EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
’ v! 
o( »']•' ■
S E N A T E  
Senate Bill No.
•19 JUL 16 All :28
5 1 9
atru'/MV...
Introduced by Senator JUAN MIGUEL F. ZUBIRI
AN ACT
INSTITUTING REFORMS IN REAL PROPERTY VALUATION IN THE 
PHILIPPINES, ESTABLISHING THE NATIONAL VALUATION AUTHORITY AND
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
National and local government units (LGUs) must control dependable sources of 
revenues that shall be wisely allocated to implement its policies and deliver basic services 
to its constituents. Governments need to ensure that the tools needed to implement good 
governance are efficient, responsive and transparent. These features are found in the 
policies and mechanisms provided for in the proposed Real Property Valuation Reform 
Bill.
The Bill proposes the adoption of a just, equitable, impartial and nationally 
consistent valuation based on internationally accepted standards, concepts, principles and 
practices. This will directly benefit government agencies such as the Department of 
Environment and Natural Resources, Department of Public Works and Highways, 
Department of Agrarian Reform, National Power Corporation, Government Service 
Insurance System, Social Security System, Land Registration Authority, Land Bank of the 
Philippines, Bureau of Internal Revenue, and the Commission on Audit, among others. 
Likewise, private banks and parties to transactions will enjoy the advantages of uniform 
valuation standards over the chaos and disparities that hold sway at present.
Presently, more than 23 government agencies undertake real property valuation 
with conflicting assessments. It is estimated that LGUs assess real property lower than 
the BIR by 13-94 percent. Meanwhile, the zonal values used by the BIR are 5- 930 % 
lower than values used by private appraisers. With rampant over-valuation or 
undervaluation, public and private transactions are often marked by litigation and 
corruption. In addition, the need for reform gains urgency in light of globalization wherein 
real properties are subjected to cross-boundary transactions.
This Bill proposes to create the National Valuation Authority (NVA) attached to the 
Department of Finance. It shall be responsible for the following: development of 
generally-accepted and internationally-recognized valuation standards; review of local 
Schedule of Market Values; development and maintenance of database of real property 
transactions and prices; keeping abreast of global and local trends; and, maintenance of 
a roster of appraisers and assessors in government.
Finally, this Bill will pave the way for National Government and LGUs to realize the 
value of its own assets, of which real estate is estimated to account for 50-75% of a 
nation's wealth. As the valuation becomes transparent and depoliticized, parties to


transactions will more likely pay the correct taxes if they are assured of fair valuation and 
verifiable market value. Consequently, LGUs collect more revenue while being liberated 
from 
over-dependence on 
Internal 
Revenue Allocation. 
Similarly, 
the 
National 
Government will have more resources to implement its mandates. It will also encounter 
lesser hitches brought about by the existing valuation disparities involving real property 
for vital projects such as transport, power and water infrastructures nationwide, among 
others.
The immediate passage of this Bill, is therefore, respectfully sought.
JUAN'MIGUEL F. ZUBIRI


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
. 'ilDllitr o( I'H' 
M ‘ '
*19 JUL 16 All -28
Introduced by Senator JUAN MIGUEL F. ZUBIRI
AN ACT
INSTITUTING REFORMS IN  REAL PROPERTY VALUATION IN  THE 
PHILIPPINES, ESTABLISHING THE NATIONAL VALUATION AUTHORITY AND
APPROPRIATING FUNDS THEREFOR
Be it  enacted b y the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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SECTION 1. S h o rt Title. - This Act shall be known as the 'The Real Property
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Valuation Reform A ct o f 2019."
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ARTICLE I
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DECLARATION OF POLICY AND OBJECTIVES,
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AND DEFINITION OF TERMS
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SEC. 2. Declaration o f Policy and Objectives. - It is the policy of the State to
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promote the development and maintenance of a just, equitable, impartial, and nationally
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consistent real property valuation based on internationally accepted valuation standards,
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concepts, principles, and practices. Towards this end, the State shall:
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(a) Establish and maintain valuation standards to govern the valuation of real
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property in the country;
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(b) Adopt market value as the single real property valuation base for the
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assessment of all real property related taxes in the country, and for valuing or
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appraising real property for various transactions by all government agencies;
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(c) Separate the function of valuing or appraising of real properties from the
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functions of tax policy and administering the taxes due thereon;


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(d) Support the development and professionalization of the valuation/appraisal 
practice in the country pursuant to Republic Act No. 9646;
(e) Provide a comprehensive and up-to-date electronic database of all real property 
transactions;
(f) 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 making it abreast with global 
developments; and
(g) Ensure transparency in real property transactions to protect consumers and 
develop confidence in the work of appraisers and assessors.
