SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 
1930 
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Introduced by SENATOR JOSEPH VICTOR G, EJERCITO 
EXPLANATORY NOTE 
Under the Local Government Code of 1991, the Local Government 
Units are given the power to create their own revenue sources with its 
characteristic 
of 
independence 
from 
the 
central 
government. 
Nevertheless, the national government has the obligation to promote the 
fiscal autonomy of local governments to provide basic services to their 
constituency; one is by enhancing their capacity to generate local 
revenues from real property. 
Real property is the country's most important resource and biggest 
financial asset. A World Bank study indicated that 50%-75% of national 
wealth is contained in land. Therefore, real property has the largest 
potential contribution to national income for funding economic and 
social developments. However, due to the inhibiting factors, land and real 
property sectors only contribute a meager 6.6% to the gross national 
product (GNP) for the past years. 
The challenges that prevent full appreciation of the benefits from 
real property are: (a) outdated real property values; (b) multiple valuation 
systems; and (c) chronic inadequacies in tax administration such as lack 
of assessment tools and absence of technically qualified personnel among 
others. 
Through a strengthened Bureau of Local Government Finance, 
there shall be institutionalized reforms to adopt and develop generally 
accepted valuation standards, regulations and specifications for real 
property appraisal used for tax and other purposes. The establishment of 
Real Property Valuation Service (RPVS) ensures the completion of 
carrying out the policies and objectives of this measure. This measure 
also provides the Local Government Units with technical assistances and 
trainings among others to assure the qualification of local assessors and 
appraisers and separating the technical function of valuation from the 
political function of taxation by transferring the approval of Schedule of 
Market Values (SMVs) from the Sanggunian to the national valuation 
authority. Finally, a national database of real property transactions is 
maintained to ensure reasonable valuation. 
In view of the foregoing, the immediate passage of this bill is 
earnestly sought. 
" 
() (,=. " 
JOSEPH VIC':r-JR G, EJERCITO 


SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
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First Regular Session 
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'13 
NOV 18 
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SENATE 
Senate Bill No. 
1930 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
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 and Assessment Reform Act of 2013". 
ARTICLE I 
DECLARATION OF STATE POLICY AND OBJECTIVES, 
AND DEFINITION OF TERMS 
SECTION 2. Declaration of Policy and Objectives. - It is the policy 
of the State to promote the development and maintenance of a just, 
equitable, impartial and nationally consistent real property valuation 
based on internationally accepted valuation standards, concepts, 
principles and practices. Towards this end, the State shall: 
(a) Promote the fiscal autonomy of local governments to provide basic 
services to their constituency by enhancing their capacity to generate 
local revenues from real property; 
(b) Establish and maintain valuation standards to govern the valuation of 
real property in the country; 
(c) Adopt market value as the single real property valuation base for the 
assessment of real property-related taxes in the country, and for valuing 
or appraising real property for various transactions by all government 
agencies; 
(d) Separate the function of valuing or appraising of real properties from 
the functions of tax policy and administering the taxes due thereon; 
(e) Support the development and professionalization of the valuation and 
appraisal 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 a "body of knowledge" on valuation by 
continuing research and monitoring of new developments in the 
valuation discipline for upgrading the country's valuation and keeping it 
abreast with global developments; and 
(h) Ensure transparency in real property transactions to protect the 
public and develop confidence in the work of appraisers and assessors. 
SECTION 3. Definition of Terms. - As used in this Act, the following 
terms shall mean: 
(a) Appraiser refers to a natural person who conducts valuation and 
appraisal; specifically, one who possesses the necessary qualifications, 
license, ability and experience to execute or direct the valuation and 
appraisal of real property; also known as valuer. 
(b) Assessor refers to an official in the local government unit (LGU) who 
is a licensed appraiser, who performs appraisal and assessment of real 
properties including plant, machinery and equipment, essentially for 
taxation and other purposes. This definition also includes assistant 
assessors. . 
(c) Building refers to a man-made structure permanently attached to 
land for residential, commercial, industrial, recreational or other 
purposes. 
(d) Improvements refer to a valuable addition made to a property or an 
amelioration in its condition, amounting to more than a mere repair or 
replacement of parts involving capital expenditures and labor, which is 
intended to enhance its value, beauty or utility or to adapt it for new or 
further purposes. 
