Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by Representative Rex Gatchalian 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND 
ASSESSMENT IN THE PHILIPPINES, AMENDING FOR THIS PURPOSE 
SECTIONS 199, 201, 202, 207, 212, 214, 218, 219 AND 221 OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL 
GOVERNMENT CODE OF 1991, AS AMENDED, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
The 1987 Constitution of the Philippines empowered each local government 
unit with the power to create its own sources of revenues and to levy taxes, 
fees, and charges.1 This power is put into detail in the Local Government Code 
of 1991. Under the Code, a province or city or municipality within 
Metropolitan Area may levy a real property tax on all forms of real property 
such as land, building, machinery and other improvement. 
Unfortunately, there are major concerns in the current valuation and 
assessment system, and collection of real property taxes. This bill aims to 
address the (1) lack of uniform valuation systems, methodologies, and 
standards that govern the valuation of real property; (2) outdated real 
property valuations, (3) unreliable and non-transparent valuation system, 
and (4) presence of political intervention in property valuation.  
The reforms in the real property valuation and assessment of local 
government units in the Philippines would maximize local revenue generation 
1 Section 5, Article X, The 1987 Constitution of the Philippines 
September 29, 2022
3:52 pm
5289


and ultimately, empower LGUs to have enough funding to provide basic 
services and facilities for their constituents within their respective territories. 
The necessity of empowering LGUs to efficiently collect real property taxes is 
boldened by the recent promulgation of Executive Order No. 138, s. 2021 
which orders the full devolution of basic functions and services of the national 
government to local government units. Without sufficient funding from the 
national government to support local programs, local government units must 
henceforth be efficient in the management and administration of its local 
revenue sources.  
In view of the foregoing considerations, approval of this bill is earnestly 
sought. 
HON. REX GATCHALIAN 
Representative 
1st District, Valenzuela City 


 1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by Representative Rex Gatchalian 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND 
ASSESSMENT IN THE PHILIPPINES, AMENDING FOR THIS PURPOSE 
SECTIONS 199, 201, 202, 207, 212, 214, 218, 219 AND 221 OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL 
GOVERNMENT CODE OF 1991, AS AMENDED, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Real 
1 
Property Valuation and Assessment Reform Act”. 
2 
3 
SEC. 2. Section 199 of Republic Act (RA) No. 7160, otherwise known as 
4 
the “Local Government Code of 1991”, as amended, is hereby amended and 
5 
renumbered as follows: 
6 
7 
“Section 199. Definitions. – When used in this Title: 
8 
9 
x x x; 
10 
11 
(F) “ARM’S LENGTH TRANSACTION” IS A TRANSACTION
12 
BETWEEN 
INDEPENDENT, 
UNRELATED 
PARTIES
13 
INVOLVING NO IRREGULARITY;
14 
15 
(f)(G) x x x; 
16 
(g)(H) x x x; 
17 
(h)(I) x x x; 
18 
(i)(J) x x x; 
19 
(j)(K) x x x; 
20 
(k)(L) x x x; 
21 
22 
(l)(P) “Fair Market Value” is the price at ESTIMATED AMOUNT 
23 
FOR which a property [may be sold by a seller who is not 
24 
5289


 2
compelled to sell and bought by a buyer who is not compelled 
1 
to buy] SHALL EXCHANGE ON THE DATE OF VALUATION 
2 
BETWEEN A WILLING BUYER AND A WILLING SELLER IN 
3 
ARM’S 
LENGTH 
TRANSACTION, 
AFTER 
PROPER 
4 
MARKETING, WHEREIN THE PARTIES HAD EACH ACTED 
5 
KNOWLEDGEABLY, 
PRUDENTLY, 
AND 
WITHOUT 
6 
COMPULSION; 
7 
 
8 
(p)(Q) x x x; 
9 
(q)(R) x x x; 
10 
(r)(S) x x x; 
11 
(s)(T) x x x; 
12 
(t)(U) x x x; 
13 
(u)(V) x x x.” 
14 
 
15 
SEC. 2. Section 201 of RA No. 7160, as amended, is hereby amended 
16 
to read as follows: 
17 
 
18 
“Section 201. Appraisal VALUATION of Real Property – All 
19 
real property, whether taxable or exempt, shall be VALUED OR 
20 
appraised BASED ON PREVAILING at the current [and fair] 
21 
market valueS prevailing in the locality where the property is 
22 
situated. The Department of Finance shall promulgate 
23 
necessary rules and regulations for the classification, appraisal 
24 
VALUATION, and assessment of real property pursuant to the 
25 
provisions of this Code. 
26 
 
