Republic of the Philippines
HOUSE OF REPRESENTATIV!
Quezon City, Metro Manila

NINETEENTH CONGRESS \
First Requtar Ses

HOUSE BILL NO.

INTRODUCED BY REPRI

EXPLANATORY NOTE,

This bill is a refiled bill originally filed by Hon. Xavier Jesus D. Romualdo in the 17" and 18"
Congress. Ii was forwarded to the Senate for its appropriate action last Congress.

The purpose of the real property valuation bill is to introduce vital reforms in the existing policy
of the government by adopting a market based Schedule of Market Values (SMV) to be used as
basis of local and national real property taxation. This will result to a just, equitable, and effivient
real property valuation system which will widen the tax base used for property and property related
taxes of the national and local governnjents and contribute to increase revenues of the government
without imposing any new tax impositjons or adjusting the existing tax rates

It also proposes to reorganize and strengthen the Bureau of Local Government Finance (BLGF) to
provide institutional support and accountability to operationalize the reform agenda as well as
support the long term revenue efforts of the government,

This bill aims to address the following! systemic problems:

rampant outdated valuations used for governmental purposes, especially for national
and focal taxation:

b. cost overruns and foregone revenues clue to low valuations used: overvaluation when
government pays, undervaluation when government collects;

¢, valuation as a political issue}

d. multiple, overlapping valuations in different government agencies, and there is no single
ageiicy responsible for ensuring that valuations are completed in accordance with intemational
jandards. and

€. absence of a comprehensive real property electronic database.
By improving the quality of valuation of local governments and making the revisions frequent,
efficient, transparent, reliable and attuned to market developments, this new law will impact
favorably on revenue generation and resource mobilization of local governments to fund their
service delivery requirement. The reforms are also expected to foster private investors’ confidence,
and build the public's trust in the valuations of government.

‘The favorable support of the Members of Congress is N¥eby sought for the prompt passage of this

laudable measure.

JURDIN iS M. ROMUALDO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS

First Regular Session

nouse Bi No. 197 _

INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO.

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:

SECTION 1. Short Title. — This Act shall be known as the “Real Property Valuation and

Assessment Reform Act”.
ARTICLE 1
DECLARATION OF POLICY AND OBJECTIVES, AND DEFINITION OF TERMS

SEC. 2. Declaration of Policy and Objectives. —t is the policy of the State to promote the
development and maintenance of a just, equitable, impartial, and nationally consistent real property
valuation based on internationally accepted valuation standards, concepts, principles, and practices.
Towards this end, the State shall:

(a) Establish and maintain standards to govern the valuation of real property in the country;

(b) Adopt market value as the single real property valuation base for the assessment of real property
related taxes in the country, and for the valuation of real property for various transactions by all
government agencies; |

(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;

(c) Support the development and professionalization of the valuation practice in the country
pursuant to Republic Act No. 9646, gtherwise 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 pfoperty transactions to protect public interest, and develop

confidence in the valuation system.


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SEC. 3. Definition of Terms. ~

(a) Appraiser also known as valuer, refers to a person who conducts valuation; specifically, one

s used in this Act:

who possesses the necessary qualificatigns, license, ability, and experience to execute or direct the
valuation of real property;

(b) Assessed Value, also known af taxable value, refers to the market value of the property
multiplied by the corresponding assessment level;

(c) Assessment refers 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 of employee in the local government unit (LGU) who is a duly
licensed appraiser, and performs appraisal and 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 feplacement of parts, involving capital expenditures and labor
intended to enhance its value, beauty, or wtility, 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;

(International valuation standards shall refer to standards for undertaking valuation

assessments using generally recognized concepts and principles that promote transparency and

istency 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 fitached, permanently or temporarily, to the real property. It
includes the physical facilities for produgtion, 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;
() Market Value refers to the estimhated amount for which a property shall exchange on the date

tion which is a

of valuation between a willing buyer and a willing seller in an arm’s length tran:
transaction between independent, unrelated parties involving no irregularity, after proper marketing,

wherein the parties had each acted knowledgeably, prudently, and without compulsion;


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(m)Private appraisal sector refers to licensed non-governmental 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;

(0) Real property refers to all the tights, 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 natufe, this type of property is rarely offered for sale in the open
market except as part of a going concer since its special design and function renders conversion to other
types of development or application not economically feasible; and

(1) 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 yalue of the property as of a specific date and for a specific
purpose.

