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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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SENATE 
S.B. No. ~190 
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Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
One of the main issues contributing to the inefficiency of the Philippine real 
estate market is the current valuation system. This, in turn, 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 f:1ppraising 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. 
These concerns, among other things, are desired to be addressed by this proposed 
legislation. Ultimately, this bill seeks to support the development and professionalization 
of the valuation/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. 


'''; f ,'. ('~. r f 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
~«:t: OF '·'·r<t. 
'~f:.c..Hf.T/\D~ 
First Regular Session 
SENAl'i 
S.B. No. 
~ 90 
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~!f'e<'!l/r<:1) ~v <_:':--~~" 
Introduced by Senator Ramon Bong Revilla, Jr. 
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 House of Representatives of the Philippines in 
Congress assembled: 
SEC. 1. Short Title. - This Act shall be known as the "THE REAL PROPERTY 
• 
VALUATION REFORM ACT OF 2009." 
ARTICLE I 
DECLARATION OF POLICY AND OBJECTIVES, 
AND DEFINITION OF TERMS 
SEC. 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) Establish and maintain valuation standards to govern the 
valuation of real property in the country; 
(b) Adopt market value as the 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; 
(c) Separate the function of valuing or appraising of real 
properties 
from 
the functions 
of tax policy and 
administering the taxes due thereon; 
1 
,,, 


mean: 
(d) Support the development and professionalization of the 
valuation/appraisal practice in the country pursuant to 
Republic Act No. 9~46; 
(e) Provide a comprehensive and up-to-date electronic 
database of all real property transactions; 
(f) 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 
(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 
(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. 
(b) Assessor - refers to an official in the local government 
unit, 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 the major factors of production 
consisting sometimes of a material economic good, 
2 


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 
marketing 
wherein 
the 
parties 
had 
each 
acted 
knowledgeably, prudently, and without compulsion; 
(h) Private appraisal sector -
refers to licensed non-
governmental real estate service practitioners who have 
been active in the practice of real estate appraisal for the 
last five (5) 3 years. 
(i) Real Estate - refers 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. 
(j) Real Property - refers to all the rights, interests, and 
benefits related to the ownership of real estate, plant, 
machinery, and equipment; 
3 


(k) Schedule of Market Values or SMV • refers to a table of 
market values 
of real 
properties within 
a local 
government unit prepared by assessors pursuant to 
existing laws, rules and regulations. 
(I) Special Purpose Property. refers to a property which 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/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 
NATIONAL VALUATION AUTHORITY AND THE REGIONAL OFFICES 
Chapter 1 
Establishing a National Valuation Authority 
SEC. 4. Establishment of a National Valuation Authority . . To achieve the 
policy and objectives declared in this Act, there shall be established a National 
Valuation Authority (NVA) , hereinafter referred to as the Authority, which shall be the 
primary agency of the government on matters concerning the valuation or appraisal of 
real properties in the Philippines. The Property Valuation Staff (PVS) established within 
the Department of Finance (DOF) shall serve as the nucleus of the Authority. The 
Authority shall be attached to the DOF and shall have its central office in Metro Manila. 
SEC. 5. Powers and Functions of the Authority. - The Authority shall have the 
following powers and functions: 
4 


(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 national government agencies 
local government units, and other concerned parties; 
(b) Review and approve the Schedule of Market Values 
(SMVs) prepared by the provincial assessors together 
with municipal assessors, and city assessors, including 
the municipal assessor of Metro Manila, for tax and 
other purposes; 
(c) Provide technical assistance on real property appraisal 
matters to government agencies and instrumentalities, 
and coordinate or conduct the valuation/appraisal of 
special purpose properties, when requested; 
(d) Provide leadership and policy directions to local 
government 
units, 
national 
government agencies, 
private sector institutions and individuals dealing with 
real property valuation/appraisal for taxation and other 
purposes, including the development and maintenance 
of 
valuation 
standards, 
the 
regulation 
of 
valuation/appraisal activities and other related matters, 
and the promotion of valuation/appraisal training and 
seminars; 
(e) Maintain a roster of 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/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. 
5 


