Republic of the Philippines
HOUSE OF REPRESENTATIV
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILE. NO. 3566

Introduced by REP, EDGAR MARY S. SARMIENTO

EXPLANATORY NOTE,

Real property is considered the mast important natural resource and the biggest financial
asset The World Bank noted that 50" to 75% of the country's wealth is contained in fund
resources. In the Philippines, however, the land market is contributing only 6.6% to the Gross
National Product. This is due to the many problems in land management and administration,
including real property valuation, which is chaotic, ineflective, and inequitable. ‘This resulted
to inefficiencies in the land market, lack of confidence of the public and investors on the real
property sector, and, above all, unrealized revenues from real property and loss of income for
the Philippine Government

At least 23 national government agencies (NGAS) and more than 1,700 local government
units (LGUs) use different systems and methodologies for different purposes, thus, resulting
to the same property having multiple, confusing. unrealistic, or outdated values.

Vor almost two decades of the effectivity of the Local Government Code (LGC), real
property valuations in the LGUs have remained stagnant, outdated and persisted (0 be
susceptible to political dictation and maneuvering, The requirement of the LGC to regularly
conduct the general revision of the Schedule of Market Values (SMV) and property
assessments every three vears has been hardly realized and fully implemented by the LGUs
‘The SMVs are, thus, generally undervalued, and contributed to huge foregone revenues of the
LGUs. On the other hand, the Bureau of Internal Revenue (BIR). in determining values for
zonal valuation as basis for national land-related taxes, does not have the statutory mandate (0
regularly revise the zonal values, as well as the technical expertise in doing real property
valuations -often relying inputs from the private appraisal sector and local government
assessors. ‘Thus, valuations by the govemment do not truly capture and reflect the current,
market-based property developments and economic conditions overvaluation occurs when
the government is acquiring real property, while undervaluation proliferates if the
government is callectiny taxes

With the effectivity of the Real Estate Service Act or Republic Act No. 9646, which
professionalizes the real estate service in the country. including local government assessors
and national government appraisers. this bill adopts a bottam-up approach in
institutionalizing reforms in the valuation sector of the country to adopt a market-based SMV,

Page 1 of 14


by maximizing the technical expertise af | GU assessors in using and adopting uniform and
internationally-accepted valuation standards. This bill seeks to improve the valuations of
LGUs to become the basis for real property taxation of the national and local goveraments,
and as benchmark for other purposes. as required by other government agencies. and
instrumentalities,

Concurrently, reorganizing and strengthening the Bureau of Local Government Finance
(BLGF) is being proposed as a fundamental clement to achieve the envisioned reforms By
starting at the local governments, the BLGF shall be the lead agency to review and approve
the SMYs of ali LGUs, thus, separating the technical function of valuation from the political
function of taxation exercised by local clective officials. The BLGF shall oversee all real
property valuation matters in the country, being in the best position to assume the
responsibility within the existing bureaucracy

Building an equitable, transparent, and impartial valuation system will stimulate a vibrant real
estate sector, and foster private investors” confidence and the general public, The potential of
real property to strengthen the fiscal affairs of the LGUs should be fully tapped to achieve
more meaningful local fiscul autonomy and to improve the government's capacity to generate
revenues and provide adequate public service éelivery

In view of the foregoing, the immediate approval of this bill is earnestly sought

EDGAR MAR®Y S. SARMIENTO.

Page 2 of 14


wernnreuene

Lb
2
3
14
15
16
vw
18
19

Republic of the Philippines
HOUSE OF REPRESENTATIVE
Constitution Hills, Quezon City

EIGHTEENTIL CONGRESS
Furst Regular Session

HOUSE BILL. NO, 3566

Introduced by REP. EDGAR MARY S. RMIENTO

AN ACT INSTITUTING REFORMS IN REAL PROPERTY VALUATION IN THE
PHILIPPINES, REORGANIZING THE BUREAU OF LOCAL GOVERNMENT
FINANCE, AND APPROPRIATING FUNDS THEREFOR

Be ut enacted by the Senate and House of Representatives: of the Plulppmes om Congress
assembled:

SEC, 1. Short Title. - This Act shall be known as the "THE REAL PROPERTY
VALUATION REFORM ACT OF 2019"