27 
FOR REAL PROPERTY INTENDED FOR LOW-COST AND 
28 
SOCIALIZED HOUSING AND OTHER PROGRAMS OF THE 
29 
GOVERNMENT 
IMBUED 
WITH 
SOCIAL 
POLICY 
30 
OBJECTIVES, THE PROVISIONS OF EXISTING PERTINENT 
31 
LAWS SHALL BE APPLIED AFTER THE DETERMINATION OF 
32 
THE PREVAILING MARKET VALUE OF THESE PROPERTIES 
33 
IN ACCORDANCE WITH INTERNATIONALLY ACCEPTED 
34 
VALUATION STANDARDS. 
35 
 
36 
THE BLGF SHALL DEVELOP, ADOPT, MAINTAIN, AND 
37 
IMPLEMENT UNIFORM VALUATION STANDARDS WHICH 
38 
SHALL BE USED BY ALL APPRAISERS AND ASSESSORS IN 
39 
THE LGUS AND OTHER CONCERNED PARTIES IN THE 
40 
APPRAISAL OR VALUATION OF LANDS, BUILDINGS, 
41 
MACHINERY 
AND 
OTHER 
REAL 
PROPERTIES 
FOR 
42 
TAXATION AND OTHER PURPOSES. THE VALUATION 
43 
STANDARDS SHALL CONFORM WITH INTERNATIONALLY 
44 
ACCEPTED VALUATION STANDARDS AND PRINCIPLES.” 
45 
 
46 


 3
SEC. 3. Section 202 of RA No. 7160, as amended, is hereby amended 
1 
to read as follows: 
2 
 
3 
“Section 202. Declaration of Real Property by the Owner or 
4 
Administrator – It shall be the duty of all persons, natural or 
5 
juridical, owning or administering real property, including the 
6 
improvements therein, within a city or municipality, or their 
7 
duly authorized representative, to prepare, or cause to be 
8 
prepared, and file with the provincial, city or municipal 
9 
assessor, a sworn statement declaring the true value of their 
10 
property, whether previously declared or undeclared, taxable or 
11 
exempt, which shall be the current and fair market value of the 
12 
property, as determined by the declarant. Such declaration 
13 
shall contain a description of the property sufficient in detail to 
14 
enable the assessor or his deputy to identify the same for 
15 
assessment purposes. The sworn declaration of real property 
16 
herein referred to shall be filed with the assessor concerned 
17 
once every three (3) years during the period from January first 
18 
(1st) to June thirtieth (30th) OF THE FIRST YEAR, commencing 
19 
with the calendar year 1992.” 
20 
 
21 
SEC. 4. Section 207 of RA No. 7160, as amended, is hereby amended 
22 
to read as follows: 
23 
 
24 
“Section 207. Real Property Identification INFORMATION 
25 
System. –  
26 
 
27 
THE BLGF SHALL DEVELOP AND MAINTAIN AN UP-TO-
28 
DATE ELECTRONIC DATABASE OF THE SALE, EXCHANGE, 
29 
LEASE, MORTGAGE, DONATION, TRANSFER AND ALL 
30 
OTHER 
REAL 
PROPERTY 
TRANSACTIONS 
AND 
31 
DECLARATIONS IN THE COUNTRY AND ON THE COST OF 
32 
CONSTRUCTION OR RENOVATION OF BUILDINGS AND 
33 
OTHER 
STRUCTURES, 
AND 
ON 
THE 
PRICES 
OF 
34 
MACHINERY. 
35 
 
36 
FOR THIS PURPOSE, THE BLGF SHALL REQUIRE THE 
37 
MANDATORY SUBMISSION OF NECESSARY DOCUMENTS 
38 
FROM THE CONCERNED OFFICIALS OR EMPLOYEES OF 
39 
NATIONAL 
GOVERNMENT 
OFFICES 
OR 
40 
INSTRUMENTALITIES, LGUS AND THE PRIVATE SECTOR: 
41 
PROVIDED, 
THAT 
IN 
THE 
CASE 
OF 
GOVERNMENT 
42 
AGENCIES AND INSTRUMENTALITIES, THE MANDATORY 
43 
SUBMISSION OF DOCUMENTS AND INFORMATION SHALL 
44 
BE SUBJECT TO THE PROHIBITION OF DISCLOSURE OF 
45 
CERTAIN INFORMATION UNDER THE DATA PRIVACY ACT 
46 