SEC. 6. Head of Authority. - The Authority shall be headed by a Director 
General who shall be appointed by the President of the Philippines upon the 
recommendation of the Secretary of Finance. The Director General must be a Filipino 
citizen, of good moral character, a graduate in engineering, accounting or appraisal 
related degrees, and a licensed appraiser, or assessor, with at least ten (10) years 
experience in valuation/appraisal or assessment of real properties. The Director 
General shall have the salary grade equivalent to the rank of an ASSistant Secretary 
under the Salary Standardization Law. 
SEC. 7. Responsibilities of the Director General. - The Director General shall 
be responsible for the efficient and effective performance of the statutory responsibilities 
of the Authority set forth in this Act and for the overall internal management and 
governance of the Authority. For this purpose, the Director General shall: 
(a) Develop and implement policies, plans, programs, and 
operating standards for the attainment of the objectives 
and mandate of the Authority; 
(b) Provide policy direction and leadership in all aspects of 
valuation/appraisal and their implementation in the 
regional offices; 
(c) Advise and assist. the Secretary of Finance and other 
government agencies on matters pertaining to real 
property valuation/appraisal; 
(d) Exercise administrative supervision over the central and 
regional offices, and provide technical assistance over 
the local government assessors; and 
(e) Perform such other functions as may be provided by law, 
or required in pursuance of the law or the demand of the 
statutory responsibilities of the Authority. 
SEC, 8, Creation of an Advisory Board, - (a) There shall be created an 
AdVisory Board, hereinafter referred to as the Board, composed of a representative 
each from the: 
1) Department of Finance (OOF); 
2) Bureau of Local Government Finance (BLGF); 
3) Bureau of Internal Revenue (BIR); 
4) Department of Environment and Natural Resources (DENR); 
6 


5) Bangko Sentra/ ng Pilipinas (SSP); 
6) National organization of government assessors; 
7) Private appraisal sector; 
8) Union of Local Authorities of the Philippines (ULAP); and 
9) The Director General as an ex officio member. 
(b) The member-representatives from the DOF, BLGF, BIR, and DENR 
shall be appointed by the President of the Philippines from the nominees 
of the respective Department Secretaries from officials performing 
valuation-related functions whereas the member-representative from the 
BSP shall be appointed by the Bangko Sentra/ Governor. The 
representatives from the national organization of government assessors, 
the private sector, and ULAP shall be appointed by the President from the 
nominees of the national government assessors, private appraisers' 
organizations, and ULAP, respectively. 
(c) The President of the Philippines shall appoint the Chairman from 
among the government member-representatives of the Board. The 
Authority shall provide the secretariat and other support services to the 
Board. 
(d) The members of the Board shall 'serve for a maximum of three (3) 
years. In case of vacancy in the Board, the person so appointed or 
designated shall 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 pursuant to existing laws and regulations. 
(e) The Board shall meet at the initiation of the Chairman or any Board 
Member at least once every three (3) months. It shall have as many 
special meetings as it may deem necessary for the performance of its 
functions and may require the presence of representatives from 
concerned agencies wnenever necessary. The Board shall also formulate 
and adopt its internal rules and regulations for the conduct of its meetings. 
SEC. 9. Functions of the AdviSOry Board. - The Board shall advise the 
Director General on matters pertaining to valuation/appraisal and shall have the 
recommendatory power on the following: 
7 


