1
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
EXPLANATORY NOTE 
This proposed measure seeks to improve real property valuation for the 
government by strengthening the Bureau of Local Government Finance (BLGF) 
to provide institutional support for the long-term revenue efforts of the 
government. 
To this end, this bill mandates the BLGF to perform the following tasks, among 
others: 
•
Develop, adopt, and maintain valuation standards consistent with
generally accepted international valuation standards, regulations, and
specifications for real property appraisal for taxation and other purposes;
and
•
Provide technical assistance to government agencies, leadership, and
policy direction to local government units (LGUs) on real property
valuation for taxation, uniform procedure on different transactions in the
assessor's office, and conduct continuing study and research on
valuation.
In strengthening the BLGF, this bill mandates the creation of the Real Property 
Valuation Service within the BLGF and counterpart personnel in BLGF 
Regional Offices. These, among others, are the salient features of this bill. 
Hence, this representation earnestly seeks the passage of this measure.    
RUDYS CAESAR G. FARIÑAS I 
November 21, 2022
3:39 pm
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2
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
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 the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Real Property 
1 
Valuation and Assessment Reform Act".  
2 
ARTICLE I 
3 
DECLARATION OF POLICY AND OBJECTIVES, 
4 
AND DEFINITION OF TERMS 
5 
SEC. 2. Declaration of Policy. – It is the policy of the State to promote the 
6 
development and maintenance of a just, equitable, impartial, and nationally consistent 
7 
real property valuation based on internationally accepted valuation standards, 
8 
concepts, principles, and practices. Towards this end, the State shall: 
9 
(a) Establish and maintain standards to govern the valuation of real property in
10 
the country;
11 
(b) Adopt market value as the single real property valuation base for the
12 
assessment of real property related taxes in the country, and for the
13 
valuation of real property for various transactions by all government
14 
agencies;
15 
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(c) Promote the fiscal autonomy of local government units (LGUs) to provide 
1 
basic services to their constituency by enhancing their capacity to generate 
2 
local revenues from real property; 
3 
(d) Separate the function of valuation of real properties from the functions of 
4 
tax policy formulation and the administration of the taxes due thereon;  
5 
(e) Support the development and professionalization of the valuation practice in 
6 
the country pursuant to Republic Act No. 9646, otherwise known as the 
7 
"Real Estate Service Act of the Philippines";  
8 
(f) Provide a comprehensive and up-to-date electronic database of all real 
9 
property transactions;  
10 
(g) Support the development of an information database on valuation through 
11 
continuing research and monitoring of new developments in the discipline to 
12 
upgrade the country's valuation system and be at par with global standards; 
13 
and  
14 
(h) Ensure transparency in real property transactions to protect public interest, 
15 
and develop confidence in the valuation system. 
16 
SEC. 3. Definition of Terms. –  As used in this Act:  
17 
(a) Appraiser also known as valuer, refers to a person who conducts valuation; 
18 
specifically, one who possesses the necessary qualifications, license, ability, 
19 
and experience to execute or direct the valuation of real property;  
20 
(b) Assessed Value, also known as taxable value, refers to the market value of 
21 
the property multiplied by the corresponding assessment level;  
22 
(c) Assessment refers to the act or process of determining the value of a 
23 
property, or proportion thereof subject to taxation, including the discovery, 
24 
listing, classification, and appraisal of properties;  
25 
(d) Assessment Level refers to the percentage applied to the market value to 
26 
determine the taxable value of the property based on property classifications 
27 
as prescribed in Republic Act No. 7160, otherwise known as the "Local 
28 
Government Code of 1991", as amended;  
29 
(e) Assessor refers to the official or employee in the local government unit (LGU) 
30 
who is a duly licensed appraiser, and performs appraisal and assessment of 
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4
real properties, including plant, machinery, and equipment, for taxation and 
1 
other purposes. This definition also includes assistant assessor;  
2 
(f) Building refers to a man-made structure permanently attached to land for 
3 
residential, commercial, industrial, recreational, or other purposes;  
4 
(g) Improvement refers to a valuable addition made to a property or an 
5 
amelioration in its condition, amounting to more than a mere repair or 
6 
replacement of parts, involving capital expenditures and labor intended to 
7 
enhance its value, beauty, or utility, or to adapt it for new or further 
8 
purposes;  
9 
(h) Land refers to one of the major factors of production which is supplied by 
10 
nature without the aid of man. Land may include not only the earth's 
11 
surface, both land and water, but also anything that is attached to the 
12 
earth's surface including all natural resources in their original state, such 
13 
as mineral deposits, wildlife, and timber;  
14 
(i) Internationally accepted valuation standards shall refer to generally 
15 
accepted standards for the valuation for all types of assets including real 
16 
estate plant and equipment, intangible assets and businesses which shall 
17 
include, but not limited to, the international valuation standards;  
18 
(j) International valuation standards shall refer to standards for undertaking 
19 
valuation assessments using generally recognized concepts and principles 
20 
that promote transparency and consistency evaluation practice as 
21 
determined by the International Valuation Standards Council.  
