Republic of the Philippines

BATANGAS STATE UNIVERSITY

College of Engineering, Architecture, Fine Arts and Computing Sciences
Gov. Pablo Borbon Campus II, Alangilan, Batangas City Philippines 4200
www.batstate-u.edu.ph Telefax (043)300-4404 locs. 106 -118

TAXATION AND LAND REFORM

MIDTERMS EXAMINATION

Name ____________________________________________ Date___________________

I. True or False. Write T if the statement is true and F if it is false. No erasures

_______________1. Taxation shall be uniform in each local sub-unit.
_______________2. Taxes, fees, charges and other impositions shall be equitable and based as much as
possible on the taxpayer’s ability to pay.
_______________3. Local taxes shall be levied and collected only for public purposes.
_______________4. Local taxes shall not be unjust, excessive, oppressive or confiscatory.
________________5. Local taxes shall not be contrary to law, public policy, national economic policy, or
in restraint of trade.
________________6. The collection of local taxes, fees, charges, and other impositions shall in no case
be let to any person.
________________7. The revenues collected under the Code shall ensure solely to the benefit of and
subject to disposition by, the local government unit levying the tax, or fee, charge or other imposition
unless otherwise specifically provided therein.
________________8. Each local government unit shall as far as practicable, evolve a progressive system
of taxation.
________________9. An ordinance which imposes a tax beyond the power of a municipal power of a
municipal corporation is ultra vires and is therefore void.
_______________10. Unlike sovereign state, municipal corporations have no inherent power to tax.
_______________11. Local governments units have a share in the proceeds of national internal revenue
taxes.
______________12. Local taxation like national taxation is executive in nature.
______________13. The province enjoys the greatest degree of taxing power.
_______________14. The municipality can impose professional tax as provided in Sec. 139 of the Tax
Code.
_______________15. The Congress may when public interest so requires, condone or reduce the real
property tax and interest for any year in any province, city or a municipality.
______________16. Real property shall be classified for assessment purposes on the basis of its actual
use.
______________17. Real property shall be appraise at its current assess value.
______________18. The appraisal and assessment of real property shall be autonomous.
_______________19. The appraisal, assessment, levy and collection of real property tax shall not be let to
any private person.
_______________20. Real property shall be assessed on the basis of a unique classification with each
local government unit.

III. Identification. Identify the following statements. Write your answer on the space provided before each
number.
__________________1. It refers as a valuable addition made to a property or an amelioration in its
condition, amounting to more than a repair which is intended to enhance the beauty or utility or to adopt it
for new or further purpose.
___________________2.It shall be appraised at its current and fair market value.
___________________3. It is a land principally devoted to habitation?
___________________4. Land devoted principally for the object of profit and is not classified as
agricultural, industrial, mineral, timber or residential land.
___________________5. Land covered with forest.
____________________6. Its obvious purpose is to exclude the poor from the burden of having pay real
property tax on their residences.
____________________7. Is a land devoted principally to the planting of trees, raising of crops, livestock
and poultry, dairying, salt making, inland fishing and similar aquacultural activities, and other agricultural
activities.
____________________8. Is a right or privilege, affected with public interest which is conferred upon
private persons or corporations, under such terms and conditions as the government and its political
subdivisions may impose in the interest of public welfare, security and safety?
____________________9. Are those engaged in subsistence fishing that is limited to the sale, barter or
exchange of marine products produced by himself and his immediate family may organize themselves
into a cooperative.
___________________10. It is a local government unit which possesses the least degree of taxing power.

V. Enumeration. Enumerate the following items stated below.

LIMITATIONS ON THE LOCAL TAXATION

1.
2.
3.

EXEMPTED FROM REAL PROPERTY TAX

4.

5.

6.

7.

TAXES LEVIED BY THE PROVINCE

9.

10.
11.

12.

13

ABSOLUTELY EXEMPTED FROM CTC

14.
15.

LOCAL GOVERNMENT UNITS ARE EMPOWERED TO IMPOSE REAL PROPERT TAX

16.
17.
18.

V. ESSAY.
1. Under Art. 415 of the Civil Code, what are considered as immovable property?(10 pts)

2. Suppose the Sanggunian shall pass a tax on a particular business and it so happens that it is only the
taxpayer and no one else, that is the subject to the tax. May the taxpayer assail the validity of the tax on
the ground that it is discriminatory?

3. The municipality passed an ordinance imposing a tax of one centavo (P0.01) per pack of cigarettes
produced in the locality. Is the ordinance valid? Explain briefly.
4. The local City Assessor subjected to real property tax the following items of a gasoline station that
leased a parcel of land wherein the station is maintained: underground tanks, elevated tanks, water tanks,
gasoline pumps, car washer, car and truck hoist, air compressors and similar articles.
Are the above items subject to real property tax, Explain briefly?

5. Are barong-barongs immovable property?

Prepared by:

___________________________
Atty. Meynard H. Magsino

Check and Verified by:

___________________________
Ar. Rodora Lacap
Dept. Chair, ARIDFA

Approved by:

__________________________
Dr. Elisa D. Gutierrez
Dean, CEAFA