This product is made possible by the generous support of ... – City Engineer’s Office ... PCAB...

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This product is made possible by the generous support of the American people through the United States Agency for International Development (USAID), under Cooperative

Agreement No. 492-A-00-07-00021-00. The contents of this Guidebook are the responsibility of The Asia Foundation and do not necessarily reflect the views of

USAID or the United States Government.

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ContentsAcknowledgementList of Acronyms

Introduction

Part I. Business Permits Administration Services Issuance of New Business Permit Renewal of Business Permit Additional Line/Activity of Business Change of Business Address Change in Ownership Change in Business Name Retirement of Business Permit

Variations and Good Practices in BPLARecommendations to Meet Service Standards

Part II. Real Property Tax Administration Services General Revision Issuance of Tax Declaration for New Buildings Issuance of Tax Declaration for Building Improvement or Renovation Subdivision and/or Consolidation of Properties Issuance of Tax Declaration for New Discovery (Land) Issuance of Tax Declaration for New Machinery Issuance of Certificate of Improvements/No Improvements Issuance of Tax Declaration for Transfer of Ownership Issuance of Certificate of Tax Declaration/Certified True Copies of Documents Property History Trace Reclassification of Real Property Annotation or Cancellation of Encumbrances Billing and Collection

Variations and Good Practices in RPTARecommendations to Meet Service Standards

AcknowledgementThe Asia Foundation extends its gratitude to the following persons who have unselfishly shared their time and resources to develop this Service Standards Guidebook on Business Permits and Licensing Administration and Real Property Tax Administration.

The CITy GoveRnmenT of BuTuAn

HON. DEMOCRITO D. PLAzA IICity Mayor

GuALBERTO C. BELCINALicensing Officer IV

MA. Luz D. BRINGASLocal Revenue Collection IV

zELFRED ANTHONy T. COCONInformation Systems Analyst III

ROMEO A. CORTEzHuman Resource Management Officer I

The CITy GoveRnmenT of IRIGA

HON. MadelaiNe alfelOr-GazMeNCity Mayor

EDWIN V. ALBINOAssistant City Assessor

ELEANOR C. BONLocal Treasury Operations Officer III

SHARON P. BORROMEOSociologist II, HRMO Designate

JEAN A. COLocal Assessment Operations Officer IV

The CITy GoveRnmenT of RoXAS

HON. VICENTE B. BERMEJOCity Mayor

MARILyN G. ALBARANAssistant Department Head, HRMO

RONALD AMIGOCity Administrator

NEMIA ATIENzALicensing Officer II

NORMA V. BILLONESCity Assessor

LORNA A. DAVIDLocal Assessment Operations IV

Luz S. DuMANONHuman Resource Management Officer IV

MA. JOCELyN G. MAN-ONLocal Revenue Collection Officer I

MANOLO B. SENOTax Mapper IV

DINA V. EGIPTOLocal Treasury Operations Officer I

ATTy. CICERO V. MALATECity Legal Officer

MIRAH A. NACARIOLocal Treasury Operations Officer 1

CARLITO M. OLIVACity Assessor

ARLETTE CALDEAAdministrative Officer IV

CHARLITA A. CASTROLicensing Officer II

SAMuEL D. NARCISOLocal Assessment Operations Officer IV

MIMI B. RIANOAssistant City Treasurer

REX A. TALABuCONRevenue Collection Clerk II

THE CITY GOVERNMENT OF SANTIAGO

HON. AMELITA S. NAVARROCity Mayor

ATTy. HONESTO M. ANDRESCity Permits and Licensing Inspection Officer

ANTONIO C. CARREONCity Human Resource Management Officer

ARCH. EDGARDO MAR A. CASTROCity Planning & Development Officer

ANTONIO T. GATIWANLocal Revenue Collection Officer I

The CITy GoveRnmenT of SuRIGAo

HON. alfONsO s. CasurraCity Mayor

NELSON S. ALCALAManagement Audit Analyst

MA. VICTORIA A. ARANAClerk II, City Mayor’s Office

uRIEL EuGENIO S. CORREOSPlanning Officer III

ARACELI C. DELA ROSALocal Assessment Operations Officer I

THE CITY GOVERNMENT OF TACURONG

HON. liNO O. MONtillaCity Mayor

FLORDELIzA A. ALIPERIOLocal Assessment Operations Officer III

HENRy D. AMBOyLicense Inspector II

ANGELITO G. ARzAGONRevenue Collection Clerk II

DIANA T. GuADALuPEAdministrative Officer V

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ELSA M.GAVINOExecutive Assistant III

BENITO H. INESCity Assessor

LORENzO D. PALAGANAS, JR.Assistant City Treasurer

ATTy. EARNEST A. SOBERANOCity Legal Officer

DANILO M. VERGARACity Administrator

FRuTO C. DuBDuBANAssistant City Assessor

GLORIA O. GIMENAHuman Resource Management Officer IV

EMMALINDA u. LIPAOClerk II, City Treasurer’s Office

ELMER C. TECSONCity Planning and Development Coordinator

SARAH P. yAMITAssistant City Treasurer

EDuARDO D. LECHONSITOAdministrative Officer III

CHARLIE R. LLAMASAdministrative Officer III

ROMuLO P. PACLIBARLocal Treasury Operations Officer III

EDuARDO PASAPORTELicense Officer II

NATIVIDAD S. PROLOGOLocal Assessment Operations Officer III

Acronyms

ARmD – Assessment Records Management DivisionARPn – Assessment Record Property Number

BfP – Bureau of Fire ProtectionBIR – Bureau of Internal RevenueBLGf – Bureau of Local Government FinanceBoSS – Business One Stop ShopBPLA – Business Permit and Licensing AdministrationBPLo – Business Permit and Licensing OfficeBPLIS – Business Permit and Licensing Information SystemBTACS – Business Tax Assessment and Collection System

C-enRo – City Environment and Natural Resources OfficeCAo – City Architect’s OfficeCAR – Certificate Authorizing RegistrationCAsso – City Assessor’s OfficeCDA – Cooperative Development AgencyCeo – City Engineer’s OfficeCho – City Health OfficeCmo – City Mayor’s OfficeCPDo – City Planning and Development OfficeCTC – Community Tax CertificateCTo – City Treasurer’s Office

DAR – Department of Agrarian ReformDenR – Department of Energy and Natural ResourcesDof – Department of FinanceDTI – Department of Trade and Industry

eDP – Electronic Data Processing

fAAS – Field Appraisal and Assessment SheetfCTD – Field Copy of Tax Declaration

GIS – Geographic Information SystemGSIS – Government Service Insurance SystemGSo – General Services Office

hDmf – Home Development Mutual FundhLuRB – Housing and Land use Regulatory Board

ICIPBAC – Iriga City Investment Promotion and Business Assistance CenterICT – Information and Communication Technology

LAoo – Local Assessment Operations Officer

nARP – Notice of Assessment of Real PropertynoA – Notice of Assessment

oR – Official Receipt

PCAB – Philippine Contractors’ Accreditation BoardPIn – Property Identification NumberPnP – Philippine National Police

RA – Republic ActRem – Real Estate MortgageRoD – Register of DeedsRPTA – Real Property Tax AdministrationRPTIS – Real Property Tax Information SystemRPTACS – Real Property Tax Assessment and Collection SystemRPToP – Real Property Tax Order of PaymentRPu – Real Property unit

SeC – Securities and Exchange CommissionSfmv – Schedule of Fair Market ValuesSP – Sangguniang PanglungsodSSS – Social Security Services

TCT – Transfer Certificate of TitleTD – Tax DeclarationTmCR – Tax Mapping Control Roll

TAG – Transparent Accountable GovernanceTWG – Technical Working Group

uSAID – united States Agency for International Development

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Introduction

Since 2002, the Transparent Accountable Governance (TAG) project, with support from the united States Agency for International Development (uSAID), has helped local governments in Mindanao. The project provided assistance to improve local government service delivery resulting in improved revenue generation capacity.

To do this, cities were invited to share their respective processes, policies, and practices for delivering services in Business Permits and Licensing Administration (BPLA) and Real Property Tax Administration (RPTA). The purpose was to find out if similarities in the practices of local government in these two services exist, whether cities follow similar service standards, and whether target performance rates could be set for different cities given the variations in processes, practices and tools.

The cities of Butuan, Surigao, and Tacurong in Mindanao; Iriga and Santiago in Luzon; and Roxas in Visayas participated in the initiative. Technical personnel responsible for administering business permits and licenses and real property tax attended a series of workshops that allowed them to identify common services related to BPLA and RPTA, document their respective services in a uniform manner, and compare services and processes across the six cities. Human Resource Development officers of these cities also learned to write Performance Target Worksheets based on descriptions of services and key activities provided by the technical staff. In the course of doing this, several interesting features of local government service delivery were discovered:

Variation in the delivery of services. Although there was a common pattern in the process flows, variations were always present — some were slight, others significant — but all reflected different ideas. These variations were observed in: processes followed, signatories required, fees charged, documents needed, and forms used. The timing of regulatory inspections varied from city to city, occurring before, during, or after the renewal period.

Introduction

Service Standards Handbook

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Impact of service standards. As part of the documentation of existing services, cities cited time, cost, quantity, quality, and customer satisfaction as key standards. Setting standards motivates cities to design improvements that have a positive impact on their efficiency.