(a) Adoption of the valuation standards; and 
(b) Setting, maintenance, and compliance monitoring of the 
valuation standards prepared and developed pursuant to 
Section 14 of this Act. 
Chapter 2 
, 
Organization of the Authority's Regional Offices 
SEC. 10. Establishment of Regional Offices. - There shall be established in 
every administrative region of the country a Regional Office of the Authority, headed by 
a Regional Director who shall be appointed by the Secretary of Finance upon the 
recommendation of the Director General. The Regional Director must be a Filipino 
citizen, of good moral character, a graduate in engineering, accounting or appraisal 
related degrees, a licensed appraiser, or assessor, with at least five (5) years of 
experience in valuation/appraisal or assessment of real property. The Regional Director 
shall have a salary grade equivalent to Director III under the Salary Standardization 
Law. 
The Regional Directors collectively shall serve as a corps of officers that 
constitute the next in rank to the Director General and designation to the Director 
General's office may be made from their ranks. 
There shall be a phased implementation of the Regional Offices. 
SEC. 11. Functions of the Regional Offices. - The Regional Offices, under the 
Regional 
Director, 
shall 
have 
the 
responsibility 
for 
all 
issues 
relating 
to 
valuation/appraisal and SMVs in the region, such as: 
(a) Implement laws, policies, plans, programs, rules and 
regulations of the Authority in the Region; 
(b) Review and recommend the approval of the proposed 
SMVs prepared by the provincial assessors together with 
, 
the municipal assessors, and city assessors, including 
the municipal assessor of Metro Manila, for tax and other 
purposes; 
(c) Provide economical, efficient, and effective service 
relating to the Authority's mandate to all government 
agencies and other concerned parties within the region; 
8 


(d) Coordinate with regional offices of other government 
departments, bureaus, and agencies within the region 
• 
dealing with real property valuation/appraisal; 
(e) Provide leadership and direction in the area of real 
property valuation/appraisal to local government units in 
the region; 
(f) Adopt and maintain 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 local government assessors; and 
(g) Perform other functions as may be assigned by the 
Director General. 
SEC. 12. The Regional Consultative Committee. - (a) There shall be created in 
every administrative region a Regional Consultative Committee, hereinafter referred to 
as the Committee, composed of a representative each from: 
1) Bureau of Local Government Finance - Regional Office; 
2) Bureau of Internal Revenue - Regional Office; 
3) Department of Environment and Natural Resources -Regional 
Office; 
4) Regional organization of government assessors; 
5) Private appraisal sector within the region; and 
6) Regional banking association. 
(b) The members of the Regional Consultative Committee shall elect the 
Chairman from among themselves. 
(c) The members of the Regional Consultative Committee must be 
• 
performing 
valuation/appraisal 
related 
functions, 
and 
shall 
be 
appointed by the Regional Director of the agency concerned, while the 
representative from the organization of government assessors, private 
appraisal sector, and banking association within the region shall be 
appointed by the head of their respective organization. 
(d) The members shall serve for a maximum of three (3) years, otherwise 
shortened or terminated by the appointing authority. In case of vacancy 
in the Committee, the person so appointed or deSignated shall serve 
only for the unexpired term. The chairperson and members of the 
Committee shall not receive additional salary for the performance of 
9 


; 
their functions but they shall be entitled to honoraria pursuant to 
existing laws and regulations. 
(e) The Committee shall meet on the initiation of the Regional Director or 
any of the Board Members at least once every three (3) months. It 
shall have as many special meetings as it may deem necessary for· the 
performance of its functions. The Committee shall also formulate and 
adopt its internal rules and regulations for the conduct of its meetings. 
SEC. 13. Functions of the Committee. - The Committee shall serve as a 
consultation forum in the region for discussion on property market reports; concerns of 
taxpayers, civil society, and other stakeholders; outcorne of Compliance Reporting in 
the region; level of complaints and appeals; local government unit training in the region; 
appraiser and assessor concerns in general; and other matters as may be determined 
by the Committee. 
ARTICLE III 
VALUATION/APPRAISAL OF REAL PROPERTIES 
Chapter 1 
Valuation Standards and Market Values 
SEC. 14. Development of Valuation Standards. -
Notwithstanding the 
provisions of existing laws to the contrary, the Authority shall develop, adopt, maintain 
and implement uniform valuation standards which shall be used by all appraisers and 
assessors of national and local government agencies and its instrumentalities, and 
other concerned parties in appraising or valuing lands, buildings, machinery and other 
real properties for taxation and other purposes. The valuation standards must conform 
with the generally accepted valuation principles and internationally accepted standards. 
SEC. 15. Valuation/Appraisal of Real Property. - For valuation purposes, all 
real property, 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 Authority shall promulgate the rules 
and regulations for the classification and valuation/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. 
10 


