Question & AnswerQ&A (OSG)
The short title of Republic Act No. 12001 is the "Real Property Valuation and Assessment Reform Act."
The primary objective is to promote sustainable development and maintenance of a just, equitable, impartial, and nationally consistent real property valuation system in the Philippines based on international valuation standards.
Market value is defined as the estimated amount for which a real property shall exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, with both parties acting knowledgeably, prudently, and without compulsion.
The Bureau of Local Government Finance (BLGF) is responsible for developing, adopting, maintaining, and implementing the Philippine Valuation Standards (PVS).
The SMV is a table of base unit market values for all kinds of real property within an LGU, prepared by provincial, city, and municipal assessors pursuant to PVS and relevant rules.
The Secretary of Finance certifies the proposed SMV's compliance with the latest PVS within 30 days of receipt and approves it for use. If not approved within this period, the existing SMV remains in effect.
They may be fined one to six months of their basic salary, suspended for up to one year, or both, in addition to any other criminal and administrative penalties under existing laws.
It is chaired by the head of BLGF and composed of representatives from the BIR, DENR, BSP, national organization of government assessors, Union of Local Authorities of the Philippines (ULAP), Land Registration Authority, private appraisal sector, and real estate sector.
The tax amnesty covers penalties, surcharges, and interests from unpaid real property taxes including Special Education Fund, idle land tax, and other special levies for taxes due before the effectivity of this Act, available for two years after enactment with certain exclusions.
Local chief executives appoint provincial, city, and municipal assessors and assistant assessors from a list of at least three ranked eligible candidates within the respective regions or provinces, following civil service laws and the Real Estate Service Act.
The approved SMV serves as the basis for the general revision of property assessment and classification, adjustment of assessment levels and tax rates, determination of real property-related taxes, and valuation for government agency transactions.
They implement valuation policies, review and endorse SMVs, provide valuation services, coordinate with regional agencies, maintain electronic databases of real property transactions, and perform other tasks assigned by the BLGF head.
The Register of Deeds must prepare and submit abstracts of registries and copies of real property transaction documents every three months to the local assessors free of charge.
LGUs must conduct general revisions and update their SMVs every three years after the initial update within two years from the effectivity of this Act.
All LGUs must automate their real property tax administration operations, including tax mapping and software-enabled valuation systems, with support from the Department of Information and Communications Technology (DICT) to be completed within two years from the Act's effectivity.