SEC. 3. D e fin itio n  o f  Terms. - As used in this 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


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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 -  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.
(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, unrelated 
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.
(j) Real Property -  refers to all the rights, interests, and benefits related to the 
ownership of real estate, plant, machinery, and equipment;


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(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.
( l) 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 or 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 
judgm ent as of a specific date and for a specific purpose.
ARTICLE I I
NATIONAL VALUATION AUTHORITY AND THE REGIONAL OFFICES
Chapter 1
Establishing a National Valuation A uthority
SEC. 4. Establishm ent o f a N ational Valuation A uthority. - To achieve the
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policy and objectives declared in this Act, there shall be established a National Valuation
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Authority (NVA), hereinafter referred to as the Authority, which shall be the primary
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agency of the government on matters concerning the valuation or appraisal of real
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properties in the Philippines. The Property Valuation Office (PVO) established within the
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Department of Finance (DOF) shall serve as the nucleus of the Authority. The Authority
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shall be attached to the DOF and shall have its central office in Metro Manila.
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SEC. 5. Powers and Functions o f the A uthority. - The Authority shall have
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the following powers and functions:
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(a) Develop, adopt, and maintain valuation standards consistent with generally
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accepted valuation standards, regulations and specifications for real property


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appraisal used for tax and other purposes, and ensure compliance therewith 
by national government agencies, local government units, and other concerned 
patties;
(b) Review and approve 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;
(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, national 
government agencies, private sector institutions and individuals dealing with 
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 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, 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 of this Act.
SEC. 6. H e a d  o f  A u th o rity . - The Authority shall be headed by a Director General
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who shall be appointed by the President of the Philippines upon the recommendation of


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the Secretary of Finance. The Director General must be a Filipino citizen, of good moral
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character, a graduate in engineering, accounting or appraisal related degrees, and a
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licensed 
appraiser, 
or assessor, 
with 
at 
least ten 
(10) 
years 
experience 
in
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valuation/appraisal or assessment of real properties. The Director General shall have the
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salary grade equivalent to the rank of an Assistant Secretary under the Salary
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Standardization Law.
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SEC. 7. Responsibilities o f the D irector General. - The Director General shall
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be responsible for the efficient and effective performance of the statutory responsibilities
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of the Authority set forth in this Act and for the overall internal management and 
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governance of the Authority. For this purpose, the Director General shall:
(a) Develop and implement policies, plans, programs, and operating standards for 
the attainment of the objectives and mandate of the Authority;
(b) Provide policy direction and leadership in all aspects of valuation/appraisal and 
their implementation in the regional offices;
(c) Advise and assist the Secretary of Finance and other government agencies on 
matters pertaining to real property valuation/appraisal;
(d) Exercise administrative supervision over the central and regional offices, and 
provide technical assistance to the local government assessors; and
(e) Perform such other functions as may be provided by law, or required in 
pursuance of the law or the demand of the statutory responsibilities of the 
Authority.
SEC. 8. Creation o f an Advisory Board. - (a) There shall be created an Advisory
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Board, hereinafter referred to as the Board, composed of a representative each from the:
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1) Department of Finance (DOF);
2) Bureau of Local Government Finance (BLGF);
3) Bureau of Internal Revenue (BIR);
4) Department of Environment and Natural Resources (DENR);
5) Bangko Sentra! ng Pilipinas (BSP);


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6) National organization of government assessors;
7) Private appraisal sector;
8) Union of Local Authorities of the Philippines (ULAP); and
9) The Director General of the NVA as an ex officio member.
(b) The member-representatives from the DOF, BLGF, BIR, and DENR shall be 
appointed by the President of the Philippines from the nominees of the 
respective Department Secretaries from officials performing valuation-related 
functions whereas the member-representative from the BSP shall be appointed 
by the Bangko Sentra! Governor. The representatives from the national 
organization of government assessors, the private sector, and ULAP shall be 
appointed by the President from the nominees of the national government 
assessors, private appraisers' organizations, and ULAP, respectively.
