Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND ASSESSMENT IN THE 
PHILIPPINES, REORGANIZING THE BUREAU OF LOCAL GOVERNMENT FINANCE, AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
With the Mandanas-Garcia Supreme Court Ruling in 2018 leading to devolution of services from 
the national government agencies to the local government units (LGUs), LGUs need higher income and 
automatic share from the internal revenue allotment (IRA) to support the newly devolved functions. 
Currently, the Local Government Code of 1991 (LGC) allows LGUs to levy taxes from local sources such 
as business taxes, amusement taxes, and annual community tax. However, the current tax rate for real 
property tax for provinces is at a set rate not exceeding 1% of the assessed value of the real property, 
meanwhile the real property tax for cities within Metro-Manila is at 2%. Moreover, there is a poor collection 
efficiency of real property tax, specifically, it is only at 27% for provinces and 68% in cities.  
This Bill seeks to address issues attributed by the lack of a national standard for valuation, 
susceptibility to tax evasion, poor compliance with the LGC’s provision to revise property assessments and 
classifications for real property tax, and the absence of a database incorporating an updated list real properties 
and their corresponding accurate and current valuation. The intention of the Bill is to develop and implement 
a standardized valuation process of real property for the country, produce updated and relevant digital 
database of all real property transactions, and ensure transparency in all real property transactions.  
In the view of the foregoing, immediate passing of this bill is earnestly sought for. 
TEODORICO T. HARESCO, JR
August 23, 2022
11:44 am
3954


NINETEENTH CONGRESS OF THE 
 REPUBLIC OF THE PHILIPPINES 
First Regular Session 
House Bill No. _______ 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND ASSESSMENT IN THE 
PHILIPPINES, REORGANIZING THE BUREAU OF LOCAL GOVERNMENT FINANCE, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as “Real Property 
1 
Valuation   and Assessment Reform Act.” 
2 
3 
ARTICLE 1 
4 
DECLARATION OF POLICY AND OBJECTIVES, 
5 
AND DEFINITION OF TERMS 
6 
7 
SECTION 2. Declaration of Policy. – It is the policy of the State to promote 
8 
the development and maintenance of a just, equitable, impartial, and 
9 
nationally consistent real property valuation based on internationally 
10 
accepted valuation standards, concepts, principles, and practices. Towards 
11 
this end, the State shall: 
12 
a. Establish and maintain standards to govern the valuation of real
13 
property in the country;
14 
b.
Adopt market value as the single real property valuation base for
15 
the assessment of real property related taxes in the country, and
16 
for the valuation of real property for various transactions by all
17 
government agencies;
18 
c. Promote the fiscal autonomy of local government units (LGUs) to
19 
provide basic services to their constituency by enhancing their
20 
capacity to generate local revenues from real property;
21 
d. Separate the function of valuation real properties from the
22 
functions of tax policy formulation and the administration of the
23 
taxes due thereon;
24 
e. Support the development and professionalization of the valuation
25 
practice in the  country pursuant to Republic Act No. 9646.
26 
} 
3954


otherwise known as the "Real Estate Service Act  of the 
27 
Philippines"; 
28 
f.
Provide a comprehensive and up-to-date electronic database of all
29 
real property transactions;
30 
g. Support the development of an information database on valuation
31 
through continuing research and monitoring of new developments
32 
in the discipline to upgrade the country's  valuation system and be
33 
at par with global standards; and
34 
h. Ensure transparency in real property transactions to protect public
35 
interest and develop confidence in the valuation system.
36 
37 
SECTION 3. Definition of Terms. – The following terms shall be defined as 
38 
follows: 
39 
a. Appraiser also known as valuer, refers to a person who conducts
40 
valuation; 
specifically, 
one 
who 
possesses 
the 
necessary
41 
qualifications. license. ability, and experience to execute or direct
42 
the valuation of real property.
43 
b. Assessed Value, also known as taxable value, refers to the market
44 
value of the property multiplied by the corresponding assessment
45 
level;
46 
c. Assessment refers to the act or process of determining the value of
47 
a property, or proportion thereof subject to taxation, including the
48 
discovery, listing, classification, and appraisal of properties;
49 
d. Assessment Level refers to the percentage applied to the market
50 
value to determine the taxable value of the property based on
51 
property classifications as prescribed in Republic Act No. 7160,
52 
otherwise known as the "Local Government Code of 1991 - as
53 
amended;
54 
e. Assessor refers to the official or employee in the local government
55 
unit (LGU) who   is a duly licensed appraiser, and performs appraisal
56 
and assessment of real properties, including plant, machinery, and
57 
equipment, for taxation and other purposes. This definition is also
58 
applicable to assistant assessor;
59 
f.
Building refers to a man-made structure permanently attached to
60 
land for residential. commercial. industrial, recreational, or other
61 
purposes;
62 
g. Improvement refers to a valuable addition made to a property or an
63 
amelioration its condition, amounting to more than a mere repair or
64 
replacement of parts. involving capital expenditures and labor
65 
intended to enhance its value, beauty, or utility, or to adapt it for
66 
new or further purposes;
67 
h. Land refers to one of the major factors production which is supplied
68 
by nature  without the aid of man. Land may include not only the
69 
earth's surface, both land and water, but also anything that is
70 
attached to the earth's surface including all natural resources, such
71 
as mineral deposits, wildlife, and timber;
72 
i.
Internationally accepted valuation standards shall refer to
73 
generally accepted  standards for the valuation for all types of assets
74 
including real estate plant and equipment, intangible assets and
75 


