NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 693
oJ ^‘5r »rtrctjrp
‘22 JUL18 A10:12
RECEIVED BY:
Introduced by SENATOR RAMON BONG RE VILLA, 3R.
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
One of the main issues contributing to the inefficiency of the real estate market 
in the country is the current valuation system that we have. The system has 
tremendously constrained the optimal management and use of our valued land 
resources.
This bill seeks to address the following concerns in order to improve the state 
of our valuation system:
• 
Lack of a uniform valuation standards which should govern the valuation of real 
property in the country;
• 
Lack of a single real property valuation base for the assessment of all real property 
related taxes in the country and for valuing or appraising real property for various 
transactions by all government agencies;
• 
Mixed functions of valuing or appraising of real properties from the and tax policy 
and administering the taxes due thereon;
• 
Lack of a comprehensive and up-to-date electronic database of all real property 
transactions.


In addition, this bill seeks to support the development and professionalization 
of the vaiuation/appraisal practice in the country pursuant to Republic Act No. 9646; 
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 making it abreast with global developments; 
and ensure transparency in real property transactions to protect consumers and 
develop confidence in the work of appraisers and assessors.
In view of the foregoing, passage of this bill is earnestly sought.
RAMOiyBONG RE VILLA, 3R.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
'Wirf o( tljc ^fcrctni7>
72 JUL18 AlO :12
SENATE 
s. No. G93
’■ £ 3 BV;__LQ
Introduced by SENATOR RAMON BONG REVILLA, 3R.
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:
1 
Section. 1. Short Tide. - This Act shail be known as the "Rea!Property Valuation
2 
and Assessment Reform Act of2022."
3
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ARTICLE I
5 
DECLARATION OF STATE POLICY AND OBJECTIVES,
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AND DEFINITION OF TERMS
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
9 
nationally consistent real property valuation based on internationally accepted
10 
valuation standards, concepts, principles, and practices. Towards this end, the State
11 
shall:
12 
(a) Establish and maintain standards to govern the valuation of real property in
13 
the country;
14 
(b) Adopt market value as the single real property valuation base for the
15 
assessment of real property-related 
taxes 
In the country, 
and for the
16 
valuation of real property 
for various transactions 
by all government
17 
agencies;


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(c) Promote the fiscal autonomy of local government units (LCDs) to provide 
basic services to their constituency by enhancing their capacity to generate 
iocai revenues from real property;
(d) Separate the function of valuation or appraisal of real properties from the 
functions of tax policy formulation and administration of the taxes due 
thereon;
(e) Support the development and professionalization of the valuation practice 
in the country pursuant to Republic Act; No. 9646, otherwise known as the 
"Real Estate Service Act of the Philippines".
(f) Provide a comprehensive and up-to-date electronic database of all real 
property transactions;
(g) Support the development of an information database on valuation through 
continuing research and monitoring of new developments in the discipline 
to upgrade the country's valuation system to be at par with global 
standards; and
(h) Ensure transparency in real property transactions to protect public interests, 
and develop confidence in the valuation system.
Sec. 3. Definition of Terms. - As used in this Act:
(a) Appraiser, also known as valuer, refers to a person who conducts valuation; 
specifically, one who possesses the necessary qualifications, license, ability, 
and experience to execute or direct the valuation of real property;
(b) Assessed Value, also known as taxable value, refers to the market value of 
the property multiplied by the corresponding assessment level;
(c) Assessment refers to the act or process of determining the value of a 
property, or proportion thereof subject to taxation, including the discovery, 
listing, classification, and appraisal of properties;
(d) Assessment Level refers to the percentage applied to the market value to 
determine the taxable value of the property based on property 
classifications as prescribed in Republic Act No. 7160, otherwise known as 
the "Local Government Code of 1991", as amended;


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(e) Assessor refers to an official in the LGU who is a licensed appraiser, and 
performs appraisal and assessment of real properties, including plant, 
machinery and equipment, essentially for taxation and other purposes.
(f) Building refers to a man-made structure permanently attached to land for 
residential, commercial, industrial, recreational or other purposes;
(g) Electronic database refers to an organized collection of data, or information, 
that is stored in computer-readable form;
(h) Improvement refers to a valuable addition made to a property or an 
amelioration in its condition, amounting to more than a mere repair or 
replacement of parts, involving capital expenditures and labor intended to 
enhance its value, beauty or utility or to adapt it for new or further purposes;
(i) International Valuation Standards (IVS) refer to standards that provide 
property valuers with a framework composed of recognized principles and 
concepts as well as internationally accepted definitions, best practices, and 
reporting systems;
0) Land refers to one of the major factors of production which is supplied by 
nature without the aid of man. Land may include not only the earth's 
surface, both land and water, but also anything that is attached to the 
earth's surface including all natural resources in their original state, such as 
minerals deposits, wildlife, and timber;
(k) Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances or apparatus which may 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;
(l) 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


