NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
S. No. 897
#flSt &tl -11 ■‘T
•22 JUL 26 P6 :49
lIHCrJV:- }
Introduced by Senator PIA S. CAYETANO
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
Under Republic Act. No. 7260, or the Local Government Code, provinces and 
cities, including the municipalities within the Metropolitan Manila Area, shall be 
primarily responsible for the proper, efficient and effective administration of real 
property taxes. Based on the report of the Asia Property Awards/ outdated real 
property values are causing provincial and city governments in our country to lose 
PHP30.5 billion (USD589 million) in foregone revenues as of 2019.
Over the last three (3) years, only 62% of Revenue District Offices (RDOs) 
under the Bureau of Internal Revenue (BIR) have updated their zonal values, while 
only 40% of local government units (LGUs) have updated the schedule of market 
values (SMVs).2 Apart from outdated valuation, the situation is further complicated 
by the fact that there are various agencies conducting or requiring property valuation, 
with each agency using their own system and methodology for valuation. This problem 
resulted in compensation problems, project delays, cost overruns, as well as lengthy
1 Asia Property Awards (2019, June). The Philippine government is losing $589m to outdated property
valuation.asiapropertyaV'/ards.com/en/the-philippine-government-is-losing-589m-to-outdated-
property-
valuation/#:~:text=0utdated%20real%20property%20values%20are,finance%20department%20rev
ealed%20this%20week.
2 Department of Finance, Tax Reform. Package 3: Real Property Valuation Reform.
https://taxreform.dof.gov.ph/tax-reform-packages/p3-real-property-valuation/


court litigation that have hampered the efficient construction of some infrastructure 
projects.3
In the 2022 State of the Nation Address (SONA) of President Ferdinand Marcos, 
Jr., he made mention that his administration will continue to push for the passage of 
the remaining tax reforms under the Comprehensive Tax Reform Program (CTRP),4 
which includes Real Property Valuation and Reform. The undersigned during the 18th 
Congress as the Chairperson of the Senate Committee on Ways and Means conducted 
hearings on the proposed tax measure.
With this measure, a just, equitable, and efficient real property valuation 
system shall be developed that would broaden the tax base used for propeity and 
property-related taxes of the national and local governments, and improve tax 
collections. The proposed reform shall also adopt internationally accepted real 
property valuation standards and rationalize the process of valuation.
In view of the foregoing, the approval of this bill is earnestly sought.
PIA S. CAYEf ANO
3 Ibid.
4 Royandoyan, R. (2022, July). Marcos Jr. administration eyes passage of remaining Duterte-era tax
reforms. 
philstar.com/business/2022/07/06/2193502/marcos-jr-administration-eyes-passage-
remaining-duterte-era-tax-reforms


3tua!e
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
s. No. 897
T 
of t!)C
72 JUL26 PS'49
Rl:CE!\'. )lii.
Introduced by Senator PIA S. CAYETANO
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:
1 
Section 1. Short Title. - This Act shall be known as the "Real Property Valuation
2 
and Assessment Reform Act"
3 
ARTICLE I
4 
DECLARATION OF POLICY AND OBJECTIVES,
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AND DEFINITION OF TERMS
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Sec. 2. Declaration of Policy and Objectives. - It is the policy of the State to
7 
promote the development and maintenance of a just, equitable, impartial, and
8 
nationally consistent real property valuation based on internationally accepted
9 
valuation standards, concepts, principles, and practices. Towards this end, the State
10 
shall:
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(a) Establish and maintain standards to govern the valuation of real
12 
property in the country;
13 
(b) Adopt market value as the single real property valuation base for
14 
the assessment of real property related taxes in the country, and for the
15 
valuation of real property for various transactions by all government agencies;


