" . 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
'11 
APR -4 P 3 :56 
SEN A.J'.J; 
SB No.~ 
~'I_8 7 
n 
RECEiVED Wl"t _ 
Introduced by Senator Panfilo M. Lacson 
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. 
The principal source of local govermnent units' income is derived from the taxes 
imposed on real properties. On the average, real property tax contributes about 25% of total tax 
revenues over the period 1995-2004.1 
Real property, however, contributes only a meager 6.6% to the gross national product 
(GNP) due primarily to the country's chaotic, ineffective and inequitable real property valuation 
system. 
It is, therefore, of great importance to establish appraisal standards, methods and 
procedures for uniform and equitable property valuations in order to maximize revenue 
collections. 
The passage of the proposed Real Property Valuation Refornl Act is intended to resolve 
the following issues in the present valuation system, to wit: 
1. 
At least 23 national govermnent agencies (NGAs) and more than 1700 local 
govermnent units (LGU s) use different systems and methodologies for different 
purposes, thus, resulting to the same property having multiple, confusing, unrealitstic, 
or outdated values. 
2. 
Lack of valuation standards, formal education and trammg for valuers 
resulting in incompetence and outdated techniques in the appraisal practice. 
3. 
Undervaluation and overvaluation of real properties for tax purposes causing 
unnecessary delays and huge financial losses in the form of foregone govermnent 
revenues and cost overruns. 
4. 
Outdated real property values which no longer capture the true economic 
realities in the community where the property is situated. Valuations by the 
govenmlent do not truly capture and reflect the current, market-based property 
developments and economic conditions - overvaluation occurs when the government 
, National Tax Research Center Study, "Bouyancy and Income Elasticity of Real Property Tax", January 31, 2007. 


is acquiring real property, while undervaluation proliferates if the government is 
co Ilecting taxes. 
. 
5. 
Local governments fail to revise regularly the SMV s, 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. The SMV s are, thus, generally undervalued, and contributed to 
huge foregone revenues of the Local Government Units. 
6. 
Distorted real property transactions database because real property sales 
transactions data are dispersed among various groups and individuals, namely the 
assessors, the Registry of Deeds, the BIR and the bank among others. 
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 bottom-up approach in institutionalizing 
reforms in the valuation sector of the country to adopt a market-based SMV, by maximizing the 
technical expertise of LGU assessors in using and adopting uniform and internationally-accepted 
valuation standards. 
Conculrently, reorganizing and strengthening the Bureau of Local Government Finance 
(BLGF) is being proposed as a fundamental element to achieve the envisioned reforms. By 
starting at the local governments, the BLGF shall be the lead agency to review and approve the 
SMV s of all LGUs, thus, separating the technical function of valuation from the political 
function of taxation exercised by local elective officials. The BLGF shaH 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 fiscal autonomy and to improve the government's capacity to generate revenues 
and provide adequate public service delivery. 
In view of the foregoing reasons, the approval of this bill is earnestly sought. 
PAN@" ~CSON 
Se ator 
, 


-Sel1litr 
FIFTEENTH CONGRESS OF THE 
(~lfl;' "f lil' :tw,tor~ 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SBNo. 2787 
Introduced by: Senator Panfilo M. Lacson 
AN ACT 
'11 
APR -4 P3 :56 
INSTITUTING 
REFORMS 
IN 
REAL 
PROPERTY 
VALUATION 
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: 
SEC. 1. Short Title.- This Act shall be known as the "The Real Property Valuation 
Reform Act Of 2011." 
Article I 
Declaration Of Policy And Objectives, 
And Definition Of Terms 
SEC. 2. Declaration of Policy and Objectives.- It is the policy of the State to promote 
the development and maintenance of a just, equitable, impartial, and nationally consistent real 
property valuation based on internationally accepted valuation standards, concepts, principles, 
and practices. Towards this end, the State shall: 
(a) Promote the fiscal autonomy of local governments to provide basic services to their 
constituency by enhancing their capacity to generate local revenues from 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 assessment of all 
real property related taxes in the country, and for valuing or appraising real property 
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/appraisal practice in 
the country pursuant to Republic Act No. 9646; 
(f) Provide a comprehensive and up-to-date electronic database of all real property 
transactions; 
(g) Support the development of a "body of knowledge" on valuation by continuing 
research and monitoring of new developments in the valuation discipline for 
upgrading the country's valuation and keeping it abreast with global developments; 
and 
Page 1 of 11 


