NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1018
fe'H'i gipiinte
•22 MJG-4 A 9 '■24
RECEIVEOBY.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND 
ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF 
LOCAL GOVERNMENT FINANCE, AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
According to a World Bank report, land assets account for an important share 
of the total wealth in low- and middle-income countries. On average, the percentage 
of land assets among low- and middle-income countries to total national wealth ranges 
from 16 to 45 percent.
As a source of revenue, real property tax (RPT) is the most important for local 
governments. However, the real property valuation system at present has been a 
concern due to the multiple and overlapping property valuations which has 
complicated real property assessment and taxation. In addition, the valuations used 
for governmental purposes are outdated. As of 2018, only 38.8% of LGUs have 
updated Schedule of Market Values (SMVs), with 93 non-compliant cities and 46 
provinces. Within the last five (5) years, only 50.4% of Revenue District Offices (RDOs) 
have updated zonal values, with 65 RDOs still in the process of revising. Moreover, 
there is no single agency tasked to ensure the correct valuation of real property. 
Furthermore, there Is an absence of a comprehensive real property electronic 
database.


The outdated SMVs has resulted in foregone revenues, which in turn, lead to 
unrealized socio-economic benefits. Multiple and overlapping property valuations have 
also resulted in RIght-of-Way acquisition concerns and delays In the construction of 
Infrastructure projects, thereby resulting also in the delays In the creation of jobs and 
inducement of consumption and investment.
This measure will ensure that LGUs' financial self-sufficiency through an 
Increased capacity to generate revenues from real property tax. Outdated property 
values have hindered the growth of tax collections of LGUs, with real property tax 
contributing to an average of 29 percent to LGU revenues.
As such, the real property valuation system stands to benefit from reforms 
Introduced in this measure, such as the establishment of a single valuation system 
and a comprehensive electronic database to support the valuation function, as well as 
the adoption of international standards to rationalize the process. These reforms will 
ensure the efficient real property tax administration of LGUs to arrive at a fair and 
equitable RPT, yield higher Investor confidence and professionalism in real property 
valuation, and reduce government costs borne from conflicting appraisals and project 
delays.
Hence, the immediate passage of this bill is earnestly requested.
INGGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 1018
im ^emtt
of tlic ^i i .rtarp
*22 AUG-4 A 9:24
RECEIVED BY;
Introduced by Senator Jinggoy Ejercito Estrada
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 Representative of the Philippines in Congress 
assembled:
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Section. 1. Short Title. - This Act shall be known as the Rea! Property Valuation and 
Assessment Reform Act'.
ARTICLE I
DECLARATION OF POLICY AND CBJECTIVES,
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 or appraising of real properties from the 
functions of tax policy formulation and administ»'ation 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 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;
(f) Building refers to a man-made structure permanently attached to land for 
residential, commercial, industrial, recreational, or other purposes;
(g) Electronic database refers to an organized collection of data, or Information, that 
is stored In computer-readable form;
(h) 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.


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involving capital expenditures and labor intended to enhance its value, beauty, or 
utility, or tD adapt it for new or further purpose^;
(i) International Valuation Standards (IVS) 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;
(j) Internationally Accepted Valuation Standards refers 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;
(k) Land refers to one of the major factors of production which Is supplied by nature 
without the aia 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;
(l) Machinery refers to machines, equipment, mecnanical 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;
(m) 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;
(n) Private appraisal seaor refers to licensed non-governmental real estate service 
practitioners;
(o) Rea! 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;


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(p) 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;
(q) 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;
(r) 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
(s) 
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 a property as of a specific date and for a specific purpose.
ARTICLE n
STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT OF FINANCE (BLGF)
CHAPTER!
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. It shall have the following 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 (BIR), 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 and 
appraisal of special purpose properties, when requested;


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(d) Provide leadership and policy direction to LGUs on real property valuation and 
appraisal 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 In 
consultation and coordination with the Professional Regulatory Board of Real Estate 
Service (PRBRES) under 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 on 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 reasonable amounts 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 Rea! Property Valuation Service. - To achieve the policy 
and objectives declared in this Act, the Real Property Valuation Service, hereinafter referred 
to as the RPVS, is hereby established within the BLGF with counterpart personnel in the BLGF 
Regional Offices.
Sec. 5. The BLGF Executive Director. - 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 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:
1. Bureau of Internal Revenue (BIR);


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2. Department or Environment and Natural Resources (DENR);
3. Bangko Sentra! 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 PRBRES;
(c) The representatives from the BIR, the 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 specific issues concerning real property valuation.
CHAPTER 2
BLGF REGIONAL OPERATIONS
Sec. 8. Role of the BLGF Regional Offices. - The BLGF Regional Offices, through the 
Regional Director, shall be respor1sible 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;
(e) Adopt and maintain a comprehensive and up-to-date electronic database of all 
regional real property-related transactions, and have custody of ail transaction 
records submitted by local government assessors; and