 4
AND OTHER EXISTING LAWS. THE UPDATED DATABASE 
1 
SHALL BE MADE AVAILABLE TO THE LGUS, NATIONAL 
2 
GOVERNMENT AGENCIES AND THE PRIVATE SECTOR: 
3 
PROVIDED, FURTHER, THAT THE COMMISSIONER OF 
4 
INTERNAL 
REVENUE 
OR 
A 
DULY 
AUTHORIZED 
5 
REPRESENTATIVE SHALL BE ALLOWED ACCESS TO THE 
6 
DATABASE 
WITHOUT 
NEED 
OF 
PRIOR 
APPROVAL: 
7 
PROVIDED, FINALLY, THAT NON-SUBMISSION OF THE 
8 
REQUIRED DOCUMENTS TO THE BLGF WILL SUBJECT THE 
9 
CONCERNED 
OFFICIAL 
OR 
EMPLOYEE 
TO 
10 
ADMINISTRATIVE LIABILITIES UNDER THE LAW. 
11 
 
12 
 
13 
PROVINCIAL, CITY OR MUNICIPAL ASSESSORS SHALL 
14 
KEEP AND FILE all declarations of real property made under 
15 
the provisions of this Title shall be kept and filed under a 
16 
uniform classification system. to be established by the 
17 
provincial, city or municipal assessor. 
18 
 
19 
TO FURTHER ENSURE THE EFFICIENCY OF REAL 
20 
PROPERTY 
TAX 
ADMINISTRATION, 
ALL 
PROVINCES, 
21 
CITIES AND MUNICIPALITIES SHALL AUTOMATE THEIR 
22 
OPERATIONS, 
ADOPT 
TAX 
MAPPING 
TECHNOLOGY, 
23 
MAINTAIN SOFTWARE-ENABLED VALUATION SYSTEMS, 
24 
UNDERTAKE 
REGULAR 
DATA 
CLEANSING, 
AND 
25 
COMPUTERIZED RECORDS MANAGEMENT. THE NATIONAL 
26 
GOVERNMENT, 
THROUGH 
THE 
DEPARTMENT 
OF 
27 
INFORMATION AND COMMUNICATIONS TECHNOLOGY, 
28 
SHALL PROVIDE THE APPROPRIATE EQUIPMENT AND 
29 
CONNECTIVITY, INFORMATION AND COMMUNICATIONS 
30 
TECHNOLOGY 
PLATFORM, 
AND 
THE 
APPROPRIATE 
31 
TRAINING AND CAPABILITY BUILDING PROGRAMS TO 
32 
THIRD CLASS UP TO SIXTH CLASS MUNICIPALITIES AND 
33 
PROVINCES 
TO 
ENSURE 
COMPLIANCE 
WITH 
THIS 
34 
SECTION.”  
35 
 
36 
SEC. 5. Section 212 of RA No. 7160, as amended, is hereby amended 
37 
to read as follows: 
38 
 
39 
“SEC. 212. Preparation of Schedule of Fair Market 
40 
Values. - Before any general revision of property assessment is 
41 
made pursuant to the provisions of this Title, there shall be 
42 
prepared a schedule of fair market values by the provincial 
43 
ASSESSORS, TOGETHER WITH MUNICIPAL ASSESSORS, 
44 
AND city ASSESSORS, INCLUDING and the municipal 
45 
assessors IN of the municipalities within the Metropolitan 
46 


 5
Manila, Area SHALL PREPARE  THE SCHEDULE OF MARKET 
1 
VALUES (SMV) for the different classes of real property situated 
2 
in WITHIN their respective local government units, for 
3 
enactment by ordinance of the sanggunian concerned. 
4 
PURSUANT 
TO 
THE 
VALUATION 
STANDARDS 
AND 
5 
SPECIFICATIONS SET BY THE DEPARTMENT OF FINANCE 
6 
(DOF).  
7 
 
8 
THE PREPARATION OF THE SMVS SHALL BE COMPLETED 
9 
WITHIN FIVE (5) MONTHS FOLLOWING THE NOTICE FROM 
10 
THE BUREAU OF LOCAL GOVERNMENT FINANCE TO ALL 
11 
CONCERNED LOCAL ASSESSORS TO SUBMIT THEIR 
12 
REVISED SMVS. THE NOTICE SHALL BE MADE ONCE 
13 
EVERY THREE (3) YEARS DURING THE MONTH AFTER THE 
14 
PERIOD SET IN SEC. 202 OF THIS CODE. 
15 
 