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seller in an arm's length transaction which is a transaction between 
independent unrelated parties involving no irregularity after proper 
marketing wherein the parties had each acted knowledgeably, prudently, 
and without compulsion;
{m)Private appraisal sector refers to licensed non-governmental real estate 
service practitioners who have been active in the practice of real estate 
appraisal for at least five (5) years;
(n) Real estate xeiexs 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;
(o) Real property refers to all the rights, interests and benefits related to the 
ownership of real estate. It is a legal concept distinct from real estate, which 
is a physical asset.
(p) Schedule of Market Values, hereinafter referred to as SMV, refers to a table 
of base unit market values for all kinds of real properties, except machinery, 
within a local government unit (LGU) prepared by assessors pursuant to 
existing laws, rules and regulations;
(q) Special purpose property refers to a property that is designed, constructed 
and developed for a specific use or purpose. By its very nature, this type of 
property is rarely offered for sale in the open market except as part of a 
going concern. Due to the special design and function, conversion of a 
special purpose property to other types of development or application is 
generally not economically feasible; and
(r) 
Valuation, also known as appraisal, refers to the systematic, analytic and 
logical analysis of the recording of property facts, circumstances, 
investments and other relevant data resulting in a supportable estimate or 
professional opinion of the value of a property as of a specific date and for 
a specific purpose;


1 
ARTICLE II
2 
STRENGTHENING THE BUREAU OF LOCAL GOVERNMENT OF FINANCE
3 
(BLGF)
4 
Chapter I
5 
BLGF Central Operations
6 
Sec. 4. Powers and Functions of the Bureau of Local Government Finance 
1 (BLGF). - The BLGF of the Department of Finance (DOF), shall lead and manage the
8 
implementation of the provisions of this Act. It shall have the following powers and
9 
functions:
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(a) Develop, adopt, and maintain valuation standards consistent with generally
11 
accepted international valuation standards, regulations and specifications
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for real property appraisal used for taxation and other purposes, and ensure
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compliance therewith by LGUs and other concerned parties;
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(b)In coordination with the Bureau of Internal Revenue (BIR), review and
15 
ensure that the Schedule of Market Values (SMVs) as prepared by the
16 
provincial assessors together with municipal assessors, and city assessors,
17 
including the municipal assessor in Metropolitan Manila Area, is compliant
18 
with real property valuation policies and standards, and recommend its
19 
approval to the Secretary of Finance for local and national taxation, and for
20 
other purposes.;
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(c) Provide technical assistance on real property appraisal matters to
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government agencies and instrumentalities, and coordinate or conduct the
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valuation and appraisal of special purpose properties, when requested;
24 
(d) Provide leadership and policy direction to LGUs on real property valuation
25 
and appraisal for taxation and other purposes, including the development
26 
and maintenance of valuation standards, the regulation of valuation
27 
activities and other related matters, and the promotion of valuation training
28 
and seminars;
29 
(e) Maintain a roster of licensed local government appraisers and assessors in
30 
consultation and coordination with the Professional Regulatory Board of
31 
Real Estate 
Service (PRBRES) under the Professional Regulation
32 
Commission;