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(c) Promote the fiscal autonomy of local government units (LGUs) to 
provide basic services to their constituency by enhancing their capacity to 
generate local revenues from real property;
(d) Separate the function of valuation of real properties from the 
functions of tax policy formulation and the administration of the taxes due 
thereon;
(e) Support the development and professionalization of the valuation 
practice in the country pursuant to Republic Act No. 9646, otherwise known as 
the "Real Estate Service Act of the Philippines;"
(f) Provide a comprehensive and up-to-date electronic database of all 
real property transactions;
(g) Support the development of an information database on valuation 
through continuing research and monitoring of new developments in the 
discipline to upgrade the country's valuation system and be at par with global 
standards; and
(h) Ensure transparency in real property transactions to protect public 
interest, and develop confidence in the valuation system.
Sec. 3. Definition of Terms. - As used in this Act:
(a) Appraiser also known as valuer, refers to a person who conducts 
valuation; specifically, one who possesses the necessary qualifications, license, 
ability, and experience to execute or direct the valuation of real property;
(b) Assessed Vaiue, also known as taxable value, refers to the market 
value of the property multiplied by the corresponding assessment level;
(c) /l55e55/77e/77refers 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;
(d) 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;
(e) Assessor refers to the official or employee in the local government 
unit (LGU) who is a duly licensed appraiser, and performs appraisal and
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assessment of real properties, including plant, machinery, and equipment, for 
taxation and other purposes. This definition also includes assistant assessor;
(f) Building refers to a man-made structure permanently attached to 
land for residential, commercial, industrial, recreational, or other purposes;
(g) Improvement refers to 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 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 which is 
supplied by nature without the aid of man. Land may include not only the 
earth's surface, both land and water, but also anything that is attached to the 
earth's surface including all natural resources in their original state, such as 
mineral deposits, wildlife, and timber;
(i) Internationally accepted valuation standards shall refer to generally 
accepted standards for the valuation for all types of assets including real estate 
plant and equipment, intangible assets and businesses which shall include, but 
not limited to, the international valuation standards;
(j) International valuation standards shall refer to standards for 
undertaking valuation assessments using generally recognized concepts and 
principles that promote transparency and consistency evaluation practice as 
determined by the International Valuation Standards Council;
(k) Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances, or apparatus which may or may not be attached, 
permanently or temporarily, to the real property. It includes the physical 
facilities for production, the installations and appurtenant service facilities, 
those which are mobile, 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;


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(i) Market Value refers to the estimated amount for which a property 
shall exchange on the date of valuation between a willing buyer and a willing 
seller in an arm's length transaction which is a transaction between 
independent, unrelated parties involving no irregularity, after proper marketing, 
wherein the parties had each acted knowledgeably, prudently, and without 
compulsion;
(m) Private appraisal sector refers to licensed nongovernmental real 
estate service practitioners;
(n) 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;
(o) Real property refers to all the rights, interests and benefits related 
to the ownership of real estate. It is a legal concept distinct from real estate, 
which is a physical asset;
(p) Schedule of Market Values, hereinafter referred to as SMV, refers to 
a table of base unit market values for all kinds of real property, except 
machinery within an LGU prepared by assessors pursuant to existing laws, rules 
and regulations;
(q) Special purpose property refers to a property that 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 since its special design and function renders conversion to 
other types of development or application not economically feasible; and
(r) Valuation, also known as appraisal, refers to the systematic, analytic 
and logical analysis of the recording of property facts, circumstances, 
investments and other relevant data resulting in a supportable estimate or 
professional opinion of the value of the property as of a specific date and for a 
specific purpose.
ARTICLE II
THE BUREAU OF LOCAL GOVERNMENT


1 
Chapter 1
2 
BLGF Central Operations
3 
Sec. 4. Powers and Functions of the Bureau of Local Government Finance
4 
(BLGF). - The BLGF of the Department of Finance (DOF) shall lead and manage the
5 
implementation of the provisions of this Act. In addition to the powers vested upon it
6 
by Executive Order No. 292, otherwise known as the "Administrative Code of 1987,"
7 
it shall exercise the following additional powers and functions:
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(a) Develop, adopt, and maintain valuation standards consistent with
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internationally accepted valuation standards, regulations, and specifications for
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real property appraisal used for taxation and other purposes, and ensure
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compliance therewith by LGUs and other concerned parties;
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(b) In coordination with the Bureau of Internal Revenue (BIR), review
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and ensure that the Schedule of Market Values (SMVs) as prepared by the
14 
provincial assessors together with the municipal assessors, and the city
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assessors, including the lone municipal assessor in the Metropolitan Manila Area
16 
is compliant with real property valuation policies and standards, and
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recommend its approval to the Secretary of Finance for local and national
18 
taxation, and for other purposes;
19 
(c) Provide technical assistance on real property appraisal matters to
20 
government agencies and instrumentalities, and coordinate or conduct the
21 
valuation of special purpose property, when requested;
22 
(d) Provide leadership and policy direction to LGUs on real property
23 
valuation for taxation and other purposes, including the development and
24 
maintenance of internationally accepted valuation standards, the regulation of
25 
valuation activities and other related matters, and the promotion of valuation
26 
training and seminars;
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(e) Maintain a roster of licensed local government cippraisers and
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assessors in consultation and coordination with the Professional Regulation
29 
Commission;
30 
(f) Develop and maintain a comprehensive and up-to-date electronic
31 
database of real property transactions and prices of materials for buildings,
32 
machinery, and other structures;


