FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. NO. 2360 
Introduced by Senator Juan Miguel F. Zubiri 
EXPLANATORY NOTE 
National and local government units (LGUs) must control dependable sources of 
revenues that shall be wisely allocated to implement its policies and deliver basic 
services to its constituents. Governments need to ensure that the tools needed to 
implement good governance are efficient, responsive and transparent. These features 
are found in the policies and mechanisms provided for in the proposed Real Property 
Valuation Reform Bill. 
The Bill proposes the adoption of a just, equitable, impartial and nationally 
consistent valuation based on internationally accepted standards, concepts, principles 
and practices. This will directly benefit government agencies such as the Department of 
Environment and Natural Resources, Department of Public Works and Highways, 
Department of Agrarian Reform, National Power Corporation, Government Service 
Insurance System, Social Security System, Land Registration Authority, Land Bank of 
the Philippines, Bureau of Internal Revenue, and the Commission on Audit, among 
others. Likewise, private banks and parties to transactions will enjoy the advantages of 
uniform valuation standards over tlie chaos and disparities that hold sway at present. 
Presently, more than 23 government agencies undertake real property valuation 
with conflicting assessments. It is estimated that LGUs assess real property lower than 
the BIR by 13-94 per cent. Meanwhile, the zonal values used by the BIR are 5- 930 % 
lower than values used by private appraisers. With rampant over-valuation or under-
valuation, public and private transactions are often marked by litigation and corruption. 
In addition, the need for reform gains urgency in light of globalization wherein real 
properties are subjected to cross-boundary transactions. 
This Bill proposes to create the National Valuation Authority (NVA) attached to 
the Department of Finance. It shall be responsible for the following: development of 
generally-accepted and internationally-recognized valuation standards; review of local 
Schedule of Market Values; development and maintenance of database of real property 
transactions and prices; keeping abreast of global and local trends; and, maintenance of 
a roster of appraisers and assessors in government. 
Finally, this Bill will pave the way for National Government and LGUs to realize 
the value of its own assets, of which real estate is estimated to account for 50-75 % of a 
nation's wealth. As the valuation becomes transparent and depoliticized, parties to 
transactions will more likely pay the correct taxes assured that valuation is fair and 


based on verifiable market value. Consequently, LGUs collect more revenue while 
being liberated from over-dependence on Internal Revenue Allocation. Similarly, the 
National Government will have more resources to implement its mandates. It will also 
encounter lesser hitches brought about by the existing valuation disparities involving 
real property for vital projects such as transport, power and water infrastructures 
nationwide, among others. 
The immediate passage of this Bill, is therefore, respectfully sought. 


; ~' 
f f 
FIFTEENTH CONGRESS OF THE 
) 
(w5~ftC~ ;,~ \ -;) 
A !" n~: i ,11\ 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. No. 2360 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION IN THE PHILIPPINES, 
ESTABLISHING THE NATIONAL VALUATION AUTHORITY AND APPROPRIATING 
FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SEC. 1. Short Title. - This Act shall be known as the "THE REAL PROPERTY 
2 
VALUATION REFORM ACT OF 2010." 
3 
ARTICLE I 
• 
4 
DECLARATION OF POLICY AND OBJECTIVES, 
5 
AND DEFINITION OF TERMS 
6 
SEC. 2. Declaration of Policy and Objectives. - It is the policy of the State to 
7 
promote the development and maintenance of a just, equitable, impartial, and nationally 
8 
consistent real property valuation based on internationally accepted valuation 
9 
standards, concepts, principles, and practices. Towards this end, the State shall: 
10 
(a) Establish and maintain valuation standards to govern the valuation of real 
11 
property in the country; 
12 
(b) Adopt market value as the single real property valuation base for the 
13 
assessment of all real property related taxes in the country, and for valuing or 
14 
appraising real property for various transactions by all government agencies; 
15 
(c) Separate the function of valuing or appraising of real properties from the 
16 
functions of tax policy and administering the taxes due thereon; 
17 
(d) Support the development and professionalization of the valuation/appraisal 
18 
practice in the country pursuant to Republic Act No. 9646; 
19 
(e) Provide a comprehensive and up-to-date electronic database of all real 
20 
property transactions; 
21 
(f) Support the development of a "body of knowledge" on valuation by continuing 
22 
research and monitoring of new developments in the valuation discipline for 


