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PROPERTY TAX DISTRIBUTIONAL & COMPLIANCE IMPACT STUDY COMPONENT 4.1 B


P RESENTATION O UTLINE 1. Objectives of the study

2. Scope of the study 3. Methodology

4. Data requirements 5. Use of the study


O BJECTIVES  

OF THE

S TUDY

To assess compliance in the payment of property taxes To recommend measures to improve property tax compliance To introduce greater equity in the distribution of the tax burden among taxpayers


S COPE 

OF THE

S TUDY

Examine compliance in the payment of property taxes covering the most recent completed tax year


M ETHODOLOGY 

TAX GAP APPROACH

Compliance rate = Actual Collection Potential Tax where

x 100

Actual Collection = Current year’s collection Potential Tax = Tax Collectible = Total Assessed Value x Tax Rate


M ETHODOLODY   

Cleaning and Matching of Assessment and Collection Reports for each RPU (or sample RPUs) Data Processing Data Analysis


M ETHODOLOGY The study involves the following: 1. Review of local legislation 2. Analysis of overall LGU performance in RPT collection 3. Establishing appropriate strata of property values 4. Analysis of tax delinquencies 5. Analysis of tax discounts 6. Formulate recommendations to improve tax compliance


data requirements PROPERTY TAX COMPLIANCE & DISTRIBUTIONAL IMPACT STUDY


D ATA R EQUIREMENTS ASSESSOR’S OFFICE

1. Property Assessment Roll (complete, updated, computerized)

2. Summary of Real Property Assessments


D ATA R EQUIREMENTS TREASURER’S OFFICE

1. Daily report of basic RPT & SEF collection (complete, computerized)

2. Statement of Revenue/Income & Expenditures 3. Breakdown of Collection from Basic RPT & SEF 4. List of Properties Enjoying RPT Incentives/ Exemptions 5. Collection from delinquent taxes & amount of discounts


THE DATA: COMPUTERIZED ASSESSMENT ROLL ROLL TDN

PIN

Owner

Brgy

EXAMPLE

Class (subclass)

Typ e

Tax abili ty (T/E)

Area (in SqM)

Unit Value

Marke t Value

Asses Asse sed ssm Value ent Leve l

Tax Rate

Est. Tax Due

Del Rosario

Sia, Ramon

2001-11-

0473-1


THE DATA: DAILY RPT RECORD Date

Nam e

OR #

Brgy

Class

Basic RPT

Prior Yr/s

Penalties Curr ent Yr

Prior Yr/s

1,500

Prior Yr/s

Disc

0

Curr ent Yr

Curr ent Yr

(3,900)

Penalties

39,000

(4,875)

Prior Yr/s

2,000

Disc

SEF Tax

0

Cur ren t Yr

48,750

Tax Dec #

Total Net Coll.

EXAMPLE 91,475

4,000

5,000

Commercial

Del Rosario

123456

2001-11-0473-1

Sia, Ramon

01/13/2009


DATA CLEANING: ASSESSMENT ROLL 1. Determine the assessment year or the effectivity year of the Assessment Roll 2. Check for duplicated entries, and make sure there is only a single (unique) entry 3. Check whether all important fields are filled, e.g., TDN, land area, property sub-class, market values, assessed value, etc.


DATA CLEANING: ASSESSMENT ROLL

DATA CLEANING: ASSESSMENT ROLL 4. Ensure that the text format of the Tax Declaration Number (TDN) is similar for all entries -> establishes the link between the assessor and treasurers’ data 5. Take note of properties with 0% assessment, e.g., residential buildings with MV of 175,000 and below; AND those that are tax-exempt, e.g., “government properties”


DATA CLEANING: DAILY RPT RECORD

DATA CLEANING: DAILY RPT RECORD 1. Make one entry for all real property units (RPUs) paid on installment basis -> get the total payment 2. Ensure that the text format of the Tax Declaration Number (TDN) is similar for all entries -> establishes the link between the assessor and treasurers’ data


D ATA P ROCESSING SUMMARY TABLES

1. 2. 3. 4. 5.

RPT Compliance by Property Stratum: 2008 RPT Compliance by Property Classification: 2008 RPT Compliance by Barangay: 2008 Dist. of the RPT Collection by Property Stratum: 2008 Dist. of the RPT Collection by Property Classification: 2008 6. Dist. of the RPT Collection by Barangay: 2008


D ATA P ROCESSING SUMMARY TABLES Advance and Prompt Payments by Property Stratum: 2008 8. Advance & Prompt Payments by Property Classification: 2008 9. Advance & Prompt Payments by Barangay: 2008 10. Tax Delinquencies by Property Stratum: 2008 11. Tax Delinquencies by Property Classification: 2008 12. Tax Delinquencies by Barangay: 2008 7.


D ATA A NALYSIS 1. Analysis of RPT Compliance Rate, By Property Classification

Residential

  

Commercial Industrial Agricultural


D ATA A NALYSIS 2. Analysis of RPT Compliance Rate by Property Stratum  Low-value Property  Medium-Value Property  High-Value Property 3. Analysis of RPT Compliance Rate by Barangay (or municipalities in case of province)


D ATA A NALYSIS 4. Analysis of Distribution of RPT Collection  By Property Classification  By Property Stratum  By Barangay (or municipalities in case of province) 5. Analysis of Tax Discounts, Tax Delinquencies 6. Analysis of Over-all LGU Performance in RPT Collection


uses of the study PROPERTY TAX COMPLIANCE & DISTRIBUTIONAL IMPACT STUDY


U SES

 Basis for estimating revenue impact

 Guide to local council members  Tool to determine the weaknesses of current tax enforcement processes & procedures


THANK YOU!

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DISTRIBUTIONAL IMPACT STUDY & C O M P O N E N T 4 . 1 B 4. Data requirements 2. Scope of the study 5. Use of the study 1. Objectives of...