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(g) Conduct continuing study and research in valuation, and maintain
2 
information on current global and country trends and developments in real
3 
property valuation;
4 
(h) Formulate and provide for uniform procedure on the different
5 
transactions in the assessor's office, including the transfer, annotation, and
6 
issuance of tax declarations;
7 
(i) Determine, fix, and collect a reasonable amount to be charged as
8 
administration fees, fines, and penalties relative to the implementation of this
9 
Act; and
10 
(j) Perform such other functions as are necessary, proper, and incidental
11 
to implement the provisions of this Act.
12 
Sec. 5. Establishment of the Rea! Property Valuation Service. -To achieve the
13 
policies and objectives declared in this Act, the Real Property Valuation Service,
14 
hereinafter referred to as the RPVS is hereby established within the BLGF and shall
15 
have counterpart personnel in the BLGF Regional Offices.
16 
Sec. 6. Supervisory Roie of the BLGF Executive Director over the RPVS. - The
17 
BLGF Executive Director shall be responsible for the efficient and effective day-to-day
18 
performance of the responsibilities set forth in this Act, and for the overall internal
19 
management and governance of the RPVS.
20 
Sec. 7. Creation of a Central Consultative Committee. -
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(a) A Central Consultative Committee shall be created and shall serve
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as the consultative forum on matters pertaining to the setting and adoption of
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internationally accepted valuation standards and other related concerns on real
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property valuation;
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(b) It shall be chaired by the BLGF Executive Director and shall be
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composed of a representative each from the:
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(1) Bureau of Internal Revenue (BIR);
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(2) Department of Environment and Natural Resources (DENR);
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(3) Bangko Sentral ng Pilipinas (BSP);
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(4) National organization of government assessors;
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(5) National organization of appraisers in national government
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agencies; and


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(6) Private appraisal sector:
2 
Provided, That the representative from the private appraisal sector shall be
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active in the practice of real estate appraisal for at least five (5) years as certified by
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the Professional Regulatory Board of Real Estate Service (PRBRES).
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(c) The representatives of the BIR, DENR, and BSP must be performing
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valuation-related functions. The aforementioned national organization of
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government assessors, and the private appraisal sector shall be represented
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by their respective heads of organizations or their duly qualified
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representatives;
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(d) The Chairperson and members of the Committee shall not receive
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additional salary for the performance of their functions. Members of the
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consultative committee who are not incumbent government officials or
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employees shall be entitled to honoraria, pursuant to existing laws and
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regulations; and
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(e) The Committee shall meet either physical or virtual at the initiation
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of the Chairperson at least once every semester and shall have as many
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meetings as the Chairperson may deem necessary for the adoption of valuation
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standards. The Chairperson may invite resource persons on issues concerning
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real property valuation.
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Chapter 2
21 
BLGF Regional Operations
22 
Sec. 8. Role of the BLGF Regional Offices. -The BLGF Regional Offices, shall,
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through the Regional Director, be responsible for all matters relating to valuation and
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the supervision of the SMVs in the region. They shall:
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(a) Implement policies, plans, programs, rules and regulations on real
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property valuation of LGUs in the region;
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(b) Review, in coordination with the BIR, and endorse to the RPVS, the
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proposed SMVs prepared by the assessors of the LGUs in the region;
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(c) Provide for economical, efficient and effective valuation services in
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the region;


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(d) Coordinate and consult with other government departments, bureaus 
and agencies within the region dealing with real property valuation;
(e) Adopt and maintain a comprehensive and up-to-date electronic 
database of all regional real property-related transactions, and have custody of 
all transaction records submitted by local government assessors; and
(f) Perform other functions as may be assigned by the BLGF Executive 
Director.
Sec. 9. The Regional Consultative Committee. -
(a) There shall be a Regional Consultative Committee that shall be 
chaired by the BLGF Regional Director and shall be composed of :
(1) 
BIR Regional Director or the duly authorized representative;
(2) 
DENR - Regional Director or the duly authorized 
representative;
(3) Head of Regional organization of government assessors or the 
duly authorized representative;
(4) Head of Regional organization of national government 
appraisers or the duly authorized representative;
(5) Head of the private appraisal sector within the region or the 
duly authorized representative; and
(6) Head of the bankers association within the region or its duly 
authorized representative
(b) The members of the Regional Consultative Committee must be 
performing valuation-related functions in their respective agencies or sectorsj 
The representative from the private appraisal sector shall have an experience 
as a licensed real estate appraiser for at least five (5) years, by the Accredited 
and Integrated Professional Organization (AIPO) for Philippine Real Estate 
Practitioners, provided, however, in the absence of AIPO, the same shall be 
duly certified by the Professional Regulatory Board of Real Estate Service 
(PRBRES);
(c) The Committee shall meet either physical or virtual 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
8