ARTICLE 5
DECLARATION OF POLIC
AND DEFINITION OF

ND OBJECTIV!
ERMS

SEC. 2. Dectaration of Policy and Objectives. ~ It is the policy of the State to
promote the development and maintenance of a just, equitable, impartial, and nationally
consistent real property valuation based on internationally accepted valuation standards,
concepts, principles, and practices. ‘Towards this end, the State shall
(a) Promote the fiscal autonomy of local governments to provide basic services to
their constituency by enhancing their capacity to generate local revenues trom real
Property:
(b) Establish and maintain valuation standards to govern the valuation of real property
in the country.
(c) Adopt market value as the single real property valuation base for the a
of all real property related taxes in the country, and for valuing or appraising real
property for varinus transactions by all government agencies;

ssessment

Page 3 of 14


(a) Separate the function of valuing or appraising of real properties from the functions
of tax policy and administering the taxes due thereon;

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

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

(2) Support the development of a “bady of knowledge” on valuation by continuing
research and monitoring of new developments in the valuation discipline for
uperading the country’s valuation and keeping it. abreast with ylobal
developments; and

(h) Ensure transparency in real property transactions to protect the public 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 (0 a person who conducts
valuation/appraisal, specifically. one who possesses the necessary qualifications,
ability, and experience fo execute o° direct the valuation’appraisal of real property.

(b) Assessor ~ refers to an official in the local government unit, who is a licensed
appraiser, who performs appraisal and assessment of real properties, including
plant, inachinery and equipment, essentially for taxation and other purposes. This
definition also includes assistant assessor:

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

(d) 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 10 enhance its value, beauty or
utility or to adapt it for new or further purposes.

{e) Land - refers to one of the major factors of production consisting sometimes of a
material economic good, which is supplied by nature without the aid of man Land
may include not only the carth surface, bath 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,

(1) Machinery embraces 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, selfpowered 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, mning. logging.
commercial, industrial or agricultural purposes.

Page 4 of 14


64 (y) Market Value — refers to the estimated amount for which @ property should

6s ‘exchange on the date of valuation between a willing buyer and a willing seller in
6 an arm’s length transaction (a transaction between independent. unrelated parties
67 involving no irregularity) after proper marketing wherein the parties had each
68 acted knowledgeably, prudently, and without compulsion;

ey (h) Private appraisal sector ~ refers to licensed non-governmental real estate service
70 Practitioners who have been active in the practice of real estate appraisal for the
mn last five (5) years.

2 (2) Real Estate - refers to the land and all those items which are attached to the land,
B Wis the physical, tangible entity, together with all the additions or improvements
1% ‘on, above or below the ground.

1s (Gj) Real Property — refers to all the rights, interests, and benefits related to the
16 ownership of real estate, plant, machinery, and equipment,

n (k} Schedule of Market Values or SMV refers to a table of market values of real
8 Properties within a local government unit prepared by assessors pursuant to
73 existing laws, rules and regulations.

80 (1) Special Purpose Property ~ refers to a property which is designed, constructed and
Bt developed for a specific use or purpose By its very nature, this type of property is
82 rarely offered for sale in the open market except as part of & going concern
83 Because of the special design and function, conversion of special purpose
84 properties to other types of development or application is generally not
8S economically feasible.

86 (m)Valuation’Appraisal ~ refers to the systematic and analytic determination and
8? recording of property facts, circumstances, investments, and investigation of other
88 relevant data resulting in a supportable estimate and opinion of value or a
89 professional conclusion based upon supporting data, logical analysis and judgment
90 as ofa specific date and for a specific purpose.

a

92

93 ARTICLE IE

94 STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT FINANCE

9s

96 Chapter 1

7 BLGF Central Operations

$8

99 4, Role of the Bureau of Local Government Finance, ~ The Bureau of |.ocal

100 Government Finance shall lead and manage the implementation of the provisions of this Act
101 The BLGE shall have the fallawing powers and funettons:

102 (a) Develop, adopt, and maintain valuation standards consistent with generally
103 accepted valuation standards, regulations and specitications for real property
104 appraisal used for tax and other purposes, and ensure compliance therewith by
105 local government units and other concerned parties.

