Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND 
ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF 
LOCAL GOVERNMENT FINANCE, AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
One of the priority bills of President Ferdinand R. Marcos, Jr. in his 2022 State of the 
Nation Address (SONA) is the “Real Property Valuation and Assessment Reform Act.” 
This bill aims to introduce vital reforms to promote the development of a just, equitable, 
and efficient real property valuation system. The reforms will broaden the tax base 
used for property and property-related taxes of the national and local governments, 
thereby increasing government revenues without increasing the existing tax rates or 
devising new tax impositions.   
This bill also aims to address the following systemic problems: 
a. rampant outdated valuations used for governmental purposes;
b. cost overruns and foregone revenues due to low valuations used: overvaluation
when the government pays, undervaluation when the government collects;
c. valuation as a political issue;
d. multiple, overlapping valuations in different government agencies, and there is no
single agency responsible for ensuring that valuations are completed in accordance
with international standards; and
e. absence of a comprehensive real property electronic database.
August 31, 2022
8:54 am
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By improving the quality of valuation of local governments and making the revisions 
frequent, efficient, transparent, reliable, and attuned to market developments, this bill 
impacts favorably on revenue generation and resource mobilization of local 
governments to fund their service delivery requirement. The reforms are also expected 
to foster private investors’ confidence and build the trust of the public in the valuations 
of government. 
The Valuation Reform Bill provides for the: 
(a) establishment of real property values and valuation standards across the country;
and
(b) the development of a Real Property Information System that provides for the
database of all real property transactions and declarations in the country
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
INSTITUTING REFORMS IN REAL PROPERTY VALUATION AND 
ASSESSMENT IN THE PHILIPPINES, REORGANIZING THE BUREAU OF 
LOCAL GOVERNMENT FINANCE, AND APPROPRIATES FUNDS THEREFOR 
Be il enacted by the Senate and House the Representatives of the Philippines 
in Congress assembled, 
SECTION 1. Short Title. — This Act shall be known as the "Real Property Valuation 
and Assessment Reform Act". 
ARTICLE 1 
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 Slate shall: 
(a)
Establish and maintain 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 real property-related taxes in the country. and for the valuation of real 
property for various transactions by all government agencies: 
(c)
Promote the fiscal autonomy of local government units (LGUs) to provide
basic services to their constituency by enhancing their capacity to generate local 
revenues from the real property : 
4269


 
 
(d) 
Separate the function of valuation real properties from the functions of 
tax poli% formulation and the administration of the taxes due thereon; 
(e) 
Support the development and professionalization of the valuation 
practice in the country pursuant to Republic Act No. 9646. otherwise known as the 
"Real Estate Service Act of the Philippines", 
(D Provide a comprehensive and up-to-date electronic database Of all real 
property transactions: 
(g) Support the development of an information database on valuation through 
continuing research and monitoring of new developments in the discipline to upgrade 
the country's valuation system and be at par with global standards: and 
(h) Ensure transparency in real property transactions to protect the public interest. 
and develop confidence in the valuation system. 
SEC. 3. Definition of Terms. — As used in this Act: 
(a) Appraiser also known as a valuer. refers to a person who conducts valuation; 
specifically. one who possesses the necessary qualifications. license. ability, and 
experience to execute or direct the valuation of real property. 
(b) Assessed Value, also known as a taxable value, refers to the market value of 
the property multiplied by the corresponding assessment level; 
(c) 
Assessment refers to the act or process of determining the value of a 
property. or proportion thereof subject to taxation, including the discovery, listing, and 
classification. and appraisal of properties; 
(d) 
Assessment Level refers to the percentage applied to the market value 
to determine the taxable value of the property based on property classifications as 
prescribed in Republic Act No. 7160. otherwise known as the "Local Government 
Code of 1991- as amended  
(e) Assessor refers to the official or employee in the local government unit (LGU) 
who is a duly licensed appraiser. and performs appraisal and assessment of real 
properties. including plant, machinery, and equipment, for taxation and other 
purposes. This definition also includes assistant assessor; 
(f) 
Building refers to a man-made structure permanently attached to land for 
residential. commercial. industrial, recreational. or other purposes: 
(g) 
Improvement refers to a valuable addition made to a property or an 
amelioration its condition, amounting to more than a mere repair or replacement of 


