Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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 
Real property tax is an important source of revenue for local government units (LGUs). In 
Fiscal Year (FY) 2021, the total Locally Sourced Revenues (LSR) collected by all provinces, cities, 
and municipalities reached Php256.21 billion, with real property taxes contributing Php78.20 
billion, which was second only to business taxes collected, amounting to Php113.16 billion.1 
However, it was notable that LGUs continue to depend on national tax allotment (NTA) (formerly, 
internal revenue allotment (IRA)), which was at Php554.02 billion.2 
LGUs’ dependence on externally-generated revenues was likewise confirmed by a study 
conducted by the National Tax Research Center (NTRC), which covers the analysis of the 
revenue performance of local taxes on real properties from 2012-2016. The NTRC observed that 
externally-generated revenues, comprising of the IRA (now, NTA), share from the utilization of 
national wealth, grants and aids, borrowings, and others contributed to an average of 66.93% of 
the total revenue of LGUs.3 Out of this number, the IRA (now, NTA) accounted for the biggest 
share at around 59.27% of total external sources.4 
1 May 31, 2022, LGUs post positive local collection growth in FY2021, Q1 FY2022. Bureau of Local Government Finance. Retrieved 
from https://blgf.gov.ph/lgus-post-positive-local-collection-growth-in-fy2021-q1-fy2022/ (date last accessed: November 5, 2022). 
2 Id. 
3 March-April 2019, Analysis of the Revenue Performance of Local Taxes on Real Properties CY 2012-2016, National Tax Research 
Center. Retrieved from https://www.ntrc.gov.ph/images/journal/2019/j20190304b.pdf (date last accessed: November 5, 2022). 
4 Id. 
March 29, 2023
11:03 am
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There is a potential for increasing revenues from real property taxes which can be used 
by LGUs to deliver frontline government services to their residents. However, reforms must be 
undertaken to improve the existing land valuation system in the country. According to the 
Department of Finance (DOF), provinces and cities are losing an estimated Php30.5 billion in total 
foregone revenues because of outdated real property values,5 which is required to be updated 
every three (3) years under Section 220 of Republic Act No. 7160, otherwise known as the “Local 
Government Code of 1991.”6 
Other systemic problems noted by the DOF include: a) multiple and overlapping valuations 
in different government agencies; b) absence of a single agency responsible for ensuring that 
valuations are in accordance with international standards; and c) absence of a comprehensive 
real property electronic database.7 
Thus, this proposed measure aims to address these issues by, among others: 
a) Establishing and maintaining valuation standards consistent with internationally
accepted valuation standards;
b) Adopting a single real property valuation base for the assessment of real
property-related taxes through the adoption of a schedule of market values
(SMVs);
c) Centralizing the approval of SMVs by the local Sanggunian to the Secretary of
Finance, through the strengthened Bureau of Local Government Finance
(BLGF), and in coordination with the Bureau of Internal Revenue (BIR); and
d) Establishing an electronic database to support valuation functions.
With the present measure, the aim is to empower and further promote the fiscal autonomy 
of LGUs to ensure that they can provide basic services to their constituents. 
Thus, the immediate passage of this bill is earnestly sought. 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
5 June 3, 2019, LGUs losing P30.5-B revenues to outdated real property valuation, Department of Finance. Retrieved from 
https://taxreform.dof.gov.ph/news_and_updates/lgus-losing-p30-5-b-revenues-to-outdated-real-property-valuation/ 
(date 
last 
accessed: November 5, 2022). 
6 Section 220, Republic Act No. 7160. 
7
Package 3: Real property valuation reform, Department of Finance. Retrieved from: https://taxreform.dof.gov.ph/wp-
content/uploads/2019/08/CTRP-Package-3-Real-property-valuation-reform-1-page-briefer.pdf (date last accessed: November 5, 
2022). 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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 “Real Property Valuation 
1 
and Assessment Reform Act.” 
2 
3 
ARTICLE I 
4 
DECLARATION OF POLICY AND OBJECTIVES, AND 
5 
DEFINITION OF TERMS 
6 
7 
SEC. 2. Declaration of Policy and Objectives. – It is the policy of the State to 
8 
promote the development and maintenance of a just, equitable, impartial, and nationally 
9 
consistent real property valuation based on internationally accepted valuation standards, 
10 
concepts, principles, and practices. Towards this end, the State shall: 
11 
12 
(a) Establish and maintain standards to govern the valuation of real property in the
13 
country;
14 
15 
(b) Adopt market value as the single real property valuation base for the assessment of
16 
real property related taxes in the country, and for the valuation of real property for
17 
various transactions by all government agencies;
18 
19 
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(c) Promote the fiscal autonomy of local government units (LGUs) to provide basic 
1 
services to their constituency by enhancing their capacity to generate local revenues 
2 
from real property; 
3 
 
4 
(d) Separate the function of valuation of real properties from the functions of tax policy 
5 
formulation and the administration of the taxes due thereon; 
6 
 
7 
(e) Support the development and professionalization of the valuation practice in the 
8 
country pursuant to Republic Act No. 9646, otherwise known as the “Real Estate 
9 
Service Act of the Philippines”; 
10 
 
11 
(f) Provide a comprehensive and up-to-date electronic database of all real property 
12 
transactions; 
13 
 