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upgrading the country's valuation and making it abreast with global 
developments; and 
(g) Ensure transparency in real property transactions to protect consumers and 
develop confidence in the work of appraisers and assessors. 
SEC. 3. Definition of Terms. - As used in this Act, the following terms mean: 
, 
(a) Appraiser -
also known as valuer; refers to a person who conducts 
valuation/appraisal; 
specifically, 
one 
who 
possesses 
the 
necessary 
qualifications, 
ability, 
and 
experience 
to 
execute 
or 
direct 
the 
valuation/appraisal of real property. 
(b) Assessor - refers to an official in the local government unit, 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 - is 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 t~e 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 
2 


in an arm's length transaction (a transaction between independent, unrelated 
2 
parties involving no irregularity) after proper marketing wherein the parties 
3 
had each acted knowledgeably, prudently, and without compulsion; 
4 
(h) Private appraisal sector - refers to licensed non-governmental real estate 
5 
service practitioners who have been active in the practice of real estate 
, 
6 
appraisal for the last five (5) years. 
7 
(i) Real Estate - refers to the land and all those items which are attached to the 
8 
land. It is the physical, tangible entity, together with all the additions or 
9 
improvements on, above or below the ground. 
10 
0) Real Property - refers to all the rights. interests, and benefits related to the 
11 
ownership of real estate, plant, machinery, and equipment; 
12 
(k) Schedule of Market Values or SMV - refers to a table of market values of real 
13 
properties within a local government unit prepared by assessors pursuant to 
14 
existing laws, rules and regulations. 
15 
(I) Special Purpose Property -
refers to a property which is designed, 
16 
constructed and developed for a specific use or purpose. By its very nature, 
• 
17 
this type of property is rarely offered for sale in the open market except as 
18 
part of a going concern. Because of the special design and function, 
19 
conversion of special purpose properties to other types of development or 
20 
application is generally not economically feasible. 
21 
(m)Valuation/Appraisal - refers to the systematic and analytic determination and 
22 
recording of property facts, circumstances, investments, and investigation of 
23 
other relevant data resulting in a supportable estimate and opinion of value or 
24 
a professional conclusion based upon supporting data, logical analysis and 
25 
judgment as of a specific date and for a specific purpose. 
26 
ARTICLE II 
27 
NATIONAL VALUATION AUTHORITY AND THE REGIONAL OFFICES 
28 
Chapter 1 
29 
Establishing a National Valuation Authority 
30 
SEC. 4. Establishment of a National Valuation Authority. - To achieve the 
31 
policy and objectives declared in, this Act, there shall be established a National 
32 
Valuation Authority (NVA), hereinafter referred to as the Authority, which shall be the 
33 
primary agency of the government on matters concerning the valuation or appraisal of 
34 
real properties in the Philippines. The Property Valuation Office (PVO) established 
35 
within the Department of Finance (DOF) shall serve as the nucleus of the Authority. The 
36 
Authority shall be attached to the DOF and shall have its central office in Metro Manila. 
37 
SEC. 5. Powers and Functions of the Authority. - The Authority shall have the 
38 
following powers and functions: 
3 


(a) Develop, adopt, and maintain valuation standards consistent with generally 
• 
2 
accepted valuation standards, regulations and specifications for real property 
3 
appraisal used for tax and other purposes, and ensure compliance therewith 
4 
by national government agencies, local government units, and other 
5 
concerned parties; 
6 
(b) Review and approve the Schedule of Market Values (SMVs) prepared by the 
7 
provincial assessors together with municipal assessors, and city assessors, 
8 
including the municipal assessor of Metro Manila, for tax and other purposes; 
9 
(c) Provide technical 
assistance on 
real property appraisal matters to 
10 
government agencies and instrumentalities, and coordinate or conduct the 
11 
valuation/appraisal of special purpose properties, when requested; 
12 
(d) Provide leadership and policy directions to local government units, national 
13 
government agencies, private sector institutions and individuals dealing with 
14 
real property valuation/appraisal for taxation and other purposes, including 
15 
the development and maintenance of valuation standards, the regulation of 
16 
valuation/appraisal activities and other related matters, and the promotion of 
17 
valuation/appraisal training and seminars; 
18 
(e) Maintain a roster of government appraisers and assessors; 
19 
(f) Develop and maintain a comprehensive and up-to-date electronic database of 
20 
real property transactions and prices of materials for buildings, machinery, 
21 
and other structures; 
22 
(g) Conduct continuing study and research, and maintain an information base on 
23 
current global and country trends and developments in real property 
24 
valuation/appraisal; 
25 
(h) Determine, fix, 
and collect reasonable amounts to 
be charged as 
26 
administration fees, fines, and penalties relative to the implementation of this 
27 
Act; and 
28 
(i) Perform such other functions as are necessary, proper, and incidental to 
29 
implement the provisions of this Act. 
30 
SEC. 6. Head of Authority. - The Authority shall be headed by a Director 
31 
General who shall be appointed by the President of the Philippines upon the 
32 
recommendation of the Secretary of Finance. The Director General must be a Filipino 
33 
citizen, of good moral character, a graduate in engineering, accounting or appraisal 
34 
related degrees, and a licensed appraiser, or assessor, with at least ten (10) years 
35 
experience in valuation/appraisal or assessment of real properties. 
The Director 
36 
General shall have the salary grade equivalent to the rank of an Assistant Secretary 
37 
under the Salary Standardization Law. 
38 
SEC. 7. Responsibilities of the Director General. - The Director General shall 
39 
be responsible for the efficient and effective performance of the statutory responsibilities 
4 


