·' 
•• 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SB NO. 415 
.Srrmtl' 
(fifl;r trf t~{!.itf'~J'~h1r:~ 
"13 
JUL -3 P6 :33 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
EXPLANATORY NOTE 
Land governance, in the context of rapid development and urbanization, 
requires a land administration and management (LAM) system thdt is efficient. 
effective and equitable. Within this system operates the real property valuation 
sector, which is an integral component of LAM and a major contributor to a 
country's socio-economic development. 
For so long, the country's real property sector has operated within an 
ineffective, inequitable, and inefficient valuation system. The problem is 
aggravated by the lack of national valuation standards that harmonize the 
valuations in the government and the private sector. With 23 national 
government agencies and almost 1,300 local government units (LGUs), along 
with private appraisers performing valuation using different methods and 
standards, the sector has been riddled with inconsistent real property values-
where one property has conflicting values. Such condition has crippled the 
Government. both at the local and the national levels. to fully tap the potential 
of the land sector, and resulted to foregone revenues from national and local 
real property-related taxes. The 
resulting 
condition 
is 
unrealized fiscal 
sustainability. 
In the LGUs, the problems are more dramatic as the technical process of 
real property valuation is easily comingled with property taxation, which is a 
political exercise of elective LGU officials; thus, compromising the capacity of 
LGUs to generate revenues from real property from which they could sufficiently 
fund public goods and services for their constituencies. Considered as the main 
source of locally sourced revenue, the outdated Schedule of Market Values 
(SMVs), averaging from 10 to 12 years old, greatly narrowed the LGUs' real 
property tax base while increasing inequity in real property taxation. With the 
approval of SMVs assigned to the local councils, valuation, as a technical 
function, is often influenced by highly politicized decisions-far from the 
democratic tenet of the greater good. Since most of LGU values' no longer 
reflect the true conditions of the local property market. the country',s valuation 
system has acted as a disincentive for private investors to take a more vibrant 
role in economic development. In the same vein, many government-led 
projects and investments have been delayed due to just compensation issues 
and lengthy court litigations. 


., 
As the Government pursues reforms in the LAM sector, this bill proposes to 
institutionalize valuation reforms starting from the LGUs by adopting a market-
based SMV that is governed by uniform valuation standards based on 
international best practices, methods, and techniques. The existing expertise of 
LGU assessors, who are now subject to the professionalization and regulation 
requirements of Republic Act No. 9646 or the Real Estate Service Act of 2009, will 
be the critical players of the reform process. In turn, SMVs shall be the basis of 
local and national real property taxation, and as benchmark for other purposes 
by other government agencies and instrumentalities. A national real property 
transactions database shall also be established to increase transparency and 
build public trust in the valuation sector. 
Furthermore, the bill proposes to strengthen and reorganize the Bureau of 
Local Government Finance (BLGF), under the Department of Finance, to 
assume institutional responsibility for the proposed reforms. The BLGF, through the 
creation of the Real Property Valuation Service (RPVS), is envisioned to conduct 
review of the SMVs and recommend for approval of the Secretary of Finance-
thereby, separating the technical function of valuation from the political 
function of taxation. Thus, political backlash are minimized, and local officials 
are insulated from public pressures in the revision of SMVs. 
In the end, this bill seeks to create a sustainable government platform for 
the institutionalization of valuation reforms in the country, and achieve a more 
rational LAM sector that will allow the Government to fully tap the potential of 
real property both at the national and local levels. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
FERDINA D R. kARCOS, JR. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.NO. 415 
.~!'mtb 
($t'fln' llf HlP ';?~'"f,tTl!br-¥ 
'13 
JUL -3 P6 :33 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
AN ACT INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND ASSESSMENT IN 
THE PHILIPPINES, REORGANIZING THE BUREAU OF LOCAL GOVERNMENT FINANCE, 
AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "THE REAL PROPERTY 
VALUATION AND ASSESSMENT REFORM ACT OF 2013." 
ARTICLE I 
DECLARATION OF POLICY AND OBJECTIVES, 
AND DEFINITION OF TERMS 
SECTION 2. Declaration of Po/icy 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 valudtion based on 
internationally accepted valuation standards, concepts, principles, and 
practices. Towards this end, the State shall: 
(a) Promote the fiscal autonomy of local governments to provide basic 
I 
services to their constituency by enhancing their capacity to generate 
local revenues from real property; 
(b) Establish and maintain valuation standards to govern the valuation of 
real property in the country; 
(c) Adopt market value as the single real property valuation base for the 
assessment of real property related taxes in the country, and for 
valuing or appraising real property for various transactions by all 
government agencies; 
(d) Separate the function of valuing or appraising of real properties from 
the functions of tax policy and administering the taxes due thereon; 
(e) Support 
the 
development 
and 
professionalization 
of 
the 
valuation/appraisal practice in the country pursuant to Republic Act 
No. 9646; 


