FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S. NO. 2981 
'11 , . 
GCT -3 P5 :42 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
EXPLANATORY NOTE 
Land governance, in the context of rapid development and urbanization, requires 
a land administration and management (LAM) system that is efficient, effective and 
equitable. Within this system operates the real property valuation sector, which is an 
integral component of LAM and a major contributor to a country's socio-economic 
development. 
For so long, the country's real property sector has operated within an ineffective, 
inequitable, and inefficient valuation system. The problem is aggravated by the lack of 
national valuation standards that harmonize the valuations in the government and the 
private sector. With 23 national government agencies and almost 1,300 local 
government units (LGUs), along with private appraisers performing valuation using 
different methods and standards, the sector has been riddled with inconsistent real 
property values-where one property has conflicting values. Such condition has 
crippled the Government, both at the local and the national levels, to fully tap the 
potential of the land sector, and resulted to foregone revenues from national and local 
real property-related taxes. The resulting condition is unrealized fiscal sustainability. 
In the LGUs, the problems are more dramatic as the technical process of real 
property valuation is easily comingled with property taxation, which is a political exercise 
of elective LGU officials; thus, compromising the capacity of LGUs to generate revenues 
from real property from which they could sufficiently fund public goods and services for 
their constituencies. Considered as the main source of locally sourced revenue, the 
outdated Schedule of Market Values (SMVs), averaging from 10 to 12 years old, greatly 
narrowed the LGUs' real property tax base while increasing inequity in real property 
taxation. With the approval of SMVs assigned to the local councils, valuation, as a 
technical function, is often influenced by highly politicized decisions-far from the 
democratic tenet of the greater good. Since most of LGU values no longer reflect the 
true conditions of the local property market, the country's valuation system has acted as 
a disincentive for private investors to take a more vibrant role in economic development. 
In the same vein, many government-led projects and investments have been delayed 
due to just compensation issues and lengthy court litigations. 
As the Government pursues reforms in the LAM sector, this bill proposes to 
institutionalize valuation reforms starting from the LGUs by adopting a market-based 
SMV that is governed by uniform valuation standards based on international best 
practices, methods, and techniques. The existing expertise of LGU assessors, who are 
now subject to the professionalization and regulation requirements of Republic Act No. 
9646 or the Real Estate Service Act of 2009, will be the critical players of the reform 
process. In turn, SMVs shall be the basis of local and national real property taxation, 
and 
as benchmark for other purposes by other government agencies and 
instrumentalities. A national real property transactions database shall also be 
established to increase transparency and build public trust in the valuation sector. 


Furthermore, the bill proposes to strengthen and reorganize the Bureau of Local 
Government Finance (BLGF), under the Department of Finance, to assume institutional 
responsibility for the proposed reforms. The BLGF, through the creation of the Real 
Property Valuation Service (RPVS), is envisioned to conduct review of the SMVs and 
recommend for approval of the Secretary of Finance-thereby, separating the technical 
function of valuation from the political function of taxation. Thus, political backlash are 
minimized, and local officials are insulated from public pressures in the revision of 
SMVs. 
In the end, this bill seeks to create a sustainable government platform for the 
institutionalization of valuation reforms in the country, and achieve a more rational LAM 
sector that will allow the Government to fully tap the potential of real property both at the 
national and local levels. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
1 
FERDINA 
R. MARCOS, JR. 


,~ 
"'~~~ t: ~'1 n r t' 
d~lIm' uf tip ~~·I"n rI:lrY, 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
'11 
OCT -3 P ') :43 
SENATE 
S. NO. 2981 
Introduced by SENATOR FERDINAND R. MARCOS, 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 the "THE REAL 
PROPERTY VALUATION AND ASSESSMENT REFORM ACT OF 2011." 