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(f) Develop and maintain a comprehensive and up-to-date electronic database
2 
of real property transactions and prices of materials for buildings,
3 
machinery, and other structures;
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(g) Conduct continuing study and research on valuation, and maintain
5 
information on current global and country trends and developments in real
6 
property valuation;
7 
(h) Formulate and provide for uniform procedures on the different transactions
8 
in the assessor's office, including the transfer, annotation and issuance of
9 
tax declarations;
10 
(i) Determine, fix, and collect reasonable amounts to be charged as
11 
administration fees, fines, and penalties relative to the implementation of
12 
this Act; and
13 
(j) Perform such other functions as are necessary, proper, and Incidental to
14 
implement the provisions of this Act.
15 
Sec. 5. Establishment of the Rea! Property Valuation Service. - To achieve the
16 
policy and objectives declared in this Act, the Real Property Valuation Service,
17 
hereinafter referred to as the RPVS, within the BLGF with counterpart personnel in the
18 
BLGF Regional Offices is hereby established.
19 
Sec. 6. The BLGF Executive Director. - The BLGF Executive Director shall be
20 
responsible for the efficient and effective day-day performance of the responsibilities
21 
set forth in this Act, and shall be responsible for the overall internal management and
22 
governance of the RPVS.
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Sec. 7. Creation of Central Consultative Committee. -
24 
(a) A Central Consultative Committee shall be created and shall serve as the
25 
consultative forum on matters pertaining to the setting, adoption and
26 
maintenance of the valuation standards and other related concerns on real
27 
property valuation
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(b) It shall be chaired by the BLGF Executive Director and shall be composed
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of a representative each from the:
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1. Bureau of Internal Revenue (BIR);
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2. Department of Environment and Natural Resources (DENR);
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3. Bangko Sentral ng Pilipinas (BSP);


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4. National organization of government assessors;
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5. National organization of appraisers in national government agencies;
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and
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6. Private appraisal sector.
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(c) The representatives from the BIR, the DENR and the BSP must be
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performing valuation-related functions. The national organization of
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government assessors, and the private appraisal sector shall be represented
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by their respective heads of organizations.
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(d) The Chairperson and members of the Committee shall not receive additional
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salary for the performance of their functions. Members of the consultative
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committee who are not incumbent government officials or employees shall
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be entitled to honoraria, pursuant to existing laws and regulations.
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(e) The Committee shall meet at the initiation of the Chairperson at least once
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every semester and shall have as many meetings as the Chairperson may
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deem necessary for the adoption of valuation standards. The Chairperson
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may invite resource persons on specific issues concerning real property
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valuation.
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Chapter 2
19 
BLGF Regional Operations
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Sec. 8. Role of the BLGF Regional Offices. - The BLGF Regional Offices, through
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the Regional Director, shall be responsible for all matters relating to valuation and the
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supervision of the SMVs in the region. They shall:
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(a) Implement policies, plans, programs, rules and regulations on real property
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valuation of local 
government units In the region;
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(b) Review, in coordination with the BIR, and endorse to the RPVS the proposed
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SMV's prepared by the assessors of the local government units in the region;
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(c) Provide for economical, efficient and effective valuation services in the
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region;
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(d) Coordinate and consult with other government departments, bureaus and
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agencies within the region dealing with real property valuation;


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(e) Adopt and maintain a comprehensive and up-to-date electronic database of
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all regional real property-related transactions, and have custody of all
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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.
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Sec. 9. The Regional Consultative Committee. -
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(a) There shall be a Regional Consultative Committee that shall be chaired by
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the BLGF Regional Director and shall be composed of a representative each
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from the:
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1. BIR - Regional Office;
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2. DENR - Regional Office;
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3. Head of Regional organization of government assessors;
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4. Head of Regional organization of national government appraisers;
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5. Head of the private appraisal sector within the region; and
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6. Head of the bankers association within the region.
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(b)The members of the Regional Consultative Committee must be performing
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valuation- related functions in their respective agencies or sector.
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(c) The Committee shall meet at the initiation of the BLGF Regional Director at
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least once every quarter and shall have as many meetings as the BLGF
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Regional Director may deem necessary for the performance of its function.
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The BLGF Regional Director may invite resource persons on specific issues
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concerning real property valuation.
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Sec. 10. Functions of the Regional Consultative Committee. - The Regional
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Consultative Committee shall serve as a consultative forum in the region for discussion
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on developments in the local real property market; concerns of taxpayers, civil society,
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and other stakeholders; outcome of real property tax compliance reporting In the
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region; level of complaints and appeals; LGU training in the region; appraisal and
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assessment concerns in general; and other matters as may be determined by the
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Committee.
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ARTICLE III
2 
VALUATION AND APPRAISAL OF REAL PROPERTIES
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Chapter 1
4 
Valuation Standards and Market Values
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Sec. 11. Development of Valuation Standards. - Notwithstanding the provisions
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of existing laws to the contrary, the BLGF shall develop, adopt, and maintain,
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implement uniform valuation standards which shall be used by all appraisers and
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assessors in the LGUs and other concerned parties in the appraisal or valuation of
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lands, buildings, machinery and other real properties for taxation and other purposes.
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The valuation standards shall conform with the generally accepted international
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valuation standards and principles.
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Sec. 12. Valuation and Appraisal of Rea! Property. - For valuation purposes, all
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real properties, whether taxable or exempt, shall be valued or appraised based on
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prevailing market values In the locality where the property is situated, in conformity
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with the valuation standards adopted under this Act. The Secretary of Finance shall
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promulgate the rules and regulations for the valuation and appraisal of real property
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pursuant to the provisions of this Act.
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For real properties intended for low-cost or socialized housing, lands included
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in the government's agrarian reform program and other programs of the government
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imbued with social policy objectives, the provisions of existing pertinent laws shall be
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applied after determination of the prevailing market values of these properties in
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accordance with generally accepted international valuation standards.
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Sec. 13. Preparation of the Schedule of Market Values. - The provincial
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assessors together with municipal assessors, and city assessors, including the
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municipal assessor in Metropolitan Manila Area, shall prepare the SMV for the different
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classes of real property situated within their respective LGUs, pursuant to the valuation
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standards, rules, regulations and other specifications set by the DOF. They shall
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complete the preparation/updating of the SMV v/ithin six (6) months or one hundred
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eighty (180) days from January to June following the announcement from the BLGF
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that they are due to revise their SMV which will be issued on the last week of December
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prior to the SMV preparation.


