FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
S. B. No. 
578 
Introduced by Sen. Jinggoy Ejercito Estrada 
EXPLANATORY NOTE 
This bill seeks to provide that the schedule of fair market values of real property shall be 
prepared by the Local Assessment Council amending for the purpose the Local Government 
Code of 1991. 
At present, the preparation of schedule of fair market values of real property is the sole 
responsibility of the provincial, city or municipal assessor. Since the fair market value is the 
price at which a property may be sold by a seller who is not compelled to sell and bought by a 
buyer who is not compelled to buy, its determination is often subject to question, for the assessor 
sometimes base his preparation on prejudices, depending on his own personal interests. This 
results to unfair assessment of fair market values and is detrimental to both the buyer and the 
seller, whose welfare should always be safeguarded. 
It is therefore suggested that instead of one person performing such function, a collegial 
body must be created and so empowered. This body, the Local Assessment council shall have as 
members the following: the planning and development officer, assessor, a representative from 
the private sector or non-governmental organizations represented in the local development 
council. the function of preparation of the schedule of fair market values of real property is 
thereby removed from the Local Assessor. 
With this, the performance of said task will be based on various perspectives, eliminating 
the possibility of a schedule which favors only certain groups of sectors, or is erroneously done. 
Thus, approval of this bill is earnestly sought 
Senator 


7 
JUI. -2 ?6:,:;, 
FOURTEENTH CONGRESS OF THE REPUBLIC) 
First Regular Session 
OF THE PHILIPPINES 
I 
tt:Lkr IVL-1) IIV : . 
I’ , .’ 
S E N A T E  
S. B. No. 
578 
Introduced by Sen. Jinggoy Ejercito Estrada 
AN ACT 
PROVIDING THAT THE SCHEDULE OF FAIR MARKET VALUES OF 
REAL PROPERTY 
SHALL BE 
PREPARED 
BY 
THE LOCAL 
ASSESSMENT COUNCIL AMENDING FOR THE PURPOSE THE LOCAL 
GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House ofRepresentatives ofthe Philippines in Congress 
assembled: 
SECTION 1. Section 212 of Republic Act Numbered Seventy-one hundred and sixty, 
otherwise known as the Local Government Code of 1991 is hereby amended to read as follows: 
“SEC.212. Preparation of Schedule ofFair Market Values. - Before any 
general revision of property assessment is made pursuant to the provision of this 
Title, there shall be prepared a schedule of fair market values by the [provincial, 
city and the municipal assessors] LOCAL ASSESSMENT COUNCIL OF EACH 
PROVINCE CITY OR MUNICIPALITY 
[the municipalities within the 
Metropolitan Manila Area] for the different classes of real property situated in 
their respective local government units for enactment by ordinance of the 
sanggunian concerned. The schedule of fair market vlaues shall be province, city 
or inunicipality shall and in two other conspicuous public places therein. 
THE LOCAL ASSESSMENT COUNCIL SHALL BE COMPOSED OF 
THE 
PLANNING 
AND 
EVELOPMENT 
OFFICER, 
ASSESSOR, 
A 
REPRESENTATIVE 
FROM 
THE 
SANGGUNIAN 
AND 
A 
REPRESENTATIVE 
FROM 
THE 
PRIVATE 
SECTOR 
OR 
NON- 


GOVERNMENTAL ORGANIZATIONS REPRESENTED IN THE LOCAL 
DEVELOPMENT COUNCIL.” 
SEC. 2. Section 214 of the same Act is also hereby amended to read as follows: 
“SEC. 214. Amendment of Schedule of the Fair Market Values. - The 
[provincial, city or municipal assessor] LOCAL ASSESSMENT COUNCIL, may 
recommend to the sanggunian or concerned amendments or correct errors in 
valuation in the schedule of fair market values. The sanggunian concerned shall, 
by ordinance, act upon the recommendation within ninety (90) days from receipt 
thereof.” 
SEC. 3. 
Repealing Clause. - All laws, presidential decrees, executive orders, 
proclamations, rules and regulations which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SEC. 4. 
Separability Clause. - If, for any reason, any section or provision o€ this 
Act shall be held unconstitutional or invalid, the other section or provision not otherwise affected 
shall remain valid. 
SEC. 5. 
Effectivity Clause. - This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in at ieast two (2) newspapers of general circulation. 
Approved,