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performance of its functions. The BLGF Regional Director may invite resource
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persons on issues concerning real property valuation.
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(d) The Chairperson and members of the committee shall not receive
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additional salary for the performance of their functions. Members of the
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consultative committee who are not incumbent government officials or
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employees shall be entitled 
to honoraria, pursuant to existing laws and
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regulations.
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Sec. 10. Function 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,
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and other stakeholders; outcome of compliance reporting in the region; level of
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complaints and appeals; training of local government assessors in the region; appraisal
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and assessment concerns in general; and other matters as may be determined by the
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Committee: Provided, That any reports and data thereof, as a result of the forum,
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shall be submitted in accordance with the guidelines as may be prescribed by the te
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the Central Consultative Committee.
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ARTICLE III
VALUATION OF REAL PROPERTIES
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Chapter 1
20 
Valuation Standards and Market Values
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Sec. 11. Development of Valuation Standards. - Notwithstanding the provisions
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of existing laws to the contrary, the BLGF shall develop, adopt, maintain, and
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implement uniform valuation standards which shall be used by all appraisers and
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assessors in the LGUs and other concerned parties in the appraisal or valuation of
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lands, buildings, machinery and other real properties, for taxation and other purposes.
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The valuation standards shall conform with internationally accepted valuation
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standards and principles.
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Sec. 12. Valuation of Real Property. -For valuation purposes, all real properties,
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whether taxable or exempt, shall be valued or appraised based on prevailing market
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values in the locality where the property is situated, in conformity with the valuation


1 
standards adopted pursuant to this Act. The Secretary of Finance shall promulgate the
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rules and regulations for the valuation of real property pursuant to the provisions of
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this Act.
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For real property intended for low-cost or socialized housing and other
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programs of the government imbued with social policy objectives, the provisions of
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existing pertinent laws shall be applied after the determination of the prevailing market
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value of these properties in accordance with internationally accepted valuation
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standards.
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Sec. 13. Preparation of Schedule of Market Values. -The provincial assessors,
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together with the municipal assessors, and the city assessors, including the lone
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municipal assessor in the Metropolitan Manila Area, shall prepare the SMVs for the
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different classes of real property situated within their respective LGUs, pursuant to the
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valuation standards, rules, regulations, and other specifications set by the DOF. The
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preparation of the SMVs shall be completed within six (6) months following the notice
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from the BLGF to all concerned local assessors to submit their revised SMVs.
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Upon its completion, the local assessor shall submit the proposed SMV to the
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BLGF Regional Office. Within ninety (90) days from receipt thereof, the BLGF Regional
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Office, in coordination with the BIR Regional Office, shall review and endorse the
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proposed SMV to the BLGF Executive Director and the Commissioner of Internal
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Revenue: Provided, That, in the case of cities and the lone municipality within the
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Metropolitan Manila Area, the proposed SMV shall be submitted to, and reviewed by
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the BLGF Central Office, in coordination with the concerned BIR Regional Office:
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Provided, 
further, That the SMV complies with all the requirements set by the
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Secretary of Finance, including the conduct of at least one (1) public consultation on
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the proposed SMVs. The power of the Secretary to approve the SMV shall not be
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construed to abridge the power of LGUs to adjust assessment levels and tax rates in
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accordance with Section 15 of this Act, and to provide relief to residential real property
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owners as deemed necessary.
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Sec. 14. Approval of Schedule of Market Values. - The Secretary of Finance
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shall approve the SMV in accordance with internationally accepted valuation
31 
standards, within thirty (30) days from receipt of the joint endorsement of the BLGF
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Executive Director and the Commissioner of Internal Revenue; otherwise, said
10


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schedule shall be deemed approved. In case of sudden changes in the market values,
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including but not limited to, ancestral domain, public land, agrarian reform
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beneficiaries, and other vulnerable sectors, the assessor is mandated to recommend
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to the sanggunian tax rates and assessment levels that will maintain or minimally
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affect the real property tax due for the aforementioned property.
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The approved SMVs shall take effect fifteen (15) days after its publication by
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the DOF in the Official Gazette ov in at least two (2) newspapers of general circulation,
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and posting in the respective provincial capital, city hall and municipal hall, and in two
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(2) other conspicuous public places within the LGU covered by the approved SMVs.
10 
The DOF and the concerned LGUs shall post the approved SMVs in their official
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website.
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Sec. 15. Setting Assessment Levels and Tax Rates. - The approved SMV shall
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be transmitted to the concerned local chief executive, through the respective
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provincial, city, and municipal assessor. The concerned assessor, in coordination with
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the local treasurer, shall estimate the revenue and tax impact of the new SMV based
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on existing assessment levels and tax rates, and recommend amendments thereon
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based on three (3) proposed options. The assessor shall thereafter prepare and submit
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the revenue and tax impact report to the local chief executive for consideration.
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The local chief executive shall transmit the approved SMV, together with the
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revenue and tax impact report, within fifteen (16) days from receipt of the same to
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the sanggunian for the enactment of an ordinance setting the appropriate assessment
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levels and tax rates. During the sanggunian's 6G(\\:>q.x^Wox\s prior to the enactment of
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the tax ordinance, it may call upon the assessor to provide technical assistance and
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calculate the revenue and tax impact of additional options in order to arrive at a
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desired level of revenue and tax goals that the sanggunian \n\W adopt. The sanggunian
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shall evaluate and enact the most appropriate assessment levels pursuant to Sec. 218
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of the LGC and tax rates based on the recommendations of the assessor. The
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concerned sanggunian shall enact the tax ordinance within sixty (60) days from receipt
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thereof, upon conduct of public hearings and proper consultations; 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
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levels and tax rates, the local chief executive shall act within ten (10) days, in the case
11