 
 
parts. involving capital expenditures and labor intended to enhance its value. beauty. 
or utility. or to adapt it for new or further purposes; 
(h) 
Land refers to one of the major factors of production which is supplied 
by nature without the aid of man. Land may include not only the earth's surface, both 
land, and water. but also anything that is attached to the earth's surface including all 
natural resources in their original state, such as mineral deposits, wildlife, and timber; 
(i) 
Internationally accepted valuation standards shall refer to generally 
accepted standards for the valuation of all types of assets including real estate plants 
and equipment. 
intangible assets and businesses which shall include. but not limited to. the 
international valuation standards; 
 International valuation standards shall refer to standards for undertaking 
valuation assessments using generally recognized concepts and principles that 
promote transparency and consistency in evaluation practice as determined by the 
International Valuation Standards Council. 
(k) Machinery refers to machines, equipment, and mechanical contrivances. 
instruments. appliances, or apparatus which may or 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 is 
actually, directly. and exclusively used to meet the needs of the particular industry, 
business, or activity, and which by their nature, and purpose are designed for or 
necessary to its manufacturing. mining. logging. commercial. industrial or agricultural 
purposes; 
(l) Market Value refers to the estimated amount for which property shall exchange 
on the date of valuation between a willing buyer and a willing seller in an arms-length 
transaction which is a transaction between independent. unrelated parties involving 
no irregularity. after proper marketing. wherein the parties had each acted 
knowledgeably. prudently, and without compulsion; 
(m)Private appraisal sector refers to licensed nongovernmental real estate 
service practitioners; 
(n) 
Real 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; 


 
 
(o) 
Real property refers to all rights. interests and benefits related to the 
ownership of the real estate. It is a legal concept distinct from real estate, which is a 
physical asset: 


 
 
(p) 
Schedule of Market Values. hereinafter referred to as SMV. refers to a 
table of base unit market values for all kinds of real property. Except for machinery 
within an LGU prepared by assessors pursuant to existing laws. rules and regulations; 
(q) 
Special purpose property refers to a property that is designed, 
constructed, and developed for a specific use or purpose. By its very nature, this type 
of property is rarely offered for sale in the open market except as part of a going 
concern since its special design and function renders conversion to other types Of 
development or application not economically feasible: and 
(r) Valuation, also known as appraisal, refers to the systematic, analytic and 
logical analysis of the recording of property facts. circumstances, investments, and 
other relevant data resulting in a supportable estimate or professional opinion of the 
value of the property as of a specific date and for a specific purpose. 
ARTICLE 11 
THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF) 
Chapter 
BLGF Central Operations 
SEC. 4. Powers and Functions of the Bureau of Local Government Finance (BLGF). 
— The BLGF of the Department of Finance (DOF) shall lead and manage the 
implementation of the provisions of this Act. In addition to the powers vested upon it 
by Executive Order No. 292. Otherwise, known as the "Administrative Code of 1987", 
it shall exercise the following additional powers and functions: 
(a) Develop. adopt, and maintain valuation standards consistent with 
internationally accepted valuation standards, regulations, and specifications for real 
property appraisal used for taxation and other purposes. and ensure compliance 
therewith by LGUs and other concerned parties; 
(b) 
In coordination with the Bureau of Internal Revenue. and ensure that the 
Schedule of Market Values (SMVs) as prepared by the provincial assessors together 
with the municipal assessors. and the city assessors, including the Ione municipal 
assessor in the Metropolitan Manila Area is compliant with real property valuation 
policies and standards. and recommend its approval to the Secretary of Finance for 
local and national taxation. and for other purposes; 


 
 