ARTICLE II
THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF)
| Chapter 1
BLGF Central Operations

SEC. 4. Powers and Functions of the Bureau of Local Government Finance (BLGF). ~The BLGF
of the Department of Finance (DOF) shall lead and manage the implementation of the provisions of this
Act. In addition to the powers vested upon it by Executive Order No. 292, otherwise known as the
“Administrative Code of 1987”, it shall exercise the following additional powers and functions:

(a) Develop, adopt, and maintain Valuation standards consistent with internationally accepted
valuation standards, regulations, and specifications for real property appraisal used for taxation and other
purposes, and ensure compliance therewith by LGUs and other concerned parties:

(b) In coordination with the Bureay of Internal Revenue, review and ensure that the Schedule of
Market Values (SMVs) as prepared by the provincial assessors together with the municipal assessors,
and the city assessors, including the lone municipal assessor in the Metropolitan Manila Area is
compliant with real property valuation policies and standards, and recommend its approval to the

Secretary of Finance for local and national taxation, and for other purpos

(c) Provide technical assistance on real property appraisal matters to government agencies and
instrumentalities, and coordinate or conduct the valuation of special purpose property, when requested;

(d) Provide leadership and policy direction to LGUs on real property valuation for taxation and
other purposes, including the development and maintenance of internationally accepted valuation
standards, the regulation of valuation activities and other related matters, and the promotion of valuation
training and seminars;

(c) Maintain a roster of licensed local government appraisers and assessors in consultation and

coordination with the Professional Regulation Commission;


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(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 in valuation, and maintain information on current global
and country trends and developments in real property valuation;

(h) Formulate and provide for uniform procedure on the different transactions in the assessor's
office, including the transfer, annotation, tnd issuance of tax declarations;

(i) Determine, fix, and collect a reasonable amount to be charged as administration fees, fines, and
penalties relative to the implementation of this Act; and

() Perform such other functions as are necessary, proper, and incidental to implement the
provisions of this Act.

SEC. 5. Establishment of the Real Property Valuation Service. — To achieve the policies and
objectives declared in this Act, the Real Property Valuation Service, hereinafter referred to as the RPVS
is hereby established within the BLGF and shall have counterpart personnel in the BLGF Regional
Offices.

SEC. 6. Supervisory Role of the BLGF Executive Director over the RPVS. ~The BLGF Executive
Director shall be responsible for the efficient and effective day-to-day performance of the responsibilities
set forth in this Act, and for the overall interna! management and governance of the RPVS.

SEC. 7. Creation of a Central Consultative Committee. —

(a) A Central Consultative Committee shall be created and shall serve as the consultative forum
on matters pertaining to the setting and ndoption of internationally accepted valuation standards and
other related concerns on real property valuation;

(b) It shall be chaired by the BLGF Executive Director and shall be composed of a representative
each from the:

(1) Bureau of Internal Revenue (BIR);

(2) Department of Environment and Natural Resources (DENR);

(3) Bangko Sentral ng Pilipinas (BSP);

(4) National organization of government assessors;

(5) National organization of appraisers in national government agencies; and

(6) Private appraisal sector:

Provided, That the representative from the private appraisal sector shall be active in the practice of
real estate appraisal for at least five (5) years as certified by the Professional Regulatory Board of Real
Estate Service (PRBRES).

(c) The representatives of the BIR, DENR, and BSP must be performing valuation-related
functions. The national organization of government assessors, and the private appraisal sector shall be
represented by their respective heads of arganizations or their duly qualified representatives;

(@) The Chairperson and members of the Committee shall not receive additional salary for the
performance of their functions. Members of the consultative committee who are not incumbent
government officials or employees shall be entitled to honoraria, pursuant to existing laws and

regulations; and


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(c) The Committee shall meet at the initiation of the Chairperson at least once every semester and
shall have as many meetings as the Chairperson may deem necessary for the adoption of valuation
standards. The Chairperson may invite resource persons on issues concerning real property valuation
Chapter 2
BLGF Regional Operations

SEC. 8. Role of the BLGF Regional Offices. — The BLGF Regional Offices, shall, through the
Regional Director, be responsible for all matters relating to valuation and the supervision of the SMVs
in the region. They shall

(a) Implement policies, plans, programs, rules and regulations on real property valuation of LGUs
in the region;