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, 
SEC. 16. Preparation of Schedule of Market Values. - Provincial assessors 
together with municipal assessors, and city assessors, including the municipal assessor 
in Metro Manila, shall prepare the SMVs for the different classes of real property 
situated within their respective local government units, pursuant to the valuation 
standards and specifications set by the Authority. The said SMVs shall be submitted by 
the assessor concerned, upon proper information to the local chief executive and the 
Sanggunian, to the Authority's Regional Office for review and compliance with other 
requirements. The said SMVs shall then be submitted to the Authority's Central Office 
for approval within sixty (60) days from receipt thereof. The Authority shall review and 
approve the SMV within thirty (30)' days upon receipt of the same; otherwise, said 
schedule shall be deemed approved. 
The Authority shall transmit the approved SMV 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 revenue impact 
report of the new SMV as against the existing assessment levels and tax rates, and 
shall provide the Sanggunian, through the Chairman of the Committee on Ways and 
Means, a copy of such report. The local chief executive shall transmit the approved 
SMV together with the revenue impact report within fifteen (15) days from receipt of the 
same to the Sanggunian for the enactment of an Ordinance setting the 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 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 within 
the prescribed period to act on the Ordinance shall render the same approved. 
The approved Ordinance together with the SMV shall be published by the 
concerned Local government unit in a newspaper of local circulation once a week for 
two consecutive weeks: Provided, ,however, That in provinces, cities and municipalities 
11 


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. The Authority shall also publish the approved SMV on its official website. 
SEC. 17. Use of Schedule of Market Values. - The SMV as approved by the 
Authority shall be used for the general revision of real property values and as basis for 
the determination of real property related taxes imposed by the national and local 
governments. For purposes of computing any internal revenue tax, the BIR 
Commissioner shall adopt the SMV or the actual price in consideration as stated in real 
property transaction documents, whichever is higher. 
SEC. 18. Revision of Schedule of Market Values. - The Authority shall 
formulate the program for the regular revision of SMVs. All provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, shall undertake a revision of their respective SMVs within two 
(2) years from the establishment of the Authority. Thereafter, they shall undertake a 
revision of SMVs not earlier than three (3) years from the date of 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 SMV has been approved and prior to its next revision, the provincial assessors 
together with the municipal assessors, and city assessors, including the municipal 
assessor in Metro Manila, may recommend to the Authority revisions to their existing 
SMV. 
SEC. 
19, 
Conduct of Training and Seminars. 
-
For the effective 
implementation of this Act, the Authority shall conduct the necessary trainings and 
seminars for all local assessors and other local officials/staff on the preparation of SMV 
in accordance with internationally accepted valuation standards, concepts, principles 
and practices, income projections based on property taxes and other tax administration 
matters. 
Chapter 2 
Development and Maintenance of 
Real Property Database 
SEC. 20. Development of Real Property Database. - The Authority shall 
develop and maintain an up-to-date electronic database of the sale, exchange, lease, 
12 


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· Authority is hereby authorized to require· the 
mandatory submission of necessary documents from the concerned officials or 
employees of national government offices or instrumentalities, local government units, 
and the private sector. The updated database shall be made available to the local 
government units, national government agencies, and the private sector as well. 
SEC. 21. Duty of Register of Deeds to Supply Assessors of Real Property 
Transactions Data. - The Register 9f Deeds shall prepare and submit to the provincial 
and city assessors, including the municipal assessor in Metro Manila, an abstract of his 
registry every three (3) months and copies of all contracts selling, transferring or 
otherwise converting, leasing, or mortgaging real property registered by him/her 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. 
SEC. 22. 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. 
SEC. 23. Duty of Geodetic Engineers to Furnish Copy of Plans to 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 
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. 
SEC. 24. Duty of Assessors to Transmit Documents to the Authority. - It 
shall be the duty of the assessors to transmit all real property transactions data from the 
13 


