Republic of the Philippines fo c€4 UL 2013 %)
HOUSE OF REPRESENTATIVES Ke Py
Quezon City, Metro Manila

H CONGRESS
t Regular Session

HOUSE BILL NO._ 1797

Introduced by HONORABLE LANI MERCADO-REVILLA

EXPLANATORY NOTE

One of the main issues contributing to the inefficiency of the Philippine real estate market
is the current valuation system. This, in turn, has tremendously constrained the optimal
management and use of our valued land resources.

This bill seeks to address the following concems in order to improve the state of our
valuation system:

© Lack of a uniform valuation standards which should govern the valuation
of real property in the country:

‘* Lack ofa single real property valuation base for the assessment of all real
property related taxes in the country and for valuing or appraising real
property for various transactions by all government agencies;

© Mixed functions of valuing or appraising of real properties from the land
tax policy and administering the taxes due thereon;

‘© Lack of a comprehensive and up-to-date electronic database of all real
property transactions.

‘These concerns, among other things, are desired to be addressed by this proposed legislation.
Ultimately, this bill seeks to support the development and professionalization of the
valuation/appraisal practice in the country pursuant to Republic Act No. 9646; 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 making it
abreast with global developments; and ensure transparency in real property transactions to
protect consumers and develop confidence in the work of appraisers and assessors.

In view of the foregoing, passage of this bill is earnestly sought.

Eo a sarees

2" District, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__1797

Introduced by HONORABLE LANI MERCADO-REVILLA

AN ACT
INSTITUTING REFORMS IN REAL PROPERTY VALUATION IN THE
PHILIPPINES, ESTABLISHING THE NATIONAL VALUATION AUTHORITY
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SEC. 1. Short Title. - This Act shall be known as the The Real Property Valuation
Reform Act Of 2013.

ARTICLE I
DECLARATION OF POLICY AND OBJECTIVES,
AND DEFINITION OF TERMS

SEC. 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) Establish and maintain valuation standards to govern the
valuation of real property in the country:

(b) Adopt market value as the single real property valuation base
for the assessment of all real property related taxes in the
country and for valuing or appraising real property for various
transactions by all government agencies:

(©) Separate the function of valuing or appraising of real properties
from the functions of tax policy and administering the taxes

due thereon;


(@ Support the development and professionalization of the
valuation/appraisal practice in the country pursuant to Republic
Act No. 9646;

(e) Provide a comprehensive and up-to-date electronic database of
all real property transactions;

() 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 making it abreast with global
developments; and

(g) Ensure transparency in real property transactions to protect
consumers and develop confidence in the work of appraisers

and assessors.

SEC. 3. Definition of Terms. - As used, in this Act, the following terms mean:

(a) Appraiser - also known as valuer; refers to a person who

conducts valuation/appraisal; specifically, one who possesses

the necessary qualifications, ability, and experience to execute

or direct the valuation/appraisal of real.

(b) Assessor - refers to an official in the local government unit,
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.

(©) Building - refers to a man-made structure permanently attached
to land for residential, commercial, industrial, recreational or

‘other purposes.

(A) Improvements - is 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.

(c) 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.

(8) 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.

() 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) 3 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.

(j) 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 or 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.


() 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
concem. 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

ematic and analytic

determination and recording of property fi

. circumstance:
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 IL
NATIONAL VALUATION AUTHORITY AND THE REGIONAL
OFFICES

Chapter 1
Establishing a National Valuation Authority

SEC. 4, Establishment of a National Valuation Authority. - To achieve the policy and
objectives declared in this Act, there shall be established a National Valuation Authority (NVA),
hereinafter referred to as the Authority, which shall be the primary agency of the government on
matters concerning the valuation or appraisal of real properties in the Philippines. The Property
Valuation Staff (PVS) established within the Department of Finance (DOF) shall serve as the
nucleus of the Authority. The Authority shall be attached to the DOF and shall have its central
office in Metro Manila.

SEC. 5. Powers and Functions of the Authority. - The Authority 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 national


government agencies local government units, and other
concerned parties:

(b) Review and approve the Schedule of Market Values (SMVs)
prepared by the provincial assessors together with municipal
assessors, and city assessors, including the municipal assessor
‘of Metro Manila, for tax and other purposes:

(©) 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;

(@) Provide leadership and policy directions to local government
units, national government agencies, private sector institutions
and individuals dealing with 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;

(©) Maintain a roster of government appraisers and assessors;

(£) 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 base 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.