(b) Review, in coordination with thg BIR, and endorse to the RPVS, the proposed SMVs prepared
by the assessors of the LGUs in the region;

(c) Provide for economical, efficient and effective valuation services in the region;

(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

(0) 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 a representative from the:

(1) BIR — Regional Office;

(2) DENR — Regional Office;

(3) Head of Regional organization of government assessors or its duly authorized representative;

(4) Head of Regional organization of national government appraisers or its duly authorized
representative; |

(5) Head of the private appraisal sector within the region or its 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 sectors; and

(c) The Committee shall meet at the initiation of the BLGF Regional Director at least once every
quarter and shall have as many meetings as the BLGF Regional Director may deem necessary for the
performance of its functions. The BLGF Regional Director may invite resource persons on issues
concerning real property valuation.

SEC. 10. Function of the Regional Consultative Committee. ~ The Regional Consultative
‘Committee shall serve as a consultative forum in the region for discussion on developments in the local
real property market; concerns of taxpayers, civil society, and other stakeholders; outcome of compliance
reporting in the region; level of complaints and appeals; training of local government assessors in the

region; appraisal and assessment concerns in general; and other matters as may be determined by the


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Committee: Provided, That any report thereof, as a result of the forum, shall be submitted to the Central
Consultative Committee.
ARTICLE IIL
VALUATION OF REAL PROPERTIES
Chapter |
Valuation Standards and Market Values
SEC. 11. Development of Valuation Standards. ~ Notwithstanding the provisions of existing laws
to the contrary, the BLGF shall develop, adopt, maintain, and implement uniform valuation standards
which shall be used by all appraisers and assessors in the LGUs and other concerned parties in the
appraisal or valuation of lands, buildings, machinery and other real properties for taxation and other
purposes. The valuation standards shall conform with internationally accepted valuation standards and
principles. |
SEC. 12. Valuation of Real Property. — For valuation purposes, all real properties, whether taxable
or exempt, shall be valued or appraised [based on prevailing market values in the locality where the
property is situated, in conformity with the valuation standards adopted pursuant to this Act. The
Secretary of Finance shall promulgate the Fules and regulations forthe valuation of real property pursuant
to the provisions of this Act.
For real property intended for low-cost or socialized housing and other programs of the government

imbued with social policy objectives, the provisions of existing pertinent laws

all be applied after the
determination of the prevailing market value of these properties in accordance with internationally
accepted valuation standards.

SEC. 13. Preparation of Schedule of Market Values.— The provincial assessors, together with
the municipal assessors, and the city assessors, including the lone municipal assessor in the
Metropolitan Manila Area, shall prepare the SMVs for the different classes of real property situated
within their respective LGUs, pursuant to the valuation standards, rules, regulations, and other
specifications set by the DOF. The preparation of the SMVs shall be completed within six (6) months
following the notice from the BLGF to all local assessors to submit their revised SMVs.

Upon its completion, the local asséssor shall submit the proposed SMV to the BLGF Regional
Office. Within seventy-five (75) days from receipt thereof, the BLGF Regional Office, in coordination
with the BIR Regional Office, shall review and endorse the proposed SMV to the BLGF Executive
Director and the Commissioner of Internal Revenue: Provided, That, in the case of cities and
municipality within the Metropolitan Manila Area, the proposed SMV shall be submitted to, and
reviewed by the BLGF Central Office, in coordination with the concerned BIR Regional Office:
Provided, further, That the SMV complies with all the requirements set by the Secretary of Finance,
including the conduct of at least one (1) public consultation on the proposed SMVs

SEC. 14. Approval of Schedule of Market Values. ~The Secretary of Finance shall approve the
SMV in accordance with internationally accepted valuation standards, within thirty (30) days from
receipt of the joint endorsement of the BLGF Executive Director and the Commissioner of Internal
Revenue; otherwise, said schedule shall be deemed approved. In case of sudden changes in the market

values, including but not limited to, ancestral domain, public land, agrarian reform beneficiaries, and


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other vulnerable sectors, the assessor is mandated to recommend to the sanggunian tax rates and
assessment levels that will maintain or minimally affect the real property tax due for the aforementioned
property.

The approved SMVs shall take effect fifteen (15) days after its publication by the DOF in the
Official Gazette or in at least two (2) newspapers of general circulation, and posting in the respective
provincial capitol, city hall and municipal hall, and in two (2) other conspicuous public places within the
LGU covered by the approved SMVs

‘The DOF and the concerned LGUs hall post the approved SMVs in their official website.