14 
(g) Support the development of an information database on valuation through continuing 
15 
research and monitoring of new developments in the valuation discipline to upgrade 
16 
the country’s valuation system and be at par with global standards; and 
17 
 
18 
(h) Ensure transparency in real property transactions to protect public interest, and 
19 
develop confidence in the valuation system. 
20 
 
21 
SEC. 3. Definition of Terms. – As used in this Act, the following terms shall mean: 
22 
 
23 
(a) Appraiser refers to a person who conducts valuation, specifically, one who possesses 
24 
the necessary qualifications, license, ability, and experience to execute or direct the 
25 
valuation of real property;  
26 
 
27 
(b) Assessment refers to the act or process of determining the value of a property, or 
28 
proportion thereof subject to taxation, including the discovery, listing, classification, 
29 
and appraisal of properties; 
30 
 
31 
(c) Assessment Level refers to the percentage applied to the market value to determine 
32 
the taxable value of the property based on property classifications as prescribed in 
33 
Republic Act No. 7160, otherwise known as the “Local Government Code of 1991,” as 
34 
amended; 
35 
 
36 
(d) Assessor refers to the official or employee in the LGU who is a duly licensed 
37 
appraiser, and performs appraisal and assessment of real properties, including plant, 
38 
machinery, and equipment, for taxation and other purposes. This definition also 
39 
includes the assistant assessor; 
40 
 
41 
(e) Building refers to a man-made structure permanently attached to land for residential, 
42 
commercial, industrial, recreational, or other purposes; 
43 
 
44 
(f) Improvement refers to a valuable addition made to a property or an amelioration in 
45 
its condition, amounting to more than a mere repair or replacement of parts, involving 
46 


capital expenditures and labor intended to enhance its value, beauty, or utility, or to 
1 
adapt it for new or further purposes; 
2 
 
3 
(g) Land refers to one of the major factors of production which is supplied by nature 
4 
without the aid of man. Land not only includes the earth’s surface, covering both land 
5 
and water, but also anything that is attached to the earth’s surface, including all natural 
6 
resources in their original state, such as mineral deposits, wildlife, and timber; 
7 
 
8 
(h) Internationally accepted valuation standards refer to generally accepted standards 
9 
for the valuation for all types of assets, including real estate plant and equipment, 
10 
intangible assets and businesses; 
11 
 
12 
(i) Machinery refers to machines, equipment, mechanical contrivances, instruments, 
13 
appliances, or apparatus which may or may not be attached, permanently or 
14 
temporarily, to real property. It includes the physical facilities for production, the 
15 
installations and appurtenant service facilities, those which are mobile, self-powered 
16 
or self-propelled, and those not permanently attached to the real property which are 
17 
actually, directly, and exclusively used to meet the needs of the particular industry, 
18 
business, or activity, and which, by their very nature and purpose are designed for or 
19 
necessary to its manufacturing, mining, logging, commercial, industrial or agricultural 
20 
purposes; 
21 
 
22 
(j) Market Value refers to the estimated amount for which a property shall exchange on 
23 
the date of valuation between a willing buyer and a willing seller in an arm’s length 
24 
transaction, which is a transaction between independent, unrelated parties involving 
25 
no irregularity, after proper marketing, wherein the parties acted knowledgeably, 
26 
prudently, and without compulsion; 
27 
 
28 
(k) Private appraisal sector refers to licensed non-governmental real estate service 
29 
practitioners who have been active in the practice of real estate appraisal for at least 
30 
five (5) years;  
31 
 
32 
(l) Real estate refers to the land and all those items which are attached to the land. It is 
33 
the physical tangible entity, together with all the additions or improvements on, above, 
34 
or below the ground; 
35 
 
36 
(m) Real property refers to all the rights, interests, and benefits related to the ownership 
37 
of real estate, plant, machinery, and equipment;  
38 
 
39 
(n) Schedule of Market Values or SMV refers to a table of base unit market values for 
40 
all kinds of real property, except machinery within an LGU prepared by assessors 
41 
pursuant to existing laws, rules and regulations; 
42 
 
43 
(o) Special purpose property refers to a property that is designed, constructed and 
44 
developed for a specific use or purpose. By its very nature, this type of property is 
45 
rarely offered for sale in the open market except as part of a going concern. Its special 
46 


design and function renders conversion to other types of development or application 
1 
not economically feasible; and 
2 
 
3 
(p) Valuation or Appraisal refers to the systematic, analytic and logical analysis of the 
4 
recording of property facts, circumstances, investments and other relevant data 
5 
resulting in a supportable estimate or professional opinion of the value of the property 
6 
as of a specific date and for a specific purpose. 
7 
 
8 
ARTICLE II 
9 
THE BUREAU OF LOCAL GOVERNMENT AND FINANCE (BLGF) 
10 
 
11 
Chapter 1 
12 
BLGF Central Operations 
13 
 
14 
SEC. 4. Powers and Functions of the Bureau of Local Government Finance 
15 
(BLGF). – The BLGF of the Department of Finance (DOF) shall lead and manage the 
16 
implementation of the provisions of this Act. In addition to the powers vested upon it by 
17 
Executive Order No. 292, otherwise known as the “Administrative Code of 1987,” it shall 
18 
exercise the following additional powers and functions: 
19 
 
