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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
The absence of a uniform set of standards for valuation of land in the 
country has caused the existence of multiple, unrealistic, and corruption-prone 
system of land valuation. This in turn has generated inefficiencies in the 
allocation and utilization of the land market, lack of confidence of the public and 
investors on the real property sector, and, above all, loss of income and 
unrealized revenues from real property for the Philippine Government. Estimated 
to contribute 50 percent to the national wealth, the land market contributes only 
6.6 percent and national revenues from real estate transactions have been 
consistently going down over the years. 
There are at least twenty-three (23) national government agencies 
undertaking real property valuation, each using its own system, and methodology 
for its own purpose, (Le. the Bureau of Internal Revenue (BIR) with its zonal 
values for various national land tax transactions like capital gains tax, estate tax, 
and documentary stamp tax, the DPWH for expropriation of real property, etc.). 
The Local Government Units (LGUs) likewise prepare, legislate, and implement 
their own schedules of market values (SMVs) on which the assessment of real 
property tax is based. Thus, the same property is given different values 
depending on the nature and purpose for valuation, confounding the property 
owners and the public, and making valuation susceptible to political influence and 
corruption. The zonal values of the BIR are generally 25 percent higher than the 
SMVs of the LGUs. But even this higher level was found out to be 25 to 70 
percent lower than the prevailing market prices. The national and local 
governments are thus deprived of much needed revenues from a most stable 
and convenient source due to these rampant undervaluations. 
Valuations used by both BIR and LGUs for taxation purposes are also 
outdated. While the Local Government Code requires the LGUs to revise their 
SMVs every three years, this is hardly observed. The same is true for the BIR 
which has no statutory requirement to revise its zonal values. The situation does 
not also provide equity and fairness to taxpayers as well as to property owners, 
nor is it conducive to encouraging investments and confidence in the land 
market. 
The Valuation Reform Act (VRA) seeks to address these problems. It 
seeks to establish uniform and internationally-accepted standards for the 
valuation of real property in the country. It also adopts market value as a single 
real property valuation base for the assessment of real property related taxes. 
The proposed measure also establishes market value for valuing or appraising 
real property for various government purposes. Reform is also introduced by 
separating the function of appraising and assessment of property from tax policy 
and tax administration. For this purpose a National Valuation Authority (NVA) is 


being proposed to be created to regulate and have oversight of the valuation and 
appraisal of real property in the country. This would also ensure that a nationally 
consistent, equitable, and impartial valuation system of real property for taxation 
and other purposes is put in place. Hopefully, such will result in broadening the 
valuation base of real property for taxation and thus contribute to improving the 
national income for the country’s social and economic development. 
As a necessary support to improving the valuation system and keeping it 
abreast 
with 
international 
standards 
and 
practices, 
assessors 
are 
professionalized and insulated from undue political intervention by setting the 
qualifications standards for their appointment. 
In view of the foregoing, the passage of this bill is earnestly requested 
Senator 


., 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
I 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Senator Biazon 
AN ACT 
INSTITUTING REFORMS IN THE REAL PROPERTY VALUATION AND 
ASSESSMENT PRACTICES IN THE PHILIPPINES AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
ARTICLE I 
TITLE, DECLARATION OF POLICY AND OBJECTIVES, 
AND DEFINITION OF TERMS 
SEC. 1. Short Title. - This Act shall be known as the "THE REAL PROPERTY 
VALUATION REFORM ACT OF 2007." 
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 system 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 and assessment of real 
properties from the function of tax policy and administering the taxes due 
thereon; 
(d) Develop and professionalize the valuation or appraisal practice in the 
country; 
1 


(e) Provide a comprehensive and up-to-date electronic database of all real 
property transactions; 
(9 Support the development of a “body of knowledge” on valuation systems 
by continuing research and monitoring of new developments in the 
valuation discipline for upgrading the country’s valuation system and 
making it abreast with global developments; and 
(9) 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 
valuationlappraisal; specifically, one who possesses the necessary 
qualifications, ability, and experience to execute or direct the 
valuationlappraisal of real or personal property; 
(b) Assessor - a government officer who conducts appraisal and assessment 
(c) Building - a man-made structure permanently attached to land for 
of real properties for taxation purposes. 
residential, commercial, industrial, recreational or other purposes. 
(d) Improvements - buildings or other more or less permanent structures or 
developments located upon or attached to land. 
(e) Land - 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. 
(9 Machinery - shall 
embrace 
machines, 
equipment, 
mechanical 
contrivances, instruments, appliances or apparatus which may or may not 
be attached, permanently or temporarily, to the real property. 
(9) Market Value - shall refer 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 knowledgeable, prudently, 
and without compulsion; 
2 


