Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON-MEEHAN 
AN ACT 
INSTITUTING 
REFORMS 
IN 
REAL 
PROPERTY 
VALUATION 
AND 
ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF 
LOCAL GOVERNMENT FINANCE, AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
This measure supports the House leadership in its efforts at aligning with the 
administration’s objective of developing and implementing a real property valuation and 
assessment system that is not only just and nationally-consistent but is also based on 
internationally-accepted standards.  
In order to achieve this objective, the bill proposes to establish: (1) valuation 
standards governing the valuation of real property; (2) a comprehensive and up-to-date 
electronic database of all real property transactions, and (3) transparency in these 
transactions. This bill also seeks to address the problems hounding the current valuation and 
assessment system, so that generation of local revenue can be vastly improved. This will 
hopefully make our Local Government Units become our real partners for nation building, 
development and progress. 
This bill was previously authored by Representative Joey Sarte Salceda in the 18th 
Congress. It was approved on Third Reading by the House of Representatives and transmitted 
to the Senate. 
In view of the foregoing, the passage of this bill is earnestly sought. 
August 9, 2022
5:00 pm
3420


Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON-MEEHAN 
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;
(e) Support the development and professionalization of the valuation practice in the
3420


 
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; 
(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 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; 
(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 
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 
 
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 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. 
 
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 the 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 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. 
 
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 
(c) just and nationally consistent 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 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 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 
(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,