20 
(a) Develop, adopt, and maintain valuation standards consistent with internationally 
21 
accepted valuation standards, regulations, and specifications of real property 
22 
appraisal used for taxation and other purposes, and ensure compliance therewith by 
23 
LGUs and other concerned parties;  
24 
 
25 
(b) In coordination with the Bureau of Internal Revenue (BIR), review and ensure that the 
26 
Schedule of Market Values (SMVs), as prepared by the provincial assessors together 
27 
with the municipal assessors, and the city assessors, including the municipal assessor 
28 
in the Metropolitan Manila Area, is compliant with real property valuation properties 
29 
and standards, and recommend its approval to the Secretary of Finance for local and 
30 
national taxation, and for other purposes; 
31 
 
32 
(c) Provide technical assistance on real property appraisal matters to government 
33 
agencies and instrumentalities, and coordinate or conduct the valuation of special 
34 
purpose properties, when requested; 
35 
 
36 
(d) Provide leadership and policy directions to LGUs, national government agencies, 
37 
private sector institutions and individuals dealing with real property valuation for 
38 
taxation and other purposes, including the development and maintenance of valuation 
39 
standards, the regulation of valuation activities and other related matters, and the 
40 
promotion of valuation training and seminars;  
41 
 
42 
(e) Maintain a roster of licensed government appraisers and assessors, in coordination 
43 
with the Professional Regulation Commission (PRC); 
44 
 
45 


(f) Develop and maintain a comprehensive and up-to-date electronic database of real 
1 
property transactions and prices of materials for buildings, machinery, and other 
2 
structures; 
3 
 
4 
(g) Conduct continuing study and research, and maintain information on current global 
5 
and country trends and developments in real property valuation; 
6 
 
7 
(h) Formulate and provide for uniform procedure on the different transactions in the 
8 
assessor’s office, including the transfer, annotation, and issuance of tax declarations; 
9 
 
10 
(i) Determine, fix, and collect a reasonable amount to be charged as administration fees, 
11 
fines, and penalties relative to the implementation of this Act; and 
12 
 
13 
(j) Perform such other functions as are necessary proper, and incidental to implement 
14 
the provisions of this Act. 
15 
 
16 
SEC. 5. Establishment of the Real Property Valuation Service. – To achieve 
17 
the policies and objectives declared in this Act, the Real Property Valuation Service 
18 
(RPVS) is hereby established within the BLGF and shall have counterpart personnel in 
19 
the BLGF Regional Offices. 
20 
 
21 
SEC. 6. Supervisory Role of the BLGF. – The BLGF Executive Director shall be 
22 
responsible for the efficient and effective day-to-day performance of the responsibilities 
23 
set forth in this Act, and for the overall internal management and governance of the RPVS. 
24 
 
25 
SEC. 7. Creation of a Central Consultative Committee. –  
26 
 
27 
(a) A Central Consultative Committee shall be created and shall serve as the consultative 
28 
forum on matters pertaining to the setting and adoption of internationally accepted 
29 
valuation standards and other related concerns on real property valuation; 
30 
 
31 
(b) It shall be chaired by the BLGF Executive Director and shall be composed of a 
32 
representative each from the: 
33 
 
34 
(1) BIR; 
35 
 
36 
(2) Department of Environment and Natural Resources (DENR); 
37 
 
38 
(3) Bangko Sentral ng Pilipinas (BSP); 
39 
 
40 
(4) National organization of government assessors; 
41 
 
42 
(5) National organization of appraisers in national government agencies; and  
43 
 
44 
(6) Private appraisal sector; 
45 
 
46 


Provided, That the representative from the private appraisal sector shall be active 
1 
in the practice of real estate appraisal for at least five (5) years as certified by the 
2 
Professional Regulatory Board of Real Estate Services (PRBRES). 
3 
 
4 
(c) The representatives of the BIR, DENR, and BSP must be performing valuation-related 
5 
functions. The national government of government assessors, and the private 
6 
appraisal sector shall be represented by their respective heads of organizations or 
7 
their duly qualified representatives; 
8 
 
9 
(d) The Chairperson and members of the Committee shall not receive additional salary 
10 
for the performance of their functions. Members who are not incumbent government 
11 
officials or employees shall be entitled to honoraria, in accordance with relevant laws, 
12 
rules and regulations; and  
13 
 
14 
(e) The Committee shall meet at the initiation of the Chairperson at least once every 
15 
semester and shall have as many meetings as the Chairperson may deem necessary.   
16 
The Chairperson may invite resource persons on issues concerning real property 
17 
valuation. 
18 
 
19 
Chapter 2 
20 
BLGF Regional Operations 
21 
 
22 
 SEC. 8. Role of the BLGF Regional Offices. – The BLGF Regional Offices shall, 
23 
through the Regional Director, be responsible for all matters relating to valuation and the 
24 
supervision of the SMVs in the region. They shall: 
25 
 
26 
(a) Implement policies, plans, programs, rules and regulations on real property valuation 
27 
of LGUs in the region; 
28 
 
29 
(b) Review, in coordination with the BIR, and endorse to the RPVS, the proposed SMVs 
30 
prepared by the assessors of the LGUs in the region; 
31 
 
32 
(c) Provide for economical, efficient and effective valuation services in the region; 
33 
 
34 
(d) Coordinate and consult with other government departments, bureaus and agencies 
35 
within the region dealing with real property valuation; 
36 
 
