Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
EXPLANATORY NOTE 
The Philippine government is relentless in its quest towards tapping all possible 
revenue resources to address the challenges in attaining good and responsive 
governance and effective public service delivery that every Filipino deserves. 
One of the most vaunted sources of revenues is real property, which is 
considered as the most important natural resource and the biggest financial asset, The 
World Bank reported that 50% to 75% of the country's wealth is contained in land. 
Ironically, the land market is contributing only 6% to the Gross National Product (GNP). 
Characterized by inconsistencies and inefficiencies in the land administration and 
management sector, specifically in real property valuation, our country has failed to 
capture and maximize the huge potential that the land sector offers. 
The real property valuation system in the Philippines depicts a depressing state 
of chaotic, inefficient, and inequitable layers of bureaucracy. At least 23 national 
government agencies (NGAs) and more than 1,700 local government units (LGUs) 
perform or require valuation functions and services using varied systems and 
methodologies for different purposes, thus resulting in multiple, confusing, unrealistic, 
or outdated values for the same property. The discrepancies in real property values 
have had considerable cost to the government. Conflicting land values resulted to 
right-of-way compensation problems, lengthy court litigations arising from valuation 
disputes, project delays and unrealized revenues and socio-economic benefits. The 
system has also caused huge disparities of taxable base for local and national 
taxation, and revenue leakages due to the absence of single market-based valuation 
for capital gains tax and other national land related taxes, while the LGUs use the 
Schedule of Market Values (SMV) as basis for real property tax. 
The existing challenges in the land and real property valuation sector have also 
meant the public's lack of confidence in real property values. Instances of 
overvaluation and undervaluation, depending on the purpose of transaction, have 
proliferated, thus derailing the potential of the real property sector in taking a leap 
towards contributing to the country's economic development. 
The problems in real property valuation may be traced to the failure of LGUs to 
correctly update the SMVs. While the Local Government Code (LGC) requires the 
regular conduct of the general revision of SMVs and property assessments every three 
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3:46 pm
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years, LGUs have failed to comply with the requirements of the law for lack of penal 
sanctions in the law and for fear of political backlash arising from it. Expectedly, the 
resulting condition is a stagnant, outdated, and highly politicized real property 
valuation that is inconsistent with the realities of the market economy. SMVs have 
become generally undervalued and failed to reflect the real market conditions of the 
real property sector- causing huge foregone revenues of the LGUs. The BIR, on the 
other hand, has no statutory mandate for the regular revision and updating of the zonal 
values. Thus, this bill seeks to improve real property valuation for the government by 
adopting a market based SMV to be used as the basis of local and national real 
property taxation, and as the benchmark for other purposes as required by other 
government agencies and instrumentalities, as well as private entities. 
Governed by internationally accepted valuation standards and best practices, the 
LGU SMVs shall represent the real market conditions of their respective localities, with 
the aid of an effective national valuation database system. In light of Republic Act No. 
9646 or the Real Estate Service Act, which now professionalizes and regulates the 
appraisal/valuation practice, this bill also seeks to harness the professional 
competence of local government assessors and national government appraisers 
towards developing and establishing an efficient and responsive valuation system in 
the country. 
In order to implement the reforms, the Bureau of Local Government Finance 
(BLGF), under the Department of Finance, is proposed to be reorganized and 
strengthened to provide the institutional support and accountability to operationalize 
the reform agenda. The BLGF is envisioned to oversee all matters relating to real 
property valuation in the country, while taking the lead in reviewing the SMV of all 
LGUs for approval by the Secretary of Finance, and compliance monitoring for the 
regular SMV revision by LGUs. By doing so, the highly technical function of real 
property valuation is separated from the political function of taxation. Thus, local 
officials are insulated from the pressures and political backlash borne out of initiatives 
to correct and update their respective SMVs. 
The passage of this bill is earnestly sought as a timely and complementary 
measure to support the long-term revenue efforts of the governments, the bill will allow 
us to move toward a more rational administration and management system that fully 
taps the potential of the real property sector. In turn, the capacity of the government 
to generate more revenues is enhanced, without necessarily imposing new tax 
measures or increasing existing tax rates. Intended to be an instrument in enhancing 
local autonomy, the bill will enable LGUs to achieve a more stable fiscal wherewithal 
and a strengthened local real property tax base to fund service delivery requirements 
of the LGUs, thereby achieving good and transparent governance, and increased 
public performance. 
In view of the foregoing, approval of this bill is earnestly sought. 
RON P. SALO   
   KABAYAN Party List 