106 (by Review tor compliance with the real property valuation policies and standards and
307 approve the Schedule of Market Values (SMVs) prepared by the provincial

Page 5 of 14


108
109
110
m
2
13
14
115,
116
uy
ins
119
120
121
122
123
126
125,
126
127
128
128
130
131
132
333
334
135
136
1397
138
139
140
141
142
143
144
105
146
347
148
a9
150
151

assessors together with municipal assessors, and city assessors, including the
municipal assessor of Metro Manila, for tax and other purposes,

{c) Provide technical assistance on real property appraisal matters to government
agencies and instrumentalities, and coordinate or conduct the valuation/appratsal
of special purpose properties, when requested,

(d) Provide leadership and policy directions t local government units on real
property valuation/appraisal for ‘axation and other purposes, including the
development and maintenance of valuation standards, the regulation of
valuation/appraisal activities and other related matters, and the promotion of
valuation/appraisal training and seminars:

(e) Maintain a roster of licensed local government appraisers and assessors;

(1) Develap 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 coilect reasonable amounts to be charged as administration
fees, fines, and penalties relutive fo the implementation of this Act: and

{i) Perform such other functions ay are necessary, proper, and incidental 10
implement the provistons of this Act

EC. §. Establishment of the Real Property Valuation Service. To achieve the
policy and objectives declared in this Act, there shall be established the Real Property
Valuation Service, hereinafier referred to as the RPVS, within the Bureau of Local
Government Finance, which shall perform the functions pertaining to See. 4 hereof

SEC. 6, Responsibitities of the BLGF Executive Director, ~ ‘The BLG Uxecutive
Director shail be responsible for the efficient and effective performance of the responsibilities
set forth in this Act and for the overall internal management and governance of the RPWS
For this purpose, the BLGE Executive Director shall

(a) Develop and implement policies, plans, programs, and operating standards for the
attainment of the objectives of this Act,

{b) Provide policy directions and leadership in all aspects of valuation/appraisal and
their implementation in the regiona! offices.

{c) Approve, upon review by the RPYS, the Schedule of Market Values (SMVs)
prepared by the provincial assessors together with mumicipal assessors. and city
assessors, including the municipal assessor of Metro Manila, for tx and other
purposes

(d) Advise and assist other government agencies on matters pertaining to real
property valuation‘appraisal: and

(¢) Perform such other functions as may be provided by law, or requited in pursuance
of this Act

Page 6 of 14


182
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
268
169
170
ama
172
173
474
175
176
177
178
1798
180
181
182
183
124
185
186
187
188
189
390
191
192
193
194

SEC. 7. Consultations with Concerned Agencies and Sectors. ~ (a) A Central
Consultative Comnnitiee shall be created, chaired hy the BILGF Executive Director and
composed of a representative cach trom the:

1 Bureau of Internal Revenue (BIR),
2. Department of Environment and Natural Resources (DENR ).
3. Bangko Sentral ny Pilipinas (BSP),
4. National organization of government assessors;
5. Private appraisal sector, and
Union of Local Authorities of the Philippines (ULAP),
(b) The member-representatives from the BIR, DENR, and BSP must be performing
valuation-related functions. The national organization of government assessors,
the private sector, and the ULAP shall be represented by their respective heads of

=

‘organization

(c) The Chairperson and members of the Committee shall not receive additional
salary for the performance of their functions, but they shall be entitled to
honocarne, pursuant to existing laws and regulations

(d) 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
avcessary for the adoption of valuation standards.

SEC. 8. Functions of the Central Consultative Committee, The Central
Consultative Committee shall serve as the consultation forum on matters pertaining to the
setling, adoption and maintenance of the valuation standards

Chapter 2
BLGF Regional Operations

SEC. 9, Role of the BLGF Regional Offices. —‘Vhe BELGE Regional Offices, through
the Regional Director. shall have the responsibility on all matters rela
valuatior/appraisal und the SMVs in the region, such as:

{a) Implement the provisions of this Act and related policies, plans. programs. rules
and regulations on real property valuation or appraisal of local government units
in the region

{b) Review and endorse to the BLGF Executive Dureetor the approval of the proposed

SMVs prepared by the provincial assessors together with the municipal assessors,
and city assessors within the region,

ne 10

(¢) Provide economical, efficient, and effective service relating to the implementation
of the provisions of this Act in the region:

(d) Coordinate and consult with regional offices of other government departments,
burvaus. and agencies within the region dealing with real property
valuation ‘appraisal:

(e) Provide leadership and policy direction. in the area of real property
-valuation/appraisal to local governinent units in the region,

Page 7 of 14


195,
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
au
212
213
na
25
216
27
218
219
220
2.
222
223
226
225
226
227
228
229
230
231
232
233
234
235
236
237
238

(1) 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

(q) Perform other functions as may be assigned by the BLGF Executive Director

SEC. 10. The Regional Consultative Committee. -- (a) (here shall be a Regional
Consultative Committee chaired by the BLGF Regional Director, and composed of a
representative each from

1) Bureau of Internal Revenue - Regional Ottice,

2) Department of Environment und Natural Resources - Regional Office,
3) Regional organization of government assessors,

4). Private appraisal sector within the region; and

5) Bankers assocration within the region.

(b) The members of the Regional Consultative Commitice must be perfonning
valuation/appraisal related functions, Representatives from the regional
organization of government assessors, private appraisal sector, and banking
association within the region shall be represented by the head of their respective
organization.

(c) The Committee shall mect at the initiation of the BLGF Regivnal Director at least
once every quarter, and shail have as many meetings as the BLGF Regional
Director may deem necessary for the performance of its functions

tt. Functions of the Regional Consuttative Committee, — The Regional
Consultative Committee shall serve as a consultation forum in the region for discussion on
developments in the local real property market: concerns of taxpayers, civil society, and other
stakeholders: outcome of Compliance Reporting in the region: Jevel of complaints and
appeals: local government unit taining in the region: appraiser and assessor concerns in
general, and other matters as may be determined by the Committee.

ARTICLE HL
VALUATION/APPRAISAL OF REAL PROPERT

Chapter 1
Valuation Standards and Market Values

SEC. 12. Development of Valuation Standards. - Notwithstanding the provisions of
existing laws to the contrary, the BILGE, shall develop, adopt, maintain and implement
umtorm valuation standards which shall be used by all appraisers and assessors in the local
government units and other concerned parties in apprarsing or valuing lands. buildings,
machinery and other real properties for taxation and ather purposes. The valuation standards
shall conform with the generally accepted valuation principles and internationally accepted
standards

Page 8 of 14


239
240
241
282
243
244
245
246
247
248
249
250
21
252
253
234
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
2n
272
23
274
25
276
27
278
279
280
281
282

SEC. 13, Faluation/Appraisal of Real Property. For valuation purposes, all real
properties, whether taxable or exempt, shall be valued or appraised at the market value
prevailing in the locality where the property is situated, in conformity with the valuation
standards adopted under this Act. The BIGF shail promulgate the rules and regulations for
the valuation/appraisal of real property pursuant to the provisions of this Act. It shall provide
leadership in ensuring rationalized valuation of real properties transcending political
boundaries.

For real properties intended for low-cost or socialized housing and other programs of
the government imbued with social policy objectives, the provisions of existing pertinent
Jaws shall be applied after determination of the prevailing market value of these properties in
accordance with internationally accepted valuation standards adopted under this Act.

SEC. 14, Preparation of Schedule of Market Values. Provincial assessors tovether
with municipal assessors, and city assessors. including the municipal assessor in Metro
Manila, shall prepare the SMVs for the different classes of real property situated within their
respective local government units, pursuant to the valuation standards, rules, regulations and
other specifications set by the DOF and the BILGE. The sad SMVs shall be submitted by the
assessor concerned, copy furnished the provincial governor or the city mayor, as the case may
be, and the concerned Sunggunian, to the BLGE Regional Office for review and comphanee
with other requirements not later than the thirty-first (31°) day of October of the immediately
preceding calendar year the general revision of real property assessments shall be undertaken
The said SMVs shall be reviewed by the BLGF Regional Office within thirty (30) days upon
receipt thereof. and shall then be submitted by the same to the BLGK Central Office. The
BLGPF Executive Director, afer review by the RPVS, shall approve the SMV within sixty
(60) days upon receipt of the same: otherwise, said schedule shall be deemed approved