, ' 
(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 tlris Act, the following terms mean: 
(a) Appraiser -
also known as 
valuer; refers to a person who 
conducts 
valuation/appraisal; specifically, one who possesses the necessary qualifications, 
ability, and experience to execute or 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, 
machinery and equipment, essentially for taxation and other purposes. This definition 
also includes assistant assessors. 
(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 to 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 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. 
(f) Machinery - embraces machines, equipment, mechanical contrivances, instruments, 
appliances or apparatus which mayor may not be attached, permanently or 
temporarily, to the real property. It includes the physical facilities for production, the 
installations and appurtenant service facilities, those which are mobile, self-powered 
or self-propelled and those not permanently attached to the real property which are 
actually, directly and exclusively used to meet the needs of the particular industry, 
business or activity and which by their very nature and purpose are designed for, or 
necessary to its manufacturing, mining, logging, commercial, industrial or 
agricultural purposes. 
(g) Market Value - refers to the estimated amount for which a property should exchange 
on the date of valuation between a willing buyer and a willing seller in an arm's 
length transaction (a transaction between independent, uurelated parties involving no 
irregularity) after proper marketing wherein the parties had each acted 
knowledgeably, prudently, and without compulsion; 
(h) Private appraisal sector - refers to licensed non-governmental real estate service 
practitioners who have been active in the practice of real estate appraisal for the last 
five (5) years. 
(i) Real Estate - refers to the land and all those items which are attached to the land. It is 
the physical, tangible entity, together with all the additions or improvements on, 
above or below the ground. 
G) Real Property - refers to all the rights, interests, and benefits related to the ownership 
of real estate, plant, machinery, and equipment; 
(k) Schedule of Market Values or SMV - refers to a table of market values of real 
properties within a local government unit prepared by assessors pursuant to existing 
laws, rules and regulations. 
Page20f11 


(I) Special Purpose Property - refers to a property which is designed, constructed and 
developed for a specific use or purpose. By its very nature, this type of property is 
rarely offered for sale in the open market except as part of a going concern. Because 
of the special design and function, conversion of special purpose properties to other 
types of development or application is generally not economically feasible. 
(m)Valuation/Appraisal -
refers to the systematic and analytic determination and 
recording of property facts, circumstances, investments, and investigation of other 
relevant data resulting in a supportable estimate and opinion of value or a 
professional conclusion based upon supporting data, logical analysis and judgment as 
of a specific date and for a specific purpose. 
Article II 
Strengthening The Bureau Of Local Government Finance 
Chapter 1 
BLGF Central Operations 
SEC. 4. Role of the Bureau of Local Government Finance.- The Bureau of Local 
Government Finance (BLGF) shall lead and manage the implementation of the provisions of this 
Act. In addition to the existing mandate of the BLGF, the Bureau shall have the following 
powers and functions: 
(a) Develop, adopt, and maintain valuation standards consistent with generally accepted 
valuation standards, regulations and specifications for real property appraisal used for 
tax and other purposes, and ensure compliance therewith by local government units 
and other concerned parties; 
(b) Review for compliance with the real property valuation policies and standards and 
approve the Schedule of Market Values (SMV s) prepared by the provincial 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/appraisal of 
special purpose properties, when requested; 
(d) Provide leadership and policy directions to local government units on real property 
valuation/appraisal for taxation 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; 
(f) Develop and maintain a comprehensive and up-to-date electronic database of real 
property transactions and prices of materials for buildings, machinery, and other 
structures; 
(g) Conduct continuing study and research on valuation, and maintain an information 
base on current global and country trends and developments in real property 
valuation/appraisal; 
(h) Determine, fix, and collect reasonable amounts to be charged as administration fees, 
fines, and penalties relative to the implementation of this Act; and 
(i) Perform such other functions as are necessary, proper, and incidental to implement 
the provisions ofthis Act. 
Page 3 of11 