Register of Deeds, official issuing building permit and geodetic engineers to the 
Regional Office of the Authority within one (1) month after the receipt of such data, The 
Authority's Regional Office shall record, process and make a summary report of the real 
property data, and submit the same to the Central office within one (1) month from 
receipt of such data, 
Chapter 3 
Appointment and Qualifications of Assessors 
SEC. 25. AppOintment of Assessors. - The Secretary of Finance shall appoint 
provincial, city, and municipal assessors, upon recommendation of the local chief 
executive, subject to 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, 
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, appoiqtee 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 concerned 
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 
14 


good moral character, a graduate in engineering, accounting, commerce or appraisal 
related degree, and must have an 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, pursuant to the 
provisions of Republic Act No. 9646, otherwise known as the Real Estate Service Act. 
In accordance with Section 30 of Republic Act No. 9646, within three years from 
the effectivity of this Act all existing and new positions in the national and local and local 
governments, whether career, permanent, temporary or contractual, and primarily 
requiring the services of any real estate service practitioner, shall be filled only by 
registered and licensed real estate service practitioners. 
All incumbent assessors/assistant assessors holding permanent appOintments 
shall continue to perform their functions without need for reappointment and without 
diminution of status, rank and salary grade, and shall enjoy security of tenure. However, 
they may not be promoted to a higher position until they meet the qualification 
requirements of that higher position as herein prescribed. Nothing in this Act shall be 
• 
construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time 
of the enactment of this Act. The appointing authority shall exercise his power to appoint 
the assessor in accordance with the provisions of Republic Act No. 9646 only when a 
vacancy occurs. 
ARTICLE IV 
PENAL PROVISIONS 
SEC. 27. Failure to Comply with the Required Submission of Documents. -
Any government offiCial or employee who fails without justifiable reason or reasons to 
provide or furnish data or information required by the Authority pursuant to Sections 21. 
22. 23 and 24 of this Act shall be punished by a maximum fine equivalent to the official's 
or employee's six (6) months basic salary or suspension from service for a period not 
exceeding one (1) year, or both, at the discretion of the competent authority. 
SEC. 28. Failure to Comply with the Valuation Standards. - An assessor or 
appraiser who for unjustifiable reasons, fails to comply with the valuation standards 
prepared and adopted pursuant to this Act, or deliberately concealed any deviations or 
departures from such standards, shall be punished by a maximum fine equivalent to the 
official's or employee's six (6) months basic salary, and suspension from the 
government service or from the practice of profession for a period not exceeding one (1) 
15 


year, or permanent revocation of his/her license at the discretion of the competent 
authority. 
SEC. 29. Failure to Prepare Schedule of Market Values. - An assessor who, 
for unjustifiable reasons, intentionally or deliberately refuses or faifs to prepare the 
SMVs within the period required by the Authority shall be punished, upon conviction, by 
a maximum fine equivalent to the official's or employee's six (6) months basic salary or 
by suspension from government service for not more than one (1) year, or both, at the 
discretion of the competent authority. 
SEC. 30. Violations of Other Provisions. - Any person, whether natural or 
juridical, who violates any provision of this Act other than those punishable under 
Sections 27. 28, and 29 hereof shall. when warranted, be dealt with under applicable 
existing laws. 
SEC. 31. Taxpayers' Remedies in Case of Wrong Assessment 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. 7661, 
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 
SEC. 32. TranSitory GUidelines. - Within ninety (90) days upon the effectivity of 
this Act. the Authority's Central Office shall be organized. The President of the 
Philippines shall appoint the Director General upon the recommendation of. the 
Secretary of the Department of Finance . 
• 
(a) The Director General shall organize the Board pursuant 
to Section 8 of this Act within thirty (30) days upon the 
organization of the Authority. 
(b) An Ad Hoc Committee is hereby created which shall be 
responsible for the formulation of the Authority's 
Organization, 
Staffing, 
and 
Implementation 
Plan, 
including the selection and. placement of personnel, 
taking into consideration the organizational criteria such 
as, but not limited to, availability of qualified personnel, 
16 