 
businesses which shall include, but not limited to, the international 
76 
valuation standards; 
77 
j. International valuation standards shall refer to standards for 
78 
undertaking valuation assessments using generally recognized 
79 
concepts 
and 
principles 
that 
promote 
transparency 
and   
80 
consistency evaluation practice as determined by the International 
81 
Valuation Standards   Council; 
82 
k. Machinery 
refers 
to 
machines, 
equipment, 
mechanical 
83 
contrivances, instruments, appliances, or apparatus which may or 
84 
may not be attached, permanently or temporarily, to the real 
85 
property. It includes the physical facilities for production, the 
86 
installations and appurtenant service facilities, those which are 
87 
mobile, self-powered or self-propelled, and those not permanently 
88 
attached to the real property which are, directly, and exclusively 
89 
used to meet the needs of the particular industry, business or 
90 
activity, and which by their very nature, and purpose are designed 
91 
for or necessary to its manufacturing, mining, logging, commercial, 
92 
industrial or agricultural purposes;  
93 
l. Market Value refers to the estimated amount for which a property 
94 
shall exchange on the date of valuation between a willing buyer and 
95 
a willing seller in an arm’s length transaction which is a transaction 
96 
between independent, unrelated parties involving no irregularity, 
97 
after proper marketing. wherein the parties had each acted 
98 
knowledgeably. prudently, and without compulsion;  
99 
m. Private appraisal sector refers to licensed non-governmental real 
100 
estate service practitioners;  
101 
n. Real refers to the land and all those items which are attached to the 
102 
land. It is the physical tangible entity, together with all the additions 
103 
or improvements on, above, or below the ground;  
104 
o. Real property refers to all the rights. interests and benefits related 
105 
to the ownership of real estate. It is a legal concept distinct from real 
106 
estate, which is a physical asset; 
107 
p. Schedule of Market Values, hereinafter referred to as SMV, refers 
108 
to a table of base unit market values for all kinds of real property, 
109 
except machinery within an LGU prepared by  assessors pursuant 
110 
to existing laws, rules and regulations; 
111 
q. Special purpose property refers to a property that is designed, 
112 
constructed, and developed for a specific use or purpose. By its very 
113 
nature, this type of property is rarely offered for sale in the open 
114 
market except as part of a going concern since its special design and 
115 
function renders conversion to other types of development or 
116 
application not economically feasible, and 
117 
r. Valuation, also known as appraisal, refers to the systematic, 
118 
analytic, and logical analysis of the recording of property facts, 
119 
circumstances, investments and other relevant data resulting in a 
120 
supportable estimate or professional opinion of the value of the 
121 
property as of a specific date and for a specific purpose. 
122 
 
123 
ARTICLE II 
124 


 
THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF) 
125 
 
126 
SECTION 4. Powers and Functions of the Bureau of Local Government 
127 
Finance (BLGF).  — The BLGF of the Department of Finance (DOF) shall lead 
128 
and manage the implementation of the provisions of this Act. In addition to 
129 
the powers vested upon it by Executive Order No. 292, otherwise known as 
130 
the "Administrative Code of 1987", it shall exercise the following   additional 
131 
powers and functions: 
132 
1) 
Develop, adopt, and maintain valuation standards consistent 
133 
with internationally accepted valuation standards, regulations, and 
134 
specifications for real property appraisal used   for taxation and other 
135 
purposes. and ensure compliance therewith by LGUs and other 
136 
concerned parties; 
137 
2) 
In coordination with the Bureau of Internal Revenue, and ensure 
138 
that the Schedule of Market Values (SMVs) as prepared by the provincial 
139 
assessors together with the  municipal assessors, and the city assessors, 
140 
including the Ione municipal assessor in the Metropolitan Manila Area 
141 
is compliant with real property valuation policies and standards. and 
142 
recommend its approval to the Secretary of Finance for local and 
143 
national taxation, and for   other purposes; 
144 
3) 
Provide technical assistance on real property appraisal matters 
145 
to government agencies and instrumentalities, and coordinate or 
146 
conduct the valuation of special purpose property, when requested; 
147 
4) 
Provide leadership and policy direction to LGUs on real property 
148 
valuation for taxation and other purposes. including the development 
149 
and maintenance of internationally accepted valuation standards, the 
150 
regulation of valuation activities and other related matters. and the 
151 
promotion of valuation training and seminars;  
152 
5) 
Maintain a roster of licensed local government appraisers and 
153 
assessors in consultation and coordination with the Professional 
154 
Regulation Commission; 
155 
6) 
Develop and maintain a comprehensive and up-to-date electronic 
156 
database of real property transactions and prices of materials for 
157 
building, machinery, and other structures; 
158 
7) 
Conduct continuing study and research in valuation, and 
159 
maintain information on current global and country trends and 
160 
developments in real property valuation; 
161 
8) 
Formulate and provide for uniform procedure on the different 
162 
transactions in the assessor’s office, including the transfer, annotation, 
163 
and issuance of tax declarations: 
164 
9) 
Deterrnine, fix, and collect a reasonable amount to be charged as 
165 
administration fees, fines, and penalties relative to the implementation 
166 
of this Act; and 
167 
10) 
Perform such other functions as are necessary, proper, and 
168 
incidental to implement the provisions of this Act. 
169 
 