Page 3 of 17 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
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 “Real Property 
Valuation and Assessment Reform Act”.
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 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 real property related taxes in the country, and for the valuation of real 
property for various transactions by all government agencies; 
(c) Promote the fiscal autonomy of local government units (LGUs) to provide
basic services to their constituency by enhancing their capacity to generate local 
revenues from real property; 
(d) Separate the function of valuation of real properties from the functions of tax
policy formulation and the administration of the taxes due thereon; 
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(e) Support the development and professionalization of the valuation practice in 
the country pursuant to Republic Act No.  9646, otherwise known as the “Real Estate 
Service  Act of the Philippines”; 
 
(f) Provide a comprehensive and up-to-date electronic database of all real 
property transactions; 
 
(g) Support the development of an information database on valuation through 
continuing research and monitoring of new developments in the discipline to upgrade 
the country’s valuation system and be at par with global standards; and 
 
(h) Ensure transparency in real property transactions to protect public interest, 
and develop confidence in the valuation system. 
 
SEC. 3. Definition of Terms.  –  As used in this Act: 
 
(a) Appraiser also known as valuer, refers to a person who conducts valuation; 
specifically, one who possesses the necessary qualifications, license, ability, and 
experience to execute or direct the valuation of real property; 
 
(b) Assessed Value, also known as taxable value, refers to the market value of 
the property multiplied by the corresponding assessment level; 
 
(c) Assessment refers to the act or process of determining the value of a property, 
or proportion thereof subject to taxation, including the discovery, listing, classification, 
and appraisal of properties; 
 
(d) Assessment Level refers to the percentage applied to the market value to 
determine the taxable value of the property based on property classifications as 
prescribed in Republic Act No. 7160, otherwise known as the “Local Government Code 
of 1991”, as amended; 
 
(e) Assessor refers to the official or employee in the local government unit (LGU) 
who is a duly licensed appraiser, and performs appraisal and assessment of real 
properties, including plant, machinery, and equipment, for taxation and other 
purposes. This definition also includes assistant assessor; 
 
(f) Building refers to a man-made structure permanently attached to land for 
residential, commercial, industrial, recreational, or other purposes; 
 
(g) Improvement refers 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 intended to enhance its value, beauty, 
or utility, or to adapt it for new or further purposes; 
 
(h) Land refers to one of the major factors of production which is supplied by 
nature without the aid of man. Land may include not only the earth’s surface, both land 
and water, but also anything that is attached to the earth’s surface including all natural 
resources in their original state, such as mineral deposits, wildlife, and timber; 
 


 
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(i) Internationally accepted valuation standards shall refer to generally accepted 
standards for the valuation for all types of assets including real estate plant and 
equipment, intangible assets and businesses which shall include, but not limited to, 
the international valuation standards; 
 
(j) 
International valuation standards shall refer to standards for undertaking 
valuation assessments using generally recognized concepts and principles that 
promote transparency and consistency evaluation practice as determined by the 
International Valuation Standards Council. 
 
(k) Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances, or apparatus which may or 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; 
 
(l) Market Value refers to the estimated amount for which a property shall 
exchange on the date of valuation between a willing buyer and a willing seller in an 
arm’s length transaction which is a transaction between independent, unrelated parties 
involving no irregularity, after proper marketing, wherein the parties had each acted 
knowledgeably, prudently, and without compulsion; 
 
(m)Private appraisal sector refers to licensed nongovernmental  real  estate  
service  practitioners; 
 
(n) 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; 
 
(o) Real property refers to all the rights, interests and benefits related to the 
ownership of real estate. It is a legal concept distinct from real estate, which is a 
physical asset; 
 
(p) Schedule of Market Values, hereinafter referred to as SMV, refers to a table 
of base unit market values for all kinds of real property, except machinery within an 
LGU prepared by assessors pursuant to existing laws, rules and regulations; 
 
(q) Special purpose property refers to a property that 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 since its 
special design and function renders conversion to other types of development or 
application not economically feasible; and 
 
(r) Valuation, also known as appraisal, refers to the systematic, analytic and 
logical analysis of the recording of property facts, circumstances, investments and 


 
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other relevant data resulting in a supportable estimate or professional opinion of the 
value of the property as of a specific date and for a specific purpose. 
 