The approved SMV shall be transmitted to the concerned assessor who shall confer

with the local chief executive regarding the said approved SMV. | skewise, the concerned
assessor shall submit to the local chief executive a tax impact report of the new SMV as
against the existing assessment levels and tax rates, and shal! provide the Sangyinan,
through the Chairman of the Committee on Ways and Means, a copy of such report. fhe local
chief executive shall transmit the approved SMV together with the tax impact report within
fifteen (15) days from receipt of the same to the Sungguuan for the enactment of an
Ordinance setting the apprapriate assessment levels and tax rates. The concerned
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 toree and effect.
‘Upon the enactment by the Sanggwian of an Ordinance for the assessment lev nd
es, the local chief executive shalt act within ten (10) days, in the case of cities, and the
municipality in Metro Manila, or within fifteen (15) days, in the case of provinces, to approve
the same. Failure of the concerned facal chic! executive to act on the Ordinance within the
prescribed period shall render the same approved.

‘The approved Ordinance together with the SMV shall be published by the concerned
local government unit in a newspaper of local circulation once a week for two consecutive
weeks: Provided, however, That in provinces. cities and municipalities where there are no

tay rat

Page 9 of 14


283

285
786
287
288
289
290
291
292
293
298
295
236
297
298
299
300
301
302
303

319
3u1
312
313
314
315,
316
317
318
319
320
321
322
323
324
325,
326

newspapers of local circulation, the same shall be posted in the provincial capitol, city or
municipal hall and in two (2) other conspicuous public places therein. A list of LGUs whose
SMVs have been approved shall be posted in the BLGF official website.

SEC. 15. Use of Schedule of Market Values. - The SMV as approved by the BLGI
shall be used for the yoneral revision of real property assessments in local government units,
as basis fur the determination of real property related taxes imposed by national government
agencies, and as benchmark for real property appraisal for other purposes. For purposes of
computing any intemal revenue tax, the BIR Commissioner shall adopt the SMV or the actual
price in consideration as stated in real property transaction documents, whichever is higher

Notwithstanding the provisions of existing laws to the contrary, the SMV shail cease
as basis tor the determination of national and local real property related taxes after five (5)
years from the effectivity of its enacting Ordinance:

SEC. 16. Revision of Schedule of Marker Values. The BLGF shall formulate the
program for the regular revision of SMVs All provincial assessors together with the
municipal assessors, and city assessors, including the municipal assessor in Metro Manila,
shall undertake a revision of their respective SMVs within two (2) years from the effectivity
of this Act Thereafter, they shall undertake a general revision of SMVs and property
assessments not earlier than three (3) years from the date of last revision, but not later than
five (5) years.

In case of any significant change in the market where the property is Jocated afier the
said SMVs have been approved and prior to its next revision, or where correction oF errors
and inequalities in any SMV is deemed necessary, the provincial assessors together with the
municipal assessors, and city assessors, including the municipal assessor 11 Metro Manila,
may recommend to the BLGF Executive Director revisions to their exishny SMV. Such
revision’s shall be subject to review and approval by the BLGI Executive Director wahin
ninety days (90) from the date of receipt thereof’

SEC. 17. Conduct of Capacity Building Interventions. — For the effective
implementation of this Act, the BLGF shall develop and conduct the necessary tramings for
all Jacal assessors and other local afficials’staff on the preparation of SMV in accordance
with internationally accepted valuation standards, concepts, principles and practices, conduct
of SMV impact studies: preparation of compliance reports, and other subject areas to ensure
the effective implementation of this Act

Chapter 2
Development und Maintenance of Real Property Dutubase

SEC, 18, Development of Real Property Database. The BLGF shall develop and
maintain an up-to-date electronic database of the sale, exchange. lease, mortgage donation
and all other real property transactions in the country and on the cost of construction or
renovation of buildings and other structures, and on prices af machinery. For this purpose. the
BLGE is hereby authorized to require the mandatory submission of necessary documents

Page 10 of 14


327
328
329
330
331
332
233
334
335
336
337
338
339
340
341
342
243,

345,
36
37
348
39
350
351
352
353
354
355
356
357
358
359

361
362
363
364
365
365
367
368
369

from the concerned officials or employees of national government offices or
instrumentalities, local government units, and the private sector. The updated database
be made available to the local government units, national government agencies, and the
Private sector as well.