16 
UPON ITS COMPLETION, THE LOCAL ASSESSOR SHAL 
17 
SUBMIT THE PROPOSED SMV TO THE BLGF REGIONAL 
18 
OFFICE. WITHIN NINETY (90) DAYS FROM RECEIPT 
19 
THEREOF, 
THE 
BLGF 
REGIONAL 
OFFICE, 
IN 
20 
COORDINATION WITH THE BIR REGIONAL OFFICE, SHALL 
21 
REVIEW AND ENDORSE THE PROPOSED SMV TO THE BLGF 
22 
EXECUTIVE DIRECTOR AND THE COMMISSIONER OF 
23 
INTERNAL REVENUE: PROVIDED, THAT, IN THE CASE OF 
24 
CITIES AND THE LONE MUNICIPALITY WITHIN THE 
25 
METROPOLITAN MANILA AREA, THE PROPOSED SMV 
26 
SHALL BE SUBMITTED TO, AND REVIEWED BY THE BLGF 
27 
CENTRAL 
OFFICE, 
IN 
COORDINATION 
WITH 
THE 
28 
CONCERNED 
BIR 
REGIONAL 
OFFICE: 
PROVIDED, 
29 
FURTHER, THAT THE REQUIREMENTS FOR VALIDITY OF 
30 
THE SMV SHALL BE GOVERNED BY THE GUIDELINES TO 
31 
BE 
ISSUED 
BY 
THE 
DEPARTMENT 
OF 
FINANCE,  
32 
INCLUDING THE CONDUCT OF AT LEAST ONE (1) PUBLIC 
33 
CONSULTATION ON THE PROPOSED SMV. THE POWER OF 
34 
THE SECRETARY TO APPROVE THE SMV SHALL NOT BE 
35 
CONSTRUED TO ABRIDGE THE POWER OF LGUS TO 
36 
ADJUST ASSESSMENT LEVELS AND TAX RATES IN 
37 
ACCORDANCE WITH SECTION 218 OF THIS ACT, AND TO 
38 
PROVIDE RELIEF TO RESIDENTIAL REAL PROPERTY 
39 
OWNERS AS DEEMED NECESSARY.  
40 
 
41 
The schedule of fair market values shall be published in a 
42 
newspaper of general circulation in the province, city or 
43 
municipality concerned, or in the absence thereof, shall be 
44 
posted in the provincial capitol, city or municipal hall and in two 
45 


 6
other 
conspicuous 
public 
places 
therein.” 
1 
 
2 
SEC. 6. A new section designated as Section 212-A of RA No. 7160, as 
3 
amended, is hereby added to read as follows: 
4 
 
5 
“SEC. 212-A. APPROVAL OF SCHEDULE OF MARKET VALUE. 
6 
– THE SECRETARY OF FINANCE SHALL APPROVE THE SMV 
7 
IN ACCORDANCE WITH INTERNATIONALLY ACCEPTED 
8 
VALUATION STANDARDS, WITHIN THIRTY (30) DAYS FROM 
9 
RECEIPT OF THE JOINT ENDORSEMENT OF THE BLGF 
10 
EXECUTIVE DIRECTOR AND THE COMMISSIONER OF 
11 
INTERNAL REVENUE; OTHERWISE, SAID SCHEDULE SHALL 
12 
BE DEEMED APPROVED. IN CASE OF SUDDEN CHANGES IN 
13 
THE MARKET VALUES, INCLUDING BUT NOT LIMITED TO, 
14 
ANCESTRAL DOMAIN, PUBLIC LAND, AGRARIAN REFORM 
15 
BENEFICIARIES, AND OTHER VULNERABLE SECTORS, THE 
16 
ASSESSOR IS MANDATED TO RECOMMEND TO THE 
17 
SANGGUNIAN TAX RATES AND ASSESSMENT LEVELS THAT 
18 
WILL MAINTAIN OR MINIMALLY AFFECT THE REAL 
19 
PROPERTY 
TAX 
DUE 
FOR 
THE 
AFOREMENTIONED 
20 
PROPERTY. 
21 
 
22 
THE APPROVED SMVs SHALL TAKE EFFECT FIFTEEN (15) 
23 
DAYS AFTER ITS PUBLICATION BY THE DOF IN THE 
24 
OFFICIAL GAZETTE OR IN AT LEAST TWO (2) NEWSPAPERS 
25 
OF GENERAL CIRCULATION, AND POSTING IN THE 
26 
RESPECTIVE PROVINCIAL CAPITOL, CITY HALL AND 
27 
MUNICIPAL HALL, AND IN TWO (2) OTHER CONSPICUOUS 
28 
PUBLIC PLACES WITHIN THE LGU COVERED BY THE 
29 
APPROVED SMV. 
30 
 
31 
THE DOF AND THE CONCERNED LGUS SHALL POST THE 
32 
APPROVED SMV IN THEIR OFFICIAL WEBSITE.” 
33 
 
34 
SEC. 7. A new section designated as Section 212-B of RA No. 7160, as 
35 
amended, is hereby added to read as follows: 
36 
 