 
(c) 
Provide technical assistance on real property appraisal matters to 
government agencies and instrumentalities, and coordinate or conduct the valuation 
of special purpose property, when requested; 
(d) 
Provide leadership and policy direction to LGUs on real property 
valuation for taxation and other purposes. including the development and maintenance 
of internationally accepted valuation standards, the regulation of valuation activities 
and other related matters. and the promotion of valuation training and seminars; 
(e) 
Maintain a roster of licensed local government appraisers and assessors 
In consultation and coordination with the Professional Regulation Commission: 
(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 in valuation, and maintain 
information on current global and country trends and developments in real property 
valuation, 
(h) 
Formulate and provide for the uniform procedure on the different 
transactions in the assessors’ office. including the transfer, and annotation. and 
issuance of tax declarations: 
(i) 
Determine, fix, and collect a reasonable amount to be charged as 
administration fees, and 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. 5. Establishment of the Real Property Valuation Service. To achieve the policies 
and objectives declared in this Act, the Real Property Valuation Service, hereinafter 
referred to as the RPVS is hereby established within the BLGF and shall have 
counterpart personnel in the BLGF Regional Offices. 
SEC. 6. Supervisory Role of the BLGF Executive Director over the RPVS. — The 
BLGF Executive Director shall be responsible for the efficient and effective day-to-day 
performance of the responsibilities set forth in this Act. and for the overall internal 
management and governance of the RPVS. 


 
 
SEC. 7. 
Creation of a Central Consultative Committee.  
(a) A Central Consultative Committee shall be created and shall serve as the 
consultative forum on matters pertaining to the setting and adoption of internationally 
accepted valuation standards and other related concerns on real property valuation; 
(b) It shall be chaired by the BLGF Executive Director and shall be 
composed of a representative each from the; 
(1) Bureau of Internal Revenue (BIR); 
(2) Department of Environment and Natural Resources (DENR); 
(3) Bangko Sentral ng Pilipinas (BSP); 
(4) National organization of government assessors; 
(5) National organization of appraisers in national government agencies; and 
(6) Private appraisal sector: 
Provided That the representative from the private appraisal sector shall be active 
in the practice of real estate appraisal for at least five (5) years as certified by the 
Professional Regulatory Board of Real Estate Service (PRBRES). 
(c) The representatives of the BIR, DENR, and BSP must be performing 
valuation-related functions. The national organization of government assessors, and 
the private appraisal sector shall be represented by their respective heads of 
organizations or their duly qualified representatives; 
(d) The Chairperson and members of the Committee shall not receive additional 
salary for the performance of their functions. Members of the consultative committee 
who are not incumbent government officials or employees shall be entitled to 
honoraria. pursuant to existing laws and regulations: and 
(e) The Committee shall meet at the initiation of the Chairperson at least once 
every semester and shall have as many meetings as the Chairperson may deem 
necessary for the adoption of valuation standards. The Chairperson may invite 
resource persons on issues concerning real property valuation. 
Chapter 2 
BLGF Regional Operations 
SEC. 8. Role of the BLGF Regional Offices. - The BLGF Regional Offices, shall. 
through the Regional Director, be responsible for all matters relating to valuation and 
the supervision of the SMVs in the region. They shall: 


 
 
(a) 
Implement policies. plans. programs. rules and regulations on real 
property valuation of LGUs in the region  
(b) 
Review, in coordination with the BIR, and endorse to the RPVS. the 
proposed SMV s prepared by the assessors of the LGUs in the region: 
(c) 
Provide for economical. efficient and effective valuation services in the 
region: 
(d) 
Coordinate and consult with other government departments. bureaus 
and agencies within the region dealing with real property valuation; 
(e) Adopt and maintain a comprehensive and up-to-date electronic database of 
all regional real property-related transactions, and have custody of all transaction 
records submitted by local government assessors; and 
(f) Perform other functions as may be assigned by the BLGF Executive Director, 
SEC. 9. 
The Regional Consultative Committee. — 
(a) There shall be a Regional Consultative Committee that shall be chaired by 
the BLGF Regional Director and shall be composed of a representative from the: 
(1) BIR — Regional Office; 
(2) DENR - Regional Office: 
(3) Head of Regional organization of government assessors or its duly authorized 
representative; 
(4) Head of Regional organization of national government appraisers or its duly 
authorized representative; 
(5) 
Head of the private appraisal sector within the region or its duly 
authorized representative; and 
(6) 
Head of the bankers association within the region or its duly authorized 
representative, 
(b) 
The members of the Regional Consultative C01nmittee must be 
performing valuation-related functions in their respective agencies or sectors: and 
(c) 
The Committee shall meet at the initiation of the BLGF Regional Director 
at least once every quarter and shall have as many meetings as the BLGF Regional 
Director may deem necessary for the performance of its functions. The BLGF Regional 
Director may invite resource persons on issues concerning real property
 