ARTICLE I 
DECLARATION OF POLICY AND OBJECTIVES, 
AND DEFINITION OF TERMS 
SECTION 2. Declaration of Policy and Objectives. - It is the policy of the State 
to promote the development and maintenance of a just, equitable, impartial, and 
nationally consistent real property valuation based on internationally accepted valuation 
standards, concepts, principles, and practices. Towards this end, the State shall: 
(a) Promote the fiscal autonomy of local governments to provide basic services 
to their constituency by enhancing their capacity to generate local revenues 
from real property; 
(b) Establish and maintain valuation standards to govern the valuation of real 
property in the country; 
(c) Adopt market value as the single real property valuation base for the 
assessment of real property related taxes in the country, and for valuing or 
appraising real property for various transactions by all government agencies; 
(d) Separate the function of valuing or appraising of real properties from the 
functions of tax policy and administering the taxes due thereon; 
(e) Support the development and professionalization of the valuation/appraisal 
practice in the country pursuant to Republic Act No. 9646; 
(f) Provide a comprehensive and up-to-date electronic database of all real 
property transactions; 
(g) Support the development of a "body of knowledge" on valuation by continuing 
research and monitoring of new developments in the valuation diSCipline, for 
upgrading the country's valuation and keeping it abreast with global 
developments; and 


mean: 
(h) Ensure transparency in real property transactions to protect the public and 
develop confidence in the work of appraisers and assessors. 
SECTION 3. Definition of Terms. - As used in this Act, the following terms 
(a) Appraiser refers to a person who conducts valuation/appraisal; specifically, 
one who possesses the necessary qualifications, license, ability, and 
experience to execute or direct the valuation/appraisal of real property; also 
known as valuer. 
(b) Assessor refers to an official in the local government unit, who is a licensed 
appraiser, who performs appraisal and assessment of real properties, 
including plant, machinery and equipment, essentially for taxation and other 
purposes. This definition also includes assistant assessors. 
(c) Building refers to a man-made structure permanently attached to land for 
residential, commercial, industrial, recreational or other purposes. 
(d) Improvements refer to a valuable addition made to a property or an 
amelioration in its condition, amounting to more than a mere repair or 
replacement of parts involving capital expenditures and labor, which is 
intended to enhance its value, beauty or utility or to adapt it for new or further 
purposes. 
(e) Land refers to one of the major factors of production consisting sometimes of 
a material economic good, which is supplied by nature without the aid of man. 
Land may include not only the earth surface, both land and water, but also 
anything that is attached to the earth's surface. Thus, all natural resources in 
their original state, such as mineral deposits, wildlife, timber, and fish, are 
land within the technical meaning of the term; so also are sources of energy, 
outside of man himself, such as water, coal deposits, and the natural fertility 
of the soil. 
(f) Machinery refers to machines, 
equipment, 
mechanical 
contrivances, 
instruments, appliances or apparatus which mayor may not be attached, 
permanently or temporarily, to the real property. It includes the physical 
facilities for production, the installations and appurtenant service facilities, 
those which are mobile, self-powered or self-propelled and those not 
permanently attached to the real property which are actually, directly and 
exclusively used to meet the needs of the particular industry, business or 
activity and which by their very nature and purpose are designed for, or 
necessary to its manufacturing, mining, logging, commercial, industrial or 
agricultural purposes. 
(g) Market Value refers to the estimated amount for which a property should 
exchange on the date of valuation between a willing buyer and a willing seller 
in an arm's length transaction (a transaction between independent, unrelated 
parties involving no irregularity) after proper marketing wherein the parties 
had each acted knowledgeably, prudently, and without compulsion. 
(h) Private appraisal sector refers to licensed non-governmental real estate 
service practitioners who have been active in the practice of real estate 
appraisal for the last five (5) years. 
(i) Real Estate refers to the land and all those items which are attached to the 
land. It is the physical, tangible entity, together with all the additions or 
improvements on, above or below the ground. 


U) Real Property refers to all the rights, interests, and benefits related to the 
ownership of real estate, plant, machinery, and equipment. 
(k) Schedule of Market Values, hereinafter referred to as SMV, refers to a table 
of market values of real properties within a local government unit prepared by 
assessors pursuant to existing laws, rules and regulations. 