170 
 
171 
SECTION 5. Establishment of the Real Property Valuation Service. To 
172 
achieve the policies and objectives declared in this Act, the Real Property 
173 


 
Valuation Service, hereinafter referred to as the RPVS is hereby established 
174 
within the BLGF and shall have counterpart personnel in the BLGF Regional 
175 
Offices. 
176 
 
177 
SECTION 6. Supervisory Role of the BLGF Executive Director over the 
178 
RPVS. — The BLGF Executive Director shall be responsible for the efficient 
179 
and effective day-to-day performance of the responsibilities set forth in this 
180 
Act, and for the overall internal management and governance of the RPVS. 
181 
 
182 
SECTION 7. Creation of a Central Consultative Committee.  
183 
a) A Central Consultative Committee shall be created and shall serve as 
184 
the consultative forum on matters pertaining to the setting and 
185 
adoption of internationally accepted valuation standards and other 
186 
related concerns on real property valuation; 
187 
b) It shall be chaired by the BLGF Executive Director and shall be 
188 
composed of a representative each from the: 
189 
i) Bureau of Internal Revenue (BIR);  
190 
ii) Department of Environment and Natural Resources (DENR); 
191 
iii) Bangko Sentral ng Pilipinas (BSP); 
192 
iv) National organization of government assessors;  
193 
v) National organization of appraisers in national government 
194 
agencies; and 
195 
vi) Private appraisal sector: 
196 
Provided, That the representative from the private appraisal sector shall 
197 
be active in the practice of real estate appraisal for at least five (5) years 
198 
as certified by the Professional   Regulatory Board of Real Estate Service 
199 
(PRBRES). 
200 
c) The representatives of the BIR, DENR, and BSP must be 
201 
performing valuation related functions. The national organization 
202 
of government assessors, and the private appraisal sector shall 
203 
be represented by their respective heads of organizations or their 
204 
duly qualified representatives; 
205 
d) The Chairperson and members of the Committee shall not receive 
206 
additional salary for the performance of their functions. Members 
207 
of the consultative committee who are not incumbent government 
208 
officials or employees shall be entitled to honoraria, pursuant to 
209 
existing laws and regulations; and 
210 
e) The Committee shall meet at the initiation of the Chairperson at 
211 
least once every semester and shall have as many meetings as 
212 
the Chairperson may deem necessary for the   adoption of 
213 
valuation standards. The Chairperson may invite resource 
214 
persons on issues concerning real property valuation. 
215 
 
216 
Chapter 2 
217 
BLGF Regional Operations 
218 
 
219 
SECTION 8. Role of the BLGF Regional Offices. - The BLGF Regional 
220 
Offices, shall. through the Regional Director, be responsible for all matters 
221 
relating to valuation and the supervision of the SMVs in the region. They shall:  
222 


 
a) Implement policies, plans, programs, rules and regulations on real 
223 
property valuation of LGUs in the region; 
224 
b) Review, in coordination with the BIR, and endorse to the RPVS, the 
225 
proposed SMVs prepared by the assessors of the LGUs in the region; 
226 
c) Provide for economical, efficient and effective valuation services in the 
227 
region; 
228 
d) Coordinate and consult with other government departments. bureaus 
229 
and agencies within the region dealing with real property valuation; 
230 
e) Adopt and maintain a comprehensive and up-to-date electronic 
231 
database of all  regional real property-related transactions, and have 
232 
custody of all transaction records   submitted by local government 
233 
assessors; and 
234 
f) Perform other functions as may be assigned by the BLGF Executive 
235 
Director. 
236 
 
237 
SECTION 9. The Regional Consultative Committee. — 
238 
a. There shall be a Regional Consultative Committee that shall be chaired 
239 
by the BLGF Regional Director and shall be composed of a 
240 
representative from the: 
241 
(1) BIR — Regional Office;  
242 
(2) DENR - Regional Office; 
243 
(3) Head of Regional organization of government assessors or its 
244 
duly authorized representative; 
245 
(4) Head of Regional organization of national government appraisers 
246 
or its duly   authorized representative; 
247 
(5) Head of the private appraisal sector within the region or its duly 
248 
authorized representative; and 
249 
(6) Head of the bankers association within the region or its duly 
250 
authorized representative; 
251 
b. The members of the Regional Consultative C01nmittee must be 
252 
performing valuation related functions in their respective agencies or 
253 
sectors; and 
254 
c. The Committee shall meet at the initiation of the BLGF Regional 
255 
Director at least once every quarter and shall have as many meetings 
256 
as the BLGF Regional Director may deem necessary for the 
257 
performance of its functions. The BLGF Regional Director may invite 
258 
resource persons on issues concerning real property. 
259 
 