ARTICLE II 
THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF) 
 
CHAPTER 1 
BLGF CENTRAL OPERATIONS 
 
SEC. 4. Powers and Functions of the Bureau of Local Government Finance 
(BLGF).  –  The BLGF of the Department of Finance (DOF) shall lead and manage 
the implementation of the provisions of this Act. In addition to the powers vested upon 
it by Executive Order No. 292, otherwise known as the “Administrative Code of 1987”, 
it shall exercise the following additional powers and functions: 
 
(a) Develop, adopt, and maintain valuation standards consistent with 
internationally accepted valuation standards, regulations, and specifications for real 
property appraisal used for taxation and other purposes, and ensure compliance 
therewith by LGUs and other concerned parties; 
 
(b) In coordination with the Bureau of Internal Revenue, review and ensure that 
the Schedule of Market Values (SMVs) as prepared by the provincial assessors 
together with the municipal assessors, and the city assessors, including the lone 
municipal assessor in the Metropolitan Manila Area is compliant with real property 
valuation policies and standards, and recommend its approval to the Secretary of 
Finance for local and national taxation, and for other purposes; 
 
(c) Provide technical assistance on real property appraisal matters to 
government agencies and instrumentalities, and coordinate or conduct the valuation 
of special purpose property, when requested; 
 
(d) Provide leadership and policy direction to LGUs on real property valuation for 
taxation and other purposes, including the development and maintenance of 
internationally accepted valuation standards, the regulation of valuation activities and 
other related matters, and the promotion of valuation training and seminars; 
 
(e) Maintain a roster of licensed local government appraisers and assessors in 
consultation and coordination with the Professional Regulation Commission; 
 
(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 in valuation, and maintain information 
on current global and country trends and developments in real property valuation; 
 
(h) Formulate and provide for uniform procedure on the different transactions in 
the assessor’s office, including the transfer, annotation, and issuance of tax 
declarations; 
 


 
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(i) Determine, fix, and collect a reasonable amount to be charged as 
administration fees, fines, and penalties relative to the implementation of this Act; and 
 
(j) Perform such other functions as are necessary, proper, and incidental to 
implement the provisions of this Act. 
 
SEC. 5. Establishment of the Real Property Valuation Service. –  To achieve 
the policies and objectives declared in this Act, the Real Property Valuation Service, 
hereinafter referred to as the RPVS is hereby established within the BLGF and shall 
have counterpart personnel in the BLGF Regional Offices. 
 
SEC. 6. Supervisory Role of the BLGF Executive Director over the RPVS. –  
The BLGF Executive Director shall be responsible for the efficient and effective day-
to-day performance of the responsibilities set forth in this Act, and for the overall 
internal management and governance of the RPVS. 
 
SEC. 7. Creation of a Central Consultative Committee.   –  
(a) A Central Consultative Committee shall be created and shall serve as the 
consultative forum on matters pertaining to the setting and adoption of internationally 
accepted valuation standards and other related concerns on real property valuation; 
 
(b) It shall be chaired by the BLGF Executive Director and shall be 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; and 
(6) Private appraisal sector: 
 
Provided, That the representative from the private appraisal sector shall be active 
in the practice of real estate appraisal for at least five (5) years as certified by the 
Professional Regulatory Board of Real Estate Service (PRBRES). 
 
(c) The representatives of the BIR, DENR, and BSP must be performing 
valuation-related functions. The national organization of government assessors, and 
the private appraisal sector shall be represented by their respective heads of 
organizations or their duly qualified representatives; 
 
(d) The Chairperson and members of the Committee shall not receive additional 
salary for the performance of their functions. Members of the consultative committee 
who are not incumbent government officials or employees shall be entitled to 
honoraria, pursuant to existing laws and regulations; and 
 
(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. The Chairperson may invite 
resource persons on issues concerning real property valuation. 
 