Increased commitment to improve service delivery. The city governments moved the process forward by ensuring that employees are included as stakeholders in service delivery outcomes. Not only are they informed about their role and contribution, but they are also motivated to be active participants to ensure that service delivery standards are met.

These observed features of local government service delivery led to the idea of developing this Guidebook in order to:

Provide a guide for cities to compare their processes and improve their •service delivery;Promote the idea of service standards and provide examples of how cities •define these; andDemonstrate how these standards can improve services.•

This Guidebook has been divided into two main parts that focus on services that contribute to increased revenue generation — BPLA and RPTA. Both parts enumerate the common services that the cities provide, and the most common process flow in the delivery of each service. Within each part are chapters that describe the various services under the BPLA and RPTA. The chapters provide the reader with a quick reference guide that illustrates the process flow and the description of each step, legal basis, clients, service providers, fees, signatories, and the requirements for each service. At the end of each major part are sections that focus on innovative practices and recommendations to improve the local government’s service standard.

The Guidebook is not intended to be a full and complete reference on how cities deliver their services, and set and meet their standards. Instead, it is meant to be a catalyst — an example of what cities can do when they work together to compare and improve services, set and achieve service standards, and increase employee motivation to meet these standards.

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It is the hope of the TAG project and its partner cities that this seminal work will encourage wider documentation comparing city services, making all civil servants aware of their service standards, thus reinforcing their personal commitment to meeting them.

The Asia Foundation would like to thank the cities of Butuan, Iriga, Roxas, Santiago, Surigao, and Tacurong for sharing with the TAG project their valuable knowledge, experiences, and insights, which made this Guidebook possible.

The Asia Foundation Manila, Philippines December 2009

Introduction


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Business Permit and licensing administration (BPla)services

Part 1


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ISSUANCE OF NEW BUSINESS PERMIT

The issuance of a new business permit is done at any time of the year. The permit legalizes a business activity for a new business establishment.

Legal BasisLocal Government Code (Republic Act •7160)

ClientsNew business owners

Service ProvidersThe Business Permit and Licensing Office (BPLO) provides this service. Clearances from the following offices are pre-requisites in the issuance of the business permit:

City Planning and Development Office •(CPDO)City Engineer’s Office (CEO)•City Architect’s Office (CAO)•City Health Office (CHO)•General Services Office (GSO) •City Environment and Natural Resources •Office (C-ENRO)Bureau of Fire Protection (BFP)•Philippine National Police (PNP) •

1Process Flow*

Filing of application form

Declaration of capitalization and computation of Business Tax

Payment of taxes and fees

Recording of payment

Submission and evaluation of regulatory requirements

Preparation of the business permit

Review and recommendation before mayor’s signature

Signing of the business permit

Release of the business permit

--------------------------*The description for each step can be found in the succeeding pages of this chapter.

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Issuance of New Business Permit

Service StandardsThe most important standard is processing time, measured from the time an application is filed to the time the permit is released. The processing time observed for the Business-One-Stop-Shop (BOSS) process done January 1-20 of each year ranges from one hour to one month.

FeesFees may vary from city to city, and may change over time. Other cities do not charge any fee.

RequirementsCities have specific requirements for this service, which may include the following:

Completed application form•Community Tax Certificate (CTC)•Certificate of Incorporation from the Securities and Exchange •Commission (SEC) Business name registration from the Department of Trade and Industry •(DTI)Certificate of Registration from the Cooperative Development Authority •(CDA) Sworn statement of capital outlay •Official Receipt (OR) for business tax and fees•Health Certificate from the CHO•Certificate of payment of real property tax•Certificate of accreditation from the Philippine Contractors’ •Accreditation Board (PCAB) for general/specialty and engineering contractorVarious clearances and permits issued by the: barangay• 1, zoning office of the CPDO, CEO, C-ENRO, PNP, BFP, Social Security System (SSS) and Bureau of Internal Revenue (BIR)

--------------------------1 The barangay or village is the smallest political and administrative unit in the Philippines


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SignatoriesThe signatories for the clearances and the business permit may include:

City mayor or the secretary to the mayor•City administrator•City treasurer•City health officer•zoning administrator•City engineer•General services officer•Economic enterprise manager •BFP inspector•Business permits licensing officer•Chief of police•C-ENRO officer•

Process Flow

1 Filing of application form. upon receipt, the receiving clerk checks the completeness of the information and tells the applicant about the next

steps and the required documents.

2 Declaration of capitalization and computation of business tax. The assessment officer validates the declared capital investment and computes

the business taxes due to the city.

3 Payment of taxes and fees. The local revenue collector receives payment of the appropriate business tax and fees, and issues an Official Receipt

(OR).

4 Recording of payment. Another City Treasurer’s Office (CTO) employee records the payment.

5 Submission and evaluation of regulatory requirements. The BPLO employee receives documents and checks for completeness. The employee

also checks the OR to make sure all required taxes and fees have been paid.

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6 Preparation of the business permit. An employee under the BPLO or from the business assistance center prepares the permit. Whoever

prints the permit also maintains a control logbook of permits printed.

7 Review and recommendation before mayor’s signature. An officer reviews the permit and recommends it to the mayor for signature. In most

cases the head of the BPLO does the review.

8 Signing of business permit. The mayor signs the business permit. In some cases, the signing authority is delegated to the city administrator or

the secretary to the mayor.

9 Release of the business permit. An officer from CMO, BPLO, or CTO releases the signed business permit and retains a file copy. The release is

recorded in a logbook, signed by the applicant to indicate receipt.

Issuance of New Business Permit


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RENEWAL OF BUSINESS PERMIT2Renewal of business permits are done every January 1-20, although late renewals occur. The renewal process legalizes the continued operation of a business establishment.

Legal BasisLocal Government Code (RA 7160) •

ClientsBusiness owners, managers, accountants, and bookkeepers

Service ProvidersThe BPLO provides this service. Clearances from the following offices are pre-requisites in the renewal of the business permit:

CMO•CTO•City Permits and License Inspection •Office

Service StandardsThe most important standard is the time it takes to issue the business permit, measured from the time an application is received to the time the permit is released.



Validation of gross sales receipts

Assessment of business taxes








Process Flow*


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Renewal of Business Permit

RequirementsCities have specific requirements for this service which may include the following:

CTC•CDA registration (for cooperatives)•Billing statement from BPLO•Business tax and fees•Payment of occupation tax for additional employee, if any•Various clearances and permits issued by the: barangay, zoning office of •the CPDO, CEO, C-ENRO, CHO, DTI, PNP, BFP, SSS, and BIR


City mayor or the secretary to the mayor•City treasurer•City health officer•General services officer•Business permits licensing officer•Chief of police•BFP inspector•Economic enterprise manager •City planning and development coordinator (or designated official), or •zoning administratorCity engineer or building official (or designated official)•

Process Flow



2 Validation of gross sales/receipts. The assessment clerk allows the applicant to decide on the timing of payment, which may be annual, semestral,

or quarterly. The CTO issues a billing statement, signed by the BPLO. Regulatory fees are required by all cities to be paid annually.


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3 Assessment of business taxes. The assessment officer computes the business tax and the BPLO Officer approves it. A billing statement

signed by the BPLO Officer is issued to the applicant. In Roxas City, the City Treasurer reviews and approves the assessment.

4 Payment of taxes and fees. The local revenue collector receives payment of the appropriate business tax and fees, and issues an OR.

5 Recording of payment. The CTO is responsible for collecting business taxes and fees, and it also maintains records of payments.

6 Submission and evaluation of regulatory requirements. The applicant submits all regulatory requirements to the BPLO employee, who checks

for completeness of the documents. The employee also checks the OR to make sure all required taxes and fees have been paid.

7 Preparation of the business permit. An employee under the BPLO or a staff from the business assistance center prepares the permit.

Whoever prints the permit also maintains a control logbook of permits printed.

8 Review and recommendation before mayor’s signature. An officer reviews and recommends the business permit before the mayor signs it.

In most cases the head of the BPLO does this.

9 Signing of the business permit. In most cities, the mayor signs the business permit. In some cases, by authority of the mayor, the city

administrator or the secretary to the mayor may sign the permit.

10 Release of the business permit. A BPLO or CTO staff member releases the signed business permit to the applicant and retains a file

copy. The release is recorded in a logbook, signed by the applicant to indicate receipt.

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Additional Line/Activity of Business

3 ADDITIONAL LINE/ACTIVITY OF BUSINESS


Assessment and computation of declared capital investment








During the current year, a businessman may find it advantageous to add another line of business to his existing enterprise. This service would enable him to register the new or additional line/s of business with the city government. It also allows the city to update its records and collect related fees and taxes. In cases where the businessman fails to file an application for a new line of business after the renewal period**, he will be assessed corresponding fees and taxes.

Legal BasisLocal Government Code (RA 7160)•

ClientsOwners of business establishments and their representatives (accountants, bookkeepers, or administrators)

Service ProvidersThe main service providers for this service are the BPLO and the CTO. Clearances from the following offices are pre-requisites to release the business permit:

CHO •zoning Office under the CPDO•CEO•CAO•GSO•BFP•

Process Flow*

--------------------------*The description for each step can be found in the succeeding pages of this chapter.**Renewal period is from January 2-20 of every year


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PNP•C-ENRO•

Service StandardsAccuracy in registering new or additional lines of businesses is the first standard. The second is processing time, measured from the time an application is received to the time the permit is released.