(c) The President of the Philippines shall appoint the Chairperson from among the 
government member-representatives of the Board. The Authority shall provide 
the secretariat and other support services to the Board.
(d) The members of the Board shall serve for a maximum of three (3) years. In 
case of vacancy in the Board, the person so appointed or designated shall serve 
only for the unexpired term. They shall not receive additional salary for the 
performance of their functions but they shall be entitled to honoraria pursuant 
to existing laws and regulations.
(e) The Board shall meet at the initiation of the Chairperson or any Board Member 
at least once every three (3) months. It shall have as many special meetings 
as it may deem necessary for the performance of its functions and may require 
the presence of representatives from concerned agencies whenever necessary. 
The Board shall also formulate and adopt its internal rules and regulations for 
the conduct of its meetings.


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SEC. 9. Functions o f the Advisory Board. - The Board shall advise the Director 
General on matters pertaining to valuation/appraisal and shall have the recommendatory 
power on the following:
(a) Adoption of the valuation standards; and
(b) Setting, maintenance, and compliance monitoring of the valuation standards 
prepared and developed pursuant to Section 14 of this Act.
Chapter 2
Organization o f the Authority's Regional Offices
SEC. 10. Establishm ent o f Regional Offices. - There shall be established in
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every administrative region of the country a Regional Office of the Authority, headed by
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a Regional Director who shall be appointed by the Secretary of Finance upon the
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recommendation of the Director General. The Regional Director must be a Filipino citizen,
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of good moral character, a graduate in engineering, accounting or appraisal related
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degrees, a licensed appraiser, or assessor, with at least five (5) years of experience in
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valuation/appraisal or assessment of real property. The Regional Director shall have a
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salary grade equivalent to Director III under the Salary Standardization Law.
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The Regional Directors collectively shall serve as a corps of officers that constitute
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the next in rank to the Director General and designation to the Director General's office
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may be made from their ranks.
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There shall be a phased implementation of the Regional Offices.
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SEC. 11. Functions o f the Regional Offices. - The Regional Offices, under the
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Regional Director, shall have the responsibility for all issues relating to valuation/appraisal
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and SMVs in the region, such as:
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(a) Implement laws, policies, plans, programs, rules and regulations of the
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Authority in the Region;
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(b) Review and recommend the approval of the proposed SMVs prepared by the
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provincial assessors together with the municipal assessors, and city assessors,
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including the municipal assessor of Metro Manila, for tax and other purposes;


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(c) Provide economical, efficient, and effective service relating to the Authority's 
mandate to all government agencies and other concerned parties within the 
region;
(d) Coordinate with regional offices of other government departments, bureaus, 
and agencies within the region dealing with real property valuation/appraisal;
(e) Provide leadership and 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 government assessors; and
(g) Perform other functions as may be assigned by the Director General.
SEC. 12. The Regional Consultative Committee. - (a) There shall be created
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in every administrative region a Regional Consultative Committee, hereinafter referred to
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as the Committee, composed of a representative each from:
1) Bureau of Local Government Finance - Regional Office;
2) Bureau of Internal Revenue - Regional Office;
3) Department of Environment and Natural Resources -Regional Office;
4) Regional organization of government assessors;
5) Private appraisal sector within the region; and
6) Regional banking association.
(b) The members of the Regional Consultative Committee shall elect the 
Chairperson from among themselves.
(c) The members of the Regional Consultative Committee must be performing 
valuation/appraisal related functions, and shall be appointed by the Regional 
Director of the agency concerned, while the representative from the 
organization of government assessors, private appraisal sector, and banking 
association within the region shall be appointed by the head of their respective 
organization.
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(d) The members shall serve for a maximum of three (3) years, otherwise 
shortened or terminated by the appointing authority. In case of vacancy in the 
Committee, the person so appointed or designated shall serve only for the 
unexpired term. The chairperson and members of the Committee shall not 
receive additional salary for the performance of their functions but they shall 
be entitled to honoraria pursuant to existing laws and regulations.