CHAPTER 2 


 
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BLGF REGIONAL OPERATIONS 
 
SEC. 8. Role of the BLGF Regional Offices.  –  The BLGF Regional Offices, 
shall, through the Regional Director, be responsible for all matters relating to valuation 
and the supervision of the SMVs in the region. They shall: 
(a) Implement policies, plans, programs, rules and regulations on real property 
valuation of LGUs in the region; 
(b) Review, in coordination with the BIR, and endorse to the RPVS, the proposed 
SMVs prepared by the assessors of the LGUs in the region; 
(c) Provide for economical, efficient and effective valuation services in the region; 
(d) Coordinate and consult with other government departments, bureaus and 
agencies within the region dealing with real property valuation; 
(e) Adopt and maintain a comprehensive and up-to-date electronic database of 
all regional real property-related transactions, and have custody of all transaction 
records submitted by local government assessors; and 
(f) Perform other functions as may be assigned by the BLGF Executive Director. 
 
SEC. 9. The Regional Consultative Committee.   –  
(a) There shall be a Regional Consultative Committee that shall be chaired by 
the BLGF Regional Director and shall be composed of a representative from the: 
(1) BIR – Regional Office; 
(2) DENR – Regional Office; 
(3) Head of Regional organization of government assessors or its duly 
authorized representative; 
(4) Head of Regional organization of national government appraisers or its duly 
authorized representative; 
(5) Head of the private appraisal sector within the region or its duly authorized 
representative; and 
(6) Head of the bankers association within the region or its duly authorized 
representative. 
 
(b) The members of the Regional Consultative Committee must be performing 
valuation-related functions in their respective agencies or sectors; and 
 
(c) 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. The BLGF Regional 
Director may invite resource persons on issues concerning real property valuation. 
 
SEC. 10. Function of the Regional Consultative Committee. – The Regional 
Consultative Committee shall serve as a consultative 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; training of local government assessors in the region; 
appraisal and assessment concerns in general; and other matters as may be 
determined by the Committee: Provided, That any report thereof, as a result of the 
forum, shall be submitted to the Central Consultative Committee. 
 
ARTICLE III 
VALUATION OF REAL PROPERTIES 


 
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CHAPTER 1 
VALUATION STANDARDS AND MARKET VALUES 
 
SEC. 11. 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 LGUs and other concerned parties in the appraisal or valuation of 
lands, buildings, machinery and other real properties for taxation and other purposes. 
The valuation standards shall conform with internationally accepted valuation 
standards and principles. 
 
SEC. 12. Valuation of Real Property. – For valuation   purposes, all real 
properties, whether taxable or exempt, shall be valued or appraised based on 
prevailing market values in the locality where the property is situated, in conformity 
with the valuation standards adopted pursuant to this Act. The Secretary of Finance 
shall promulgate the rules and regulations for the valuation of real property pursuant 
to the provisions of this Act. 
 
For real property 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. 
 
SEC. 13. Preparation of Schedule of Market Values. – The provincial 
assessors, together with the municipal assessors, and the city assessors, including 
the lone municipal assessor in the Metropolitan Manila Area, shall prepare the SMVs 
for the different classes of real property situated within their respective LGUs, pursuant 
to the valuation standards, rules, regulations, and other specifications set by the DOF. 
The preparation of the SMVs shall be completed within six (6) months following the 
notice from the BLGF to all local assessors to submit their revised SMVs. 
 
Upon its completion, the local assessor shall submit the proposed SMV to the 
BLGF Regional Office. Within seventy-five (75) days from receipt thereof, the BLGF 
Regional Office, in coordination with the BIR Regional Office, shall review and endorse 
the proposed SMV to the BLGF Executive Director and the Commissioner of Internal 
Revenue: Provided, That, in the case of cities and municipality within the Metropolitan 
Manila Area, the proposed SMV shall be submitted to, and reviewed by the BLGF 
Central Office, in coordination with the concerned BIR Regional Office: Provided, 
further, That the SMV complies with all the requirements set by the Secretary of 
Finance, including the conduct of at least one (1) public consultation on the proposed 
SMVs. 
 