SEC. 15. Setting Assessment Levels and Tax Rates. ~The approved SMV shall be transmitted to
the concerned local chief executive, through the respective provincial, city, and municipal assessor. The
concerned assessor, in coordination with the local treasurer, shall estimate the revenue and tax impact of

the new SMV based on existing assessment levels and tax rates, and recommend amendments thereon

based on three (3) different scenarios. The assessor shall thereafter prepare and submit the revenue and
tax impact report to the local chief executive for consideration.

The local chief executive shall transmit the approved SMV, together with the revenue and tax
impact report, within fifteen (15) days from receipt of the same to the sanggunian for the enactment of
an ordinance setting the appropriate dssessment levels and tax rates. During the sanggunian's
deliberations prior to the enactment of the tax ordinance, it may call upon the assessor to provide
technical assistance and calculate the revenue and tax impact of additional options in order to arrive at a
desired level of revenue and tax burden that the sanggunian will adopt. The concerned sanggunian shall
enact the tax ordinance within sixty (60) days from receipt thereof, upon conduct of public hearings and

proper consultations; otherwise, the exi

ing ordinance on assessment levels and tax rates shall remain
in force and effect.

Upon the enactment by the sanggunian of an ordinance for the assessment levels and tax rates, the
local chief executive shall act within ten (10) days, in the case of cities, including the municipality in the
Metropolitan Manila Area, or within fifteen (15) days, in the case of provinces, to approve the same.
Failure of the concerned local chief executive to act on the ordinance within the prescribed period shall
render the same approved: Provided, however, That this law shall not be construed to abridge the power
of LGUs to lower and adjust assessment levels and tax rates in accordance with the provisions of
Republic Act No. 7160, otherwise known as the “Local Government Code of 1991”, as amended, to

provide with it to residential property owners as deemed necessary.

SEC. 16. Publication of Assessment Levels and Tax Rates. ~The approved ordinance for the
assessment levels and tax rates shall bé published by the concerned LGU in a newspaper of local
circulation once a week for two (2) conse¢utive weeks: Provided, That in provinces and cities, including
the municipality within the Metropolitan Manila Area, where there are no newspapers of local
circulation, the same shall be posted ih the provincial capitol, including all concerned city halls,
municipal halls, and in two (2) other conspicuous public places therein.

SEC. 17. Use of Schedule of Market Values. ~The approved SMV shall be used as bases for the

determination of real property-related taxes of national and local governments, as follows:


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(a) For purposes of real property taxation, the approved SMV shall, in no case, be adopted by the
LGU less than six (6) months prior to the effectivity of the new assessment rates to ensure the proper
cleansing and updating of records, and notification of property owners in the conduct of general revision
of assessment and property classification.

(b) In computing any internal revenue tax, the BIR Commissioner shall use the SMY, or the actual
gross selling price in consideration, as stated in real property transaction documents, whichever is higher.

(c) For other purposes, such as local transfer tax, tax on sand and gravel, community tax, fees and
charges, or as benchmark for real property appraisal of other government agencies, the approved SMV
shall be used upon its effectivity.

Notwithstanding the provision of existing laws to the contrary, the failure to conduct a general

revision of assessment and property classification, and use of the approved SMV shall render an LGU
ineligible for any conditional or performahce-based grant or to contract any form of credit financing.

SEC. 18. Updating of Schedule of Market Values. — All provincial assessors, together with the
municipal assessors and the city assessors, including the lone municipal assessor within the Metropolitan
Manila Area, shall update their respective SMVs within two (2) years from the effectivity of this Act.
Thereafter, they shall update the SMVs and conduct general revision of property assessments and
classifications once every three (3) years from the date of last revision. The BLGF shall prepare the
schedule for the updating of the SMVs in all provinces and cities, including the municipality within the
Metropolitan Manila Area.