SEC. 6. Head of Authority. - The Authority shall be headed by a Director General who
shall be appointed by the President of the Philippines upon the recommendation of the Secretary
of Finance. The Director General must be a Filipino citizen, of good moral character, a graduate
in engineering, accounting or appraisal related degrees. and a licensed appraiser. or assessor,

with at least ten (10) years experience in valuation/appraisal or assessment of real properties. The

Director General shall have the salary grade equivalent to the rank of an Assistant Secretary
under the Salary Standardization Law.


SEC. 7. Responsi

ies of the Director General. - The Director General shall be
responsible for the efficient and effective performance of the statutory responsibilities of the
Authority set forth in this Act and for the overall internal management and governance of the

Authority. For this purpose, the Director General shall:

(a) Develop and implement policies, plans, programs, and
operating standards for the attainment of the objectives and
mandate of the Authority;

(

g

Provide policy direction and leadership in all aspects of
valuation/appraisal and their implementation in the regional
offices:

(©) Advise and assist the Secretary of Finance and other
government agencies on matters pertaining to real property
valuation/appraisal:

(d) Exercise administrative supervision over the central and
regional offices, and provide technical assistance over the local
government assessors; and

(€) Perform such other functions as may be provided by law. or

required in pursuance of the law or the demand of the statutory

responsibilities of the Authority.

SEC. 8 Creation of an Advisory Board, - (a) There shall be created an Advisory Board,

hereinafter referred to as the Board, composed of a representative each from the:

1) Department of Finance (DOF);
2) Bureau of Local Government Finance (BLGF);
5)
4) Department of E
5) Bangko Sentral ng Pilipinas (BSP);
6
a
8

9) The Director General as an ex officio member.

Bureau of Internal Revenue (BIR);

vironment and Natural Resources (DENR);

National organization of government assessors;

Private appraisal sector;

Union of Local Authorities of the Philippines (ULAP); and

(b) The member-representatives from the DOF, BLGF, BIR, and DENR shall be
appointed by the President of the Philippines from the nominees of the respective
Department Secretaries from officials performing valuation-related functions

whereas the member-representative from the BSP shall be appointed by the


Bangko Sentral Governor. The representatives from the national organization of
government assessors, the private sector, and ULAP shall be appointed by the
President from the nominees of the national government assessors, private

appraisers’ organizations, and ULAP, respectively.

(©) The President of the Philippines shall appoint the Chairman from among the
government member-representatives of the Board. The Authority shall provide the

secretariat and other support services to the Board.

(d) The members of the Board shall 'serve for a maximum of three (3) years. In
case of vacancy in the Board, the person so appointed or designated shall serve
only for the unexpired term. They 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 Board shall meet at the initiation of the Chairman or any Board Member
at least once every three (3) months. It shall have as many special meetings as it
may deem necessary for the performance of its functions and may require the
presence of representatives from concerned agencies whenever necessary. The
Board shall also formulate and adopt its internal rules and regulations for the
conduct of its meetings.

SEC. 9. Functions of the Advisory Board. - The Board shall advise the Director General
on matters pertaining to valuation/appraisal and shall have the recommendatory power on the
following:
(a) Adoption of the valuation standards; and
(b) Setting, maintenance, and compliance monitoring of the
valuation standards prepared and developed pursuant to

Section 14 of this Act.

Chapter 2
Organization of the Autho

's Regional Offices

SEC. 10. Establishment of Regional Offices. - There shall be established in every
administrative region of the country a Regional Office of the Authority, headed by a Regional
Director who shall be appointed by the Secretary of Finance upon the recommendation of the
Director General. The Regional Director must be a Filipino citizen, of good moral character, a

graduate in engineering, accounting or appraisal related degrees, a licensed appraiser, or


assessor, with at least five (5) years of experience in valuation/appraisal or assessment of real
property. The Regional Director shall have a salary grade equivalent to Director IIT under the

Salary Standardization Law.

‘The Regional Directors collectively shall serve as a corps of officers that constitute the
next in rank to the Director General and designation to the Director General's office may be
made from their ranks.