(I) Special Purpose Property refers to a property which is designed, constructed 
and developed for a specific use or purpose. By its very nature, this type of 
property is rarely offered for sale in the open market except as part of a going 
concern. Because of the special design and function, conversion of special 
purpose properties to other types of development or application is generally 
not economically feasible. 
(m) Valuation/Appraisal refers to the systematic and analytic determination and 
recording of property facts, circumstances, investments, and investigation of 
other relevant data resulting in a supportable estimate and opinion of value or 
a professional conclusion based upon supporting data, logical analysis and 
judgment as of a specific date and for a specific purpose. 
ARTICLE II 
STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT FINANCE 
Chapter 1 
BLGF Central Operations 
SECTION 4. Role of the Bureau of Local Government Finance. - The Bureau 
of Local Government Finance, through the Real Property Valuation Service (RPVS) as 
hereinafter established, shall lead and manage the implementation of the provisions of 
this Act. The BLGF shall have the following powers and functions: 
(a) Develop, adopt, and maintain valuation standards consistent with generally 
accepted valuation standards, regulations and specifications for real property 
appraisal used for tax and other purposes, and ensure compliance therewith 
by local government units and other concerned parties; 
(b) Review for compliance with the real property valuation policies and standards, 
and recommend for approval of the Secretary of Finance the Schedule of 
Market Values (SMVs) as prepared by the provincial assessors together with 
municipal assessors, and city assessors, including the municipal assessor in 
Metro Manila, for tax, both local and national, and for other purposes; 
(c) Provide technical 
assistance on 
real 
property appraisal matters to 
government agencies and instrumentalities, and coordinate or conduct the 
valuation/appraisal of special purpose properties, when requested; 
(d) Provide leadership and policy directions to local government units on real 
property valuation/appraisal for taxation and other purposes, including the 
development and maintenance of valuation standards, the regulation of 
valuation/appraisal activities and other related matters, and the promotion of 
valuation/appraisal training and seminars; 
(e) Maintain a roster of licensed local government appraisers and assessors; 
(f) Develop and maintain a comprehensive and up-to-date electronic database of 
real property transactions and prices of materials for buildings, machinery, 
and other structures; 


(g) Conduct continuing study and research on valuation, and maintain an 
information based on current global and country trends and developments in 
real property valuation/appraisal; 
(h) Determine, fix, 
and collect reasonable amounts to 
be charged as 
administration fees, fines, and penalties relative to the implementation of this 
Act; and 
(i) Perform such other functions as are necessary, proper, and incidental to 
implement the provisions of this Act. 
SECTION 5. Establishment of the Real Property Valuation Service. - To 
achieve the policy and objectives declared in this Act, there shall be established the 
Real Property Valuation Service, hereinafter referred to as the RPVS, within the Bureau 
of Local Government Finance. 
The RPVS shall be headed by a Director who is a Filipino citizen, of good moral 
character, a licensed appraiser, and with at least ten (10) years experience in 
valuation/appraisal or assessment of real properties. The RPVS Director shall be 
appointed by the President, upon the recommendation of the Secretary of Finance, and 
shall have a salary grade equivalent to a Director II. 
SECTION.6. Responsibilities of the BLGF Executive Director. - The BLGF 
Executive Director shall be responsible for the efficient and effective performance of the 
responsibilities set forth in this Act and for the overall internal management and 
governance of the RPVS. For this purpose, the BLGF Executive Director shall: 
(a) Develop and implement policies, plans, programs, and operating standards 
for the attainment of the objectives of this Act; 
(b) Provide policy directions and leadership in all aspects of valuation/appraisal 
and their implementation in the regional offices; 
(c) Recommend to the Secretary of Finance the approval of the Schedule of 
Market Values (SMVs) prepared by the provincial assessors together with 
municipal assessors, and city assessors, including the municipal assessor in 
Metro Manila, for tax and other purposes; 
(d) Advise and assist other government agencies on matters pertaining to real 
property valuation/appraisal; and 
(e) Perform such other functions as may be provided by law, or required in 
pursuance of this Act. 