'" 
(f) Provide a comprehensive and up-to-date electronic database of all 
real property transactions; 
(g) Support the development of a "body of knowledge" on valuation by 
continuing research and monitoring of new developments in the 
valuation discipline, for upgrading the country's valuation and keeping 
it abreast with global developments; and 
(h) Ensure transparency in real property transactions to protect the public 
and develop confidence in the work of appraisers and assessors, 
SECTION 3. Definition of Terms. - As used in this Act, the following terms 
mean: 
(a) Appraiser refers to a person who conducts valuation/appraisal; 
specifically, one who possesses the necessary qualifications, license, 
ability, and experience to execute or direct the valuation/appraisal of 
real property; also known as valuer, 
(b) Assessor refers to an official in the local government unit, who is a 
licensed 9Ppraiser, who performs appraisal and assessment of real 
properties, including plant, machinery and equipment, essentially for 
taxation and other purposes, This definition also includes assistant 
assessors. 
(c) Building refers to a man-made structure permanently attached to land 
for residential, commercial, industrial, recreational or other purposes, 
(d) Improvements refer to a valuable addition made to a property or an 
amelioration in its condition, amounting to more than a mere repair or 
replacement of parts involving capital expenditures and labor, which is 
intended to enhance its value, beauty or utility or to adapt it for new or 
further purposes, 
(e) Land refers to one of the major factors of production consisting 
sometimes of a material economic good, which is supplied by nature 
without the aid of man, Land may include not only the earth surface, 
both land and water, but also anything that is attached to the earth's 
surface, Thus, all natural resources in their original state, such as mineral 
deposits, wildlife, timber, and fish, are land within the technical 
meaning of the term; so also are sources of energy, outside of man 
himself, such as water, coal deposits, and the natural fertility of the soil. 
(f) Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances or apparatus which may or may not be 
attached, permanently or temporarily, to the real property. It includes 
the physical facilities for production, the installations and appurtenant 
service facilities, those which are mobile, self-powered or self-propelled 
and those not permanently attached to the real property which are 
actually, directly and exclusively used to meet the needs of the 
particular industry, business or activity and which by their very nature 
and purpose are designed for, or necessary to its manufacturing, 
mining, logging, commercial, industrial or agricultural purposes, 


(g) Market Value refers to the estimated amount for which a property 
should exchange on the date of valuation between a willing buyer 
and a willing seller in an arm's length transaction (a transaction 
between independent, unrelated parties involving no irregularity) after 
proper marketing wherein the parties had each acted knowledgeably, 
prudently, and without compulsion. 
(h) Private appraisal sector refers to licensed non-governmental real 
estate service practitioners who have been active in the practice of 
real estate appraisal for the last five (5) years. 
(i) Real Estate refers to the land and all those items which are attached to 
the land. It is the physical. tangible entity, together with all the 
additions or improvements on, above or below the ground. 
(j) Real Property refers to all the rights, interests, and benefits related to 
the ownership of real estate, plant. machinery, and equipment. 
(k) Schedule of Market Values, hereinafter referred to as SMV, refers to a 
table of market values of real properties within a local government unit 
prepared by assessors pursuant to existing laws, rules and regulations. 
(I) Special Purpose Property refers to a property which 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. Because of the special design and 
function, conversion of special purpose properties to other types of 
development or application is generally not economically feasible. 
(m) 
Valuation/ Appraisal 
refers 
to 
the 
systematic 
and 
analytic 
determination and recording of property facts, circumstances, 
investments, and investigation of other relevant data resulting in a 
supportable estimate and opinion of value or a professional conclusion 
based upon supporting data, logical analysis and judgment as of a 
specific date and for a specific purpose. 
ARTICLE II 
STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT FINANCE 
Chapter 1 
BLGF Central Operations 
SECTION 4. Role of the Bureau of Local Government Finance. - The Bureau 
of Local Government Finance, through the Real Property Valuation Service 
(RPVS) as hereinafter established, shall lead and manage the implementation of 
the provisions of this Act. The BLGF shall have the following powers and 
functions: 
(a) Develop, adopt, and maintain valuation standards consistent with 
generally 
accepted 
valuation 
standards, 
regUlations 
and 
specifications for real property appraisal used for tax and other 
purposes, and ensure compliance therewith by local government units 
and other concerned parties; 


