Orientation Idle Land Taxation

8/11/2019 Orientation Idle Land Taxation

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IDLE LAND TAXATION



h i

DILG-DOF JMC No. 2010-02?

Reinforces the imposition of “additional ad valorem”

ax on e an s, as prov e un er e ocaGovernment Code (LGC) of 1991, by provinces,

Area.



of DILG-DOF JMC No. 2010-02?

• To generate more revenues for the localovernment units

• To enhance local economic development at the

local levels through maximization of the idle landsfor productive use;

• To clarify the roles and responsibilities of the

a ona overnmen genc es nvo ve n eimplementation of this Circular.



What isan Idle Land Tax?

It is an ad valorem tax on idle land that is leviedannuall on the assessed value of a real ro ert thatremains uncultivated and unimproved by a property

owner.





h rthe benefits of Idle Land Tax?

• Helps ensure that lands are utilized based on therinci le of hi hest and best use

• Encourages landowners to continuously develop and

maintain real properties;• Reduces the possibility of urban blight and decay;

• Means additional revenues for the local government

un s;• Sustains the delivery of basic government services in

.



Are thereLGUs which implemented idle land tax?

• There are a total of 14 LGUs (5 provinces; 8 cities;and the Munici alit of Pateros in the Metro olitanManila Area) which have implemented the imposition

of idle land tax.

• Notably, Marikina City posted a total collection ofPh 243.1 million from ear 2002 to 2009 from idleland tax imposition.



h rthe Legal Bases of Idle Land Tax?

• A province or city or a municipality within theMetro olitan Manila Area, ma lev an annual taxon idle lands at the rate not exceeding five

percent (5%) of the assessed value of theproperty w c s a e n a t on to t e as creal property tax. (Section 236, RA 7160)



h rthe Legal Bases of Idle Land Tax?

• The provincial, city or municipal assessor shallmake and keep an updated record of all idle landslocated within his/her area of jurisdiction. For

purposes of collection, the provincial, city ormun c pa assessor s a urn s a copy t ereo tothe provincial or city treasurer who shall notify, on

,or person having legal interest therein of theim osition of the additional tax. Section 239 RA 7160



h r h conditions for classifying land as idle?

• Lands other than agricultural, located in a city ormunicipality with more than 1,000 square meterin area, one half (1/2) of which remain

uncultivated or unimproved by the owner of theproperty or person av ng ega nterest t ere n.



h r h conditions for classifying land as idle?

• Agricultural lands which are more than 1 hectare,suitable for cultivation dairying, inland fishery andother agricultural uses, one half of which remains

uncultivated or unimproved by the owner of theproperty or person av ng ega nterest t ere n.

• The description does not include lands planted to

permanent or perennial crops with at least 50trees/hectare and grazing lands.



H i i l l n determined for taxation purposes?

Idle land is determined for taxation purposes whene prov nc a , c y or mun c pa assessor as

completed an inventory of all idle lands within



I h x n i l l n m i upon the enactment of the LGC?

NO.

e oca Sanggun an must enact an or nance or

the imposition of the idle land tax and in accordance,and 189 of the Local Government Code.



Is there a need to ublish the enablin ordinance on idle land taxation issued by the LGU?

YES.

n en ays a er e approva o eordinance imposing idle land tax, all provincial, city and

published for three (3) consecutive days in a newspaperof local circulation. In case of provinces, cities and

municipalities where there are no newspapers of localcirculation, the same may be posted in at least two (2)consp cuous an pu c y access e p aces.



from the imposition of tax on idle lands?

YES.

A rovince or cit or a munici alit within theMetropolitan Manila Area may exempt idle lands from

additional levy by reason of force majeure, civildisturbance, natural calamity or any cause orcircumstance which physically or legally prevents the

therein from improving, utilizing or cultivating thesame.



h rdoes the tax on idle land go?

• The proceeds of the additional real property taxon idle lands accrue to the respective generalfunds of the province or city where the land is

located;• In the case of a municipality within the

Metropolitan Manila Area, the proceeds accrue

equally to the Metropolitan Manila Authority andthe municipality where the land is located.



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Orientation Idle Land Taxation