37 
(e) Adopt and maintain a comprehensive and up-to-date electronic database of all 
38 
regional real property-related transactions, and have custody of all transaction records 
39 
submitted by local government assessors; and 
40 
 
41 
(f) Perform other functions as may be assigned by the BLGF Executive Director. 
42 
 
43 
SEC. 9. The Regional Consultative Committee. –  
44 
 
45 


(a) There shall be a Regional Consultative Committee that shall be chaired by the BLGF 
1 
Regional Director and shall be composed of a representative from the: 
2 
 
3 
(1) BIR – Regional Office; 
4 
 
5 
(2) DENR – Regional Office; 
6 
 
7 
(3) Head of regional organization of government assessors or its duly authorized 
8 
representative; 
9 
 
10 
(4) Head of regional organization of national government appraisers or its duly 
11 
authorized representative; 
12 
 
13 
(5) Head of the private appraisal sector within the region or its duly authorized 
14 
representative; and 
15 
 
16 
(6) Head of the bankers association within the region or its duly authorized 
17 
representatives; 
18 
 
19 
(b) The members of the Regional Consultative Committee must be performing valuation-
20 
related functions in their respective agencies or sectors; and 
21 
 
22 
(c) The Committee shall meet at the initiation of the BLGF Regional Director at least once 
23 
every quarter and shall have as many meetings as the BLGF Regional Director may 
24 
deem necessary for the performance of its functions. The BLGF Regional Director 
25 
may invite resource persons on issues concerning real property valuation. 
26 
 
27 
SEC. 10. Function of the Regional Consultative Committee. – The Regional 
28 
Consultative Committee shall serve as a consultative forum in the region for discussion 
29 
on developments in the local real property market, concerns of taxpayers, civil society, 
30 
and other stakeholders, outcome of compliance reporting in the region, level of complaints 
31 
and appeals; training of local government assessors in the region; appraisal and 
32 
assessment concerns in general; and other matters as may be determined by the 
33 
Committee: Provided, That any report thereof, as a result of the forum, shall be submitted 
34 
to the Central Consultative Committee.  
35 
 
36 
ARTICLE III 
37 
VALUATION OF REAL PROPERTIES 
38 
 
39 
Chapter 1 
40 
Valuation Standards and Market Values 
41 
 
42 
SEC. 11. Development of Valuation Standards. – Notwithstanding the 
43 
provisions of existing laws to the contrary, the BLGF shall develop, adopt, maintain, and 
44 
implement uniform valuation standards which shall be used by all appraisers and 
45 
assessors in the LGUs and other concerned parties in the valuation of lands, buildings, 
46 


machinery and other real properties for taxation and other purposes. The valuation 
1 
standards shall conform with internationally accepted valuation standards. 
2 
 
3 
SEC. 12. Valuation of Real Property. – For valuation purposes, all real 
4 
properties, whether taxable or exempt, shall be valued based on prevailing market values 
5 
in the locality where the property is situated, in conformity with the valuation standards 
6 
adopted pursuant to this Act.  
7 
 
8 
For real properties intended for low-cost socialized housing and other programs of 
9 
the government imbued with social policy objectives, the provisions of pertinent laws shall 
10 
be applied on the prevailing market value of these properties in accordance with 
11 
internationally accepted valuation standards. 
12 
 
13 
SEC. 13. Preparation of Schedule of Market Values. – The provincial assessors, 
14 
together with the municipal assessors, and the city assessors, including the municipal 
15 
assessor in the Metropolitan Manila Area, shall prepare the SMVs for the different classes 
16 
of real property situated within their respective LGUs, pursuant to the valuation standards 
17 
set by the BLGF, rules and regulations, and other specifications set by the DOF. The 
18 
preparation of the SMVs shall be completed within six (6) months following the notice 
19 
from the BLGF to all local assessors to submit their revised SMVs. 
20 
 
21 
Upon its completion, the local assessor shall submit the proposed SMV to the 
22 
BLGF Regional Office. Within seventy-five (75) days from receipt thereof, the BLGF 
23 
Regional Office, in coordination with the BIR Regional Office, shall review and endorse 
24 
the proposed SMV to the BLGF Executive Director and the Commissioner of Internal 
25 
Revenue: Provided, That, in the case of cities and municipality within the Metropolitan 
26 
Manila Area, the proposed SMV shall be submitted to, and reviewed by, the BLGF Central 
27 
Office, in coordination with the concerned BIR Regional Office: Provided, further, That the 
28 
SMV complies with all the requirements set by the Secretary of Finance, including the 
29 
conduct of at least one (1) public consultation on the proposed SMVs. 
30 
 
31 
SEC. 14. Approval of Schedule of Market Values. – The Secretary of Finance 
32 
shall approve the SMV in accordance with internationally accepted valuation standards 
33 
within thirty (30) days from receipt of the joint endorsement of the BLGF Executive 
34 
Director and the Commissioner of Internal Revenue; otherwise, said schedule shall be 
35 
deemed approved. In case of sudden changes in the market values of lands such as, but 
36 
not limited to,  ancestral domain, public land, lands held by agrarian reform beneficiaries 
37 
and other vulnerable sectors, the assessor is mandated to recommend to the sanggunian 
38 
tax rates and assessment levels that will maintain or minimally affect the real property tax 
39 
due on the same.  
40 
 