SEC. 19. 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 municipal assessor in Metro Manila, an abstract of hivher
registry every three (3) months and copies of all contracts selling, transferring or otherwise
converting. leasing, or mortgaging real property registered by himsher every end of the
month, The abstract shail include brief but sufficient description of the real propenies entered
therein, their present owners. and the dates of their most recent transfer oF alienation
accompanied by copies of corresponding deeds of sale, donation, of partition of other forms
of alienation

C. 20. Duty of Official Issuing Building Permits or Certificates of Registration of
Machinery to Transmit Copy to the Assessor. Any public official or employee who may
now or hereafter be required by law or regulation to issue to any person a permit for the
construction, addition, repair, or renovation of a building. or permanent improvement on
land, or a certificate of registration for any machinery, including machines. mechanical
contrivances, and apparatus attached or aiTixed on land or to another real property. shall
transmit a copy of such permit or certification within thirty (30) days of its issuance, 1 the
-ssor of the province, city or municipality where the property 1s situated

. 21. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor, —
shall be the duty of all geodetic engineers, public or private, to furnish tree of charge, the
assessor of the province, cily 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 Engincer, executed by them every end of the month from receipt of
such approved plans fiom the Land Management Bureau (ILMB), the Land Registration
Authority (LRA), or the Housing and Land Use Regulatory Board (HLURB), as the case may
be

SFC. 22. Duty of Assessors to Transmit Documents to the BLGE.— \t shall be the
duly of the assessors to transmit to the concemed BILGE Regional Office all real property
transactions data from the Register of Deeds, official issuing building permit and geodetic
engineers within one (1) month after the receipt of such data The BLGF's Regional Office
shall record, process and make a summary report of the real property data, and submit the
same to the BLGF Central office within one (1) month from receipt of such data,

Chapter 3
Appointment and Qualifications of Assessors

Page 11 of 14


370
am
372
373
374
378
376
377
378
379
380
381
382
383

385

386
387
388
389
390
391

393
396
395
396
397

399
400
401
402
403
408
405
406
407
403
499
410
ann

SEC, 23. Appointment of Assessors. Notwithstanding the provisions of existing
laws to the contrary, appointments of provincial, city, and municipal assessors and assistant
assessors shall be in accordance with the following guideline

(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 recommendecs suitable and qualified for appointment within the region:

(b) in the case of municipal and assistant municipal assessors, appointee shall be

chosen from the fist of at least three (3) ranking eligyble recommendees suitable
and qualified for appointment within the province. and

(c) In the case of city and assistant cily 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 technical supervision of the BLGU, primarily through
a system of compliance reporting and provision for education and training for capacity
building

SEC. 24. Qualifications of Local Government Assessors. No person shall be
appointed assessor or assistant assessor unless such person is a citizen of the Philippines, a
resident of the region for a provincial or city assessor/assistant assessor and of the province
for a municipal assessor‘assistant assessor, a registered and licensed appraiser, of good moral
character, and must have an experience in real property valuation or assessment work or in
any suitable field for at least five (5) years in the case of the provincial or city assessor and
three (3) years in the case of the municipal assessur

ARTICLE IV.
PENAL PROVISIONS

SEC, 25. Failure 10 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 18, 19, 20, 21, and 22 of this Act shall be
punished by a maximum fine equivalent to the official's or employee's six (6) months basic
salary or suspension fiom service for a period not exceeding one (1) year, or both, at the
discretion of the competent authority

SEC. 26. Fuilure 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 concested any deviations or departures from such
standards in the valuation/appratsal of real property, 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.

Page 120f 14


a2
413
414
as
416
417
418
aig
420
a2t
422
423
424
425
426
an
428
429
430
431
432
433
434
435,
436
437
438
438
440
aay
442
443
aaa
445
468
447
44g
ag
450
451
452
453
asa
455

SEC, 27. Failure to Prepare Schedule of Market Values. — Aw assessor who, for
unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs within
the period set forth in this Act shall be meted the maximum fine equivalent to the official's or
employee's six (6) inonths basic salary, or by suspension trom government service for not
more than ane (1) year. or both, at the discretion of the competent authority

SEC. 28. Violations of Other Provisions. ~ Any person, whether natural or juridical,
who violates any provision of this Act other than those punishable under Sections 25, 26, and
27 hereof shall, when warranted, be dealt with under applicable existing laws.