facilities, budgetary support and others. The Ad Hoc 
Committee shall also be responsible for drafting the 
Implementing Rules'and Regulations (IRR) for this Act. 
The Ad Hoc Committee shall be composed of the 
Director 
General 
as 
ex-officio 
chairperson 
and 
representatives from the DOF, SLGF, SIR, National Tax 
Research Center (NTRC), and Land Administration and 
Management Project (LAMP), as members. 
(c) After the organization of the Authority's Central Office, 
the Authority's Regional Offices shall be organized. 
(d) All existing staff of the Property Valuation Staff (PVS) in 
the Department of Finance, records, equipment and 
appropriations provided for the PVS, as determined by 
• 
the Ad Hoc Committee based 
on the approved 
organization and staffing, shall be transferred to the 
Authority. 
(e) Local government units who 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 Authority shall be undertaken: 
Provided, finally, That the newly approved SMVs shall be 
in force and effect for a period of two (2) years. 
(f) In case the SMV is.not yet available or revised, the BIR 
Commissioner shall adopt the existing SMV or the actual 
price in consideration as stated 
in real property 
transaction documents, whichever is higher, for purposes 
of computing any internal revenue tax. 
SEC. 33. Saving Clause. - The zonal· values as determined by the SIR 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 city 
assessors, including the municipal assessors of the 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. 
17 


ARTICLE VI 
FUNDING REQUIREMENTS 
SEC. 34. Budgetary Requirements for Revision of Schedule of Market 
Values. - To ensure the proper implementation of the regular revisions of the SMVs and 
the administration of real property taxes in all local government units, each local 
Sanggunian shall appropriate the necessary funds equivalent to ten percent (10%) of 
the one percent (1 %) from the original allocation of the Special Education Fund (SEF). 
The amount so appropriated shall be known as the Real Property Tax Administration 
Fund (RPTAF). 
The proceeds from the share of the local government unit in the SEF shall 
automatically accrue to the RPTAF to be maintained in every provincial, city or 
municipal treasury offices. 
SEC. 35. Appropriations. - The amount necessary for the initial implementation 
of this Act shall be charged against the current appropriations of the Property Valuation 
Staff within the Department of Finance. Thereafter, such sum as may be necessary for 
the Authority's continuing operations and the proper implementation of this Act shall be 
included in the annual General Appropriations Act. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SEC. 36. Implementing Rules and Regulations (IRR). - The Secretary of 
Finance, taking into account the recommendation of the Ad Hoc Committee created 
under this Act and in consultation with other concerned parties, shall issue the IRR for 
the effective implementation of this Act. 
SEC. 37. 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. 
SEC. 38. Repealing Clause. ~ 
(a) 
Section 6(E) of Republic Act No. 8424, otherwise known as the National 
Internal Revenue Code (NIRC), as amended, and Section 199(1) of 
18 


,. 
Republic Act No. 7160, otherwise known as the Local Government 
Code (LGC) of the Philippines, are hereby repealed; 
(b) 
Sections 199(e), 199(m), 199 (0), 201,202,203, 209(a), 212, 214, 217, 
219, 220, 224, 225, 443(d), 444(b)(1 lev), 454 (d), 455(b)(1 )(v), 463 (d), 
465(b)(1 )(v), 472, and 473 of the LGC, and Section 88(S) of the NIRC 
are hereby 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. 
SEC. 39. Separability Clause. - Any portion or provision 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. 
SEC. 40. 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, 
19