SEC. 5.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, hereinafter referred to as the RPVS, within the Bureau of Local Government Finance, 
which shall perform the functions pertaining to Sec. 4hereof 
SEC. 6.Respollsibilities of the BLGF Executive Director. - The BLGF Executive 
Director shall 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 RPVS. For this 
purpose, the BLGF 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 regional offices; 
(c) Approve, upon review by the RPVS, the Schedule of Market Values (SMVs) 
prepared by the provincial assessors together with municipal assessors, and city 
assessors, including the municipal assessor of Metro Manila, for tax and other 
purposes 
(d) Advise and assist other government agencies on matters pertaining to real property 
valuation/appraisal; and 
(e) Perform such other functions as may be provided by law, or required in pursuance of 
this Act. 
SEC. 7.Consultations with Concerned Agencies and Sectors.-
(a) A Central 
Consultative Committee shall be created, chaired by the BLGF Executive Director and 
composed of a representative each from the: 
I. Bureau ofInternal Revenue (BIR); 
2. Department of Environment and Natural Resources (DENR); 
3. Bangko Sentral ng Pilipinas (BSP); 
4. National organization of government assessors; 
5. Private appraisal sector; and 
6. 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 iwnoraria, 
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 necessary 
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 setting, adoption 
and maintenance of the valuation standards. 
Chapter 2 
BLGF Regional Operations 
Page 4 of 11 


SEC. 9. Role oflhe BLGF Regional Offices. - The BLGF Regional Offices, through the 
Regional Director, shall have the responsibility on all matters relating to valuation/appraisal and 
the SMV s 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 Director the approval of the proposed 
SMV s prepared by the provincial assessors together with the mWlicipal assessors, and 
city assessors within the region; 
(c) 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 govermnent departments, 
bureaus, 
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 government units in the region; 
(f) 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 govermnent assessors; and 
(g) Perform other fWlctions as may be assigned by the BLGF Executive Director. 
SEC. 10. The Regional Consultative CommiUee. - (a) There shall be a Regional 
Consultative Committee chaired by the BLGF Regional Director, and composed of a 
representative each from: 
I) Bureau ofInternal Revenue - Regional Office; 
2) Department of Enviromnent and Natural Resources -Regional Office; 
3) Regional organization of government assessors; 
4) Private appraisal sector within the region; and 
5) Bankers association within the region. 
(b) The members of the Regional Consultative Committee must be performing 
valuation/appraisal related functions. Representatives from the regional organization 
of government assessors, private appraisal sector, and banking association within the 
region shaH be represented by the head of their respective organization. 
(c) The Committee shall meet at the initiation of the BLGF Regional Director at least 
once every quarter, and shall have as many meetings as the BLGF Regional Director 
may deem necessary for the performance of its functions. 
SEC. 11. 
Functions of the Regional Consultative CommiUee. -
The Regional 
Consultative Committee shal! serve as a consultation forwn in the region for discussion on 
developments in the local real property market; concerns of taxpayers, civil society, and other 
stakeholders; outcome of Compliance Reporting in the region; level of complaints an4 appeals; 
local govermnent unit training in the region; appraiser and assessor concerns in general; and 
other matters as may be determined by the Committee. 
Article III 
Valuationl Appraisal Of Real Properties 
Chapter 1 
Valuation Standards and Market Values 
Page50f11 


SEC. 12. Development of Valuation Standards.- Notwithstanding the provisions of 
existing laws to the contrary, the BLGF, shall develop, adopt, maintain and implement uniform 
valuation standards which shall be used by all appraisers and assessors in the local government 
units and other concerned parties in appraising or valuing lands, buildings, machinery and other 
real properties for taxation and other purposes. The valuation standards shall confonn with the 
generally accepted valuation principles and internationally accepted standards. 
SEC. 13. Valuation/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 confonnity with the valuation standards adopted 
under this Act. The BLGF shall 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 laws shall 
be applied after detennination 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 together 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 BLGF. The said 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 
Sanggunian, to the BLGF Regional Office for review and compliance with other requirements 
not later than the thirty-first (31 st) day of October of the immediately preceding calendar year the 
general revision of real property assessments shall be undertaken. The said SMV s 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 BLGF Central Office. The BLGF Executive Director, after 
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. Likewise, 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 shall provide the Sanggunian, through the Chainnan 
of the Committee on Ways and Means, a copy of such report. The 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 Sanggunian for the enactment of an Ordinance setting the appropriate 
assessment levels and tax rates. The concerned Sanggunian 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 force and 
effect. 
Upon the enactment by the Sanggunian of an Ordinance for the assessment levels and tax 
rates, the local chief executive shall act within ten (10) days, in the case of cities, and the 
municipality in Metro Manila, or within fifteen (15) days, in the case of provinces, to approve 
the same. Failure of the concerned local chief executive to act on the Ordinance within the 
prescribed period shall render the same approved. 
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 
Page6of11 


