Section 197 of RA 7160

BASIC FUNDAMENTALS OF REAL PROPERTY VALUATION AND TAXATIONS This is for everybody who wish to learn the fundamentals of real property valuation and taxation. Readers and visitors of this group are hereby advised to post issues and concerns that are of interest to the reading public about real estate. As we go along, and probably visiting regularly this Webpage we can get something out from it.I can assure you that in my own little way, I will be able to share what I have and give you the desired answer you wish to know. However, for some questions the answer of which is not within my capability to give, I will consult the best and available persons, with some quotes that such answer came from them Chapter 1-General Provision CHAPTER 1 - GENERAL PROVISIONS SEC. 197. Scope. - This Title shall govern the administration, appraisal, assessment, levy and collection of real property tax. This is self-explanatory-contributor 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; Fair market value-the highest price estimate in terms of money in which the property will bring if exposed for sale in the open market allowing a reasonable time to find a purchaser, who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used. (b) Real property shall be classified for assessment purposes on the basis of its actual use; Meaning, an agricultural land bought for residential purpose should be assessed as agricultural, which is the present and actual use of the property. Under no circumstances will the assessor declare it as residential, for purposes of using said property for a loan, in order to develop the land. If there is no physical development of the agricultural property, the assessment of that property will remain as is. (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.