Memorandum Circular No. 2010-001, dated October 20, 2010 directing all provinces, cities and the Municipality of Pateros to update their schedules of market values of real estate properties in their jurisdictions, to maximize the local government's collection of real estate tax.

Section 200 and 232 of the Local Government Code grants to provinces, cities and municipalities in Metro Manila the responsibility to impose real property tax.

Provinces impose a uniform rate of basic real property tax not exceeding 1% of the assessed value of real property. Cities and municipalities in Metro Manila impose a uniform rate not exceeding 2% of the assessed value of real property.

The two Joint Circulars may be viewed/downloaded from www.dilg.gov.ph under "Issuances." (END).

--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
------------------------------------------