V.ic
EIGHTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No. 246
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• n  •’ ri
of I f  '1 1 
' n*
T9 JUL-8 PI 58
RECEIVE
Introduced by SENATOR LACSON
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
Real property is the country’s most important resource and biggest financial 
asset. A World Bank study indicated that 50% to 75% of the national wealth is 
contained in land alone. Real property, therefore, has the largest potential 
contribution to national income for funding economic and social developments.
One of the principal sources of income of local government units (LGUs) is 
derived from the taxes imposed on real properties. The LGU Taxation and 
Revenue Practices report of the Bureau of Local Government Finance (BLGF) 
shows that, on the average, real property taxes contribute about 31% of the LGUs’ 
local sources over the period of 2009 to 2014.
While the LGUs are given powers by the Local Government Code of 1991 
to generate local income in order to be effective partners in nation building, it is a 
fact tliat there are still municipalities that remain dependent on national 
government revenues. BLGF data shows that, of the 286 first class municipalities 
in the country, 116 municipalities (40%) remain dependent on their share from the 
Internal Revenue Allotment (IRA). This dependence is partly because 199 
municipalities (70%) have poor collections for real property taxes, making up less 
than 15% of their respective local incomes.
Hence, this proposal seeks to promote the development and maintenance of 
just, equitable, impartial, and nationally consistent real property valuation by 
establishing appraisal standards, methods, and procedures of property valuations 
and assessment. The Bill s enactment will assist the LGUs in maximizing revenue 
collections, which in turn, will promote genuine local autonomy.
The passage of the proposed Real Property Valuation and Assessment 
Reform Act is intended to resolve the following issues in the present valuation 
system, to wit:


1. 
Multiple land valuation systems and methodologies used by at 
least 23 national government agencies and 1,712 LGUs, including 
private individuals and institutional appraisers—each using their own 
systems and measures, resulting in as many conflicting values for the 
same piece of real property;
2. 
Multiple impositions of national and local taxes on land and 
property ownership and transactions which encourage tax evasion and 
rampant underreporting of sales prices in official documents;
3. 
Lack of valuation standards, formal education and training for 
valuers resulting in incompetence and outdated techniques in the 
appraisal practice;
4. Undervaluation and overvaluation of real properties for tax 
purposes causing unnecessary delays and huge financial losses in the 
form of foregone government revenues and cost overruns;
5. 
Outdated real property values which no longer capture the true 
economic realities in the community where the property is situated; 
local governments fail to revise the Schedule of Market Values, as 
required by Republic Act No. 7160 otherwise known as the Local 
Government Code of 1991, as basis for local real property taxation, due 
to political ambivalence and apprehension of political backlash; and
6. Distorted real property transactions database due to cluttered real 
property sales transactions among various groups and individuals, e.g. 
the assessors, the Registry of Deeds, the Bureau of Internal Revenue, 
bank/s, among others.
sought.
In view of the foregoing reasons, the approval of this bill is earnestly
PANFI
ScHKiyor
ACSON


EIGHTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No. 
2 4  6
' 
of I ” :
T9 JUL -8 P1 58
REC EIVED l . i : __
Introduced by SENATOR LACSON
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:
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SEC 1. Short Title. -  This Act shall be known as the "Real Property Valuation and
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Assessment Reform Act".
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ARTICLE I
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DECLARATION OF STATE POLICY AND OBJECTIVES, AND DEFINITION
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OF TERMS
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SEC. 2. Declaration of Policy and Objectives. -  It is the policy of the State to
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promote the development and maintenance of a just, equitable, impartial, and nationally
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consistent real property valuation based on internationally accepted valuation standards,
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concepts, principles, and practices. Towards this end, the State shall:
a) Promote the fiscal autonomy of local governments to provide basic services to
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their constituencies by enhancing their capacity to generate local revenues from real
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property;
b) Establish and maintain valuation standards to govern the valuation of real 
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property in the country;
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c) Adopt market value as the single real property valuation base for the assessment
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of real property related taxes in the country and for valuing or appraising real property
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for various transactions by all government agencies;
d) Separate the function of valuing or appraising of real properties from the 
functions of tax policy and administering the taxes due thereon;
e) Support the development and professionalization of the valuation and appraisal
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practice in the country pursuant to Republic Act No. 9646, otherwise known as the "Real
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Estate Service Act of the Philippines";
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f) Provide a comprehensive and up-to-date electronic database of all real property
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transactions;
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g) Support the development of an information database on valuation by continuing
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research and monitoring of new developments in the valuation discipline for upgrading
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the country's valuation and keeping it abreast with global developments; and
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h) Ensure transparency in real property transactions to protect the public and
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develop confidence in the work of appraisers and assessors.