260 
SECTION 10. Function of the Regional Consultative Committee. The 
261 
Regional Consultative Committee shall serve as a consultative forum in the 
262 
region for discussion on developments in the local real property market; 
263 
concerns of taxpayers, civil society, and other stakeholders; outcome of 
264 
compliance repotting in the region; level of complaints and appeals:  training 
265 
of local government assessors in the region; appraisal and assessment 
266 
concerns in general; and other matters as may be determined by the 
267 
Committee: Provided, That any report thereof, as a result of the forum, shall 
268 
be submitted to the Central Consultative Committee. 
269 
 
270 
 
271 


 
 
272 
 
273 
ARTICLE III 
274 
VALUATION OF REAL PROPERTIES 
275 
 
276 
Chapter 1 
277 
Valuation Standards and Market Values 
278 
 
279 
SECTION 11. Development of Valuation Standards. — Notwithstanding 
280 
the provisions of existing laws to the contrary, the BLGF shall develop, adopt, 
281 
maintain, and implement uniform valuation standards which shall be used 
282 
by all appraisers and assessors in the LGUs and other  concerned parties in 
283 
the appraisal or valuation of lands, buildings, machinery and other real  
284 
properties for taxation and other purposes. The valuation standards shall 
285 
conform with internationally accepted valuation standards and principles. 
286 
 
287 
 SECTION 12. Valuation of Real Property. — For valuation purposes. all 
288 
real properties.  whether taxable or exempt, shall be valued, or appraised 
289 
based on prevailing market values in the locality where the property is 
290 
situated, in conformity with the valuation standards adopted pursuant to this 
291 
Act. The Secretary of Finance shall promulgate the rules and regulations for 
292 
the valuation or real property pursuant to the provisions of this Act.  
293 
 
294 
For real property intended for low-cost or socialized housing and other 
295 
programs of the government imbued with social policy objectives. the 
296 
provisions of existing pertinent laws shall be applied after the determination 
297 
of the prevailing market value of these properties in accordance with 
298 
internationally accepted valuation standards.  
299 
 
300 
SECTION 13. Preparation of Schedule of Market Values. — The provincial 
301 
assessors, together with the municipal assessors, and the city assessors, 
302 
including the lone municipal assessor in the Metropolitan Manila Area, shall 
303 
prepare the SMVs for the different classes of  real property situated within 
304 
their respective LGUs, pursuant to the valuation standards, rules, 
305 
regulations, and other specifications set by the DOF. The preparation of the 
306 
SMV s shall be completed within six (6) months following the notice from the 
307 
BLGF to all local assessors to submit their revised SMVs. 
308 
 
309 
Upon its completion, the local assessor shall submit the proposed SMV to the 
310 
BLGF Regional Office. Within seventy-five (75) days fr01n receipt thereof, the 
311 
BLGF Regional Office, in coordination with the BIR Regional Office, shall 
312 
review and endorse the proposed SMV to the BLGF Executive Director and 
313 
the Commissioner of Internal Revenue: Provided, That, in the case of cities 
314 
and municipality within the Metropolitan Manila Area, the proposed  SMV 
315 
shall be submitted to, and reviewed by the BLGF Central Office, in 
316 
coordination with the concerned BIR Regional Office: Provided, further, That 
317 
the SMV complies with all the  requirements set by the Secretary of Finance, 
318 
including the conduct of at least one (l ) public   consultation on the proposed 
319 
SMVs. 
320 


 
 
321 
SECTION 14. Approval of Schedule of Market Values. The Secretary of 
322 
Finance shall approve the SMV in accordance with internationally accepted 
323 
valuation standards, within thirty (30) days from receipt of the joint 
324 
endorsement of the BLGF Executive Director and the Commissioner of 
325 
Internal Revenue; otherwise, said schedule shall be deemed approved. In case 
326 
of sudden changes in the market values, including but not limited to, 
327 
ancestral domain, public land, agrarian reform beneficiaries, and other 
328 
vulnerable sectors, the assessor is mandated to recommend to the sanggunian 
329 
tax rates and assessment levels that Will maintain or minimally affect the real 
330 
property tax due for the property. 
331 
 
332 
The approved SMVs shall take effect fifteen (15) days after its publication by 
333 
the DOF in the Official Gazette or in at least two (2) newspapers of general 
334 
circulation and posting in the respective provincial capitols, city hall and 
335 
municipal hall, and in two (2) other conspicuous public places within the LGU 
336 
covered by the approved SMVs. 
337 
 
338 
The DOF and the concerned LGUs shall post the approved SMVs in their 
339 
official website. 
340 
 
341 
SECTION 15. Setting Assessment Levels and Tax Rates. — The approved 
342 
SMV Shall be transmitted to the concerned local chief executive, through the 
343 
respective provincial, city, and municipal assessor. The concerned assessor, 
344 
in coordination with the local treasurer, shall estimate the revenue and tax 
345 
impact of the new SMV based on existing assessment levels and tax rates, 
346 
and recommend amendments thereon based on three (3) different scenarios. 
347 
The assessor shall thereafter prepare and submit the revenue and tax impact 
348 
report to the local chief executive for consideration. 
349 
 