‘There shall be a phased implementation of the Regional Offices.

SEC. 11. Functions of the Regional Offices. - The Regional Offices, under the Regional
Director, shall have the responsibility for all issues relating to valuation/appraisal and SMVs in

the region, such as:

(a) Implement laws, policies, plans, programs, rules and

regulations of the Authority in the Region;

(b) Review and recommend the approval of the proposed SMVs
prepared by the provincial assessors together with the
municipal assessors, and city assessors, including the

municipal assessor of Metro Manila, for tax and other

purposes;

(c) Provide economical, efficient, and effective service relating to
the Authority's mandate to all government agencies and other
concerned parties within the region;

() Coordinate with regional offices of other government
departments, bureaus, and agencies within the region dealing
with real property valuation/appraisal:

(e) Provide leadership and direction in the area of real property
valuation/appraisal to local government units in the region;
(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 Director

General.


SEC. 12. The Regional Consultative Committee. - (a) There shall be created in every
administrative region a Regional Consultative Committee, hereinafter referred to as the

Committee, composed of a representative each from:

1) Bureau of Local Government Finance - Regional Office;

2) Bureau of Internal Revenue - Regional Office;

3) Department of Environment and Natural Resources -Regional Office;
4) Regional organization of government assessors;

5) Private appraisal sector within the region; and

6) Regional banking association.

(b) The members of the Regional Consultative Committee shall elect the
Chairman from among themselves.

(©) The members of the Regional Consultative Committee must be performing
valuation/appraisal related functions, and shall be appointed by the Regional
Director of the agency concerned, while the representative from the
organization of government assessors, private appraisal sector, and banking
association within the region shall be appointed by the head of their respective
organization.

(@) The members shall serve for a maximum of three (3) years, otherwise
shortened or terminated by the appointing authority. In case of vacancy in the
Committee, the person so appointed or designated shall serve only for the

Committee shall not

unexpired term. The chairperson and members of the
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 on the initiation of the Regional Director or any of
the Board Members at least once every three (3) months. It shall have as many
special meetings as it may deem necessary for the performance of its
functions. The Committee shall also formulate and adopt its internal rules and

regulations for the conduct of its meetings.

SEC. 13. Functions of the Committee. - The Committee shall serve as a consultation
forum in the region for discussion on property market reports: 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 HI
VALUATION/APPRAISAL OF REAL PROPERTIES,

Chapter 1
Valuation Standards and Market Values

SEC. 14. Development of Valuation Standards. - Notwithstanding the provisions of
existing laws to the contrary, the Authority shall develop, adopt, maintain and implement
uniform valuation standards which shall be used by all appraisers and assessors of national and
local government agencies and its instrumentalities, and other concemed parties in appraising or
valuing lands, buildings, machinery and other real properties for taxation and other purposes.
The valuation standards must conform with the generally accepted valuation principles and

internationally accepted standards.

SEC. 15. Valuation/Appraisal of Real Property. - For valuation purposes, all real

property, whether taxable or exempt, shall be valued or appraised at the market value prevailing

in the locality where the property

situated, in conformity with the valuation standards adopted
under this Act. The Authority shall promulgate the rules and regulations for the classification and
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.

SEC. 16. 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 and specifications set by the
Authority. The said SMVs shall be submitted by the assessor concerned, upon proper
information to the local chief executive and the Sanggunian, to the Authority's Regional Office
for review and compliance with other requirements. The said SMVs shall then be submitted to
the Authority's Central Office for approval within sixty (60) days from receipt thereof. The
Authority shall review and approve the SMV within thirty (30) days upon receipt of the same;
otherwise, said schedule shall be deemed approved.

The Authority shall transmit the approved SMV 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 revenue 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 revenue impact report within
fifteen (15) days from receipt of the same to the Sangeunian for the enactment of an Ordinance
setting the 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

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 within the prescribed period to act on the

Ordinance 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. The Authority shall also

publish the approved SMV on its official website.

SEC. 17. Use of Schedule of Market Values. - The SMV as approved by the Authority
shall be used for the general revision of real property values and as basis for the determination of

real property related taxes imposed by the national and local governments. For purposes of

‘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.

