,. 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
1 0 JUL -8 All:23 
SENATE 
S. No. 971 
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'~ECEiVEO BY' _~. 
I 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
This bill seeks to provide that the schedule of fair market values of real property 
shall be prepared by the Local Assessment council amending for the purpose the Local 
Government Code of 1991. 
At present, the preparation of schedule of fair market values of real property is 
the sole responsibility of the provincial, city or municipal assessor. Since the fair market 
value is the price at which a property may be sold by a seller who is not compelled to 
sell and bought by a buyer who is not compelled to buy, its determination is often 
subject to question, for the assessor sometimes base his preparation on prejudices, 
depending on his own personal interests. 
This results to unfair assessment of fair 
market values and is detrimental to both the buyer and the seller, whose welfare should 
always be safeguarded. 
It is therefore suggested that instead of one person performing such function, a 
collegial body must be created and so empowered. This body, the Local Assessment 
council shall have as members the following: the planning and development officer, 
assessor, a representative from the private sector or non-governmental organizations 
represented in the local development council. 
the function of preparation of the 
schedule of fair market values of real property is thereby removed from the Local 
Assessor. 
With this, the performance of said task will be based on various perspectives, 
eliminating the possibility of a schedule which favors only certain groups of sectors, or is 
erroneously done. 
Thus, approval of this bill is earnestly sought. 
M, ..... '"'" 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 971 
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JUl -8 All :23 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
• 
PROVIDING THAT THE SCHEDULE OF FAIR MARKET 
VALUES OF REAL PROPERTY SHALL BE PREPARED BY THE 
LOCAL 
ASSESSMENT 
COUNCIL 
AMENDING 
FOR THE 
PURP~SE THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 212 of Republic Act Numbered Seventy-one hundred and 
sixty, otherwise known as the Local Government Code of 1991 is hereby amended to 
read as follows: 
"SEC.212. 
Preparation of Schedule of Fair Market Values. 
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Before any general revision of property assessment is made pursuant to 
the provision of this Title, there shall be prepared a schedule of fair market 
values by the [provincial, city and the municipal assessors] LOCAL 
ASSESSMENT 
COUNCIL 
OF 
EACH 
PROVINCE 
CITY 
OR 
MUNICIPALITY [the municipalities within the Metropolitan Manila Area] 
for the different classes of real property situated in their respective local 
government units for enactment by ordinance of the sanggunian 
concerned. The schedule of fair market values shall be province, city or 
municipality shall and in two other conspicuous public places therein. 
THE LOCAL ASSESSMENT COUNCIL SHALL BE COMPOSED 
OF THE PLANNING AND EVELOPMENT OFFICER, ASSESSOR, A 
REPRESENTATIVE 
FROM 
THE 
SANGGUNIAN 
AND 
A 
REPRESENTATIVE 
FROM, THE 
PRIVATE 
SECTOR 
OR NON-
GOVERNMENTAL ORGANIZATIONS REPRESENTED IN THE LOCAL 
DEVELOPMENT COUNCIL." 
1 


• 
• 
SEC. 2. Section 214 of the same Act is also hereby amended to read as follows: 
"SEC. 214. Amendment of Schedule of the Fair Market Values. -
The [provincial, city or municipal assessor) LOCAL ASSESSMENT 
COUNCIL, may recommend to the sanggunian or concerned amendments 
or correct errors in valuation in the schedule of fair market values. The 
sanggunian concerned shall, by ordinance, act upon the recommendation 
within ninety (90) days from receipt thereof." 
SEC. 3. 
Repealing Clause. -
All laws, presidential decrees, executive 
orders, proclamations, rules and reg'ulations which are inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SEC. 4. 
Separability Clause. - If, for any reason, any section or provision 
of this Act shall be held unconstitutional or invalid, the other section or provision not 
otherwise affected shall remain valid. 
SEC. 5. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
from its publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved, 
2