Below is a comprehensive discussion on how to determine the assessed value of property in Mandaluyong City, Philippines. This article covers the legal framework, the local process, important definitions, and practical tips to guide property owners and prospective buyers. Please note that the information presented here is for general educational purposes and does not constitute legal advice.

1. Overview of Real Property Taxation in the Philippines

1.1 Legal Basis

Local Government Code of 1991 (Republic Act No. 7160)
- Governs the assessment and collection of real property taxes nationwide.
- Mandates that each local government unit (LGU) adopts its own Schedule of Fair Market Values (SFMV) and sets corresponding assessment levels.
Mandated Revisions of Valuations
- Under the Local Government Code, local assessors must undertake a general revision of property assessments every three (3) years.
- The City Assessor’s Office in Mandaluyong aligns its revision schedules with national directives and local ordinances.

1.2 Key Concepts

Market Value
- The probable price at which a property would sell under usual or normal conditions.
- Determined by market data—current sales, neighborhood conditions, and other tangible indicators of property value.
Assessment Level
- The percentage applied to the fair market value to arrive at the assessed value.
- Varies by classification and use of property (residential, commercial, industrial, agricultural, etc.).
Assessed Value
- The taxable value of the property after applying the assessment level to the fair market value.
- Forms the basis for computing real property tax.

2. Mandaluyong’s Legal Framework and Structure

2.1 City Ordinances

City Government Authority: Mandaluyong City Government enacts local ordinances that prescribe the specific assessment levels, classification of properties, and the local SFMV.
Schedule of Fair Market Values (SFMV): Prepared and updated by the City Assessor’s Office and approved by the Sangguniang Panlungsod (City Council).

2.2 City Assessor’s Office

Role:
- Conducts the appraisal and assessment of real properties, including newly declared or newly constructed structures.
- Issues Notices of Assessment and Tax Declarations, which indicate the property's classification, fair market value, assessment level, and assessed value.
Responsibilities:
1. Identify Property: Physical inspection, verification of documents, and record matching.
2. Classify Property: Classifies the property as residential, commercial, industrial, etc.
3. Determine Market Value: Uses the city’s SFMV as a baseline, with adjustments for property-specific features (e.g., lot area, improvements, depreciation, neighborhood value).
4. Apply Assessment Level: Depending on classification and property use, the City Assessor applies the corresponding assessment level set by ordinance.
5. Issue Tax Declaration: Contains details of the property’s identification, classification, area, and final assessed value.

3. Determining the Assessed Value

Below is the general formula used to obtain the assessed value:

Assessed Value = Fair Market Value x Assessment Level

3.1 Fair Market Value

Reference: The Mandaluyong City Schedule of Fair Market Values.
Factors Affecting Fair Market Value:
1. Location: Prime areas or proximity to business centers typically attract higher market values.
2. Accessibility: Proximity to roads, transportation hubs, and public utilities.
3. Land/Building Characteristics: Lot area, shape, terrain, building materials, design, or age.
4. Zoning Regulations: Compliance with local zoning rules and land use plans.
5. Comparable Sales: Recent sales data in nearby areas.

3.2 Assessment Levels

Determined by Ordinance: Each property classification (e.g., residential, commercial, industrial) carries a unique assessment level, usually a percentage range.
Examples:
1. Residential properties might have an assessment level of 20% for certain market value brackets.
2. Commercial or industrial properties typically have higher assessment levels (e.g., 30% to 50%).

3.3 Property Classification

Residential: Includes single-family homes, townhouses, condominiums (for dwelling purposes).
Commercial: Properties used primarily for business (e.g., offices, retail establishments).
Industrial: Factories, warehouses, heavy manufacturing sites.
Agricultural: Farmland or areas used for agricultural production.
Special Classes: Cultural, scientific, or hospital sites may have special classifications and varying assessment levels.

4. The Process in Mandaluyong

4.1 Filing of Declaration of Real Property

Property Owner’s Obligation: When you acquire property in Mandaluyong (through purchase, inheritance, donation, etc.), you must declare it at the City Assessor’s Office within a prescribed period (generally 60 days from acquisition).
Required Documents:
- Original or certified true copy of the title or deed of sale
- Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), if applicable
- Latest Tax Declaration
- Notarized documents evidencing transfer
- Sketch plan or subdivision plan (if applicable)
- Any pertinent building/occupancy permits for structures

4.2 On-Site Inspection & Appraisal

Inspection: City Assessor’s personnel may conduct an ocular inspection to verify land area, building improvements, or other relevant details.
Valuation: Using the Mandaluyong SFMV as a guide, they assign a fair market value based on the property’s classification and current market conditions.