350 
The local chief executive shall transmit the approved SMV, together with the 
351 
revenue and tax impact report, within fifteen (15) days from receipt of the 
352 
same to the sanggunian for the enactment of an ordinance setting the 
353 
appropriate assessment levels and tax rates. During the sanggunian's 
354 
deliberations prior to the enactment of the tax ordinance. it may call upon the 
355 
assessor to provide technical assistance and calculate the revenue and tax 
356 
impact of additional options to arrive at a desired level of revenue and tax 
357 
burden that the sanggunian will adopt. The concerned sanggunian shall enact 
358 
the tax ordinance within sixty (60) days from receipt thereof, upon conduct of 
359 
public hearings and proper consultations; otherwise, the existing ordinance 
360 
on assessment levels and tax rates shall remain in force and effect. 
361 
 
362 
Upon the enactment by the sanggunian of an ordinance for the assessment 
363 
levels and tax rates, the local chief executive shall act within ten (10) days, in 
364 
the case of cities, including the municipality in the Metropolitan Manila Areas 
365 
or within fifteen (15) days, in the case of provinces, to approve the same. 
366 
Failure of the concerned local chief executive to act on the ordinance within 
367 
the prescribed period shall render the same approved: Provided, hmcever, 
368 
That this law shall not be construed to abridge the power of LGUs to lower 
369 


 
and adjust assessment levels and tax rates in accordance with the provisions 
370 
of Republic Act No. 7160, otherwise known as the “Local Government Code of 
371 
1991”, as amended. to provide with it to residential property owners as 
372 
deemed necessary. 
373 
 
374 
SECTION 16. Publication of Assessment Levels and Tax Rates. The 
375 
approved ordinance for the assessment levels and tax rates shall be published 
376 
by the concerned LGU in a newspaper of local circulation once a week for two 
377 
(2) consecutive weeks: Provided, That in provinces and cities, including the 
378 
municipality within the Metropolitan Manila Area, where there are no 
379 
newspapers of local circulation. the same shall be posted in the provincial 
380 
capitol, including all concerned city halls, municipal halls, and in two (2) other 
381 
conspicuous public places therein. 
382 
 
383 
SECTION 17. Use of Schedule of Marker Values. The approved SMV shall 
384 
be used as bases for the determination of real property-related taxes of 
385 
national and local governments, as follows:  
386 
1) For purposes of real property taxation, the approved SMV shall, in no case, 
387 
be adopted by the LGU less than six (6) months prior to the effectivity of 
388 
the new assessment rates to ensure the proper cleansing and updating of 
389 
records, and notification of property owners in the conduct of general 
390 
revision of assessment and property classification; 
391 
2) In computing any internal revenue tax, the BIR Commissioner shall use 
392 
the SMV, or the actual gross selling price in consideration, as stated in real 
393 
property transaction documents. whichever is higher; 
394 
3) For other purposes, such as local transfer tax, tax on sand and gravel, 
395 
community tax, fees and charges, or as benchmark for real property 
396 
appraisal of other government agencies, the approved SMV shall be used 
397 
upon its effectivity. 
398 
 
399 
Notwithstanding the provision of existing laws to the contrary. the failure to 
400 
conduct a general revision of assessment and property classification, and use 
401 
of the approved SMV shall render an LGU ineligible for any conditional or 
402 
performance-based grant or to contract any form of credit financing. 
403 
 
404 
SECTION 18. Updating the Schedule of Market Values. — All provincial 
405 
assessors, together with the municipal assessors and the city assessors, 
406 
including the Ione municipal assessor within the Metropolitan Manila Area, 
407 
shall update their respective SMVs within two (2) years from the effectivity of 
408 
this Act. Thereafter, they shall update the SMVs and conduct general revision 
409 
of property assessments and classifications once every three (3) years from 
410 
the date of last revision. The BLGF shall prepare the schedule for the updating 
411 
of the SMVs in all provinces and cities, including the municipality within the 
412 
Metropolitan Manila Area. 
413 
 
414 
In case of any significant change in market value where the property is located 
415 
after the SMV has been approved and prior to the next revision, such as in 
416 
times of calamities, disasters,  man-made or natural and other adverse 
417 
circumstances, or where corrections of errors and   inequalities in the SMV is 
418 


 
deemed necessary, or upon the order of the Secretary of Finance, the 
419 
provincial and city assessors shall recommend revisions 10 the existing SMVs 
420 
to the BLGF  Regional Office, through the BLGF Regional Director exercising 
421 
jurisdiction over the LGU  concerned: Provided, That. the city assessors and 
422 
municipal assessor within the Metropolitan Manila Area, shall recommend 
423 
revisions to the existing SMVs to the BLGF Central Office. 
424 
 
425 
Such revision or revisions shall be subject to review by the concerned BLGF 
426 
Regional   Office and the BIR Regional Office which shall complete their review 
427 
and submit their recommendations to the BLGF Executive Director, in 
428 
accordance with Sections 13 and 14 of this Act. 
429 
 
430 
SECTION 19. Conduct of Capacity Building Interventions. The BLGF 
431 
shall, in coordination with the Philippine Tax Academy of the DOF develop 
432 
and conduct the necessary trainings for all local assessors, local officials and 
433 
staff, and other concerned BIR personnel in the preparation of the SMVs in 
434 
accordance with internationally accepted valuation standards, concepts, 
435 
principles and practices, conduct of impact studies, preparation of 
436 
compliance reports, and other subject areas. 
437 
 