 
 
SEC. 10. Function of the Regional Consultative Committee. The Regional 
Consultative Committee shall serve as a consultative forum in the region for discussion 
on developments in the local real property market: concerns of taxpayers. civil society- 
and other stakeholders: outcome of compliance reporting in the region; level of 
complaints and appeals: training of local government assessors in the region: 
appraisal and assessment concerns in General, and other matters as may be 
determined b) the Committee: Provided That any report thereof. as a result of the 
forum, shall be submitted to the Central Consultative Committee. 
ARTICLE 111 
VALUATION OF REAL PROPERTIES 
Chapter 1 
Valuation Standards and Market Values 
SEC. 11. Development of Valuation Standards. — Notwithstanding the provisions of 
existing laws to the contrary. the BLGF shall develop. adopt. maintain, and implement 
uniform valuation standards which shall be used by all appraisers and assessors in 
the LGUs and other concerned parties in the appraisal or valuation of lands. buildings, 
machinery and other real properties for taxation and other purposes. The valuation 
standards shall conform with internationally accepted valuation standards and 
principles. 
SEC. 12. Valuation of Real Property. — For valuation purposes. all real properties. 
whether taxable or exempt, shall be valued or appraised based on prevailing market 
values in the locality where the property is situated, in conformity with the valuation 
standards adopted pursuant to this Act. The Secretary of Finance shall promulgate the 
rules and regulations for the valuation or real property pursuant to the provisions of 
this Act. 
For real property intended for low-cost or socialized housing and other programs 
of the government imbued with social policy objectives. the provisions of existing 
pertinent laws shall be applied after the determination of the prevailing market value 
of these properties in accordance with internationally accepted valuation standards. 


 
 
SEC. 13. Preparation of Schedule of Market Values. — The provincial assessors. 
together with the municipal assessors, and the city assessors, including the lone 
municipal assessor in the Metropolitan Manila Area. shall prepare the SMVs for the 
different classes of real property situated within their respective LGUs. pursuant to the 
valuation standards. rules. regulations. and other specifications set b) the DOF. The 
preparation of the SMV s shall be completed within six (6) months following the notice 
from the BLGF to all local assessors to submit their revised SMV s. 
Upon its completion. the local assessor shall submit the proposed SMV to the BLGF 
Regional Office. Within seventy-five (75) days fr01n receipt thereof. the BLGF 
Regional Office, in coordination with the BIR Regional Office. shall review and endorse 
the proposed 
SMV to the BLGF Executive Director and the Commissioner of Internal Revenue: 
Provided 
That, in the case of cities and municipalities within the Metropolitan Manila Area, the 
proposed SMV shall be submitted to, and reviewed by the BLGF Central Office, in 
coordination with the concerned BIR Regional Office: Provided, further, That the SMV 
complies with all the requirements set by the Secretary of Finance, including the 
conduct of at least one (1) public consultation on the proposed SMV s. 
SEC. 14. Approval of Schedule of Market Values. The Secretary of Finance shall 
approve the SMV in accordance with internationally accepted valuation standards, 
within thirty (30) days from receipt of the joint endorsement of the BLGE Executive 
Director and the Commissioner of Internal Revenue; otherwise. said schedule shall be 
deemed approved. In case of sudden changes in the market values. including but not 
limited to, ancestral domain. public land. agrarian reform beneficiaries. and other 
vulnerable sectors. the assessor is mandated to recommend to the sanggunian tax 
rates and assessment levels that Will maintain or minimally affect the real property tax 
due for the aforementioned property. 
The approved SMVs shall take effect fifteen (15) days after their publication by 
the DOF in the Official Gazette or in at least two (2) newspapers of general circulation, 
and posting in the respective provincial capitols city hall, and municipal hall. and in two 
(2) other conspicuous public places within the LGU covered by the approved SMV s. 
The DOF and the concerned LGUs shall post the approved SMV s on their official 
website. 


