FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
S.B.NO. 2561 
i 
~ 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
This proposed measure seeks to amend Republic Act No. 7160, with regard to 
Appraisal and Assessment of Real Property. 
It is common knowledge that Real Property Tax is the single major source of 
income of local governments. 
However, there are several reasons why there is an apparent under collection of 
real property taxes: 
a. there is no uniform method of appraising real properties among local 
governments 
b. Revision or updating the schedule of fair market values is so infrequent, thus, 
resulting in a low tax base even as assets in the market continue to appreciate 
c. The approval of the schedule of fair market values is vested on the 
Sanggunian Panlalawigaflanlungsod. Considering the political nature of the 
local Sanggunian, the tendency is to forego revisions in the valuation schedule 
or to keep the property value understated. 
By this proposal, it is suggested for the creation of Technical Valuation 
Committee which is tasked to formulate a uniform method of assessment and appraisal 
with the end view of maximizing the potential tax collection from this source. 
In view of the foregoing, approval of this bill is earnestly urged. - 
REVILLA, JR. 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
AMENDING SECTIONS 212 AND 214 OF REPUBLIC ACT 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and Home of Representatives of the Philippines in Congress 
assLmbled: 
SECTION 1. Section 212 of the Local Government Code of 1991 is hereby 
amended to read as follows: 
SEC. 212. Preparation of Schedule of Fair Market Values. - Before any 
general revision of property assessment is made pursuant to the provisions of this 
Title, [there shall be prepared a schedule of fair market values by the provincial, 
city and the municipal assessors of the municipalities within the Metropolitan 
Manila Area] A SCHEDULE OF FAIR MARKET VALUES SHALL BE 
PREPARED BY A TECHNICAL VALUATION COMMITTEE OF EACH 
PROVINCE, CITY OR MUNICIPALITY for the different classes of real 
property situated in their respective local government units for enactment by 
ordinance of the sanggunian concerned 
THE TECHNICAL VALUATION COMMITTEE SHALL BE 
COMPOSED OF THE PROVINCIAL, CITY OR MUNICIPAL ASSESSOR, 
PROVINCIAL, 
CITY 
OR 
MUNICIPAL 
PLANNING 
AND 
DEVELOPMENT 
OFFICER, 
A 
REPRESENTATIVE FROM 
THE 
BUREAU OF INTERNAL REVENUE (BIR), A REPRESENTATIVE 
FROM THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF), 
AND THE PRIVATE SECTOR THE REPRESENTATIVE FROM THE 
PRIVATE SECTOR MUST BE DIRECTLY INVOLVED IN REAL 
ESTATE APPRAISAL. 
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SECTION 2. Section 214 of the Local Government Code of 1991 is hereby 
amended to read as follows: 
SEC. 214. Amendment of Schedule of Fair Market Values. - The [provincial, city 
or municipal assessor] TECHNICAL VALUATION COMMITTEE may 
recommend to the sanggunian concerned amendments to correct errors in 
valuation of the schedule of fair market values. The sanggunian concerned shall, 
by ordinance act upon the recommendation within ninety (90) days from receipt 
thereof. 
SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days following 
its Publication in two (2) newspapers of general circulation. 
Approved, 
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