22 
(k) Machinery refers to machines, equipment, mechanical contrivances, 
23 
instruments, appliances, or apparatus which may or may not be attached, 
24 
permanently or temporarily, to the real property. It includes the physical 
25 
facilities for production, the installations and appurtenant service facilities, 
26 
those which are mobile, self-powered, or self-propelled, and those not 
27 
permanently attached to the real property which are actually, directly, and 
28 
exclusively used to meet the needs of the particular industry, business, or 
29 
activity, and which by their very nature, and purpose are designed for or 
30 
necessary to its manufacturing, mining, logging, commercial, industrial, or 
31 
agricultural purposes;  
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(l) Market Value refers to the estimated amount for which a property shall 
1 
exchange on the date of valuation between a willing buyer and a willing 
2 
seller in an arm's length transaction which is a transaction between - 
3 
independent, unrelated parties involving no irregularity, after proper 
4 
marketing, wherein the parties had each acted knowledgeably, prudently, 
5 
and without compulsion; 
6 
(m)  Private appraisal sector refers to licensed nongovernmental real estate 
7 
service practitioners;  
8 
(n) Real estate refers to the land and all those items which are attached to the 
9 
land. It is the physical tangible entity, together with all the additions or 
10 
improvements on, above, or below the ground;  
11 
(o) Real property refers to all the rights, interests and benefits related to the 
12 
ownership of real estate. It is a legal concept distinct from real estate, which 
13 
is a physical asset;  
14 
(p) Schedule of Market Values, hereinafter referred to as SMV, refers to a table 
15 
of base unit market values for all kinds of real property, except machinery 
16 
within an LGU prepared by assessors pursuant to existing laws, rules, and 
17 
regulations;  
18 
(q) Special purpose property refers to a property that is designed, constructed, 
19 
and developed for a specific use or purpose. By its very nature, this type of 
20 
property is rarely offered for sale in the open market except as part of a 
21 
going concern since its special design and function renders conversion to 
22 
other types of development or application not economically feasible; and  
23 
(r) Valuation, also known as appraisal, refers to the systematic, analytic, and 
24 
logical analysis of the recording of property facts, circumstances, 
25 
investments, and other relevant data resulting in a supportable estimate or 
26 
professional opinion of the value of the property as of a specific date and for 
27 
a specific purpose. 
28 
 
29 
ARTICLE II 
30 
THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF) 
31 
CHAPTER I 
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BLGF Central Operations 
1 
 
2 
      SEC. 4. Powers and Functions of the Bureau of Local Government 
3 
Finance (BLGF). – The BLGF of the Department of Finance (DOF) shall lead and 
4 
manage the implementation of the provisions of this Act. In addition to the powers 
5 
vested upon it by Executive Order No. 292, otherwise known as the "Administrative 
6 
Code of 1987", it shall exercise the following additional powers and functions:  
7 
(a) Develop, 
adopt, 
and 
maintain 
valuation 
standards 
consistent 
with 
8 
internationally accepted valuation standards, regulations, and specifications for 
9 
real property appraisal used for taxation and other purposes, and ensure 
10 
compliance therewith by LGUs and other concerned parties; 
11 
(b) In coordination with the Bureau of Internal Revenue, review, and ensure that 
12 
the Schedule of Market Values (SMVs) as prepared by the provincial assessors 
13 
together with the municipal assessors, and the city assessors, including the 
14 
lone municipal assessor in the Metropolitan Manila Area is compliant with real 
15 
property valuation policies and standards, and recommend its approval to the 
16 
Secretary of Finance for local and national taxation, and for other purposes;  
17 
(c) Provide technical assistance on real property appraisal matters to government 
18 
agencies and instrumentalities, and coordinate or conduct the valuation of 
19 
special purpose property, when requested;  
20 
(d) Provide leadership and policy direction to LGUs on real property valuation for 
21 
taxation and other purposes, including the development and maintenance of 
22 
internationally accepted valuation standards, the regulation of valuation 
23 
activities and other related matters, and the promotion of valuation training 
24 
and seminars;  
25 
(e) Maintain a roster of licensed local government appraisers and assessors in 
26 
consultation and coordination with the Professional Regulation Commission;  
27 
(f) Develop and maintain a comprehensive and up-to-date electronic database of 
28 
real property transactions and prices of materials for buildings, machinery, and 
29 
other structures;  
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(g) Conduct continuing study and research in valuation, and maintain information 
1 
on current global and country trends and developments in real property 
2 
valuation;  
3 
(h) Formulate and provide for uniform procedure on the different transactions in 
4 
the assessor's office, including the transfer, annotation, and issuance of tax 
5 
declarations;  
6 
(i) Determine, fix, and collect a reasonable amount to be charged as 
7 
administration fees, fines, and penalties relative to the implementation of this 
8 
Act; and  
9 
(j) Perform such other functions as are necessary, proper, and incidental to 
10 
implement the provisions of this Act 
11 
SEC. 5. Establishment of the Real Property Valuation Service. – To achieve 
12 
the policies and objectives declared in this Act, the Real Property Valuation Service, 
13 
hereinafter referred to as the RPVS is hereby established within the BLGF and shall 
14 
have counterpart personnel in the BLGF Regional Offices.  
