PRESIDENTIAL DECREE NO. 1446, June 11, 1978
PROVIDING FOR THE IMPOSITION OF AN ADDITIONAL TAX ON IDLE LANDS AND AMENDING FOR THE PURPOSE THE PERTINENT PROVISIONS OF PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED AND SIXTY-FOUR…
the maximum and efficient utilization of land in order to support the vital
government programs of rural development, low-cost housing, infrastructure and
others similarly designed for the primary benefit and upliftment of the poor and
the underprivileged;
WHEREAS, large tracts of productive agricultural and urban
lands of private ownership throughout the country remain idle and undeveloped
due to non-cultivation and non-utilization by the owners thereof;
WHEREAS, the apparent and continued accumulation of private
lands for speculation and other non-productive purposes serves as a deterrent to
the execution of country-wide socio-economic programs;
WHEREAS, to attain the New Society’s objectives,
specifically those pertaining to rural development and urban growth, it is
imperative to induce the proper utilization of idle lands and amend for this
purpose existing provisions of law.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby decree and order as part of the law of the land the
following provisions:
SECTION 1. Section 42 of Presidential Decree No. 464 is
hereby amended to read as follows:
“SECTION 42. Additional ad valorem tax on idle
lands.
- There is hereby imposed an additional property tax on idle lands at the rate
of FIVE PER CENT PER ANNUM based on the assessed value of the Provincial or City
Assessor of the Province or City where the property is located or by the
Municipal Assessor in the case of idle lands situated in the municipalities of
Metropolitan Manila.- The additional ad valorem tax levied in the preceding paragraph shall begin
to accrue on July 1, 1978, any provision of law to the contrary
notwithstanding.”
SEC. 2. Section 43 of Presidential Decree No. 464 is hereby
amended to read as follows:
“SECTION 43. Idle lands, coverage.—For purposes of
this Decree, idle lands shall include the following:
- Agricultural lands suitable for cultivation, dairying, inland fishery, and
other agricultural uses, one half of which remain uncultivated or unimproved by
the owner or owners thereof.- Lands, other than agricultural, located in a City or Municipality, more than
2,000 square meters in area one half of which remain unutilized or unimproved by
the owner or owners thereof. This Section shall likewise apply to residential
lots in subdivisions duly approved by proper authorities, the ownership of which
has been transferred to individual owners, who shall be liable for the
additional tax. Individual lots of such subdivisions, the ownership of which has
not been transferred to the buyer shall be considered as forming part of the
subdivision, and shall be subject to the additional tax payable by subdivision
operator.
SEC. 3. Section 44 of Presidential Decree No. 464 is hereby
amended to read as follows:
“SECTION 44. Idle lands exempt from tax.—The
additional levy on idle lands shall not apply to landowners who are unable to
improve, utilize or cultivate their lands due to any of the following
causes:
- Adverse peace and order conditions as certified by the Provincial Commander
of the Philippine Constabulary. However, if within one year upon restoration of
the peace and order in the locality as certified by the said Provincial
Commander, the said land remains unimproved, unutilized, uncultivated, the
additional tax provided under Section forty two hereof shall be imposed.- Financial losses of the owner due to fire, flood, typhoon, earthquake and
other causes of similar nature declared by the owner in a sworn statement to be
submitted to the Provincial, City or Municipal Assessor stating the ground or
grounds therefore, which shall be accompanied by a certification from the proper
agency of the local government concerned. If the idle land is not improved to
the extent prescribed in the next preceding Section within two years from the
date of the occurrence of the loss, the tax provided under Section forty-two
hereof shall be imposed subject to rules and regulations issued in connection
herewith.- Existing court litigations involving the land subject to tax mentioned in
this chapter as certified by the Court under which the case is pending unless
said land is not improved within one year after the final adjudication of the
case to the extent provided in the next preceding Section, in which case, the
tax provided under Section forty-two hereof shall be imposed.- Necessity to leave the land in a fallow state as certified by the
Provincial, City or Municipal Agriculturist, or in their absence, by the
Secretary of Agriculture or his duly authorized representatives, stating among
others, the length of time within which the land shall be considered ready for
production. If the idle land is not improved within one year after the
termination of such period of time, the tax provided under Section forty-two
hereof shall be imposed.- Unfavorable physical factors such as rocky nature of ground, and uneven
topography in the case of agricultural land, which render the land unsuitable
for cultivation as certified by the Provincial, City of Municipal Agriculturist,
or in their absence, by the Secretary of Agriculture or his duly authorized
representatives.- Acquired subdivision lots which remain idle due to the failure of the
subdivision developer or owner to develop the said subdivision in accordance
with the approved subdivision plan as determined by the Assessor. If within one
year, from the time the subdivision is developed, the said lot still remains
unutilized or unimproved, the tax provided under Section forty-two hereof shall
be imposed.”
SEC. 4. Section 45 of Presidential Decree No. 464 is hereby
amended to read as follows:
“SECTION 45. Application for exemptions
- The owner, administrator, or any person having legal interest on the land,
desiring to avail of the exemptions enumerated under Section 44 hereof, shall
file within six months from the date of effecivity of this Decree, the
corresponding application with the Assessor of the Province, City or
Municipality, where the land is situated. The application shall state the ground
or grounds under which the exemption is being claimed.”
SEC. 5. Assessment and Collection.—The assessment
and collection of the additional tax on idle land shall be in accordance with
the provisions of Presidential Decree No. 464, as amended.
SEC. 6. Distribution of Proceeds of the Additional Real
Property tax on Idle Lands.—The proceeds of the additional real property
tax on idle land shall accrue to the general fund of the Province, City or
Municipality where such land subject to tax is situated, and shall be
distributed as follows:
- In the Province: Fifty percent shall accrue to the Municipality where the
property subject to tax is situated and fifty percent shall accrue to the
province. - In the Cities: The entire proceeds of the additional tax on idle lands shall
accrue to the City where the land subject to tax is situated. - In the Cities and Municipalities in Metropolitan Manila: Fifty percent shall
accrue to the Metropolitan Manila Commission, and fifty percent to the City or
Municipality where the property subject to tax is situated.
SEC. 7. Promulgation of Rules by the Secretary of
Finance.—The Secretary of Finance shall promulgate the rules and
regulations necessary to implement the provisions of this Decree and these shall
henceforth be considered or forming part of this Decree.
SEC. 8. Repealing Clause.—All laws, decrees,
orders, rules and regulations which are contrary to or inconsistent with this
Decree are hereby repealed or modified accordingly.
SEC. 9. Effectivity.—This Decree shall take effect
immediately.
Done in the City of Manila, this 11th day of June in the year of Our Lord,
Nineteen Hundred and Seventy-Eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President: (Sgd.) JACOBO C. CLAVE Presidential Executive
Assistant