of the Authority set forth in this Act and for the overall internal rnanagernent and 
2 
governance of the Authority. For this' purpose, the Director General shall: 
3 
(a) Develop and implement policies, plans, programs, and operating standards 
4 
for the attainment of the objectives and mandate of the Authority; 
5 
(b) Provide policy direction and leadership in all aspects of valuation/appraisal 
6 
and their implementation in the regional offices; 
7 
(c) Advise and assist the Secretary of Finance and other government agencies 
8 
on matters pertaining to real property valuation/appraisal; 
9 
(d) Exercise administrative supervision over the central and regional offices, and 
10 
provide technical assistance to the local government assessors; and 
11 
(e) Perform such other functions as may be provided by law, or required in 
12 
pursuance of the law or the demand of the statutory responsibilities of the 
13 
Authority. 
14 
SEC. 8. Creation of an Advisory Board. - (a) There shall be created an 
15 
Advisory Board, hereinafter referred to as the Board, composed of a representative 
16 
each from the: 
17 
1) Department of Finance (DO F); 
18 
2) Bureau of Local Government Finance (BLGF); 
19 
3) Bureau of Internal Revenue (BIR); 
20 
4) Department of Environment and Natural Resources (DENR); 
21 
5) 8angko Sentra/ ng Pilipinas (BSP); 
22 
6) National organization of government assessors; 
23 
7) Private appraisal sector; 
24 
8) Union of Local Authorities of the Philippines (ULAP); and 
25 
9) The Director General as an ex officio member. 
26 
(b) The member-representatives from the DOF, BLGF, BIR, and DENR shall be 
27 
appointed by the President of the Philippines from the nominees of the 
, 
28 
respective Department Secretaries from officials performing valuation-related 
29 
functions whereas the member-representative from the BSP shall be 
30 
apPointed by the 8angko Sentra/ Governor. The representatives from the 
31 
national organization of government assessors, the private sector, and ULAP 
32 
shall be appointed by the President from the nominees of the national 
33 
government assessors, private appraisers' organizations, 
and 
ULAP, 
34 
respectively. 
35 
(c) The President of the Philippines shall appoint the Chairperson from among 
36 
the government member-representatives of the Board. The Authority shall 
37 
provide the secretariat and other support services to the Board. 
38 
(d) The members of the Board shall serve for a maximum of three (3) years. In 
• 
39 
case of vacancy in the Board, the person so appointed or designated shall 
5 


1 
2 
serve only for the unexpired term. They shall not receive additional salary for 
the performance of their functions but they shall be entitled to honoraria 
3 
pursuant to existing laws and regulations. 
4 
(e) The Board shall meet at the initiation of the Chairperson or any Board 
5 
Member at least once every three (3) months. It shall have as many special 
6 
meetings as it may deem necessary for the performance of its functions and 
7 
may require the presence of representatives from concerned agencies 
8 
whenever necessary. The Board shall also formulate and adopt its internal 
9 
rules and regulations for the conduct of its meetings. 
10 
SEC. 9. Functions of the Advisory Board. - The Board shall advise the 
11 
Director General on matters pertaining to valuation/appraisal and shall have the 
12 
recommendatory power on the following: 
13 
(a) Adoption of the valuation standards; and 
14 
(b) Setting, maintenance, and compliance monitoring of the valuation standards 
15 
prepared and developed pursuant to Section 14 of this Act. 
16 
Chapter 2 
17 
Organization of the Authority's Regional Offices 
18 
SEC. 10. Establishment of Regional Offices. - There shall be established in 
19 
every administrative region of the country a Regional Office of the Authority, headed by 
20 
a Regional Director who shall be appointed by the Secretary of Finance upon the 
21 
recommendation of the Director General. The Regional Director must be a Filipino 
22 
citizen, of good moral character, a graduate in engineering, accounting or appraisal 
23 
related degrees, a licensed appraiser, or assessor, with at least five (5) years of 
• 
24 
experience in valuation/appraisal or assessment of real property. The Regional Director 
25 
shall have a salary grade equivalent to Director III under the Salary Standardization 
26 
Law. 
27 
The Regional Directors collectively shall serve as a corps of officers that 
28 
constitute the next in rank to the Director General and designation to the Director 
29 
General's office may be made from their ranks. 
30 
There shall be a phased implementation of the Regional Offices. 
31 
SEC. 11. Functions of the Regional Offices. - The Regional Offices, under the 
32 
Regional 
Director, 
shall 
have 
the 
responsibility for all 
issues 
relating 
to 
33 
valuation/appraisal and SMVs in the region, such as: 
34 
(a) Implement laws, policies, plans, programs, rules and regulations of the 
35 
Authority in the Region; 
36 
(b) Review and recommend the approval of the proposed SMVs prepared by the 
37 
provincial assessors together with the municipal assessors, and city 
38 
assessors, including the municipal assessor of Metro Manila, for tax and other 
39 
purposes; 
6 