In case of any significant change in market value where the property is located after the SMV has
been approved and prior to the next revision, such as in times of calamities, disasters, man-made or
natural and other adverse circumstances, or where corrections of errors and inequalities in the SMV is
deemed necessary, or upon the order of the Secretary of Finance, the provincial and city assessors shall
recommend revisions to the existing SMYs to the BLGF Regional Office, through the BLGF Regional
Director exercising jurisdiction over thé LGU concerned: Provided, That, the city assessors and
municipal assessor within the Metropolitan Manila Area, shall recommend revisions to the existing
SMVs to the BLGF Central Office,

Such revision or revisions shall be subject to review by the concerned BLGF Regional Office and
the BIR Regional Office which shall complete their review and submit their recommendations to the
BLGF Exceutive Director, in accordance with Sections 13 and 14 of this Act,

SEC. 19. Conduct of Capacity Building Interventions, ~The BLGF shall, in coordination with the
Philippine Tax Academy of the DOF, develop and conduct the necessary trainings for all local assessors,
local officials and staff, and other concerned BIR personnel in the preparation of the SMVs in accordance
with internationally accepted valuation standards, concepts, principles and practices, conduct of impact
studies, preparation of compliance reports, and other subject areas.

Chapter 2

Development and Maintenance of
Real Property Market Database

SEC. 20. Development of Real Property Information System. — The BLGF shall develop and

maintain an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer and


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all other real property transactions and declarations in the country and on the cost of construction or

renovation of buildings and other structures, and on the prices of machinery.

For this purpose, the BLGF shall require the mandatory submission of necessary documents from
the concerned officials or employees of national government offices or instrumentalities, LGUs, and the
private sector: Provided, That in the case of government agencies and instrumentalities, the mandatory
submission of documents and informatian shall be subject to the prohibition of disclosure of certain
information under the Data Privacy Act and other existing laws. The updated database shall be made
available to the LGUs, national government agencies and the private sector: Provided, further, That the
Commissioner of Internal Revenue or a uly authorized representative shall be allowed access to the
database without need of prior approval: Provided, finally, That non-submission of the required
documents to the BLGF will subject the concerned official or employee to administrative penalties
pursuant to the provisions of Section 28 af this Act.

To further ensure the efficiency of real property tax administration, all provinces, cities and
municipalities shall automate their operations, adopt tax mapping technology, maintain software-enabled
valuation systems, undertake regular data cleansing, and computerize records management. The National
Government, through the Department of Information and Communications Technology, shall provide
the appropriate equipment and connectivity, information and communications technology platform, and.
the appropriate training and capability building programs to third class up to sixth class municipalities
and provinces to ensure compliance with this section. The BLGF shall establish mechanisms for the
electronic submission of the required documents in accordance with the provisions of Chapter 2, Article
Iof this Act.

SEC. 21. Duty of Register of Deeds to Supply Assessors with Real Property Transactions Data. —
The Register of Deeds shall prepare and submit to the provincial assessors, together with the municipal
assessors, and city assessors, including the lone municipal assessor in the Metropolitan Manila Area, an
abstract of the entire registry every three (3) months and copies of all contracts selling, transferring or
otherwise converting, leasing, or mortgaging real property registered every end of the month. The
abstract shall include brief but sufficient descriptions of the real properties entered therein, their present
owners, and the dates of their most recent transfer or alienation accompanied by copies of corresponding
deeds of sale, donation, or partition, or other forms of alienation.

SEC. 22. Duty of Official Issuing Building Permits or Certificates of Registration of Machinery to

Transmit Copy of Permit to the Assessor. — Any public official or employee who may now or hereafter
be required by law or regulation to issue fo any person a permit for the construction, addition, repair or
renovation of a building, or permanent improvement on land, or a certificate of registration for any
machinery, including machines, mechanigal contrivances and apparatus attached or affixed on land or to
another real property, shall transmit a copy of such permit or certification within thirty (30) days of its
issuance to the assessor of the province, city or municipality where the property is situated.

SEC. 23. Duty of Geodetic Engineets to Furnish Copy of Plans to the Assessor. ~ It shall be the
duty of all geodetic engineers, public or private, to furnish free of charge, the assessor of the province,
city or municipality where the land is located, a copy of the blue or white print of each of all approved

original subdivision plans or maps of surveys, duly signed by a Senior Geodetic Engineer, executed by


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them every end of the month from receipt of such approved plans from the Land Management Bureau
(LMB), the Land Registration Authority (LRA), of the Housing and Land Use Regulatory Board
(HLURB), as the case may be.