37 
“SEC. 212-B. MANDATORY REVISION OF SCHEDULE OF 
38 
MARKET 
VALUE. 
– 
ALL 
PROVINCIAL 
ASSESSORS, 
39 
TOGETHER WITH THE MUNICIPAL ASSESSORS AND THE 
40 
CITY ASSESSORS, INCLUDING THE MUNICIPAL ASSESSOR 
41 
WITHIN THE METROPOLITAN MANILA AREA, SHALL 
42 
UPDATE THEIR RESPECTIVE SMV, SUBJECT TO THE 
43 
PROCEDURES PROVIDED IN SECTION 212-A, ONCE EVERY 
44 
THREE (3) YEARS. 
45 
 
 
46 


 7
THE BLGF SHALL PREPARE THE SCHEDULE FOR THE 
1 
UPDATING OF THE SMV IN ALL PROVINCES AND CITIES, 
2 
INCLUDING 
THE 
MUNICIPALITY 
WITHIN 
THE 
3 
METROPOLITAN MANILA AREA. 
4 
 
5 
FAILURE TO REVISE THEIR RESPECTIVE SCHEDULE OF 
6 
MARKET VALUES WITHOUT JUSTIFIABLE CAUSE MAY 
7 
SUBJECT THE RESPONSIBLE OFFICIAL OR PROPERTY 
8 
OWNER FOR LIABILITIES UNDER THE LAW.” 
9 
 
10 
SEC. 8. Section 214 of RA No. 7160, as amended, is hereby amended 
11 
to read as follows: 
12 
 
13 
“SEC. 214. Amendment UPDATING of THE Schedule of Fair 
14 
Market Values. - The provincial, city or municipal assessor 
15 
may recommend to the sanggunian concerned amendments to 
16 
correct errors in valuation in the schedule of fair market values. 
17 
The sanggunian concerned shall, by ordinance, act upon the 
18 
recommendation within ninety (90) days from receipt thereof.  
19 
 
20 
IN CASE OF SIGNIFICANT CHANGE IN THE MARKET VALUE 
21 
WHERE THE PROPERTY IS LOCATED AFTER THE SMV 
22 
HAVE BEEN APPROVED AND PRIOR TO THE NEXT 
23 
REVISION, 
SUCH 
AS 
IN 
TIMES 
OF 
CALAMITIES, 
24 
DISASTERS, 
MAN-MADE 
OR 
NATURAL 
AND 
OTHER 
25 
ADVERSE CIRCUMSTANCES, OR WHERE CORRECTION OF 
26 
ERRORS AND INEQUALITIES IN THE SMV IS DEEMED 
27 
NECESSARY, 
OR 
UPON 
THE 
DIRECTIVE 
OF 
THE 
28 
SECRETARY OF FINANCE, THE PROVINCIAL AND CITY 
29 
ASSESSORS SHALL RECOMMEND REVISIONS TO THE 
30 
EXISTING 
SMV 
TO 
THE 
BLGF 
REGIONAL 
OFFICE, 
31 
THROUGH THE BLGF REGIONAL DIRECTOR EXERCISING 
32 
JURISDICTION OVER THE LGU CONCERNED: PROVIDED, 
33 
THAT THE CITY ASSESSORS AND MUNICIPAL ASSESOR 
34 
WITHIN THE METROPOLITAN MANILA AREA, SHALL 
35 
RECOMMEND REVISIONS TO THE EXISTING SMV TO THE 
36 
BLGF CENTRAL OFFICE. 
37 
 
38 
SUCH REVISION OR REVISIONS SHALL BE SUBJECT TO 
39 
REVIEW BY THE CONCERNED BLGF REGIONAL OFFICE 
40 
AND 
THE 
BIR 
REGIONAL 
OFFICE, 
WHICH 
SHALL 
41 
COMPLETE 
THE 
REVIEW 
AND 
SUBMIT 
THEIR 
42 
RECOMMENDATIONS 
TO 
THE 
BLGF 
EXECUTIVE 
43 
DIRECTOR, IN ACCORDANCE WITH SECTIONS 212 AND 
44 
212-A HEREOF.” 
45 
 
46 


 8
SEC. 9. A new section designated as Section 214-B of RA No. 7160, as 
1 
amended, is hereby added to read as follows: 
2 
 
3 
“SEC. 214-B. USE OF SCHEDULE OF MARKET VALUES. – 
4 
THE APPROVED SMV SHALL BE USED AS A BASIS FOR THE 
5 
DETERMINATION OF REAL PROPERTY-RELATED TAXES 
6 
OF NATIONAL AND LOCAL GOVERNMENTS, AS FOLLOWS: 
7 
 