(b) Review for compliance with the real property valuation policies and 
standards, and recommend for approval of the Secretary of Finance 
the Schedule of Market Values (SMVs) as prepared by the provincial 
assessors together with municipal assessors, and city assessors, 
including the municipal assessor in Metro Manila, for tax, both local 
and national, and for other purposes; 
(c) Provide technical assistance on real property appraisal matters to 
government agencies and instrumentalities, and coordinate or 
conduct the valuation/appraisal of special purpose properties, when 
requested; 
(d) Provide leadership and policy directions to local government units on 
real property valuation/appraisal for taxation and other purposes, 
including the development and maintenance of valuation',standards, 
the regulation of valuation/appraisal activities and other related 
matters, and the promotion of valuation/appraisal training and 
seminars; 
(e) Maintain a roster of licensed local government appraisers and 
assessors; 
(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 an 
information based on current global and country trends and 
developments in real property valuation/appraisal; 
(h) Determine, fix, and collect reasonable amounts to be charged as 
administration fees, fines, and penalties relative to the implementation 
of this Act; and 
(i) Perform such other functions as are necessary, proper, and incidental 
to implement the provisions of this Act. 
SECTION 5. Establishment of the Real Property Valuation Service. -
To 
achieve the policy and objectives declared in this Act, there shall be 
established the Real Property Valuation Service, hereinafter referred to as the 
RPVS, within the Bureau of Local Government Finance. 
The RPVS shall be headed by a Director who is a Filipino citizen, of good 
moral character, a licensed appraiser, and with at least ten (10) years 
experience in valuation/appraisal or assessment of real properties. The RPVS 
Director shall be appointed by the President, upon the recommendation of the 
Secretary of Finance, and shall have a salary grade equivalent to a Director II. 
SECTION 6. Responsibilities of the BLGF Executive Director. - The BLGF 
Executive Director shall be responsible for the efficient and effective 
performance of the responsibilities set forth in this Act and for the overall internal 
management and governance of the RPVS. For this purpose, the BLGF Executive 
Director shall: 
(a) Develop and implement policies, plans, programs, and operating 
standards for the attainment of the objectives of this Act; 


(b) Provide 
policy 
directions 
and 
leadership 
in 
all 
aspects 
of 
valuation/appraisal and their implementation in the regional offices; 
(c) Recommend to the Secretary of Finance the approval of the Schedule 
of Market Values (SMVs) prepared by the provincial assessors together 
with municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, for tax and other purposes; 
(d) Advise and assist other government agencies on matters pertaining to 
real property valuation/appraisal; and 
(e) Perform such other functions as may be provided by law, or required in 
pursuance of this Act. 
SECTION 7. Consultations with Concerned Agencies and Sectors. - (a) A 
Central Consultative Committee shall be created, chaired by the BLGF 
Executive Director and composed of a representative each from the: 
L Bureau of Internal Revenue (BIR); 
2, Department of Environment and Natural Resources (DENR); 
3. Bangko Sentral ng Pilipinas (BSP); 
4, National organization of government assessors; 
5. National organization of appraisers in 
national government 
agencies; 
6. Private appraisal sector; and 
7. Union of Local Authorities of the Philippines (ULAP); 
(b) The member-representatives from the BIR, DENR, and BSP must be 
performing valuation-related functions. The national organization of 
governm~nt assessors, the private sector, and the ULAP shall be 
represented by their respective heads of organization, 
(c) In case there are several national organizations of government 
assessors or appraisers, their respective heads shall elect from among 
themselves a representative to the central consultative committee. The 
same rule shall apply in the case of the private appraisal sector. 
(d) The Chairperson and members of the Committee shall not receive 
additional salary for the performance of their functions, but they shall 
be entitled to honoraria, pursuant to existing laws and regulations, 
(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. 
SECTION 8. Functions of the Central Consultative Committee. - The Central 
Consultative Committee shall serve as the consultation forum on matters 
pertaining to the setting, adoption and maintenance of the valuation 
standards, 