(h) Private appraisal sector - refers to licensed non-governmental real estate 
service practitioners, whether in institutional or individual capacity, who 
have been active in the practice of real estate service for the last five (5) 
years. 
(i) Real Estate - is defined as the physical land and all those items which are 
attached to the land. It is the physical, tangible entity which can be seen 
and touched together with all the additions or improvements on, above or 
below the ground. 
the ownership of real estate; 
(j) Real Property - includes all the rights, interests, and benefits related to 
(k) Special Purpose Properties - are properties which are 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. 
(I) Valuation/Appraisal - the systematic and analytic determination and 
recording of property facts, circumstances and investments and 
investigation of other relevant data resulting in a supportable estimate and 
opinion of value, A professional conclusion based upon supporting data, 
logical analysis and judgment. 
ARTICLE II 
Chapter I. 
- ESTABLISHING A NATIONAL VALUATION AUTHORITY 
SEC. 4. Establishing a National Valuation Authority. - To achieve the policy 
and objectives declared in this Act, there shall be established a National 
Valuation Authority, 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 Bureau of Local Government Finance (BLGF) shall serve 
as the nucleus of the Authority. The Authority shall be attached to the 
Department of Finance. The Authority 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: 
(a) Develop, adopt, and maintain valuation standards consistent with 
generally accepted valuation standards, regulations and specifications for 
3 


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 prepared by the 
provincial and city assessors, including the municipal assessors 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 
when requested, the vaJuation/appraisaJ of special purpose properties for 
real property tax purposes; 
(d) Provide leadership and policy directions to local government units, 
national government agencies, private sector institutions and individuals 
dealing with real property valuation/appraisal including the development 
and 
maintenance 
of 
valuation 
standards, 
the 
regulation 
of 
valuationlappraisal activities and other related matters, and the promotion 
of valuation/appraisal education and continuing educational development 
programs; 
(e) Recommend to the approving authority, the appointment of qualified 
persons for local government assessors and maintain a roster of 
assessors; 
(9 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; 
(9) Conduct continuing study and research on valuation system, and maintain 
an information base on current global and country trends and 
developments in real property valuationlappraisal; 
(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. 
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 
(IO) years experience in valuation/appraisal or assessment of real properties. 
4 


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 policies, plans, programs, and operating standards for the 
(b) Provide policy direction and leadership in all aspects of valuation and their 
attainment of the objectives and mandate of the Authority; 
implementation in the regional offices; 
(c) Advise and assist the Secretary of Finance on matters pertaining to real 
property valuation/appraisal and assessments; 
(d) Exercise administrative supervision over the national and regional offices, 
and provide technical supervision 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) Bureau of Local Government Finance (BLGF); 
2) Bureau of Internal Revenue (BIR); 
3) Department of Environment and Natural Resources (DENR); 
4) Bangko Sentral ng Pilipinas (BSP); 
5) National organization of government assessors; 
6) Private appraisal sector; 
(b) They shall be appointed by the President of the Philippines from the 
nominees of the respective Department Secretaries from officials 
performing valuation-related functions. The representatives from the 
national organization of government assessors and the private sector shall 
be appointed from the nominees of the national government assessors 
and private appraisers' organizations. 
(c) The President of the Philippines shall appoint the Chairman of the Board 
from among the members representing the Department of Finance (DOF). 
5 


(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 Director General 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. 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 and shall have the 
recommendatory power on the following: (a) adoption of the valuation standards; 
(b) setting, maintenance, and compliance monitoring of the valuation standards 
prepared and developed pursuant to Section 15 of this Act: and (c) preparation, 
review and approval of the Schedule of Market Values mentioned in Section 17 
of this Act. 
Chapter 2. - ORGANIZATION OF THE AUTHORITY'S REGIONAL OFFICES 
SEC. 10. Regional Offices. - There shall be established in every administrative 
region of the country a Regional Office 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 
valuationlappraisal or assessment of real property. The Regional Director shall 
have a salary grade equivalent to Director 111 under the Salary Standardization 
Law. 
SEC. 11. Functions of the Regional Director. - The Regional Director shall 
have the responsibility for all issues relating to valuation and Schedules of 
Market Values in the region. As such, he/she shall: 
(a) Implement laws, policies, plans, programs, rules and regulations of the 
Authority in the Region; 
(b) Provide economical, efficient, and effective service relating to the 
Authority's mandate to local government units and government agencies 
within the region; 
6 