(e) Land refers to one of the major factors of production consisting 
sometimes of a material economic good, which is supplied by nature 
without the aid of man. Land may include not only the earth surface, 
both land and water, but also anything that is attached to the earth's 
surface. Thus, all natural resources in their original state, such as 
mineral deposits, wildlife, timber and fish, are land within the technical 
meaning of the term; so also are sources of energy, outside of man 
himself, such as water, coal deposits and the natural fertility of the soil. 
(f) Machinery refers to machines, equipment, mechanical contrivances, 
instruments, appliances or apparatus which mayor may not be 
attached, permanently or temporarily, to the real property. It includes 
the physical facilities for production, the installations and appurtenant 
service 
facilities, 
those 
which 
are 
mobile, self-powered 
or self-
propelled and those not permanently attached to the real property which 
are actually, directly and exclusively used to meet the needs of the 
particular industry, business or activity and which by their very nature 
and purpose are designed for, or necessary to its manufacturing, mining, 
logging, commercial, industrial or agricultural purposes. 
(g) Market value refers to the estimated amount for which a property 
should exchange on the date of valuation between a willing buyer and a 
willing seller in an arm's length transaction (a transaction between 
independent, unrelated parties involving no irregularity) after proper 


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marketing wherein the parties had each acted knowledgeably, prudently 
and without compulsion. 
(h) Private appraisal sector refers to licensed nongovernmental real 
estate service practitioners who have been active in the practice of real 
estate appraisal for the last five (5) years. 
(i) Real estate refers to the land and all those items that are attached to 
the land. It is the physical, tangible entity, together with all the additions 
or improvements on, above or below the ground. 
0) Real property refers to all the rights, interests and benefits related to 
the ownership of real estate, plant, machinery and equipment. 
(k) Schedule of Market Values, hereinafter referred to as SMV, refers to a 
table of base unit market values for all kinds of real properties, except 
machinery, within a local government unit prepared by assessors 
pursuant to existing laws, rules and regulations. 
(I) 
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. Because of the special design and 
function, conversion of special purpose properties to other types of 
development or application is generally not economically feasible. 
(m) Valuation and appraisal refers to the systematic and analytic 
determination 
and 
recording 
of property 
facts, 
circumstances, 
investments and investigation of other relevant data resulting in a 
supportable estimate and opinion of value or a professional conclusion 
based upon supporting data, logical analysis and judgment as of a 
specific date and for a specific purpose. 
ARTICLE II 
STRENGTHENING THE BUREAU 
OF LOCAL GOVERNMENT FINANCE (BLGF) 
Chapter 1 
BLGF Central Operations 
SECTION 4. Role of the Bureau of Local Government Finance. - The 
BLGF, through the Real Property Valuation Service (RPVS) as hereinafter 
established, shall lead and manage the implementation of the provisions 
of this Act. The BLGF shall have the following powers and functions: 
(a) Develop, adopt and maintain valuation standards consistent with 
generally accepted valuation standards, regulations and specifications for 
real property appraisal used for tax and other purposes, and ensure 
compliance therewith by the LGUs and other concerned parties; 
(b) Review for compliance with the real property valuation policies and 
standards and recommend for approval of the Secretary of Finance the 
Schedule of Market Values (SMVs) as prepared by the provincial 
assessors, together with municipal assessors and city assessors, 
including the municipal assessor in Metro Manila, for tax, both local and 
national, and for other purposes; 


~- ------------------------------------------
(c) Provide technical assistance on real property appraisal matters to 
government agencies and instrumentalities, and coordinate or conduct 
the valuation and appraisal of special purpose properties, when 
requested; 
(d) Provide leadership and policy directions to LGUs on real property 
valuation and appraisal for taxation and other purposes, including the 
development and maintenance of valuation standards, the regulation of 
valuation and appraisal activities and other related matters, and the 
promotion of valuation and appraisal training and seminars; 
(e) Maintain a roster of licensed local government appraisers and 
assessors; 
(f) Develop and maintain a comprehensive and up-to-date electronic 
database of real property transactions and prices of materials for 
buildings, machinery and other structures; 
(g) Conduct continuing study and research on valuation, and maintain 
an information base on current global and country trends and 
developments in real property valuation and appraisal; 
(h) Determine, fix and collect reasonable amounts to be charged as 
administration fees, fines and penalties relative to the implementation of 
this Act; and 
(i) Perform such other functions as are necessary, proper and incidental 
to implement the provisions of this Act. 
