1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
EXPLANATORY NOTE 
According to the Department of Finance - Bureau of Local Government Finance 
(BLGF), the existing real property valuation system is caught with problems such as 
overlapping valuations, outdated rates, lack of single oversight agency, and absence 
of a real property electronic database. In fact, only 45% of Local Government Units 
(LGUs) have updated their Schedule of Market Values (SMVs) as of March 2019, 
leaving the rest of 98 cities and 46 provinces with outdated SMVs.  
This bill seeks to improve the real property valuation for the government by adopting 
a market based SMV to be used as basis of local and national real property taxation. It 
shall require the valuation or appraisal of all real property whether taxable or tax-
exempt to be based on prevailing market values in the locality where the property is 
situated in conformity with the valuation standards adopted under this measure.  
Further, it shall reorganize and strengthen the BLGF to provide institutional support 
and accountability to operationalize the reform agenda. Reforming the real property 
valuation system could translate to the generation of more revenues for the LGUs and 
acceleration of the rollout of infrastructure projects. 
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
ERIC G. YAP 
August 23, 2022
12:00 pm
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1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
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 I 
DECLARATION OF POLICY AND OBJECTIVES, AND 
DEFINITION OF TERMS 
SEC. 2. Declaration of Policy and Objectives. - It is the policy of the State to 
promote the development and maintenance of a just, equitable, impartial, and 
nationally consistent real property valuation based on internationally accepted 
valuation standards, concepts, principles, and practices. Towards this end, the State 
shall: 
a. 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;
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d. Separate the function of valuation of real properties from the functions of
tax policy formulation and the administration of the taxes due thereon;
e. Support the development and professionalization of the valuation practice
in the country pursuant to Republic Act No. 9646. otherwise known as the
"Real Estate Service Act of the Philippines";
f.
Provide a comprehensive and up-to-date electronic database of all real
property transactions;
g. Support the development of an information database on valuation through
continuing research and monitoring of new developments in the discipline
to upgrade the country's valuation system and be at par with global
standards; and
h. Ensure transparency in real property transactions to protect public interest,
and develop confidence in the valuation system.
SEC. 3. Definition of Terms. - As used in this Act: 
a. Appraiser also known as valuer, refers to a person who conducts valuation;
specifically, one who possesses the necessary qualifications, license, ability,
and experience to execute or direct the valuation of real property;
b. Assessed Value, also known as 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 or 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
replacement of parts. involving capital expenditures and labor intended to


 
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enhance its value, beauty, or utility, or to adapt it for new or further 
purposes; 
 
h. Land refers to one of the major factors of production which is supplied by 
nature without the aid of man. Land may include not only the earth's 
surface, both land and water, but also anything that is attached to the earth's 
surface including all natural resources in their original state, such as mineral 
deposits, wildlife, and timber; 
 
i. Internationally accepted valuation standards shall refer to generally accepted 
standards for the valuation for all types of assets including real estate plant 
and equipment, intangible assets and businesses which shall include, but 
not limited to. the international valuation standards; 
 
j. International valuation standards shall refer to standards for undertaking 
valuation assessments using generally recognized concepts and principles 
that promote transparency and consistency evaluation practice as 
determined by the International Valuation Standards Council. 
 
k. Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances, or apparatus which may or may not be attached, 
permanently or temporarily, to the real property. It includes the physical 
facilities for production, the installations and appurtenant service facilities, 
those which are mobile, self-powered or self-propelled, and those not 
permanently attached to the real property which are actually, directly, and 
exclusively used to meet the needs of the particular industry, business or 
activity, and which by their very nature and purpose are designed for or 
necessary to its manufacturing, mining, logging, commercial, industrial or 
agricultural purposes; 
 
l. Market Value refers to the estimated amount for which a property shall 
exchange on the date of valuation between a willing buyer and a willing 
seller in an arm's length transaction which is a transaction between 
independent, unrelated parties involving no irregularity, after proper 
marketing, wherein the parties had each acted knowledgeably, prudently, 
and without compulsion; 
 
m. Private appraisal sector refers to licensed nongovernmental real estate service 
practitioners; 
 
n. Real estate refers to the land and all those items which are attached to the 
land. It is the physical tangible entity, together with all the additions or 
improvements on, above, or below the ground; 
 
o. Real property refers to all the rights, interests and benefits related to the 
ownership of real estate. It is a legal concept distinct from real estate, which 
is a physical asset; 
 


 
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p. Schedule of Marker Values, hereinafter referred to as SMV, refers to a table of 
base unit market values for all kinds of real property, except machinery 
within an LGU prepared by assessors pursuant to existing laws, rules and 
regulations; 
 
q. Special purpose property refers to a property that is designed, constructed and 
developed for a specific use or purpose. By its very nature, this type of 
property is rarely offered for sale in the open market except as part of a 
going concern since its special design and function renders conversion to 
other types of development or application not economically feasible; and 
 
r. Valuation, also known as appraisal, refers to the systematic, analytic and 
logical analysis of the recording of property facts, circumstances, 
investments and other relevant data resulting in a supportable estimate or 
professional opinion of the value of the property as of a specific date and 
for a specific purpose. 
 