Chapter 2 
BLGF Regional Operations 
SECTION 9. Role of the BLGF Regional Offices. - The BLGF Regional Offices, 
through the Regional Director, shall have the responsibility on all matters relating 
to valuation/appraisal and the SMVs in the region, such as: 
(a) Implement the provisions of this Act and related policies, plans, 
programs, rules and regulations on real property valuation or appraisal 
of local govemment units in the region; 
(b) Review and endorse to the BLGF Executive Director the proposed SMVs 
prepared by the provincial assessors together with the municipal 
assessors, and city assessors within the region; 
(c) Provide economical, efficient, and effective service relating to the 
implementation of the provisions of this Act in the region; 
(d) Coordinate and consult with regional offices of other government 
departments, bureaus, and agencies within the region dealing with 
real property valuation/appraisal; 
(e) Provide leadership and policy direction in the area of real property 
valuation/appraisal to local government units in the region; 
(f) Adopt and maintain a comprehensive and up-to-date regional 
electronic database of all regional real property-related transactions, 
and have custody of all transaction records submitted by local 
government assessors; and 
(g) Perform other functions as may be assigned by the BLGF Executive 
Director. 
SECTION 10. The Regional Consultative Committee. - (a) There shall be a 
Regional Consultative Committee chaired by the BLGF Regional Director, and 
composed of a representative each from: 
1) Bureau of Internal Revenue - Regional Office; 
2) Department of Environment and Natural Resources - Regional 
Office; 
3) Regional organization of government assessors; 
4) Regional organization of national government appraisers; 
5) Private appraisal sector within the region; and 
6) Bankers association within the region. 
(b) The members of the Regional Consultative Committee must be 
performing valuation/appraisal related functions. Representatives from 
the regional organization of government assessors, privati3 appraisal 
sector, and banking association within the region shall be represented 
by the head of their respective regional organization. 
(c) In case there are several regional organizations of government 
assessors or appraisers, their respective heads shall elect from among 
themselves a representative to the regional consultative committee. 
The same rule shall apply in the case of the private appraisal sector. 


(d) 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. 
SECTION 11. 
Functions of the Regional Consultative Committee. - The 
Regional Consultative Committee shall serve as a consultation forum in the 
region for discussion on developments in the local real property market; 
concerns of taxpayers, civil society, and other stakeholders; outcome of 
Compliance Reporting in the region; level of complaints and appeals; local 
government unit training in the region; appraiser and assessor concerns in 
general; and other matters as may be determined by the Committee. 
ARTICLE III 
VALUATION/APPRAISAL OF REAL PROPERTIES 
Chapter 1 
Valuation Standards and Market Values 
SECTION 12. Development of Valuation Standards. - Notwithstanding the 
provisions of existing laws to the contrary, the BLGF, shall develop, adopt, 
maintain and implement uniform valuation standards which shall be used by all 
I 
appraisers and assessors in the local government units and other concerned 
parties in appraising or valuing lands, buildings, machinery and' other real 
properties for taxation and other purposes. The valuation standards shall 
conform with generally accepted international valuation standards and 
principles. 
SECTION 
13. Valuation/Appraisal of Real Property. -
For valuation 
purposes, all real properties, whether taxable or exempt. shall be valued or 
appraised at the market value prevailing in the locality where the property is 
situated, in conformity with the valuation standards adopted under this Act. The 
BLGF shall promulgate the rules and regulations for the valuation/appraisal of 
real property pursuant to the proviSions of this Act. It shall provide leadership in 
ensuring rationalized valuation of real 
properties transcending political 
boundaries. 
For real properties intended for low-cost or socialized housing and other 
programs of the government imbued with social policy objectives, the provisions 
of existing pertinent laws shall be applied after the determination of the 
prevailing market value of these properties in accordance with internationally 
accepted valuation standards adopted under this Act. 
SECTION 14. Preparation of Schedule of Market Values. -
Provincial 
assessors together with municipal assessors, and city assessors, including the 
municipal assessor in Metro Manila, shall prepare the SMVs for the different 
classes of real property situated within their respective local government units, 
pursuant to the valuation standards, rules, regUlations and other specifications 
set by the DOF and the BLGF. The said SMVs shall be submitted by the assessor 


