a. Fundamental Principles

FUNDAMENTAL PRINCIPLES

• CURRENT and fair market value is the basis of appraisal
• UNIFORMITY in classification in each local government unit should be observed
• ACTUAL USE of the property shall be the basis of classification
• Appraisal, assessment, levy and collection should NOT BE LET to any private person
• EQUITABLE appraisal and assessment (LGC, Sec. 198)¹

Actual Use

It refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof. (LGC, Sec. 199(b))²

Assessment Based on Actual Use

Real property shall be classified, valued and assessed on the basis of its actual use regardless of where located, whoever owns it, and whoever uses it. (LGC, Sec. 217³)

Actual Use

It refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof. (LGC, Sec. 199(b))⁴ Usage means direct, immediate and actual application of the property (Mactan Cebu International Airport Authority v. Marcos, G.R. No. 120082, 11 September 1996)⁵

Unpaid realty taxes attached to the property and are chargeable against the person who had actual or beneficial use and possession of it, regardless of whether or not he is the owner. To impose the RPT on the subsequent owner which was neither the owner nor the beneficial user of the property during the designated periods would not only be contrary to law but also unjust. (Testate Estate of Concordia T. Lim v. City of Manila, G.R. No. 90639, 21 February 1990)⁶