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Upon completion of the proposed SMV, the same shall be submitted by the
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assessors to the BLGF Regional Office who shall review the proposal in coordination
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with the BIR Regional Office, within seventy-five (75) days from receipt thereof to
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ensure that the SMV complies with all the requirements. The BLGF/BIR regional offices
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shall hold at least one public consultation before they endorse the SMV to the
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Secretary of Finance.
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Sec. 14. Approval of the Schedule of Market Values. - The Secretary of Finance
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shall approve the SMV within thirty (30) days from receipt of the joint endorsement of
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the BLGF Executive Director and the Commissioner of Interna! Revenue; otherwise,
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said schedule shall be deemed approved.
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The approved SMV shall be published by the DOF in the Official Gazette or in
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at least two (2) newspapers of general circulation. The SMV shall take effect after
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fifteen (15) days after its publication.
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The DOF shall post in its official website the approved SMV and furnish the
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same to the concerned LGU, through the BLGF, and the BIR, with copies thereof.
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Sec. 15. Setting Assessment Levels and Tax Rates. - The approved SMV shall
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be transmitted to the concerned assessor who shall confer with the local chief
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executive regarding the approved SMV. The assessor, in coordination with the local
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treasurer, shall estimate the revenue and tax impact of the new SMV as against the
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existing assessment levels and tax rates, calculate the expected revenue and level of
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tax burden that the taxpayers will bear based on the new SMV and recommend
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amendments on the assessment levels and/or tax rates. The assessor shall prepare
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a minimum of at least three (3) estimates of the revenue and tax Impact based on
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different scenarios and submit the revenue/tax impact report to the local chief
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executive and the Sanggunlan.
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The local chief executive shall transmit the approved SMV, together with the
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revenue/tax Impact report, within fifteen (15) days from receipt of the same to the
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Sanggunian for the enactment of an ordinance setting the appropriate assessment
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levels and tax rates. During the Sanggunian's deliberations prior to the enactment of
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the tax ordinance, it may call upon the assessor to provide technical assistance and
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calculate the revenue and tax impact of additional options In order to arrive at a
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desired level of revenue and tax burden that the Sanggunian will adopt. The concerned
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Sanggunian shall enact the tax ordinance upon conduct of public hearings and proper
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consultations within sixty (60) days from receipt thereof; otherwise, the existing
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ordinance on assessment levels and tax rates shall remain in force and effect.
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Upon the enactment by the Sanggunian of an ordinance for the assessment
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levels and tax rates, the local chief executive shall act within ten (10) days, in the case
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of cities and the municipality in the Metropolitan Manila Area, or within fifteen (15)
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days, in case of provinces, to approve the same. Failure of the concerned local chief
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executive to act on the ordinance within the prescribed period shall render the same
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approved.
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Sec. 16. Publication of Assessment Levels and Tax Rates. - The approved
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ordinance for the assessment levels and tax rates shall be published by the concerned
12 
LGU in a newspaper of local circulation once a week for two (2) consecutive weeks:
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Provided, however, that in provinces, cities and municipalities where there are no
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newspapers of local circulation, the same shall be posted in the provincial capitol,
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including all concerned municipal halls, and city halls and in two (2) other conspicuous
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public places therein.
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Sec. 17. Use of Schedule of Market Values. - The approved SMV shall be used
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as basis for the determination of real property-related taxes of national and local
19 
governments, as follows:
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(a) For purposes of real property taxation, the approved SMV shall in no case
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be adopted by the LGU less than six (6) months prior to the effectivity of
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the new assessments to ensure the proper cleansing and updating of
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records, and notification of property owners in the conduct of general
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revision of assessment and property classification.
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(b) In computing any internal revenue tax, the BIR Commissioner shall use the
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SMV, or the actual gross selling price in consideration, as stated in real
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property transaction documents, whichever is higher.
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(c) For purposes of the local transfer tax, the LGU may use the approved SMV
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upon its effectivity or the total consideration in the transfer, whichever is
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higher. For other purposes such as the tax on sand and gravel, community
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tax, fees and charges, or as benchmark for real property appraisal of other
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government agencies, the approved SMV may be used upon its effectivity.
11