SEC. 3. Definition of Terms. -  As used in this Act:
Appraiser refers to a natural person who conducts valuation and appraisal;
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specifically, one who possesses the necessary qualifications, license, ability, and
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experience to execute or direct the valuation and appraisal of real property; also known as
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Valuer;
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b) Assessor refers to an official in the local government unit (LGU) who is a
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licensed appraiser, who performs appraisal and assessment of real properties including
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plant, machinery and equipment, essentially for taxation and other purposes. This
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definition also includes Assistant Assessors;
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c) Assessed value, also known as taxable value, refers to the market value of the
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property multiplied by the corresponding assessment level;
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d) 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;
e) 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;
f) Building refers to a man-made structure permanently attached to land for 
residential, commercial, industrial, recreational or other purposes;
g) Improvements refer to valuable addition made to a property or an amelioration in 
its condition, amounting to more than a mere repair or replacement of parts involving 
capital expenditures and labor, which is intended to enhance its value, beauty or utility, 
or to adapt it for new or further purposes;
h) Land refers to one of the major factors of production consisting sometimes of a 
material economic good, which is supplied by nature without the aid of man. Land may 
include not only the earth surface, both land and water, but also anything that is attached 
to the earth's surface. Thus, all natural resources in their original state, such as mineral 
deposits, wildlife, timber, and fish, are land within the technical meaning of the term; so 
also are sources of energy, outside of man himself, such as water, coal deposits, and the 
natural fertility of the soil;
i) Machinery refers to machines, equipment, mechanical contrivances, instruments, 
appliances or apparatus which may or may not be attached, pennanently 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


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which by their very nature and purpose are designed for, or 
necessary to its
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manufacturing, mining, logging, commercial, industrial or agricultural purposes;
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j) Market value refers to the estimated amount for which a property should
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exchange on the date of valuation between a willing buyer and a willing seller in an arm's
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length transaction (a transaction between independent,. unrelated parties involving no
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irregularity) after proper marketing wherein the parties had each acted knowledgeably,
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prudently, and without compulsion;
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k) Private appraisal sector refers to licensed nongovernmental real estate service
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practitioners who have been active in the practice of real estate appraisal for the last five
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(5) years;
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1) Real estate refers to the land and all those items that are attached to the land. It is
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the physical, tangible entity, together with all the additions or improvements on, above or
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below the ground;
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m) Real property refers to all the rights, interests, and benefits related to the
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ownership of real estate, plant, machinery, and equipment;
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n) Schedule of Market Values, hereinafter referred to as SMV, refers to a table of
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base unit market values for all kinds of real properties, except machinery, within an LGU
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prepared by assessors pursuant to existing laws, rules and regulations;
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o) Special purpose property refers to a property that is designed, constructed and
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developed for a specific use or purpose. By its very nature, this type of property is rarely
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offered for sale in the open market except as part of a going concern. Because of the
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special design and function, conversion of special purpose properties to other types of
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development or application is generally not economically feasible; and
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P) Valuation, also known as appraisal, refers to the systematic and analytic
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determination and recording of property facts, circumstances, investments, and
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investigation of other relevant data resulting in a supportable estimate and opinion of


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value or a professional conclusion based upon supporting data, logical analysis, and
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judgment as of a specific date and for a specific purpose.