concerned, copy furnished the provincial governor or the city mayor, as the 
case may be, and the concerned Sanggunian, to the BLGF Regional Office for 
review and compliance with other requirements not later than the thirty-first 
(31st) day of October of the immediately preceding calendar year tre general 
revision of real property assessments shall be undertaken. The said SMVs shall be 
reviewed by the BLGF Regional Office within thirty (30) days upon receipt 
thereof, and shall then be submitted by the some to the BLGF Central Office. 
Upon the recommendation of the BLGF Executive Director, the Secretary of 
Finance shall approve the SMV within sixty (60) days from receipt of the same; 
otherwise, said schedule sholl be deemed approved. 
The approved SMV shall be transmitted to the concerned assessor who 
shall confer with the local chief executive regarding the said approved SMV. 
Likewise, the concerned assessor shall submit to the local chief executive a tax 
impact report of the new SMV as against the existing assessment levels and tax 
rates, and shall provide the Sanggunian, through the Chairman of the 
Committee on Ways and Means, a copy of such report. The local chief 
executive shall transmit the approved SMV together with the tax impact report 
within fifteen (15) days from receipt of the same to the Sanggunian for the 
enactment of an Ordinance setting the appropriate assessment levels and tax 
rates. The concerned Sanggunian shall enact such Ordinance, upon conduct of 
public hearings and proper consultation, within sixty (60) days from receipt 
thereof; otherwise, the existing Ordinance on assessment levels and tax rates 
shall remain in force and effect. 
Upon the enactment by the Sanggunian of an Ordinance for the 
assessment levels and tax rates, the local chief executive sholl oct within ten (10) 
days, in the case of cities, and the municipality in Metro Manila, or within fifteen 
(15) days, in the case of provinces, to approve the same. Failure of the 
concerned local chief executive to act on the Ordinance within the prescribed 
period shall render the some approved. 
The approved Ordinance together with the SMV shall be published by the 
concerned local government unit in a newspaper of local circulation once a 
week for two consecutive weeks: Provided, however, That in provinces, cities 
and municipalities where there are no newspapers of local circulatiom, the same 
. 
' 
shall be posted in the provincial capitol, city or municipal hall anq in two (2) 
other conspicuous public places therein. A list of LGUs whose SMVs have been 
approved shall be posted in the BLGF official website. 
SECTION 15. Use of Schedule of Market Values. - The SMV, as approved by 
the Secretary of Finance, shall be used for the general revision of real property 
assessments as basis for the determination of real property related taxes 
imposed by the national and local government units, and as benchmark for real 
property appraisal for other purposes. In computing any internal revenue tax, 
the BIR Commissioner shall adopt the SMV or the actual price in consideration, 
as stated in real property transaction documents, whichever is higher. 


Notwithstanding the provisions of existing laws to the contrary, the SMV 
shall cease as basis for the determination of national and local real property 
related taxes after five (5) years from the effectivity of its enacting Ordinance. 
SECTION 16. Revision of Schedule of Market Values. -
The BLGF shall 
formulate the program for the regular revision of SMVs. All provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, shall undertake a revision of their respective SMVs 
within two (2) years from the effectivity of this Act. Thereafter, they shall 
undertake a general revision of SMVs and property assessments not earlier than 
three (3) years from the date of last revision, but not later than five (5) years. 
In case of any significant change in the market where the property is 
located after the said SMVs have been approved and prior to its next revision, or 
where correction of errors and inequalities in any SMV is deemed necessary, the 
provincial assessors together with the municipal assessors, and city assessors, 
. including the municipal assessor in Metro Manila, may recommend to the BLGF 
Executive Director revisions to their existing SMV. Such revision/s shall;be subject 
to review by the concerned BLGF Regional Office and recommendation by the 
BLGF Executive Director for approval by the Secretary of Finance within ninety 
days (90) from the date of receipt thereof. 
SECTION 17. Conduct of Capacity Building Interventions. -
For the 
effective implementation of this Act, the BLGF shall develop and conduct the 
necessary trainings for all local assessors and other local officials/staff on the 
preparation of SMV in accordance with internationally accepted valuation 
standards, concepts, principles and practices; conduct of SMV impact studies; 
preparation of compliance reports, and other subject areas to ensure the 
effective implementation of this Act. 
Chapter 2 
Development and Maintenance of Real Property Database 
SECTION 18. Development of Real Property Database. - The BLGF shall 
develop and maintain an up-to-date electronic database of the sale, 
exchange, lease, mortgage, donation and all other real property transactions in 
the country and on the cost of construction or renovation of buildings and other 
structures, and on prices of machinery. For this purpose, the BLGF is hereby 
authorized to require the mandatory submission of necessary documents from 
the concerned officials or employees of national government offices or 
instrumentalities, local government units, and the private sector. The updated 
database shall be made available to the local government units, national 
government agencies, and the private sector. 