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Notwithstanding the provisions of existing iaws to the contrary, the failure to
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pass an ordinance providing for revised assessment levels and/or tax rates after the
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approval of the SMV and to conduct a general revision of assessment and property
4 
classifications, shall render an LGU ineligible for any conditional or performance-based
5 
grants or to contract any form of credit financing from the national government.
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Sec. 18. Updating of the Schedule of Market Values. - All provincial assessors
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together with the municipal assessors, and the dft/ assessors, including the municipal
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assessor in Metropolitan Manila Area, shall update their respective SMVs within two
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(2) years from the effectivity of this Act. Thereafter, they shall update the SMVs and
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conduct a general revision of property assessments and classifications once every
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three (3) years from the date of the last revision. The BLGF shall prepare the schedule
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for the updating of the SMVs in all provinces, cities and municipalities within the
13 
Metropolitan Manila Area.
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In case of any significant change in the market where the property is located
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after the said SMVs have been approved and prior to the next revision, or v\/here
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correction of errors and inequalities in any SMV is deemed necessary or upon the
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directive of the Secretary of Finance, the provincial assessors shall, together with the
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municipal assessors, and the city assessors, including the municipal assessor in
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Metropolitan Manila Area, recommend revisions to their existing SMV to the BLGF
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Regional Office, through the Regional Director of the BLGF having jurisdiction over the
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LGU concerned.
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Such revisions shall be subject to review by the concerned BLGF Regional Office
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in coordination with the BIR Regional Office, and complete the review and submit their
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recommendations to the BLGF Executive Director, in accordance with Section 14
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hereof.
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Sec. 19. Conduct of Capacity Building Interventions. - The BLGF shall, in
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coordination with the Philippine Tax Academy of the DOF, develop and conduct the
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necessary training for all local assessors, local officials and staff, and other concerned
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BIR personnel on the preparation of the SMV in accordance with generally accepted
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international valuation standards, concepts, principles and practices; conduct of SMV
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tax and revenue impact studies; preparation of compliance reports, and other subject
32 
areas.
12


1 
Chapter 2
2 
Development and Maintenance of Real Property Market Database
3 
Sec. 20. Development of Rea! Property Information System. - The BLGF shall
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develop and maintain an up-to-date electronic database of the sale, exchange, lease,
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mortgage, donation and all other real property transactions and declarations in the
6 
country and on the cost of construction or renovation of buildings and other structures,
7 
and on prices of machinery.
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For this purpose, the BLGF shall require the mandatory submission of necessary
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documents from the concerned officials or employees of national government offices
10 
or instrumentalities, LGUs and the private sector; Provided that in the case of
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government agencies and instrumentalities, the mandatory submission of documents
1? 
and information shall be subject to the prohibition of disclosure of certain information
13 
under the Data Privacy Act and other existing laws. The updated database shall be
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made available to the LGUs, national government agencies and the private sector:
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Provided, that the Commissioner of Internal Revenue or his duly authorized
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representative shall be allowed access to the database without need of prior approval:
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Provided, Finally, that non-submission of the required documents to the BLGF will be
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subject to the provisions of Section 28 of this Act.
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To further achieve these objectives and ensure efficient real property tax
20 
administration, all provinces, cities and municipalities shall automate their operations,
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adopt tax mapping technology, maintain software-enabled valuation systems,
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undertake regular data cleansing and computerize records management. The National
23 
Government thru the Department of Information and Communications Technology
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shall provide the appropriate equipment and connectivity, information and
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communications technology platform, training and capability building to ensure the
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compliance with this Section. The BLGF shall establish mechanisms for the electronic
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submission of the required documents in accordance with the succeeding sections of
28 
Chapter 2 this Act.
29 
Sec. 21. Duty of Register of Deeds to Supply Assessors with Real Property
30 
Transactions Data. - The Register of Deeds shall prepare and submit to the provincial
31 
assessors, together with the municipal assessors, and city assessors, including the
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municipal assessor in Metropolitan Manila Area, an abstract of the entire registry every
13