SEC. 14. Approval of Schedule of Market Values.  –  The Secretary of Finance 
shall approve the SMV in accordance with internationally accepted valuation 
standards, within thirty (30) days from receipt of the joint endorsement of the BLGF 
Executive Director and the Commissioner of Internal Revenue; otherwise, said 
schedule shall be deemed approved. In case of sudden changes in the market values, 
including but not limited to, ancestral domain, public land, agrarian reform 
beneficiaries, and other vulnerable sectors, the assessor is mandated to recommend 


 
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to the sanggunian tax rates and assessment levels that will maintain or minimally affect 
the real property tax due for the aforementioned property. 
 
The approved SMVs shall take effect fifteen (15) days after its publication by the 
DOF in the Official Gazette or in at least two (2) newspapers of general circulation, 
and posting in the respective provincial capitol, city hall and municipal hall, and in two 
(2) other conspicuous public places within the LGU covered by the approved SMVs. 
 
The DOF and the concerned LGUs shall post the approved SMVs in their official 
website. 
 
SEC. 15. Setting Assessment Levels and Tax Rates.  –  The approved SMV 
shall be transmitted to the concerned local chief executive, through the respective 
provincial, city, and municipal assessor. The concerned assessor, in coordination with 
the local treasurer, shall estimate the revenue and tax impact of the new SMV based 
on existing assessment levels and tax rates, and recommend amendments thereon 
based on three (3) different scenarios. The assessor shall thereafter prepare and 
submit the revenue and tax impact report to the local chief executive for consideration. 
 
The local chief executive shall transmit the approved SMV, together with the 
revenue and 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. During the sanggunian’s deliberations prior to the enactment of 
the tax ordinance, it may call upon the assessor to provide technical assistance and 
calculate the revenue and tax impact of additional options in order to arrive at a desired 
level of revenue and tax burden that the sanggunian will adopt. The concerned 
sanggunian shall enact the tax ordinance within sixty (60) days from receipt thereof, 
upon conduct of public hearings and proper consultations; 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, including the municipality in the Metropolitan Manila Area, 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: Provided, however, That this law shall not be construed to abridge 
the power of LGUs to lower and adjust assessment levels and tax rates in accordance 
with the provisions of Republic Act No. 7160, otherwise known as the “Local 
Government Code of 1991”, as amended, to provide with it to residential property 
owners as deemed necessary. 
 
SEC. 16. Publication of Assessment Levels and Tax Rates. – The approved 
ordinance for the assessment levels and tax rates shall be published by the concerned 
LGU in a newspaper of local circulation once a week for two (2) consecutive weeks:  
Provided, That in provinces and cities, including the municipality within the 
Metropolitan Manila Area, where there are no newspapers of local circulation, the 
same shall be posted in the provincial capitol, including all concerned city halls, 
municipal halls, and in two (2) other conspicuous public places therein. 
 


 
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SEC. 17. Use of Schedule of Market Values. – The approved SMV shall be 
used as bases for the determination of real property-related taxes of national and local 
governments, as follows: 
 
(a) For purposes of real property taxation, the approved SMV shall, in no case, 
be adopted by the LGU less than six (6) months prior to the effectivity of the new 
assessment rates to ensure the proper cleansing and updating of records, and 
notification of property owners in the conduct of general revision of assessment and 
property classification. 
 
(b) In computing any internal revenue tax, the BIR Commissioner shall use the 
SMV, or the actual gross selling price in consideration, as stated in real property 
transaction documents, whichever is higher. 
 
(c) For other purposes, such as local transfer tax, tax on sand and gravel, 
community tax, fees and charges, or as benchmark for real property appraisal of other 
government agencies, the approved SMV shall be used upon its effectivity. 
 
Notwithstanding the provision of existing laws to the contrary, the failure to 
conduct a general revision of assessment and property classification, and use of the 
approved SMV shall render an LGU ineligible for any conditional or performance-
based grant or to contract any form of credit financing. 
 