41 
The approved SMVs shall take effect fifteen (15) days after its publication by the 
42 
DOF in the Official Gazette or in at least two (2) newspapers of general circulation, and 
43 
posting in the respective provincial capitol, city hall, and municipal hall, and in two (2) 
44 
other conspicuous public places within the LGU covered by the approved SMVs. 
45 
 
46 


The DOF and the concerned LGUs shall post the approved SMVs in their official 
1 
website. 
2 
 
3 
SEC. 15. Setting Assessment Levels and Tax Rates. – The approved SMV shall 
4 
be transmitted to the concerned local chief executive, through the respective provincial, 
5 
city, and municipal assessor. The concerned assessor, in coordination with the local 
6 
treasurer, shall estimate the revenue and tax impact of the new SMV based on existing 
7 
assessment levels and tax rates, and recommend amendments thereon based on three 
8 
(3) different scenarios. The assessor shall thereafter prepare and submit the revenue and 
9 
tax impact report to the local chief executive for consideration. 
10 
 
11 
The local chief executive shall transmit the approved SMV, together with the 
12 
revenue and tax impact report, within fifteen (15) days from receipt of the same to the 
13 
sanggunian for the enactment of an ordinance setting the appropriate assessment levels 
14 
and tax rates. During the deliberations of the sanggunian prior to the enactment of the tax 
15 
ordinance, it may call upon the assessor to provide technical assistance and calculate the 
16 
revenue and tax impact of additional options in order to arrive at a desired level of revenue 
17 
and tax burden. The concerned sanggunian shall enact the tax ordinance within sixty (60) 
18 
days from receipt thereof, upon conduct of public hearings and proper consultations; 
19 
otherwise, the existing ordinance on assessment levels and tax rates shall remain in force 
20 
and effect. 
21 
 
22 
Upon the enactment by the sanggunian of an ordinance for the assessment levels 
23 
and tax rates, the local chief executive shall act within ten (10) days in the case of cities, 
24 
including the municipality in the Metropolitan Manila Area, or within fifteen (15) days, in 
25 
the case of provinces, to approve the same. Failure of the concerned local chief 
26 
executive to act on the ordinance within the prescribed period shall render the same 
27 
approved: Provided, however, That this law shall not be construed to abridge the power 
28 
of LGUs to lower and adjust assessment levels and tax rates in accordance with the 
29 
provisions of the Local Government Code of 1991, as amended, to provide to residential 
30 
property owners as deemed necessary. 
31 
 
32 
SEC. 16.   Publication of Assessment Levels and Tax Rates. – The approved 
33 
ordinance for the assessment levels and tax rates shall be published by the concerned LGU in 
34 
a newspaper of local circulation once a week for two (2) consecutive weeks: Provided, That in 
35 
provinces and cities. including the municipality within the Metropolitan Manila Area, where there 
36 
are no newspapers of local circulation, the same shall be posted in the provincial capitol, 
37 
including all concerned city halls, municipal halls, and in two (2) other conspicuous public places 
38 
therein.  
39 
 
40 
SEC. 17.  Use of Schedule of Market Values. – The approved SMV shall be 
41 
used as bases for the determination of real property-related taxes of national and local 
42 
governments, as follows: 
43 
 
44 
(a) For purposes of real property taxation, the approved SMV shall, in no case, be 
45 
adopted by the LGU less than six (6) months prior to the effectivity of the new 
46 
assessment rates to ensure the proper cleansing and updating of records, and 
47 


notification of property owners in the conduct of general revision of assessment and 
1 
property classification. 
2 
 
3 
(b) In computing any internal revenue tax, the BIR Commissioner shall use the SMV, or 
4 
the actual gross selling price in consideration, as stated in real property transaction 
5 
documents, whichever is higher. 
6 
 
7 
(c) For other purposes, such as local transfer tax, tax on sand and gravel, community 
8 
tax, fees and charges, or as benchmark for real property appraisal of other 
9 
government agencies, the approved SMV shall be used upon its effectivity. 
10 
 
11 
Notwithstanding the provision of existing laws to the contrary, the failure to 
12 
conduct a general revision of assessment and property classification, and use of the 
13 
approved SMV shall render an LGU ineligible for any conditional or performance-based 
14 
grant or to contract any form of credit financing. 
15 
 
16 
SEC. 18. Updating the Schedule of Market Values. – All provincial assessors, 
17 
together with the municipal assessors and the city assessors, including the municipal 
18 
assessor within the Metropolitan Manila Area, shall update their respective SMVs within 
19 
two (2) years from the effectivity of this Act. Thereafter, they shall update the SMVs and 
20 
conduct general revision of property assessments and classifications once every three 
21 
(3) years from the date of last revision. The BLGF shall prepare the schedule for the 
22 
updating of the SMVs in all provinces and cities, including the municipality within the 
23 
Metropolitan Manila Area. 
24 
 
25 
In case of any significant change in market value where the property is located 
26 
after the SMV has been approved and prior to the next revision, such as in times of 
27 
calamities, man-made or natural disasters, and other adverse circumstances, or where 
28 
corrections of errors and inequalities in the SMV is deemed necessary, or upon the order 
29 
of the Secretary of Finance, the provincial and city assessors shall recommend revisions 
30 
to the existing SMVs to the BLGF Regional Office, through the BLGF Regional Director 
31 
exercising jurisdiction over the LGU concerned: Provided, That the city assessors and 
32 
municipal assessor within the Metropolitan Manila Area shall recommend revisions to 
33 
the existing SMVs to the BLGF Central Office. 
34 
 
