Calasiao Real Property Tax Automated Assessment System

Topics: Tax, Real estate, Property tax Pages: 17 (6050 words) Published: March 10, 2013
Chapter 1


Background of the Study

Real Property is any property that is attached directly to land, as well as the land itself. Real property not only includes buildings and other structures, but also rights and interests. Local governments in the Philippines are vested with the power to create their own revenue sources. Such power must of course be exercised within the limitations set by law. The Local Government Code of 1991 allocated the taxing powers among local government units to prevent double and multiple taxation. A ceiling on the tax rates is also provided under the law. National policy thus sets the tax base (and the valuation rules) as well as the limits for tax rates. (Real Property Taxation in the Philippines). The power to impose the real property tax has been given to provinces, cities, and municipal governments within the Metropolitan Manila area. The tax applies to all forms of real property such as land, building, improvements, and machinery. Exemption is given to real properties owned by government, charitable institutions, churches, cooperatives, and those that are used in the supply of water and electric power. (Real Property Taxation in the Philippines).

Equipment for pollution control and environmental protection is not subject to tax. The base of the tax, or the assessment level, is only a fraction or a percentage of the market value of the land. The under-taxation of land is therefore built into the tax structure. This is compounded by assessment levels that are differentiated depending on land use: Residential-20%, Agricultural-40%, Commercial, Industrial and Mineral-50%, Timberland-20%, Special classes: cultural, scientific-15%, Hospital, and Water districs-10%. (Real Property Taxation in the Philippines). The manual tax assessment process is as follows: the tax declaration or latest official receipt was presented by the taxpayer to the person in charge; it will be verified and will be assess accordingly, and lastly, the taxpayer will pay at the cashier. The lien month of collecting real property taxes was from January to March; late payments will result to penalties. An additional 2% per month of the total RPT assessed value will be paid by the taxpayer. (Calasiao Municipal Assessor’s Office, 2012). Manual tax assessment process is time-consuming, checking real property tax balances and reviewing information is difficult. Staffs may also need to rifle through multiple documents to locate information requested by management. A lack of security is another common disadvantage to manual tax assessment and record management. Files stored at the filing cabinet may also be less secure. Unusual phenomenon like fires and calamities might be a cause of damage and loss of information. Real Property Tax Automated Assessment is the process of calculating real property taxes as well as computing penalties; it also includes management of old and new records, invoicing and keeping track of unpaid real property taxes. Real Property Tax Automated Assessment System is similar to the following sub-systems: Record Management system (RMS) is an agency-wide system that provides storage, retrieval, manipulations, archiving, and viewing of information, records, documents, or files pertaining to any record management operations. RMS covers the entire life span of records development, from initial generation until the process to which it is relevant is complete. An effective RMS allows single entry of data while supporting multiple reporting mechanisms. A RMS is a computer program (or set of programs) used to track and store records. The term is distinguished from imaging and document management systems that specialize in paper capture and document management respectively RMS commonly provide specialized security and auditing functionalities tailored to the needs of records managers ....
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