SECTION 5. Establishment of the Real Property Valuation Service. -
To achieve the policy and objectives declared in this Act, there shall be 
established the Real Property Valuation Service, hereinafter referred to as 
the RPVS, within the BLGF. 
SECTION 6. Responsibilities of the BLGF Executive Director. - The 
BLGF Executive Director shall be responsible for the efficient and 
effective performance of the responsibilities set forth in this Act and for 
the overall internal management and governance of the RPVS. 
For this purpose, the BLGF Executive Director shall: 
(a) Develop and implement policies, plans, programs and operating 
standards for the attainment of the objectives of this Act; 
(b) Provide policy directions and leadership in all aspects of valuation 
and appraisal and their implementation in the regional offices; 
(c) Recommend to the Secretary of Finance the approval of the SMVs 
prepared by the provincial assessors, together with municipal assessors 
and city assessors, including the municipal assessor in Metro Manila, for 
tax and other purposes; 
(d) Advise and assist other government agencies on matters pertaining to 
real property valuation and appraisal; and 
(e) Perform such other functions as may be provided by law or required 
in pursuance of this Act. 


SECTION 7. Consultations with Concerned Agencies and Sectors. -
(a) A Central Consultative Committee shall be created, chaired by the 
BLGF Executive Director and composed of a representative each from 
the: 
(l)Bureau ofInternal Revenue (BIR); 
(2) Department of Environment and Natural Resources (DENR); 
(3) Bangko Sentral ng Pilipinas (BSP); 
(4) National organization of government assessors; 
(5) National organization of appraisers in national government 
agencies; 
(6) Private appraisal sector; and 
(7) Union of Local Authorities of the Philippines (ULAP). 
(b) The member-representatives from the BIR, the DENR and the BSP 
must 
be 
performing valuation-related functions. 
The 
national 
organization of government assessors, the private sector and the ULAP 
shall be represented by their respective heads of organizations. 
(c) The Chairperson and members of the Committee shall not receive 
additional salary for the performance of their functions. Members of the 
consultative committee who are not incumbent government officials or 
employees shall be entitled to honoraria, pursuant to existing laws and 
regulations. 
(d) The Committee shall meet at the initiation of the Chairperson at least 
once every semester and shall have as many meetings as the 
Chairperson may deem necessary for the adoption of valuation 
standards. 
SECTION 8. Functions of the Central Consultative Committee. - The 
Central Consultative Committee shall serve as the consultative forum on 
matters pertaining to the setting, adoption and maintenance of the 
valuation standards. 
Chapter 2 
BLGF Regional Operations 
SECTION 9. Role of the BLGF Regional Offices. -
The BLGF 
Regional Offices, through the Regional Director, shall be responsible for 
all matters relating to valuation and appraisal and the SMVs in the 
region, such as the: 
(a) Implementation of the provIsions of this Act and related policies, 
plans, programs, rules and regulations on real property valuation or 
appraisal of LGUs in the region; 
(b) Review and endorsement to the BLGF Executive Director of the 
proposed SMVs prepared by the provincial assessors, together with the 
municipal assessors and the city assessors within the region; 
(c) Provision for economical, efficient and effective service relating to the 
implementation of the provisions of this Act in the region; 


(d) 
Coordination and consultation with regional offices of other 
government departments, bureaus and agencies within the region 
dealing with real property valuation and appraisal; 
(e) Provision for leadership and policy direction in the area of real 
property valuation and appraisal to LGUs in the region; 
(f) Adoption and maintenance of a comprehensive and up-to-date 
regional 
electronic 
database of all 
regional 
real property-related 
transactions, and have custody of all transaction records submitted by 
the local government assessors; and 
(g) Performance of other functions as may be assigned by the BLGF 
Executive Director. 
SECTION 10. The Regional Consultative Committee. -
(a) There 
shall be a Regional Consultative Committee that shall be chaired by the 
BLGF Regional Director and shall be composed of a representative each 
from the: 
(1) 
BIR - Regional Office; 
(2) 
DENR - Regional Office; 
(3) 
Regional organization of government assessors; 
(4) 
Regional organization of national government appraisers; 
(5) 
Private appraisal sector within the region; and 
(6) 
Bankers association within the region. 
(b) The members of the Regional Consultative Committee must be 
performing valuation and appraisal-related functions. Representatives 
from the regional organization of government assessors, private appraisal 
sector and banking associations within the region shall be represented 
by the head of their respective regional organization. 