8 
(A) FOR PURPOSES OF REAL PROPERTY TAXATION, THE 
9 
APPROVED SMV SHALL, IN NO CASE, BE ADOPTED BY 
10 
THE LGU LESS THAN SIX (6) MONTHS PRIOR TO THE 
11 
EFFECTIVITY OF THE NEW ASSESSMENT RATES TO 
12 
ENSURE THE PROPER CLEANSING AND UPDATING OF 
13 
RECORDS, AND NOTIFICATION OF PROPERTY OWNERS 
14 
IN 
THE 
CONDUCT 
OF 
GENERAL 
REVISION 
OF 
15 
ASSESSMENT AND PROPERTY CLASSIFICATION; 
16 
(B) IN COMPUTING ANY INTERNAL REVENUE TAX, THE BIR 
17 
COMMISSIONER SHALL USE THE SMV, OR THE ACTUAL 
18 
GROSS SELLING PRICE IN CONSOLIDATION, AS STATED 
19 
IN 
REAL 
PROPERTY 
TRANSACTION 
DOCUMENTS, 
20 
WHICHEVER IS HIGHER; AND 
21 
(C) FOR OTHER PURPOSES, SUCH AS LOCAL TRANSFER 
22 
TAX, TAX ON SAND AND GRAVEL, COMMUNITY TAX, 
23 
FEES AND CHARGES, OR AS BENCHMARK FOR REAL 
24 
PROPERTY 
APPRAISAL 
OF 
OTHER 
GOVERNMENT 
25 
AGENCIES, THE APPROVED SMV SHALL BE USED UPON 
26 
ITS EFFECTIVITY. 
27 
 
28 
NOTWITHSTANDING THE PROVISIONS OF EXISTING LAWS 
29 
TO THE CONTRARY, THE FAILURE TO CONDUCT A 
30 
GENERAL REVISION OF ASSESSMENT AND PROPERTY 
31 
CLASSIFICATION, AND USE OF THE APPROVED SMV SHALL 
32 
RENDER AN LGU INELIGIBLE FOR ANY CONDITIONAL OR 
33 
PERFORMANCE-BASED GRANT OR TO CONTRACT ANY 
34 
FORM OF CREDIT FINANCING.” 
35 
 
36 
SEC. 10. A new section designated as Section 218 of RA No. 7160, as 
37 
amended, is hereby added to read as follows: 
38 
 
39 
“SEC. 218. SETTING ASSESSMENT LEVELS AND TAX 
40 
RATES. – THE APPROVED SMV SHALL BE TRANSMITTED 
41 
TO 
THE 
CONCERNED 
LOCAL 
CHIEF 
EXECUTIVE, 
42 
THROUGH THE RESPECTIVE PROVINCIAL, CITY, AND 
43 
MUNICIPAL ASSESSOR. THE CONCERNED ASSESSOR, IN 
44 
COORDINATION WITH THE LOCAL TREASURER, SHALL 
45 
ESTIMATE THE REVENUE AND TAX IMPACT OF THE NEW 
46 


 9
SMV BASED ON EXISTING ASSESSMENT LEVELS AND TAX 
1 
RATES, 
AND 
RECOMMEND 
AMENDMENTS 
THEREON 
2 
BASED ON THREE (3) DIFFERENT SCENARIOS. THE 
3 
ASSESSOR SHALL THEREAFTER PREPARE AND SUBMIT 
4 
THE REVENUE AND TAX IMPACT REPORT TO THE LOCAL 
5 
CHIEF EXECUTIVE FOR CONSIDERATION. 
6 
 
7 
THE LOCAL CHIEF EXECUTIVE SHALL TRANSMIT THE 
8 
APPROVED SMV, TOGETHER WITH THE REVENUE AND 
9 
TAX IMPACT REPORT, WITHIN FIFTEEN (15) DAYS FROM 
10 
RECEIPT OF THE SAME TO THE SANGGUNIAN FOR THE 
11 
ENACTMENT 
OF 
AN 
ORDINANCE 
SETTING 
THE 
12 
APPROPRIATE ASSESSMENT LEVELS AND TAX RATES. 
13 
DURING THE SANGGUNIAN’S DELIBERATIONS PRIOR TO 
14 
THE ENACTMENT OF THE TAX ORDINANCE, IT MAY CALL 
15 
UPON 
THE 
ASSESSOR 
TO 
PROVIDE 
TECHNICAL 
16 
ASSISTANCE AND CALCULATE THE REVENUE AND TAX 
17 
IMPACT OF ADDITIONAL OPTIONS IN ORDER TO ARRIVE 
18 
AT A DESIRED LEVEL OF REVENUE AND TAX GOALS THAT 
19 
THE SANGGUNIAN WILL ADOPT.  
20 
 
