Real Property Valuation and Assessment Reform

Establish Philippine Valuation Standards (PVS) to govern property valuation.
Use market value as the basis for real property tax assessments and government transactions.
Enhance fiscal autonomy of local government units (LGUs) through improved revenue generation.
Separate valuation functions from tax policy formulation and tax administration.
Maintain an up-to-date electronic database of real property transactions.
Promote transparency and protect privacy according to RA 10173 (Data Privacy Act).
Encourage digital technology adoption in local tax administration and property transactions.

Appraiser: Qualified and licensed individual conducting valuations.
Assessed Value: Market value multiplied by assessment level.
Assessment: Process including property appraisal for taxation.
Assessment Level: Percentage applied to market value to determine taxable value.
Assessor: Licensed appraisers employed by LGUs performing valuations.
Building, Machinery, Improvement: Defined as physical structures and additions relevant to valuation.
Market Value: Estimated price in an arm’s length, willing buyer-seller transaction.
Philippine Valuation Standards: National standards based on international guidelines approved by DOF.
Schedule of Market Values (SMV): Tables of base market values prepared by assessors for LGUs.
Real Property: Ownership rights and interests in land and attached structures.

Lead implementation of the Act provisions.
Develop, adopt, maintain PVS and ensure compliance.
Review and certify SMVs prepared by local assessors.
Provide technical assistance and policy leadership to LGUs.
Maintain a roster of licensed appraisers and assessors.
Develop a comprehensive electronic real property transaction database.
Supervise assessors and collect reasonable fees related to Real Property Information System (RPIS).
Perform other necessary functions related to real property valuation.

BLGF headed by an Assistant Secretary.
Establishment of the Real Property Valuation Service (RPVS) within BLGF with regional counterparts.
Real Property Valuation Unit (RPVU) created under local assessors’ offices in provinces, cities, and optionally municipalities.

Forum for adopting international valuation standards and handling valuation matters.
Chaired by BLGF head; members include BIR, DENR, BSP, government assessors, private appraisers, real estate sector representatives.
Meets at least bi-annually; BLGF serves as Secretariat.

Regional Offices implement and supervise regional valuation policies and SMVs.
Regional Committee chaired by BLGF Regional Director with representatives from BIR, DENR, assessors, private sector, bankers, local government leagues.
Committee meets quarterly to discuss local market developments and valuation issues.

BLGF to develop uniform valuation standards aligned with International Valuation Standards (IVS).
Real properties valued based on prevailing market values and PVS compliance.
Depreciation considered in valuing depreciable assets.

Local assessors prepare SMVs within 12 months after BLGF notice.
Mandatory two public consultations prior to SMV submission.
Regional BLGF reviews and endorses SMVs to BLGF Central or Secretary of Finance.
Secretary of Finance certifies SMVs for official use; can remand SMVs for revision if not compliant.
Approved SMVs published and take effect 15 days after publication.

SMVs serve as basis for tax assessment, classification, and determination of various real property taxes.
Internal Revenue Commissioner to use higher of SMV or actual selling price for tax computation.
SMVs updated every three years, with initial update within two years of Act’s effectivity.
Provisions for revision due to market changes, calamities, or emergencies with suspension mechanisms.

BLGF to coordinate with Philippine Tax Academy to train assessors and local officials on valuation standards and SMV preparation.

BLGF to maintain updated electronic database of real property transactions, prices, and costs.
Mandatory document submission from registers of deeds, notaries, BIR, surveyors, and LGUs.
DBICT to provide free ICT support to LGUs for automation and data management.
Full automation of all LGUs’ real property systems mandated within two years.

Registers of deeds to submit quarterly real property abstracts and monthly transaction copies free of charge to assessors.
Relevant officials to electronically transmit real property transaction data quarterly to BLGF.

Local chief executives appoint assessors and assistant assessors from a list of top three ranked eligible candidates per civil service and Real Estate Service Act rules.

Government officials failing to provide data, adhere to valuation standards, or timely prepare SMVs face fines, suspension, or both.
Unauthorized processing or disclosure of property information punished under Data Privacy, Cybercrime, and relevant laws.
Other violations subject to applicable laws.

LGUs updating SMVs at Act’s effectivity continue process with BLGF coordination.
Delinquent real property tax amnesty granted for penalties and surcharges, excluding properties auctioned, under compromise, or pending court cases.
For first year of new SMV effectivity, tax increases capped at 6% per tax type with LGUs allowed to set caps for subsequent years.

Local Sanggunian to allocate funds annually for SMV updating and real property tax administration.
Secretary of Finance to provide subsidies to third and lower income class LGUs.

Initial implementation funded from current government funds; future funding included in annual budgets.
BLGF to report annually to Congressional Tax Reform Committee.
Concurrent application of existing consistent laws.
DOF to promulgate implementing rules within 3 months; non-promulgation does not delay implementation.
Separability clause ensures continued validity if part declared unconstitutional.
Repeals and amends inconsistent provisions in Local Government Code, Administrative Code, National Internal Revenue Code, and other laws.

Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.