Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

4460

House Bill Ni

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

In the year, 1997, the landmark Agricultural and Fisheries Modernization Law (R.
‘A. 8435), known as the AFMA, was enacted

In order to promote productivity of agricultural lands, especially idle lands, the
AEMA then prescribed what is referred to as “idle land taxation”. Under Section 11 of
the AFMA, agricultural lands which lay idle and unproductive for a period exceeding one
(1) year shall be slapped an idle land tax of P3,000 per hectare.

More than a decade after its implementation, however, the amount of taxes
collected out of said idle lands remains insignificant, if not totally negligible. Thus, the
unproductive lands remain unproductive. The lingering issue about food security and
supplemental income for our suffering farmers and fisherfolks are still unaddressed

There are several reasons attributed to the said failure.

Foremost among these is the definition of “idle agricultural lands”, AFMA limits
it to "Irrigated Lands" which are merely those serviced by natural irrigation or irrigation
facilities. Thus, if there is no natural irrigation or irrigation facilities, such will not be
covered even if there is no other use for the said land except for agricultural purposes,

The other limitation is to area. The provision only covers those which are seven
(7) hectares or larger. It is of common knowledge that most agricultural lands are already
divided into small parcels and under separate titles. There are only a few lands, even
agricultural, which are of very large tracts.

Last, is that the land should be within the protected areas for agricultural
development, as identified under Sections 6 and 9 of the AFMA or the Strategic
Agriculture and Fisheries Development Zones (SAFDZ)

The second reason fro the failure is the form of the tax and the taxing authority
The idle land tax is not a from of “real property tax”, which the Local Government Units
(LGUs) collects, a big percent of which it gets back under its Internal Revenue Allotment
(IRA). Under the implementing rules of the AFMA, the LGUs were made as mere
collecting agents. The payment is for the Treasurer of the Philippines. Thus, there is not
much incentive for the LGU to collect the said tax.

The third reason is the amount of tax. The AFMA pegged the idle land tax at
3,000 per hectare. There is no provision for its increase through the passage of time.
Today, such paltry amount can no longer be considered as a penalty by big landowners


The last and very important reason for the failure is the implementation. The
AFMA under Section 8 mandates the mapping of all agricultural lands by the Bureau of
Soils and Water Management (BSWM), in coordination with the National Mapping and
Resource Information Authority (NAMRIA) and the Housing and Land Use Regulatory
Board (HLURB). To date however, a comprehensive and advanced mapping is still to be
done by the BSWM. Due to the lack of such mapping systems, there were several grants
of exemption, special reclassification, amnesty or other tax reprieves granted to
landowners.

Under this proposed measure, the definition of “idle agricultural lands” would be
expanded such that it shall no longer be limited only to irrigated lands. As long as there is
no other use for the said land except for agricultural purposes, it shall be covered. Also,
1 be decreased to one (1) hectare or larger. Thus, those big tracts of lands
to smaller parcels and under separate titles shall also be included, Also, the
limitation that the land should be within the protected areas for agricultural development
shall be removed. Public lands, government-owned properties, military reservations,
alienable and disposable lands shall be included. In such cases, the utilization of he land
shall be covered by short term lease contracts for farmers or fisherfolks residing in the
same Barangay as said lands.

Also, instead of an idle tax, the tax to be imposed shall be a real property tax
penalty of five times the amount due. With such, not only is the LGU empowered to
impose and collect, the amount of taxes shall be dependent on the value of the property.
However, the power of the LGU to grant exemption, special reclassification, amnesty or
other tax reprieves shall be removed.

Finally, under this proposed bill, the Land Registration Authority (LRA), the
NAMRIA, which we know to have already undertaken computerization o is equipped
with Geographic Information Systems, Global Positioning Systems, Remote Sensing or
similar digital mapping technologies, shall be tasked to share (and not just coordinate)
such systems or digital maps with the BSWM. This is the same with LGUs which als:
have the same technology. Thereafter, the said digital maps shall be provided to the LGU
for purposes of taxation of the idle lands.

With these proposed amendments, there would be more idle agricultural lands
which can be slapped with heavier penalties. Thus, the landowners, including the
government, would be left without recourse but to use their lands and make it productive.
The issues of additional income for our farmers and food sufficiency shall be attended to.
‘And, in the process, the LGUs would also have a means of increasing their IRA or
income.

In view of the foregoing, the immediate passage of the bill is earnestly sought.

ARTHUR C. YAP
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House Bill No._4460

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT

PROMOTING THE USE AND PRODUCTIVITY OF IDLE
AGRICULTURAL LANDS AND INCREASING THE REVENUES
OF LOCAL GOVERNMENTS THROUGH THE REVISION OF
THE RULES ON TAXATION ON IDLE LANDS, AMENDING FOR
‘THE PURPOSE SECTIONS 8 AND 11 OF THE AGRICULTURAL
AND FISHERIES MODERNIZATION ACT OF 1997, AND FOR
OTHER PURPOSES

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


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SECTION 1. Short Title. - This Act shall be known as the “Revised Rules on
Idle Land Taxation Act of 2013”

SECTION 2. Declaration of Policy. — It hereby declared the policy of the State
to promote the utilization and productivity of idle agricultural lands; increase incomes of
farmers; develop food sufficiency and security; and, provide for sources of additional
revenues for Local Government Units (LGU).