SEC. 29, Taxpayers’ Remedies in Case of Erroneous Assessments of Reat
Properties. ‘The provisions of Sections 226 (Local Board of Assessment Appeals) and 229
{Action by the Local Board of Assessment Appeals) of Republic Act No. 7160. otherwise
known as The Local Government Code of 1991 shall apply in all cases of appeals as remedies
for the taxpayers in the assessment of their properties

ARTICLE ¥
TRANSITORY PROVISIONS

SEC. 30. TransitoryGuidelines, - (a) Local government units which are in the process of
revising their SMV, upon the effectivity of this Act, shall continue with such revisions in
accordance with Section 16 of this Act: Provided, That proper notification and coordination
with the BLGF shat! be undertaken

{b) In case the SMV is not yet available or revised, the BIR Commissivner shall adopt
the existing SMV, zonal values or the actual price in consideration as stated in real property

transaction documents, whichever is higher, for purposes of computing any internal reventie
tax

SEC. 31. Saving Clause, - The zonal values as determined by the BIR. and approved
by the Secretary of Finance for internal revenue tax purposes and the SMVs prepared by the
Provincial assessors together with the municipal assessors, and city assessors, including the
municipal assessors of Mctro Manila, thar have been approved by their respec!
Samggunians for teal property taxation purposes shall continue to be in farce and effect until
repealed, superseded, madified, 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

ive

ARTICLE V1

Fl ING REQUIREMENTS

SEC, 32. Budgetary Requirements for Revision of Schedule of Market Values, -
Each local Sungguanian shall appropriate the vecessary funds either fom locally generated

Page 13 of 14


456
457
458
459
460
461
462
463
464
465
486
467
468
469
470
an
472
47a
474
475
aye
an

478
479
ago
481
482
433
43a
435
436
487
438
429
490
491
492
493
494
495
496

revenues, the Internal Revenue Allotment (IRA). or other possible sources every fiscal year
The accumulated amount so appropriated shall be known as the Real Property Tax
Administration Fund (RPTAF) which shall be used to ensure the proper implementation of
the regular revisions of the SMVs and general revision of property assessments, and the
administration of real property taxes in all local government units

SEC. 33. Appropriations. ‘The amount necessary for the initial implementation of
this Act shall be charged against the current appropriations of the BLGF. Thereafter, such
sum for the continuing operations and the proper implementation of this Act shall be included
in the annual General Appropriations Act

ARTICLE VL
US PROVISIONS

SEC. 34, /mplementing Rules and Regulations (IRR). — Within six (6) months after
the effectivity of this Act, the DOF, upon conducting consultations with concerned parties,
shali issuethe IRR for the effective implementation of this Act

Suppletory Application of F:
No. 7160, otherwise known as the Local ov
consistent with this Act shail have suppletory eifect

ig Laws, ~ The provisions of Republic Act
ent Code of 1991, and other laws

SEC. 36. Repeating Clause. ~ (a) Section 6(E) of Republic Act No, 8424, otherwise
known as the National Internal Revenue Code (NIRC), as amended, and Sections 199(1}, 201.
209%a), 212, 244, 219, 2244), 472(a) par 2, and 473(a) par | of Republic Act No. 7160,
otherwise known as the Local Government Code (LGC) of the Philippines, are hereby
repealed;

(b) Sections 19 135(a), 138, 198(aXgXhXN, 202, 2U8pari(b), 220, 443d),
A44(DK DV), 454(d), 4551 KV), 463(d), and 465¢bX tiv), 472AbR) of the LGC, and
Scctivn 88(B) of the NIRC are hereby modified accordingly:

(c) All taws, presidential decrees, executive orders, presidential proclamations, rules
und regulations or parts thereof contrary to ur inconsistent with this Act are hereby repealed,
superseded or modified accordingly.

SEG. 37. Separability Clause. ~ Any portion or provision of this Act that may be
declared unconstitutional or invalid shall not have the effeet of nullilying other portions or
provisians hereof, as long as such remaining portions or provisions can stilt subsist and be
given effeet in their entirety

SEC. 38. Effectivity. . ‘Thus Act shall take effect fiftecn (15) days afier its complete
publication in the Official Gazette or in at least two (2) newspapers of generat circulation

Approved,

Page 14 0f 14