SEC. 18. Updating of Schedule of Market Values.  –  All provincial assessors, 
together with the municipal assessors and the city assessors, including the lone 
municipal assessor within the Metropolitan Manila Area, shall update their respective 
SMVs within two (2) years from the effectivity of this Act. Thereafter, they shall update 
the SMVs and conduct general revision of property assessments and classifications 
once every three (3) years from the date of last revision. The BLGF shall prepare the 
schedule for the updating of the SMVs in all provinces and cities, including the 
municipality within the Metropolitan Manila Area. 
 
In case of any significant change in market value where the property is located 
after the SMV has been approved and prior to the next revision, such as in times of 
calamities, disasters, man-made or natural and other adverse circumstances, or where 
corrections of errors and inequalities in the SMV is deemed necessary, or upon the 
order of the Secretary of Finance, the provincial and city assessors shall recommend 
revisions to the existing SMVs to the BLGF Regional Office, through the BLGF 
Regional Director exercising jurisdiction over the LGU concerned:  Provided, That, the 
city assessors and municipal assessor within the Metropolitan Manila Area, shall 
recommend revisions to the existing SMVs to the BLGF Central Office. 
 
Such revision or revisions shall be subject to review by the concerned BLGF 
Regional Office and the BIR Regional Office which shall complete their review and 
submit their recommendations to the BLGF Executive Director, in accordance with 
Sections 13 and 14 of this Act. 
 
SEC. 19. Conduct of Capacity Building Interventions. – The BLGF shall, in 
coordination with the Philippine Tax Academy of the DOF, develop and conduct the 
necessary trainings for all local assessors, local officials and staff, and other 


 
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concerned BIR personnel in the preparation of the SMVs in accordance with 
internationally accepted valuation standards, concepts, principles and practices, 
conduct of impact studies, preparation of compliance reports, and other subject areas. 
 
CHAPTER 2 
DEVELOPMENT AND MAINTENANCE OF 
REAL PROPERTY MARKET DATABASE 
 
SEC. 20. Development of Real Property Information System. – The BLGF 
shall develop and maintain an up-to-date electronic database of the sale, exchange, 
lease, mortgage, donation, transfer and all other real property transactions and 
declarations in the country and on the cost of construction or renovation of buildings 
and other structures, and on the prices of machinery. 
 
For this purpose, the BLGF shall require the mandatory submission of necessary 
documents from the concerned officials or employees of national government offices 
or instrumentalities, LGUs, and the private sector: Provided, That in the  case of 
government agencies and instrumentalities, the mandatory submission of documents 
and information shall be subject to the prohibition of disclosure of certain information 
under the Data Privacy Act and other existing laws. The updated database shall be 
made available to the LGUs, national government agencies and the private sector: 
Provided, further, That the Commissioner of Internal Revenue or a duly authorized 
representative shall be allowed access to the database without need of prior approval: 
Provided, finally, That non-submission of the required documents to the BLGF will 
subject the concerned official or employee to administrative penalties pursuant to the 
provisions of Section 28 of this Act. 
 
To further ensure the efficiency of real property tax administration, all provinces, 
cities and municipalities shall automate their operations, adopt tax mapping 
technology, maintain software-enabled valuation systems, undertake regular data 
cleansing, and computerize records management. The National Government, through 
the Department of Information and Communications Technology, shall provide the 
appropriate equipment and connectivity, information and communications technology 
platform, and the appropriate training and capability building programs to third class 
up to sixth class municipalities and provinces to ensure compliance with this section. 
The BLGF shall establish mechanisms for the electronic submission of the required 
documents in accordance with the provisions of Chapter 2, Article II of this Act. 
 
SEC. 21. Duty of Register of Deeds to Supply Assessors with Real Property 
Transactions Data.  –  The Register of Deeds shall prepare and submit to the 
provincial assessors, together with the municipal assessors, and city assessors, 
including the lone municipal assessor in the Metropolitan Manila Area, an abstract of 
the entire registry every three (3) months and copies of all contracts selling, 
transferring or otherwise converting, leasing, or mortgaging real property registered 
every end of the month. The abstract shall include brief but sufficient descriptions 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. 
 


 
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SEC. 22. Duty of Official Issuing Building Permits or Certificates of 
Registration of Machinery to Transmit Copy of Permit 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 the 
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. 
 
