Amilyar (Real Property Tax)

What is Amilyar?

Amilyar (from Spanish "amillaramiento," meaning assessment roll) is the Filipino term for Real Property Tax (RPT), a mandatory annual tax imposed on real property located within a local government unit's (LGU) jurisdiction. It is levied on the assessed value of land, buildings, machinery, and other permanent improvements to real property (Local Government Code of 1991, RA 7160, §226).

Legal Basis and Authority

The amilyar is governed by the Local Government Code of 1991 (RA 7160), specifically §226, which grants cities and municipalities the power to impose RPT on real property within their territorial jurisdiction. The Bureau of Local Government Finance (BLGF) under the Department of Finance provides guidelines and standards for assessment and collection. The National Assessment Board (NAB) oversees the valuation methodology and ensures uniformity across LGUs.

Who Pays Amilyar?

Any person or entity owning real property—whether natural persons, corporations, partnerships, or government entities (except those exempt by law)—must pay amilyar. Ownership is determined by the Certificate of Title, Tax Declaration, or other evidence of ownership recognized by the LGU. Co-owners are jointly and severally liable for the tax (RA 7160, §226).

Tax Rate and Computation

The amilyar rate is set by each LGU's Sanggunian (legislative body) but cannot exceed 2% of the assessed value of the real property (RA 7160, §226). The assessed value is determined by the LGU Assessor using the National Assessment Board's valuation standards, which consider market value, location, condition, and comparable sales. The formula is: Amilyar = Assessed Value × Tax Rate (not to exceed 2%).

Example: A residential lot in Metro Manila with an assessed value of ₱2,000,000 and a municipal tax rate of 1.5% would owe ₱30,000 in annual amilyar (₱2,000,000 × 1.5% = ₱30,000).

Assessment and Tax Declaration

Real property must be declared with the LGU Assessor's Office within 60 days of acquisition or improvement. The Assessor issues a Tax Declaration (TD), which serves as the basis for amilyar assessment. Property owners must update their declarations whenever the property is transferred, subdivided, or improved. The Assessor reassesses property every three years or when significant changes occur (RA 7160, §203).

Payment and Due Dates

Amilyar is payable annually, typically in two installments: the first half due by June 30 and the second half due by December 31 of each year. However, LGUs may allow full-year payment by the first due date. Payment is made to the LGU Treasurer's Office. Failure to pay results in penalties and interest charges (RA 7160, §226).

Exemptions

Certain properties are exempt from amilyar, including: (1) real property owned by the national government, provincial government, city or municipal government, or barangay; (2) charitable institutions, educational institutions, and religious organizations, provided the property is used for charitable, educational, or religious purposes and not for profit; (3) cultural properties declared as National Cultural Treasures; and (4) properties used for socialized housing projects (RA 7160, §234).

Penalties and Enforcement

Unpaid amilyar accrues a surcharge of 25% of the unpaid tax plus interest at 12% per annum (RA 7160, §226). The LGU may enforce collection through administrative remedies (demand letter, notice of delinquency) or judicial action. Delinquent real property may be sold at public auction to satisfy the tax debt (RA 7160, §258).

Role in Local Government Finance

Amilyar is one of the largest sources of internal revenue for LGUs, funding local services such as education, health, infrastructure, and public safety. The revenue generated supports the LGU's annual budget and development programs. Collection efficiency directly impacts the LGU's fiscal capacity and service delivery (BLGF Guidelines on RPT Administration).