35 
Such revision or revisions shall be subject to review by the concerned BLGF 
36 
Regional Office and the BIR Regional Office which shall complete their review and 
37 
submit their recommendations to the BLGF Executive Director, in accordance with 
38 
Sections 13 and 14 of this Act. 
39 
 
40 
SEC. 19. Conduct of Capacity Building Interventions. – The BLGF shall, in 
41 
coordination with the Philippine Tax Academy of the DOF, develop and conduct the 
42 
necessary trainings for all local assessors, local officials and staff, and other concerned 
43 
BIR personnel in the preparation of the SMVs in accordance with internationally accepted 
44 
valuation standards, concepts, principles and practices, conduct of impact studies, 
45 
preparation of compliance reports, and other subject areas. 
46 


 
1 
Chapter 2 
2 
Development and Maintenance of  
3 
Real Property Market Database 
4 
 
5 
SEC. 20. Development of Real Property Information System. – The BLGF 
6 
shall develop and maintain an up-to-date electronic database of the sale, exchange, 
7 
lease, mortgage, donation, transfer, and all other real property transactions in the 
8 
country and on the prices of construction or renovation of buildings, machinery, and 
9 
other structures. 
10 
 
11 
For this purpose, the BLGF shall require the mandatory submission of necessary 
12 
documents from the concerned officials or employees of national government offices or 
13 
instrumentalities, LGUs, and the private sector: Provided, That in the case of government 
14 
agencies and instrumentalities, the mandatory submission of documents and information 
15 
shall be subject to the prohibition of disclosure of certain information under Republic Act 
16 
No. 10173, otherwise known as the “Data Privacy Act,” and other existing laws. The 
17 
updated database shall be made available to the LGUs, national government agencies 
18 
and the private sector: Provided, further, That the Commissioner of Internal Revenue or 
19 
his/her duly authorized representative shall be allowed access to the database without 
20 
need of prior approval: Provided, finally, That non-submission of the required documents 
21 
to the BLGF will subject the concerned official or employee to administrative penalties 
22 
under this Act. 
23 
 
24 
To further ensure the efficiency of real property tax administration, all provinces, 
25 
cities, and municipalities shall automate their operations, adopt tax mapping technology, 
26 
maintain software-enabled valuation systems, undertake regular data cleansing, and 
27 
computerize records management. The National Government, through the Department 
28 
of Information and Communications Technology (DICT), shall provide the appropriate 
29 
equipment and connectivity, information and communications technology platform, and 
30 
the appropriate training and capability building programs to third class up to sixth class 
31 
municipalities and provinces to ensure compliance with this Section. The BLGF shall 
32 
establish mechanisms for the electronic submission of the required documents in 
33 
accordance with the provisions of Chapter 2, Article II of this Act. 
34 
 
35 
SEC. 21.  Duty of Register of Deeds to Supply Assessors with Real Property 
36 
Transactions Data. – The Register of Deeds shall prepare and submit to the provincial 
37 
assessors, together with the municipal assessors, and city assessors, including the 
38 
municipal assessor in the Metropolitan Manila Area, an abstract of the entire registry 
39 
every three (3) months and copies of all contracts selling, transferring or otherwise 
40 
converting, leasing, or mortgaging real property registered every end of the month. The 
41 
abstract shall include brief, but sufficient descriptions of the real properties entered 
42 
therein, their present owners, and the dates of their most recent transfer or alienation, 
43 
accompanied by copies of corresponding deeds of sale, donation, or partition, or other 
44 
forms of alienation. 
45 
 
46 


SEC. 22.  Duty of Official Issuing Building Permits or Certificates of 
1 
Registration of Machinery to Transmit Copy of Permit to the Assessor. – Any public 
2 
official or employee who may now or hereafter be required by law or regulation to issue 
3 
to any person a permit for the construction, addition, repair, or renovation of a building, 
4 
or permanent improvement on land, or a certificate of registration for any machinery, 
5 
including machines, mechanical contrivances and apparatus attached or affixed on land 
6 
or to another real property, shall transmit a copy of such permit or certification within 
7 
thirty (30) days of its issuance to the assessor of the province, city or municipality where 
8 
the property is situated. 
9 
 
10 
SEC. 23.  Duty of Geodetic Engineers to Furnish Copy of Plans to the 
11 
Assessor. – It shall be the duty of all geodetic engineers, public or private, to furnish, 
12 
free of charge, the assessor of the province, city or municipality where the land is 
13 
located, a copy of the blue or white print of each of all approved original subdivision 
14 
plans or maps of surveys, duly signed by a Senior Geodetic Engineer, executed by them 
15 
every end of the month from receipt of such approved plans from the Land Management 
16 
Bureau (LMB), the Land Registration Authority (LRA), or the appropriate office of the 
17 
Department of Human Settlements and Urban Development (DHSUD), as the case may 
18 
be. 
19 
 