SECTION 7. Consultations with Concerned Agencies and Sectors. - (a) A 
Central Consultative Committee shall be created, chaired by the BLGF Executive 
Director and composed of a representative each from the: 
1. Bureau of Internal Revenue (BIR); 
2. Department of Environment and Natural Resources (DENR); 
3. Bangko Sentral ng Pilipinas (BSP); 
4. National organization of government assessors; 
5. National organization of appraisers in national government agencies; ./ 
6. Private appraisal sector; and 
7. Union of Local Authorities of the Philippines (ULAP); 


(b) The member-representatives from the BIR, DENR, and BSP must be 
performing 
valuation-related 
functions. 
The 
national 
organization 
of 
government assessors, the private sector, and the ULAP shall be represented 
by their respective heads of organization. 
(c) In case there are several national organizations of government assessors or 
appraisers, their respective heads shall elect from among themselves a 
representative to the central consultative committee. The same rule shall 
apply in the case of the private appraisal sector. 
(d) The Chairperson and members of the Committee shall not receive additional 
salary for the performance of their functions, but they shall be entitled to 
honoraria, pursuant to existing laws and regulations. 
(e) The Committee shall meet at the initiation of the Chairperson at least once 
every semester, and shall have as many meetings as the Chairperson may 
deem necessary for the adoption of valuation standards. 
SECTION 8. Functions of the Central Consultative Committee. - The Central 
Consultative Committee shall serve as the consultation forum on matters pertaining to 
the setting, adoption and maintenance of the valuation standards. 
Chapter 2 
BLGF Regional Operations 
SECTION 9. Role of the BLGF Regional Offices. -
The BLGF Regional 
Offices, through the Regional Director, shall have the responsibility on all matters 
relating to valuation/appraisal and the SMVs in the region, such as: 
(a) Implement the provisions of this Act and related policies, plans, programs, 
rules and regulations on real property valuation or appraisal of local 
government units in the region; 
(b) Review and endorse to the BLGF Executive Director the proposed SMVs 
prepared by the provincial assessors together with the municipal assessors, 
and city assessors within the region; 
(c) Provide economical, 
efficient, 
and 
effective service 
relating 
to the 
implementation of the provisions of this Act in the region; 
(d) Coordinate 
and 
consult with 
regional 
offices 
of other government 
departments, bureaus, and agencies within the region dealing with real 
property valuation/appraisal; 
(e) Provide leadership and policy direction in the area of real property 
valuation/appraisal to local government units in the region; 
(f) Adopt and maintain a comprehensive and up-to-date regional electronic 
database of all regional real property-related transactions, and have custody 
of all transaction records submitted by local government assessors; and 
(g) Perform other functions as may be assigned by the BLGF Executive Director. 
SECTION 10. The Regional Consultative Committee. - (a) There shall be a 
Regional Consultative Committee chaired by the BLGF Regional Director, and 
composed of a representative each from: 
1) Bureau of Internal Revenue - Regional Office; 
2) Department of Environment and Natural Resources - Regional Office; 
3) Regional organization of government assessors; 
4) Regional organization of national government appraisers; 
5) Private appraisal sector within the region; and 
6) Bankers association within the region. 


(b) The members of the Regional Consultative Committee must be performing 
valuation/appraisal related functions. Representatives from the regional 
organization of government assessors, private appraisal sector, and banking 
association within the region shall be represented by the head of their 
respective regional organization. 
(c) In case there are several regional organizations of government assessors or 
appraisers, their respective heads shall elect from among themselves a 
representative to the regional consultative committee. The same rule shall 
apply in the case of the private appraisal sector. 
(d) The Committee shall meet at the initiation of the BLGF Regional Director at 
least once every quarter, and shall have as many meetings as the BLGF 
Regional Director may deem necessary for the performance of its functions. 