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three (3) months and copies of all contracts selling, transferring or otherwise
2 
converting, leasing, or mortgaging real property registered every end of the month.
3 
The abstract shall include brief but sufficient description of the real properties entered
4 
therein, their present owners, and the dates of their most recent transfer or alienation
5 
accompanied by copies of corresponding deeds of sale, donation or partition or other
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forms of alienation.
7 
Sec. 22. Duty of Official Issuing Building Permits or Certificates of Registration
8 
of Machinery to Transmit Copy of the Assessor. - Any public official or employee who
9 
may now or hereafter be required by law or regulation to issue to any person a permit
10 
for the construction, addition, repair or renovation of a building, or permanent
11 
improvement on land, or a certificate of registration for any machinery, including
12 
machines, mechanical contrivances and apparatus attached or affixed on land or to
13 
another real property, shall transmit a copy of such permit or certification within thirty
14 
(30) days of its issuance to the assessor of the province, city or municipality where
15 
the property is situated.
16 
Sec. 23. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor. - It
17 
shall be the duty of all geodetic engineers, public or private, to furnish free of charge,
18 
the assessor of the province, city or municipality where the land Is located, a copy of
19 
the blue or white print of each of all approved original subdivision plans or maps of
20 
surveys, duly signed by a Senior Geodetic Engineer, executed by them every end of
21 
the month form receipt of such approved plans from the Land Management Bureau
22 
(LMB), the Land Registration Authority (LRA), or the Housing and Land Use Regulatory
23 
Board (HLURB), as the case may be.
24 
Sec. 24. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial,
25 
City, or Municipal Assessor. - It shall be the duty of the Registrar of Deeds and notaries
26 
public to furnish, free of charge, the provincial, city or municipal assessor with copies
27 
of all contracts selling, transferring, or otherwise conveying, leasing, or mortgaging
28 
real property received by, or acknowledged before them within such periods as the
29 
BLGF shall prescribe.
30 
Sec. 25. Duty of Assessors to Transmit Documents to the BLGF. - It shall be
31 
the duty of the assessors to transmit to the concerned BLGF Regional Office all real
32 
property transactions data from the Register of Deeds, and the names of the official
14


1 
issuing the building permit those of the geodetic engineers within one (1) month after
2 
the receipt of such data. The BLGF's Regional Office shall record, process and make a
3 
summary report of the real property data and submit the same to the BLGF Central
4 
office within one (1) month from receipt of such data.
5 
Chapter 3
6 
Appointment and Qualifications of Assessors
7 
Sec. 26. Appointment of Assessors. ~ The local chief executive shall appoint the
8 
provincial, city and municipality assessors and assistant assessors, as the case may
9 
be, in accordance with civil service law, rules and regulations and the following
10 
guidelines:
11 
(a) In the case of provincial and assistant provincial assessors and city and
12 
assistant city assessors, the appointee shall be chosen from the list of at
13 
least three (3) ranking eligible candidates within the region;
14 
(b) In the case of city and assistant city assessors, and the municipal and
15 
assistant municipal assessors in Metropolitan Manila Area, the appointee
16 
shall be chosen from the list of at least three (3) ranking eligible candidates
17 
within the region; and
18 
(c) In the case of municipal and assistant municipal assessors, the appointee
19 
shall be chosen from the list of at least three (3) ranking eligible candidates
20 
within the province.
21 
The assessors shall be under the technical supervision of the BLGF, primarily
22 
through a system of compliance reporting and of capacity-building programs through
23 
education and training.
24 
Sec. 27. Qualification of Local Government Assessors. ~ No person shall be
25 
appointed assessor or assistant assessor unless such a citizen of the Philippines, a
26 
resident of the region for a provincial or city assessor/assistant assessor, and of the
27 
province for a municipal assessor/assistant assessor, a registered and licensed
28 
appraiser, of good moral character, and must not have been convicted of any crime
29 
involving moral turpitude. The appointee must have experience in real property
30 
valuation or assessment work or in any suitable field, either in private or public
31 
practice, for at least five (5) years in the case of the provincial or city assessor, and
32 
three (3) years in the case of the municipal assessor. Once appointed, all assessors
15


