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January 31, 19714, ZULJ.CT:

'etual use as basis for assessment of real property and guidelines for impleaentetion thereof.

TO

All Provincial and City Assessors

:

In enter to achieve mdfornity in the assessment of r---&"L property under Frosidential Cecree No. '76, as &,Aendedt tile following guidelines are hereby prescribed for their information, guidance and compliance: 1. The computation of the assessed value of real property shall be based on the actual use of the property regardless of its location and whoever uses it. 2. A purely residential house used as residence of the comer shall be asscsscd on: the basin of the applicablo graduated -assessment levels for such kis ►d of property as fixed in Presiacntial L'eerec No. 76. If persons other than the owner are residing therein free of charge, the same graduated aesessaent levels shall also be applied. 3. A building actually used for residential purposes by persons other than the owner on rental basis eball be classified and assessed as residential based on its current level of assessment which in no ease shall be lower than the aasesewrent level fixed in Iresidential Decree No. 76 for the land on which it is constructed. Current level refers to the ratio of the assessed value prior to Presidential Decree No. 76 to the current and

fair ,narket value deterrined as of 1973 by the assessor. 4. Mere the land on vihich a purely residential buiL ing is erected is in a ecwzaercial area, the current and fair market value of such JE id rl,..all be determined by applying the appropriate base warket value for commercial land as provided in the correspording schedule of values anal the awes-5ed valu9 fixed on the basis of the acsesenent level for residential land which is 30°;.

C 2 Conversely, if the land on which a purely conmercial building is erected is in.a residential area, the current and fair market value of such land shall be determined by applying the appropriate base market value for residential land as provided in the respective schedule of values and the assessed value fixed on the basis of the assessment level for commercial land which in 5%. 5. In case the land on which a purely residential or purely commercial building stands is located in a mixed residential-coantercial area* such land shall be considered residential or eomereial depending on tether the building thereon is purely residential or purely covxnercial. However, if the land on which a mixed residential-comercial building stands is in a mixed residential-ccmterciel area, the more predominant use of suweh land shall govern its classification and assessment level. 6. %7here the building is used principally for residential purposes and secondarily for edsmercial purposes, the current and fair market value of the entire building shall be determined by applying the appropriate base cost for its particular class as provided in the respective table of building costs, and the assessment level shall be based on its predominant or principal use. On the other hand, it the building is used principally for commercial purposes and secondarily for residential purposes, the current and fair market value of the entire building shall be determined by applying the appropriate base cost for its particular class as provided in the respective table of building costs, and the assessment level shall be based on its predominant or principal use, However, if the building is used principally both for residential, and co=ercial purposes, the current and fair market value of the entire building shall be determined by applying the appropriate base coat for its particular class as provided in the table of building casts, and the corresponding aesesctent levels for residential and commercial properties applied to the respective portions. 7. Vacant or idle land located in a purely residential or mixed residential-commercial eta shall be classified as residential. If such land is located in a purely cor=ercial area, the same shall be classified as commercial.

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-38. In the case of agricultural land. convertible into urban or subdivision land in the future, it shall be classified and assessed as agricultural until such time when It has been converted and developed into a subdivision. This rule shall also apply to land already approved,as subdivision but has not as yet been actually developed for the purpose. However, as soon as any development of the subdivision is made, the are shall be classified as residential and its base market value shall be 7Q$ of the appropriate base market value provided in the schedule of values until such time as it shall have been fully developed in which case the base market value shall be 10(75 of the applicable rate of base market value in the schedule of values. This Order shall not apply to other classes of real property not expressly mentioned herein. All existing orders, circulars and pertinent provisions of the schedules of base market values incon3istont herewith are hereby modified, amended or revoked accordingly.