 
 
SEC. 15. Setting Assessment Levels and Tax Rates. — The approved SMV Shall be 
transmitted to the concerned local chief executive, through the respective provincial. 
city. and municipal assessor, The concerned assessor. in coordination with the local 
treasurer. shall estimate the revenue and tax impact of the new SMV based on existing 
assessment levels and tax rates. and recommend amendments thereon based on 
three (3) different scenarios. The assessor shall thereafter prepare and submit the 
revenue and tax impact report to the local chief executive for consideration. 
The local chief executive shall transmit the approved SMV, together with the 
revenue and tax impact report, within fifteen (15) days from receipt of the same to the 
sanggunian for the enactment of an ordinance setting the appropriate assessment 
levels and tax rates. During the sanggunian 's deliberations prior to the enactment of 
the tax ordinance. it may call upon (the assessor to provide technical assistance and 
calculate the revenue and tax impact of additional 
options in order to arrive at the desired level of revenue and tax burden that the 
sanggunian will adopt. The concerned sanggunian shall enact the tax ordinance within 
sixty (60) days from receipt thereof, upon conduct of public hearings and proper 
consultations; 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. including the municipality in the Metropolitan Manila Areas or within fifteen 
(15) days. in the case of provinces, to approve the same. Failure of the concerned 
local chief executive to act on the ordinance within the prescribed period shall render 
the same approved: Provided, however, That this law shall not be construed to abridge 
the power of LGUs to lower and adjust assessment levels and tax rates in accordance 
with the provisions of Republic Act No. 7160, otherwise known as the "Local 
Government Code of 1991 ' • . as amended. to provide it to residential property owners 
as deemed necessary. 
SEC. 16. Publication of assessment Levels and Tax Rates. The approved ordinance 
for the assessment levels and tax rates shall be published by the concerned LGU in a 
newspaper of local circulation once a week for two (2) consecutive weeks: Provided, 
That in provinces and cities. including the municipality within the Metropolitan Manila 


 
 
Area. where there are no newspapers of local circulation. the same shall be posted in 
the provincial capitol. including all concerned city halls, municipal halls, and in two (2) 
other conspicuous public places therein. 
SEC. 17. Use of Schedule of Marker Values. The approved SMV shall be used as 
bases for the determination of real property-related taxes of national and local 
governments. as follows: 
(d) For purposes of real property taxation. the approved SMV shall. in no case. 
be adopted by the LGU less than six (6) months prior to the effectivity of the new 
assessment rates to ensure the proper cleansing and updating of records. and 
notification of property owners in the conduct of general revision of assessment and 
property classification. 
(b) 
In computing any internal revenue tax. the BIR Commissioner shall use 
the SMV. or the actual gross selling price in consideration. as stated in real property 
transaction documents. whichever is higher  
(c) 
For other purposes. such as local transfer tax. tax on sand and gravel. 
community tax. fees and charges. or as benchmark for real property appraisal of other 
government agencies. 
the approved SMV shall be used upon its effectivity 


 
 
Notwithstanding the provision of existing laws to the contrary. the failure to 
conduct a general revision of assessment and property classification, and use of the 
approved SMV shall render an LGU ineligible for any conditional or performance-
based grant or to contract any form of credit financing. 
SEC. 18. Updating the Schedule of Market Values, — All provincial assessors, 
together with the municipal assessors and the city assessors. including the Ione 
municipal assessor within the Metropolitan Manila Area, shall update their respective 
SMVs within two (2) years from the effectivity of this Act. Thereafter, they shall update 
the SMVs and conduct general revision of property assessments and classifications 
once every three (3) years from the date of last revision. The BLGF shall prepare the 
schedule for the updating of the SMVs in all provinces and cities, including the 
municipality within the Metropolitan Manila Area. 
In case of any significant change in market value where the property is located 
after the SMV has been approved and prior to the next revision. such as in times of 
calamities, disasters. man-made or natural and other adverse circumstances. or 
where corrections of errors and inequalities in the SMV is deemed necessary, or upon 
the order of the Secretary of Finance. the provincial and city assessors shall 
recommend revisions 10 the existing SMVs to the BLGF Regional Office, through the 
BLGF Regional Director exercising jurisdiction over the LGU concerned: Provided, 
That. the city assessors and municipal assessor within the Metropolitan Manila Area. 
shall recommend revisions to the existing SMVs to the BLGF Central Office 
Such revision or revisions shall be subject to review by the concerned BLGF 
Regional Office and the BIR Regional Office "'which shall complete their review and 
submit their recommendations to the BLGF Executive Director. in accordance with 
Sections 13 and 14 of this Act. 
SEC. 19. Conduct of Capacity Building Interventions. The BLGF shall, in coordination 
with the Philippine Tax Academy of the DOE develop and conduct the necessary 
training for all local assessors. local officials and staff. and other concerned BIR 
personnel in the preparation of the SMVs in accordance with internationally accepted 
valuation standards. concepts. principles and practices. conduct of impact studies. 
preparation of compliance reports, and other subject areas, 