21 
THE SANGGUNIAN SHALL EVALUATE AND ENACT THE 
22 
MOST APPROPRIATE ASSESSMENT LEVELS PURSUANT TO 
23 
SEC. 218-B OF THIS CODE AND TAX RATES BASED ON THE 
24 
RECOMMENDATION OF THE ASSESSOR, SUBJECT TO THE 
25 
LIMITATIONS PROVIDED IN SEC. 233 OF THIS CODE. THE 
26 
CONCERNED SANGGUNIAN SHALL ENACT THE TAX 
27 
ORDINANCE WITHIN SIXTY (60) DAYS FROM RECEIPT 
28 
THEREOF, UPON CONDUCT OF PUBLIC HEARINGS AND 
29 
PROPER CONSULTATIONS; OTHERWISE, THE EXISTING 
30 
ORDINANCE ON ASSESSMENT LEVELS AND TAX RATES 
31 
HALL REMAIN IN FORCE AND EFFECT. 
32 
 
33 
UPON 
ENACTMENT 
BY 
THE 
SANGGUNIAN 
OF 
AN 
34 
ORDINANCE FOR THE ASSESSMENT LEVELS AND TAX 
35 
RATES, THE LOCAL CHIEF EXECUTIVE SHALL ACT WITHIN 
36 
TEN (10) DAYS, IN THE CASE OF CITIES, INCLUDING THE 
37 
MUNICIPALITY IN THE METROPOLITAN MANILA AREA, OR 
38 
WITHIN FIFTEEN (15) DAYS, IN THE CASE OF PROVINCES, 
39 
TO APPROVE THE SAME. FAILURE OF THE CONCERNED 
40 
LOCAL CHIEF EXECUTIVE TO ACT ON THE ORDINANCE 
41 
WITHIN THE PRESCRIBED PERIOD SHALL RENDER THE 
42 
SAME APPROVED: PROVIDED, THAT THIS LAW SHALL NOT 
43 
BE CONSTRUED TO ABRIDGE THE POWER OF LGUS TO 
44 
LOWER AND ADJUST ASSESSMENT LEVELS AND TAX 
45 


 
10 
RATES TO PROVIDE WITH IT TO RESIDENTIAL PROPERTY 
1 
OWNERS AS DEEMED NECESSARY.” 
2 
 
 
3 
SEC. 11. A new section designated as Section 218-A of RA No. 7160, 
4 
as amended, is hereby added to read as follows: 
5 
 
6 
“SEC. 218-A. PUBLICATION OF ASSESSMENT LEVELS AND 
7 
TAX RATES. – THE APPROVED ORDINANCE FOR THE 
8 
ASSESSMENT LEVELS AND TAX RATES SHALL BE 
9 
PUBLISHED BY THE CONCERNED LGU IN A NEWSPAPER OF 
10 
LOCAL OR GENERAL CIRCULATION ONCE A WEEK FOR 
11 
TWO (2) CONSECUTIVE WEEKS AND, BE POSTED IN THE 
12 
RESPECTIVE PROVINCIAL CAPITOL, CITY HALL AND 
13 
MUNICIPAL HALL, AND IN TWO (2) OTHER CONSPICUOUS 
14 
PUBLIC PLACES THEREIN.” 
15 
 
16 
SEC. 12. Section 218 of RA No. 7160, as amended, is hereby amended 
17 
and renumbered to read as follows:  
18 
 
19 
“SEC. 218-B. Assessment Levels. – The assessment levels to 
20 
be applied to the fair market value of real property to determine 
21 
its assessed value shall be fixed by AN ordinance of the A 
22 
Sangguniang 
Panlalawigan, 
Sangguniang 
panlungsod 
or 
23 
Sangguniang bayan of a municipality within the Metropolitan 
24 
Manila Area, at the rates not exceeding the following: 
25 
 
26 
(a) x x x 
27 
(b) x x x 
28 
(1) Residential 
29 
Fair Market Value 
30 
x x x 
31 
 
32 
(2) Agricultural 
33 
Fair Market Value 
34 
x x x 
35 
 
36 
(3) Commercial / Industrial 
37 
Fair Market Value 
38 
x x x 
39 
 
40 
(4) Timber land 
41 
Fair Market Value 
42 
x x x.” 
43 
 
44 
SEC. 13. Section 219 of RA No. 7160, as amended, is hereby amended 
45 
to read as follows: 
46 


 
11 
 
1 
“SEC. 219. MANDATORY General Revision of Assessments 
2 
and Property Classification. – The provincial, city, or 
3 
municipal assessor shall undertake a MANDATORY general 
4 
revision of real property assessments ONCE EVERY THREE (3) 
5 
YEARS. within two (2) years after the effectivity of this Code and 
6 
every three (3) years thereafter. 
7 
 