SEC. 24, Duty of Registrar of Deeds and Notaries Public 10 Assist the Provincial, City or
Municipal Assessor. — It shall be the duty of the Registrar of Deeds and notaries public to furnish, free
of charge, the provincial, city or municipal assessor with copies of all contracts selling, transferring, or
otherwise conveying, leasing, or mortgaging real property received by, or acknowledged before them
within such periods as the BLGF shall prescribe.

SEC. 25.Transmission of Real Property Transactions Data to the BLGF. ~ Upon
operationalization of the real property transactions database as provided in Section 20 of this Act, it shall
be the duty of the registers of deeds, notaties public, officials issuing building permits, and the geodetic
engineers conducting surveys within a locality to electronically transmit to the concerned BLGF
Regional Office relevant real property transactions data, in accordance with the rules and regulations to
be promulgated by the Secretary of Finance.

| Chapter 3
Appointment and Qualifications of Assessors

SEC. 26. Appointment of Assessors, ~ The local chief executive shall appoint the provincial, city

and municipal assessors and assistant asgessors, as the case may be, in accordance with Civil Service

Law, Real Estate Service Act, rules and regulations and the following guidelines:

ant provinei

(a) In the case of provincial and a assessors and city and assistant city assessors,

the appointee shall be chosen from the fist of at least three (3) ranking eligible candidate within the
region;
(b) In the case of city and assistant city assessors, and the municipal and assistant municipal

ass

sors in the Metropolitan Manila Aréa, the appointee shall be chosen from the list of at least three
(3) ranking eligible candidates within the region; and

(c) In the case of municipal and assistant municipal assessors, the appointee shall be chosen from
the list of at least three (3) ranking eligible candidates within the province.

The assessors shall be under the technical supervision of the BLGF, primarily through a system of
compliance reporting and of capacity building through education and training programs.

SEC. 27. Qualification of Local Government Assessors. — No person shall be appointed assessor

or assistant assessor unless a citizen of the Philippines, a resident of the region for a provincial or city

assessor/assistant assessor, and of the province for a municipal assessor/assistant assessor, a registered

and licensed appraiser, of good moral character, and must not have been convicted of any crime
involving moral turpitude. The appointee 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
provincial or city assessor, and three (3) years in the case of the municipal assessor. 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.


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33
34
35
36

i
ARTICLE IV
PENAL PROVISIONS

SEC. 28. Failure to Comply with the Required Submission of Documents. — Any government
official or employee who fails without justifiable reason to provide or furnish data or information
required pursuant to Sections 20, 21, 22, 23 and 24 of this Act, shall be punished by a fine equivalent to
one (1) month to six (6) months basic salary of the official or employee, or suspension from the service
for a period not exceeding one (1) year, of both, at the discretion of the competent authority.

SEC. 29. Failure to Comply with the Valuation Standards. — An assessor who, for unjustifiable
reasons, fails to comply with the valuation standards developed and adopted pursuant to this Act, or
deliberately conceals any deviation or departure from such standards in the valuation of real property,
shall be punished by a fine equivalent to one (1) month to six (6) months basic salary of the official or
employee, or suspension from the service for a period not exceeding one (1) year, or both, at the
discretion of the competent authority.

SEC. 30. Failure to Prepare Schedule of Market Values. — An assessor who, for unjustifiable
reasons, intentionally or deliberately refuses or fails to prepare the SMVs within the period set forth in
this Act shall be punished by a fine equivalent to one (1) month to six (6) months basic salary of the
official or employee, or suspension from the service for not more than one (1) year, or both, at the
discretion of the competent authority. This shall also be a ground for administrative and criminal liability
in accordance with the provisions of Republic Act No 9646, otherwise known as the “Real Estate Service
Act of the Philippines”

SEC. 31. Government Agents Delaying the Review, Approval and Implementation of the SMV, and
Conduct of General Revisions. — Any government official or employee who delays, without justifiable
cause, the review, approval and implementation of the SMVs, the conduct of general revisions, or causes
the improper use thereof, shall be punished by a fine equivalent to one (1) month to six (6) months basic
salary of the official or employee, or suspénsion from the service for a period not exceeding one (1) year,
or both, at the discretion of the competent authority.

SEC. 32. Violation of Other Provisions. — Any person, whether natural or juridical, who violates
any provision of this Act other than those punishable under Sections 28, 29, and 30 hereof shall, when
warranted, be dealt with under applicable existing laws.