438 
Chapter 2 
439 
Development and Maintenance of Real Property Market Database 
440 
 
441 
SECTION 20. Development of Real Property Information System. The 
442 
BLGF shall develop and maintain an up-to-date electronic database of the 
443 
sale, exchange, lease, mortgage, donation, transfer and all other real property 
444 
transactions and declarations in the country and on the cost of construction 
445 
or renovation of buildings and other structures, and on the prices of 
446 
machinery. 
447 
 
448 
For this purpose, the BLGF shall require the mandatory submission of 
449 
necessary documents from the concerned officials or employees of national 
450 
government offices or   instrumentalities, LGUs, and the private sector: 
451 
Provided, That in the case of government agencies and instrumentalities, the 
452 
mandatory submission of documents and information shall be subject to the 
453 
prohibition of disclosure of certain information under the Data Privacy Act 
454 
and other existing laws. The updated database shall be made available to the 
455 
LGUs. national government agencies and the private sector: Provided, further, 
456 
That the Commissioner of Internal Revenue or a duly authorized 
457 
representative shall be allowed access to the database without need of prior 
458 
approval: Provided, finally, That non-submission of the required documents 
459 
to the BLGF will subject the concerned official or employee to administrative 
460 
penalties pursuant to the provisions of Section 28 of this Act.  
461 
 
462 
To further ensure the efficiency of real property tax administration. all 
463 
provinces. cities and municipalities shall automate their operations, adopt tax 
464 
mapping technology, maintain   software-enabled valuation systems, 
465 
undertake regular data cleansing, and computerize records management. The 
466 
National Government, through the Department of Information and 
467 


 
Communications Technology, shall provide the appropriate equipment and 
468 
connectivity   information and communications technology platform, and the 
469 
appropriate training and capability building programs to third class up to 
470 
sixth class municipalities and provinces to   ensure compliance with this 
471 
section. The BLGF shall establish mechanisms for the electronic   Submission 
472 
of the required documents in accordance with the provisions of Chapter 2. 
473 
Article II of this Act. 
474 
 
475 
SECTION 21. Duty of Register of Deeds to Supply Assessors with Real 
476 
Property Transactions Data. The Register of Deeds shall prepare and 
477 
submit to the provincial assessors, together with the municipal assessors, 
478 
and city assessors, including the lone municipal assessor in the Metropolitan 
479 
Manila Area, an abstract of the entire registry every three (3) months and 
480 
copies of all contracts selling. transferring or otherwise converting, leasing, or 
481 
mortgaging real property registered every end of the month. The abstract shall 
482 
include brief, but sufficient descriptions of the real properties entered therein, 
483 
their present owners. and the dates of their most recent transfer or alienation 
484 
accompanied by copies of corresponding deeds of sale, donation, or partition, 
485 
or other forms of alienation. 
486 
 
487 
SECTION 22. Duty of Official Issuing Building Permits or Certificates of 
488 
Registration of Machinery to Transmit Copy of Permit to the Assessor. 
489 
— Any public official or employee who may now or hereafter be required by 
490 
law or regulation to issue to any person a permit for the construction, 
491 
addition, repair, or renovation of a building, or permanent improvement on 
492 
land. or a certificate of registration for any machinery, including machines, 
493 
mechanical contrivances and apparatus attached or affixed on land or to 
494 
another real property, shall transmit a copy of such permit or certification 
495 
within thirty (30) days of its issuance to the assessor of  the province, city or 
496 
municipality where the property is situated. 
497 
 
498 
SECTION 23. Duty of Geodetic Engineers to Furnish Copy of Plans to the 
499 
Assessor. It shall be the duty of all geodetic engineers, public or private, to 
500 
furnish free of charge, the assessor of the province, city or municipality where 
501 
the land is located, a copy of the blue or white print of each of all approved 
502 
original subdivision plans or maps of surveys, duly signed by a Senior 
503 
Geodetic Engineer, executed by them every end of the month from receipt of 
504 
such  approved plans from the Land Management Bureau (LMB), the Land 
505 
Registration Authority (LRA), or the Housing and Land Use Regulatory Board 
506 
(HLURB), as the case may be. 
507 
 
508 
SECTION 24. Duty of Registrar of Deeds and Notaries Public to Assist 
509 
the Provincial, City or Municipal Assessor. — It shall be the duty Of the 
510 
Registrar of Deeds and notaries public to furnish, free of charge, the 
511 
provincial, city or municipal assessor with copies of all contracts selling, 
512 
transferring, or otherwise conveying, leasing, or mortgaging real property 
513 
received by,  or acknowledged before them within such periods as the BLGF 
514 
shall prescribe. 
515 
 
516 


 
SECTION 25. Transmission of Real Property Transactions Data to the 
517 
BLGF. — Upon operationalization of the real property transactions database 
518 
as provided in Section 20 of this Act, it shall be the duty of the registers of 
519 
deeds. notaries public. officials issuing building permits, and the geodetic 
520 
engineers conducting surveys within a locality to electronically transmit to the 
521 
concerned BLGF Regional Office relevant real property transactions data, in   
522 
accordance with the rules and regulations to be promulgated by the Secretary 
523 
of Finance. 
524 
 