SEC. 24. Duty of Registrar of Deeds and Notaries Public to Assist the 
Provincial, City or Municipal Assessor.  –  It shall be the duty of the Registrar of 
Deeds and notaries public to furnish, free of charge, the provincial, city or municipal 
assessor with copies of all contracts selling, transferring, or otherwise conveying, 
leasing, or mortgaging real property received by, or acknowledged before them within 
such periods as the BLGF shall prescribe. 
 
SEC. 25. Transmission of Real Property Transactions Data to the BLGF. – 
Upon operationalization of the real property transactions database as provided in 
Section 20 of this Act, it shall be the duty of the registers of deeds, notaries public, 
officials issuing building permits, and the geodetic engineers conducting surveys within 
a locality to electronically transmit to the concerned BLGF Regional Office relevant 
real property transactions data, in accordance with the rules and regulations to be 
promulgated by the Secretary of Finance. 
 
CHAPTER 3 
APPOINTMENT AND QUALIFICATIONS OF ASSESSORS 
 
SEC. 26. Appointment of Assessors. – The local chief executive shall appoint 
the provincial, city and municipal assessors and assistant assessors, as the case may 
be, in accordance with Civil Service Law, Real Estate Service Act, rules and 
regulations and the following guidelines: 
 
(a) In the case of provincial and assistant provincial assessors and city and 
assistant city assessors, the appointee shall be chosen from the list of at least three 
(3) ranking eligible candidate within the region; 
 
(b) In the case of city and assistant city assessors, and the municipal and 
assistant municipal assessors in the Metropolitan Manila Area, the appointee shall be 
chosen from the list of at least three (3) ranking eligible candidates within the region; 
and; 


 
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(c) In the case of municipal and assistant municipal assessors, the appointee 
shall be chosen from the list of at least three (3) ranking eligible candidates within the 
province. 
 
The assessors shall be under the technical supervision of the BLGF, primarily 
through a system of compliance reporting and of capacity building through education 
and training programs. 
 
SEC. 27. Qualification of Local Government Assessors.  –  No person shall 
be appointed assessor or assistant assessor unless 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 not have been convicted of any crime 
involving moral turpitude. The appointee must have experience in real property 
valuation or assessment work in any suitable field, either in private or public practice, 
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. Once appointed, all assessors and local 
government appraisers must comply with the requirements of the Professional 
Regulatory Board of Real Estate Service for the regular updating of their licenses. 
 
ARTICLE IV 
PENAL PROVISIONS 
 
SEC. 28. 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 20, 21, 22, 23 and 24 of this 
Act, shall be punished by a fine equivalent to one (1) month to six (6) months basic 
salary of the official or employee, or suspension from the service for a period not 
exceeding one (1) year, or both, at the discretion of the competent authority. 
 
SEC. 29. 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 conceals any deviation or departure 
from such standards in the valuation of real property, shall be punished by a fine 
equivalent to one (1) month to six (6) months basic salary of the official or employee, 
or suspension from the service for a period not exceeding one (1) year, or both, at the 
discretion of the competent authority. 
 
SEC. 30. 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 punished by a fine equivalent to 
one (1) month to six (6) months basic salary of the official or employee, or suspension 
from the service for not more than one (1) year, or both, at the discretion of the 
competent authority.  This shall also be a ground for administrative and criminal liability 
in accordance with the provisions of Republic Act No 9646, otherwise known as the 
“Real Estate Service Act of the Philippines”. 
 
SEC. 31. Government Agents Delaying the Review, Approval and 
Implementation of the SMV, and Conduct of General Revisions. – Any 


 
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government official or employee who delays, without justifiable cause, the review, 
approval and implementation of the SMVs, the conduct of general revisions, or causes 
the improper use thereof, shall be punished by a fine equivalent to one (1) month to 
six (6) months basic salary of the official or employee, or suspension from the service 
for a period not exceeding one (1) year, or both, at the discretion of the competent 
authority. 
 
SEC. 32. Violation of Other Provisions. – Any person, whether natural or 
juridical, who violates any provision of this Act other than those punishable under 
Sections 28, 29, and 30 hereof shall, when warranted, be dealt with under applicable 
existing laws. 
 