1 
(c) Provide economical, efficient, and effective service relating to the Authority's 
2 
mandate to all government agencies and other concerned parties within the 
3 
region; 
4 
(d) Coordinate with regional offices of other government departments, bureaus, 
5 
and agencies within the region dealing with real property valuation/appraisal; 
6 
(e) Provide 
leadership 
and 
direction 
in 
the 
area 
of 
real 
property 
7 
valuation/appraisal to local government units in the region; 
8 
(f) Adopt and maintain a comprehensive and up-to-date regional electronic 
9 
database of all regional real property-related transactions and have custody 
10 
of all transaction records submitted by local government assessors; and 
11 
(g) Perform other functions as may be assigned by the Director General. 
12 
SEC. 12. The Regional Consultative Committee. - (a) There shall be created in 
13 
every administrative region a Regional Consultative Committee, hereinafter referred to 
14 
as the Committee, composed of a representative each from: 
15 
1) Bureau of Local Government Finance - Regional Office; 
16 
2) Bureau of Internal Revenue - Regional Office; 
17 
3) Department of Environment and Natural Resources -Regional Office; 
18 
4) Regional organization of government assessors; 
19 
5) Private appraisal sector within the region; and 
20 
6) Regional banking association. 
21 
(b) The members of the Regional Consultative Committee shall elect the 
22 
Chairperson from among themselves. 
23 
(c) The members of the Regional Consultative Committee must be performing 
24 
valuation/appraisal related functions, and shall be appointed by the Regional 
25 
Director of the agency concerned, while the representative from the 
26 
organization of government assessors, private appraisal sector, and banking 
27 
association within the region shall be appointed by the head of their 
28 
respective organization. 
29 
(d) The members shall serve for a maximum of three (3) years, otherwise 
30 
shortened or terminated by the appointing authority. In case of vacancy in the 
31 
Committee, the person so appointed or designated shall serve only for the 
32 
unexpired term. The chairperson and members of the Committee shall not 
33 
receive additional salary for the performance of their functions but they shall 
34 
be entitled to honoraria pursuant to existing laws and regulations. 
35 
(e) The Committee shall meet on the initiation of the Regional Director or any of 
36 
the Board Members at least once every three (3) months. It shall have as 
37 
many special meetings as it may deem necessary for the performance of its 
38 
functions. The Committee shall also formulate and adopt its internal rules and 
39 
regulations for the conduct of its meetings. 
7 