(e) The Committee shall meet on the initiation of the Regional Director or any of 
the Board Members at least once every three (3) months. It shall have as many 
special meetings as it may deem necessary for the performance of its functions. 
The Committee shall also formulate and adopt its internal rules and regulations 
for the conduct of its meetings.
SEC. 13. 
F u n c tio n s  o f  th e  C om m ittee . - The Committee shall sen/e as a
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consultation forum in the region for discussion on property market reports; concerns of
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taxpayers, civil society, and other stakeholders; outcome of Compliance Reporting in the
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region; level of complaints and appeals; local government unit training in the region;
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appraiser and assessor concerns in general; and other matters as may be determined by
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the Committee.
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ARTICLE III
VALUATION OF REAL PROPERTIES 
Chapter 1
Valuation Standards and M arket Values
SEC. 14. D e v e lo p m e n t o f  V aluation S tandards. - Notwithstanding the
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provisions of existing laws to the contrary, the Authority shall develop, adopt, maintain
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and implement uniform valuation standards which shall be used by all appraisers and
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assessors of national and local government agencies and its instrumentalities, and other
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concerned parties in appraising or valuing lands, buildings, machinery and other real
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properties for taxation and other purposes. The valuation standards must conform with
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the generally accepted valuation principles and internationally accepted standards.
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SEC. 15. V a lu a tio n /A p p ra is a l o f  R ea! P ro p e rty. - For valuation purposes, all 
real property, whether taxable or exempt, shall be valued or appraised at the market 
value prevailing in the locality where the property is situated, in conformity with the
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valuation standards adopted under this Act. The Authority shall promulgate the rules and
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regulations for the classification and valuation/appraisal of real property pursuant to the
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provisions of this Act. It shall provide leadership in ensuring rationalized valuation of real
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properties transcending political boundaries.
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For real properties intended for low-cost or socialized housing and other programs
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of the government imbued with social policy objectives, the provisions of existing
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pertinent laws shall be applied on the prevailing market value of these properties.
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SEC. 16. Preparation o f Schedule o f M arket Values. - Provincial assessors
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together with municipal assessors, and city assessors, including the municipal assessor
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in Metro Manila, shall prepare the SMVs for the different classes of real property situated
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within their respective local government units, pursuant to the valuation standards and
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specifications set by the Authority. The said SMVs shall be submitted by the assessor
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concerned, upon proper information to the local chief executive and the Sanggunian, to
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the Authority's Regional Office for review and compliance with other requirements. The
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said SMVs shall then be submitted to the Authority's Central Office for approval within
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sixty (60) days from receipt thereof. The Authority shall review and approve the SMV
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within thirty (30) days upon receipt of the same; otherwise, said schedule shall be
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deemed approved.
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The Authority shall transmit the approved SMV to the concerned assessor who
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shall confer with the local chief executive regarding the said approved SMV. Likewise, the
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concerned assessor shall submit to the local chief executive a revenue impact report of
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the new SMV as against the existing assessment levels and tax rates, and shall provide
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the Sanggunian, through the Chairperson of the Committee on Ways and Means, a copy
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of such report. The local chief executive shall transmit the approved SMV together with
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the revenue impact report within fifteen (15) days from receipt of the same to the
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Sanggunian for the enactment of an Ordinance setting the 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.
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Upon the enactment by the Sanggunian of an Ordinance for the assessment levels
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and tax rates, the local chief executive shall act within ten (10) days, in the case of cities
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and municipality in Metro Manila, or within fifteen (15) days, in the case of provinces, to
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approve the same. Failure of the concerned local chief executive to act on the Ordinance
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within the prescribed period shall render the same approved.
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The approved Ordinance together with the SMV shall be published by the
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concerned local government unit in a newspaper of local circulation once a week for two
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consecutive weeks: Provided, however, That in provinces, cities and municipalities where
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there are no newspapers of local circulation, the same shall be posted in the provincial
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capital, city or municipal hall and in two (2) other conspicuous public places therein. The
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Authority shall also publish the approved SMV on its official website.
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SEC. 17. Use o f Schedule o f M arket Values. -  The SMV as approved by the
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Authority shall be used for the general revision of real property values and as basis for
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the determination of real property related taxes imposed by the national and local
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governments. 