SECTION 11. Functions of the Regional Consultative Committee. - The 
Regional Consultative Committee shall serve as a conSUltation forum in the region for 
discussion on developments in the local real property market; concerns of taxpayers, 
civil society, and other stakeholders; outcome of Compliance Reporting in the region; 
level of complaints and appeals; local government unit training in the region; appraiser 
and assessor concerns in general; and other matters as may be determined by the 
Committee. 
ARTICLE III 
VALUATIONIAPPRAISAL OF REAL PROPERTIES 
Chapter 1 
Valuation Standards and Market Values 
SECTION 12. Development of Valuation Standards. -
Notwithstanding the 
provisions of existing laws to the contrary, the BLGF, shall develop, adopt, maintain and 
implement uniform valuation standards which shall be used by all appraisers and 
assessors in the local government units and other concerned parties in appraising or 
valuing lands, buildings, machinery and other real properties for taxation and other 
purposes. The valuation standards shall conform with generally accepted international 
valuation standards and principles. 
SECTION 13. Valuation/Appraisal of Real Property. - For valuation purposes, 
all real properties, whether taxable or exempt, shall be valued or appraised at the 
market value prevailing in the locality where the property is situated, in conformity with 
the valuation standards adopted under this Act. The BLGF shall promulgate the rules 
and regulations for the valuation/appraisal of real property pursuant to the provisions of 
this Act. It shall provide leadership in ensuring rationalized valuation of real properties 
transcending political boundaries. 
For real properties intended for low-cost or socialized housing and other 
programs of the government imbued with social policy objectives, the provisions of 
existing pertinent laws shall be applied after the determination of the prevailing market 
value of these properties in accordance with internationally accepted valuation 
standards adopted under this Act. 


SECTION 14. Preparation of Schedule of Market Values. -
Provincial 
assessors together with municipal assessors, and city assessors, including the 
municipal assessor in Metro Manila, shall prepare the SMVs for the different classes of 
real property situated within their respective local government units, pursuant to the 
valuation standards, rules, regulations and other specifications set by the DOF and the 
BLGF. The said SMVs shall be submitted by the assessor concerned, copy furnished 
the provincial governor or the city mayor, as the case may be, and the concerned 
Sanggunian, to the BLGF Regional Office for review and compliance with other 
requirements not later than the thirty-first (31 st) day of October of the immediately 
preceding calendar year the general revision of real property assessments shall be 
undertaken. The said SMVs shall be reviewed by the BLGF Regional Office within thirty 
(30) days upon receipt thereof, and shall then be submitted by the same to the BLGF 
Central Office. Upon the recommendation of the BLGF Executive Director, the 
Secretary of Finance shall approve the SMV within sixty (60) days from receipt of the 
same; otherwise, said schedule shall be deemed approved. 
The approved SMV shall be transmitted to the concerned assessor who shall 
confer with the local chief executive regarding the said approved SMV. Likewise, the 
concerned assessor shall submit to the local chief executive a tax impact report of the 
new SMV as against the existing assessment levels and tax rates, and shall provide the 
Sanggunian, through the Chairman of the Committee on Ways and Means, a copy of 
such report. The local chief executive shall transmit the approved SMV together with the 
tax impact report within fifteen (15) days from receipt of the same to the Sanggunian for 
the enactment of an Ordinance setting the appropriate assessment levels and tax rates. 
The concerned Sanggunian shall enact such Ordinance, upon conduct of public 
hearings and proper consultation, within sixty (60) days from receipt thereof; otherwise, 
the existing Ordinance on assessment levels and tax rates shall remain in force and 
effect. 
Upon the enactment by the Sanggunian of an Ordinance for the assessment 
levels and tax rates, the local chief executive shall act within ten (10) days, in the case 
of cities, and the municipality in Metro Manila, or within fifteen (15) days, in the case of 
provinces, to approve the same. Failure of the concerned local chief executive to act on 
the Ordinance within the prescribed period shall render the same approved. 