SEC. 13. 
Functions of the Committee. - The Committee shall serve as a 
2 
consultation forum in the region for discussion on property market reports; concerns of 
3 
taxpayers, civil society, and other stakeholders; outcome of Compliance Reporting in 
4 
the region; level of complaints and appeals; local government unit training in the region; 
5 
appraiser and assessor concerns in general; and other matters as may be determined 
6 
by the Committee. 
7 
ARTICLE III 
8 
VALUATION/APPRAISAL OF REAL PROPERTIES 
9 
. Chapter 1 
10 
Valuation Standards and Market Values 
11 
SEC. 14. Development of Valuation Standards. -
Notwithstanding the 
12 
provisions of existing laws to the contrary, the Authority shall develop, adopt, maintain 
13 
and implement uniform valuation standards which shall be used by all appraisers and 
14 
assessors of national and local government agencies and its instrumentalities, and 
15 
other concerned parties in appraising or valuing lands, buildings, machinery and other 
16 
real properties for taxation and other purposes. The valuation standards must conform 
17 
with the generally accepted valuation principles and internationally accepted standards. 
18 
SEC. 15. Valuation/Appraisal of Real Property. - For valuation purposes, all 
19 
real property, whether taxable or exempt, shall be valued or appraised at the market 
20 
value prevailing in the locality where the property is situated, in conformity with the 
21 
valuation standards adopted under this Act. The Authority shall promulgate the rules 
22 
and regulations for the classification and valuation/appraisal of real property pursuant to 
23 
the provisions of this Act. It shall provide leadership in ensuring rationalized valuation of 
24 
real properties transcending political boundaries. 
25 
For real properties intended for low-cost or socialized housing and other 
26 
programs of the government imbued with social policy objectives, the provisions of 
27 
existing pertinent laws shall be applied on the prevailing market value of these 
28 
properties. 
29 
SEC. 16. Preparation of Schedule of Market Values. - Provincial assessors 
30 
together with municipal assessors, and city assessors, including the municipal assessor 
31 
in Metro Manila, shall prepare the SMVs for the different classes of real property 
32 
situated within their respective local government units, pursuant to the valuation 
33 
standards and specifications set by the Authority. The said SMVs shall be submitted by 
34 
the assessor concerned, upon proper information to the local chief executive and the 
35 
Sanggunian, to the Authority's Regional Office for review and compliance with other 
. 36 
requirements. The said SMVs shall then be submitted to the Authority's Central Office 
37 
for approval within sixty (60) days from receipt thereof. The Authority shall review and 
38 
approve the SMV within thirty (30) days upon receipt of the same; otherwise, said 
39 
schedule shall be deemed approved. 
8 


The Authority shall transmit the approved SMV to the concerned assessor who 
2 
shall confer with the local chief executive regarding the said approved SMV. Likewise, 
3 
the concerned assessor shall submit to the local chief executive a revenue impact 
4 
report of the new SMV as against the existing assessment levels and tax rates, and 
5 
shall provide the Sanggunian, through the Chairperson of the Committee on Ways and 
6 
Means, a copy of such report. The local chief executive shall transmit the approved 
7 
SMV together with the revenue impact report within fifteen (15) days from receipt of the 
8 
same to the Sanggunian for the enactment of an Ordinance setting the assessment 
9 
levels and tax rates. The concerned Sanggunian shall enact such Ordinance, upon 
10 
conduct of public hearings and proper consultation, within sixty (60) days from receipt 
11 
thereof; otherwise, the existing Ordinance on assessment levels and tax rates shall 
12 
remain in force and effect. 
13 
Upon the enactment by the Sanggunian of an Ordinance for the assessment 
14 
levels and tax rates, the local chief executive shall act within ten (10) days, in the case 
15 
of cities and municipality in Metro Manila, or within fifteen (15) days, in the case of 
16 
prOVinces, to approve the same. Failure of the concerned local chief executive to act on 
17 
the Ordinance within the prescribed period shall render the same approved. 
18 
The approved Ordinance together with the SMV shall be published by the 
19 
concerned local government unit in a newspaper of local circulation once a week for two 
20 
consecutive weeks: Provided, how,ever, That in provinces, cities and municipalities 
21 
where there are no newspapers of local circulation, the same shall be posted in the 
22 
prOVincial capitol, city or municipal hall and in two (2) other conspicuous public places 
23 
therein. The Authority shall also publish the approved SMV on its official website. 
24 
SEC. 17. Use of Schedule of Market Values. - The SMV as approved by the 
25 
Authority shall be used for the general revision of real property values and as basis for 
26 
the determination of real property related taxes imposed by the national and local 
27 
governments. 
For purposes of computing any internal revenue tax, the SIR 
28 
Commissioner shall adopt the SMV or the actual price in consideration as stated in real 
29 
property transaction documents, whichever is higher. 
30 
SEC. 18. Revision of Schedule of Market Values. - The Authority shall 
31 
formulate the program for the regular revision of SMVs. All provincial assessors 
32 
together with the municipal assessors, and city assessors, including the municipal 
33 
assessor in Metro Manila, shall undertake a revision of their respective SMVs within two 
34 
(2) years from the establishment of the Authority. Thereafter, they shall undertake a 
35 
revision of SMVs not earlier than three (3) years from the date of last revision, but not 
36 
later than five (5) years. 
37 
In case of any significant change in the market where the property is located after 
38 
the said SMV has been approved and prior to its next revision, the provincial assessors 
39 
together with the municipal assessors, and city assessors, including the municipal 
9 