(c) Coordinate with regional offices of other government departments, 
bureaus, and agencies within the region dealing with real property 
valuation/appraisal and assessment; 
(d) Provide leadership and direction in the area of real property 
valuation/appraisal and assessment to local government units in the 
region; 
(e) 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. 
(9 Perform other functions as may be assigned by the Director General. 
SEC. 12. The Regional Director as Next in Rank to Director General. - The 
Regional Directors collectively 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. 
SEC. 13. The NVA 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; 
and 
4) Private appraisal sector within the Region. 
Committee. 
(b)The Regional Director shall serve as ex officio Chairman of the 
(c) The members of the Consultative Committee, who shall be nominated by 
the Director General, shall be appointed by Secretary of Finance. The 
representatives from the concerned government agencies shall be 
recommended by the Regional Director, and the private appraisal sector 
representative shall be jointly recommended by the Regional Director and 
private appraisers' organizations in the region. 
(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 
7 


not receive additional salary for the performance of their functions but they 
shall be entitled to an honorarium 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. 14. Functions of fhe Committee. - The Committee is the counterpart of 
the Board at the regional level and shall advise the Regional Director on matters 
pertaining to the following: (1) preparation and review of the Schedule of Market 
Values pursuant to Section 18 of this Act: and (2) setting, maintenance, and 
compliance monitoring of the valuation standards prepared and developed 
pursuant to Section 15 of this Act. It shall recommend to the Regional Director 
the Schedule of Market Values for approval of the Director General. 
ARTlCLE Ill 
Chapter 1. VALUATlONlAPPRAlSAL AND ASSESSMENT 
OF REAL PROPERTIES 
SEC. 15. 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 governments and the private 
sector 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. 16. Va/uafion/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. 
8 


SEC. 17. Preparation of Schedule of MaPket Values. - Provincial, municipal 
and city assessors within the Metropolitan Manila Area, shall prepare a Schedule 
of Market Values for the different classes of real property and special purpose 
property situated within their respective local government units pursuant to the 
valuation standards and specifications set by the Authority. The said schedule 
shall be submitted by the assessor concerned to the Authority’s regional office for 
review and completion of the compliance report. The said schedule shall then be 
submitted to the Authority’s Central Office for approval. The Director General 
shall act within ninety (90) days upon receipt of the said schedule and inform the 
Regional Director and Assessor concerned of any action thereon within the said 
period, otherwise, the said schedule shall be deemed approved. The approved 
Schedule of Market Values shall be published in a newspaper of general 
circulation once a week for two consecutive weeks in the province, city or 
municipality concerned, or in the absence thereof, shall be posted in the 
provincial capitol, city or municipal hall and in two (2) other conspicuous public 
places therein and in the official website of the Authority. 
SEC. 18. Use of Schedule of Market Values. - The Schedule of Market Values 
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, and for other purposes. For purposes of 
computing any internal revenue tax, the BIR Commissioner shall adopt the 
schedule of market values or the actual price in consideration stated in real 
property transaction documents, whichever is higher. 
SEC. 19. Revision of Schedule of Market Values. - The Director General shall 
formulate the program for the regular revision of real property values. The 
provincial and city assessors, including the municipal assessors of Metro Manila, 
shall undertake a general revision of Schedule of Market Values not earlier than 
three (3) years from the date of last revision, but not later than five (5) years. In 
the event the provincial and city assessors, including the municipal assessors of 
Metro Manila, are unable to undertake the said revision, the Director General, 
after due consultation with the local government unit concerned, and upon 
determination that such extension is not contrary to or for the purpose of violating 
the provisions of this Act, may extend the validity of the Schedule of Market 
Values and property assessments. The provincial and city assessors, including 
the municipal assessors in Metropolitan Manila Area, shall recommend to the 
Authority revisions to the Schedule of Market Values in case there is significant 
9 


change in the market where the property is located after the said Schedule has 
been approved and prior to its next revision. The assessors of any municipality 
within the province shall also recommend revisions to the Schedule of Market 
Values through their provincial assessors. To ensure the implementation of the 
general and regular revisions of the Schedule of Market Values pursuant to this 
Act, local Sanggunians shall appropriate the necessary funds therefor. 
Chapter 2. DEVELOPMENT AND MAINTENANCE OF 
REALPROPERTYDATABASE 
SEC. 20. Development of Real Property Database. - The Authority 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 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 of Deeds shall prepare and submit to the 
provincial and city assessors, including the municipal assessors in Metropolitan 
Manila Area, 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 himlher 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 
10 