ARTICLE II
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STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT FINANCE
(BLGF)
Chapter 1 BLGF Central Operations
SEC. 4. Role of the Bureau of Local Government Finance (BLGF). -  The BLGF, 
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through the Real Property Valuation Service (RPVS) as hereinafter established, shall lead
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and manage the implementation of the provisions of this Act, and shall provide
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leadership in ensuring rationalized valuation of real properties transcending political
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boundaries. The BLGF shall have the following powers and functions:
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a) Together with the Bureau of Internal Revenue (BIR), develop, adopt, and
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maintain valuation standards consistent with generally accepted valuation standards,
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regulations and specifications for real property appraisal used for tax and other purposes,
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and ensure compliance therewith by LGUs and other concerned parties;
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b) Together with the BIR, review the SMVs as prepared by the provincial assessors,
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along with the municipal assessors and city assessors, including the municipal assessor in
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Metro Manila, for compliance with the real property valuation policies and standards,
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and recommend the same for approval of the Secretary of Finance for local and national
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taxation, and for other purposes;
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c) Provide technical assistance on real property appraisal matters to government
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agencies and instrumentalities, and coordinate or conduct the valuation and appraisal of
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special purpose properties, when requested;
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d) Provide leadership and policy direction to LGUs on real property valuation and
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appraisal for taxation and other purposes, including the development and maintenance of


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valuation standards, the regulation of valuation and appraisal activities and other related
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matters, and the promotion of valuation and appraisal trainings and seminars;
e) Maintain a roster of licensed local government appraisers and assessors;
f) Develop and maintain a comprehensive and up-to-date electronic database of real
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property transactions and prices of materials for buildings, machinery, and other
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structures;
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g) Conduct continuing study and research on valuation, and maintain an
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information based on current global and country trends and developments in real
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property valuation and appraisal;
h) Determine, fix and collect reasonable amounts to be charged as administration
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fees, fines, and penalties relative to the implementation of this Act; and
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i) Perform such other functions as are necessary, proper, and incidental to
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implement the provisions of this Act.
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SEC. 5. Establishment of the Real Property Valuation Service. -  To achieve the
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policy and objectives declared in this Act, there shall be established the Real Property
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Valuation Service, hereinafter referred to as the RPVS, within the BLGF.
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SEC. 6. Responsibilities of the BLGF Executive Director. -  The BLGF Executive
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Director shall ensure the efficient and effective perfonnance of the responsibilities set
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forth in this Act and for the overall internal management and governance of the RPVS.
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For this purpose, the BLGF Executive Director shall:
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a) Develop and implement policies, plans, programs, and operating standards for
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the attainment of the objectives of this Act;
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b) Provide policy direction and leadership in all aspects of valuation and appraisal
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and their implementation in the regional offices;
c) Joint with the Commissioner of Internal Revenue, recommend to the Secretary of
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Finance the approval of the SMVs prepared by the provincial assessors, together with


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municipal assessors and city assessors, including the municipal assessor in Metro Manila, 
for tax, both local and national, and other purposes;
d) Advise and assist other government agencies on matters pertaining to real 
property valuation and appraisal; and
e) Perform such other functions as may be provided by law, or required in 
pursuance of this Act.
SEC. 7. Creation of Central Consultative Committee.
a) A Central Consultative Committee shall be created, chaired by the BLGF 
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Executive Director and composed of a representative each from the:
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1. Bureau of Internal Revenue (BIR);
2. Department of Environment and Natural Resources (DENR);
3. Bangko Sentral ng Pilipinas (BSP);
4. National organization of government assessors;
5. National organization of appraisers in national government agencies;
6. Private appraisal sector;
7. League of Provinces;
8. League of Cities; and
9. League of Municipalities.
b) The member-representatives from the BIR, the DENR and the BSP must be
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perfonning valuation-related functions. The national organization of government
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assessors, the national organization of appraisers in national government agencies, the
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private appraisal sector and the League of Provinces, League of Cities and League of
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Municipalities shall be represented by their respective heads of organizations.
c) The Chairperson and members of the Committee shall not receive additional
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salary for the performance of their Rmctions. Members of the Committee who are not


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incumbent government officials or employees shall be entitled to honoraria, pursuant to
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existing laws and regulations.