For purposes of computing any internal revenue tax, the BIR
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Commissioner shall adopt the SMV or the actual price in consideration as stated in real
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property transaction documents, whichever is higher.
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SEC. 18. Revision o f Scheduie o f M arket Vaiues. - The Authority shall
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formulate the program for the regular revision of SMVs. All provincial assessors together
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with the municipal assessors, and city assessors, including the municipal assessor in Metro
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Manila, shall undertake a revision of their respective SMVs within two (2) years from the
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establishment of the Authority. Thereafter, they shall undertake a revision of SMVs not
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earlier than three (3) years from the date of last revision, but not later than five (5) years.
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In case of any significant change in the market where the property is located after 
the said SMV has been approved and prior to its next revision, the provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, may recommend to the Authority revisions to their existing 
SMV.
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SEC. 19. 
C o n d u c t o f  T ra in in g  a n d  S em inars. -  For the effective
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implementation of this Act, the Authority shall conduct the necessary trainings and
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seminars for all local assessors and other local officials/staff on the preparation of SMV
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in accordance with internationally accepted valuation standards, concepts, principles and 
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practices, preparation of impact study reports of the approved SMVs.
Chapter 2
Development and Maintenance o f Real Property Database
SEC. 20. Developm ent o f Rea! P roperty Database. - The Authority shall
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develop and maintain an up-to-date electronic database of the sale, exchange, lease,
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mortgage, donation and all other real property transactions in the country and on the
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cost of construction or renovation of buildings and other structures, and on prices of
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machinery. For this purpose, the Authority is hereby authorized to require the mandatory
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submission of necessary documents from the concerned officials or employees of national
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government offices or instrumentalities, local government units, and the private sector.
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The updated database shall be made available to the local government units, national
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government agencies, and the private sector as well.
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SEC. 21. D uty o f Register o f Deeds to Supply Assessors o f Rea! P roperty
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T ransactions D ata. - The Register of Deeds shall prepare and submit to the provincial
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and city assessors, including the municipal assessor in Metro Manila, an abstract of his
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registry every three (3) months and copies of all contracts selling, transferring or
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otherwise converting, leasing, or mortgaging real property registered by him/her every
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end of the month. The abstract shall Include brief but sufficient description of the real
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properties entered therein, their present owners, and the dates of their most recent
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transfer or alienation accompanied by copies of corresponding deeds of sale, donation,
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or partition or other forms of alienation.
SEC. 22. D uty o f O fficial Issuing Building Perm its o r Certificates o f
Registration o f M achinery to Transm it Copy to the Assessor. - Any public official 
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,
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including machines, mechanical contrivances, and apparatus attached or affixed on land
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or to another real property, shall transmit a copy of such permit or certification within
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thirty (30) days of its issuance, to the assessor of the province, city or municipality where
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the property is situated.
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SEC. 23. D u ty o f Geodetic Engineers to Furnish Copy o f Plans to Assessor.
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- It shall be the duty of all geodetic engineers, public or private, to furnish free of charge,
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the assessor of the province, city or municipality where the land is located a copy of the
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blue or white print of each of all approved original subdivision plans or maps of surveys
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executed by them every end of the month from receipt of such approved plans from the
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Land Management Bureau (LMB), the Land Registration Authority (LRA), o rth e  Housing
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and Land Use Regulatory Board (HLURB), as the case may be.
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SEC. 24. D uty o f Assessors to Transm it Docum ents to the A uthority. -  It
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shall be the duty of the assessors to transmit all real property transactions to the Regional
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Office of the Authority data from the Register of Deeds, official issuing building permit
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and geodetic engineers within one (1) month after the receipt of such data. The
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Authority's Regional Office shall record, process and make a summary report of the real
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property data, and submit the same to the Central office within one (1) month from
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receipt of such data.
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Chapter 3
A ppointm ent and Qualifications of Assessors
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SEC. 25. A ppointm ent o f Assessors. - The Secretary of Finance shall appoint 
provincial, city, and municipal assessors, upon recommendation of the local chief 
executive, subject to civil service law, rules and regulations, and 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 recommendees suitable and qualified for appointment within the region;
(b) In the case o f municipal and assistant municipal assessors, appointee shall be 
chosen from the list of at least three (3) ranking eligible recommendees 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 recommendees suitable and qualified for 
appointment within the Metro Manila.
