M a n i l a

PRESIDENTIAL DECREE No. 261 August 2, 1973


WHEREAS, Presidential Decree No. 76 classifies real property for purposes of the real property tax into commercial, industrial, mineral, agricultural and residential;

WHEREAS, there are other kinds of real property, such as educational, cultural, scientific, recreational, and so forth, which by their nature and use, do not fall squarely under any of the above-mentioned classifications; and

WHEREAS, the latter should be considered as special classes with corresponding assessment levels.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby decree an other that:

1. All land, buildings and other improvements thereon actually, directly and exclusively used by the owners thereof for educational, cultural or scientific purposes shall be classified as such and subject to the payment of the basic real property tax. Such properties shall be exempt from the payment of the additional one per centum tax under Republic Act No. 5447; Provided, however, That such properties located within Metropolitan Manila shall be subject to the additional real property tax of one-eight of one per centum, of the assessed value, the proceeds of which shall accrue to the Greater Manila Metropolitan Area Flood Control and Drainage Fund Account created under Presidential Decree No. 18.

2. The assessed valuation of the properties referred to in paragraph one hereof, which shall be the basis for the payment of real property tax beginning with the calendar year 1974, shall be fifteen per centum of their current and fair market value as determined by the assessor:

3. Education Foundations organized under Republic Act No. 6055, shall be exempt from the payment of the taxes mentioned in paragraph one hereof.

4. The classification "educational" shall apply only to educational institutions offering courses duly authorized and/or recognized by the government.

5. Land, building and other improvement thereon actually, directly and exclusively used by the owner thereof purely for recreational purposes and not for business or in connection therewith shall be considered also as special class with an assessment level of thirty per centum and subject to the payment of the basic and the additional real property taxes under Republic Act No. 5447 and Presidential Decree No. 18.

6. Subsequent general revisions of assessments of these special classes of real property shall be governed by Presidential Decree No. 76.

7. This Decree shall form part of the laws of the land and shall take effect immediately. All laws, orders, rules and regulations which are inconsistent within this Decree are hereby repealed or modified accordingly.

Done in the City of Manila, this 2nd day of August, in the year of Our Lord, nineteen hundred and seventy-three.

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