assessor in Metro Manila, may recommend to the Authority revisions to their existing 
2 
SMV. 
3 
SEC. 19. 
Conduct of Training and Seminars. -
For the effective 
4 
implementation of this Act, the Authority shall conduct the necessary trainings and 
5 
seminars for all local assessors and other local officials/staff on the preparation of SMV 
6 
in accordance with internationally accepted valuation standards, concepts, principles 
7 
and practices, preparation of impact study reports of the approved SMVs. 
8 
Chapter 2 
9 
Development and Maintenance of 
10 
Real Property Database 
11 
SEC. 20. Development of Real Property Database. - The Authority shall 
12 
develop and maintain an up-to-date electronic database of the sale, exchange, lease, 
13 
mortgage, donation and all other real property transactions in the country and on the 
14 
cost of construction or renovation of buildings and other structures, and on prices of 
15 
machinery. For this purpose, the Authority is hereby authorized to require the 
16 
mandatory submission of necesliary documents from the concerned officials or 
17 
employees of national government offices or instrumentalities, local government units, 
18 
and the private sector. The updated database shall be made available to the local 
19 
governrnent units, national government agencies, and the private sector as well. 
20 
SEC. 21. Duty of Register of Deeds to Supply Assessors of Real Property 
21 
Transactions Data. - The Register of Deeds shall prepare and submit to the provincial 
22 
and city assessors, including the municipal assessor in Metro Manila, an abstract of his 
23 
registry every three (3) months and copies of all contracts selling, transferring or 
24 
otherwise converting, leasing, or mortgaging real property registered by him/her every 
25 
end of the month. The abstract shall include brief but sufficient description of the real 
26 
properties entered therein, their present owners, and the dates of their most recent 
27 
transfer or alienation accompanied by copies of corresponding deeds of sale, donation, 
28 
or partition or other forms of alienation. 
29 
SEC. 22. Duty of Official Issuing Building Permits or Certificates of 
30 
Registration of Machinery to Transmit Copy to the Assessor. - Any public official or 
31 
employee who may now or hereaft~r be required by law or regulation to issue to any 
32 
person a permit for the construction, addition, repair, or renovation of a building, or 
33 
permanent improvement on land, or a certificate of registration for any machinery, 
34 
including machines, mechanical contrivances, and apparatus attached or affixed on 
35 
land or to another real property, shall transmit a copy of such permit or certification 
36 
within thirty (30) days of its issuance, to the assessor of the province, city or municipality 
37 
where the property is situated. 
38 
SEC. 23. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor. 
39 
- It shall be the duty of all geodetic engineers, public or private, to furnish free of charge, 
10 


.1 
the assessor of the province, city or municipality where the land is located a copy of the 
• 
2 
blue or white print of each of all approved original subdivision plans or maps of surveys 
3 
executed by them every end of the month from receipt of such approved plans from the 
4 
Land Management Bureau (LMB), the Land Registration Authority (LRA), or the 
5 
Housing and Land Use Regulatory Board (HLURB), as the case may be. 
6 
SEC. 24. Duty of Assessors to Transmit Documents to the Authority. - It 
7 
shall be the duty of the assessors to transmit all real property transactions to the 
8 
Regional Office of the Authority data from the Register of Deeds, official issuing building 
9 
permit and geodetic engineers within one (1) month after the receipt of such data. The 
10 
Authority's Regional Office shall record, process and make a summary report of the real 
11 
property data, and submit the same to the Central office within one (1) month from 
12 
receipt of such data. 
13 
Chapter 3 
14 
Appointment and Qualifications of Assessors 
15 
SEC. 25. Appointment of Assessors. - The Secretary of Finance shall appoint 
16 
provincial, city, and municipal assessors, upon recommendation of the local chief 
17 
executive, subject to civil service law, rules and regulations, and the following 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
guidelines: 
(a) In the case of provincial and assistant provincial assessors and city and assistant 
city assessors, appointee shall be chosen from the list of at least three (3) 
ranking eligible recommendees suitable and qualified for appointment within the 
region; 
(b) In the case of municipal and assistant municipal assessors, appointee shall be 
chosen from the list of at least three (3) ranking eligible recommendees suitable 
and qualified for appointment within the province; and 
(c) In the case of city and assistant city assessors and municipal and assistant 
municipal assessors for Metro Manila, appointee shall be chosen from the list of 
• 
at least three (3) ranking eligible recommendees suitable and qualified for 
appointment within the Metro Manila. 
The assessors shall be under the administrative supervision of the concemed 
local government unit and under the technical assistance of the Authority, primarily 
through a system of compliance reporting and provision for education and training for 
capacity building. 
SEC. 26. 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 licensed appraiser, of 
good moral character, a graduate in engineering, accounting, commerce or appraisal 
related degree, and must have an experience in real property valuation or assessment 
11 