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 Register of Deeds, Official issuing building permit and Geodetic 
Engineers to the Regional Office of the Authority within one (I) 
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 Director 
General, and subject to the following guidelines: 
(a) Provincial and Assistant Provincial Assessors and City and Assistant City 
Assessors from the list of persons suitable and qualified for appointment 
within the Region; 
(b) Municipal and Assistant Municipal Assessors from the list of persons 
(c) City and Assistant City Assessors and Municipal and Assistant Municipal 
Assessors for the Metropolitan Manila Area from the list of persons 
suitable and qualified for appointment within the Metropolitan Manila Area. 
(d) The assessors shall be under the administrative and technical supervision 
of the Authority, primarily through a system of compliance reporting and 
provision for education and training for capacity building. 
suitable and qualified for appointment within the Province; and 
SEC. 26. Qualifications of Local Government Assessors. - No person shall 
be appointed assessor unless such person is a citizen of the Philippines, a 
11 


resident of the region for a provincial or city assessor and of the province for a 
municipal assessor, a licensed appraiser, of good moral character, a graduate in 
engineering, law, accounting, commerce or appraisal related degree, and must 
have experience in real property assessment work or in any related 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 continue 
to perform their functions without the need for reappointment and without 
diminution of status, rank and salary grade, and shall enjoy security of tenure. 
Those with temporary appointments are given the opportunity to qualify for 
permanent appointment as assessor for a period to be determined by the 
Authority upon the effectivity of this Act. 
ARTICLE IV 
TRANSITORY PROVISIONS 
SEC. 27. lmplementing 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 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, facilities, budgetary support and others. 
The 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, BLGF, BIR, 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) The positions specifically created for the Property Valuation Staff (PVS) in 
the Bureau of Local Government Finance (BLGF), with their incumbents, 
and records, equipment and appropriations provided for the PVS, as 
determined by a Task Force composed of the BLGF Executive Director, 
12 


as head, the NTRC Executive Director and the Director of the PVS, as 
members, are transferred to the Authority. 
SEC. 28. Saving Clause. - The zonal values as determined by the Bureau of 
Internal Revenue and approved by the Secretary of Finance for internal revenue 
tax purposes and the Schedule of Market Values prepared by the provincial and 
city assessors, including the municipal assessors of the Metropolitan Manila 
Area, 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 Schedule of Market Values approved in accordance with Section 17 of 
this Act, which shall be within two (2) years upon the effectivity of this Act. 
SEC. 29. Budgetary Requirements. - There is hereby appropriated from the 
General Fund the amount of Seventy Million Pesos (Php70,000,000.00) for the 
expenses to be incurred by the Ad Hoc Committee in carrying out the functions of 
the Authority and for the initial operations of the Authority. Thereafter, such funds 
as may be necessary for the continuing operations of the Authority shall be 
included in the annual General Appropriations Act. 
ARTICLE V 
PENAL PROVISIONS 
SEC. 30. 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 (I) 
year, or 
both, at the discretion of the competent authority. 
SEC. 31. 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) year, or permanent revocation of 
hislher license at the discretion of the competent authority. 
13 


SEC. 32. Failure to Prepare Schedule of Market Values. - An assessor who, 
for unjustifiable reasons, intentionally or deliberately refuses or fails to prepare 
the Schedule of Market Values 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. 33. Violations of Other Provisions. - Any person who violates any 
provision of this Act other than those punishable under Sections 30, 31, and 32 
hereof shall, when warranted, be dealt with under applicable existing laws. 
ARTICLE VI 
MISCELLANEOUS PROVISIONS 
SEC. 34. lmplementing Rules and Regulations. - The Secretary of Finance, 
upon the recommendation of the Director General, shall issue, within ninety (90) 
days after the organization of the Authority, the rules and regulations for the 
effective implementation of this Act. 
SEC. 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. 
SEC. 36. 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 (I) of 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 (o), 201, 202, 203, 209 (a), 212, 214, 217, 
219, 220, 224, 225, 443 (d), 444 (b) (1) (v), 454 (d), 455 (b) (1) (v), 463 (d), 465 
(b) (1) (v), 472, and 473 of the LGC, and Section 88 (B) 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. 37. Separability Clause. - Any portion or provision of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other 
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portions or provisions hereof, as long as such remaining portions or provisions 
can still subsist and be given effect in their entirety. 
SEC. 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. 
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