20 
SEC. 24.   Duty of Registrar of Deeds and Notaries Public to Assist the 
21 
Provincial, City or Municipal Assessor. – It shall be the duty of the Registrar of Deeds 
22 
and notaries public to furnish, free of charge, the provincial, city or municipal assessor 
23 
with copies of all contracts selling, transferring, or otherwise conveying, leasing, or 
24 
mortgaging real property received by, or acknowledged before them within such periods 
25 
as the BLGF shall prescribe. 
26 
 
27 
SEC. 25. Transmission of Real Property Transactions Data to the BLGF. – 
28 
Upon operationalization of the real property transactions database as provided in 
29 
Section 20 of this Act, it shall be the duty of the registrars of deeds, notaries public, 
30 
officials issuing building permits, and the geodetic engineers conducting surveys within 
31 
a locality to electronically transmit to the concerned BLGF Regional Office relevant real 
32 
property transactions data, in accordance with the rules and regulations to be 
33 
promulgated by the Secretary of Finance. 
34 
 
35 
Chapter 3 
36 
Appointment and Qualifications of Assessors 
37 
 
38 
SEC. 26.  Appointment of Assessors. – The local chief executive shall appoint 
39 
the provincial, city, and municipal assessors and assistant assessors, as the case may 
40 
be, in accordance with applicable civil service laws, the Real Estate Service Act of the 
41 
Philippines, relevant rules and regulations, and the following guidelines: 
42 
 
43 
(a) In the case of provincial and assistant provincial assessors, and city and assistant city 
44 
assessors, the appointee shall be chosen from the list of at least three (3) ranking 
45 
eligible candidates within the region; 
46 


 
1 
(b) In the case of city and assistant city assessors, and the municipal and assistant 
2 
municipal assessors in the Metropolitan Manila Area, the appointee shall be chosen 
3 
from the list of at least three (3) ranking eligible candidates within the region; and 
4 
 
5 
(c) In the case of municipal and assistant municipal assessors, the appointee shall be 
6 
chosen from the list of at least three (3) ranking eligible candidates within the province. 
7 
 
8 
The assessors shall be under the technical supervision of the BLGF, primarily 
9 
through a system of compliance reporting and of capacity building through education 
10 
and training programs. 
11 
 
12 
SEC. 27.  Qualification of Local Government Assessors. – No person shall be 
13 
appointed assessor or assistant assessor unless he/she is a citizen of the Philippines, a 
14 
resident of the region for a provincial or city assessor/assistant assessor, and of the 
15 
province for a municipal assessor/assistant assessor, a registered and licensed 
16 
appraiser, of good moral character, and must not have been convicted of any crime 
17 
involving moral turpitude. The appointee must have experience in real property valuation 
18 
or assessment work in any suitable field, either in private or public practice, for at least 
19 
five (5) years.  Once appointed, all assessors and local government appraisers must 
20 
comply with the requirements of the Professional Regulatory Board of Real Estate Service 
21 
for the regular updating of their licenses.  
22 
 
23 
ARTICLE IV  
24 
PENAL PROVISIONS 
25 
 
26 
SEC. 28.  Failure to Comply with the Required Submission of Documents. – 
27 
Any government official or employee who fails without justifiable reason to provide or 
28 
furnish data or information required pursuant to Sections 20, 21, 22, 23, 24 and 25 of 
29 
this Act, shall be punished by a fine equivalent to one (1) month to six (6) months basic 
30 
salary of the official or employee, or suspension from the service for a period not 
31 
exceeding one (1) year, or both, at the discretion of the competent authority.  
32 
 
33 
SEC. 29.  Failure to Comply with the Valuation Standards. – An assessor who, 
34 
for unjustifiable reasons, fails to comply with the valuation standards developed and 
35 
adopted pursuant to this Act, or deliberately conceals any deviation or departure from 
36 
such standards in the valuation of real property, shall be punished by a fine equivalent 
37 
to one (1) month to six (6) months basic salary of the official or employee, or suspension 
38 
from the service for a period not exceeding one (1) year, or both, at the discretion of the 
39 
competent authority. 
40 
 
41 
SEC. 30.  Failure to Prepare Schedule of Market Values. – An assessor who, 
42 
for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs 
43 
within the period set forth in this Act shall be punished by a fine equivalent to one (1) 
44 
month to six (6) months basic salary of the official or employee, or suspension from the 
45 
service for not more than one (1) year, or both, at the discretion of the competent 
46 


authority. This shall also be a ground for administrative and criminal liability in 
1 
accordance with the provisions of the Real Estate Service Act of the Philippines. 
2 
 
3 
SEC. 31.  Government Agents Delaying the Review, Approval and 
4 
Implementation of the SMV, and Conduct of General Revisions. – Any government 
5 
official or employee who delays, without justifiable cause, the review, approval and 
6 
implementation of the SMVs, the conduct of general revisions, or causes the improper 
7 
use thereof, shall be punished by a fine equivalent to one (1) month to six (6) months 
8 
basic salary of the official or employee, or suspension from the service for a period not 
9 
exceeding one (1) year, or both, at the discretion of the competent authority. 
10 
 
11 
SEC. 32.  Violation of Other Provisions. – Any person, whether natural or 
12 
juridical, who violates any provision of this Act other than those punishable under 
13 
Sections 28, 29, 30, and 31 hereof shall, when warranted, be dealt with under applicable 
14 
existing laws. 
15 
 