8 
FAILURE TO CONDUCT A MANDATORY GENERAL REVISION 
9 
OF 
REAL 
PROPERTY 
ASSESSMENTS 
WITHOUT 
10 
JUSTIFIABLE CAUSE MAY SUBJECT THE RESPONSIBLE 
11 
OFFICIAL OR PROPERTY OWNER FOR LIABILITIES UNDER 
12 
THE LAW.” 
13 
 
14 
SEC. 14. Section 221 of RA No. 7160, as amended, is hereby amended 
15 
to read as follows: 
16 
 
17 
“SEC. 
221. 
Date 
of 
Effectivity 
of 
Assessment 
or 
18 
Reassessment.  – All assessments or reassessments made after 
19 
the first (1st) day of January of any year shall take effect on the 
20 
first (1st) day of January of the succeeding year: Provided, 
21 
however, That the reassessment of real property due to its 
22 
partial or total destruction, or to a major change in its actual 
23 
use, or to any great and sudden inflation or deflation of real 
24 
property values, or to the gross illegality of the assessment when 
25 
made or to any other abnormal cause, shall be made within 
26 
ninety (90) days from the date any such cause or causes 
27 
occurred, and shall take effect at the beginning of the quarter 
28 
next following the reassessment. 
29 
 
30 
PROVIDED, FURTHER, THAT THE MANDATORY GENERAL 
31 
REVISION OF REAL PROPERTY ASSESSMENTS SHALL 
32 
TAKE EFFECT ON THE FIRST DAY OF AUGUST AFTER THE 
33 
WHOLE CYCLE SET TO CONDUCT THE REVISION.”  
34 
 
35 
SEC. 15. Implementing Rules and Regulations. – Within six (6) 
36 
months after the effectivity of this Act, the Department of Finance shall, in 
37 
consultation with concerned parties, issue the Implementing Rules and 
38 
Regulations for the effective implementation of this Act. The IRR issued 
39 
pursuant to this section shall take effect thirty (30) days after its publication 
40 
in a newspaper of general circulation. 
41 
 
42 
SEC. 16. Transitory Provisions. – LGUs which are in the process of 
43 
updating their SMVs shall, upon the effectivity of this Act, continue with such 
44 
revisions in accordance with the provisions of this Act: Provided, that proper 
45 
notification and coordination with the BLGF shall be undertaken. 
46 


 
12 
 
1 
In case the SMVs are not yet available or updated, the BIR 
2 
Commissioner shall adopt the existing SMVs, zonal values or the actual price 
3 
in consideration as stated in real property transaction documents whichever 
4 
is higher, for purposes of computing any internal revenue taxes. 
5 
 
6 
The conduct of mandatory revision of Schedule of Market Values and 
7 
the conduct of mandatory general revision of Assessments and Property 
8 
Classifications shall commence by calendar year 2025. 
9 
 
10 
 
SEC. 17. Saving Clause. – The zonal values, as determined by the BIR 
11 
and approved by the Secretary of Finance for internal revenue tax purposes, 
12 
and the SMVs prepared by the provincial assessors, together with the city 
13 
assessors, and municipal assessors, including the municipal assessor in the 
14 
Metropolitan Manila Area, that have been approved by their respective 
15 
sanggunians for real property taxation purposes shall continue to be in force 
16 
and effect until repealed, superseded, modified, revised, set aside, or replaced 
17 
by the values provided under the updated SMVs as approved in accordance 
18 
with the provisions of this Act. 
19 
 
20 
 
SEC. 18. Separability Clause. – If any section or provision of this Act 
21 
shall be declared unconstitutional or invalid, other sections or provisions not 
22 
affected thereby shall continue to be in full force and effect. 
23 
 
24 
 
SEC. 19. Repealing Clause. – Sections 199, 201, 202, 207, 212, 214, 
25 
218, 219, and 221 of Republic Act No. 7160, otherwise known as the Local 
26 
Government Code of 1991, as amended, are hereby amended. All laws, acts, 
27 
presidential decrees, executive orders, administrative orders, rules and 
28 
regulations, or parts thereof inconsistent with or contrary to the provisions of 
29 
this Act are hereby modified, amended, or repealed accordingly. 
30 
 
31 
 
SEC. 20. Effectivity. – This Act shall take effect fifteen (15) days after 
32 
its publication in the Official Gazette or in a newspaper of general circulation. 
33 
 
34 
Approved,