SEC. 33. Taxpayers’ Remedies in Case of Erroneous Assessments of Real Properties. ~ The
provisions of Sections 226 on Local Board of Assessment Appeals and 229 on Action by the Local Board
of Assessment Appeals of Republic Act No. 7160, as amended, shall apply in all cases of appeal as
remedies for the taxpayers in the assessment of their properties.

All concerned local governments shall cause the constitution of a fully functioning Local Board of
Assessment Appeals in their respective jurisdictions, in coordination with the Land Registration

Authority.


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| ARTICLE V
TRANSITORY PROVISIONS

SEC. 34. Transitory Guidelines. — .GUs which are in the process of updating their SMVs shall,
upon the effectivity of this Act, continue with such revisions in accordance with Sections 15, 16, 17, and
18 of this Act: Provided, that proper notification and coordination with the BLGF shall be undertaken.

In case the SMVs are not yet available or updated, the BIR Commissioner shall adopt the existing
SMVs, zonal values or the actual price in consideration as stated in real property transaction documents,
whichever is higher, for purposes of computing any internal revenue tax.

SEC. 35.Saving Clause. — ‘The zbnal values, as determined by the BIR and approved by the
Secretary of Finance for internal revente tax purposes, and the SMVs prepared by the provincial
assessors together with the city assessors, and municipal assessors, including the municipal assessor in
the Metropolitan Manila Area, that have been approved by their respective sanggunians for real property
taxation purposes shall continue to be in force and effect until repealed, superseded, modified, revised,
set aside, or replaced by the values provitled under the updated SMVs as approved in accordance with
Sections 15 of this Act, which shall be within two (2) years upon the effectivity of this Act.

| ARTICLE VI
FUNDING REQUIREMENTS

SEC. 36. Budgetary Requirements for the Updating of Schedule of Market Values. ~ Each local
sanggunian shall appropriate the necessaty funds from locally generated revenues, the internal revenue
allotment or such other sources every fiscal year to constitute the Real Property Tax Administration Fund
(RPTAF), which shall be established anil used for the proper implementation of the updating of the
SMVs and general revision of real property assessments, and the administration of real property taxes in
all LGUs. |

The BLGF shall annually furnish the Department of Budget and Management (DBM) with a list
of LGUs with SMVs that are due for updating. The DBM, in its review of the ensuing year’s budget of
provinces, highly urbanized cities, independent component cities and municipality within the
Metropolitan Manila Area, shall ensurg that sufficient funds are so appropriated for the RPTAF:
Provided, That failure to provide the appropriations required shall render their annual budgets
inoperative.

ARTICLE VII
MISCELLANEOUS PROVISIONS

SEC. 37. Appropriations. — The amount necessary for the implementation of this Act shall be
included in the annual General Appropridtions Act.

SEC. 38. Suppletory Application of Existing Laws. — The provisions of Republic Act No. 7160,
otherwise known as the “Local Government Code of 1991”, as amended, and other laws consistent with
this Act shall have suppletory effect.

SEC. 39. Implementing Rules and Regulations (IRR). ~ Within six (6) months after the effectivity
of this Act, the DOF shall, in consultation with concerned parties, issue the IRR for the effective

implementation of this Act.


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SEC. 40.Separability Clause. — If any section or provision of this Act shall be declared

unconstitutional or invalid, other sections or provisions not affected thereby shall continue to be in full

force and effect.
SEC. 41. Repealing Clause. ~The following provisions are hereby repealed:
(a) Sections 212, 214, and 221 of Republic Act No. 7160, otherwise known as the “Local
Government Code of 1991”, as amended; and

(b) Section 4(h) of Presidential Decree No. 538.

The following provisions are hereby amended accordingly:

(1) Section 33, Chapter IV, Title Il, Book IV, of Executive Order No. 292, otherwise known as the

“Administrative Code of 1987”;
(2) Sections 19, 135(a), 138, 201, 218, 220, 472(a), 472(b)(8), and 473(a) of Republic Act No.
7160; |

(8) Sections 5, 6, and 7 of Republic Act No.10752, otherwise known as “The Right-of-Way Act”;

(4) Section 9 of Presidential Decree No. 921; and

(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, exechitive orders, presidential proclamations, rules and regulations
or parts thereof contrary to or inconsistent with this Act are hereby repealed, superseded or modified
accordingly. |

SEC. 42. Effectivity. —This Act shall take effect fifteen (15) days after its publication in the Official

Gazette or in a newspaper of general circtlation.

Approved,