SEC. 33. Taxpayers’ Remedies in Case of Erroneous Assessments of Real 
Properties.  –  The provisions of Sections 226 on Local Board of Assessment Appeals 
and 229 on Action by the Local Board of Assessment Appeals of Republic Act No. 
7160, as amended, shall apply in all cases of appeal as remedies for the taxpayers in 
the assessment of their properties. 
 
All concerned local governments shall cause the constitution of a fully functioning 
Local Board of Assessment Appeals in their respective jurisdictions, in coordination 
with the Land Registration Authority. 
 
ARTICLE V 
TRANSITORY PROVISIONS 
 
SEC. 34. Transitory Guidelines. – LGUs which are in the process of updating 
their SMVs shall, upon the effectivity of this Act, continue with such revisions in 
accordance with Sections 15, 16, 17, and 18 of this Act: Provided, That proper  
notification and coordination with the BLGF shall be undertaken. 
 
In case the SMVs are not yet available or updated, the BIR Commissioner shall 
adopt the existing SMVs, 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. 
 
SEC. 35. 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 city assessors, and municipal 
assessors, including the municipal assessor in the Metropolitan Manila Area, 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 updated SMVs as approved 
in accordance with Sections 15 of this Act, which shall be within two (2) years upon 
the effectivity of this Act. 
 
ARTICLE VI 
FUNDING REQUIREMENTS 
 
SEC. 36. Budgetary Requirements for the Updating of Schedule of Market 
Values.  –  Each local sanggunian shall appropriate the necessary funds from locally 


 
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generated revenues, the internal revenue allotment or such other sources every fiscal 
year to constitute the Real Property Tax Administration Fund (RPTAF), which shall be 
established and used for the proper implementation of the updating of the SMVs and 
general revision of real property assessments, and the administration of real property 
taxes in all LGUs. 
 
The BLGF shall annually furnish the Department of Budget and Management 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in its review 
of the ensuing year’s budget of provinces, highly urbanized cities, independent 
component cities and municipality within the Metropolitan Manila Area, shall ensure 
that sufficient funds are so appropriated for the RPTAF: Provided, That failure to 
provide the appropriations required shall render their annual budgets inoperative. 
 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
 
SEC. 37. Appropriations.  –  The amount necessary for the implementation of 
this Act shall be included in the annual General Appropriations Act. 
 
SEC. 38. Suppletory Application of Existing Laws. – The provisions of 
Republic Act No. 7160, otherwise known as the “Local Government Code of 1991”, as 
amended, and other laws consistent with this Act shall have suppletory effect. 
 
SEC. 39. Implementing Rules and Regulations (IRR).  – Within six (6) months 
after the effectivity of this Act, the DOF shall, in consultation with concerned parties, 
issue the IRR for the effective implementation of this Act. 
 
SEC. 40. Separability Clause.  –  If any section or provision of this Act shall be 
declared unconstitutional or invalid, other sections or provisions not affected thereby 
shall continue to be in full force and effect. 
 
SEC. 41. Repealing Clause. – The following provisions are hereby repealed: 
(a) Sections 212, 214, and 221 of Republic Act No. 7160, otherwise known as 
the “Local Government Code of 1991”, as amended; and 
 
(b) Section 4(h) of Presidential Decree No. 538. 
 
The following provisions are hereby amended accordingly: 
(1) Section 33, Chapter IV, Title II, Book IV, of Executive Order No. 292, 
otherwise known as the “Administrative Code of 1987”; 
 
(2) Sections 19, 135(a), 138, 201, 218, 220, 472(a), 472(b)(8), and 473(a) of 
Republic Act No. 7160; 
 
(3) Sections 5, 6, and 7 of Republic Act No.10752, otherwise known as “The 
Right-of-Way Act”; 
 
(4) Section 9 of Presidential Decree No. 921; and 
 


 
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(5) Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, otherwise known 
as the National Internal Revenue Code of 1997, as amended. 
 
All laws, presidential decrees, executive orders, presidential proclamations, rules 
and regulations or parts thereof contrary to or inconsistent with this Act are hereby 
repealed, superseded, or modified accordingly. 
 
SEC. 42. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
 
 
 
Approved,