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of cities, including the municipality in the Metropolitan Manila Area, or within fifteen
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(15) days, in the case of provinces, to approve the same. Failure of the concerned
3 
local chief executive to act on the ordinance within the prescribed period shall render
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the same approved: Provided, That this law shall not be construed to abridge the
5 
power of LGUs to lower and adjust assessment levels and tax rates in accordance with
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the provisions of Republic Act No. 7160, otherwise known as the "Local Government
7 
Code of 1991", as amended, to provide with it to residential property owners as
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deemed necessary.
9 
Sec. 16. Publication of Assessment Levels and Tax Rates. - Within ten (10) days
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from the approval of the ordinance for the assessment levels and tax rates, the same
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shall be published by the concerned LGU in a newspaper of local circulation for three
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(3) consecutive days: Provided, That in provinces and cities, including the lone
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municipality within the Metropolitan Manila Area, where there are no newspapers of
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local circulation, the same shall be posted in the provincial capitol, including all
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concerned city halls, or municipal halls, and in two (2) other conspicuous public places
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therein, for at least thirty (30) days: Provided, further, that when available, the
17 
concerned LGU shall post the approved ordinance for the assessment levels of tax
18 
rates in its official website and in other online portals maintained by the LGU.
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Sec. 17. Use of Schedule of Market Values. -The approved SMV shall be used
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as bases for the determination of real property related taxes of national and local
21 
governments, as follows:
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(a) In the conduct of general revision of assessment and property classification
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to ensure the proper cleansing and updating of records, and notification of property
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owners.
25 
(b) In computing any internal revenue tax, the BIR Commissioner shall use the
26 
SMV, or the actual gross selling price in consideration, as stated in real property
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transaction documents, whichever is higher.
28 
(c) For other purposes, such as local transfer tax, tax on sand and gravel,
29 
community tax, fees and charges, or as benchmark for real property appraisal of other
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government agencies, the approved SMV shall be used upon its effectivity.
12


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Provided, however, that in times of national emergency or state of national
2 
calamity, the Secretary of Finance may defer the implementation of the new SMV or
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suspend the conduct of general revision,
4 
Sec. 18. Updating of Schedule of Market Values. — All provincial assessors,
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together with the municipal assessors and the city assessors, including the lone
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municipal assessor within the Metropolitan Manila Area, shall update their respective
7 
SMVs within two (2) years from the effectivity of this Act. Thereafter, they shall update
8 
the SMVs and conduct general revision of property assessments and classifications
9 
once every three (3) years from the date of last revision. The BLGF shall prepare the
10 
schedule for the updating of the SMVs in all provinces and cities, including the
11 
municipality within the Metropolitan Manila Area.
12 
In case of any significant change in market value where the property is located
13 
after the SMV has been approved and prior to the next revision, such as in times of
14 
calamities, disasters, man-made or natural and other adverse circumstances, or where
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corrections of errors and inequalities in the SMV is deemed necessary, or upon the
16 
order of the Secretary of Finance, the provincial and city assessors shall recommend
17 
revisions to the existing SMVs to the BLGF Regional Office, through the BLGF Regional
18 
Director exercising jurisdiction over the LGU concerned; Provided, That, the city
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assessors and the lone municipal assessor within the Metropolitan Manila Area, shall
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recommend revisions to the existing SMVs to the BLGF Central Office.
21 
Such revision or revisions shall be subject to review by the concerned BLGF
22 
Regional Office and the BIR Regional Office which shall complete their review and
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submit their recommendations to the BLGF Executive Director, in accordance with
24 
Sections 13 and 14 of this Act.
25 
Sec. 19. Conduct of Capacity Building Interventions. - The BLGF shall, in
26 
coordination with the Philippine Tax Academy of the DOF, develop and conduct the
27 
necessary trainings for all local assessors, local officials and staff, and other concerned
28 
BIR personnel in the preparation of the SMVs in accordance with internationally
29 
accepted valuation standards, concepts, principles and practices, conduct of impact
30 
studies, preparation of compliance reports, and other subject areas.
13