 
 
 
Chapter 2 
Development and Maintenance of 
Real Property Market Database 
SEC. 20. Development of Real Property Information System. The BLGF shall develop 
and maintain an up-to-date electronic database Of the sale, and exchange. lease. 
mortgage. The donation, transfer, and all other real property transactions and 
declarations in the country and on the cost of construction or renovation of buildings 
and other structures, and the prices of machinery  
For this purpose, the BLGF shall require the mandatory submission of necessary 
documents from the concerned officials or employees of national government offices 
or instrumentalities, LGUs, and the private sector: Provided, That in the case of 
government agencies and instrumentalities, the mandatory submission of documents 
and information shall be subject to the prohibition of disclosure of certain information 
under the Data Privacy Act and other existing laws, The updated database shall be 
made available to the LGUs. national government agencies and the private sector: 
Provided fin•/her. That the Commissioner of Internal Revenue or a duly authorized 
representative shall be allowed access to the database without the need of prior 
approval: Provided, finally. That non-submission of the required documents to the 
BLGF will subject the concerned official or employee to administrative penalties 
pursuant to the provisions of Section 28 of this Act. 
To further ensure the efficiency Of real property tax administration. all provinces. 
cities 
and municipalities shall automate their operations. adopt tax mapping 
technology. maintain software-enabled valuation systems, undertake regular data 
cleansing. and computerize records management. The National Government, through 
the Department of Information and Communications Technology. shall provide the 
appropriate equipment and connectivity information and communications technology 
platform. and the appropriate training and capability-building programs to third-class 
up to sixth-class municipalities and provinces to ensure compliance with this section. 
The BLGF shall establish mechanisms for the electronic Submission of the required 
documents in accordance with the provisions of Chapter 2. Article Il of this Act. 
SEC. 21. Duty of Register of Deeds to Supply Assessors with Rea/ Property 
Transactions Data. The Register of Deeds shall prepare and submit to the provincial 


 
 
assessors, together with the municipal assessors, and city assessors, including the 
Ione municipal assessor in the Metropolitan Manila Area. an abstract of the entire 
registry ever.  
 
three (3) months and copies of all contracts selling. transferring or otherwise 
converting. leasing. or mortgaging real property registered every end of the month. 
The abstract shall include brief but sufficient descriptions 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 of Permit 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 the Assessor.
 
shall be the duty of all geodetic engineers, public or private, to furnish free Of charge. 
the assessor of the province, city, or municipality where the land is located. a copy of 
the blue or white print of each of all approved original subdivision plans or maps of 
surveys. duly signed by a Senior Geodetic Engineer, executed by them every end of 
the month from receipt of such approved plans from the Land Management Bureau 
(LMB), the Land Registration Authority (LRA). or the Housing and Land Use 
Regulatory Board (HLURB). as the case may be. 
SEC. 24. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial, City 
or Municipal Assessor. — It shall be the duty Of the Registrar of Deeds and notaries 
public to furnish. free of charge. the provincial, city or municipal assessor with copies 
of all contracts selling. transferring. or otherwise conveying. leasing, or mortgaging real 