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(f) Parform 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 each 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 specific 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 real property tax compliance reporting in the region; level of complaints and 
appeals; local government assessors training 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 m
VALUATION AND APPRAISAL OF REAL PROPERTIES
CHAPTER 1
VALUATION STANDARDS AND MARKET VALUES
Sec. il. Development of Valuation Standards. - Notwithstanding the provisions of 
existing laws to the contrary, the BLGF shall develop, adopt, maintain, and implement uniform


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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 and Appraisal of Rea! 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 under this Act. The Secretary of Finance shall promulgate the rules and 
regulations for the valuation and appraisal of real property pursuant to the provisions of this 
Act.
For real properties intended for low-cost or socialized housing, lands included in the 
government's agrarian reform program 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 
Internatlonaliy accepted international valuation standards.
Sec. 13. Preparation of the Schedule of Market Values. - The provincial assessors, 
together with the municipal assessors and city assessors. Including the municipal assessor In 
the Metropolitan Manila Area, shall prepare the SMVs for the different classes of real property 
situated within their respective U-JUs, 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 or one hundred eighty (180) days following the announcement from the 
BLGF to all local assessors to submit their revised SMV.
Upon completion of the proposed SMV, the same shall be submitted by the assessors 
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 the 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


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case of sudden changes In the market values, ,Including but not limited to, ancestral domain,
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public land, agrarian reform beneficiaries, and other vulnerable sectors, the assessor Is
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mandated to recommend to the Sanggunian tax rates and assessment levels that will maintain
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or minimally affect the real property tax due for the property.
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The approved SMVs shall cake effect fifteen (15) days after its publication by the DOF
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in the Official Gazette or in at least two (2) newspapers of general circulation, and posting in
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the respective provincial capitol, city hall and municipal hall, and in two (2) other conspicuous
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public places within the LGU covered by the approved SMVs.
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The DOF and the concerned LGUs shall post the approved SMVs in their official
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website.
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Sec. 15. Setting Assessment Levels and Tax Rates. - The approved SMV shall be
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transmitted to the concerned local chief executive, through the respective provincial, city, and
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municipal assessor. The concerned assessor, in coordination with the local treasurer, shall
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estimate the revenue and tax Impact of the new SMV based on existing assessment levels and
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tax rates, and recommend amendments thereon based on three (3) different scenarios. The
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assessor shall thereafter prepare and submit the revenue and tax impact report to the local
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chief executive for consideration.
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The local chief executive shall transmit the approved SMV, together with the revenue
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and tax impc ct report, within fifteen (15) days from receipt of the same to the Sanggunian
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for the enactment of an ordinance setting the appropriate assessment levels and tax rates.
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During the Sanggunian's deliberations prior to the enactment of the tax ordinance, it may call
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upon the assessor to provide technical assistance and calculate the revenue and tax Impact
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of additional options to arrive at a desired level of revenue and tax burden that the Sanggunian
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will adopt. The concerned Sanggunian shall enact the tax ordinance within sixty (60) days
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from receipt thereof, upon conduct of public hearings and proper consultations; otherwise,
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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 and
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tax rates, the local chief executive shall act within ten (10) days, in the case of cities and the
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municipality in the Metropolitan Manila Area, or within fifteen (15) days, in the case of
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provinces, to approve the same. Failure of the concerned local chief executive to act on the
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ordinance within the prescribed period shall render the same approved: Provided, That this
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law shall not be construed to abridge the power of LGUs to lower and adjust assessment levels
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and tax rates in accordance with the provisions of Republic Act No. 7160, otherwise known as
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the "Local Government Code of 1991", as amended, to provide with it to residential property
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owners as deemed necessary.


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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 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 basis 
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 propeny 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; and
(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 provisions 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 of the Schedule of Market Values. - All provincial assessors, together 
with the municipal assessors and the city assessors, including the 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 a general 
revision of property assessments and classifications once every three (3) years from the date 
of the last revision. The BLGF shall prepare the schedule for the updating of the SMVs in all 
provinces and cities. Including th = municipality within the Metropolitan Manila Area.
In case of any significant change in the market value where the property Is located 
after the SMVs have 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


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correction of errors and inequalities in the SMV is deemed necessary, or upon the directive 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 dh/ 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 the review and submit their 
recommendations to the BLGF Executive Director, in accordance with Sections 13 and 14 
hereof.
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 training for 
all local assessors, local officials and staff, and other concerned BIR personnel on 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 shall subject the concerned official or employee to the administrative 
penalties pursuant to the provisions of Section 28 of this Act.


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To further ensure efficient 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 tne Department of Information and 
Communications Technology, shall provide the appropriate equipment and connectivity, 
information and communications technology platform, training and capability building 
programs to ensure the compliance with this Section. The BLGF shall establish mechanisms 
for the electronic submission of the required documents In accordance with the provisions of 
Article II, Chapter 2 this Act.
Sec. 21. Duty ofRegister 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 municipal assessor in 
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 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 form receipt of such approved 
plans from ti e Land Management Bureau (LMB), the Land Registration Authority' (LRA), or 
the Department of Human Settlements and Urban Development (DHSUD), as the case may 
be.