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d) The Committee shall meet at the initiation of the Chairperson at least once every
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semester and shall have as many meetings as the Chairperson may deem necessary for
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the adoption of valuation standards.
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SEC. 8. Functions of the Central Consultative Committee. — The Central
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Consultative Committee shall serve as the consultative forum on matters pertaining to the
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setting, adoption, and maintenance of the valuation standards.
Chapter 2
BLGF Regional Operations
SEC. 9. Role of the BLGF Regional OJfices. -  The BLGF Regional Offices,
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through the Regional Director, shall be responsible for all matters relating to valuation
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and appraisal and the SMVs in the region, such as the:
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a) Implementation of the provisions of this Act and related policies, plans,
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programs, rules and regulations on real property valuation or appraisal of LGUs in the
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region;
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b) Joint with the BIR Regional Offices, review and endorse to the BIR
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Commissioner and to the BLGF Executive Director the proposed SMVs prepared by the
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provincial assessors, together with the municipal assessors and the city assessors in the
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region;
c) Provision for economical, efficient and effective service relating to the
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implementation of the provisions of this Act in the region;
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d) Coordination and consultation with regional offices of other government
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departments, bureaus and agencies within the region dealing with real property valuation
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and appraisal to LGUs in the region;


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e) Provision for leadership and policy direction in the area of real property 
valuation and appraisal to LGUs in the region;
f) Adoption and maintenance of a comprehensive and up-to-date regional electronic 
database of all regional real property-related transactions, and have custody of all 
transaction records submitted by local government assessors; and
g) Performance of other functions as may be assigned by the BLGF Executive 
Director.
SEC. 10. The Regional Consultative Committee.
(a) There shall be a Regional Consultative Committee which shall be chaired by the
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BLGF Regional Director and shall be composed of a representative each from the:
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1. BIR - Regional Office;
2. DENR - Regional Office;
3. Regional organization of government assessors;
4. Regional organization of national government appraisers;
5. Private appraisal sector within the region; and
6. Bankers association within the region.
(b) The members of the Regional Consultative Committee must be performing
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valuation and appraisal-related functions. Representatives from the regional organization
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of government assessors, regional organization of national government appraisers,
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private appraisal sector, and bankers association within the region shall be represented by
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the head of their respective regional organization.
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(c) The Committee shall meet at the initiation of the BLGF Regional Director at
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least once every quarter and shall have as many meetings as the BLGF Regional Director
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may deem necessary for the performance of its functions.
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SEC. 11. Functions of the Regional Consultative Committee. -  The Regional
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Consultative Committee shall serve as a consultative forum in the region for discussion


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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; LGU training in the region; appraisal and assessment concerns 
in general; and other matters as may be determined by the Committee.
ARTICLE 111
VALUATION AND APPRAISAL OF REAL PROPERTIES
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Chapter 1. Valuation Standards and Market Values 
SEC. 12. Development of Valuation Standards. -  Notwithstanding the provisions 
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of existing laws to the contrary, the BLGF jointly with the BIR, shall develop, adopt,
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maintain and implement uniform valuation standards which shall be used by all
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appraisers and assessors in the LGUs and other concerned parties in appraising or
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valuing lands, buildings, machinery and other real properties for taxation and other
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purposes. The valuation standards shall conform with generally accepted international
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valuation standards and principles.
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SEC. 13. Valuation and Appraisal of Rea! Property. -  For valuation purposes, all
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real properties, whether taxable or exempt, shall be valued or appraised at the market
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value prevailing in the locality where the property is situated, in conformity with the
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valuation standards adopted under this Act. The Secretary of Finance, as recommended
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by the BLGF shall promulgate the rules and regulations for the valuation and appraisal of
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real property pursuant to the provisions of this Act. It shall provide leadership in ensuring
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rationalized valuation of real properties transcending political boundaries.