1 
must comply with the requirements of the Professional Regulatory Board of Real Estate
2 
Service (PRBRES) for the regular updating of their licenses; otherwise, they shall be
3 
subject to certain sanctions as may be determined by the BLGF/DOF.
4 
ARTICLE IV
5 
PENAL PROVISIONS
6 
Sec. 28. Failure to Comply with the Required Submission of Documents. - Any
7 
government official or employee who fails without justifiable reason to provide or
8 
furnish data or information required pursuant to Sections 20, 21, 22, 23 and 24 of this
9 
Act, shall be punished by a fine equivalent to the officiafs or employee's six (6) months
10 
basic salary or suspension from the service for a period not exceeding one (1) year,
11 
or both, at the discretion of the competent authority.
12 
Sec. 29. Failure to Comply with the Valuation Standards. - An assessor who,
13 
for unjustifiable reasons, fails to comply with the valuation standards developed and
14 
adopted pursuant to this Act, or deliberately conceals any deviations or departures
15 
from such standards in the valuation and appraisal of real property, shall be punished
16 
by a fine equivalent to the officiars or employee's six (6) months basic salary or
17 
suspension from the service for a period not exceeding one (1) year, or both, at the
18 
discretion of the competent authority.
19 
Sec. 30. Failure to Prepare Schedule of Market Values. - An assessor who, for
20 
unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the SMVs
21 
within the period set forth in this Act shall be meted a fine equivalent to the official's
22 
or employee's basic salary for a period of one (1) month to six (6) months, or by
23 
suspension from the service for not more than one (1) year, or both, at the discretion
24 
of the court. This shall also be a ground for administrative and criminal liability in
25 
accordance with the provisions of Republic Act No. 9646, otherwise known as the
26 
"Real Estate Service Act of the Philippines".
27 
Sec. 31. Government Agents Delaying the Review^ Approval and
28 
Implementation of SMVf and Conduct of General Revisions. - Any government official
29 
who delays, without justifiable cause, the review, approval and implementation of the
30 
SMV, the conduct of general revisions, or cause the improper use thereof shall be
31 
punished by a fine equivalent to the official's or employee's six (6) months basic salary
16


1 
or suspension from the service for a period not exceeding one (1) year, or both, at
2 
the discretion of the court.
3 
Sec. 32. Violations of Other Provisions. - Any person, whether natural or
4 
juridical, who violates any provision of this Act other than those punishable under
5 
Sections 28, 29, 30 hereof shall, when warranted, be dealt with under applicable
6 
existing laws.
7 
Sec. 33. Taxpayers' Remedies in Case of Erroneous Assessments of Real
8 
Properties. - The provisions of Sections 226 on Local Board of Assessment Appeals
9 
and 229 on Action by the Local Board of Assessment Appeals of Republic Act No. 7160,
10 
as amended, shall apply in all cases of appeal as remedies for the taxpayers in the
11 
assessment of their properties.
12 
All concerned local governments shall cause the constitution of a fully
13 
functioning Local Board of Assessment Appeals in their respective jurisdictions in
14 
coordination with the Land Registration Authority.
15 
ARTICLE V
16 
TRANSITORY PROVISIONS
17 
Sec. 34. Transitory Guidelines. - (a) LGUs v/hich are in the process of updating
18 
their SMVs, upon the effectivity of this Act, shall continue with such revisions In
19 
accordance with Section 16 of this Act: Provided, That proper notification and
20 
coordination with the BLGF shall be undertaken.
21 
In case the SMV is not yet available or updated, the BIR Commissioner shall
22 
adopt the existing SMV, zonal values or the actual price in consideration as stated in
23 
real property transaction documents, whichever is higher, for purposes of computing
24 
any internal revenue tax.
25 
Sec. 35. Saving Clause. - The zonal values, as determined by the BIR and
26 
approved by the Secretary of Finance for internal revenue tax purposes, and the SMVs
27 
prepared by the provincial assessors together with the municipal assessors, and the
28 
city assessors. Including the municipal assessor in Metropolitan Manila Area, that have
29 
been approved by their respective Sanggunians for real property taxation purposes
30 
shall continue to be In force and effect until repealed, superseded, modified, revised,
31 
set aside, or replaced by the values provided under the updated SMVs as approved in
17


