IDLE LAND TAXATION

What is What is
DILG-DOF JMC No. 2010-02?
Reinforces the imposition of additional ad valorem
ta on idle lands as pro ided nder the Local tax on idle lands, as provided under the Local
Government Code (LGC) of 1991, by provinces,
cities and municipality within the Metro Manila cities and municipality within the Metro Manila
Area.
Objectives Objectives
of DILG-DOF JMC No. 2010-02?
To generate more revenues for the local
government units; gov s;
To enhance local economic development at the
local levels through maximization of the idle lands
for productive use;
To clarify the roles and responsibilities of the
N ti l G t A i i l d i th National Government Agencies involved in the
implementation of this Circular.
What is
an Idle Land Tax?
It is an ad valorem tax on idle land that is levied
annually on the assessed value of a real property that y p p y
remains uncultivated and unimproved by a property
owner.
Why do we need to impose Why do we need to impose
additional taxes on idle land?
It is a land regulatory measure that discourages the
proliferation of undeveloped real properties; p p p p
Ensures that the utilization of real property is
according to its highest and best use;
Also serves as a disincentive to excessive land
speculation.
What are What are
the benefits of Idle Land Tax?
Helps ensure that lands are utilized based on the
principle of highest and best use; p c p o g s d b s s ;
Encourages landowners to continuously develop and
maintain real properties;
Reduces the possibility of urban blight and decay;
Means additional revenues for the local government
it units;
Sustains the delivery of basic government services in
the locality the locality.
Are there Are there
LGUs which implemented idle land tax?
There are a total of 14 LGUs (5 provinces; 8 cities;
and the Municipality of Pateros in the Metropolitan d c p y o os opo
Manila Area) which have implemented the imposition
of idle land tax.
Notably, Marikina City posted a total collection of
Php243.1 million from year 2002 to 2009 from idle p y
land tax imposition.
What are What are
the Legal Bases of Idle Land Tax?
A province or city or a municipality within the
Metropolitan Manila Area, may levy an annual tax p y y
on idle lands at the rate not exceeding five
percent (5%) of the assessed value of the
hi h h ll b i ddi i h b i property which shall be in addition to the basic
real property tax. (Section 236, RA 7160)
What are What are
the Legal Bases of Idle Land Tax?
The provincial, city or municipal assessor shall
make and keep an updated record of all idle lands p p
located within his/her area of jurisdiction. For
purposes of collection, the provincial, city or
i i l h ll f i h h f municipal assessor shall furnish a copy thereof to
the provincial or city treasurer who shall notify, on
the basis of such record the owner of the property the basis of such record, the owner of the property
or person having legal interest therein of the
imposition of the additional tax. (Section 239, RA 7160) p ( , )
What are the What are the
conditions for classifying land as idle?
Lands other than agricultural, located in a city or
municipality with more than 1,000 square meter p y q
in area, one half (1/2) of which remain
uncultivated or unimproved by the owner of the
h i l l i h i property or person having legal interest therein.
What are the What are the
conditions for classifying land as idle?
Agricultural lands which are more than 1 hectare,
suitable for cultivation dairying, inland fishery and y g y
other agricultural uses, one half of which remains
uncultivated or unimproved by the owner of the
h i l l i h i property or person having legal interest therein.
The description does not include lands planted to
permanent or perennial crops with at least 50
trees/hectare and grazing lands.
How is idle land How is idle land
determined for taxation purposes?
Idle land is determined for taxation purposes when
th pr i i l it r m i ip l r h the provincial, city or municipal assessor has
completed an inventory of all idle lands within
his/her area of jurisdiction his/her area of jurisdiction
Is the tax on idle land automatic Is the tax on idle land automatic
upon the enactment of the LGC?
NO.
Th l l S i di f The local Sanggunian must enact an ordinance for
the imposition of the idle land tax and in accordance
with the pertinent provisions of Sections 187 188 with the pertinent provisions of Sections 187, 188
and 189 of the Local Government Code.
Is there a need to publish the enabling ordinance Is there a need to publish the enabling ordinance
on idle land taxation issued by the LGU?
YES.
Withi t (10) d ft th pp l f th Within ten (10) days after the approval of the
ordinance imposing idle land tax, all provincial, city and
municipal tax ordinances or revenue measures must be municipal tax ordinances or revenue measures must be
published for three (3) consecutive days in a newspaper
of local circulation. In case of provinces, cities and
municipalities where there are no newspapers of local
circulation, the same may be posted in at least two (2)
i d bli l ibl l conspicuous and publicly accessible places.
Are there exemptions Are there exemptions
from the imposition of tax on idle lands?
YES.
A province or city or a municipality within the p y p y
Metropolitan Manila Area may exempt idle lands from
additional levy by reason of force majeure, civil
disturbance, natural calamity or any cause or
circumstance which physically or legally prevents the
owner of the property or person having legal interest owner of the property or person having legal interest
therein from improving, utilizing or cultivating the
same.
Where Where
does the tax on idle land go?
The proceeds of the additional real property tax
on idle lands accrue to the respective general p g
funds 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 and
the municipality where the land is located.
E d End