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For real properties intended for low-cost or socialized housing and other programs
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of the government imbued with social policy objectives, the provisions of existing
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pertinent laws shall be applied after determination of the prevailing market value of these
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properties in accordance with internationally accepted valuation standards adopted under
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this Act.
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SEC. 14. Regional Technical Committee on Real Property Valuation (RTCRPV). 
-  The RTCRPV shall be co-chaired by the regional directors of the BLGF and the BIR 
having jurisdiction over the LGUs concerned. The head of the Local Treasury and 
Assessment offices of the BLGF and the Revenue District Officer/s of the BIR having 
jurisdiction shall serve as members.
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SEC. 15. Preparation of Schedule of Market Values. — Provincial assessors,
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together with municipal assessors and city assessors, including the municipal assessor in
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Metro Manila, shall prepare the SMVs for the different classes of real property situated
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within their respective LGUs, pursuant to the valuation standards, rules, regulations and
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other specifications set by the Department of Finance (DOF) as recommended by the
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BLGF and BIR. The SMVs shall be submitted to the RTCRPV for review and
compliance with other requirements not later than the thirty first (31st) day of October of 
the immediately preceding calendar year that the general revision of real property 
assessments shall be undertaken. A copy thereof reviewed by the RTCRPV, shall be 
furnished the concerned Sanggunian and the provincial governor, the municipal mayor, 
or the city mayor, as the case may be.
The reviewed SMVs shall be submitted to the BLGF Central Office and the BIR
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National Office. Upon the joint approval thereof by the BLGF Executive Director and the
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Commissioner of Internal Revenue, the Secretary of Finance shall approve the SMV
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within sixty (60) days from receipt of the same, otherwise the schedule shall be deemed
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approved.
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SEC. 16. Setting Assessment Levels and Tax Rates. -  The approved SMVs shall
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be transmitted to the concerned assessor who shall confer with the local chief executive
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regarding the approved SMVs. Likewise, the concerned assessor shall submit to the local
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chief executive a tax impact report of the new SMVs as against the existing assessment
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levels and tax rates, and shall provide the Sanggunian, through the Chairperson of the
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Sanggunian's Committee on Ways and Means a copy of such report.
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The local chief executive shall transmit the approved SMVs, together with the tax
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impact report, within fifteen (15) days from receipt of the same to the Sanggunian for the
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enactment of an ordinance setting the appropriate assessment levels and tax rates. The
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concerned Sanggunian shall enact such ordinance, upon the conduct of public hearings
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and proper consultations, within sixty (60) days from receipt thereof; otherwise, the
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existing ordinance on assessment levels and tax rates shall remain in force and effect.
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Upon the enactment by the Sanggunian of an ordinance for the assessment levels
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and tax rates, the local chief executive shall act within ten (10) days, in the case of cities
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and the municipality in Metro Manila, or within fifteen (15) days, in the case of
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provinces, to approve the same. Failure of the concerned local chief executive to act on
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the ordinance within the prescribed period shall render the same approved.
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SEC. 17. Publication of SMVs, Assessment Levels and Tax Rates. -  The approved
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ordinance, together with the SMVs, shall be published by the concerned LGU in a
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newspaper of local circulation once a week for two (2) consecutive weeks: Provided,
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however. That in provinces, cities and municipalities where there are no newspapers of
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local circulation, the same shall be posted in the provincial capitol, city or municipal hall
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and in two (2) other conspicuous public places therein. A list of LGUs whose SMVs have
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been approved shall be posted in the BLGF official website.
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SEC. 18. Use of Schedule of Market Values. -  The SMVs, as approved by the
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Secretary of Finance, shall be used for the general revision of real property assessments
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in LGUs, as basis for the determination of real property-related taxes imposed by
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national government agencies, and as benchmark for real property appraisal for other
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purposes.
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For purposes of computing any internal revenue tax, the BIR Commissioner shall 
adopt the SMVs, or the actual gross selling price in consideration, as stated in real 
property transaction documents, whichever is higher.