(c) The Committee shall meet at the initiation of the BLGF Regional 
Director at least once every quarter and shall have as many meetings as 
the BLGF Regional Director may deem necessary for the performance of 
its functions. 
SECTION 11. Functions of the Regional Consultative Committee. -
The Regional Consultative Committee shall serve as the consultative 
forum in the region for discussion on developments in the local real 
property market; concerns of taxpayers, civil society and other 
stakeholders; outcome of compliance reporting in the region; level of 
complaints and appeals; LGU training in the region; appraisal and 
assessment concerns in general; and other matters as may be 
determined by the Committee. 
ARTICLE III 
VALUATION AND APPRAISAL OF REAL PROPERTIES 
Chapter 1 
Valuation Standards and Market Values 
SECTION 
12. Development 
of 
Valuation 
Standards. 
Notwithstanding the provisions of existing laws to the contrary, the BLGF 
shall develop, adopt, maintain and implement uniform valuation 


---------------------------------------------
standards which shall be used by all appraisers and assessors in the 
LGUs and other concerned parties in appraising or valuing lands, 
buildings, machinery and other real properties for taxation and other 
purposes. The valuation standards shall conform with generally accepted 
international valuation standards and principles. 
SECTION 13. Valuation and Appraisal of Real Property. -
For 
valuation purposes, all real properties, whether taxable or exempt, shall 
be valued or appraised at the market value prevailing in the locality 
where the property is situated, in conformity with the valuation 
standards adopted under this Act. The BLGF shall promulgate the rules 
and regulations for the valuation and appraisal of real property pursuant 
to the provisions of this Act. It shall provide leadership in ensuring 
rationalized 
valuation 
of 
real 
properties 
transcending 
political 
boundaries. 
For real properties intended for low-cost or socialized housing and 
other programs of the government imbued with social policy objectives, 
the provisions of existing pertinent laws shall be applied after 
determination of the prevailing market value of these properties in 
accordance with internationally accepted valuation standards adopted 
under this Act. 
SECTION 14. Preparation of the Schedule of Market Values. -
Provincial assessors, together with the municipal assessors and the city 
assessors, including the municipal assessor in Metro Manila, shall 
prepare the SMVs for the different classes of real property situated within 
their respective LGUs, pursuant to the valuation standards, rules, 
regulations and other specifications set by the Department of Finance 
(DOF) and the BLGF. The said SMVs shall be submitted by the assessor 
concerned to the BLGF Regional Office for review and compliance with 
other requirements not later than the thirty-first (31st) day of October of 
the immediately preceding calendar year that the general revision of real 
property assessments was undertaken. A copy thereof shall be furnished 
the concerned sanggunian and the provincial governor or the city mayor, 
as the case may be. 
The said SMVs shall be reviewed by the BLGF Regional Office 
within thirty (30) days upon receipt thereof and shall then be submitted 
by the same to the BLGF Central Office. Upon the recommendation of the 
BLGF Executive Director, the Secretary of Finance shall approve the SMV 
within sixty (60) days from receipt of the same; otherwise, said schedule 
shall be deemed approved. 
The approved SMV shall be transmitted to the concerned assessor 
who shall confer with the local chief executive regarding the said 
approved SMV. Likewise, the concerned assessor shall submit to the 
local chief executive a tax impact report of the new SMV as against the 
existing assessment levels and tax rates, and shall provide the 
sanggunian, through the Chairperson of the Committee on Ways and 
Means, a copy of such report. The local chief executive shall transmit the 
approved SMV, together with the tax impact report, within fifteen (15) 
days from receipt of the same to the sanggunian for the enactment of an 
ordinance setting the appropriate assessment levels and tax rates. The 
concerned sanggunian shall enact such ordinance, upon conduct of 
public hearings and proper consultation, within sixty (60) days from 
-------------------------


receipt thereof; otherwise, the existing ordinance on assessment levels 
and tax rates shall remain in force and effect. 
Upon the enactment by the sanggunian of an ordinance for the 
assessment levels and tax rates, the local chief executive shall act within 
ten (10) days, in the case of cities and the municipality in Metro Manila, 
or within fifteen (15) days, in the case of provinces, to approve the same. 
Failure of the concerned local chief executive to act on the ordinance 
within the prescribed period shall render the same approved. 
