Real Property Tax Deadlines You Need to Know
Don't forget to settle your account as one of the quarterly deadlines is coming soon
One of the golden rules of property ownership is this: Don’t forget to pay your real property tax (RPT) on time. Otherwise, you may end up regretting it. According to Hazel Nicolasora of Uy, Nicolasora and Associates, Co. Tax and Accounting Services, non-payment of RPT or amelyar, as it is called in the vernacular, will give the local government the right to auction your property.
Payment for RPT is made at the Treasurer’s Office of the city or municipality where your property is located. (Other city governments offer more convenient payment options such as GCash or bank ATM.) Nicolasora gives us a snapshot of how basic RPT is computed: RPT Rate x Assessed Value = Real Property Tax
The maximum RPT rate for cities and municipalities within Metro Manila is at 2 percent; while in provinces, it’s 1 percent.
“The assessed value is the fair market value (FMV) of the property multiplied by the assessment level,” Nicolasora explains. “The assessment level is the percentage applied to the FMV depending on its classification whether residential, agricultural, commercial, industrial, timberland, and mineral.”
Note that RPT for stand-alone houses and condominium units may differ depending on their assessed value.
Remember These Dates
Property owners can opt to pay annually or by installment. For annual payments, local government units offer certain discounts if RPT is settled before a specific date. In Quezon City, for instance, owners can avail of a 20 percent discount if you pay before March 31. In Marikina City, the discount can run from 10 to 50 percent depending if you pay on December of the previous year or before March 31 of the current year. The due date for annual RPT payment is on or before January 31.
Installment payment options are also available. Owners can opt to pay in four quarterly installments, due on or before the last day of each quarter:
- March 31
- June 30
- September 30
- December 31
Making advance payments may entitle you to “a discount not exceeding 20 percent of the annual tax due,” according to Nicolasora.
On the other hand, what are the consequences of ignoring these deadlines and defaulting on your RPT payments?
“Before buying property, one must be ready for the responsibility it brings, like payment of RPT on time. In case of failure to pay on time, an interest of 2 percent per month is imposed on the unpaid amount. This can go up to a maximum of 72 percent,” explains Nicolasora.
Some local government units offer a reprieve via a “tax amnesty” on interests and penalties. Just get in touch with the Treasurer’s Office for more details.
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