SEC. 18. Revision of Schedule of Market Values. - The Authority shall formulate the
program for the regular revision of SMYs. 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 establishment of the Authority.
Thereafter, they shall undertake a revision of SMVs 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 afier the said

SMV has been approved and prior to its next revision, the provincial assessors together with the


municipal assessors, and city assessors, including the municipal assessor in Metro Manila, may

recommend to the Authority revisions to their existing SMV.

SEC. 19, Conduct of Training and Seminars. - For the effective implementation of this
Act, the Authority shall conduct the necessary trainings and seminars 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, income projections based on property

taxes and other tax administration matters.

Chapter 2
Development and Maintenance of

Real Property Database

SEC. 20. Development of Real Property Database. - The Authority 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 Authority is
hereby authorized to require the mandatory submission of necessary documents from the
concemed 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

Jocal government units, national government agencies, and the private sector as well

SEC. 21. Duty of Register of Deeds to Supply Assessors of Real Property Transactions
Data. - The Register of Deeds shall prepare and submit to the provincial and city assessors,

including the muni

al assessor in Metro Manila, an abstract of his registry every three (3)
months and copies of all contracts selling, transferring or otherwise converting, leasing, or
mortgaging real property registered by hinvher 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.

SEC. 22. 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.

SEC. 23. 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 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.

It shall be the

duty of the assessors to transmit all real property transactions data from the Register of Deeds,

SEC. 24. Duty of Assessors to Transmit Documents to the Authorit

official issuing building permit and geodetic engineers to the Regional Office of the Authority
within one (1) month after the receipt of such data. The Authority's Regional Office shall record,
process and make a summary report of the real property data, and submit the same to the Central

office within one (1) month from receipt of such data.

Chapter 3

Appointment and Qualifications of Assessors

SEC. 25. Appointment of Assessors. - The Secretary of Finance shall appoint provincial,
city, and municipal assessors, upon recommendation of the local chief executive, subject to civil

service law, rules and regulations, and 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 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; 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 suitable and qualified for
appointment within the Metro Manila.

The assessors shall be under the adminis

rative supervision of the concerned local
government unit and under the technical assistance of the Authority, primarily through a system

of compliance reporting and provision for education and training for capacity building.

SEC. 26. 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 licensed appraiser, of good moral character, a graduate in
engineering, accounting, commerce or appraisal related degree, 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,
pursuant to the provisions of Republic Act No. 9646, otherwise known as the Real Estate Service

Act.

In accordance with Section 30 of Republic Act No. 9646, within three years from the
effectivity of this Act all existing and new positions in the national and local and local
governments, whether career, permanent, temporary or contractual, and primarily requiring the
services of any real estate service practitioner, shall be filled only by registered and licensed real

estate service practitioners.

All incumbent assessors/assistant assessors holding permanent appointments shall
continue to perform their functions without need for reappointment and without diminution of
status, rank and salary grade, and shall enjoy security of tenure. However, they may not be
promoted to a higher position until they meet the qualification requirements of that higher
position as herein prescribed. Nothing in this Act shall be construed to reduce any benefit,
interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The
appointing authority shall exercise his power to appoint the assessor in accordance with the

provisions of Republic Act No. 9646 only when a vacancy occurs

ARTICLE IV
PENAL PROVISIONS

SEC. 27. Failure to Comply with the Required Submission of Documents. - Any
government official or employee who fails without justifiable reason or reasons to provide or

furnish data or information required by the Authority pursuant to Sections 21. 22. 23 and 24 of


this Act shall be punished by a maximum fine equivalent to the official's or employee’

six (6)
months basic salary or suspension from service for a period not exceeding one (1) year, or both,

at the discretion of the competent authority.

SEC. 28. Failure to Comply with the Valuation Standards, - An assessor ot appraiser
who for unjustifiable reasons, fails to comply with the valuation standards prepared and adopted

pursuant to this Act, or deliberately concealed any deviations or departures from such standards,

shall be punished by a maximum fine equivalent to the official's or employee's six (6) months

basic salary, and suspension from the government service or from the practi jon for a
period not exceeding one (1) year, or permanent revocation of his/her license at the discretion of

the competent authority.

SEC. 29. Failure to Prepare Schedule of Market Values. - An assessor who, for
unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMV within the
period required by the Authority shall be punished, upon conviction, by a maximum fine
equivalent to the official's or employee's 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.