 
 
property received by, or acknowledged before them within such periods as the BLGF 
shall prescribe. 
SEC. 25. Transmission of Real Property Transactions Dara to the BLGF. — Upon 
operationalization of the real property transactions database as provided in Section 20 
of this Act. it shall be the duty of the registers of deeds. notaries public. officials issuing 
building permits. and the geodetic engineers conducting surveys within a locality to 
electronically-page transmit to the concerned BLGF Regional Office relevant real 
property transactions data. in accordance with the rules and regulations to be 
promulgated by the Secretary of Finance. 
Chapter 3 
Appointment and Qualifications of Assessors 
SEC. 26. Appointment of Assessors. — The local chief executive shall appoint the 
provincial. city and municipal assessors and assistant assessors, as the case may be. 
in accordance with Civil Service Law. Real Estate Service Act, rules and regulations, 
and the following guidelines: 
(a) In the case of provincial and assistant provincial assessors and city and 
assistant city assessors. the appointee shall be chosen from the list or at least three 
(3) ranking eligible candidates within the region: 
(b) In the case of a city and assistant city assessors, and the municipal and 
assistant municipal assessors in the Metropolitan Manila Area. the appointee shall be 
chosen from the list of at least three (3) ranking eligible candidates within the region: 
and 
(c) In the case of municipal and assistant municipal assessors- the appointee 
shall be chosen from the list of at least three (3) ranking eligible candidates within the 
province. 
The assessors shall be under the technical supervision of the BLGF. primarily 
through a system of compliance reporting and of capacity building through education 
and training programs. 
SEC. 27. Qualification of local Government Assessors. — No person shall be 
appointed assessor or assistant assessor unless a citizen of the Philippines. a resident 


 
 
of the region for a provincial or city assessor/assistant assessor, and of the province 
for a municipal assessor/assistant assessor. a registered and licensed appraiser, of 
good moral character. and must not have been convicted of any crime involving moral 
turpitude. The appointee must have experience in real property valuation or 
assessment work in any suitable field, either in private or public practice. 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. Once appointed. all assessors and local government 
appraisers must comply with the requirements of the Professional Regulatory Board 
of Real Estate Service for the regular updating of their licenses. 


 
 
ARTICLE IV 
PENAL PROVISIONS 
SEC. 28. Failure to Comply with the Required Submission of Documents„ — Any 
government official or employee who fails without justifiable reason to provide or 
furnish data or information required pursuant to Sections 20, 21, 22, 23, and 24 of this 
Act, shall be punished by a fine equivalent to one (1) month to six (6) months basic 
salary of the official or employee, or suspension from the service for a period not 
exceeding one (1) year. or both. at the discretion of the competent authority. 
SEC. 29. Failure to Comply with the Valuation Standards. — An assessor who, for 
unjustifiable reasons, fails to comply with the valuation standards developed and 
adopted pursuant to this Act, or deliberately conceals any deviation or departure from 
such standards in the valuation of real property, shall be punished by a fine equivalent 
to one (1) month to six (6) months basic salary of the official or employee. or 
suspension from the service for a period not exceeding one (1) year. or both, at the 
discretion of the competent authority 
SEC. 30. Failure to Prepare Schedule of Market Values. An assessor who, for 
unjustifiable reasons. intentionally or deliberately refuses or fails to prepare the SMVs 
within the period set forth in this Act shall be punished by a fine equivalent to one (I) 
month to six (6) months basic salary of the official or employee, or suspension from 
the service for not more than one (1) year. or both. at the discretion of the competent 
authority. This shall also be a ground for administrative and criminal liability in 
accordance with the provisions of Republic Act No 9646, Otherwise known as the 
"Real Estate Service Act of the Philippines". 
SEC. 31. Government Agents Delaying the Review, Approval and Implementation of 
the SMV, and Conduct of General Revisions. — Any government official or employee 
who delays. without justifiable cause. the review. approval and implementation of the 
SMV s. the conduct of general revisions, or causes the improper use thereof, shall be 
punished by a fine equivalent to one (1) month to six (6) months basic salary of the 
official or employee. or suspension from the service for a period not exceeding one (1) 
year or both. at the discretion of the competent authority. 


 
 
 
SEC. 32. Violation of Other Provisions. — Any person, whether natural or juridical. 
who violates any provision of this Act other than those punishable under Sections 28. 
29. and 30 hereof shall, when warranted, be dealt with under applicable existing laws.
 