The assessors shall be under the administrative supervision of the concerned local
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government unit and under the technical assistance of the Authority, primarily through a
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system of compliance reporting and provision for education and training for capacity
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building.
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SEC. 26. Q ualifications o f Local Governm ent Assessors. - No person shall
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be appointed assessor or assistant assessor unless such person is a citizen of the
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Philippines, a resident of the region for a provincial or city assessor/assistant assessor
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and of the province for a municipal assessor/assistant assessor, a licensed appraiser, of
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good moral character, a graduate in engineering, accounting, commerce or appraisal
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related degree, and must have an experience in real property valuation or assessment
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work or in any suitable field for at least five (5) years in the case of the provincial or city
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assessor and three (3) years in the case of the municipal assessor, pursuant to the
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provisions of Republic Act No. 9646, otherwise known as the Real Estate Service Act.
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In accordance with Section 30 o f Republic Act No. 9646, after three years from
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the effectivity of this Act all existing and new positions in the national and local
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governments, whether career, permanent, temporary or contractual, and primarily
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requiring the services of any real estate service practitioner, shall be filled only by 
registered and licensed real estate service practitioners.
All incumbent assessors/assistant assessors holding permanent appointments shall 
continue to perform their functions without need for reappointment and without 
diminution of status, rank and salary grade, and shall enjoy security of tenure. However, 
they may not be promoted to a higher position until they meet the qualification
8 
requirements of that higher position as herein prescribed. Nothing in this Act shall be
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construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time
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of the enactment of this Act. The appointing authority shall exercise his power to appoint
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the assessor in accordance with the provisions of Republic Act No. 9646 only when a
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vacancy occurs.
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ARTICLE IV
14 
PENAL PROVISIONS
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SEC. 27. Failure to Comply w ith the Required Submission o f Documents.
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- Any government official or employee who fails without justifiable reason or reasons to
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provide or furnish data or information required by the Authority pursuant to Sections 21,
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22, 23 and 24 of this Act shall be punished by a maximum fine equivalent to the official's
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or employee's six (6) months basic salary or suspension from service for a period not
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exceeding one (1) year, or both, at the discretion of the competent authority.
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SEC. 28. Failure to  Comply w ith the Valuation Standards. - An assessor or
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appraiser who, for unjustifiable reasons, fails to comply with the valuation standards
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prepared and adopted pursuant to this Act, or deliberately concealed any deviations or
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departures from such standards, shall be punished by a maximum fine equivalent to the
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official's or employee's six (6) months basic salary, and suspension from the government
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service or from the practice of profession for a period not exceeding one (1) year, or
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permanent revocation of his/her license at the discretion of the competent authority.
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SEC. 29. Failure to Prepare Schedule o f M arket Values. - An assessor who,
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for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs
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within the period required by the Authority shall be punished, upon conviction, by a
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maximum fine equivalent to the official's or employee's six (6) months basic salary or by 
suspension from government service for not more than one (1) year, or both, at the 
discretion of the competent authority.
SEC. 30. V io la tio n s o f  O th e r P rovisions. - Any person, whether natural or
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juridical, who violates any provision of this Act other than those punishable under Sections
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27, 28, and 29 hereof shall, when warranted, be dealt with under applicable existing laws.
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SEC. 31. Taxpayers' Remedies in Case o f W rong Assessment o f Real
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Properties. - The provisions of Sections 226 (Local Board of Assessment Appeals) and
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(Action by the Local Board of Assessment Appeals) of Republic Act No. 7160,
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otherwise known as The Local Government Code of 1991 shall apply in all cases of appeals
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as remedies for the taxpayers in the assessment of their properties.
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ARTICLE V
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TRANSITORY PROVISIONS
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SEC. 32. Transitory Guidelines. - Within ninety (90) days upon the effectivity
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of this Act, the Authority's Central Office shall be organized. The President of the
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Philippines shall appoint the Director General upon the recommendation of the Secretary
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of the Department of Finance.
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(a) The Director General shall organize the Board pursuant to Section 8 of this Act
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within thirty (30) days upon the organization of the Authority.