15 
 SEC. 6. Supervisory Role of the BLGF Executive Director over the RPVS. – 
16 
The BLGF Executive Director shall be responsible for the efficient and effective day-to-
17 
day performance of the responsibilities set forth in this Act, and for the overall internal 
18 
management and governance of the RPVS.  
19 
SEC. 7. Creation of a Central Consultative Committee. –  
20 
(a)  A Central Consultative Committee shall be created and shall serve as the 
21 
consultative forum on matters pertaining to the setting and adoption of 
22 
internationally accepted valuation standards and other related concerns on 
23 
real property valuation;  
24 
(b) It shall be chaired by the BLGF Executive Director and shall be composed of 
25 
a representative each from the:  
26 
(1) Bureau of Internal Revenue (BIR);  
27 
(2) Department of Environment and Natural Resources (DENR);  
28 
(3) Bangko Sentral ng Pilipinas (BSP);  
29 
(4) National organization of government assessors;  
30 
(5) National organization of appraisers in national government agencies; and  
31 
(6) Private appraisal sector:  
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Provided, That the representative from the private appraisal sector shall be 
1 
active in the practice of real estate appraisal for at least five (5) years as 
2 
certified by the Professional Regulatory Board of Real Estate Service 
3 
(PRBRES).  
4 
(c) The representatives of the BIR, DENR, and BSP must be performing 
5 
valuation-related functions. The national organization of government 
6 
assessors, and the private appraisal sector shall be represented by their 
7 
respective heads of organizations or their duly qualified representatives;  
8 
(d) The Chairperson and members of the Committee shall not receive additional 
9 
salary for the performance of their functions. Members of the consultative 
10 
committee who are not incumbent government officials or employees shall 
11 
be entitled to honoraria, pursuant to existing laws and regulations; and  
12 
(e) The Committee shall meet at the initiation of the Chairperson at least once 
13 
every semester and shall have as many meetings as the Chairperson may 
14 
deem necessary for the adoption of valuation standards. The Chairperson 
15 
may invite resource persons on issues concerning real property valuation. 
16 
CHAPTER 2 
17 
BLGF Regional Operations 
18 
SEC. 8. Role of the BLGF Regional Offices. –  The BLGF Regional Offices, 
19 
shall, through the Regional Director, be responsible for all matters relating to 
20 
valuation and the supervision of the SMVs in the region. They shall:  
21 
(a) Implement policies, plans, programs, rules, and regulations on real property 
22 
valuation of LGUs in the region;  
23 
(b) Review, in coordination with the BIR, and endorse to the RPVS, the 
24 
proposed SMVs prepared by the assessors of the LGUs in the region; 
25 
(c) Provide for economical, efficient and effective valuation services in the 
26 
region; 
27 
(d) Coordinate and consult with other government departments, bureaus and 
28 
agencies within the region dealing with real property valuation;  
29 
(e) Adopt and maintain a comprehensive and up-to-date electronic database of 
30 
all regional real property-related transactions, and have custody of all 
31 
transaction records submitted by local government assessors; and  
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(f) Perform other functions as may be assigned by the BLGF Executive Director.     
1 
     SEC. 9. The Regional Consultative Committee. –   
2 
(a) There shall be a Regional Consultative Committee that shall be chaired by 
3 
the BLGF Regional Director and shall be composed of a representative from the:  
4 
(1) BIR - Regional Office;  
5 
(2) DENR - Regional Office;  
6 
(3) Head of Regional organization of government assessors or its duly 
7 
authorized representative;  
8 
(4) Head of Regional organization of national government appraisers or its duly 
9 
authorized representative;  
10 
(5) Head of the private appraisal sector within the region or its duly authorized 
11 
representative; and  
12 
(6) Head of the bankers association within the region or its duly authorized 
13 
representative.  
14 
(b) The members of the Regional Consultative Committee must be performing 
15 
valuation-related functions in their respective agencies or sectors; and  
16 
(c) The Committee shall meet at the initiation of the BLGF Regional Director at 
17 
least once every quarter and shall have as many meetings as the BLGF Regional 
18 
Director may deem necessary for the performance of its functions. The BLGF Regional 
19 
Director may invite resource persons on issues concerning real property valuation.  