work or in any suitable field for at least five (5) years in the case of the provincial or city 
2 
assessor and three (3) years in the case of the municipal assessor, pursuant to the 
3 
provisions of Republic Act No. 9646, otherwise known as the Real Estate Service Act. 
4 
In accordance with Section 30 of Republic Act No. 9646, after three years from 
5 
the effectivity of this Act all existing and new positions in the national and local 
6 
governments, whether career, permanent, temporary or contractual, and primarily 
7 
requiring the services of any real estate service practitioner, shall be filled only by 
8 
registered and licensed real estate service practitioners. 
9 
All incumbent assessors/assistant assessors holding permanent appointments 
10 
shall continue to perform their functions without need for reappointment and without 
11 
diminution of status, rank and salary grade, and shall enjoy security of tenure. 
12 
However, they may not be promoted to a higher position until they meet the qualification 
13 
requirements of that higher position as herein prescribed. Nothing in this Act shall be 
14 
construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time 
15 
of the enactment of this Act. 
The appointing authority shall exercise his power to 
16 
appoint the assessor in accordance with the provision of Republic Act No. 9646 only 
17 
when a vacancy occurs. 
18 
ARTICLE IV 
19 
PENAL PROVISIONS 
20 
SEC. 27. Failure to Comply with the Required Submission of Documents. -
21 
Any government official or employee who fails without justifiable reason or reasons to 
22 
provide or furnish data or information required by the Authority pursuant to Sections 21, 
23 
22, 23 and 24 of this Act shall be punished by a maximum fine equivalent to the official's 
24 
or employee's six (6) months basic salary or suspension from service for a period not 
25 
exceeding one (1) year, or both, at the discretion of the competent authority. 
26 
SEC. 28. Failure to Comply with the Valuation Standards. - An assessor or 
27 
appraiser who, for unjustifiable reasons, fails to comply with the valuation standards 
28 
prepared and adopted pursuant to this Act, or deliberately concealed any deviations or 
29 
departures from such standards, shall be punished by a maximum fine equivalent to the 
30 
official's or employee's six (6) months basic salary, and suspension from the 
31 
government service or from the practice of profession for a period not exceeding one (1) 
32 
year, or permanent revocation of his/her license at the discretion of the competent 
33 
authority. 
34 
SEC. 29. Failure to Prepare Schedule of Market Values. - An assessor who, 
35 
for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare the 
36 
SMVs within the period required by the Authority shall be punished, upon conviction, by 
37 
a maximum fine equivalent to the official's or employee's six (6) months basic salary or 
38 
by suspension from government service for not more than one (1) year, or both, at the 
39 
discretion of the competent authority. 
12 


1 
SEC. 30. Violations of Other Provisions. - Any person, whether natural or 
2 
juridical, who violates any provision of this Act other than those punishable under 
3 
Sections 27, 28, and 29 hereof shall, when warranted, be dealt with under applicable 
4 
existing laws. 
5 
SEC. 31. Taxpayers' Remedies in Case of Wrong Assessment of Real 
6 
Properties. - The provisions of Sections 226 (Local Board of Assessment Appeals) and 
7 
229 (Action by the Local Board of Assessment Appeals) of Republic Act No. 7160, 
8 
otherwise known as The Local Government Code of 1991 shall apply in all cases of 
9 
appeals as remedies for the taxpayers in the assessment of their properties. 
10 
ARTICLE V 
11 
TRANSITORY PROVISIONS 
12 
SEC. 32. Transitory Guidelines. - Within ninety (90) days upon the effectivity of 
13 
this Act, the Authority's Central Office shall be organized. The President of the 
14 
Philippines shall appoint the Director General upon the recommendation of the 
15 
Secretary of the Department of Finance. 
16 
(a) The Director General shall organize the Board pursuant to Section 8 of this Act 
17 
within thirty (30) days upon the organization of the Authority. 
18 
(b) An Ad Hoc Committee is hereby created which shall be responsible for the 
19 
formulation of the Authority's Organization, Staffing, and Implementation Plan, 
20 
including the selection and placement of personnel, taking into consideration the 
21 
organizational criteria such as, but not limited to, availability of qualified 
22 
personnel, facilities, budgetary support and others. The Ad Hoc Committee shall 
23 
also be responsible for drafting the Implementing Rules and Regulations (IRR) 
24 
for this Act. 
25 
The Ad Hoc Committee shall be composed of the Director General as ex-
26 
officio chairperson and representatives from the OOF, BLGF, BIR, and National 
27 
Tax Research Center (NTRC) as members. 
28 
(c) After the organization of the Authority's Central Office, the Authority's Regional 
29 
Offices shall be organized. 
30 
(d) All existing staff of the PVO in the DOF, records, equipment and appropriations 
31 
provided for the PVO, as determined by the Ad Hoc Committee based on the 
32 
approved organization and staffing, shall be transferred to the Authority. 
33 
(e) Local government units who are in the process of revising their SMVs upon the 
34 
effectivity of this Act shall continue with such revisions in accordance with 
35 
Section 16 of this Act Provided, That proper notification and coordination with 
36 
the Authority shall be undertaken: Provided, finally, That the newly approved 
37 
SMVs shall be in force and effect for a period of two (2) years. 
38 
(f) In case the SMV is not yet available or revised, the BIR Commissioner shall 
39 
adopt the existing SMV or the actual price in consideration as stated in real 
13 