The approved ordinance, together with the SMV, shall be published 
by the concerned LGU in a newspaper of local circulation once a week for 
two (2) consecutive weeks: Provided, however, That in provinces, cities 
and municipalities where there are no newspapers of local circulation, 
the same shall be posted in the provincial capitol, city or municipal hall 
and in two (2) other conspicuous public places therein. A list of LGUs 
whose SMVs have been approved shall be posted in the BLGF official 
website. 
SECTION 15. Use of the Schedule of Market Values. - The SMV, as 
approved by the Secretary of Finance, shall be used for the general 
revision of real property assessments in LGUs as basis for the 
determination of real property-related taxes imposed by national 
government agencies, and as benchmark for real property appraisal for 
other purposes. For purposes of computing any internal revenue tax, the 
BIR Commissioner shall adopt the SMV or the actual gross selling price 
in consideration, as stated in real property transaction documents, 
whichever is higher. 
Notwithstanding the provisions of existing laws to the contrary, the 
SMV shall cease as basis for the determination of national and local real 
property-related taxes after five (5) years from the effectivity of its 
enacting ordinance. 
SECTION 16. Revision of the Schedule of Market Values. - The 
BLGF shall formulate the program for the regular revision of the SMVs. 
All provincial assessors, together with the municipal assessors and the 
city assessors, including the municipal assessor in Metro Manila, shall 
undertake a revision of their respective SMVs within two (2) years from 
the effectivity of this Act. Thereafter, they shall undertake a general 
revision of the SMVs and property assessments not earlier than three (3) 
years from the date of the last revision, but not later than five (5) years. 
In case of any significant change in the market where the property 
is located after the said SMVs have been approved and prior to its next 
revision, or where correction of errors and inequalities in any SMV is 
deemed necessary, the provincial assessors, together with the municipal 
assessors and the city assessors, including the municipal assessor in 
Metro Manila, may recommend to the BLGF Executive Director revisions 
to their existing SMV. Such revision/ s shall be subject to review by the 
concerned BLGF Regional Office and recommendation by the BLGF 
Executive Director for approval by the Secretary of Finance within ninety 
(90) days from the date of receipt thereof. 
SECTION 17. Conduct of Capacity-Building Interventions. -
For 
the effective implementation of this Act, the BLGF shall develop and 
conduct the necessary trainings for all local assessors and other local 


officials/staff on the preparation of the SMV in accordance with 
internationally accepted valuation standards, concepts, principles and 
practices; conduct of SMV impact studies; preparation of compliance 
reports, and other subject areas to ensure the effective implementation of 
this Act. 
Chapter 2 
Development and Maintenance of Real Property Database 
SECTION 18. Development of Real Property Database. - The BLGF 
shall develop and maintain an up-to-date electronic database of the sale, 
exchange, lease, mortgage, donation and all other real property 
transactions in the country and on the cost of construction or renovation 
of buildings and other structures, and on prices of machinery. For this 
purpose, the BLGF is hereby authorized to require the mandatory 
submission of necessary documents from the concerned officials or 
employees of national government offices or instrumentalities, LGUs and 
the private sector. The updated database shall be made available to the 
LGUs, national government agencies and the private sector. 
SECTION 19. Duty of Register of Deeds to Supply Assessors of Real 
Property Transactions Data. - The Register of Deeds shall prepare and 
submit to the provincial and city assessors, including the municipal 
assessor in Metro Manila, an abstract of the entire registry every three (3) 
months and copies of all contracts selling, transferring or otherwise 
converting, leasing or mortgaging real property registered every end of 
the month. The abstract shall include brief but sufficient description of 
the real properties entered therein, their present owners and .the dates of 
their most recent transfer or alienation accompanied by copies of 
corresponding deeds of sale, donation or partition or other forms of 
alienation. 
SECTION 
20. Duty of Official Issuing Building Permits 
or 
Certificates of Registration of Machinery to Transmit Copy to the Assessor. 
- Any public official or employee who may now or hereafter be required 
by law or regulation to issue to any person a permit for the construction, 
addition, repair or renovation of a building, or permanent improvement 
on land, or a certificate of registration for any machinery, including 
machines, mechanical contrivances and apparatus attached or affixed on 
land or to another real property, shall transmit a copy of such permit or 
certification within thirty (30) days of its issuance to the assessor of the 
province, city or municipality where the property is situated. 