Notwithstanding the provisions of existing laws to the contrary, the SMVs shall 
cease to be the basis for the determination of national and local real property-related 
taxes five (5) years after the effectivity of its enacting ordinance. The BIR may, however, 
continue using the SMVs even beyond the said period for purposes of computing 
national internal revenue taxes.
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SEC. 19. Revision of Schedule of Market Values. -  The BLGF shall formulate a
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program for the regular revision of SMVs. All provincial assessors, together with the
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municipal assessors and the city assessors, including the municipal assessor in Metro
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Manila, shall undertake a revision of their respective SMVs within two (2) years from the
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effectivity of this Act. Thereafter, they shall undertake a general revision of SMVs and
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property assessments not earlier than three (3) years from the date of last revision, but not
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later than five (5) years.
Ih case of any significant change in the market where the property is located after
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the said SMVs have been approved and prior to the next revision, or where correction of
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errors and inequalities in any SMVs is deemed necessary, the provincial assessors,
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together with the municipal assessors and the city assessors, including the municipal
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assessor in Metro Manila, may recommend revisions to their existing SMVs to the
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RTCRPV, through the Regional Director of the BLGF having jurisdiction over the LGU
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concerned.
Such revision/s shall be subject to review by the concerned RTCRPV and 
recommendation by the BLGF Executive Director and the Commissioner of Internal
Revenue, for approval by the Secretary of Finance within ninety days (90) from the date 
of receipt.
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SEC. 20. Conduct of Capacity Building Interventions. -  For the effective
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implementation of this Act, the BLGF shall develop and conduct the necessary training
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for all local assessors and other local officials and staff on the preparation of the SMVs in
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accordance with internationally accepted valuation standards, concepts, principles and
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practices, conduct of SMVs impact studies; preparation of compliance reports; and other
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subject areas.
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Chapter 2
Development and Maintenance of 
Real Property Database
SEC. 21. 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 the prices of 
machinery. For this purpose, the BLGF is hereby authorized to require the mandatory 
submission of necessary documents from the concerned officials or employees of 
national government offices or instrumentalities, LGUs and the private sector. The 
updated database shall be made available to the LGUs, national government agencies and 
the private sector: Provided, That the Commissioner of Internal Revenue or his duly 
authorized representative shall be allowed access to the database without need of prior 
approval.
SEC. 22. Duty of Register of Deeds to Supply Assessors with 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 the 
entire registry every three (3) months and copies of all contracts selling, transferring or
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otherwise converting, leasing, or mortgaging real property registered every end of the
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month.
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The abstract shall include brief but sufficient description of the real properties
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entered therein, their present owners, and the dates of their most recent transfer or
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alienation and shall be accompanied by copies of corresponding deeds of sale, donation
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or partition or other forms of alienation.
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SEC. 
23. Duty of Official Issuing Building Perniits or Certificates of
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Registration of Machinery to Transniit Copy to the Assessor. -  Any public official or
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employee who may now or hereafter be required by law or regulation to issue to any
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person a permit for the construction, addition, repair or renovation of a building, or
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permanent improvement on land, or a certificate of registration for any machinery,
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including machines, mechanical contrivances and apparatus attached or affixed on land
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or to another real property, shall transmit a eopy of such permit or certification within
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thirty (30) days of its issuance to the assessor of the province, city or municipality where
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the property is situated.
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SEC. 24. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor. -  It
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shall be the duty of all geodetic engineers, public or private, to furnish free of charge, the
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assessor of the province, city or municipality where the land is located, a copy of the blue
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or white print of eaeh of all approved original subdivision plans or maps of surveys, duly
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signed by a senior geodetic engineer, executed by them every end of the month from
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receipt of such approved plans from the Land Management Bureau (LMB), the Land
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Registration Authority (LRA), or the Housing and Land Use Regulatory Board
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(HLURB), as the case may be.