SECTION 19. Duty of Register of Deeds to Supply Assessors of Re,al Property 
Transactions Data. - The Register of Deeds shall prepare and submit to the 
provincial and city assessors, inciuding the municipal assessor in Metro Manila, 
an abstract of his/her registry every three (3) months and copies of all contracts 
selling, transferring or otherwise converting, leasing, or mortgaging real property 
registered by him/her every end of the month. The abstract shall include brief 
but sufficient description 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. 
SECTION 20. Duty of Official Issuing Building Permits or Certificates of 
Registration of Machinery to Transmit Copy 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. 
SECTION 21. 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 from receipt of such 
approved plans from the Land Management Bureau (LMB), the Land 
Registration Authority (LRA), or the Housing and Land Use Regulatory Board 
(HLURB), as the case may be. 
SECTION 22. Duty of Assessors to Transmit Documents to the BLGF. - It shall 
be the duty of the assessors to transmit to the concerned BLGF Regi'onal Office 
all real property transactions data from the Register of Deeds, official issuing 
building permit and geodetic engineers within one (1) month after the receipt of 
such data. The BLGF's Regional Office shall record, process and make a 
summary report of the real property data, and submit the same to the BLGF 
Central office within one (1) month from receipt of such data. 
Chapter 3 
Appointment and Qualifications of Assessors 
SECTION 23. Appointment of Assessors. - Notwithstanding the provisions of 
existing laws to the contrary, appointments of provincial, city, and municipal 
assessors and assistant assessors shall be in accordance with the following 
guidelines: 


" 
(a) In the case of provincial and assistant provincial assessors and city and 
assistant city assessors, appointee shall be chosen from the list of at 
least three (3) ranking eligible recommendees, as endorsed by the 
DOF Secretary, suitable and qualified for appointment within the 
region; 
(b) In the case of municipal and assistant municipal assessors, appointee 
shall be chosen from the list of at least three (3) ranking eligible 
reeommendees suitable and qualified for appointment within the 
province, as endorsed by the OOF Secretary; and 
(e) In the case of city and assistant city assessors and municipal and 
assistant municipal assessors for Metro Manila, appointee shall be 
chosen 
from 
the 
list 
of at least 
three 
(3) 
ranking 
eligible 
recommendees, as endorsed by the DOF Secretary, suitable and 
qualified for appointment within the Metro Manila. 
The assessors shall be under the technical supervision of the BLGF, primarily 
through a system of compliance reporting and provision for education and 
training for capacity building. 
SECTION 24. Qualifications of Local Government Assessors. - No person 
shall be appointed assessor or assistant assessor unless such person is a citizen of 
the Philippines, a resident of the region for a provincial or city assessor/assistant 
assessor and of the province for a municipal assessor/assistant assessor, a 
registered and licensed appraiser, of good moral character, and must have an 
experience in real property valuation or assessment work or in any suitable field 
for at least five (5) years in the case of the provincial or city assessor, and three 
(3) years in the case of the municipal assessor, 
ARTICLE IV 
PENAL PROVISIONS 
SECTION 25. 
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 19, 
20,21, and 22 of this Act shall be punished by a fine equivalent to the official's or 
ernployee's six (6) months basic salary or suspension from the service for a 
period not exceeding one (1) year, or both, at the discretion of the competent 
authority. 
SECTION 26. 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 concealed any 
deviations or departures from such standards in the valuation/appraisal of real 
property, shall be punished by a fine equivalent to the official's or employee's 
salary for a period of one (1) month to six (6) months basic salary, and 
suspension from th'e government service at the discretion of the competent 
authority, 
, 