1 
Chapter 2
2 
Development and Maintenance of Real Property Market Database
3 
Sec, 20. Development of Rea! Property Information System. - The BLGF shall
4 
develop and maintain an up-to-date electronic database of the sale, exchange, lease,
5 
mortgage, donation, transfer and all other real property transactions and declarations
6 
in the country and on the cost of construction or renovation of buildings and other
7 
structures, and on the prices of machinery.
8 
For this purpose, the BLGF shall require the mandatory submission of necessary
9 
documents from the concerned officials or employees of national government offices
10 
or instrumentalities, LGUs, and the private sector: Provided, That in the case of
11 
government agencies and instrumentalities, the mandatory submission of documents
12 
and information shall be subject to the prohibition of disclosure of certain information
13 
under the Data Privacy Act and other existing laws. The updated database shall be
14 
made available to the LGUs, national government agencies and the private sector:
15 
Provided, further. That the Commissioner of Internal Revenue or a duly authorized
16 
representative shall be allowed access to the database without need of prior approval:
17 
Provided, finally. That non-submission of the required documents to the BLGF will
18 
subject the concerned official or employee to administrative penalties pursuant to the
19 
provisions of Section 28 of this Act.
20 
To further ensure the efficiency of real property tax administration, all
21 
provinces, cities and municipalities shall automate their operations, adopt tax mapping
22 
technology, maintain software-enabled valuation systems, undertake regular data
23 
cleansing, and computerize records management. The National Government, through
24 
the Department of Information and Communications Technology (DICT), shall provide
25 
the appropriate equipment and connectivity, information and communications
26 
technology platform, and the appropriate training and capability building programs to
27 
third class up to sixth class municipalities and provinces to ensure compliance with
28 
this section. The BLGF shall establish mechanisms for the electronic submission of the
29 
required documents in accordance with the provisions of Chapter 2, Article II of this
30 
Act.
31 
Sec. 21. Duty of Register of Deeds to Supply Assessors with Real Property
32 
Transactions Data. - The Register of Deeds shall prepare and submit to the provincial
14


1 
assessors, together with the municipal assessors, and city assessors, including the
2 
lone municipal assessor in the Metropolitan Manila Area, an abstract of the entire
3 
registry every three (3) months and copies of all contracts selling, transferring or
4 
otherwise converting, leasing, or mortgaging real property registered every end of the
5 
month. The abstract shall include brief but sufficient descriptions of the real properties
6 
entered therein, their present owners, and the dates of their most recent transfer or
7 
alienation accompanied by copies of corresponding deeds of sale, donation, or
8 
partition, or other forms of alienation.
9 
Sec. 22. Duty of Official Issuing Building Permits or Certificates of Registration
10 
of Machinery to Transmit Copy of Permit to the Assessor. - Any public official or
11 
employee who may now or hereafter be required by law or regulation to issue to any
12 
person a permit for the construction, addition, repair or renovation of a building, or
13 
permanent improvement on land, or a certificate of registration for any machinery,
14 
including machines, mechanical contrivances and apparatus attached or affixed on
15 
land or to another real property, shall transmit a copy of such permit or certification
16 
within thirty (30) days of its issuance to the assessor of the province, city or
17 
municipality where the property is situated.
18 
Sec. 23. Duty of Geodetic Engineers to Furnish Copy of Plans to the Assessor.
19 
- It shall be the duty of all geodetic engineers, public or private, to furnish free of
20 
charge, the assessor of the province, city or municipality where the land is located, a
21 
copy of the blue or white print of each of all approved original subdivision plans or
22 
maps of surveys, duly signed by a Senior Geodetic Engineer, executed by them every
23 
end of the month from receipt of such approved plans from the Land Management
24 
Bureau (LMB), the Land Registration Authority (LRA), or the Housing and Land Use
25 
Regulatory Board (HLURB), as the case may be.
26 
Sec. 24. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial,
27 
City or Municipal Assessor. - It shall be the duty of the Registrar of Deeds and notaries
28 
publish to furnish, free of charge, the provincial, city or municipal assessor with copies
29 
of ail contracts selling, transferring, or otherwise conveying, leasing, or mortgaging
30 
real property received by, or acknowledged before them within such periods as the
31 
BLGF shall prescribe.
15