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Sec. 24. Duty of Registrar of Deeds and Notaries Pubiic to Assist the Provinciai, City,
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or Municipai Assessor. - It shall be the duty of the Registrar of Deeds and notaries public to
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furnish, free of charge, the provincial, city or municipal assessor with copies of all contracts
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selling, trans erring, or otherwise conveying, leasing, or mortgaging real property received by,
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or acknowledged before them within such periods as the BLGF shall prescribe.
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Sec. 25. Transmission of Reai Property Transactions Data to the BLGF. - Upon the
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operationalization of the real property transactions database as provided in Section 20 of this
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Act, it shall be the duty of the registers of deeds, notaries public, officials Issuing building
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permits, and geodetic engineers conducting surveys within a locality to electronically transmit
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to the concerned BLGF Regional Office relevant real property transactions data, in accordance
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with the rules and regulations to be promulgated by the Secretary of Finance.
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CHAPTER 3
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APPOINTI4ENT AND QUALIFICATIONS OF ASSESSORS
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Sec. 26. Appointment of Assessors. - The local chief executive shall appoint the
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provincial, city and municipal assessors and assistant assessors, as the case may be, in
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accordance with Civil Service Law, Real Estate Service Act, rules and regulations, and the
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following guidelines:
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(a) In the case of provincial and assistant provincial assessors and city and assistant
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city assessors, the appointee shall be chosen from the list of at least three (3)
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ranking eligible candidates within the region;
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(b) In the case of city and assistant city assessors, and the municipal and assistant
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municipal assessors in the Metropolitan Manila A: ea, the appointee shall be chosen
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from the list of at least three (3) ranking eligible candidates within the region; and
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(c) In the case of municipal and assistant municipal assessors, the appointee shall be
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chosen from the list of at least three (3) ranking eligible candidates within the
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province.
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The assessors shall be under the technical supervision of the BLGF, primarily through
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a system of compliance reporting and of capacity building programs.
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Sec. 27. Qualification of Local Government Assessors. - No person shall be appointed
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assessor or assistant assessor unless a citizen of the Philippines, a resident of the region for
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a provincial or city assessor/assistant assessor, and of the province for a municipal
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assessor/assistant assessor, a registered and licensed appraiser, of good moral character, and
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must not have been convicted of any crime involving moral turpitude. The appointee must
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have experience in real property valuation or assessment work or in any suitable field, either
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in private or public practice, 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. Once appointed, all 
assessors and local government appraisers must comply with the requirements of the PRBRES 
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 and appraisal 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 goveniment official or employee who 
delays, without justifiable cause, the review, approval and Implementation of the SMV, 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. Violations 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.


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Sec. 33. Taxpayers'Remedies in Case of Erroneous Assessments of Reai Properties. - 
The provisions of Sections 226 on Local Board of Assessment Appeals and 229 on Action by 
the Local Be ard of Assessment Appeals of Republic Act Nc. 7160, as amended, shall apply in 
ail 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.
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 Metropolitan Manila Area, that have been approved by their respective 
Sanggunian 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 Section 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 National Tax Allotment (NTA), or such other sources every fiscal year to constitute the 
Real Property Tax Administration Fund (RPTAF), which shaii 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 whose SMVs that are due for updating. The DBM, in their review of the


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ensuing years 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. Suppietory Application of Existing Laws. - The provisions of Republic Act No. 
7160, otherwise known as the "Local Government Code of 1991", and other laws consistent 
with this Act shall have suppietory effect.
Sec. 39. Implementing Rules and Regulations (IRRy. - 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.
Sec. 41. Repealing Clause. — The following provisions are hereby repealed:
(a) Sections 188, 199(o), 201, 202, 209(a), 212, 214, 219, 220, 472(a) paragraph 1, 
472(b)(8), and 473(a) paragraph 1 and 518 of Republic Act No. 7160, otherwise 
known as the "Local Government Code of 1991";
(b) Section 3(n) of Presidential Decree No. 464 of 1974;
(c) Section 6 of Republic Act No. 10752, otherwise known as the "The RIght-of-Way 
Act";
(d) Section 4(a) and (b) of Republic Act No. 8974; and
(e) Section 9 of Presidential Decree No. 921 on the administration of local financial 
services in Metropolitan Manila and creating Local Treasure and Assessment 
Districts.
The following provisions are hereby amended accordingly:
(a) Sections 19,135(a), 138,198(a), 199(o), 218 and 224(a) of Republic Act No. 7160, 
otherwise known as the "Local Government Code of 1991", are also amended or 
modified accordingly;
(b) Likewise, Sections 6(e), 24(d), 27(d)(5), 88(b) and 102 of Republic Act No. 8424, 
otherwise known as the "Tax Reform Act of 1997"; and


(c) Section 4(h) and Section 9 of Presidential Decree 538 on the power of Philippine 
Veterans Investment Development Corporation Industrial Authority to collect real 
property tax.
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 fifteei i (15) days following Its publication 
In the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,