20 
SEC. 10. Functions of the Regional Consultative Committee. – The Regional 
21 
Consultative Committee shall serve as a consultative forum in the region for 
22 
discussion on developments in the local real property market; concerns of taxpayers, 
23 
civil society, and other stakeholders; outcome of compliance reporting in the region; 
24 
level of complaints and appeals; training of local government assessors in the region; 
25 
appraisal and assessment concerns in general; and other matters as may be 
26 
determined by the Committee: Provided, That any report thereof, as a result of the 
27 
forum, shall be submitted to the Central Consultative Committee 
28 
ARTICLE III 
29 
VALUATION OF REAL PROPERTIES 
30 
CHAPTER 1 
31 
Valuation Standards and Market Values 
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SEC. 11. Development of Valuation Standards. – Notwithstanding the 
1 
provisions of existing laws to the contrary, the BLGF shall develop, adopt, maintain, 
2 
and implement uniform valuation standards which shall be used by all appraisers and 
3 
assessors in the LGUs and other concerned parties in the appraisal or valuation of 
4 
lands, buildings, machinery and other real properties for taxation and other purposes. 
5 
The valuation standards shall conform with internationally accepted valuation 
6 
standards and principles.  
7 
SEC. 12. Valuation of Real Property.  - For valuation purposes, all real 
8 
properties, whether taxable or exempt, shall be valued or appraised based on 
9 
prevailing market values in the locality where the property is situated, in conformity 
10 
with the valuation standards adopted pursuant to this Act. The Secretary of Finance 
11 
shall promulgate the rules and regulations for the valuation of real property pursuant 
12 
to the provisions of this Act. 
13 
For real property intended for low-cost or socialized housing and other 
14 
programs of the government imbued with social policy objectives, the provisions of 
15 
existing pertinent laws shall be applied after the determination of the prevailing 
16 
market value of these properties in accordance with internationally accepted valuation 
17 
standards. 
18 
SEC. 13.  Preparation of Schedule of Market Values.  - The provincial 
19 
assessors, together with the municipal assessors, and the city assessors, including the 
20 
lone municipal assessor in the Metropolitan Manila Area, shall prepare the SMVs for 
21 
the different classes of real property situated within their respective LGUs, pursuant to 
22 
the valuation standards, rules, regulations, and other specifications set by the DOF. 
23 
The preparation of the SMVs shall be completed within six (6) months following the 
24 
notice from the BLGF to all local assessors to submit their revised SMVs. 
25 
Upon its completion, the local assessor shall submit the proposed SMV to the 
26 
BLGF Regional Office. Within seventy-five (75) days from receipt thereof, the BLGF 
27 
Regional Office, in coordination with the BIR Regional Office, shall review and endorse 
28 
the proposed SMV to the  BLGF Executive Director and  the Commissioner of Internal 
29 
Revenue: Provided, That, in the case of cities and municipality within the Metropolitan 
30 
Manila Area, the proposed SMV shall be submitted to, and reviewed by the BLGF 
31 
Central Office, in coordination with the concerned BIR Regional Office: Prouided, 
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further, That the SMV complies with all the requirements set by the Secretary of 
1 
Finance, including the conduct of at least one (1) public consultation on the proposed 
2 
SMVs. 
3 
SEC. 14. Approval of Schedule of Market Values. - 
The 
Secretary 
of 
4 
Finance shall approve the SMV in accordance with internationally accepted valuation 
5 
standards, within thirty (30) days from receipt of the joint endorsement of the BLGF 
6 
Executive Director and the Commissioner of Internal Revenue; otherwise, said 
7 
schedule shall be deemed approved. In case of sudden changes in the market values, 
8 
including but not limited to, ancestral domain, public land, agrarian reform 
9 
beneficiaries, and other vulnerable sectors, the assessor is mandated to recommend to 
10 
the sanggunian tax rates and assessment levels that will maintain or minimally affect 
11 
the real property tax due for the aforementioned property. 
12 
The approved SMVs shall take effect fifteen (15) days after its publication by the 
13 
DOF in the Official Gazette or in at least two (2) newspapers of general circulation, and 
14 
posting in the respective provincial capitol, city hall and municipal hall, and in two (2) 
15 
other conspicuous public places within the LGU covered by the approved SMVs. 
16 
The DOF and the concerned LGUs shall post the approved SMVs in their official 
17 
website. 
18 
SEC. 15.  Setting Assessment Levels and Tax Rates.  - 
The approved SMV 
19 
shall be transmitted to the concerned local chief executive, through the respective 
20 
provincial, city, and municipal assessor. The concerned assessor, in coordination with 
21 
the local treasurer, shall estimate the revenue and tax impact of the new SMV based 
22 
on existing assessment levels and tax rates, and recommend amendments thereon 
23 
based on three (3) different scenarios. The assessor shall thereafter prepare and 
24 
submit the revenue and tax impact report to the local chief executive for consideration. 
25 
The local chief executive shall transmit the approved SMV, together with the 
26 
revenue and tax impact report, within fifteen (15) days from receipt of the same to the 
27 
sanggunian for the enactment of an ordinance setting the appropriate assessment 
28 
levels and tax rates. During the sanggunian's deliberations prior to the enactment of 
29 
the tax ordinance, it may call upon the assessor to provide technical assistance and 
30 
calculate the revenue and tax impact of  additional options in order to arrive at a 
31 
desired level of revenue and tax burden that the sanggunian will adopt. The concerned 
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sanggunian shall enact the tax ordinance within sixty (60) days from receipt thereof, 
1 
upon conduct of public hearings and proper consultations; otherwise, the existing 
2 
ordinance on assessment levels and tax rates shall remain in force and effect. 