CTC•CDA registration (for cooperatives)•Billing statement from BPLO•Business tax and fees•Payment of occupation tax for additional employee, if any•Various clearances and permits issued by the: barangay, zoning office of •the CPDO, CEO, C-ENRO, CHO, DTI, PNP, BFP, SSS, and BIR


City mayor or the secretary to the mayor•City administrator•City treasurer•City health officer•zoning administrator•City engineer•General services officer•Economic enterprise manager •BFP inspector•Business permits licensing officer•Chief of police•C-ENRO officer•

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Process Flow



2 Assessment and computation of capital investment. The assessment officer validates the declared capital investment and computes the

business taxes due to the city.

The officer allows the applicant to decide on the timing of payment, which may be annual, semestral, or quarterly. The CTO issues to the applicant a billing statement, signed by the BPLO. Regulatory fees are required by all cities to be paid annually. Business taxes in Iriga, Surigao and Roxas are paid quarterly. Tacurong and Santiago allow the applicant to choose on the timing of payment. Butuan requires the applicant to pay the fee in full.

3 Payment of taxes and fees. The local revenue collector receives payment of the appropriate business tax and fees, and issues an OR.

4 Recording of payment. The CTO is responsible for collecting business taxes and fees, and for maintaining payment records.

5 Submission and evaluation of regulatory requirements. upon submission, the BPLO employee checks for completeness of the

documents. The employee also checks the OR to make sure all required taxes and fees have been paid.

6 Preparation of the business permit. An employee under the BPLO or a staff from the business assistance center prepares the permit. Whoever

prints the permit also maintains a control logbook of permits printed.

7 Review and recommendation before mayor’s signature. An officer reviews and recommends the business permit before the mayor signs it. In most cases

the head of the BPLO does this.

8 Signing of business permit. In most cities, the mayor signs the business permit. In some cases, by authority of the mayor, the city administrator or the

secretary to the mayor may sign the permit.

Additional Line/Activity of Business


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9 Release of the business permit. An employee releases the signed business permit to the applicant and retains a file copy. The release is recorded in a

logbook, signed by the applicant to indicate receipt.

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CHANGE IN BUSINESS ADDRESS4Every business permit issued to a business operator indicates the exact address of the business establishment. If the operator decides to transfer the location of the establishment, he must go through a process that may be combined with the annual renewal of business permits every January 1-20 or anytime during the year, depending on his need.

This service updates existing records by validating the location of existing business establishments. Legal Basis

Local Government Code (RA 7160) •

ClientsBusiness owners or their representatives (administrators, managers, accountants or bookkeepers)

Service ProvidersThe main service providers are:

CMO•CTO •

Service StandardsProcessing time is the most important service standard and should be less than an hour. Another standard is the accuracy in terms of the information found in the documents.

Filing of Letter of Request

Payment of Fees

Issuance of a new business permit/updating of records

Change in Business Address

Process Flow*



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Letter of request from the proprietor/owner of the business establishment or •his representativeBrief description of the old and the new location •2x3 picture of the new location•Current business permit•Various clearances and permits issued by the: barangay, zoning office of •the CPDO, CEO, C-ENRO, CHO, DTI, PNP, BFP, SSS, and BIR

SignatoriesThe signatories for the business permit may include:

Business permits licensing officer•City mayor or designated signatory•

Process Flow

1 Filing of written request. The written request must be supported with a clearance from the barangay where the business establishment is to be

relocated. When the request is made after the annual renewal of business permit, a new business permit may not be issued. A written request addressed to the CTO or CMO will suffice, provided records at the CTO and the business permit section of the CMO are updated to reflect the change in location.

2 Payment of fees. The local revenue collector receives payment of the appropriate business tax and fees, and issues an OR.

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3 Issuance of a new business permit/updating of records. Some cities issue a new business permit reflecting the change in location. In Surigao and

Tacurong, records in the CTO as well as the business permit section of the CMO are updated only when the request for change of business address happens after the annual renewal of business permits in January. Santiago records it through the City Permits and License Office, Roxas and Butuan through the BPLO, and Iriga through the Business Taxes and Fees Division.

Change in Business Address


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CHANGE IN OWNERSHIP5





Release of business permit

This service is defined as the process of verifying the transfer of business ownership to a new owner. It is provided every time there is an application to legalize the continued operation of a business establishment under a new owner.




BPLO•CTO •

Service StandardsProcessing time is the most important service standard, which should be less than an hour. Accuracy in terms of information found on documents is another standard.


Process Flow*


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Change in Ownership

RequirementsMode of transfer of ownership•



Process Flow

1 Filing of application form. upon receipt, the receiving clerk checks the completeness of the information and tells the applicant about the

next steps and the required documents.

2 Preparation of the business permit. An employee under the BPLO or a staff from the business assistance center prepares the permit.

Whoever prints the permit also maintains a control logbook of permits printed.

3 Review and recommendation before mayor’s signature. An officer reviews and recommends the business permit before the mayor signs it.

In most cases the head of the BPLO does this.

4 Signing the business permit. In most cities, the mayor signs the business permit. In some cases, by authority of the city mayor, the city

administrator or the secretary to the mayor may sign the permit.

5 Release of the business permit. Before the signed business permit is released to the applicant, he signs the logbook indicating acceptance and

receipt of the permit. The BPLO, CTO, or local business office staff member releases the business permit and retails a file copy.


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CHANGE OF BUSINESS NAME6In the course of its operations, a business establishment may decide to change its trade name with the DTI and with the city where the business is located. The business permit is revised to reflect the new name and the local government also updates its master list of registered business establishments to reflect the change in business name. Thus, the purpose of this service is to update, ascertain, reflect, and legally recognize the new name of the business establishment.

Legal BasisLocal Government Code (RA 7160) •Local Revenue Codes •



CMO•CTO •

Service StandardsAccuracy is the standard in amending the list of registered businesses.

Filing of letter of request

Evaluation and/or verification of the request

Review and approval of the change in business name

Recording/Posting of name in the list of registered

businesses

Printing and approval of the new permit reflecting the new

business name

Release of the new business permit

Process Flow*


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Change of Business Name



Application letter or accomplished application form•DTI Certificate of Registration under the new name•



Process Flow

1 Filing of letter of request. Cities require applicants to submit a letter and/or a completed application form addressed to the city mayor

requesting a change in business name.

2 Evaluation and/or verification of the request. The cities of Roxas and Iriga conduct inspections to verify whether the old business name

is no longer being used, or if there is an old business with a similar name to ascertain that the application is not for a new business permit.

3 Review and approval of the change of business name. In Roxas City, the head of the BPLO is authorized to approve requests for change of

business name. In other cities, it is the city treasurer.

4 Recording or posting of the new business name in the list of registered businesses. Cities maintain a list of registered business

names. On this list, the old business name is replaced with the new business name. The cities of Roxas and Butuan reflect the change on the list only after an inspection.


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5 Printing and approval of new business permit reflecting the new business name.

6 Release of the new business permit.

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RETIREMENT OF BUSINESS7

Filing of letter of intent and application form

Conduct of inspection

Approval of application

Return/surrender of old business permit or plate

Retirement of business is done whenever a business owner terminates its operation. It serves to update the city’s list of registered businesses, validate the closure of the business, and prevent accumulation of tax payment and penalties.


ClientsBusiness owners or their managers, administrators, accountants or bookkeepers.


CMO•BPLO•CTO•

Service StandardsThe following standards are observed: (1) Accuracy in recording retirements, (2) the time it takes to retire a business, which should be completed within one day, and (3) Promptness of the staff to render service. FeesFees may vary from city to city, and may change over time. Other cities do not charge any fee.

Retirement of Business

Process Flow*



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Barangay Captain’s certification that the business is closed•Inspection and latest sworn statement of gross sales•Original and latest business/mayor’s permit•Official receipt for payment of business taxes•Old business plates•

SignatoriesThe signatories may include:

CMO•CTO•Chief of the license division•Inspector from the CTO•Assistant city treasurer•

Process Flow

1 Filing of letter of intent and application form. The letter and application form are submitted and endorsed either to the CTO or

BPLO.

2 Conduct of inspection. The inspection time varies from one to two hours. Of the six cities, only Santiago City does not consider

inspection as an activity.

3 Approval of application. The application for retirement of business in Tacurong City is approved by the mayor. In Roxas City, it is approved

by the BPLO head. The CTO approves the retirement of business in Surigao, Butuan, and Iriga.

4 Return/surrender of old business permit or plate. All cities require the applicant to surrender his business permit, business plate, and other

pertinent documents.

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A. Issuance of New Business Permit

Temporary approval, inspection to follow.• Most cities issue temporary clearances during the BOSS so that the business permit can be released on time. Inspection and conduct of field visits are done within 30 days.

Use of Information and Communication Technology (ICT).• The Business Permits License Information System (BPLIS) for Butuan and Tacurong, and Business Tax Assessment and Collection System (BTACS) are used for:

Encoding.• An employee encodes relevant information of new business establishments in the database.Assessment. • The employee assesses the business tax and fees through the assessment module of the BPLIS/BTACS and prints out the assessment form. Payment.• The revenue collector refers to the BPLIS/BTACS database to facilitate payment. This prevents error, and ensures that the right amount is collected.