1 
accordance with Section 15 of this Act, which shall be within tv'/o (2) years upon the
2 
effectivity of this Act.
3 
ARTICLE VI
4 
FUNDING REQUIREMENTS
5 
Sec, 36. Budgetary Requirements for the Updating of Scheduie of Market
6 
Vaiues. - Each local Sanggunian shall appropriate the necessary funds from locally
7 
generated revenues, the Internal Revenue Allotment (IRA) or such other sources every
8 
fiscal year. The accumulated amount so appropriated shall be known as the Real
9 
Property Tax Administration Fund (RPTAF) which shall be used for the proper
10 
implementation of the updating of the SMVs and general revision of real property
11 
assessments, and the administration of real property taxes in all LGUs.
12 
The BLGF shall annually furnish the Deparlment of Budget and Management
13 
(DBM) with a list of LGUs whose SMVs are due for updating. The DBM, in their review
14 
of the ensuing year budget of provinces, higiily urbanized cities, independent
15 
component cities and municipalities within the Metropolitan Manila Area, shall ensure
16 
that sufficient funds have been budgeted to comply with the requirements of this Act:
17 
Provided, that failure to provide the appropriations herein required shall render their
18 
annual budgets inoperative.
19 
ARTICLE VII
20 
MISCELLANEOUS PROVISIONS
21 
Sec. 37. Appropriations. - The amount necessary for the implementation of this
22 
Act shall be Included in the annual General Appropriations Act.
23 
Sec. 38, Impiementing Rules and Regulations (IRR). - Within six (6) months
24 
after the effectivity of this Act, the DOF, in consultation with concerned parties, shall
25 
issue the IRR for the effective implementation of this Act.
26 
Sec. 39. Suppietory Application of Existing Laws. - The provisions of Republic
27 
Act No. 7160, otherwise known as the "Local Government Code of 1991", and other
28 
laws consistent with this Act shall have suppietory effect.
29 
Sec. 40. Repealing Clause. -
30 
(a) Sections 188, 199(o), 201, 202, 209 (a), 212, 214, 219, 220, 472 (a)
31 
paragraph 1, 472(b)(8), and 473(a) paragraph 1 and 518 of Republic Act
18


1 
No. 7160, otherwise known as the "Local Government Code of 1991", are
2 
hereby repealed;
3 
(b) Section 3 (n) of Presidential Decree No. 464 of 1974 Is hereby repealed;
4 
(c) Section 6 of Republic Act No. 10752, otherwise known as the "The Right-
5 
of-Way Act" is hereby repealed;
6 
(d) Section 4 (a) and (b) of Republic Act No. 8974 are hereby repealed;
7 
(e) Section 9 of Presidential Decree No. 921 on the administration of local
8 
financial services In Metropolitan Manila and creating Local Treasure and
9 
Assessment Districts, Is hereby repealed;
10 
(f) Sections 19, 135 (a), 138, 198(a), 199(o), 218 and 224(a) of Republic Act
11 
No. 7160, otherwise known as the "Local Government Code of 1991", are
12 
also amended or modified accordingly;
13 
(g) Likewise, Sections 6(E), 24(D), 27(D)(5), 88(B) and 102 of Republic Act No.
14 
8424, otherwise known as the "Tax Reform Act of 1997", are 
likewise
15 
amended or modified accordingly;
16 
(h) Section 4(h) and Section 9 of Presidential Decree 538 on the power of
17 
Philippine Veterans Investment Development 
Corporation Industrial
18 
Authority to collect real property tax are likewise amended or modified
19 
accordingly; and
20 
(i) All laws, presidential decrees, executive orders, presidential proclamations,
21 
rules and regulations or parts thereof contrary to or inconsistent with this
22 
Act are hereby repealed, superseded or modified accordingly.
23 
Sec. 41. Separability Clause. - If any section or provision of this Act shall be
24 
declared unconstitutional or invalid, other sections or provisions not affected thereby
25 
shall continue to be in full force and effect
26 
Sec. 42. Effectivity. - This Act shall take effect fifteen (15) days following its
27 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,
19