16 
SEC. 33. Taxpayers' Remedies in Case of Erroneous Assessments of Real 
17 
Properties. – The provisions of Sections 226 on Local Board of Assessment Appeals 
18 
and 229 on Action by the Local Board of Assessment Appeals of the Local Government 
19 
Code of 1991, as amended, shall apply in all cases of appeal as remedies for the 
20 
taxpayers in the assessment of their properties.  
21 
 
22 
All concerned local governments shall cause the constitution of a fully functioning 
23 
Local Board of Assessment Appeals in their respective jurisdictions, in coordination with 
24 
the Land Registration Authority (LRA). 
25 
 
26 
ARTICLE V 
27 
TRANSITORY PROVISIONS 
28 
 
29 
SEC. 34.  Transitory Guidelines. – LGUs which are in the process of updating 
30 
their SMVs shall, upon the effectivity of this Act, continue with such revisions in 
31 
accordance with Sections 15, 16, 17, and 18 of this Act: Provided, That proper 
32 
notification and coordination with the BLGF shall be undertaken. 
33 
 
34 
In case the SMVs are not yet available or updated, the Commissioner of Internal 
35 
Revenue shall adopt the existing SMVs, zonal values, or the actual price in 
36 
consideration as stated in the real property transaction documents, whichever is higher, 
37 
for purposes of computing any internal revenue tax. 
38 
 
39 
SEC. 35.    Saving Clause. – The zonal values, as determined by the BIR and 
40 
approved by the Secretary of Finance for internal revenue tax purposes, and the SMVs 
41 
prepared by the provincial assessors together with the city assessors, and municipal 
42 
assessors, including the municipal assessor in the Metropolitan Manila Area, that have 
43 
been approved by their respective sanggunians for real property taxation purposes shall 
44 
continue to be in force and effect until repealed, superseded, modified, revised, set 
45 
aside, or replaced by the values provided under the updated SMVs as approved in 
46 


accordance with Sections 15 of this Act, which shall be within two (2) years upon the 
1 
effectivity of this Act. 
2 
 
3 
ARTICLE VI  
4 
FUNDING REQUIREMENTS 
5 
 
6 
SEC. 36.   Budgetary Requirements for the Updating of Schedule of Market 
7 
Values. – Each local sanggunian shall appropriate the necessary funds from locally 
8 
generated revenues, the national tax allotment, or such other sources every fiscal year 
9 
to constitute the Real Property Tax Administration Fund (RPTAF), which shall be 
10 
established and used for the proper implementation of the updating of the SMVs and 
11 
general revision of real property assessments, and the administration of real property 
12 
taxes in all LGUs. 
13 
 
14 
The BLGF shall annually furnish the Department of Budget and Management 
15 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in its review 
16 
of the ensuing year's budget of provinces, highly urbanized cities, independent 
17 
component cities and municipality within the Metropolitan Manila Area, shall ensure that 
18 
sufficient funds are appropriated for the RPTAF: Provided, That failure to provide the 
19 
appropriations required shall render their annual budgets inoperative. 
20 
 
21 
ARTICLE VII  
22 
MISCELLANEOUS PROVISIONS 
23 
 
24 
SEC. 37. Appropriations. – The amount necessary for the implementation of this 
25 
Act shall be included in the annual General Appropriations Act. 
26 
 
27 
SEC. 38. Suppletory Application of Existing Laws. – The provisions of the Local 
28 
Government Code of 1991, as amended, and other laws consistent with this Act shall 
29 
have suppletory effect. 
30 
 
31 
SEC. 39. Implementing Rules and Regulations. – Within six (6) months after the 
32 
effectivity of this Act, the DOF shall, in consultation with concerned government agencies 
33 
and stakeholders, issue the rules and regulations for the effective implementation of this 
34 
Act. 
35 
 
36 
SEC. 40.  Separability Clause. – If any provision of this Act is declared 
37 
unconstitutional or otherwise invalid, the validity of the other provisions shall not be 
38 
affected thereby. 
39 
 
40 
SEC. 41. Repealing Clause. – Sections 212, 214, and 221 of the Local 
41 
Government Code of 1991, as amended are hereby repealed.  
42 
 
43 
The following provisions are hereby amended accordingly: 
44 
 
45 
(a) Section 33, Chapter IV, Title II, Book lV of the Administrative Code of 1987;  
46 


 
1 
(b) Sections 19, 135(a), 138, 201, 218, 220, 472(a), 472(b)(8), and 473(a) of the Local 
2 
Government Code; 
3 
 
4 
(c) Sections 5, 6, and 7 of Republic Act No. 10752, otherwise known as “The Right of 
5 
Way Act"; 
6 
 
7 
(d) Section 9 of Presidential Decree No. 921, Providing for the Administration of Local 
8 
Financial Services in Metropolitan Manila, Creating Local Treasury and Assessment 
9 
Districts Therein, and For Other Purposes; and 
10 
 
11 
(e) Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, as amended, otherwise 
12 
known as the National Internal Revenue Code of 1997, as amended. 
13 
 
14 
All laws, presidential decrees, executive orders, presidential proclamations, rules 
15 
and regulations or parts thereof contrary to or inconsistent with this Act are hereby 
16 
repealed, superseded or modified accordingly. 
17 
 
18 
SEC. 42. Effectivity. – This Act shall take effect fifteen (15) days after its 
19 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
20 
 
21 
Approved, 
22 
 
23