B. Renewal of Business Permits

Centralized Processing or BOSS. • BOSS processes are made more efficient when the layout is aligned with the process flow, allowing applicants to move from one table to another in one continuous line.

Use of ICT. • Butuan, Tacurong and Surigao use ICT to simplify the process for renewal of permits. It includes:

Verification. • An employee prints out a verification sheet using database records of the previous year’s declared gross sales/receipts, and the payments made.Assessment.• The employee assesses the business tax and fees through the assessment module of the BPLIS/BTACS and prints out the assessment form. Payment.• The Revenue Collector refers to the BPLIS/BTACS database to facilitate payment. This prevents error, and ensures that the right amount is collected.

VARIATIONS AND GOOD PRACTICES IN BPLA

Variations and Good Practices in BPLA


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Early inspection for regulatory requirements.• Surigao and Butuan conduct early annual mechanical and electrical inspection before the month of December.

Provision of snacks and other amenities for applicants. •

Reducing the number of times payments have to be made.• In Tacurong, all payments are tallied in a form called the “Itinerary” and paid towards the end of the process.

C. Change in Ownership

Conduct of inspection. • The BPLO of Roxas city does this to ascertain the relationship between the old and new owners before any assessment of taxes and fees is made. This is significant because if the new owner is an immediate family member of the old owner, the application may simply be an effort to avoid paying surcharges or penalties for non-compliance with business permit requirements the previous year/s.

D. Retirement of Business

Conduct of Interview.• The CTO of Surigao city interviews the business proprietor/owner about his plan to retire the business, instead of simply relying on the data written on the application form.

Release of proof of retirement certificate. • The CTO of Iriga city issues a retirement form upon approval of the application. The CTO of Surigao issues a Retired Taxpayer Certificate. These serve as proof that the applicant has formally retired his permit.

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RECOMMENDATIONS TO MEET SERVICE STANDARDS

To meet the standards for this service, the Technical Working Group (TWG) recommends the following practices and procedures:

Centralized application and processing.1. Cities are encouraged to conduct centralized acceptance and processing of new permits using the BOSS model.

Recording of transactions in a logbook.2.

Acceptance of application forms.• The number of applications and the time these were received should be recorded in a logbook so the management can determine how many applications have been filed.

Release of Business Permits.• The release of permits and the time these were released should be recorded in a logbook so the management can determine how many permits have been released.

Validation of declared capital investment followed by assessment. 3. This should take into account each applicant’s capital outlay based on uniform criteria so that applicants with similar business activity can be treated fairly.

Payment of appropriate fees.4. For the taxpayer’s convenience, he/she should pay all required fees and taxes only once. Amounts paid should be clearly written on official receipts and payments should also be properly recorded by the office responsible for business permits administration.

Delegation of Authority to Sign Permits.5. In their absence, mayors are encouraged to delegate the signing of business permits to trusted officers to avoid delay.

Use of Business Plates and Stickers. 6. use of business plates is recommended because they are easier for the inspector to see, and are more durable. The use of stickers to indicate payments made is also recommended to simplify the inspection and monitoring process.

Recommendations to meet Service Standards in BPLA


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Conduct of Inspection. 7. This activity is recommended for the major service providers. This way, they can determine whether there is collusion between the old and new owners to avoid paying higher business taxes, or whether another line of business has been added by the new owner.

Reduce paperwork.8. To facilitate the process, eliminate the requirement for a letter of request for a change in business name and retirement of business permit. Submission of an application form is sufficient.

Updating the list of registered businesses.9. This should be done only at the end of the service, after all requirements have been met, and fees/taxes paid. The use of appropriate ICT can enhance this service. With a well-designed information system, service providers can easily review records under the old business name and automatically update the database of registered businesses with printing of the new permit. The cities also recommend that applicants who own structures or land on which the business establishment is located be asked to show proof of real property tax payment.

Certificate as proof of retirement. 10. Provide a proof of retirement, such as Surigao City’s “Retired Certificate,” for the satisfaction of the applicant.

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real Property tax administration (rPta)services

Part 2


32

33

General Revision

General Revision is the updating of Tax Declarations (TD) based on an updated Schedule of Fair Market Values (SFMV) and data about properties (land, buildings and other improvements, and machineries). updating of data on properties come from a related service — Tax Mapping of Real Properties. General Revision brings about an increase in Assessed Valuation for taxation purposes.

As mandated under Republic Act 7160, the General Revision shall be conducted two years after the code’s effective date in 1992 and every three years thereafter. Some cities do regular tax mapping; others undertake this in connection with General Revision.

GENERAL REVISION1

Filing of sworn statements declaring true values of real

properties

Data gathering for Schedule of Fair Market Values (SFMV)

Preparation of the proposed SFMV

Endorsement of the proposed SFMV

Public hearing

Adoption of the SFMV

Pre-field activity

Field tax mapping

Implementation of the new SFMV

Final Review

Approval of the Field Appraisal and Assessment Sheet

(FAAS)

Transmittal of Assessment Roll to CTO

Preparation of new Tax Declarations (TD) and Notices of Assessment

Approval of TD

Issuance of TD

Recording of TD in Assessor’s Files

Process Flow*



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Legal BasisLocal Government Code (RA 7160)•Department of Finance (DOF)-Bureau of Local Government Finance •(BLGF) issuances

ClientsProperty owners, administrators and other interested parties properly authorized by the legal property owner, are the direct clients of this service.

Service ProvidersThe main service providers are the:

City Assessor’s Office (CAssO) •Electronic Data Processing (EDP) section•Sangguniang Panlungsod (City Council)•

Service StandardsThe standards for this service are: (1) Quality, which refers to accuracy of revised entries, (2) Response time, which should not take more than two years to complete, and (3) The owner should receive his copy of TD before the year to which it applies.



Tax Mapping Control Roll (TMCR)•Field Appraisal and Assessment Sheet (FAAS)•Approved New Schedule of Fair Market Values (SFMV)•Other relevant documents for successful delivery of the service•

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SignatoriesThe signatories may include:

Official who prepared the TD•CAssO •City Council•CMO•

Process Flow

1 Filing of sworn statements declaring true values of real properties. The city as ses sor ’ s office accepts sworn statements prepared by real

property owners. This activity is done simultaneously with the second activity.

2 Data gathering for SFMVs. The city as ses sor ’ s office staff gather data on real property prices from local associations of real property

brokers, newspaper advertisements offering properties for sale, and records of recent real property sales, among other sources. The assessor and his staff analyze the gathered data and prepare a preliminary schedule of market values.

3 Preparation of the proposed SFMV. The assistant assessor or local assessment operations officer (LAOO) prepares the proposed SFMV.

4 Endorsement of the proposed SFMV. The city assessor submits the proposed schedule to the city mayor for endorsement to the City

Council.

5 Public hearing. The City Council or its appropriate committees conduct a public hearing.

6 Adoption of the SFMV. The City Council enacts the SFMV into an ordinance and publishes it. Publication is made in a newspaper of

general circulation in the locality, or by posting in the city hall or in two other conspicuous places.

General Revision


36

7 Pre-field activity. The LAOO heads the preparation of Field Appraisal Assessment Sheet (F A A S). The Tax Mapping Division Head leads the

preparation of section maps and pre-TMCR.

8 Field tax mapping. The city as ses sor ’ s office personnel (tax mapper, draftsman, appraisal division staff, records section staff ) conduct

inspection for possible discovery of undeclared lands and/or improvements and for validation of FAAS data of existing properties.

9 Implementation of the new SFMV. The ci ty as ses sor ’ s office completes new FAAS, based on field observation and new SFMV.

10 Final Review. The assistant city assessor reviews the completed FAAS for approval by the city assessor.

11 Approval of the FAASes. The city assessor approves the FAASes.

12 Preparation of new TDs and Notices of Assessment (NOA). The city as ses sor ’ s office prepare the new TDs with corresponding NOA

based on the approved FAASes.

13 Approval of TDs. The city assessor approves the new TD with corresponding NOA.

14 Issuance of TDs. The clerk and/or messenger delivers the new TDs, with the corresponding NOA, to property owners. This may be done

by mail or by hand.

15 Recording of TDs in Assessor’s Files. Copies of the new TDs are officially recorded or posted in the files of the city assessor.

16 Transmittal of Assessment Roll to City Treasurer’s Office. An assessment roll containing a list of all General Revision TDs is sent

by the city assessor to the city treasurer.

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ISSUANCE OF TAX DECLARATION FOR

NEW BUILDINGS2This service can be requested by the building owners or their authorized representatives. It is a transaction that occurs everyday. It aims to appraise and assess newly discovered or newly declared buildings and other structures. Alternatively, the assessor can issue a tax declaration for new buildings not declared by their owners.

Legal BasisLocal Government Code (RA 7160)•Regulations and issuance from DOF-•BLGF

ClientsReal property owners, administrators or their representatives, and transacting public or taxpayers.

Service ProvidersThe main ser v ice providers are :

CAssO•CTO•

Service StandardsThe most important standard is the time it takes to issue a TD for the new building. Time can be measured from the acceptance of the request to the time the approved tax declaration is released.

Filing of request


Appraisal and assessment

Approval of the TD

Release of the TD to the real property owner

updating Assessor’s and CTO files

updating of the CTO’s records

Issuance of Tax Declaration for New Buildings

Process Flow*



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The response time differs from one city to another, ranging from 30 minutes to four hours and 50 minutes. This period is affected by the distance from city hall to the property, conditions affecting transportation, and the property itself.