The approved Ordinance together with the SMV shall be published by the 
concerned local government unit in a newspaper of local circulation once a week for two 
consecutive weeks: Provided, however, That in provinces, cities and municipalities 
where there are no newspapers of local circulation, the same shall be posted in the 
provincial capitol, city or municipal hall and in two (2) other conspicuous public places 
therein. A list of LGUs whose SMVs have been approved shall be posted in the BLGF 
official website. 
seCTION 15. Use of Schedule of Market Values. - The SMV, as approved by 
the Secretary of Finance, shall be used for the general revision of real property 
assessments as basis for the determination of real property related taxes imposed by 
the national and local government units, and as benchmark for real property appraisal 
for other purposes. In computing any internal revenue tax, the BIR Commissioner shall 
adopt the SMV or the actual price in consideration, as stated in real property transaction 
documents, whichever is higher. 


Notwithstanding the provisions of existing laws to the contrary, the SMV shall 
cease as basis for the determination of national and local real property related taxes 
after five (5) years from the effectivity of its enacting Ordinance. 
SECTION 16. Revision of Schedule of Market Values. - The BLGF shall 
formulate the progr-am for the regular revision of SMVs. All provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, shall undertake a revision of their respective SMVs within two 
(2) years from the effectivity of this Act. Thereafter, they shall undertake a general 
revision of SMVs and property assessments not earlier than three (3) years from the 
date of last revision, but not later than five (5) years. 
In case of any significant change in the market where the property is located after 
the said SMVs have been approved and prior to its next revision, or where correction of 
errors and inequalities in any SMV is deemed necessary, the provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, may recommend to the BLGF Executive Director revisions to 
their existing SMV. Such revision/s shall be subject to review by the concerned BLGF 
Regional Office and recommendation by the BLGF Executive Director for approval by 
the Secretary of Finance within ninety days (90) from the date of receipt thereof. 
SECTION 17. Conduct of Capacity Building Interventions. - For the effective 
implementation of this Act, the BLGF shall develop and conduct the necessary trainings 
for all local assessors and other local officials/staff on the preparation of SMV in 
accordance with internationally accepted valuation standards, concepts, principles and 
practices; conduct of SMV impact studies; preparation of compliance reports, and other 
subject areas to ensure the effective implementation of this Act. 
Chapter 2 
Development and Maintenance of Real Property Database 
SECTION 18. Development of Real Properly Database. - The BLGF shall 
develop and maintain an up-to-date electronic database of the sale, exchange, lease, 
mortgage, donation and all other real property transactions in the country and on the 
cost of construction or renovation of buildings and other structures, and on prices of 
machinery. For this purpose, the BLGF is hereby authorized to require the mandatory 
submission of necessary documents from the concerned officials or employees of 
national government offices or instrumentalities, local government units, and the private 
sector. The updated database shall be made available to the local government units, 
national government agencies, and the private sector. 
SECTION 19. Duty of Register of Deeds to Supply Assessors of Real 
Properly Transactions Data. - The Register of Deeds shall prepare and submit to the 
provincial and city assessors, including the municipal assessor in Metro Manila, an 
abstract of his/her registry every three (3) months and copies of all contracts selling, 
transferring or otherwise converting, leasing, or mortgaging real property registered by 
him/her every end of the month. The abstract shall include brief but sufficient description 
of the real properties entered therein, their present owners, and the dates of their most 
recent transfer or alienation accompanied by copies of corresponding deeds of sale, 
donation, or partition or other forms of alienation. 


SECTION 20. Duty of Official Issuing Building Permits or Certificates of 
Registration of Machinery to Transmit Copy to the Assessor. - Any public official or 
employee who may now or hereafter be required by law or regulation to issue to any 
person a permit for the construction, addition, repair, or renovation of a building, or 
permanent improvement on land, or a certificate of registration for any machinery, 
including machines, mechanical contrivances, and apparatus attached or affixed on 
land or to another real property, shall transmit a copy of such permit or certification 
within thirty (30) days of its issuance, to the assessor of the province, city or municipality 
where the property is situated. 