3 
Upon the enactment by the sanggunian of an ordinance for the assessment 
4 
levels and tax rates, the local chief executive shall act within ten (10) days, in the case 
5 
of cities, including the municipality in the Metropolitan Manila Area, or within fifteen 
6 
(15) days, in the case of provinces, to appr-0ve the same. Failure of the concerned 
7 
local chief executive to act on the ordinance within the prescribed period shall render 
8 
the same approved: Provided, however, That this law shall not be construed to abridge 
9 
the power of LGUs to lower and adjust assessment levels and tax rates in accordance 
10 
with the provisions of Republic Act No. 7160, otherwise known as the "Local 
11 
Government Code of 1991", as amended, to provide with it to residential property 
12 
owners as deemed necessary. 
13 
SEC. 16. Publication of Assessment Levels and Tax Rates. - The approved 
14 
ordinance for the assessment levels and tax rates shall be published by the concerned 
15 
LGU in a newspaper of local circulation once a week for two (2) consecutive weeks:  
16 
Provided, That in provinces and cities, including the municipality within the 
17 
Metropolitan Manila Area, where there are no newspapers of local circulation, the 
18 
same shall be posted in the provincial capitol, including all concerned city halls, 
19 
municipal halls, and in two (2) other conspicuous public places therein. 
20 
SEC. 17. Use of Schedule of Market Values. -  The approved SMV shall be 
21 
used as bases for the determination of real property-related taxes of national and local 
22 
governments, as follows: 
23 
(a) For purposes of real property taxation, the approved SMV shall, in no case, 
24 
be adopted by the LGU less than six (6) months prior to the effectivity of the new 
25 
assessment rates to ensure the proper cleansing and updating of records, and  
26 
notification of property owners in the conduct of general revision of assessment and 
27 
property classification. 
28 
(b) In  computing  any  internal  revenue  tax,  the 
BIR Commissioner shall 
29 
use the SMV or the actual gross selling price in consideration, as stated in real 
30 
property transaction documents, whichever is higher. 
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(c) For other purposes, such as local transfer tax, tax on sand and gravel, 
1 
community tax, fees and charges, or as benchmark for real property appraisal of other 
2 
government agencies, the approved SMV shall be used upon its effectivity. 
3 
Notwithstanding the provision of existing laws to the contrary, the failure to conduct a 
4 
general revision of assessment and property classification, and use of the approved 
5 
SMV shall render an LGU ineligible for any conditional or performance-based grant or 
6 
to contract any form of credit financing. 
7 
SEC. 18. Updating of Schedule of Market Values. - All provincial assessors, 
8 
together with the municipal assessors and the city assessors, including the lone 
9 
municipal assessor within the Metropolitan Manila Area, shall update their respective 
10 
SMVs within two (2) years from the effectivity of this Act. Thereafter, they shall update 
11 
the SMVs and conduct general revision of property assessments and classifications 
12 
once every three (3) years from the date of last revision. The BLGF shall prepare the 
13 
schedule for the updating of the SMVs in all provinces and cities, including the 
14 
municipality within the Metropolitan Manila Area. 
15 
In case of any significant change in market value where the property is located 
16 
after the SMV has been approved and prior to the next  revision, such  as  in  times of 
17 
calamities,  disasters, man-made or natural and other adverse circumstances, or 
18 
where corrections of errors and inequalities in the SMV is deemed necessary, or upon 
19 
the order of the Secretary of Finance, the provincial and city assessors shall 
20 
recommend revisions to the existing SMVs to the BLGF Regional Office, through the 
21 
BLGF Regional Director exercising jurisdiction over the LGU concerned; Provided, 
22 
That, the city assessors and municipal assessor within the Metropolitan  Manila  Area, 
23 
shall  recommend  revisions  to the existing SMVs to the BLGF Central Office. 
24 
Such revision or revisions shall be subject to review by the concerned BLGF 
25 
Regional Office and the BIR Regional Office which shall complete their review and 
26 
submit their recommendations to the BLGF Executive Director, in accordance with 
27 
Sections 13 and 14 of this Act. 
28 
SEC. 19. Conduct of Capacity Building Interventions. -  The BLGF shall, in 
29 
coordination with the Philippine Tax Academy of the DOF, develop and conduct the 
30 
necessary trainings for all local assessors, local officials and staff, and other concerned 
31 
BIR personnel in the preparation of the SMVs in accordance with internationally 
32 


 
 
 
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accepted valuation standards, concepts, principles and practices, conduct of impact 
1 
studies, preparation of compliance reports, and other subject areas. 
2 
Chapter 2 
3 
Development and Maintenance of Real Property Market Database 
4 
SEC. 20. Development of Real Property Information System. The BLGF 
5 
shall develop and maintain an up-to-date electronic database of the sale, exchange, 
6 
lease, mortgage, donation, transfer and all other real property transactions and 
7 
declarations in the country and on the cost of construction or renovation of buildings 
8 
and other structures, and on the prices of machinery. 