~-~----~~-~ ----
SECTION 27. 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 meted with a fine 
equivalent to the official's or employee's for a period of one (1) month to six (6) 
months basic salary, or by suspension from government service for not more 
than one (1) year, or both, at the discretion of the competent authority. 
SECTION 2B. Violations of Other Provisions. - Any person, whether natural 
or juridical, who violates any provision of this Act other than those punishable 
under Sections 25, 26, and 27 hereof shall, when warranted, be dealt with under 
applicable existing laws. 
SECTION 29. Taxpayers' Remedies in Case of Erroneous Assessments of 
Real Properties. - The provisions of Sections 226 (Local Board of Assessment 
Appeals) and 229 
(Action by the Local Board of Assessment Appeals) of 
Republic Act No. 7160, otherwise known as The Local Government Code of 1991 
shall apply in all cases of appeals as remedies for the taxpayers in the 
assessment of their properties. 
ARTICLE V 
TRANSITORY PROVISIONS 
SECTION 30. Transitory Guidelines. - (a) Local government units which are 
in the process of revising their SMVs, upon the effectivity of this Act, shall 
continue with such revisions in accordance with Section 16 of this Act: Provided, 
That proper notification and coordination with the BLGF shall be undertaken. 
(b) In case the SMV is not yet available or revised, the BIR Cqmmissioner 
shall adopt the existing SMV, 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. 
SECTION 31. 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 municipal 
assessors, and city assessors, including the municipal assessors in Metro Manila, 
that have been approved by their respective Sanggunians for real property 
taxation purposes shall continue to be in force and effect until repealed, 
superseded, modified, revised, set aside, or replaced by the values provided 
under the new SMVs as approved in accordance with Section 16 of this Act, 
which shall be within two (2) years upon the effectivity of this Act. 


ARTICLE VI 
FUNDING REQUIREMENTS 
SECTION 32. Budgetary Requirements for Revision of Schedule of Market 
Values. - Each local Sanggunian shall appropriate the necessary funds from 
locally generated revenues, the Internal Revenue Allotment (IRA). or such other 
sources every fiscal year. The accumulated amount so appropriated shall be 
known as the Real Property Tax Administration Fund (RPTAF) which sh<;lll be used 
for the proper implementation of the regular revision of the SMVs and general 
revision of real property assessments, and the administration of real property 
taxes in all local government units. 
SECTION 33. 
Appropriations. -
The amount necessary for the initial 
implementation of this Act shall be charged against the current appropriations 
of the BLGF. Thereafter, such sum for the continuing operations and the proper 
implementation of this Act shall be included in 
the annual General 
Appropriations Act. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SECTION 34. Implementing Rules and Regulations (lRR). - Within six (6) 
months after the effectivity of this Act, the DOF, in consultation with concerned 
parties, shall issue the IRR for the effective implementation of this Act. 
SECTION 35. Suppletory 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 suppletory effect. 
SECTION 36. Repealing Clause. -
(a) Section 6(e) and Section 88(b) of 
Republic Act No. 8424, otherwise known as tt1e National Internal Revenue Code 
(NIRC), as amended, and Sections 19, 135(0), 138, 198(0), 199(g)(h)(I), 201, 202, 
209(0), 212, 214, 218 par. 1 (b), 219, 220, 224(0), 443(d), 444(b)(I)(v), 454(d), 
455(b)(1 )(v), 463(d), 465(b)(I)(v), 472(0) par 1, 472(b)(8), ancf 473(0) par 1 of 
Republic Act No. 7160, otherwise known as the Local Government Code (LGC) 
of the Philippines, are hereby repealed; 
(b) 
All 
laws, 
presidential 
decrees, 
executive 
orders, 
presidential 
proclamations, rules and regulations or parts thereof contrary to or i'nconsistent 
with this Act are hereby repealed, superseded or modified accordingly. 


, . 
SECTION 37. Separability Clause. - Any portion or provision of this Act that 
may be declared unconstitutional or invalid shall not have the effect of nullifying 
other portions or provisions hereof, as long as such remaining portions or 
provisions can still subsist and be given effect in their entirety. 
SECTION 38. Effectivity. - . This Act shall take effect fifteen (15) days after 
completion of publication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,