HomeGovernmentThe City Government OfficesCity Assessor's OfficeSchedule of Fair Market Values (Ordinance No. 2004-119)

Schedule of Fair Market Values (Ordinance No. 2004-119)


ORDINANCE NO.  2004-119


AN     ORDINANCE   PROVIDING  FOR  THE  SCHEDULE  OF  FAIR  MARKET VALUES FOR DIFFERENT KINDS OF REAL PROPERTY, MACHINERIES, STRUCTURE AND IMPROVEMENTS IN THE CITY OF ZAMBOANGA
                                         
______________________________________________________________________
SPONSOR: HON. ASBI N. EDDING

Chairman, Committee on Ways and Means

CO-SPONSORS:

                                           HON. MILABEL E. VELASQUEZ

                                           HON. JUAN CLIMACO P. ELAGO II

                                           HON. CESAR S. ITURRALDE

                                           HON. LUIS M. CLIMACO

                                           HON. REYNERIO S. CANDIDO

                                           HON. ROEL B. NATIVIDAD

                                           HON. RODOLFO R. LIM

                                           HON. ELIAS S. ENRIQUEZ

                                           HON. BENJAMIN E. GUINGONA III

                                           HON. ABDURAHMAN B. NUÑO
_____________________________________________________________________

EXPLANATORY NOTE


The last time the City Assessor’s Office conducted general revision on the fair market value of real property was in 1993 pursuant to Ordinance No. 93-019, as amended by Ordinance     No. 95-026.

Inspite of the mandate of the law (Sec. 212 in relation to Sec. 219 of RA 7160) requiring general revision every three years, the city government has not done such revision for the period of ten (10) years when this Ordinance shall have taken effect in 2006.
       
The Committee of the Whole has conducted public hearings and/or consultations for three (3) times. Notices were sent to concerned taxpayers, barangay officials and various professional, civic and business organizations thru personal service, newspaper publication and/or radio announcement.

As a result of the said public hearings, the Committee of the Whole has considered the plea of the taxpayers to impose reasonable increase in the Fair Market Value of Real Property when general revision is conducted in 2006.

The members of the committee and the overwhelming number of participants have reached a common position that there exists a necessity to approve the above-numbered Ordinance.

Conscious of such necessity and the various government improvements in the form of public roads constructed in the cross sections of the city which directly contribute to the increased of the value of real estate, it is recommended that this August Body shall approve this Ordinance which is realistic, just and reasonable.

The projected collection of real property taxes realized upon the approval of this Ordinance will surely redound to the economic welfare of the people. The property owners must share in the form of reasonable taxes resulting from the consequential benefits they enjoy from the infrastructure introduced by the City.

Be it ordained by the Sangguniang Panlungsod of Zamboanga, that:


          SECTION 1.  

The fundamental principles in the appraisal, assessment, levy and collection of real property tax shall be guided by the following:

     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;

     d.     The appraisal and assessments of real property shall be equitable.


          SECTION 2.

The schedule of fair market value of the different classes of real property are commercial, industrial, residential, and special classes per square meter.


          SECTION 3. MISCELLANEOUS PROVISIONS

1.      As a general rule, 100% base value per square meter for urban (commercial, industrial and residential) lands shall be applied to all lands within the first strip of 30 meters for residential and 40 meters for commercial sections and 50 meters on industrial zone fronting asphalt or concrete streets or roads.

2.      Lands beyond the standard depth of 40 meters for commercial lands and 50 meters for industrial and 30 meters for residential lands, shall be valued 100% for the 1st strip, 80% for 2nd strip, 60% for the 3rd strip, and 40% of the base value for the remaining area. Provided, however, that in case a parcel of land abutting two streets or roads on two sides with different base values, the stripping and valuation thereof shall be based on the principal street or road with the higher base, but in no case shall the value of the last strip be lower than the value provided for the other street.

3.      A reduction of 10% shall be applied from the base value fixed for lands along gravel, earth or dirt and proposed street or road. In similar manner, if the street, or road or section thereof is subsequently improved or constructed, the appraisal and assessment of the same shall be adjusted accordingly.

4.      For low and sunken areas of the land, a reduction from the base value per square meter may be allowed due to the cost of filling and compaction to bring the same at par with the adjoining developed lots. Provided, however, that such
reduction will in no case exceed 30% of the base value thereof.

5.      Adjustment value for frontage shall be added to the valuation of all commercial lots fronting streets or roads. The same is derived by multiplying the length of the frontage in linear meters by 50% of the unit base value thereof.

6.      Corner influence value of 10% of the base value shall be added to the valuation of lots situated at the corner of two streets or roads. Provided, however, that if the streets or roads have different base values, the higher base value shall be used in the computation thereof.

7.      Vacant or idle land located in a purely residential area shall be classified as residential. If such land is located in a purely commercial area, the same shall be classified as commercial. If located in a purely industrial area, the vacant or idle land shall be classified as industrial. Provided, however, that if there is no predominant use, the zoning ordinance shall be used.

8.      Road or street in urban subdivision, unless already donated and turned over to the government shall be listed separately as taxable in the name of the subdivision owner, and shall be valued uniformly at 30% of the base value per square meter.

9.      Park and open space shall be valued at 30% of the base value applicable to the particular area where they are located.
10.  As far as properly applicable, this schedule of base market values shall be controlling, but where the property to be assessed is a kind not classified in this schedule of if any kind for which a value is not hereon fixed, it shall be appraised at the current and fair market value, independently of this schedule.

11.  Lands actually used as residential shall be classified and valued as residential land; and those actually used as commercial shall likewise be classified and valued as commercial, and so forth. The market value to be applied to the land to be assessed shall be the corresponding market value as provided for in this schedule of market values.

12.  Appraisal and Assessment of Machinery;
    
     a.      The fair market value of a brand-new machinery shall be the acquisition cost. In all other cases, the fair market value shall be determined by dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost.
    
     b.      If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling, and installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to pesos cost on the basis of foreign currency exchange rates as fixed by the Central Bank.

13.  Subject to the provisions of the foregoing rules, the appraisal and assessment of land shall further be governed by the rules and regulations provided for under Assessment Regulations No. 1-92, dated October 6, 1992, of the Department of Finance.

14.  Except for buildings to be constructed starting 2006 the current assessment schedule for existing buildings or structures as prescribed in Ordinance 95-026 shall still be the same and hereto adopted.


          SECTION 4. 

The City Assessor shall undertake a general revision of real property assessments effective February, 2005 and every three (3) years thereafter; provided, the assessment level shall be consistent with the Schedule of Fair Market Values for the different classes of real property as fixed herein; provided, further, no increase in assessment level shall take effect in the future without prior approval of the Sangguniang Panlungsod.


          SECTION 5.

The City Assessor is hereby authorized to issue pertinent and necessary office order containing rules and regulations for the efficient and orderly implementation hereof.


          SECTION 6. SEPARABILITY CLAUSE
 
Should any provision of this Ordinance be declared illegal by a competent court the same shall not affect the valid portion thereof.


          SECTION 7. REPEALING CLAUSE

Any provision of existing Ordinance or Executive Order inconsistent with this Ordinance shall be deemed repealed or amended.


          SECTION 8. EFFECTIVITY 

his Ordinance shall take effect after publication effective January 1, 2006.




ENACTED: December 28, 2004, as emergency measure