property transaction documents, whichever is higher, for purposes of computing 
2 
any internal revenue tax. 
3 
SEC. 33. Saving Clause. - The zonal values as determined by the SIR and 
4 
approved by the Secretary of Finance for internal revenue tax purposes and the SMVs 
5 
prepared by the provincial assessors together with the municipal assessors, and city 
6 
assessors, including the municipal assessors of Metro Manila, that have been approved 
7 
by their respective Sanggunians for real property taxation purposes shall continue to be 
8 
in force and effect until repealed, superseded, modified, revised, set aside, or replaced 
9 
by the values provided under the nElw SMVs as approved in accordance with Section 16 
10 
of this Act, which shall be within two (2) years upon the effectivity of this Act. 
11 
ARTICLE VI 
12 
FUNDING REQUIREMENTS 
13 
SEC. 34. Budgetary Requirements for Revision of Schedule of Market 
14 
Values. - To ensure the proper implementation of the regular revisions of the SMVs and 
15 
the administration of real property taxes in all local government units, each local 
16 
Sanggunian shall appropriate the necessary funds equivalent to ten percent (10%) of 
17 
the one percent (1 %) from the original allocation of the Special Education Fund (SEF). 
18 
The amount so appropriated shall be known as the Real Property Tax Administration 
19 
Fund (RPT AF). 
20 
The proceeds from the share of the local government unit in the SEF shall 
21 
automatically accrue to the RPTAF to be maintained in every provincial, city or 
22 
municipal treasury offices. 
23 
SEC. 35. Appropriations. - The amount necessary for the initial implementation 
24 
of this Act shall be charged against the current appropriations of the PVO within the 
25 
DOF. Thereafter, such sum as may be necessary for the Authority's continuing 
26 
operations and the proper implementation of this Act shall be included in the annual 
27 
General Appropriations Act. 
28 
ARTICLE VII 
29 
MISCELLANEOUS PROVISIONS 
30 
SEC. 36. Implementing Rules and Regulations (lRR). - The Secretary of 
31 
Finance, taking into account the recommendation of the Ad Hoc Committee created 
32 
under this Act and in consultation with other concerned parties, shall issue the IRR for 
33 
the effective implementation of this Act. 
34 
SEC. 37. Suppletory Application of Existing Laws. - The provisions of 
35 
Republic Act No. 7160, otherwise known as the Local Government Code of 1991, and 
36 
other laws consistent with this Act shall have suppletory effect. 
37 
SEC. 38. Repealing Clause. -
38 
(a) Section 6(E) of Republic Act No. 8424, otherwise known as the National Internal 
39 
Revenue Code (NIRC), as amended, and Sections 199(1), 201, 209(a), 212, 214, 
14 


, 
, 
• 
219, 224(a), 472(a) par 1, and 473(a) par 1 of Republic Act No. 7160, otherwise 
2 
known as the Local Governrnent Code (LGC) of the Philippines, are hereby 
3 
repealed; 
4 
(b) Sections 202, 220, 443(d), 444(b)(1 )(v), 454 (d), 455(b)(1 )(v), 463 (d), and 
5 
465(b)(1 )(v) of the LGC, and Section 88(8) of the NIRC are hereby modified 
6 
accordingly; 
7 
(c) All laws, presidential decrees, executive orders, presidential proclarnations, rules 
8 
and regulations or parts thereof contrary to or inconsistent with this Act are 
9 
hereby repealed, superseded or modified accordingly. 
10 
SEC. 39. Separability Clause. - Any portion or provision of this Act that rnay be 
11 
declared unconstitutional or invalid shall not have the effect of nullifying other portions 
12 
or provisions hereof, as long as such remaining portions or provisions can still subsist 
13 
and be given effect in their entirety. 
14 
SEC. 40. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
15 
complete publication in the Official Gazette or in at least two (2) newspapers of general 
16 
circulation. 
Approved, 
15