FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. _ 3854

EXPLANATORY NOTE

Agrarian Reform has affected the rights of countless landowners whose lands
were taken some thirty-eight (38) years ago with the advent of Presidential Decree 27

After the lapse of the 15 year payment period provided by PD 27, countless
original landowners and their descendants still await full payment of just compensation
The years passed brought about many changes and amendments in the laws and
orders relative to land valuation and payment procedures which have affected and
made it more difficult to collect the just compensation due the landowners.

The payment of just compensation has also been delayed because of
administrative matters, documentation requirements as well as valuation issues that
plague the government agencies involved.

To make matters worse for these landowners, the payments as just
compensation that they are to receive are still charged estate taxes, which at times
exceed the amount of compensation offered for their properties. Many of these
landowners already pass away without receiving just compensation leaving their
descendants the tasks of awaiting payment only to discover that they still have to pay
estate taxes.

While the transfer of agricultural property taken by the government for land
reform purposes is already exempted from the payment of capital gains taxes, there is
likewise a compelling necessity to exempt the same form estate taxes should the
original landowner die without being paid just compensation.

In view of the foregoing, approval of this bill is earnestly sought.

&

Miz
RUFY¥S B. RODRIGUEZ

Wee

MAXIMO B. RODRIGUEZ, JR.

Aleution
Dis Nestor Phrarda


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

HOUSE OF REPRESENTATIVES.

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. __ 3854

AN ACT
EXEMPTING FROM THE PAYMENT OF ESTATE TAXES, AGRICULTURAL LANDS
TAKEN UNDER PRESIDENTIAL DECREE NO. 27, DECREEING THE EMANCIPATION OF
TENANTS FROM THE BONDAGE OF THE SOIL, TRANSFERRING TO THEM THE OWNERSHIP OF
THE LAND THEY TILL AND PROVIDING THE INSTRUMENTS AND MECHANISM THEREFOR;
EXECUTIVE ORDER NO. 228, DECLARING FULL LAND OWNERSHIP TO QUALIFIED
FARMER BENEFICIARIES COVERED BY PRESIDENTIAL DECREE NO. 27: DETERMINING THE
VALUE OF REMAINING UNVALUED RICE AND CORN LANDS SUBJECT TO P.D. NO. 27, AND
PROVIDING FOR THE MANNER OF PAYMENT BY THE FARMER BENEFICIARY AND MODE OF
COMPENSATION TO THE LANDOWNER; EXECUTIVE ORDER NO. 229, PROVIDING THE
MECHANISMS FOR THE IMPLEMENTATION OF THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM; REPUBLIC ACT NO. 6657, COMPREHENSIVE AGRARIAN REFORM LAW OF
1988, AS AMENDED; REPUBLIC ACT NO. 9700, AN ACT STRENGTHENING THE
COMPREHENSIVE AGRARIAN REFORM PROGRAM (CARP), EXTENDING THE ACQUISITION AND
DISTRIBUTION OF ALL AGRICULTURAL LANDS, INSTITUTING NECESSARY REFORMS,
AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 6687,
OTHERWISE KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AS
AMENDED, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. All agricultural lands taken from private persons under PD 27, £0228,
£0229, RA 6557 and RA9700 shall be exempt from the payment of estate taxes:
Provided, that the original landowner whose land was taken by the government die prior
to the full payment by the government of just compensation.

SECTION 2. Repealing Clause — All laws, decrees, orders, resolutions, instructions
and rules and regulations or parts thereof, which are inconsistent with this Act, are
hereby deemed repealed or modified accordingly.

SECTION 3. Effectivity Clause — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved.