Real Property Assessment

Exercises:


1. Refers to an official in the local government unit who performs appraisal and
assessment of real properties, including plants, equipment, and machineries,
essentially for taxation purposes.
a. Appraiser
b. Consultant
c. Assessor
d. Engineer

2. Public sector land valuation and taxation in the Philippines is the domain of two (2)
arms of the government, namely:
a. LGU and BIR
b. DOF and DILG
c. DOF and DBM
d. LGU and Office of the President

3. This law provides that all real property, whether taxable or exempt shall be appraised
at the current and fair market value prevailing in the locality where the property is
situated.
a. Real Estate Service Act
b. Real Property Tax Code
c. National Revenue Code
d. Philippine Valuation Standards

4 A revenue-raising procedure, based on the assessed value of property related to a
scale of charges defined by statute within a specified time-frame.
e. Gross income taxation
f. Ad valorem property taxation
g. Net income taxation
h. Value added taxation

5. A tax assessment is intended to accomplish which of the following
a. Set the maximum price paid at a foreclosure sale
b. Establish the asking price of property when listed for sale by the owner
c. Aid the determination of how much property tax is due
d. Determine market value

6. RA 7160 prescribes that real property shall be assessed on the basis of:
a. current market value
b. Actual use
c. Equitable use
d. Potential use

7. RA 7160 prescribes that for real property taxation should be based on which of the
following:
a. Prevailing Market value of LGU
b. Market value as established by the Assessor
c. Market Value as established by private appraiser
d. Market value approved by Sangguniang concerned


8 Under what classification does a machinery and equipment fall with an assessed value of
P40,000.00 or 50% of its market value?
a. Agriculture d. Industrial
b. Commercial e. None of the above
c. Residential
9. The payment of real property tax without interest may be paid how many installments?
a. Three c. twelve
b. Two d. Four

10. In case the province imposes idle land tax, it can only levy annual tax on idle lands at the
rate not exceeding:
a. One per cent of the assessed value
b. Two per cent of the assessed value
c. Five per cent of the assessed value
d. Three per cent of the assessed value

11. Unpaid real property tax is subject to 2% per month interest, up to a maximum period of:
a. 12 months
b. 24 months
c. Until paid
d. 36 months

12. Under the local government code, the appraisal of the fair market value of real property
shall be based on:
a. Current fair market value
b. Declaration of lot owner
c. Independent appraisers value
d. Actual use

13. Problem:
Your client Ricky has a property in a residential area that is actually being used as a
beauty salon. The tax declarations of the lot and the structure indicate the following
data.
Lot area = 275 sq.m.
Market Value of the land = P4,525 per sq.m.
Market Value of the structure = P2,400,000.00
Assessment level : Residential = 10%
: Commercial = 25%
Property tax rate = 1.5%
Special Educational Fund (SEF) = 1% of the assessed value
1. What is the total combined assessed value of the land and the improvement?
2. What is the realty tax due?

REB EXAM (2007)