525 
Chapter 3 
526 
Appointment and Qualifications of Assessors 
527 
 
528 
SECTION 26. Appointment of Assessors. — The local chief executive shall 
529 
appoint the provincial. city and municipal assessors and assistant assessors, 
530 
as the case may be, in accordance with Civil Service Law, Real Estate Service 
531 
Act, rules and regulations and the following guidelines: 
532 
 (a) In the case of provincial and assistant provincial assessors and city and 
533 
assistant city assessors. the appointee shall be chosen from the list or at least 
534 
three (3) ranking eligible candidate within the region; 
535 
 (b) In the case of city and assistant city assessors, and the municipal and 
536 
assistant   municipal assessors in the Metropolitan Manila Area, the 
537 
appointee shall be chosen from the   list of at least three (3) ranking eligible 
538 
candidates within the region; and 
539 
(c) In the case of municipal and assistant municipal assessors, the appointee 
540 
shall be chosen from the list of at least three (3) ranking eligible candidates 
541 
within the province. 
542 
 
543 
The assessors shall be under the technical supervision of the BLGF, primarily 
544 
through a system of compliance reporting and of capacity building through 
545 
education and training   programs. 
546 
 
547 
SECTION 27. Qualification of Local Government Assessors. — No person 
548 
shall be appointed assessor or assistant assessor unless a citizen of the 
549 
Philippines. a resident of the region for a provincial or city assessor/assistant 
550 
assessor, and of the province for a municipal assessor/assistant assessor, a 
551 
registered and licensed appraiser, of good moral character. and must not have 
552 
been convicted of any crime involving moral turpitude. The appointee must 
553 
have experience in real property valuation or assessment work in any suitable 
554 
field, either in private   or public practice. for at least five (5) years in the case 
555 
of the provincial or city assessor, and three (3) years in the case of the 
556 
municipal assessor. Once appointed, all assessors and local government 
557 
appraisers must comply with the requirements of the Professional Regulatory 
558 
Board of Real Estate Service for the regular updating of their licenses. 
559 
  
560 
ARTICLE IV 
561 
PENAL PROVISIONS 
562 
 
563 
SECTION 28. Failure to Comply with the Required Submission of 
564 
Document. — Any government official or employee who fails without 
565 


 
justifiable reason to provide or furnish data or information required pursuant 
566 
to Sections 20, 21, 22, 23 and 24 of this Act, shall be punished  by a fine 
567 
equivalent to one (l) month to six (6) months basic salary of the official or 
568 
employee,  or suspension from the service for a period not exceeding one (I ) 
569 
year, or both, at the discretion  of the competent authority. 
570 
 
571 
SECTION 29. Failure to Comply with the Valuation Standards. — An 
572 
assessor who, for unjustifiable reasons, fails to comply with the valuation 
573 
standards developed and adopted pursuant to this Act, or deliberately 
574 
conceals any deviation or departure from such standards in the valuation of 
575 
real property, shall be punished by a fine equivalent to one (1) month to six 
576 
(6) months basic salary of the official or employee. or suspension from the 
577 
service for a period not exceeding one (1) year, or both, at the discretion of the 
578 
competent authority. 
579 
 
580 
SECTION 30. Failure to Prepare Schedule of Market Values. An assessor 
581 
who, for   unjustifiable reasons, intentionally or deliberately refuses or fails to 
582 
prepare the SMVs within the period set forth in this Act shall be punished by 
583 
a fine equivalent to one (1) month to six   (6) months basic salary of the official 
584 
or employee, or suspension from the service for not more than one (1) year, or 
585 
both, at the discretion of the competent authority. This shall also be a   ground 
586 
for administrative and criminal liability in accordance with the provisions of 
587 
Republic Act No 9646, Otherwise known as the “Real Estate Service Act of the 
588 
Philippines”. 
589 
 
590 
SECTION 31. Government Agents Delaying the Review, Approval, and 
591 
Implementation of the SMV, and Conduct of General Revisions. — Any 
592 
government official or employee who delays, without justifiable cause, the 
593 
review, approval and implementation of the SMVs, the conduct of general 
594 
revisions, or causes the improper use thereof, shall be punished by a fine 
595 
equivalent to one (1) month to six (6) months basic salary of the official or 
596 
employee, or suspension from the service for a period not exceeding one (1) 
597 
year, or both, at the discretion of the competent authority. 
598 
 
599 
SECTION 32. Violation of Other Provisions. — Any person, whether natural 
600 
or juridical, who violates any provision of this Act other than those punishable 
601 
under Sections 28, 29, and 30 hereof shall, when warranted, be dealt with 
602 
under applicable existing laws.  
603 
 
604 
SECTION 33. Taxpayers' Remedies in Case of Erroneous Assessments of 
605 
Real Properties.  — The provisions of Sections 226 on Local Board of 
606 
Assessment Appeals and 229 on Action by the Local Board of Assessment 
607 
Appeals of Republic Act No. 7160, as amended, shall apply in all cases of 
608 
appeal as remedies for the taxpayers in the assessment of their properties. All 
609 
concerned local governments shall cause the constitution of a fully 
610 
functioning Local Board of Assessment Appeals in their respective 
611 
jurisdictions. in coordination with the Land Registration Authority. 
612 
 