SECTION 21. Duty of Geodetic Engineers to Furnish Copy of Plans 
to the Assessor. - It shall be the duty of all geodetic engineers, public or 
private, to furnish free of charge, the assessor of the province, city or 
municipality where the land is located, a copy of the blue or white print 
of each of all approved original subdivision plans or maps of surveys, 
duly signed by a Senior Geodetic Engineer, executed by them every end 
of the month from receipt of such approved plans from the Land 
Management Bureau (LMB), the Land Registration Authority (LRA) or the 
Housing and Land Use Regulatory Board (HLURB), as the case may be. 
SECTION 22. Duty of Assessors to Transmit Documents to the 
BLGF. - It shall be the duty of the assessors to transmit to the concerned 
BLGF Regional Office all real property transactions data from the 
Register of Deeds and the names of the official issuing the building 


permit and those of the geodetic engineers within one (1) month after the 
receipt of such data. The BLGF Regional Office shall record, process and 
make a summary report of the real property data and submit the same to 
the BLGF Central office within one (1) month from receipt of such data. 
Chapter 3 
Appointment and Qualifications of Assessors 
SECTION 23. Appointment of Assessors. - The local chief executive 
shall appoint the provincial, city and municipal assessors and assistant 
assessors, as the case may be, in accordance with civil service law, rules 
and regulations and the following guidelines: 
(a) In the case of provincial and assistant provincial assessors and city 
and assistant city assessors, the appointee shaH be chosen from the list 
of at least three (3) ranking eligible recommendees within the region, as 
endorsed by the OOF Secretary as suitable and qualified for 
appointment; 
(b) In the case of municipal and assistant municipal assessors, the 
appointee shall be chosen from the list of at least three (3) ranking 
eligible recommendees within the province, as endorsed by the OOF 
Secretary as suitable and qualified for appointment; and 
(c) In the case of city and assistant city assessors and municipal and 
assistant municipal assessors for Metro Manila, the appointee shall be 
chosen from the list of at least three (3) ranking eligible recommendees 
within Metro Manila, as endorsed by the OOF Secretary as suitable and 
qualified for appointment. 
The assessors shall be under the technical supervisIOn of the 
BLGF, primarily through a system of compliance reporting and 
of capacity-building programs through education and training. 
SECTION 24. Qualifications of Local Government Assessors. - No 
person shall be appointed assessor or assistant assessor unless such 
person is a citizen of the Philippines, a resident of the region for a 
provincial or city assessor/assistant assessor and of the province for a 
municipal assessor / assistant assessor, a 
registered and licensed 
appraiser, of good moral character and must have experience in real 
property valuation or assessment work or in any suitable field for at least 
five (5) years in the case of the provincial or city assessor and three (3) 
years in the case of the municipal assessor. 
All incumbent assessors holding permanent appointments shall 
enjoy security of tenure and shall continue to perform their functions 
without the need for reappointment and without diminution of status, 
rank and salary grade. Those with temporary appointments are given the 
opportunity to qualify for permanent appointments as assessors for a 
period to be determined by the OOF upon the effectivity of this Act. 
ARTICLE IV 
PENAL PROVISIONS 
SECTION 25. Failure to Comply with the Required Submission of 
Documents. - Any government official or employee who fails without 
justifiable reason to provide or furnish data or information required 


pursuant to Sections 19,20,21 and 22 of this Act shall be punished by 
a fine equivalent to the official's or employee's six (6) months basic salary 
or suspension from the service for a period not exceeding one (1) year, or 
both, at the discretion of the competent authority. 
SECTION 26. Failure to Comply with the Valuation Standards. - An 
assessor who, for unjustifiable reasons, fails to comply with the valuation 
standards developed and adopted pursuant to this Act, or deliberately 
conceals any deviation or departure from such standards in the 
valuation and appraisal of real property, shall be punished by a fine 
equivalent to the official's or employee's basic salary for a period of one 
(1) month to six (6) months, or by suspension from government service 
for not more than one (1) year, or both, at the discretion of the competent 
authority. 
SECTION 27. Failure to Prepare the Schedule of Market Values. -
An assessor who, for unjustifiable reasons, intentionally or deliberately 
refuses or fails to prepare the SMVs within the period set forth in this Act 
shall be meted a fine equivalent to the official's or employee's basic salary 
for a period of one (1) month to six (6) months, or by suspension from 
government service for not more than one (1) year, or both, at the 
discretion of the competent authority. 