SEC. 33. Taxpayers' Remedies in Case of Erroneous Assessments of Real 
Properties. — The provisions of Sections 226 on Local Board of Assessment Appeals 
and 229 on Action by the Local Board of Assessment Appeals of Republic Act No. 
7160. as amended. shall apply in all cases of appeal as remedies for the taxpayers in 
the assessment of their properties. 
All concerned local governments shall cause the constitution of a fully functioning 
Local Board of Assessment Appeals in their respective jurisdictions. in coordination 
with the Land Registration Authority. 
ARTICLE V 
TRANSITORY PROVISIONS 
SEC. 34. Transitory Guidelines. — LGUs which are in the process of updating their 
SMV s shall, upon the effectivity of this Act, continue with such revisions in accordance 
with Sections 
15. 16. 17, and 18 of this Act: Provided. That proper notification and coordination with 
the BLGF shall be undertaken. 
In case the SMVs are not yet available or updated, the BIR Commissioner shall 
adopt the existing SMVs. zonal values or the actual price in consideration as stated in 
real property transaction documents. whichever is higher. for purposes of computing 
any internal revenue tax. 
SEC. 35. Saving Clause. — The zonal values. as determined by the BIR and approved 
by the Secretary of Finance for internal revenue tax purposes, and the SMVs prepared 
by the provincial assessors together with the city assessors. and municipal assessors. 
including the municipal assessor in the Metropolitan Manila Area, that have been 
approved by their respective sanggunians for real property taxation purposes shall 
continue to be the force and effect until repealed, superseded. modified. revised. set 


 
 
aside. or replaced by the values provided under the updated SMV s as approved in 
accordance with Sections 15 of this Act. 
which shall be within two (2) years upon the effectivity of this Act. 
ARTICLE VI 
FUNDING REQUIREMENTS 
SEC. 36. Budgetary Requirements for the Updating of Schedule of Market Values.
 
Each local sanggunian shall appropriate the necessary funds from locally generated 
revenues. the internal revenue allotment or such other sources every fiscal year to 
constitute the Real Property Tax Administration Fund (RPTAF), which shall be 
established and used for the proper Implementation of the updating of the SMVs and 
general revision of real propert} assessments. and the administration of real property 
taxes in all LGUs. 
The BLGF shall annually furnish the Department of Budget and Management 
(DBM) with a list of LGUs with SMVs that are due for updating. The DBM, in its review 
of the ensuing year’s budget of provinces. highly urbanized cities. independent 
component cities and municipality within the Metropolitan Manila Area. shall ensure 
that sufficient funds are so appropriated for the RPTAF: Provided, That failure to 
provide the appropriations required shall render their annual budgets inoperative. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SEC. 37. Appropriations. — The amount necessary for the implementation of this Act 
shall be included in the annual General Appropriations Act. 
SEC. 38. 
Suppletory Application of Existing Laws. — The provisions of Republic 
Act No. 7160. otherwise known as the "Local Government Code of 1991 as 
amended, and other laws consistent With this Act shall have a suppletory effect. 
SEC. 39. 
Implementing Rules and Regulations (IRR). — Within six (6) months 
after the effectivity of this Act. the DOF shall. in consultation with concerned parties. 
issue the IRR for the effective implementation of this Act. 


 
 
SEC. 40. Separability Clause. If any section or provision of this Act shall be declared 
unconstitutional or invalid. other sections or provisions not affected thereby shall 
continue to be in full force and effect. 
SEC. 41. Repealing Clause. — The following provisions are hereby repealed: 
(a) Sections 212, 214, and 221 of Republic Act No. 7160, otherwise known as 
the "Local 
Government Code of 1991 ", as amended; and 
(b) Section 4(h) of Presidential Decree No. 538. 
The following provisions are hereby amended accordingly: 
(I) Section 33, Chapter IV, Title Il, Book IV, of Executive Order No. 292, otherwise 
known as the "Administrative Code of 1987'; 
(2) 
Sections 19, 135(a), 138. 201, 218, 220, 472(a), 
and 473(a) of 
Republic 
Act No. 7160; 
(3) 
Sections 5, 6, and 7 of Republic Act No. 10752, otherwise known as "The 
Right-ofway Act" 
(4) 
Section 9 of Presidential Decree NO. 921', and 
(5) 
Sections 6(e), 27(d)(5), and 88(b) of Republic Act No. 8424, otherwise 
known as the National Internal Revenue Code of 1997, as amended. 
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. 42. 
Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,