Republic of the Philippines
HOUSE OF REPRESENTATIVES /
Quezon City i

SEVENTEENTH CONGRESS
First Regular Session

Introduced by HONORABLE STRIKE B. REVILLA

EXPLANATORY NOTE

This proposed measure seeks to amend Republic Act No. 7160, with regard to Appraisal
and Assessment of Real Property.

It is common knowledge that Real Property Tax is single major source of income of local
governments.

However, there are several reasons why there is an apparent under collection of real
property taxes:

a. There is no uniform method of appraising real property among local governments;

b. Revision or updating the schedule of fair market values is so infrequent, thus,
resulting in a low tax base even as assets in the market continue to appreciate;

c. The approval of the schedule of fair market values is vested on the Sangguniang
Panlalawigan/Panlungsod. Considering the political nature of the local Sanggunian,
the tendency is to forego revisions in the valuation schedule or to keep the property
value understated,

By this proposal, it is suggested for the creation of Technical Valuation Committee which
is tasked to formulate a uniform method of assessment and appraisal with the end view of
maximizing the potential tax collection from this source.

In view of the foregoing, approval of this bill is eamestly urged.

REP. AS B. REVILLA

2nd District of Cavite


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8880

Introduced by HONORABLE STRIKE B, REVILLA

AN ACT
AMENDING SECTIONS 212 AND 214 OF REPUBLIC ACT 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1, Section 212 of the Local Government Code of 1991 is hereby amended to
read as follo’

SEC. 212. Preparation of Schedule of Fair Market Values.
general revision of property assessment is made pursuant to the provisions of this
Title, [there shall be prepared a schedule of fair market values by the provincial,
city and the municipal assessors of the municipalities within the Metropolitan
Manila Area] A SCHEDULE OF FAIR MARKET VALUES SHALL BE
PREPARED BY A TECHNICAL VALUATION COMMITTEE OF EACH
PROVINCE, CITY OR MUNICIPALITY for the different classes of real
property situated in their respected local government units for enactment by
ordinance of the sanggunian concerned,

THE TECHNICAL VALUATION COMMITTEE SHALL BE
COMPOSED OF THE PROVINCIAL, CITY OR MUNICIPAL ASSESSOR,
PROVINCIAL, CITY OR MUNICIPAL PLANNING AND
DEVELOPMENT OFFICER, A REPRESENTATIVE FROM THE
BUREAU OF INTERNAL REVENUE (BIR), A REPRESENTATIVE
FROM THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF),
AND THE PRIVATE SECTOR. THE REPRESENTATIVE FROM THE
PRIVATE SECTOR MUST BE DIRECTLY INVOLVED IN REAL
ESTATE APPRAISAL.

SECTION 2. Section 214 of the Local Government Code of 1991 is hereby amended to
read as follows:

SEC. 214, Amendment of Schedule of Fair Market Values. - The
[provincial, city or municipal assessor] TECHNICAL VALUATION
COMMITTEE may recommend to the sanggunian concerned amendments to
correct errors in valuation of the schedule of fair market values, The sanggunian
concerned shall, by ordinance act upon the recommendation within ninety (90)
days from receipt thereof.


SECTION 3. Effectivity ~ This Act shall take effect fifteen (15) days following its
publication in two (2) newspapers of general circulation.

Approved,