 
ARTICLE II 
THE BUREAU OF LOCAL GOVERNMENT 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 Bureau 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 purposes; 
 
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; 
 


 
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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; 
 
e. Maintain a roster of licensed local government appraisers and assessors’ 
consultation 
and 
coordination 
with 
the 
Professional 
Regulation 
Commission; 
 
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, and 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 
 
j. 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 internal 
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 adoption 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: 


 
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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 organizations or their duly qualified representatives; 
 
d. 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 
 
e. 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 the 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; 
 


 
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e. Adopt and maintain a comprehensive and up-to-date electronic database of 
all regional real property-related transactions, and have custody of all 
transaction records submitted by local government assessors; and 
 
f. Perform other functions as may be assigned by the BI.GF 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 Committee: Provided, That any report thereof, as a result of the 
forum, shall be submitted to the Central Consultative Committee. 
 
 
ARTICLE III 
VALUATION OF REAL PROPERTIES 
 
CHAPTER 1 
VALUATION STANDARDS AND MARKET VALUES 
 


 
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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 rules and regulations for the 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 shall 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 L.GF to all local assessors to submit their revised SMVs. 
 
Upon its completion, the local assessor 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 other vulnerable sectors, the assessor is mandated to recommend to 


 
9 
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 shall post the approved SM Vs 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 assessment 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 existing ordinance on 
assessment levels and tax rates shall remain in force and effect. 
 
Upon the enactment by the sanggunian of an ordinance for the assessment levels 
and tax rates, the local chief executive shall act within ten (10) days, in the case of 
cities, 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 be published by the concerned 
LGU in a newspaper of local circulation once a week for two (2) consecutive weeks: 
Provided, That in provinces and cities. including the municipality within the 
Metropolitan Manila Area, where there are no newspapers of local circulation, the 


 
10 
same shall be posted in 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: 
 
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 
SMV, 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 performance-
based grant or to contract any form of credit financing. 
 
SEC. 18. Updating the 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 SMVs to the BLGF Regional Office, through the BLGF 
Regional Director exercising jurisdiction over the 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 


 
11 
submit their recommendations to the BLGF Executive 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 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 information 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 duly 
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 of 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 II of 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 


 
12 
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 to any person a permit for the construction, addition, repair or renovation of a 
building, or permanent improvement on land, or a certificate of registration for any 
machinery, including machines, mechanical contrivances and apparatus attached or 
affixed on land or to another real property, 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 Engineers 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 them every 
end of the month from receipt of such approved plans from the Land Management 
Bureau (LMB), the Land Registration Authority (LRA), or the Housing and Land Use 
Regulatory Board (HLURB), as the case may be. 
 
SEC. 24. Duty of Registrar of Deeds and Notaries Public to 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, notaries 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 assessors, as the case may 


 
13 
be, in accordance with Civil Service Law, Real Estate Service Act, rules and regulations 
and the following guidelines: 
 
a. In the case of provincial and assistant provincial assessors and city and 
assistant city assessors, the appointee shall be chosen from the list 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 assessors in the Metropolitan Manila Area, 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. 
 
 
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, or 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 


 
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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 suspension 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. 
 
 
ARTICLE V 
TRANSITORY PROVISIONS 
 
SEC. 34. Transitory Guidelines. - LGUs 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. 


 
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SEC. 35. Saving Clause. - The zonal values, as determined by the BIR and 
approved by the Secretary of Finance for internal revenue 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 provided 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 necessary 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 and 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 ensure 
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 Appropriations 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. 
 
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. 
 


 
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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 II, 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; 
3. 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 
6. National Internal Revenue Code of 1997, as amended. 
 
All laws, presidential decrees, executive orders, presidential proclamations, 
rules and regulations or parts thereof contrary to or inconsistent with this Act are 
hereby repealed, superseded or modified accordingly. 
 
SEC. 42. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,