9 
For this purpose, the BLGF shall require the mandatory submission of 
10 
necessary documents from the concerned officials or employees of national 
11 
government offices or instrumentalities, LGUs, and the private sector: Provided, That 
12 
in the case of government agencies 
and 
instrumentalities, the 
mandatory 
13 
submission of documents and information shall be subject to the prohibition of 
14 
disclosure of certain information under the Data Privacy Act and other existing laws. 
15 
The updated database shall be made available to the LGUs, national government 
16 
agencies and the private sector: Provided, further, That the Commissioner of Internal 
17 
Revenue or a duly authorized representative shall be allowed access to the database 
18 
without need of prior approval: Provided, finally, That non-submission of the required 
19 
documents to the BLGF will subject the concerned official or employee to 
20 
administrative penalties pursuant to the provisions of Section 28 of this Act. 
21 
To further ensure the efficiency of real property tax administration, all 
22 
provinces, cities, and municipalities shall automate their operations, adopt tax 
23 
mapping technology, maintain software-enabled valuation systems, 
undertake 
24 
regular data cleansing, and computerize records management. The National 
25 
Government, through 
the 
Department of 
Information and 
26 
Communications Technology, 
shall provide 
the 
appropriate 
equipment 
27 
and connectivity, information and communications technology platform, and the 
28 
appropriate training and capability-building programs to third class up to sixth class 
29 
municipalities and provinces to ensure compliance with this section. The BLGF shall 
30 
establish mechanisms for the electronic submission of the required documents in 
31 
accordance with the provisions of Chapter 2, Article II of this Act. 
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SEC. 21.  Duty of Register of Deeds to Supply Assessors with Real Property 
1 
Transactions Data. - The Register of Deeds shall prepare and submit to the provincial 
2 
assessors, together with the municipal assessors, and city assessors, including the 
3 
lone municipal assessor in the Metropolitan Manila Area, an abstract of the entire 
4 
registry every three (3) months and copies of all contracts selling, transferring or 
5 
otherwise converting, leasing, or mortgaging real property registered every end of the 
6 
month. The abstract shall include brief but sufficient descriptions of the real 
7 
properties entered therein, their present owners, and the dates of their most recent 
8 
transfer or alienation accompanied by copies of corresponding deeds of sale, donation, 
9 
or partition, or other forms of alienation. 
10 
SEC. 22. Duty of Official Issuing Building Permits or Certificates of 
11 
Registration of Machinery to Transmit Copy of Permit to the Assessor. - Any 
12 
public official or employee who may now or hereafter be required by law or regulation 
13 
to issue to any person a permit for the construction, addition, repair, or renovation of 
14 
a building, or permanent improvement on land, or a certificate of registration for any 
15 
machinery, including machines, mechanical contrivances and apparatus attached or 
16 
affixed on land or to another real property, shall transmit a copy of such permit or 
17 
certification within thirty (30) days of its issuance to the assessor of the province, city 
18 
or municipality where the property is situated. 
19 
SEC. 23. Duty of Geodetic Engineers to Furnish Copy of Plans to the 
20 
Assessor. - It shall be the duty of all geodetic engineers, public or private, to furnish 
21 
free of charge, the assessor of the province, city, or municipality where the land is 
22 
located, a copy of the blue or white print of each of all approved original subdivision 
23 
plans or maps of surveys, duly signed by a Senior Geodetic Engineer, executed by 
24 
them every end of the month from receipt of such approved plans from the Land 
25 
Management Bureau (LMB), the Land Registration Authority (LRA), or the Housing and 
26 
Land Use Regulatory Board (HLURB), as the case may be. 
27 
SEC. 24. Duty of Registrar of Deeds and Notaries Public to Assist the 
28 
Provincial, City, or Municipal Assessor. -  It shall be the duty of the Registrar of 
29 
Deeds and notaries to furnish free of charge, the provincial, city, or municipal assessor 
30 
with copies of all contracts selling, transferring, or otherwise conveying, leasing, or 
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16
mortgaging real property received by, or acknowledged before them within such 
1 
periods as the BLGF shall prescribe. 
2 
SEC. 25. Transmission of Real Property Transactions Data to the BLGF.  -
3 
 Upon operationalization of the 
real property transactions database as provided in 
4 
Section 20 of this Act, it shall be the duty of the registers of deeds, notaries public, 
5 
officials issuing building permits, and the geodetic engineers conducting surveys 
6 
within a locality to electronically transmit to the concerned BLGF Regional Office 
7 
relevant real property transactions data, in accordance with the rules and regulations 
8 
to be promulgated by the Secretary of Finance. 