1 
Sec. 25. Transmission of Reai Property Transactions Data to the BLGF. - Upon
2 
operationalization of the real property transactions database as provided in Section 20
3 
of this Act, it shall be the duty of the registers of deeds, notaries public, officials issuing
4 
building permits, and the geodetic engineers conducting surveys within a locality to
5 
electronically transmit to the concerned BLGF Regional Office relevant real property
6 
transactions data, in accordance with the rules and regulations to be promulgated by
7 
the Secretary of Finance.
8 
Chapter 3
9 
Appointment and Qualifications of Assessors
10 
Sec. 26. Appointment of Assessors. -The local chief executive shall appoint the
11 
provincial, city and municipal assessors and assistant assessors, as the case may be,
12 
in accordance with Civil Service Law, Real Estate Service Act, rules and regulations
13 
and the following guidelines;
14 
(a) In the case of provincial and assistant provincial assessors and city
15 
and assistant city assessors, the appointee shall be chosen from the list of at
16 
least three (3) ranking eligible candidate within the region;
17 
(b) In the case of city and assistant city assessors, and the municipal
18 
and assistant municipal assessors in the Metropolitan Manila Area, the
19 
appointee shall be chosen from the list of at least three (3) ranking eligible
20 
candidates within the region; and
21 
(c) In the case of municipal and assistant municipal assessors, the
22 
appointee shall be chosen from the list of at least three (3) ranking eligible
23 
candidates within the province; and
24 
(d) The appointment of an assistant assessor shall be optional for
25 
provincial, city, and municipal governments.
26 
The assessors shall be under the technical supervision of the BLGF, primarily
27 
through a system of compliance reporting and of capacity building through education
28 
and training programs.
29 
Sec. 27. Qualification of Local Government Assessors. - No person shall be
30 
appointed assessor or assistant assessor unless a citizen of the Philippines, a resident
31 
of the region for a provincial or city assessor/assistant assessor, and of the province
16


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
for a municipal assessor/assistant assessor, a registered and licensed real estate 
appraiser, of good moral character, and must not have been convicted of any crime 
involving moral turpitude: Provided, that the appointee is a holder of a college degree 
preferably in real estate management/service, civil or mechanical engineering, 
commerce, or any other related course: Provided, further, that the accessory and 
assistant assessor must have experience in real property valuation or assessment work 
in any suitable field, either in private or public practice, for at least five (5) years in 
the case of the provinces and cities, and three (3) years in the case of the 
municipalities. Once appointed, all assessors and local government appraisers must 
comply with the requirements of the Professional Regulatory Board of Real Estate 
Service for the regular updating of their licenses.
ARTICLE IV 
PENAL PROVISIONS
Sec. 28. Failure to Comply with the Required Submission of Documents. - A 
government official or employee who fails without justifiable reason to provide or
17 
furnish data or information required pursuant to Sections 20, 21, 22, 23, 24, and 25
18 
of this Act, shall be punished by a fine equivalent to one (1) month to six (6) months
19 
basic salary of the official or employee, or suspension from the service for a period
20 
not exceeding one (1) year, or both, at the discretion of the competent authority. A
21 
person who fails without justifiable reason to provide or furnish data or information
22 
required pursuant to Sections 20, 23, 24, and 25 of this Act, shall be punished by a
23 
fine equivalent to Sixty Thousand Pesos (Php 60,000) up to Three Hundred Sixty
24 
Thousand Pesos (Php 360,000), or suspension from the practice of profession for up
25 
to one (1) year or both, at the discretion of the competent authority.
26 
Sec. 29. Failure to Comply with the Valuation Standards: - An assessor who,
27 
for unjustifiable reasons, fails to comply with the valuation standards developed and
28 
adopted pursuant to this Act, or deliberately conceals any deviation or departure from
29 
such standards in the valuation of real property, shall be punished by a fine equivalent
30 
to one (1) month to six (6) months basic salary of the official or employee, or
31 
suspension from the service for a period not exceeding one (1) year, or both, at the
32 
discretion of the competent authority.
17


1 
Sec. 30. Failure to Prepare Schedule of Market Values. - An assessor who, for
2 
unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs
3 
within the period set forth in this Act shall be punished by a fine equivalent to one (1)
4 
month to six (6) months basic salary of the official or employee, or suspension from
5 
the service for not more than one (1) year, or both, at the discretion of the competent
6 
authority. This shall also be a ground for administrative and criminal liability in
7 
accordance with the provisions of Republic Act No 9646, otherwise known as the "Real
8 
Estate Service Act of the Philippines".
9 
Sec. 31. Government Agents Delaying the Review, Approval and
10 
Implementation of the SMV, and Conduct of General Revisions. - Any government
11 
official or employee who delays, without justifiable cause, the review, approval and
12 
implementation of the SMVs, the conduct of general revisions, or causes the improper
13 
use thereof, shall be punished by a fine equivalent to one (1) month to six (6) months
14 
basic salary of the official or employee, or suspension from the service for a period
15 
not exceeding one (1) year, or both, at the discretion of the competent authority.
16 
Sec. 32. Violation of Other Provisions. — Any person, whether natural or
17 
juridical, who violates any provision of this Act other than those punishable under
18 
Sections 28, 29, and 30 hereof shall, when warranted, be dealt with under applicable
19 
existing laws.
20 
Sec. 33. Taxpayers' Remedies in Case of Erroneous Assessments of Real
21 
Properties. - The provisions of Sections 226 on Local Board of Assessment Appeals
22 
and 229 on Action by the Local Board of Assessment Appeals of Republic Act No.
23 
7160, as amended, shall apply in all cases of appeal as remedies for the taxpayers in
24 
the assessment of their properties.
25 
All concerned local governments shall cause the constitution of a fully
26 
functioning Local Board of Assessment Appeals in their respective jurisdictions, in
27 
coordination with the Land Registration Authority.
28 
ARTICLE V
29 
TRANSITORY PROVISIONS
30 
Sec. 34. Transitory Guidelines. - LGUs which are in the process of updating their
31 
SMVs shall, upon the effectivity of this Act, continue with such revisions in accordance
18