SECTION 21. Duty of Geodetic Engineers to Furnish Copy of Plans to 
Assessor. - It shall be the duty of all geodetic engineers, public or private, to furnish 
free of charge, the assessor of the province, city or municipality where the land is 
located, a copy of the blue or white print of each of all approved original subdivision 
plans or maps of surveys, duly signed by a Senior Geodetic Engineer, executed by 
them every end of the month from receipt of such approved plans from the Land 
Management Bureau (LMB), the Land Registration Authority (LRA), or the Housing and 
Land Use Regulatory Board (HLURB), as the case may be. 
SECTION 22. Duty of Assessors to Transmit Documents to the BLGF. - It 
shall be the duty of the assessors to transmit to the concerned BLGF Regional Office all 
real property transactions data from the Register of Deeds, official issuing building 
permit and geodetic engineers within one (1) month after the receipt of such data. The 
BLGF's Regional Office shall record, process and make a summary report of the real 
property data, and submit the same to the BLGF Central office within one (1) month 
from receipt of such data. 
Chapter 3 
Appointment and Qualifications of Assessors 
SECTION 23. Appointment of Assessors. - Notwithstanding the provisions of 
existing laws to the contrary, appointments of provincial, city, and municipal assessors 
and assistant assessors shall be in accordance with the following guidelines: 
(a) In the case of provincial and assistant provincial assessors and city and 
assistant city assessors, appointee shall be chosen from the list of at least 
three (3) ranking eligible recommendees, as endorsed by the DOF Secretary, 
suitable and qualified for appointment within the region; 
(b) In the case of municipal and assistant municipal assessors, appointee shall 
be chosen from the list of at least three (3) ranking eligible recommendees 
suitable and qualified for appointment within the province, as endorsed by the 
DOF Secretary; and 
(c) In the case of city and assistant city assessors and municipal and assistant 
municipal assessors for Metro Manila, appointee shall be chosen from the list 
of at least three (3) ranking eligible recommendees, as endorsed by the DOF 
Secretary, suitable and qualified for appointment within the Metro Manila. 
The assessors shall be under the technical supervision of the BLGF, primarily 
through a system of compliance reporting and provision for education and training for 
capacity building. 


SECTION 24. Qualifications of Local Government Assessors. - No person 
shall be appointed assessor or assistant assessor unless such person is a citizen of the 
Philippines, a resident of the region for a provincial or city assessor/assistant assessor 
and of the province for a municipal assessor/assistant assessor, a registered and 
licensed appraiser, of good moral character, and must have an experience in real 
property valuation or assessment work or in any suitable field for at least five (5) years 
in the case of the provincial or city assessor, and three (3) years in the case of the 
municipal assessor. 
ARTICLE IV 
PENAL PROVISIONS 
SECTION 25. Failure to Comply with the Required Submission of 
Documents. - Any government official or employee who fails without justifiable reason 
to provide or furnish data or information required pursuant to Sections 19, 20, 21, and 
22 of this Act shall be punished by a fine equivalent to the official's or employee's six (6) 
months basic salary or suspension from the service for a period not exceeding one (1) 
year, or both, at the discretion of the competent authority. 
SECTION 26. Failure to Comply with the Valuation Standards. - An assessor 
who, for unjustifiable reasons, fails to comply with the valuation standards developed 
and adopted pursuant to this Act, or deliberately concealed any deviations or departures 
from such standards in the valuation/appraisal of real property, shall be punished by a 
fine equivalent to the official's or employee's salary for a period of one (1) month to six 
(6) months basic salary, and suspension from the government service at the discretion 
of the competent authority. 
SECTION 27. Failure to Prepare Schedule of Market Values. - An assessor 
who, for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the 
SMVs within the period set forth in this Act shall be meted with a fine equivalent to the 
official'S or employee's for a period of one (1) month to six (6) months basic salary, or 
by suspension from government service for not more than one (1) year, or both, at the 
discretion of the competent authority. 