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SEC. 25. Duty of Assessors to Transmit Documents to the BLGF. -  It shall be the
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duty of the assessors to transmit to the concerned BLGF Regional Office all real property
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transactions data from the Register of Deeds, and the names of the official issuing the
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building permit and those of the geodetic engineers within one (1) month after the receipt 
of such data. The BLGF 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 
SEC. 26. Appointment of Assessors. — The local chief executive shall appoint the 
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provincial, city and municipal assessors and assistant assessors, as the case may be, in 
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accordance with civil service law, rules and regulations and the following guidelines:
in the case of provincial and assistant provincial assessors and city and assistant
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city assessors, the appointee shall be chosen from the list of at least three (3) ranking
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eligible recommendees within the region, as endorsed by the DOF Secretary as suitable
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and qualified for appointment;
the case of municipal and assistant municipal assessors, the appointee shall be
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chosen from the list of at least three (3) ranking eligible recommendees within the
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province, as endorsed by the DOF Secretary as suitable and qualified for appointment;
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and
c) Ih the case of city and assistant city assessors, and municipal and assistant
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municipal assessors in Metro Manila, the appointee shall be chosen from the list of at
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least three (3) ranking eligible recommendees within the region, as endorsed by the DOF
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Secretary as suitable and qualified for appointment.
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The assessors shall be under the technical supervision of the BLGF, primarily
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through a system of compliance reporting and of capacity-building programs through
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education and training.
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SEC. 27. Qualifications of Local Government Assessors. -  No person shall be
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appointed assessor or assistant assessor unless one is a citizen of the Philippines, a
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resident of the region for a provincial or city assessor/assistant assessor, and of the
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province for a municipal assessor/assistant assessor, a registered and licensed appraiser,
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and of good moral character. The appointee must have experience in real property
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valuation or assessment work or in any suitable field for at least five (5) years in the case
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of the provincial or city assessor, and three (3) years in the case of the municipal
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assessor.
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All incumbent assessors holding permanent appointments shall enjoy security of
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tenure and shall continue to perform their functions without the need for reappointment
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and without diminution of status, rank and salaiy grade. Those with temporary
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appointments shall be given the opportunity to qualify for permanent appointment as
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assessor or assistant assessor within a period to be determined by the DOF upon the
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effectivity of this Act.
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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 infomiation required pursuant to Sections 22, 23, 24 and 25 of this Act 
shall be punished by a fine equivalent to the official's or employee's six (6) months basic 
salary, or by suspension from the government 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 deviations or departures from the
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standards in the valuation and appraisal of real property, shall be punished by a fine
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equivalent to the official's or employee's basic salary for a period of one (1) month to six
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(6) months, or by suspension from the government service for not more than one (1)
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year, or both, at the discretion of the competent authority.
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SEC. 30. Failure to Prepare Schedule of Market Values. -  An assessor who, for
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unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs
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within the period set forth in this Act shall be meted a fine equivalent to the official's or
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employee's basic salary for a period of one (1) month to six (6) months, or by suspension
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from the government service for not more than one (1) year, or both, at the discretion of
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the competent authority. This shall also be a ground for administrative and criminal
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liability in accordance with the provisions of the Republic Act. No. 9646, otherwise
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known as the "Real Estate Service Act of the Philippines".
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SEC. 31. Violations of Other Provisions. -  Any person, whether natural or
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juridical, who violates any provision of this Act other than those punishable under
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Sections 28, 29 and 30 hereof shall, when warranted, be dealt with under applicable
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existing laws.
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SEC. 32. Taxpayers' Remedies in Case of Erroneous Assessment of Real
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Properties. -  The provisions of Sections 226 (Local Board of Assessment Appeals) and
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229 (Action by the Local Board of Assessment Appeals) of Republic Act No. 7160,
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otherwise known as the "Local Government Code of 1991 ", shall apply in all cases of
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appeals as remedies for the taxpayers in the assessment of their properties.
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ARTICLE V
TRANSITORY PROVISIONS 
SEC. 33. Transitory Guidelines.
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(a) LGUs which are in the process of revising their SMVs, upon the effectivity of 
this Act, shall continue with such revisions in accordance with Section 19 of this Act: 
Provided, That proper notification and coordination with the BLGF shall be undertaken.