4.3 Issuance of Notice of Assessment

Provisional Assessment: Once valued, a Notice of Assessment is issued, indicating the preliminary fair market value, the applicable assessment level, and the proposed assessed value.
Disputes: If the property owner disagrees, they may raise concerns or clarifications, presenting evidence such as appraisal reports or market data to the City Assessor’s Office.
Final Assessment: After any protests or clarifications, the Assessor’s Office finalizes the assessed value and issues the updated Tax Declaration.

4.4 Receiving the Tax Declaration

Official Documentation: The new or updated Tax Declaration reflects the official assessed value.
Annual Real Property Tax: The City Treasurer’s Office uses this Tax Declaration to compute real property tax obligations.
Payment Cycle: Typically payable quarterly or annually with discounts for early payment, as allowed by local ordinances.

5. Possible Adjustments and Revisions

General Revision: As mandated by law, the city may conduct a general revision of assessments every three years.
Reclassification: If the use of the property changes (e.g., from residential to commercial), the city may reclassify it, resulting in a different assessment level.
Physical Improvements or Structural Changes: Building a new structure, extending floors, or renovating can trigger an assessment revision.
Appeals Process: Owners who believe their property is over-assessed may file an appeal with the Local Board of Assessment Appeals, escalating further to the Central Board of Assessment Appeals if needed.

6. Common Issues and Challenges

Under-declaration of Value
- Some owners intentionally or inadvertently declare a lower market value to reduce taxes. This is unlawful and can result in penalties or reassessment.
Delays in Transfer
- Failure to promptly update Tax Declarations following a property transfer can lead to confusion over liabilities and arrears in real property taxes.
Discrepancies in SFMV
- Properties in rapidly developing areas may appreciate faster than the LGU’s scheduled general revision. Owners may disagree with outdated valuations or new valuations they perceive as excessive.
Penalties for Late Payment
- Real property tax obligations must be settled by the deadlines set by the City Treasurer. Late payments incur surcharges and penalties.

7. Practical Tips

Check the Latest Schedule of Fair Market Values
- Obtain the official Mandaluyong City SFMV from the City Assessor’s Office or the Sangguniang Panlungsod.
- Keep track of updates, as valuations may shift if the city passes new ordinances.
Secure a Certified True Copy of Title
- Always keep up-to-date documents (title, tax declaration) for hassle-free transfers and assessments.
Document Improvements
- Whenever you make structural changes, file the necessary building permits and notify the City Assessor’s Office so your property records remain accurate.
Attend Public Hearings on New Ordinances
- Mandaluyong City Council typically holds public hearings before passing new ordinances that may affect assessment levels or the SFMV.
Keep Evidence of Market Conditions
- If you plan to appeal an assessment, gather evidence: recent sales of comparable properties, professional appraisal reports, or proof of structural defects that may reduce value.
Pay Real Property Tax on Time
- Avoid surcharges or potential administrative actions by settling taxes before deadlines. Many LGUs offer discounts for early payment.

8. Conclusion

Determining the assessed value of property in Mandaluyong City involves several steps—starting from accurate market valuation based on a local Schedule of Fair Market Values, applying the correct assessment level under local ordinances, and finalizing the Tax Declaration. It is a process overseen by the City Assessor’s Office, with legal mandates outlined primarily under the Local Government Code of 1991 and supplemented by local ordinances.

Property owners are encouraged to maintain up-to-date documentation, promptly declare any newly acquired or improved property, and stay informed about new local regulations. Should disputes or questions arise, legal remedies include filing a protest with the Assessor’s Office or appealing to the Local Board of Assessment Appeals. Observing these best practices ensures a transparent and fair assessment that accurately reflects the property’s value.

Disclaimer

This article is provided for general informational and educational purposes only and does not constitute legal or tax advice. For specific concerns or questions about your property in Mandaluyong, consult the City Assessor’s Office or seek professional legal counsel.