SEC. 30. Violations of Other Provisions. - Any person, whether natural or juridical, who
violates any provision of this Act other than those punishable under Sections 27. 28, and 29

hereof shall. when warranted, be dealt with under applicable existing laws.

SEC. 31. Taxpayers’ Remedies in Case of Wrong Assessment 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. 7661, 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

SEC. 32. Transitory Guidelines. - Within ninety (90) days upon the effectivity of this
Act. the Authority's Central Office shall be organized. The President of the Philippines shall
appoint the Director General upon the recommendation of the Secretary of the Department of

Finance.


(a) The Director General shall organize the Board pursuant to
Section 8 of this Act within thirty (30) days upon the
organization of the Authority.

(b) An Ad Hoc Committee is hereby created which shall be
responsible for the formulation of the Authority's Organization,
Staffing, and Implementation Plan, including the selection and
placement of personnel, taking into consideration the
organizational criteria such as, but not limited to, availability
of qualified personnel, facilities, budgetary support and others.
‘The Ad Hoc Committee shall also be responsible for drafting
the Implementing Rules and Regulations (IRR) for this Act.

The Ad Hoc Committee shall be composed of the Director
General as ex-officio chairperson and representatives from the
DOF, SLGF, SIR, National Tax Research Center (NTRC), and
Land Administration and Management Project (LAMP), as
members.

(c) After the organization of the Authority's Central Office, the
‘Authority's Regional Offices shall be organized.

(d) All existing staff of the Property Valuation Staff (PVS) in the
Department of Finance, records, equipment and appropriations
provided for the PVS, as determined by the Ad Hoc Committee
based on the approved organization and staffing, shall be
transferred to the Authority.

(e) Local government units who 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 Authority
shall be undertaken: Provided, finally, ‘That the newly
approved SMYs shall be in force and effect for a period of two
(2) years.

( In case the SMV is not yet available or revised, the BIR
Commissioner shall adopt the existing SMV or the actual price
in consideration as stated in real property transaction
documents, whichever is higher. for purposes of computing

any internal revenue tax.

SEC. 33. Saving Clause. - The zonal: values as determined by the SIR 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 of the 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

SEC. 34. Budgetary Requirements for Revision of Schedule of Market Values. - To
ensure the proper implementation of the regular revisions of the SMVs and the administration of
real property taxes in all local government units. each local Sanggunian shall appropriate the
necessary funds equivalent to ten percent (/0%) of the one percent (1%) from the original
allocation of the Special Education Fund (SEF). The amount so appropriated shall be known as
the Real Property Tax Administration Fund (RPTAF).

The proceeds from the share of the local government unit in the SEF shall automatically

accrue to the RPTAF to be maintained in every provincial. city or municipal treasury offices.

SEC. 35. Appropriations. - The amount necessary for the initial implementation of this
‘Act shall be charged against the current appropriations of the Property Valuation Staff within the
Department of Finance. Thereafter. such sum as may be necessary for the Authority's continuing
operations and the proper implementation of this Act shall be included in the annual General

Appropriations Act.

ARTICLE VIL
MISCELLANEOUS PROVISIONS

SEC. 36. Implementing Rules and Regulations (IRR). - The Secretary of Finance,
taking into account the recommendation of the Ad Hoc Committee created under this Act and in
consultation with other concerned parties. shall issue the IRR for the effective implementation of

this Act.

SEC. 37. 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.

(a)

(b)

(©)

SEC.

SEC.

publication in the Official Gazette or in at least two (2) newspapers of general circulation.

38. Repealing Clause. —

Section 6(E) of Republic Act No. 8424. otherwise known as the National Internal
Revenue Code (NIRC). as amended, and Section 199(1) of Republic Act No.
7160, otherwise known as the Local Government Code (LGC) of the
Philippines, are hereby repealed;

Sections 199(e), 199(m), 199 (0), 201,202.203, 209(a), 212, 214, 217, 219, 220.
224, 225, 443(d), 444(b)(1M(w). 454 (d), 455(b\ INV), 463 (A), 465(b)(1)(V),
472, and 473 of the LGC, and Section 88(S) of the NIRC are hereby modified
accordingly:

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.

39. 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

40. Effectivity. - This Act shall take effect fifteen (15) days after its complete

Approved,