EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
460
.Cii f* r^I I l K * t
■19 
JUL 15 AlO -02
S. No.
rl::
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
AMENDING SECTIONS 212 AND 214 OF REPUBLIC ACT NO. 7160, AS 
AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 
1991
EXPLANATORY NOTE
This proposed measure seeks to amend Republic Act No. 7160, with regard to 
appraisal and assessment of real property.
It is common knowledge that real property tax is a single major source of 
income of local governments. However, there are several reasons why there is an 
apparent under collection of real property taxes:
a. There is no uniform method of appraising real property among local 
governments;
b. Revision or updating the schedule of fair market values is so infrequent, 
thus, resulting in a low tax base even as assets in the market continue to 
appreciate;
c. The approval of the schedule of fair market values is vested in the 
Sangguniang Panlalawigan/Panlungsod. Considering the political nature of 
the local Sanggunian, the tendency is to forego revisions in the valuation 
schedule or to keep the property value understated.
Under this propose measure, a Technical Valuation Committee will be created 
which is tasked to formulate a uniform method of assessment and appraisal with the 
end in view of maximizing the potential tax collection from this source.
Foregoing considered, approval of this bill is earnestly urged.
R A M O ^O N G  REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
460
S. No.
' {  ■ ,  v 
= ~
■ ... ^ i£)fi:rr of tii s  
:
■19 
JUL 15 A10-.02
REC.-iV-
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
AMENDING SECTIONS 212 AND 214 OF REPUBLIC ACT NO. 7160, AS 
AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 
1991
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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Section 1. Section 212 of the Local Government Code of 1991 is hereby
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amended to read as follows:
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"Sec. 212. Preparation of Schedule of Fair Market Values. -  Before any
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general revision of property assessment is made pursuant to the provisions of
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this Title, [there shall be prepared a schedule of fair market values by the
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provincial, city and the municipal assessors of the municipalities within the
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Metropolitan Manila Area] A SCHEDULE OF FAIR MARKET VALUES SHALL
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BE PREPARED BY A TRECHNICAL VALUATION COMMITTEE OF EACH
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PROVINCE, CITY OR MUNICIPALITY for the different classes of real
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property situated in their respected local government units for enactment by
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Ordinance of the Sanggunian concerned.
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THE TECHNICAL VALUATION COMMITTEE SHALL BE COMPOSED
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OF THE PROVINCIAL, CITY OR MUNICIPAL ASSESSOR, PROVINCIAL,
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CITY OR MUNICIPAL PLANNING AND DEVELOPMENT OFFICER, A


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REPRESENTATIVE FROM THE BUREAU OF INTERNAL REVENUE (BIR), 
A REPRESENTATIVE FROM THE BUREAU OF LOCAL GOVERNMENT 
FINANCE (BLGF), AND THE PRIVATE SECTOR. THE REPRESENTATIVE 
FROM THE PRIVATE SECTOR MUST BE DIRECTLY INVOLVED IN REAL 
ESTATE APPRAISAL."
Sec. 2. Section 214 of the Local Government Code of 1991 is hereby amended 
to read as follows:
"Sec. 214. Amendment of Schedule of Fair Market Values. -  The 
[provincial, 
city 
or 
municipal 
assessor] 
TECHNICAL 
VALUATION 
COMMITTEE may recommend to the Sanggunian concerned amendments to 
correct errors in valuation of the schedule of fair market values. 
The 
Sanggunian concerned shall, by Ordinance act upon the recommendation 
within ninety (90) days from receipt thereof.
Sec. 3. Repealing Clause. -  All laws or parts thereof, decrees, orders, rules and 
regulations inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly.
Sec. 4. Separability Clause. -  If any of the provisions of this Act is declared 
invalid, the other provisions not affected thereby shall remain in full force and effect.
Sec. 5. Effectivity. -  This Act shall take effect fifteen (15) days following its 
publication in two (2) newspapers of general circulation.
Approved,