SECTION 28. Violations of Other Provisions. - Any person, whether natural or 
juridical, who violates any proviSion of this Act other than those punishable under 
Sections 25, 26, and 27 hereof shall, when warranted, be dealt with under applicable 
existing laws. 
SECTION 29. Taxpayers' Remedies in Case of Erroneous Assessments of 
Real Properties. -
The provisions of Sections 226 (Local Board of Assessment 
Appeals) and 229 (Action by the Local Board of Assessment Appeals) of Republic Act 
No. 7160, otherwise known as The Local Government Code of 1991 shall apply in all 
cases of appeals as remedies for the taxpayers in the assessment of their properties. 


• 
ARTICLE V 
TRANSITORY PROVISIONS 
SECTION 30. Transitory Guidelines. - (a) Local government units which are in 
the process of revising their SMVs, upon the effectivity of this Act, shall continue with 
such revisions in accordance with Section 16 of this Act: Provided, That proper 
notification and coordination with the BLGF shall be undertaken. 
(b) In case the SMV is not yet available or revised, the BIR Commissioner shall 
adopt the existing SMV, zonal values or the actual price in consideration as stated in 
real property transaction documents, whichever is higher, for purposes of computing 
any internal revenue tax. 
SECTION 31. Saving Clause. - The zonal values as determined by the BIR and 
approved by the Secretary of Finance for internal revenue tax purposes and the SMVs 
prepared by the provincial assessors together with the municipal assessors, and city 
assessors, including the municipal assessors in Metro Manila, that have been approved 
by their respective Sanggunians for real property taxation purposes shall continue to be 
in force and effect until repealed, superseded, modified, revised, set aside, or replaced 
by the values provided under the new SMVs as approved in accordance with Section 16 
of this Act, which shall be within two (2) years upon the effectivity of this Act. 
ARTICLE VI 
FUNDING REQUIREMENTS 
SECTION 32. Budgetary Requirements for Revision of Schedule of Market 
Values. - Each local Sanggunian shall appropriate the necessary funds from locally 
generated revenues, the Internal Revenue Allotment (IRA), or such other sources every 
fiscal year. The accumulated amount so appropriated shall be known as the Real 
Property Tax Administration Fund (RPTAF) which shall be used for the proper 
implementation of the regular revision of the SMVs and general revision of real property 
assessments, and the administration of real property taxes in all local government units. 
SECTION 33. 
Appropriations. -
The amount necessary for the initial 
implementation of this Act shall be charged against the current appropriations of the 
BLGF. Thereafter, such sum for the continuing 
operations and the proper 
implementation of this Act shall be included in the annual General Appropriations Act. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SECTION 34. Implementing Rules and Regulations (IRR). - Within six (6) 
months after the effectivity of this Act, the DOF, in consultation with concerned parties, 
shall issue the IRR for the effective implementation of this Act. 


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SECTION 35. 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. 
SECTION 36. Repealing Clause. -
(a) Section 6(e) and Section 88(b) of 
Republic Act No. 8424, otherwise known as the National Internal Revenue Code 
(NIRC), as amended, and Sections 19, 135(a), 138, 198(a), 199(g)(h)(I), 201, 202, 
209(a), 212, 214, 218 par. 1 (b), 219, 220, 224(a), 443(d), 444(b)(I)(v), 454(d), 
455(b)(1)(v), 463(d), 465(b)(I)(v), 472(a) par 1, 472(b)(8), and 473(a) par 1 of Republic 
Act No. 7160, otherwise known as the Local Government Code (LGC) of the 
Philippines, are hereby repealed; 
(b) 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. 
SECTION 37. Separability Clause. - Any portion or provision of this Act that 
may be declared unconstitutional or invalid shall not have the effect of nullifying other 
portions or provisions hereof, as long as such remaining portions or provisions can still 
subsist and be given effect in their entirety, 
SECTION 38. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,