RequirementsCit ies have spec i f ic requirements for thi s ser v ice , which may inc lude the fo l lowing:

Building permit •Occupancy permit •Building plan and bill of materials•

Signator iesThe s ignator ies may inc lude:

Appraiser•Assistant city assessor or head of appraisal division•City assessor•Records officer •

Process Flow

1 Filing of request. Written requests are received by a clerk. If the request is verbal, the client will be interviewed by the assessment

division chief or the officer-of-the-day.

2 Conduct of inspection. The assessment clerk inspects and verifies status of the new building, its area, and materials used.

3 Appraisal and assessment. This includes the preparation of the FAAS, TDs, and NOAs. The assessment division personnel prepares

FAAS with computations, assigns TD number, and forwards FAAS to the Tax Mapping Division personnel who assigns the Property Index Number (PIN). For cities that are computerized, assessment is done through the

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computer and hard copies of the TD and NOA are generated. For cities that are not computerized they proceed to the typing of the TD and NOA.

4 Approval of the TD. The appraiser signs the FAAS, the assistant city assessor or the head of the appraisal and assessment division signs the

FAAS and affixes his initial on the TD, and the Assessor signs the FAAS, the TD and the NOA.

5 Release of the TD to the real property owner. The copy of the approved TD, together with the NOA is released to the property

owner.

6 Updating Assessor’s files. Copies of the new TDs are officially recorded or posted in the files of the city assessor.

7 Updating of the CTO’s records. The records of the CTO are updated through the Journal of Assessments and Cancellation.

Issuance of Tax Declaration for New Buildings


40


BUILDING IMPROVEMENT OR RENOVATION3A TD for building improvement or renovation can be requested by building owners or their authorized representatives from the CAssO. It is a transaction that occurs everyday to update the appraisal and assessment of improvements or renovation made on buildings and other structures.

Legal BasisLocal Government Code (RA 7160)•DOF-BLGF regulations and issuances •

ClientsReal property owners, administrators or their representatives

Service ProviderThe main ser v ice provider i s the CAssO.

Service StandardsThe most important standard is the time it takes to issue a TD for the Building Improvement or Renovation, which can be measured from the time a request is received by the office to the time the approved TD is released.


Filing of request


Appraisal and assessment

Approval of the TD

Release of the TD to the real property owner

updating of Assessor’s files

updating of the CTO’s records

Process Flow*


41

Issuance of Tax Declaration for Building Improvement or Renovation

RequirementsCit ies have spec i f ic requirements for thi s ser v ice , which may inc lude the fo l lowing:

Building permit•Occupancy permit•Building plan•

Signator iesThe s ignator ies may inc lude:

Appraiser•Assistant city assessor or head of appraisal division •City assessor •Records officer•

Process Flow

1 Filing of request. Written requests are received by a clerk. If the request is verbal, the client will be interviewed by the assessment

division chief or the officer-of-the-day.

2 Conduct of inspection. The assessment personnel performs field inspection to verify the characteristics of improvement.

3 Appraisal and assessment. This includes the preparation of the FAAS, TD and NOA. Assessment Division personnel prepare the

FAAS with computations, assign the TD number, and forward the FAAS to the Tax Mapping Division personnel, who assign the PIN. For cities that are computerized, assessment is done through the computer and hard copies of the TD and Notice of Assessment is generated. The FAAS and TD for original building is cancelled and marked superseded. For cities that are not computerizes, they proceed to the typing of the TD and NOA.

4 Approval of the TD. The appraiser signs the FAAS, the assistant city assessor or the head of the appraisal and assessment division signs the

FAAS and affixes his initial on the TD, and the assessor approves the FAAS, the TD and the NOA.


42

5 Release of the TD to the real property owner. The copy of the approved TD, together with the NOA is released to the property owner.

6 Updating of Assessor’s files. Copies of the new TDs are officially recorded or posted in the files of the city assessor.

7 Updating of the CTO’s records. The records of the CTO are updated through the Journal of Assessments and Cancellation.

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Subdivision and/or Consolidation of Properties

SUBDIVISION AND/OR CONSOLIDATION

OF PROPERTIES4This service is provided to reflect subdivisions or consolidations in the city assessor’s maps and property records as requested by lot owners.

Legal BasisLocal Government Code (RA 7160)•Appraisal and assessment regulations •issued by the Department of Finance.

ClientsReal property owners or their administrators.

Service ProvidersThe main ser v ice provider i s the CAssO.

Service StandardThe time it takes to issue new TDs for subdivided or consolidated properties is the most important service standard. This is measured from the time a property owner or his representative files his request, until the time the new TDs are released. The response time should not be more than two hours and 30 minutes.



updating of tax maps and assignment of new PIN

Preparation of new FAAS and TDs

Review before signing of TD

Final Review

Approval of TD

updating of Assessor’s and CTO’s records through the Journal of Assessment and

Cancellation

Release to applicant

Process Flow*



44


Certified True Copy of the Title (TCT)•Approved subdivision or consolidation plan •Tax receipts or clearance to prove that any and all real property taxes •related to the subdivided or consolidated properties have been paid.Certificate Authorizing Registration (CAR), a document from BIR related •to capital gains tax

Signator iesThe signatories may include:

Appraiser•Assistant city assessor or head of appraisal division•City assessor•Records officer•

Process Flow

1 Filing of application form. upon submission of the Certified True Copy of the Title, the approved subdivision or consolidation plan,

tax receipts or clearance of real properties, and other relevant supporting documents, like the C A R , the receiving clerk will check for completeness.

2 Updating of tax maps and assignment of new PIN. The application, together with supporting documents, is forwarded to the tax mapping

division. Subdivision or consolidation is reflected on the section map, old PINs are retired, and a new PIN is assigned.

3 Preparation of new FAAS and TDs. The assessment clerk or LAOO prepares the FAAS and its corresponding TD. He also cancels the

previous TD, signs the FAAS, writing or stamping on it the number of the superseding TD.

4 Review before signing of TD. The LAOO checks and signs the FAAS and affixes initials on the TDs. He then forwards the documents to the

assistant city assessor.

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5 Final Review. The assistant city assessor or the head of the appraisal division reviews and signs the FAAS and affixes his initial to the TDs.

6 Approval of TD. The city assessor or his deputized representative signs the FAAS and TDs to indicate approval.

7 Updating of assessor’s and CTO’s records through the Journal of Assessment and Cancellation. Copies of the new TDs are recorded or

posted in the files of the city assessor.

8 Release to applicant. The officer-of-the-day releases the new TD to the applicant.

Subdivision and/or Consolidation of Properties


46


NEW DISCOVERY (LAND)5The Local Government Code and the DOF assessment regulations require all real properties (taxable or exempt) to be declared and included in the assessment roll. At times, the assessor might discover land properties that have not been declared or included in the roll. This service is provided to allow inclusion of these properties.

The process involves gathering data on the land’s actual location, classification, lot number, and area, including improvements thereon, boundaries, owner or person in actual possession of the land, and other relevant information.

Legal BasisLocal Government Code (RA 7160) •DOF appraisal and assessment •regulations and other issuances

ClientsProperty owners, administrators, and other interested parties, provided they have been authorized by the property owner.




FAAS preparation

Assignment of the PIN

Review of the FAAS

Approval of the FAAS

Preparation of TD

Review

Approval

Release of the Approved TD

Recording of TDs in Assessor’s Files

CTO’s records are updated

Process Flow*


47

Issuance of Tax Declaration for New Discovery (Land)

Service StandardsThe standards are: (1) Accuracy of entries in the TD for newly discovered land, and (2) Response time, or the time it takes to deliver the service, should not take more than two working days for a simple transaction. More complex discoveries can take longer.



Department of Environment and Natural Resources Management •(DENR)/CENRO clearance or certification of the subject landDocuments supporting ownership•Barangay certification that the applicant is in possession of the land•

Signator iesThe signatories may include:

Appraiser•Assistant city assessor or head of appraisal division•City assessor•

Process Flow

1 Filing of application form. The officer-of-the-day or a receiving clerk receives and verifies completeness of the accomplished request form

and supporting documents. An interview may be conducted.

2 Conduct of inspection. This is to determine how to reflect the newly discovered land on the tax maps and to gather relevant information

about the property.

3 FAAS preparation. The FAAS is accomplished based on inspection results.


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4 Assignment of the PIN. Tax mapping assigns the PIN.

5 Review of the FAAS done by the city assistant assessor or head of the assessment and appraisal division.

6 Approval of the FAAS. After final review, the city assessor signs the FAAS.

7 Preparation of TD. This is based on the FAAS. In Iriga, Tacurong and Butuan TDs are generated by the information system.

8 Review. This includes final review of the TD, with special attention to the correctness of the PIN and reflection of the property on the

section maps.

9 Approval. After final review the city assessor signs the TD.

10 Release of the Approved TD. The approved owner’s copy is then released to the applicant.


12 CTO’s records are updated through the Journal of Assessment and Cancellation.

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Issuance of Tax Declaration for New Machinery

ISSUANCE OF TAX DECLARATION

FOR NEW MACHINERY6“Machinery includes machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually directly and exclusively used to meet the needs of the particular industry, business or activity, and which by their very nature and purpose are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes, without which such industry or facility cannot function.” (Manual on Real Property Appraisal and Assessment Operations, January 2006 )

However, window-type airconditioning units, photocopiers, and vending machines are not classified as machinery.

