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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1824
23 JAN 31 P4:24
RECEIVED SV;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROMOTING LAND VALUE CAPTURE IN THE PHILIPPINES, AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
Article II, Section 25 of the 1987 Constitution provides that, "The State shall 
ensure the autonomy of local governments. Moreover, Article II, Section 9 states that 
the State shall promote policies that provide adequate social services.
The insufficient infrastructure of the country is threatening the country's 
economic growth. In 2017, JICA reported that economic loss due to congestion in Metro 
Manila is estimated to be Php 3.5 billion on lost opportunities per day, which is higher 
than their 2012 estimate of Php 2.4 billion per day. The government is trying to fill the 
infrastructure gap of the country through the "Build Build Build" Program, projected to 
be an 8.4 trillion peso undertaking. However, the expected expenditure on Republic Act 
No. 11223 or the "Universal Healthcare Act", Republic Act No. 10931 or the "Universal 
Access to Quality Tertiary Education Act" and other social programs of the government 
threatens to jeopardize infrastructure spending. As such, there is a need for 
government to consider alternative methods of financing.
One underutilized source of financing in the country is land, which is ironically 
the country's biggest financial asset, accounting for 50% to 75% of the national wealth. 
The Local Government Code of 1991 gave the power to tax land value to local 
government units (LGUs). However, LGUs were not able to maximize revenues 
associated with land value, as real property taxes contribute only about 31% of LGU's 
local sources, with 116 out of 286 municipalities (40%) remaining dependent on their 
Internal Revenue Allotment (IRA). Given the current government mandate of 
decentralization and fiscal reform, the current situation needs to be addressed.
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According to the World Bank, two global cities in Asia, which are Hong Kong and 
Tokyo, provide cases of successful large-scale development-based land value capture 
as a strategic apparatus for sustainable urban finance and development. They have 
been applying it not only to recoup the costs of mass transit construction, operation, 
and maintenance but also to support their transit-oriented development for sustainable 
urban development. The Asian Development Bank further states that any fees, charges, 
or contributions made via land value capture to mass rapid transit funding and other 
infrastructure are only a relatively minor portion of the benefits received by 
beneficiaries - either directly or less directly from better transit and growing cities. In 
other words, property owners and the private sector have nothing to lose through this 
mechanism, and everything to gain.
Therefore, the failure of the LGUs to implement a land value capture mechanism 
is a great disadvantage to the government since it is an additional clear source of 
funding. The proposed measure aims to address this by clarifying and facilitating the 
mechanism in which special levies can be imposed.
Therefore, the immediate passage of this bill is respectfully sought.
yftMEE R. MARCOS


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
23 JAN 31 P4 :25
SENATE
S.B. No. 1824
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROMOTING LAND VALUE CAPTURE IN THE PHILIPPINES, AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Short 
"Land Value Capture Act".
Title. - This Act shall be known as the
SEC. 2. Development of Special Levy Standards. - Notwithstanding the 
provisions of any law to the contrary, the Bureau of Local Government Finance (BLGF) 
shall develop, adapt, maintain, and implement uniform valuation standards which shall 
be used by all appraisers and assessors in the Local Government Units (LGUs) in the 
imposition of special levies. The valuation standards shall conform with internationally 
accepted valuation standards and principles.
SEC. 3. Administering Special Levies. - An LGU, acting alone or in partnership 
with other LGUs or implementing agencies, may impose a special levy on the lands 
comprised within its territorial jurisdiction benefited by public works projects or 
improvements funded by the local government unit concerned: Provided, That the 
special levy shall not apply to residential lands, lands exempt from basic real property 
tax and the remainder of the land portions of which have been donated to the LGU 
concerned for the construction of such projects or improvements.
SEC. 4. Special Levy District. - The LGU imposing a special levy must define a 
special levy district from which the special levy will be collected, the area of which shall 
not lie more than two (2) kilometers from the public work project or improvement 
funded by the national government or the local government unit concerned. The


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boundaries of the territory proposed for inclusion in the district shall include the entirety 
of any parcel subject to the special levy. The proposed special levy district may contain 
separate zones, which may consist of either contiguous or noncontiguous areas of land 
within the district. The local government unit may fix different rates for different zones 
in the district.
SEC. 5. Preparation of Special Levies. - The LGU assessor, with the assistance 
of the BLGF and/or other administrative agencies, if needed, shall prepare the map of 
the special levy district. They shall also estimate the revenue and payment impact of 
the proposed special levy. The assessor shall thereafter prepare and submit the 
revenue and tax impact report to the local chief executive for consideration.
The local chief executive shall transmit the special levy district map and the 
revenue and payment impact report to the Sanggunian for the enactment of an 
ordinance setting the appropriate special levy district and special levy rate. During the 
deliberations prior to the enactment of the special levy ordinance, it may 
call upon the assessor to provide technical assistance and calculate the revenue and 
tax impact of additional options in order to arrive at a desired level of revenue and 
payment burden that the Sanggunian will adopt. The ordinance imposing a special levy 
shall describe with reasonable accuracy the nature, extent, and location of the public 
works projects or improvements to be undertaken, the estimated cost thereof, and the 
number of annual installments for the payment of special levy, which in no case shall 
be less than two (2) years nor more than ten (10 years). The concerned Sanggunian 
shall enact the ordinance upon conduct of public hearings and proper consultations.
SEC. 6. Publication of Proposed Ordinance Imposing a Special Levy. - Before 
imposing a special levy, the Sanggunian concerned shall conduct a public hearing 
thereon; notifying by publication for three (3) consecutive weeks in a newspaper of 
general circulation, as well as posting in the websites of the relevant local government 
unit, the owners of the real property to be affected or the persons having legal interest 
therein as to the date and place thereof and afford the latter the opportunity to express 
their positions or objections relative to the proposed ordinance.
SEC. 7. Fixing the Amount of Special Levy. - The special levy authorized herein 
shall be apportioned, computed, and assessed by the assessor concerned. Upon the 
effectivity of the ordinance imposing special levy, the assessor concerned shall 
forthwith proceed to determine the annual amount of special levy assessed against 
each parcel of land comprised within the area especially benefited and shall send to


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each landowner a written notice thereof by mail, personal service or publication in 
appropriate cases.
SEC. 8. Implementing Rules and Regulations (IRR). - Within six (6) months 
after the effectivity of this Act, the DOF, in consultation with the concerned parties, 
shall issue the IRR for the effective implementation of this Act: Provided, That the 
failure of the DOF to promulgate the said rules and regulations shall not prevent the 
implementation of this Act upon its effectivity.
SEC. 9. Suppletory Application of Existing Laws. - The provisions of Republic 
Act No. 7160, otherwise known as the "Local Government Code of 1991", and other 
laws consistent with this Act shall have suppletory effect.
SEC. 10. Repealing Clause. - All laws, presidential decrees, executive orders, 
presidential proclamations, rules and regulations or parts thereof contrary to or 
inconsistent with this Act are hereby repealed, superseded or modified accordingly.
SEC. 11. Separability Clause. - If any section or provision of this Act shall be 
declared unconstitutional or invalid, the other sections or provisions not affected 
thereby shall continue to be in full force and effect.
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,