9 
Chapter 3 
10 
Appointment and Qualifications of Assessors 
11 
SEC. 26. Appointment of Assessors.  - The local chief executive shall appoint 
12 
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 
14 
and the following guidelines: 
15 
(a) In the case of provincial and assistant provincial assessors and city and 
16 
assistant city assessors, the appointee shall be chosen from the list of at least three (3) 
17 
ranking eligible candidate within the region; 
18 
(b) In the case of city and assistant city assessors, and the municipal and 
19 
assistant municipal assessors in the Metropolitan Manila Area, the appointee shall be 
20 
chosen from the list of at least three (3) ranking eligible candidates within the region; 
21 
and 
22 
(c) In the case of municipal and assistant municipal assessors, the appointee 
23 
shall be chosen from the list of at least three (3) ranking eligible candidates within the 
24 
province. 
25 
The assessors shall be under the technical supervision of the BLGF, primarily 
26 
through a system of compliance reporting and of capacity building through education 
27 
and training programs. 
28 
SEC. 27. Qualification of Local Government Assessors. – No person shall be 
29 
appointed assessor or assistant assessor unless a citizen of the Philippines, a resident 
30 
of the region for a provincial, city, or assistant assessor, and of the province for a 
31 
municipal or assistant assessor, a registered and licensed appraiser, of good moral 
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17
character, and must not have been convicted of any crime involving moral turpitude.  
1 
The appointee must have experience in real property valuation or assessment work in 
2 
any suitable field, either in private or public practice, for at least five (5) years in the 
3 
case of the provincial or city assessor, and three (3) years in the case of the municipal 
4 
assessor. Once appointed, all assessors and local government appraisers must comply 
5 
with the requirements of the Professional Regulatory Board of Real Estate Service for 
6 
the regular updating of their licenses. 
7 
SEC. 28 Additional Persons Qualified to be Applicants for the Real Estate 
8 
Appraiser Examination. – In addition to those qualified to be applicants for the real 
9 
estate appraiser examinations under Sec. 14 of Republic Act No. 9646 or the “Real 
10 
Estate Service Act of the Philippines," a holder of a Post-Graduate Diploma in land 
11 
valuation or its equivalent from schools, colleges, or universities duly recognized and 
12 
accredited by the Commission on Higher Education (CHED) may also take the real 
13 
estate appraiser licensure examinations: Provided, That applicants also possess the 
14 
qualifications under Sec. 14(a) and Sec. 14(c) of the said law. 
15 
ARTICLE IV 
16 
PENAL PROVISIONS 
17 
SEC. 29. Failure to Comply with the Required Submission of Documents. -  
18 
Any government official or employee who fails without justifiable reason to provide or 
19 
furnish data or information required pursuant to Sections 20, 21, 22, 23, and 24 of 
20 
this Act, shall be punished by a fine equivalent to one (1) month to six (6) months 
21 
basic salary of the official or employee, or suspension from the service for a period not 
22 
exceeding one (1) year, or both, at the discretion of the competent authority. 
23 
SEC. 30. Failure to Comply with the Valuation Standards. - An assessor 
24 
who, for unjustifiable reasons, fails to comply with the valuation standards developed 
25 
and adopted pursuant to this Act, or deliberately conceals any deviation or departure 
26 
from such standards in the valuation of real property, shall be punished by a fine 
27 
equivalent to one (1) month to six (6) months basic salary of the official or employee, or 
28 
suspension from the service for a period not exceeding one (1) year, or both, at the 
29 
discretion of the competent authority. 
30 
SEC. 31. Failure to Prepare Schedule of Market Values. - An assessor who, 
31 
for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the 
32 


 
 
 
18
SMVs within the period set forth in this Act shall be punished by a fine equivalent to 
1 
one (1) month to six (6) months basic salary of the official or employee, or suspension 
2 
from the service for not more than one (1) year, or both, at the discretion of the 
3 
competent authority.  This shall also be a ground for administrative and criminal 
4 
liability in accordance with the provisions of Republic Act No 9646, otherwise known 
5 
as the "Real Estate Service Act of the Philippines.” 
6 
SEC. 32. Government Agents Delaying the Review, Approval, and 
7 
Implementation of the SMV, and Conduct of General Revisions. -  Any government 
8 
official or employee who delays, without justifiable cause, the review, approval, and 
9 
implementation of the SMVs, the conduct of general revisions, or causes the improper 
10 
use thereof, shall be punished by a fine equivalent to one (1) month to six (6) months 
11 
basic salary of the official or employee, or suspension from the service for a period not 
12 
exceeding one (1) year, or both, at the discretion of the competent authority. 
13 
SEC. 33. Violation of Other Provisions. - Any person, whether natural or 
14 
juridical, who violates any provision of this Act other than those punishable under 
15 
Sections 23, 29, and 30 hereof shall, when warranted, be dealt with under applicable 
16 
existing laws. 
17 
SEC. 34. Taxpayers' Remedies in Case of Erroneous Assessments of Real 
18 
Properties. - The provisions of Sections 226 on Local Board of Assessment Appeals 
19 
and 229 on Action by the Local Board of Assessment Appeals of Republic Act No. 