The process described in this chapter is triggered by a property owner coming into the office to declare new machinery. However, all cities also conduct routine inspection of buildings and may initiate the issuance of discovered machinery on their own.

Identification of machinery for assessment


Preparation, computation of FAAS and TD

Review

Approval of FAAS and TD

Issuance of TD



Process Flow*



50

Legal BasisLocal Government Code (RA 7160) •Assessment and appraisal regulations issued by the DOF•

ClientsReal property owners, their administrators, or authorized representatives


Service StandardsThe standards are: (1) Quality, defined as accuracy in assessing newly discovered machinery, and (2) Response time. The aim is to issue the TD for new machinery within two days.



Sworn statement indicating price of machinery•Purchase receipt/sales invoice•Detailed listing of machinery with date of operation•Request for inspection•Certificate or clearance from the Board of Investment (if applicable)•Bill of lading and registration•

S i gna tor ie sThe s ignator ies may inc lude:

Personnel in-charge•Assistant city assessor •City assessor •

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Process Flow

1 Identification of machinery for assessment. The property owner comes to assessor’s office to file a TD for new machinery. He may be

required to fill out a form, or may be interviewed.

2 Conduct of inspection. The CAssO conducts inspections. They also require and verify documents that support the assessment of new

machinery.

3 Preparation, computation of FAAS and TD. All of the cities assign the PIN during the preparation of the FAAS.

4 Review. The assistant city assessor or the head of the appraisal division review the FAAS and TD prior to the approval of the assessor.

5 Approval of FAAS and TD. The city assessor approves the FAAS and TD.

6 Issuance of TD. The NOA is prepared after the approval of the TD. The approved TD and the NOA are issued to the applicant.



Issuance of Tax Declaration for New Machinery


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ISSUANCE OF CERTIFICATE OF IMPROVEMENTS/NO IMPROVEMENTS AND LAND HOLDINGS/NO LAND HOLDINGS

7Any city resident can ask his local government to issue a certification to the effect that he has land holdings or no land holdings. This might be required when he applies for a loan and intends to use his real property as collateral or when he applies for socialized housing loans that are open only to residents without properties. The citizen may not even ask for the certification himself. He may authorize the bank or agency to which he has applied for the loan to check on his property holdings.

Any resident with property may also need to present a certification to the effect that he has improved (or not improved) his real property holdings. This might be required in a loan or in negotiations for sale of property. He can also ask for this type of certification from his local government, through the CAssO.


ClientsDeclared real property owner/administrator, constituents who do not have real properties, banks and other institutions authorized by


Payment of fees

Research and trace of files

Preparation of certification

Approval of certification

Issuance of certification

Process Flow*


53

Issuance of Certificate of Improvements/No Improvements and Land holdings/No Land holdings

the owner, Ombudsman, and the BIR. The BIR uses information as a certification for its tax collection efforts.

Service ProvidersThe ma in s e r v i c e p rov ide r s a re the :

CAssO• Records management section and the officer-of-the-day •Assessment Records and Management Division (ARMD)•EDP •

Service StandardsThe standards are: (1) Response time, measured from the time the property owner/administrator files an application to the time the certification is released. The response time ranges from five minutes to 40 minutes. (2) Quality, defined as accuracy of the information provided in the certificate.



OR as proof of payment•Barangay certification or demolition permit/record •Inspection from the barangay•

S i gna tor ie sOnly the signatory of the City Assessor is needed.

Process Flow

1 Filing of application form. upon submission, the receiving clerk reviews the information. In Roxas, Iriga, and Surigao City, the clerk

also interviews the applicant.


54

2 Payment of fees. The applicant pays the required fees.

3 Research and trace of files. The clerk looks for files of properties under the name of the applicant (in Santiago City, the files

are known as “Property Ownership Cards”). The files show whether the applicant has any land holding. The files also show whether any improvements have been made on the applicant’s properties.

4 Preparation of certification. The clerk prints certification of land holding (or no land holding) and/or a certification of improvement

(or no improvement), depending on the request.

5 Approval of certification. The city assessor or his authorized representative signs the document.

6 Issuance of certification. A staff member from the CAssO releases the certification to the applicant and retains a file copy. The

applicant then signs the releasing logbook.

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Issuance of Tax Declaration for Transfer of Ownership


TRANSFER OF OWNERSHIP8The transfer or change of ownership is a regular transaction in the CAssO. This is done every time a customer comes in and requests a transfer of real property ownership.

The objective of the service is to declare, change, or transfer ownership of the real property to the new property owner and update the records of the office.

Legal BasisLocal Government Code (RA 7160)•TCT•Deed of Conveyance duly registered in •the Register of Deeds (ROD)Approved plans and other supporting •documentsDOF appraisal and assessment •regulations Other documents supporting the new •ownership

ClientsReal property owners/ taxpayers and administrators. Their representatives may also transact the transfer provided they submit all the necessary requirements.

Interview of customer, evaluation of documents

Preparation of FCTDs/FAAS

Assigning of new ARPN

Review and Approval of FAAS

Preparation of the TD

Review of the TD

Release of owner’s copy of TD and NOA

Recording of TD in Assessor’s files

updating of the CTO records

Process Flow*


Approval of the TD


56

Service ProvidersThe main ser v ice providers are the :

CAssO•CTO•

Service StandardsThe standards are: (1) Processing time, defined as the number of hours or minutes it takes to issue the new TD from the time an application is filed up to release of documents. Processing time for this service ranges from 18 minutes to two hours and 35 minutes. (2) Accuracy, which should be 100 percent.



Deed of conveyance duly registered with the ROD •CAR from BIR•Tax clearance •OR of transfer tax fee•Other supporting documents •Photocopy of TCT if titled property•DENR certification•Approved subdivision plan•Department of Agrarian Reform (DAR) certification in case of •agricultural landCapital gains tax•

S i gna tor ie sThe s ignator ies may inc lude:

City Assessor or designated signatory •Tax mapping division chief•

57

Process Flow

1 Interview of customer, evaluation of documents. An assessment clerk receives and evaluates the documents submitted. In Butuan City, the

assessment division chief checks the requirements.

2 Preparation of Field Copy of Tax Declaration (FCTD)/FAAS. This is undertaken by the assessment and appraisal division, particularly the

LAOO. S/he fills out the FAAS, computes the appraised value of the property, and initials the FAAS.

3 Assigning of new Assessment Record Property Number (ARPN). The Records Division assigns the new ARPN and cancels the previous ARPN.

4 Review and approval of FAAS. This is done by the LAOO who assesses and appraises the property.

5 Preparation of the TD. In some cities, which are not yet computerized, the usual activity is the transcription of tax declaration. But in some cities

like Surigao and Butuan City, the processing is done using the Real Property Tax Assessment and Collection System (RTACS) and RPTIS, respectively.

6 Review of the TD. The assistant city assessor reviews the TD and forwards this to the city assessor for approval.

7 Approval of TD. In most cities, the city assessor approves the TD. In Surigao City, the assistant city assessor and LAOO IV can approve the TD

by virtue of authority given by the city assessor in his absence. After signing the TD, the secretary of the city assessor forwards the approved TD and NOA to the records management personnel for release.

8 Release of owner’s copy of TD and NOA. The assessment clerk or the records management personnel releases the approved owner’s copy of

the TD and the NOA to the property owner or representative. The property owner or representative signs the logbook and in the duplicate copy of NOA. In Tacurong city, the officer-of-the-day releases the owner’s copy of the TD. This process is completed in only 5 minutes.

Issuance of Tax Declaration for Transfer of Ownership


58

9 Recording of TD in Assessor’s files.

10 Updating of the CTO records through the Journal of Assessments and Cancellation.

59

Issuance of Certified True Copy of Tax Declaration/Documents

ISSUANCE OF CERTIFIED TRUE COPY

OF TAX DECLARATION/DOCUMENTS9Issuance of a certified true copy of a TD or document file is a regular transaction in the CAssO. This is done every time a customer requests a true copy.

The objective of this service is to provide legal documents as required by concerned agencies/departments (such as BIR, ROD, DAR, government and private banks, Home Development Mutual Fund, Government Service Insurance System, courts etc.) and to provide updated, accurate, and authentic records to customers.

Legal BasisLocal Government Code (RA 7160)•DOF appraisal and assessment •regulations

ClientsDeclared real property owners, taxpayers, banks, government agencies like the BIR, DAR or CPDO, customers other than the property owners, such as an administrator and/or representative, and the public.

Interview of property owner and evaluation of documents

Research/preparation of certified true copies of TD/

Document Files

Review and signing/approval of true copy of TD/

Document Files

Release of certified documents

Process Flow*



60


CAssO•ARMD•Tax mapping and appraisal divisions•EDP•

Service StandardThe main standard is processing time, defined as the number of minutes or hours it takes to issue a Certified True copy of TD or Document Files, measured from the time the customer files an application up to the time he receives the document. Processing time ranges from 20 minutes to two hours and 35 minutes.



OR as proof of payment for Certified True Copy of TD/document •FilesRequest form duly filled out by customer•TCT or document showing the lot number and authority from owner •if the requesting party does not own the propertyOther related documents available from the requesting party •

SignatoriesThe signatory is the city assessor or his designated signatory.