SECTION 28. Violations of Other Provisions. - Any person, whether 
natural or juridical, who violates any provision of this Act other than 
those punishable under Sections 25, 26 and 27 hereof shall, when 
warranted, be dealt with under applicable existing laws. 
SECTION 
29. Taxpayers' Remedies 
in 
Case of Erroneous 
Assessments of Real Properties. - The provisions of Sections 226 (Local 
Board of Assessment Appeals) and 229 (Action by the Local Board of 
Assessment Appeals) of Republic Act No. 7160, otherwise known as the 
"Local Government Code of 1991", shall apply in all cases of appeals as 
remedies for the taxpayers in the assessment of their properties. 
ARTICLE V 
TRANSITORY PROVISIONS 
SECTION 30. Transitory Guidelines. - (a) LGUs which are in the 
process of revising their SMVs, upon the effectivity of this Act, shall 
continue with such revisions in accordance with Section 16 of this 
Act:Provided, That proper notification and coordination with the BLGF 
shall be undertaken. 
(b) In case the SMV is not yet available or revised, the BIR Commissioner 
shall adopt the existing SMV, zonal values or the actual price in 
consideration as stated in real property transaction documents, 
whichever is higher, for purposes of computing any internal revenue tax. 
SECTION 31. Saving Clause. - The zonal values, as determined by 
the BIR and approved by the Secretary of Finance for internal revenue 
tax purposes, and the SMVs prepared by the provincial assessors, 
together with the municipal assessors and the city assessors, including 
the municipal assessor in Metro Manila, that have been approved by 
their respective sanggunians for real property taxation purposes shall 
continue to be in force and effect until repealed, superseded, modified, 
revised, set aside or replaced by the values provided under the new SMVs 


as approved in accordance with Section 16 of this Act, which shall be 
within two (2) years upon the effectivity of this Act. 
ARTICLE VI 
FUNDING REQUIREMENTS 
SECTION 32. Budgetary Requirements for the Revision of the 
Schedule of Market Values. - Each local sanggunian shall appropriate the 
necessary funds from locally generated revenues, the Internal Revenue 
Allotment (IRA) or such other sources every fiscal year. The accumulated 
amount so appropriated shall be known as the Real Property Tax 
Administration Fund (RPTAF) which shall be used for the proper 
implementation of the regular revision of the SMVs and the general 
revision of real property assessments, and the administration of real 
property taxes in all LGUs. 
SECTION 33. Appropriations. -
The amount necessary for the 
implementation of this Act shall be included in the annual General 
Appropriations Act. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SECTION 34. Implementing Rules and Regulations (IRR). - Within 
six (6) months after the effectivity of this Act, the DOF shall, in 
consultation with the concerned parties, issue the IRR for the effective 
implementation of this Act. 
SECTION 35. Suppletory Application of Existing Laws. -
The 
provisions of Republic Act No. 7160, otherwise known as the "Local 
Government Code of 1991", and other laws consistent with this Act shall 
have suppletory effect. 
SECTION 36. Separability Clause. - Any portion or provlslOn of 
this Act that may be declared unconstitutional or invalid shall not have 
the effect of nullifying other portions or provisions hereof as long as such 
remaining portions or provisions can still subsist and be given effect in 
their entirety. 
SECTION 37. Repealing Clause. -
(a) Sections 19, 135(a), 138, 
198(a), 199 (g)(h)(l) , 201, 202, 209(a), 212, 214, 218 paragraph l(b), 219, 
220, 224(a), 443(d), 444(b)(l)(v), 454(d), 455(b)(l)(v), 463(d), 465(b)(l)(v), 
472(a) paragraph 1, 472(b)(8) and 473(a) paragraph 1 of Republic Act No. 
7160, otherwise known as the "Local Government Code of 1991", are 
hereby repealed. 
(b) Sections 6(E), 24(D), 27(D)(5), Sections 88(B) and 102 of Republic Act 
No. 8424, otherwise known as the "Tax Reform Act of 1997", are hereby 
amended or modified accordingly. 
(c) 
All 
laws, presidential decrees, executive orders, 
presidential 
proclamations, rules and regulations or parts thereof contrary to or 
inconsistent with this Act are hereby repealed, superseded or modified 
accordingly. 


SECTION 38. Effectivity. - This Act shall take effect fifteen (15) 
days after its complete publication in the Official Gazette or in at least 
two (2) newspapers of general circulation. 
Approved,