weeks: Provided, however, That in provinces, cities and municipalities where there are no 
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 BLGF shall 
be used for the general revision of real property assessments in local government units, as basis 
for 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 
internal revenue tax, the BIR Cornmissioner 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 shall cease as 
basis for 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 Market 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 SMV s within two (2) years from the effectivity of this Act. 
Thereafter, they shall undertake a general revision of SMV s and property assessments not earlier 
than three (3) years from the date oflast revision, but not later than five (5) years. 
In case of any significant change in the market where the property is located after the said 
SMV s 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 in Metro Manila, may 
recommend to the BLGF Executive Director revisions to their existing SMV. Such revisionls 
shall be subject to review and approval by the BLGF Executive Director within 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 trainings for all 
local assessors and other local officials/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 repoliS, and other subject areas to ensure the effective 
implementation of this Act. 
Chapter 2 
Development and Maintenance of Real Property Database 
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 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, local government 
units, and the private sector. The updated database shall 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, 
Page 70f11 


including the municipal assessor in Metro Manila, an abstract of his/her registry every three (3) 
months and copies of all contracts selling, transferring or otherwise converting, leasing, or 
mortgaging real property registered by himlher every end of the month. The abstract shall 
include brief but suflicient description of the real properties entered therein, their present owners, 
and the dates of their most recent transfer or alienation accompanied by copies of corresponding 
deeds of sale, donation, or partition or other forms of alienation. 
SEC. 20. Duty of Official Issuing Building Permits or Certificates of Registration of 
Macltinery to Transmit Copy to tlte Assessor.- Any public oflicial or employee who may now 
or hereafter be required by law or regulation to issue to any person a permit for the construction, 
addition, repair, or renovation of a building, or permanent improvement on land, or a certificate 
of registration for any machinery, including machines, mechanical contrivances, and apparatus 
attached or affixed on land or to another real property, shaH transmit a copy of such permit or 
certification within thirty (30) days of its issuance, to the assessor of the province, city or 
municipality where the property is situated. 
SEC. 21.Duty of Geodetic Engineers to Furnislt Copy of Plans to Assessor.- It shal1 be 
the duty of al1 geodetic engineers, public or private, to furnish free of charge, the assessor of the 
province, city or municipality where the land is located, a copy of the blue or white print of each 
of aU approved original subdivision plans or maps of surveys, duly signed by a Senior Oeodetic 
Engineer, executed by them every end of the month from receipt of such approved plans from 
the Land Management Bureau (LMB), the Land Registration Authority (LRA), or the Housing 
and Land Use Regulatory Board (HLURB), as the case may be. 
SEC. 22. Duty of Assessors to Transmit Documents to tlte BLGF. - It shall be the duty 
of the assessors to transmit to the concerned BLOP Regional Officeal1 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 BLOP's Regional Office shaH record, process 
and make a summary report of the real property data, and submit the same to the BLOP Central 
oflice within one (1) month from receipt of such data. 
Chapter 3 
Appointment and Qualifications of Assessors 
SEC. 23Appointment of Assessors. - Notwithstanding the provisions of existing laws to 
the cOlltrary, appointments of provincial, city, and mnnicipal assessors and assistant assessors 
shal1 be in accordance with the following guidelines: 
(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 
nominees suitable and qualified for appointment within the region; 
(b) In the case of municipal and assistant municipal assessors, appointee shall be chosen 
from the list of at least three (3) ranking eligible nominees suitable and qualified for 
appointment within the province; and 
(c) In the case of city and assistant city assessors and municipal and assistant municipal 
assessors for Metro Manila, appointee shall be chosen from the list of at least three 
(3) ranking eligible nominees suitable and qualified for appointment within the Metro 
Manila. 
The assessors shaH be under the technical supervision of the BLOF, primarily through a 
system of compliance reporting and provision for education and training for capacity building. 
Page 80f11 


