Practice question
A timely LBAA appeal disputes an assessor’s decision not to account for depreciation of a depreciable building. The record proves the asset is depreciable; the assessor argues RA12001 permits ignoring depreciation because market value is now the valuation base. Which legal premise should the Board reject?
- RA12001 Section14 expressly requires consideration of depreciation for depreciable assets
- Market value necessarily abolishes depreciation
- Every taxable asset must always have its original cost as value
- RA12001 abolishes all valuation appeals
- The owner’s purchase price automatically controls forever
Legal references
- RA12001 Real Property Valuation and Assessment Reform Act: https://lawphil.net/statutes/repacts/ra2024/ra_12001_2024.html Section14; LGC229 fact-finding and substantial evidence.
- RA7160 Local Government Code: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html Section229.
Answer this question in flashcards to review your response and continue practicing.