20 
7160, as amended, shall apply in all cases of appeal as remedies for the taxpayers in 
21 
the assessment of their properties. All concerned local governments shall cause the 
22 
constitution of a fully functioning Local Board of Assessment Appeals in their 
23 
respective jurisdictions, in coordination with the Land Registration Authority. 
24 
ARTICLE V 
25 
TRANSITORY PROVISIONS 
26 
SEC. 35. Transitory Guidelines. - LGUs which are in the process of updating 
27 
their SMVs shall, upon the effectivity of this Act, continue with such revisions in 
28 
accordance with Sections 15, 16, 17, and 18 of this Act: Provided, That proper 
29 
notification and coordination with the BLGF shall be undertaken. In case the SMVs 
30 
are not yet available or updated, the BIR Commissioner shall adopt the existing SMVs, 
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19
zonal values or the actual price in consideration as stated in real property transaction 
1 
documents, whichever is higher, for purposes of computing any internal revenue tax. 
2 
SEC. 36. Saving Clause. - The zonal values, as determined by the BIR and 
3 
approved by the Secretary of Finance for internal revenue tax purposes, and the SMVs 
4 
prepared by the provincial assessors together with the city assessors, and municipal 
5 
assessors, including the municipal assessor in the Metropolitan Manila Area, that 
6 
have been approved by their respective sanggunians for real property taxation 
7 
purposes shall continue to be in force and effect until repealed, superseded, modified, 
8 
revised, set aside, or replaced by the values provided under the updated SMVs as 
9 
approved in accordance with Sections 15 of this Act, which shall be within two (2) 
10 
years upon the effectivity of this Act. 
11 
ARTICLE VI 
12 
FUNDING REQUIREMENTS 
13 
SEC. 37. Budgetary Requirements for the Updating of Schedule of Market 
14 
Values. - Each local sanggunian shall appropriate the necessary funds from locally 
15 
generated revenues, the internal revenue allotment or such other sources every fiscal 
16 
year to constitute the Real Property Tax Administration Fund (RPTAF), which shall be 
17 
established and used for the proper implementation of the updating of the SMVs and 
18 
general revision of real property assessments, and the administration of real property 
19 
taxes in all LGUs. 
20 
The BLGF shall annually furnish the Department of Budget and Management 
21 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in its review 
22 
of the ensuing year's budget of provinces, highly urbanized cities, independent 
23 
component cities and municipality within the Metropolitan Manila Area, shall ensure 
24 
that sufficient funds are so appropriated for the RPTAF: Provided, That failure to 
25 
provide the appropriations required shall render their annual budgets inoperative. 
26 
ARTICLE VII 
27 
MISCELLANEOUS PROVISIONS 
28 
SEC. 38. Appropriations. – The amount necessary for the implementation of 
29 
this Act shall be included in the annual General Appropriations Act. 
30 


 
 
 
20
SEC. 39. Suppletory Application of Existing Laws. – The provisions of 
1 
Republic Act No. 7160, otherwise known as the "Local Government Code of 1991", as 
2 
amended, and other laws consistent with this Act shall have suppletory effect.   
3 
SEC. 40. Implementing Rules and Regulations (IRR). – 23 
Within six (6) 
4 
months after the effectivity of this Act, the DOF shall, in consultation with concerned 
5 
parties, issue the IRR for the effective implementation of this Act. 
6 
 SEC. 41. Separability Clause. –  If any provision, section, or part of this Act 
7 
shall be declared unconstitutional or invalid, such judgment shall not affect, 
8 
invalidate, or impair other provisions, sections, or parts hereof.  
9 
SEC. 42. Repealing Clause. – The following provisions are hereby repealed: 
10 
(a) Sections 212, 214, and 221 of Republic Act No. 7160, otherwise known as 
11 
the "Local Government Code of 1991", as amended; and 
12 
(b) Section 4(h) of Presidential Decree No. 538.  
13 
The following provisions are hereby amended accordingly: 
14 
(1) Section 33, Chapter IV, Title II, Book IV, of Executive Order No. 292, 
15 
otherwise known as the "Administrative Code of 1987"; 
16 
(2) Sections 19, 135(a), 138, 201, 218, 220, 472(a), 472(b)(8), and 473(a) 
17 
of Republic Act No. 7160; 
18 
(3) Sections 5, 6, and 7 of Republic Act No.10752, otherwise known as 
19 
"The Right-of-Way Act"; 
20 
(4) Section 9 of Presidential Decree No. 921; 
21 
(5) Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, otherwise 
22 
known as the National Internal Revenue Code of 1997, as amended; and 
23 
(6) Section 14 of Republic Act No. 9646, otherwise known as the “Real 
24 
Estate Service Act of the Philippines.” 
25 
All laws, presidential decrees, executive orders, presidential proclamations, 
26 
rules and regulations or parts thereof contrary to or inconsistent with this Act are 
27 
hereby repealed, superseded or modified accordingly. 
28 
SEC. 43. Effectivity. – This Act shall take effect fifteen (15) days after its 
29 
publication in the Official Gazette or in a newspaper of general circulation. 
30 
 
31 
Approved, 
32