(b) In case the SMV is not yet available or revised, the BIR Commissioner shall 
adopt the existing SMV, zonal values or the actual price in consideration as stated in real 
property transaction documents, whichever is higher, for purposes of computing any 
internal revenue tax.
SEC. 34. 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 the city 
assessors, including the municipal assessor in Metro Manila, that have been approved by 
their respective Sanggunians for real property taxation purposes shall continue to be in 
force and effect until repealed, superseded, modified, revised, set aside, or replaced by 
the values provided under the new SMVs as approved in accordance with Section 16 of 
this Act, which shall be within two (2) years upon the effectivity of this Act.
ARTICLE VI
FUNDING REQUIREMENTS
SEC. 
35. Budgetary Requirements for the Revision of Schedule of Market 
Values. -  Each local Sanggunian shall appropriate the necessary funds from locally 
generated revenues, the Internal Revenue Allotment (IRA), or such other sources every 
fiscal year.
The accumulated amount so appropriated shall be known as the Real Property Tax 
Administration Fund (RPTAF) which shall be used for the proper implementation of the 
regular revision of the SMVs and the general revision of real property assessments, and 
the administration of real property taxes in all LGUs.
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SEC. 36. Appropriations. -  The amount necessary for the implementation of this
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Act shall be included in the annual General Appropriations Act.
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ARTICLE VII
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MISCELLANEOUS PROVISIONS
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SEC. 37. Implementing Rules and Regulations (IRR). -  Within six (6) months
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after the effectivity of this Act, the DOF, in consultation with the concerned parties, shall
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issue the IRR for the effective implementation of this Act: Provided, That the failure of
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the DOF to promulgate the said rules and regulations shall not prevent the
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implementation of this Act upon its effectivity.
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SEC. 38. Suppletory Application of Existing Laws. -  The provisions of Republic
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Act No. 7160, otherwise known as the "Local Government Code of 1991", and other
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laws consistent with this Act shall have suppletory effect.
SEC. 39. Repealing Clause.
(a) Sections 188, 199(o), 201, 202, 209(a), 212, 214, 219, 220, 472(a) paragraph 1,
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472(b)(8), and 473(a) paragraph 1 of Republic 23 Act No. 7160, otherwise known as the
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"Local Government Code of 1991", as amended, are hereby repealed;
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b) Sections 19, 135(a), 138, 198(a), 218 and 224(a) of Republic Act No. 7160,
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otherwise known as the "Local Government Code of 1991 ", are also amended or
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modified accordingly;
c) Section 3(n) of Presidential Decree No. 464 of 1974 is hereby repealed;
d) Section 6 of Republic Act No. 10752, otherwise known as The Right-of-Way
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Act" is hereby repealed;
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e) Section 4(a) and (b) of Republic Act No. 8974 are hereby repealed;
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f) Section 9 of Presidential Decree No. 921 on the administration of local financial
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services in Metropolitan Manila and creating Local Treasury and Assessment Districts, is
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hereby repealed;
g) Likewise, Sections 6(E), 24(D), 27(D)(5), 88(B) and 102 of 13 Republic Act No. 
8424, otherwise known as the Tax Refonn Act of 1997", are likewise amended or
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modified accordingly;
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h) Sections 4(h) and 9 of Presidential Decree No. 538 on the power of Philippine
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Veterans Investment Development Corporation Industrial Authority to collect real
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property tax are likewise amended or modified accordingly; and 
i) All laws, presidential decrees, executive orders, presidential proclamations, rules
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and regulations or parts thereof contrary to or inconsistent with this Act are hereby
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repealed, superseded or modified accordingly.
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SEC. 40. Separability Clause. -  If any section or provision of this Act shall be
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declared unconstitutional or invalid, the other sections or provisions not affected thereby
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shall continue to be in full force and effect.
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SEC. 
41. Effectivity. -  This Act shall take effect fifteen (15) days after its
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complete publication in the Official Gazette or in a newspaper of general circulation.
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Approved,
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