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(b)An A d Hoc Committee is hereby created which shall be responsible for the
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formulation of the Authority's Organization, Staffing, and Implementation Plan,
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including the selection and placement of personnel, taking into consideration the
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organizational criteria such as, but not limited to, availability of qualified personnel,
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facilities, budgetary support and others. 
The A d Hoc Committee shall also be
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responsible for drafting the Implementing Rules and Regulations (IRR) for this Act.
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The /It///(9C Committee shall be composed of the Director General as ex-
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chairperson and representatives from the DOF, BLGF, BIR, and National Tax
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Research Center (NTRC) as members.
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(c) After the organization of the Authority's Central Office, the Authority's Regional 
Offices shall be organized.
(d) All existing staff of the PVO in the DOF, records, equipment and appropriations 
provided for the PVO, as determined by the A d Hoc Committee based on the 
approved organization and staffing, shall be transferred to the Authority.
(e) Local government units who are in the process of revising their SMVs upon the 
effectivity of this Act shall continue with such revisions in accordance with Section 
16 of this Act: Provided, That proper notification and coordination with the 
Authority shall be undertaken: Provided, finally. That the newly approved SMVs 
shall be in force and effect for a period of two (2) years.
(f) In case the SMV is not yet available or revised, the BIR Commissioner shall adopt 
the existing SMV or the actual price in consideration as stated in real property 
transaction documents, whichever is higher, for purposes of computing any 
internal revenue tax.
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SEC. 33. Saving Clause. - The zonal values as determined by the BIR and
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approved by the Secretary of Finance for internal revenue tax purposes and the SMVs
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prepared by the provincial assessors together with the municipal assessors, and city
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assessors, including the municipal assessors of Metro Manila, that have been approved
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by their respective Sangguniansfor real property taxation purposes shall continue to be
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in force and effect until repealed, superseded, modified, revised, set aside, or replaced
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by the values provided under the new SMVs as approved in accordance with Section 16
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of this Act, which shall be within two (2) years upon the effectivity of this Act.
ARTICLE V I
FUNDING REQUIREMENTS
SEC. 34. Budgetary Requirem ents fo r Revision o f Schedule o f M arket
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Values. - To ensure the proper implementation of the regular revisions of the SMVs and
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the administration of real property taxes in ail local government units, each local
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Sanggunian shall appropriate the necessary funds equivalent to ten percent (10% ) of the
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one percent (1% ) from the original allocation of the Special Education Fund (SEF). The
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amount so appropriatod shall bo known as the Real Property Tax Administration Fund
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(RPTAF).
The proceeds from the share of the local government unit in the SEF shall 
automatically accrue to the RPTAF to be maintained in every provincial, city or municipal 
treasury offices.
SEC. 35. A p p ro p ria tio n s . - The amount necessary for the initial implementation 
of this Act shall be charged against the current appropriations of the PVO within the DOF.
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Thereafter, such sum as may be necessary for the Authority's continuing operations and
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the proper implementation of this Act shall be included in the annual General
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Appropriations Act.
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ARTICLE V II
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MISCELLANEOUS PROVISIONS
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SEC. 36. Im plem enting Rules and Regulations (IRR). - The Secretary of
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Finance, taking into account the recommendation of the A d Hoc Comm\X.Qe. created under
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this Act and in consultation with other concerned parties, shall issue the IRR for the
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effective implementation of this Act.
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SEC. 37. S uppletory A pplication o f Existing Laws. - The provisions of
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Republic Act No. 7160, otherwise known as the Local Government Code of 1991, and
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other laws consistent with this Act shall have suppletory effect.
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SEC. 38. Repealing Clause. -
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(a) Section 6(E) of Republic Act No. 8424, otherwise known as the National Internal
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Revenue Code (NIRC), as amended, and Sections 199(1), 201, 209(a), 212, 214,
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219, 224(a), 472(a) par 1, and 473(a) par 1 of Republic Act No. 7160, otherwise
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known as the Local Government Code (LGC) of the Philippines, are hereby
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repealed;
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(b)Sections 202, 220, 443(d), 444(b )(l)(v), 454 (d), 455(b )(l)(v), 463 (d), and
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4 6 5 (b )(l)(v) of the LGC, and Section 88(B) of the NIRC are hereby modified
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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. 39. S e p a ra b ility  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. 40. 
E ffe c tiv ity . - 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
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circulation.
Approved,
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