Tuesday, August 28, 2012
Wednesday, August 26, 2009
ILLUSTRATIVE EXAMPLES-HOW REAL PROPERTIES ARE APPRAISED AND ASSESSED
Going back to the definiton of Appraisal, we have the following:
It is the process of determining the value of the property as of a specific date and for a specific purpose. Therefore, you have to bear in mind the following:
Date of Appraisal-Usually, as in the case of new discovery of a building, upon completion or occupancy of such building. As in the case of a general revision, any date, but to take effect the first day of the following year.
General Purpose of Property Appraisal by the Assessor
1. For taxation purposes
2. In some cases to be used by courts
3. As One of the basis in extrajudicial settlements of estates
To appraise a a new building for purposes of taxation you need the following informations:
1. Complete name of the Owner of the property
2. Location of the building, like Purok, barangay and district. Lot No. where the building is constructed.
3. In addition, the owner must submit the following to the City Assessor's Office:
A) Building Permit
B) Bill of Materials
C) Building Plans
D) Certificate of Completion
E) Certificate of Occupancy
In the appraisal of buildings, it is grouped according to kinds, like but not limited to the following
1. Condominiums, Hotels, convention halls , Cathedral & chapel and churches
2. Hospital, apartment houses, apartelle Office/banks
3. Restaurant, eateries, funeral parlors, schools, residentials
4. Gasoline stations, duplex dwellings, car parks and supermarts
To establish a fair applications of the unit values for buildings, a thorough study shall be made by competent employees of the City Assessor's, usually a civil engineer for building and a mechanical engineer for machines and equipment. Thus buildings are grouped according to the following Specifications:
A) Steel Structures With Reinforced Concrete as Type A, B, C, and D, where A takes the highest price consideration like say Php 20,000/ sqm
and D for Php 4,500 per sqm.
B) PURE WOOD, with mixture of some steel and concrete say Php 8,500.00 per sqm
C) Makeshift say Php 1,500/sqm
Appraisal of Building can be made as follows:
Given facts:
Assumptions:
Floor area of the building 150 square meters
Cost to construct per square meter= Php 18,900.00 per Schedule of market Value of the LGU (refer to Words and Phrases)
Date of Appraisal=August 25, 2009
Assessment Level (Please refer to Words and Phrases
Actual Use of the building=Residential
How to compute Market Value
Area of the Building x Cost to Construct per Sch. of Market Value
or 150 sqm x Php 18900.00 per sqm or Php 2,835,000
Note: If the Value per Building Permit or Certificate of Construction is say Php Php 3,000,000 use that figure, but with a qualification as "Cost as Built" On the Other hand, if the Value based on the Schedule of market Value is Php 2,835,000 and the Certification of Occupancy/Completion is say only Php 2,800,000 use the higher amount or Php 2,835,000
Computation of Assessed Value
Market Value x Assessment Level =Assessed Value
Php 2,835,000 x 40% =Php 1,134,000
Effectivity of Assessment- Since the building was assessed in 2009, the collection of tax will start in 2010
As part of the appraisal process in government, computation of taxes is therefore included:
Computation of Annual Tax Due (based on Davao City, Philippines tax rate)
Assessed Value x Tax rate
Php 1,134,000 x .025( 2 1/2%) or Php 28,350.00
It is the process of determining the value of the property as of a specific date and for a specific purpose. Therefore, you have to bear in mind the following:
Date of Appraisal-Usually, as in the case of new discovery of a building, upon completion or occupancy of such building. As in the case of a general revision, any date, but to take effect the first day of the following year.
General Purpose of Property Appraisal by the Assessor
1. For taxation purposes
2. In some cases to be used by courts
3. As One of the basis in extrajudicial settlements of estates
To appraise a a new building for purposes of taxation you need the following informations:
1. Complete name of the Owner of the property
2. Location of the building, like Purok, barangay and district. Lot No. where the building is constructed.
3. In addition, the owner must submit the following to the City Assessor's Office:
A) Building Permit
B) Bill of Materials
C) Building Plans
D) Certificate of Completion
E) Certificate of Occupancy
In the appraisal of buildings, it is grouped according to kinds, like but not limited to the following
1. Condominiums, Hotels, convention halls , Cathedral & chapel and churches
2. Hospital, apartment houses, apartelle Office/banks
3. Restaurant, eateries, funeral parlors, schools, residentials
4. Gasoline stations, duplex dwellings, car parks and supermarts
To establish a fair applications of the unit values for buildings, a thorough study shall be made by competent employees of the City Assessor's, usually a civil engineer for building and a mechanical engineer for machines and equipment. Thus buildings are grouped according to the following Specifications:
A) Steel Structures With Reinforced Concrete as Type A, B, C, and D, where A takes the highest price consideration like say Php 20,000/ sqm
and D for Php 4,500 per sqm.
B) PURE WOOD, with mixture of some steel and concrete say Php 8,500.00 per sqm
C) Makeshift say Php 1,500/sqm
Appraisal of Building can be made as follows:
Given facts:
Assumptions:
Floor area of the building 150 square meters
Cost to construct per square meter= Php 18,900.00 per Schedule of market Value of the LGU (refer to Words and Phrases)
Date of Appraisal=August 25, 2009
Assessment Level (Please refer to Words and Phrases
Actual Use of the building=Residential
How to compute Market Value
Area of the Building x Cost to Construct per Sch. of Market Value
or 150 sqm x Php 18900.00 per sqm or Php 2,835,000
Note: If the Value per Building Permit or Certificate of Construction is say Php Php 3,000,000 use that figure, but with a qualification as "Cost as Built" On the Other hand, if the Value based on the Schedule of market Value is Php 2,835,000 and the Certification of Occupancy/Completion is say only Php 2,800,000 use the higher amount or Php 2,835,000
Computation of Assessed Value
Market Value x Assessment Level =Assessed Value
Php 2,835,000 x 40% =Php 1,134,000
Effectivity of Assessment- Since the building was assessed in 2009, the collection of tax will start in 2010
As part of the appraisal process in government, computation of taxes is therefore included:
Computation of Annual Tax Due (based on Davao City, Philippines tax rate)
Assessed Value x Tax rate
Php 1,134,000 x .025( 2 1/2%) or Php 28,350.00
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