613 
 
614 


 
 
615 
 
616 
ARTICLE V 
617 
TRANSITORY PROVISIONS 
618 
 
619 
SECTION 34. Transitory Guidelines. — LGUs which are in the process of 
620 
updating their SMVs shall, upon the effectivity of this Act, continue with such 
621 
revisions in accordance with Sections 15, 16. 17, and 18 of this Act: Provided, 
622 
That proper notification and coordination with the BLGF shall be undertaken. 
623 
In case the SMVs are not yet available or updated, the BIR Commissioner 
624 
shall adopt the existing SMVs, zonal values or the actual price in 
625 
consideration as stated in real property transaction documents. whichever is 
626 
higher for purposes of computing any internal revenue tax.  
627 
 
628 
SECTION 35. Saving Clause. — The zonal values, as determined by the BIR 
629 
and approved by the Secretary of Finance for internal revenue tax purposes, 
630 
and the SMVs prepared by the provincial assessors together with the city 
631 
assessors. and municipal assessors, including the municipal assessor in the 
632 
Metropolitan Manila Area, that have been approved by their respective 
633 
sanggunians for real property taxation purposes shall continue to be in force 
634 
and effect until repealed, superseded, modified, revised, set aside, or replaced 
635 
by the values provided under the updated SMV s as approved in accordance 
636 
with Sections 15 of this Act, which shall be within two (2) years upon the 
637 
effectivity of this Act. 
638 
 
639 
ARTICLE VI 
640 
FUNDING REQUIREMENTS 
641 
 
642 
SECTION 36. Budgetary Requirements for the Updating of Schedule of 
643 
Market Values. Each local sanggunian shall appropriate the necessary funds 
644 
from locally generated revenues, the internal revenue allotment or such other 
645 
sources every fiscal year to constitute the Real Property Tax Administration 
646 
Fund (RPTAF), which shall be established and used for the proper 
647 
implementation of the updating of the SMVs and general revision of real 
648 
property assessments, and the administration of real property taxes in all 
649 
LGUs. 
650 
 
651 
The BLGF shall annually furnish the Department of Budget and Management 
652 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in 
653 
its review of the ensuing year’s budget of provinces. highly urbanized cities, 
654 
independent component cities and municipality within the Metropolitan 
655 
Manila Area, shall ensure that sufficient funds are so appropriated for the 
656 
RPTAF: Provided, That failure to provide the appropriations required shall 
657 
render their annual budgets inoperative. 
658 
 
659 
ARTICLE VII 
660 
MISCELLANEOUS PROVISIONS 
661 
 
662 
SECTION 37. Appropriations. — The amount necessary for the 
663 


 
implementation of this Act shall be included in the annual General 
664 
Appropriations Act. 
665 
SECTION 38. Suppletory Application of Existing Laws. — The provisions 
666 
of Republic Act No. 7160, otherwise known as the “Local Government Code of 
667 
1991”, as amended, and other   laws consistent with this Act shall have 
668 
suppletory effect. 
669 
 
670 
SECTION 39. Implementing Rules and Regulations (IRR). — Within six (6) 
671 
months after the effectivity of this Act, the DOF shall. in consultation with 
672 
concemed panies. issue the IRR for the effective implementation of this Act. 
673 
 
674 
SECTION 40. Separability Clause. Should any provision of this Act or any 
675 
part thereof be declared invalid, the other provisions, so far as they are 
676 
separable from the invalid ones, shall remain in force and in effect. 
677 
 
678 
SECTION 41. Repealing Clause. The following provisions are hereby 
679 
repealed: 
680 
(a) Sections 212, 214, and 221 of Republic Act No. 7160, otherwise 
681 
known as the “Local Government Code of 1991”, as amended; and 
682 
(b) Section 4(h) of Presidential Decree No. 538. 
683 
 
684 
The following provisions are hereby amended accordingly: 
685 
(1) Section 33, Chapter IV, Title Il, Book IV, of Executive Order No. 
686 
292, otherwise known as the “Administrative Code of 1987”; 
687 
(2) Sections 19, 135(a), 138. 201, 218, 220, 472(a),  and 473(a) of 
688 
Republic Act No. 7160; 
689 
(3) Sections 5, 6, and 7 of Republic Act No. 10752, otherwise known 
690 
as “The Right-of-way Act”; 
691 
(4) Section 9 of Presidential Decree NO. 921; and 
692 
(5) Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, 
693 
otherwise known as the National Internal Revenue Code of 1997, 
694 
as amended. 
695 
 
696 
 All laws, presidential decrees, executive orders, presidential proclamations, 
697 
rules and regulations or parts thereof contrary to or inconsistent with this Act 
698 
are hereby repealed, superseded, or modified accordingly. 
699 
 
700 
SECTION 42. Effectivity Clause. This Act shall take effect fifteen (15) days 
701 
after publication in the Official Gazette or in two (2) national newspapers of 
702 
general circulation. 
703 
 
704 
Approved,  
705