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Process Flow

1 Interview of property owner and evaluation of documents. The assessment clerk or the officer-of-the-day receives and evaluates the

application for completeness and forwards this to the LAOO. In Butuan city, the chief of the ARMD accepts the application and performs the activity.

2 Research/preparation of certified true copies of TD/Document Files. In cities that are not using information systems, the ARMD

does the research manually and prepares the Certified True Copies of the TD and other documents. In cities that use ICT, the data processor uses the information system to print a Certified True Copy of TDs. At the same time, an assessment clerk verifies, retrieves and photocopies the document files.

3 Review and signing/approval of true copy of TD/Document Files. The LAOO II-Records Officer reviews the printed true copy of

TD against the copy kept in the assessor’s records. He sees to it that all information is correct, annotates on the face of the TD, and then signs it. He then forwards the TD to the officer-of-the-day for release. In most cities, the city assessor approves the certified true copy of TD/Document Files. In Butuan City, the chief of ARMD checks and initials the true copy/machine copy of the TDs while the assistant city assessor for operations or authorized LAOO IV signs and approves it.

4 Release of certified documents. upon receipt of the duly signed Certified True Copy of TD/Document Files, the officer-of-the-day

records the TD number, name of declared owner, and OR number on the logbook, has the customer sign the logbook, and releases the copy.

Issuance of Certified True Copy of Tax Declaration/Documents


62

HISTORY TRACE10As mandated under Republic Act No. 7160 and the DOF’s assessment regulations, all real property (taxable or exempt) is to be declared and included in the Assessment Roll. This makes it possible to trace the history of any property, including its previous owners, whether it was part of a bigger property or consolidated from smaller properties, its assessment/valuation from previous years to date, and other related information.

This is important to buyers. A property trace will allow them to find out the following specific information about the land they intend to buy:

Actual series of transactions•Series of cancellations of TDs and their •respective areaSeries of ownership, in case of numerous •transfersRespective boundaries and other data •during consolidation or subdivision of landRespective valuation during every revision •periodEffective date of transactions•Other relevant data•

Filing of the Request Form

Current property information

Preparation of history of real property

Approval of the trace results

Release of document

Process Flow*


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History Trace

Legal BasisLocal Government Code (RA 7160)•Appraisal and assessment regulations and other issuances of the DOF•

ClientsProperty owners, administrators and other interested parties, provided the latter have been duly authorized by the legal property owner


Surveys and Tax Mapping, Appraisal and Records divisions•EDP section•SP•CAssO•

Service StandardsThe standards are: (1) Quality, in terms of accuracy of trace, which shall be at least 90 percent, (2) Quantity, in terms of trace of records of all TDs since the first set of TDs within the local government, and (3) Response time, defined as the time it takes to complete the service, from filing of an application to issuance of the property trace. The process ranges from 15 minutes to one day.



updated tax maps•TMCR•FAAS•Original TD on file in the Office•Document supporting ownership of the interested party•Other relevant documents that will allow successful service delivery•


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SignatoriesThe signatories are:

Chief of the records division •City assessor •

Process Flow

1 Filing of the request form. The receiving clerk or officer-of-the-day receives the request form with routing slip and OR for the secretary’s

fee. An interview is usually conducted to determine the best way to search for the property.

2 Current property information. Current information about the property is gathered by the Tax Mapping Division from the section

maps. This information includes the current PIN, name of owner, and other details. From the latest entry on the TMCR, the superseded TD is identified, which leads to the previous TD.

3 Preparation of history of real property. The previous TD is located manually, and its own superseding TD is also identified. The process

continues until the last known TD is found. A formal certification or property trace is printed accordingly.

4 Approval of the trace results. The city assessor ensures that the trace is done in a manner consistent with assessment regulations issued by

the secretary of finance, and then approves the report.

5 Release of document. The officer-of-the-day or clerk releases the documents to the client and asks him to sign the office logbook.

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Reclassification of Real Property

RECLASSIFICATION OF REAL PROPERTY11According to the participating cities, reclassification is the process of determining the actual use of real properties in order to effectively and accurately apply the correct amount of taxes based on updated records. It is initiated either by the CAssO or by request of the owners.

Legal BasisLocal Government Code (RA 7160)•Certification from DAR•Certification from DENR•Certification from the city zoning •ordinance

ClientsMain clients are real property owners, administrators and their representatives

Service ProvidersThe main ser v ice provider i s the CAssO. The following offices require clearances:

CTO•CPDO •DAR•DENR•

Interview of the applicant


Preparation, computation of FAAS and TD

Assigning of new ARPN

Review of the TD

Approval of FAAS and TD

Issuance of TD



Process Flow*



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Service StandardsThe most important service standard is the time it takes to finish the activity, measured from the time a request is made by the real property owner to the issuance of the new TD. The process of completion ranges from 30 minutes to one day.



DAR clearance for agricultural land•SP resolution for each specific reclassification or approved •Comprehensive Land use PlanLetter-request from the real property owner•Real property tax clearance•Processing fee•Land conversion certificate from Housing and Land use Regulatory •Board (HLuRB) or zoning (as needed)


Personnel in-charge•Assistant city assessor •City assessor •

Process Flow

1 Interview of the applicant. The assessor conducts the interview upon receiving the request for reclassification.

2 Conduct of inspection. Pertinent documents are evaluated. The tax mapper then validates the request for reclassification by conducting an

inspection.

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3 Preparation, computation of FAAS and TD. The cities assign the PIN during the preparation of the FAAS.

4 Assigning of new ARPN. The records division assigns the new ARPN and cancels the previous ARPN.

5 Review of the TD. The assistant city assessor or the head of the appraisal division reviews the FAAS and TD prior to the approval of the

Assessor.

6 Approval of FAAS and TD. The city assessor approves the FAAS and TD.

7 Issuance of TD. The Notice of Assessment is prepared after the approval of the TD. The approved TD and the NOA are issued to the

applicant.



Reclassification of Real Property


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ANNOTATION/CANCELLATION OF

ENCUMBRANCE ON TAX DECLARATIONS12When land properties are involved in business transactions, encumbrances may be annotated on the TCT. These business transactions might be used to support loans or bail bonds. The annotations may also indicate that the property is already freed of any encumbrances from lending institutions or from the courts. These encumbrances and annotations must be reflected on the TD because they provide significant information about transferability of ownership of the property.

Legal BasisLocal Government Code (RA 7160)•Appraisal and assessment regulations •from the DOF

ClientsReal property owners and their administrators or representatives, banks, BIR, and the DAR.


CAs sO• Records Management Section•Tax Mapping Section•Appraisal and Administrative divisions•CTO•EDP •

Filing of request Form

Interview of customers/applicants

Research

Annotation/cancellation of encumbrances on TDs

Approval of annotation/cancellation of encumbrance

Issuance of annotated documents

Process Flow*


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Annotation/Cancellation of Tax Encumbrance on Tax Declarations

Service StandardsThe standards are: (1) Quality, defined as accuracy in the TD data, which should be 100 percent. (2) Response time to annotate or cancel encumbrances. This period is measured from the time the customer files a written request up to the time he receives a copy of TD fully annotated or cancelled of encumbrances. The process ranges from five minutes to one hour and 50 minutes. (3) Customer satisfaction, is defined as promptly addressing the needs of the customers.



TD•Real Estate Mortgage (REM) Contract•OR for proof of payment•Copy of the TCT showing the annotation made by the ROD•Court Order•Notice/certificate/release of cancellation of mortgage from the ROD •and lending institutionsCancellation of bail bonds •


The employee who prepared the new FAAS and TD•The official who reviews the prepared FAAS and TD. This is usually •either the head of the assessment and appraisal division, or the assistant city assessor.The official who approves the FAAS and TD. This is the city assessor. •In some cases, the city assessor may deputize another official to sign in his/her behalf.


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Process Flow

1 Filing of request form. The applicant submits the form to the officer-of-the-day. The applicant pays fees and submits documents.

2 Interview of customers/applicants. upon presentation of the form, the person in charge reviews and evaluates documents presented and

receipts of required fees paid.

3 Research. While the applicants/customers are being interviewed and documents are evaluated, simultaneously research is made on the

property to ensure that all the data and documents are complete.

4 Annotation/cancellation of encumbrances on TDs. After finding all documents presented to be complete and in order, the personnel-in-

charge annotates/cancels encumbrances on the face of TDs and the Deed of Mortgage.

5 Approval of annotation/cancellation of encumbrance. After annotating/canceling on the face of the TD and deed of mortgage,

the personnel-in-charge forwards the reviewed documents to the City Assessor for approval, or in his absence to the assistant city assessor.

6 Issuance of annotated documents. After the annotation/cancellation of encumbrance has been approved, the officer-of-the-day releases

the documents to the applicant/customer.

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Billing and Collection

BILLING AND COLLECTION13A billing statement is usually sent to all real property owners. The City Treasurer’s Office sends the notices to remind real property owners of their unpaid taxes, including surcharges and interests.

Legal BasisLocal Government Code (RA 7160)•DOF-BLGF issuances and guidelines•

ClientsDeclared real property owners, administrators and interested tax payers


CTO•CAssO•

Service StandardsAccuracy in collection is the most important standard. They also consider the time that it takes to deliver the service as another standard. The process ranges from 10 minutes to one hour and 15 minutes.