1 
with Sections 15, 16, 17, and 18 of this Act: Provided, That proper notification and
2 
coordination with the BLGF shall be undertaken.
3 
In case the SMVs are not yet available or updated, the BIR Commissioner shall
4 
adopt the existing SMVs, zonal values or the actual price in consideration as stated in
5 
real property transaction documents, whichever is higher, for purposes of computing
6 
any internal revenue tax.
7 
Sec. 35. Saving Clause. - The zonal values, as determined by the BIR and
8 
approved by the Secretary of Finance for internal revenue tax purposes, and the SMVs
9 
prepared by the provincial assessors, and municipal assessors including the municipal
10 
assessor in the Metropolitan Manila Area, that have been approved by their respective
11 
sangguniansfo'c real property taxation purposes shall continue to be in force and effect
12 
until repealed, superseded, modified, revised, set aside, or replaced by the values
13 
provided under the updated SMVs as approved in accordance with Sections 15 of this
14 
Act, which shall be within two (2) years upon the effectivity of this Act.
15 
To cushion the impact in case of a sudden increase in real property values,
16 
LGUs are enjoined to utilize the provisions on setting assessment levels and tax rates
17 
under Section 15 of this Act.
18 
ARTICLE VI
19 
FUNDING REQUIREMENTS
20 
Sec. 36. Budgetary Requirements for the Updating of Schedule of Market
21 
Values. - Each local sanggunian shall appropriate the necessary funds from locally
22 
generated revenues, the Internal revenue allotment or such other sources every fiscal
23 
year to constitute the Real Property Tax Administration Fund (RPTAF), which shall be
24 
established and used for the proper implementation of the updating of the SMVs and
25 
general revision of real property assessments, and the administration of real property
26 
taxes in all LGUs.
27 
The BLGF shall annually furnish the Department of Budget and Management
28 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in its review
29 
of the ensuing year's budget of provinces, highly urbanized cities, independent
30 
component cities and municipality within the Metropolitan Manila Area, shall ensure
19


1 
that sufficient funds are so appropriated for the RPTAF: Provided, That failure to
2 
provide the appropriations required shall render their annual budgets inoperative.
3 
ARTICLE VII
4 
Miscellaneous Provisions
5 
Sec. 37. Disincentive Stipuiations, - Notwithstanding the provisions of existing
6 
laws to the contrary, the failure to conduct a general revision of assessment and
7 
property classification, and use of the approved SMV shall render an LGU ineligible for
8 
any conditional or performance-based grant or to contract any form of credit financing.
9 
Sec. 38. Appropriations. — The amount necessary for the implementation of
10 
this Act.shall be included in the annual General Appropriations Act.
11 
Sec. 39. Suppletory Appiication of Existing Laws. - The provisions of Republic
12 
Act No. 7160, otherwise known as the "Local Government Code of 199T', as amended,
13 
and other laws consistent with this Act shall have suppletory effect.
14 
Sec. 40. Impiementing Ruies and Reguiations (IRR). Within six (6) months
15 
after the effectivity of this Act, the DOF shall, in consultation with concerned parties,
16 
issue the IRR for the effective implementation of this Act.
17 
Sec. 41. Separability Clause. - If any section or provision of this Act shall be
18 
declared unconstitutional or invalid, other sections or provisions not affected thereby
19 
shall continue to be in full force and effect.
20 
Sec. 42. Repealing Clause. —The following provisions are hereby repealed;
21 
(a) Sections 212 and 214 of Republic Act No. 7160, otherwise known as
22 
the "Local Government Code of 1991", as amended; and
23 
(b) Section 4(h) of Presidential Decree No. 538.
24 
The following provisions are hereby amended accordingly:
25 
(1) Section 33, Chapter IV, Title II, Book IV, of Executive Order
26 
No. 292, otherwise known as the "Administrative Code of 1987:
27 
(2) Sections 19, 135(a), 138, 201, 218, 220, 472(a), 472(b)(8),
28 
and 473(a) of Republic Act No. 7160;
29 
(3) Sections 5, 6, and 7 of Republic Act No. 10752, otherwise
30 
known as "The Right-of-Way Act";
31 
(4) Section 9 of Presidential Decree No. 921; and
20


(5) Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, 
otherwise known as the National Internal Revenue Code of 1997, as 
amended.
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. 43. Effectivity. -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,
21