SECTION 3. Amendment of Section 8 of the Agricultural and Fisheries
Modernization Act. — Section 8 of Republic Act No, 8435 otherwise known as the
‘Agricultural and Fisheries Modernization Act of 1997, is hereby amended, to read as
follows:

SECTION 8. Mapping. — The Department, through the Bureau

of Soils and Water Management (BSWM), in coordination with the

National Mapping and Resource Information Authority (NAMRIA) and

the Housing and Land Use Regulatory Board (HLURB) shall undertake

the mapping of the network of areas for agricultural and agro-industrial

development for all municipalities, cities at an appropriate scale, [The

BSWM may call on other agencies to provide technical and other

logistical support in this undertaking.| FOR THIS PURPOSE, THE

LAND REGISTRATION AUTHORITY (LRA), THE NAMRIA

AND/OR THE PERTINENT LGU, WHICH HAS UNDERTAKEN

DIGITIZATION OR COMPUTERIZATION, OR IS EQUIPPED

WITH GEOGRAPHIC INFORMATION SYSTEMS, GLOBAL

POSITIONING SYSTEMS, REMOTE SENSING OR SIMILAR

DIGITAL MAPPING TECHNOLOGIES, SHALL BE TASKED TO

SHARE SUCH SYSTEMS OR DIGITAL MAPS WITH THE BSWM.

‘THE BSWM SHALL PROVIDE THE LGU A COPY OF THE

DIGITAL MAPS FOR PURPOSES OF TAXATION OF IDLE

LANDS AS PROVIDED UNDER SECTION 11 OF THIS ACT.


1 SECTION 3. Amendment of Section 11 of the Agricultural and Fisheries
2 Modernization Act. — Section 11 of Republic Act No. 8435 otherwise known as the

3 Agricultural and Fisheries Modernization Act of 1997, is hereby amended, to read as

4 follows:
5 "SECTION 11, Penalty for Agricultural Inactivity and Premature
6 Conversion, — Any person or juridical entity who knowingly or
7 deliberately causes any [irrigated agricultural] lands ONE (1) [seven
8 (7)] hectare[s} or larger, whether contiguous or not, [within the protected
9 areas for agricultural development, as specified under Section 6 in

10 relation to Section 9 of this Act,] to lie idle and unproductive for a period

ul exceeding one (1) year, unless due to force majeure, shall be subject to

12 a[n] PENALTY OF FIVE (5) TIMES THE AMOUNT OF ITS REAL
13 PROPERTY TAX [idle land tax of Three Thousand Pesos (P3,000.00)
14 per hectare per year]. In addition, the violator shall be required to put
15 back such lands to productive agricultural use. Should the continued
16 agricultural inactivity, unless due to force majeure, exceed a period of two
17 (2) years, the land shall be subject to escheat proceedings BY THE
18 MUNICIPAL OR CITY LOCAL GOVERNMENT UNIT WHERE IT
19 IS LOCATED,

20 FOR THIS PURPOSE, THE LGU SHALL HAVE NO RIGHT
21 OR POWER TO GRANT EXEMPTION, SPECIAL
22 RECLASSIFICATION, AMNESTY OR ANY OTHER REPRIEVE.
23 FOR THIS PURPOSE, IDLE OR UNPRODUCTIVE LANDS
24 SHALL REFER TO ALL LANDS, INCLUDING PRIVATE
25 INDIVIDUAL AND CORPORATE LANDS, AND LANDS
26 COVERED BY THE COMPREHENSIVE AGRARIAN REFORM
at PROGRAM) § (CARP), WHICH ARE UNITILIZED OR
28 UNDERUTILIZED FOR AGRICULTURAL, FISHERIES, AGRO-

29 INDUSTRIAL PRODUCTION OR ANY OTHER PURPOSE. IT


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SHALL LIKEWISE COVER PUBLIC LANDS, GOVERNMENT-
OWNED PROPERTIES, MILITARY —_ RESERVATIONS,
ALIENABLE AND DISPOSABLE LANDS, IN WHICH CASE, THE

UTILIZATION SHALL BE COVERED BY SHORT TERM LEASE

CONTRACTS FOR FARMERS OR FISHERFOLKS RESIDING IN

‘THE SAME BARANGAY AS SAID LANDS,

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SECTION 4, Implementing Rules and Regulations, — Within sixty (60) days
after the affectivity of this Act, the Secretary of Agriculture shall, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate the
necessary rules and regulations for the effective implementation of this Act. Upon
issuance of the said rules and regulations, all former rules and regulations pertaining to
the expanded value-added tax on agricultural and fisheries machineries shall be deemed
revoked.

SECTION 5. Separability Clause, - If any provision of this Act, or any parts
thereof, is declared unconstitutional, the same shall not affect the validity and effectivity
of the other portions,

SECTION 6. Repeating Clause. - All laws, executive orders, presidential
decrees, proclamations, rules, regulations, issuances and enactments of parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 7. Effectivity. - This Act shall take effect fifteen (15) days from its
complete publication in the Official Gazette of in a newspaper of general circulation in

the Philippines, whichever comes earlier.

APPROVED.