Payment

Preparation of tax bill

Process Flow*



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Latest TD •OR as proof of payment •Notice of Assessment of Real Property (NARP)•Real Property Tax Order of Payment (RPTOP)•

SignatoriesThe signatory is the CTO.

Process Flow

1 Preparation of tax bill. The revenue clerk of the city treasurer’s office gives the taxpayer a computer-generated billing statement.

2 Payment. After receiving a copy of the tax bill, the owner, administrator or agent goes to the revenue collector of the CTO Land

Tax Division for issuance of an OR. The cashier in same office receives the correct amount and validates the OR, which is given back to the taxpayer.

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Variations and Good Practices in RPTA

VARIATIONS AND GOOD PRACTICES IN RPTA

A. Issuance of Tax Declaration for New Buildings

Division Heads as frontliners.• In Butuan, the receiving person is the assessment division chief. He is in charge of checking the supporting documents, approving requests, and scheduling field inspections.

Information or Help Desk.• Officers-of-the-day are assigned in Roxas and Iriga to guide property owners in securing requirements and following the process flow.

Conduct of inspection.• In conducting this activity, Surigao city’s tax mapper pastes the building sticker on the structure after measuring the area and assessing construction materials of the building.

B. Subdivision and/or Consolidation of Properties

Conduct of inspection.• This is done to verify information, to determine the location of the buildings and the condition of the land.

Use of ICT.• Iriga’s EDP Division uses its computers to generate new TDs using information provided by the Assessor’s office while other cities prepare the TD manually. Butuan city uses a Geographic Information System (GIS) to maintain not only its TD records, but also section maps.

C. Issuance of Tax Declaration for New Discovery (Land)

Payment of Overdue Taxes. • To obtain a new TD, the applicant must pay the city overdue taxes (10 years back). This is required in a NOA.

D. Issuance of Tax Declaration for New Machinery

Increased customer satisfaction.• The cities do their best to be courteous, prompt, and accurate. They provide reading materials, but only Butuan city offers free coffee, candies, and television viewing at


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its customers’ waiting lounge.

E. Issuance of Certificate of Improvements/No Improvements and Land holdings/No Land holdings

Use of ICT.• In Iriga city, the officer-of-the-day asks the EDP personnel to make the search, instead of having clerks search through paper files.

F. Issuance of Tax Declaration for Transfer of Ownership

Preparation of FTDS/FAAS.• In Butuan, the assessment division prepares the FAAS, assigns the TD number, and forwards FAAS to the tax mapping division for verification in the tax maps. The tax mapping division assigns the PIN and reflects the owner’s name on the TMCR. The tax mapping division personnel forwards the paper to the RPTIS encoder for encoding of the TD. The RPTIS encoder prints the TD and returns all papers to the assessment division for approval.

In Roxas city, the LAOO evaluates the application, cancels the •existing TD, and prepares FAAS and new TDs with the new owner’s name. In Tacurong city, the personnel in charge computes the FAAS, and prepares the NOA with the new owner’s name. The recordsmanagement section numbers the new FAAS and NOA and recommends for approval.

Approval of TD.• In Butuan city, the customer signs the TD before the assessment division personnel signs it. The tax mapping division personnel initials it, and then the city assessor, assistant city assessor or authorized LAOO IV signs for approval.

Release of TD.• In Tacurong City, the CAssO issues a Certified True Copy of TD to the owner.

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G. Issuance of Certified True Copy of Tax Declaration/Documents

Use of ICT.• Preparation of the Certified True Copy of TD is undertaken by the data processor using the RTAC System.

Designation of Signatory. • In Surigao city, by virtue of the authority given by the city assessor, it is the LAOO II-records officer who reviews and signs these and gives them to the officer-of-the-day for release.

Recording of TD Releases.• Only Surigao city maintains a logbook to record the name of the declared owner, OR number, and the amount paid. The customer signs the logbook before the copy of the TD is released.

H. History Trace

Use of ICT.• In Iriga, use of an RPTIS enables them to trace the history of properties faster and more efficiently.

I. Reclassification of Real Property

Use of ICT• . Butuan, Iriga and Surigao cities simplify the process of preparing new FAASs with the use of ICT.

J. Annotation/Cancellation of Tax Encumbrance on Tax Declarations

Use of ICT.• In Iriga city, the EDP personnel conduct the research. In other cities like Tacurong, research may be done by any employee under the records management section who is IT literate.

K. Billing and Collection

A unique practice is seen in Butuan city. The city allows the taxpayer •to view the assessment from the computer of the CAssO, which is connected on-line (via Local Area Network) to the CTO. The taxpayer is given a computer-generated tax bill on delinquent real properties.

Variations and Good Practices in RPTA


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RECOMMENDATIONS TO MEET SERVICE STANDARDS

To meet the standards for this service, the TWG recommends the following practices and procedures:

A. Issuance of Tax Declaration for New Buildings

To simplify, activities should be clustered as follows:1.

Conduct of inspection. • For newly discovered or declared buildings, one of the provisions prior to appraisal and assessment is an actual measurement and inspection of the materials used as a basis for assessment. All activities in line with inspections should be grouped in this step.

Appraisal and assessment.• This will be done manually by preparing the FAAS. But the reproduction of the TD and NOA can either be typewritten or computer generated. The response time differs in two situations: if typewritten, the process will be longer compared with the computer generated one.

Use of ICT.2. Appropriate use of an automated system to enhance the service should be explored. Cities can learn from the experience of Butuan and Iriga, and use them as benchmarks for their own computerization program.

B. Subdivision and/or Consolidation of Properties

Posting of Requirements in a conspicuous place.1. Attach the list of requirements on the application form so applicants can tick off the items as they acquire them.

Use of GIS.2. The use of GIS will reduce processing time by cutting down time needed to find the section map where the affected parcels are located, to make the necessary revision, to pick the PIN to be retired, and to for-mulate a new PIN.

Designation of signatory.3. To reduce waiting time, the city assessor may deputize signing of the TD to his subordinates in his absence.

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Recommendations to meet Service Standards in RPTA

C. Issuance of Tax Declaration for New Discovery (Land)

Conduct of inspection1. to validate the existence of the land property and to determine how it can be reflected on the Lot Parcels Map, and

Use of GIS2. to maintain the Lot Parcels Map.

D. Issuance of Tax Declaration for New Machinery

Look into other processes related to installation of new machinery1. , such as approval by the office of the building official.

Look at the implementation of the requirement for the office of the building 2. official to inform the city assessor every month.

E. Issuance of Certificate of Improvements/No Improvements and Land holdings/No Land holdings

Automation of records management,1. for faster and more accurate searches of records.

Delegation of authority2. to sign the certification so that the applicant will no longer wait for the city assessor himself to sign the document.

F. Issuance of Tax Declaration for Change in Ownership

Using a logbook to log transactions. 1. A logbook must be maintained to indicate what is being requested and who acted on the request to facilitate verification of its status. A routing slip is also recommended so that management and customers know how long it takes to finish an activity. Transparency and accountability are very important in this step.

Preparation of FCTDs/FAAS, assigning of PIN and processing of TD.2. The office should establish a standard process flow of transactions to avoid loops or backtracking.

Approval. 3. To avoid delays, there should be a standard regarding who should sign the TD. The owner’s signature is not necessary. Signatures of the administering LAOO and the approving officer are required.


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Use of ICT. 4. Appropriate use of an automated system to enhance the service should be explored. Cities can learn from the experience of Butuan, Iriga, and other cities and use them as benchmarks for their own computerization program.

G. Issuance of Certified True Copy of Tax Declaration/Documents

Use of ICT. 1. Research/preparation of Certified True copies of TD/ Document Files. In a city where ICT is already used, there is fast and easy access to data. Printed true copies of the TD can also be facilitated.

Review and approval of the Certified True Copy of TD/Document Files. 2. Review and signature or approval is done not only by the city assessor or by any division head, but also by anyone who has been duly authorized.

Using a logbook to log transactions. 3. A logbook must be maintained so that the office will have control over the issuance of documents it generates every day and the regulatory fees charged by the local government.

Automation. 4. Appropriate use of an automated system to enhance the service should be explored.

H. History Trace

Use of ICT. 1. undertake a buildup of the database of real properties as an initial step for automation. This database will serve as the foundation on which several modules or applications can be built. The first of these modules can be the property trace.

Review the quality of TMCRs and other records, 2. especially documents that contain information about superseded TDs, as preparation for database build-up.

I. Reclassification of Real Property

Field inspection. 1. This allows the assessor’s office personnel to ascertain actual land use.

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J. Annotation/Cancellation of Tax Encumbrance on Tax Declarations

Do away with requiring a letter-request. 1. Simply ask participants to fill out an application form which contains the list of required supporting papers.

Conduct interview 2. at the same time as reviewing the submitted supporting papers.

If processing time can be brought down to within an hour, 3. provide a lounge where applicants can relax while waiting.

K. Billing and Collection

Print and deliver the tax bills 1. instead of waiting for the property owner to ask for them. Explore the possibility of engaging barangay councils to help distribute these bills.

Make it easy and convenient for property owners to pay their taxes. 2. Provide a comfortable venue, seats, a number counter and paging system, among others.

Recommendations to meet Service Standards in RPTA

Notes

Notes


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