SEC. 24.Qualijications 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 assessor. 
Article IV 
Penal Provisions 
SEC. 25. Failure to Comply witll tile 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 220fthis Act shall be punished by a 
maximum fine equivalent to the official's or employee's six (6) months basic salary or 
suspension from service for a period not exceeding one (1) year, or both, at the discretion of the 
competent authority. 
SEC. 26. Failure to Comply witll tile Valuation Standards. - An assessor who, for 
wljustitiable reasons, fails to comply with the valuation standards developed and adopted 
pursuant to this Act, or deliberately concealed any deviations or departures from such standards 
in the valuation/appraisal of real property, shall be punished by a maximum tine equivalent to the 
official's 01' employee's six (6) months basic salary, and suspension from the government 
service. 
SEC. 27. Failure to Prepare Sclledule of Market Values. - An assessor who, for 
Wljustitiable reasons, intentionally or deliberately refuses or fails to prepare the SMV s within the 
period set forth in this Act shall be meted the maximum fine equivalent to the official's 01' 
employee's six (6) months basic salary, or by suspension from government service for not more 
than onc (1) year, or both, at the discretion of the competent authority. 
SEC. 28. Violations of Otller Providons.- Any person, whether natural or juridical, who 
violates any provision of this Act other than those pWlishable Wlder Sections 25, 26, and 27 
hereof shall, when warranted, be dealt with Wlder applicable existing laws. 
SEC. 29. Taxpayers' Remedies in Case of Erroneous Assessments of Real Properties. -
The provisions of Sections 226 (Local Board of Assessment Appca)~) and 229 (Action hy the 
Local Board of Assessment Appeals) of Republic Act No. 7160, otherwise known as The Local 
GovelTIl11ent Code of 1991 shall apply in all cases of appeals as remedies for the taxpayers in the 
aSSCSSll1Cnt of their properties. 
Article \7 
Transitory Provisions 
SRe. 30. 
Tral1.~it(/rv Guideliues. - (a) Local lJovcrnment units which arc in the nrocc~s 
.v 
~ " 
.... ' 
-'-
of revising thcir SMV s, upon the etlectivity of this Act, shall continue with such revisions in 
accordance with Section 16 of this Act: Provided, That proper notification and coordination with 
the BLG F shan be undcrtak~n. 
Page 9 of 11 


(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. 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 SMV s prepared by the 
provincial assessors together with the municipal assessors, and city assessors, including the 
municipal assessors of 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 SMV s 
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. 32. Budgetary Requirements for Revision of Schedule of Market Values. - Each 
local Sanggunian shall appropriate the necessary funds either from locally generated 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 (RPT AF) which shall be used to ensure the proper implementation of the regular revisions 
of the SMV s 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 
armual General Appropriations Act. 
Article VII 
Miscellaneous Provisions 
SEC. 34. Implementing Rules and Regulations (IRR).- Within six (6) months after the 
effectivity of this Act, the DOF, upon conducting consultations with concerned parties, shall 
issue the IRR for the effective implementation of this Act. 
SEC. 35. Suppletory Application of Existing Laws. - The provisions of Republic Act 
No. 7160, otherwise known as the Local Government Code of 1991, and other laws consistent 
with this Act shall have suppletory effect. 
SEC. 36. Repealing 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, 214, 219, 224(a), 472(a) par 1, and 473(a) par 1 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(a)(g)(h)(l), 202, 218parl(b), 220, 443(d), 444(b)(I)(v), 
454( d), 455(b )(1 )(v), 463(d), and 465(b )(1 )(v), 472(b )(8) of the LGC, and Section 88(B) of the 
NIRC are hereby modified accordingly; 
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(c) All laws, presidential decrees, executive orders, presidential proclamations, rules and 
regulations or parts thereof contrary to or inconsistent with this Act are hereby repealed, 
superseded or modified accordingly. 
SEC. 37. Separability Clause. - Any portion or provision of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions or 
provisions hereof, as long as such remaining portions or provisions can still subsist and be given 
effect in their entirety. 
SEC. 38.Effectivity. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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