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 Table of Contents

TITLE I. PRELIMINARY PROVISIONS 5

Section 1. Title 5

Section 2. Policy and Objectives 5

Section 3. Purposes 5

Section 4. Definition of Terms 6

TITLE II. BUREAU OF LOCAL GOVERNMENT FINANCE 8

Chapter 1. Bureau of Local Government Finance (BLGF) Central Operations 8

Section 5. Powers and Functions of the BLGF Central Office 8

Section 6. Reorganizing the BLGF and Establishment of the Real Property Valuation
Service I
Section 7. Supervisory Role of the Head of the BLGF over the RPVS 10

Chapter 2. BLGF Regional Office Operations 10

Section 8. Role of the BLGF Regional Offices 10

TITLE III. REAL PROPERTY VALUATION UNIT IN THE LGU 11

Section 9. Establishment of a Real Property Valuation Unit (RPVU) 11

TITLE IV. CONSULTATIVE COMMITTEES 1'I

Chapter 1. The Central Consultative Committee 11

Section 10. Creation, Function, Composition, and Qualifications, Nomination, Selection

and Term of Representatives of the Central Consultative Conrmittee 11

Section 11. Meetings, Rules of Procedure and Resource Persons of the Central
Consultative Committee 13

Section 12. Prohibition Against Double Compensation of the Members of the Central
Consultative Committee 13

Chapter 2. The Regiona! Consultative Committee 13

Section 13. Creation, Function, Composition, and Qualifications, Nomination, Selection

and Term of Representatives of the Regional Consultative Committee 13

Section 14. Meetings, Rules of Procedure and Resource Persons of the Regional
Consultative Committee 15

Section 15. Submission of Reports of the Regional Consultative Committee 15

Section 16. Prohibition Against Double Compensation of Members of the Regional
Consultative Committee 16
TITLE V. VALUATION STANDARDS AND MARKET VALUES 16
Chapter 1. Development of Valuation Standards 16
Section 17. Development of Valuation Standards 16
Section 18. Users of Valuation Standards 16
Section 19. Periodic Review of Valuation Standards 16
Section 20. Transparency and Accessibility of Valuation Standards 16

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Chapter 2. Valuation of Real Propefi 16

Section 21. Market Value-Based Valuation 16

Section 22.Yaluation of Depreciable Assets 17

Chapter 3. Preparation of the Schedule of Market Values (SMV) 17

Section 23. Notice and Responsibility to Prepare the SMV 17

Section 24. Compliance with the PVS, Rules, Regulations, and Specifications in the
Preparation of the SMV 17

SMV
Section 25. Timelines for the Preparation of the 17

Section 26. Publication of the Proposed SMVs 17

Section 27. Public Consultations and Hearings for the Proposed SMV 17

Section 28. Submission of the Proposed SMV 17

Section 29. Period of SMV Review and Endorsement 17

Chapter 4. Review of the Schedule of Market Values {8

Section 30. Review and Certification of the Proposed SMV 18

Section 31 . Remand of the Endorsed SMV 18

Section 32. Compliance with the Findings, Public Consultation, and Resubmission 18

Section 33. Decision on the Resubmitted SMV 18

Section 34. Publication and Effectivity of the SMV 18

Chapter 5. Revenue and Tax lmpact Report 18

Section 35. Transmission of the Approved SMV 18

Section 36. Revenue and Tax lmpact Report 18

Section 37. Submission of the Revenue and Tax lmpact Report with
Recommendations 19

Section 38. Consistency with the Local Government Code of 1991 19

Chapter 6. Uses of the Schedule of Market Values (SMV) 19

Section 39. Uses of the SMV 19

Section 40. Additional lndicator for the Grant of the Seal of Good Local Governance 20
Chapter 7. Updating of the Schedule of Market Values (SMV) 20
Section 41 . First Updating of the SMV Upon the Effectivity of the Act 20
Section 42. Regular Updating of the SMVs and General Revision of Real Property
Values 20
Section 43. Revision of the SMV During its Effectivity 20
Section 44. Suspension of the General Revision of Real Property Values and
Assessments 21

Chapter 8. Capacity Building lnterventions 21

Section 45. Development and Conduct of Capacity Building lnterventions 21

TITLE VI. DEVELOPMENT AND MAINTENANCE OF REAL PROPERTY MARKET

DATABASE 22

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 Chapter 1. Development and Maintenance of the Real Property lnformation System
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Section 46. Development of the Real Property lnformation System (RPIS) 22
Chapter 2. Supply and Transmission of Rea! Property Transactions Data 23
Section 47. Duty of Register of Deeds to Supply Assessors with Real Property
Transactions Data 23
Section 48. Transmission of Real Propefi Transactions Data to the BLGF 23
TITLE VII. APPOINTMENT OF ASSESSORS 24
Assessors
Section 49. Appointment of 24
TITLE VIII. PENAL PROVISIONS 24
Section 50. Violations Committed by Government Officials and Employees 24
Section 51. Unlawful or Unauthorized Processing or Disclosure of lnformation 24
Section 52. Other Violations of theAct 25
TITLE IX. TRANSITORY PROVISIONS 25
Section 53. Transitory Guidelines 25
Section 54. Basis of the lnternal Revenue Taxes 25
Section 55. Cap on the lncrease of the Real Property Tax Resulting from the lncrease in
Real Property Values and Assessments 25
Section 56. Grant of Tax Amnesty on Real Property Taxes and Special Levies on Real
Property 25
Clause
Section 57. Saving 26
TITLE X. FUNDING REQUIREMENTS 26
Section 58. Budgetary Requirements for the Updating of SMVs and General Revision of
Real Property Values and Assessments 26
Appropriations
Section 59. 26
TITLE XI. MISCELLANEOUS PROVISIONS 26
Section 60. Ensuring Gender Equity, lnclusivity, and Fairness 26
Section 61. Reportorial Requirement 27
Section 62. Suppletory Application of Existing laws 27
Section 63. Computation of Periods 27
Section 64. Separability Clause 27
Section 65. Repealing Clause 27
Section 66. Effectivity 28

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This lmplementing Rules and Regulations, hereinafter referred to as the lRR, is
promulgated pursuant to Section 36 of Republic Act (R.A.) No. 12001, othenrise
known as the "Real Property Valuation and Assessment Reform Act" (RPVARA) or
the Act), for the purpose of carrying out the provisions of said Act.

TITLE I. PRELIMINARY PROVISIONS

Section 1. Title. These rules shall be known as the "lmplementing Rules and
Regulations of R.A. No. 1200'l ," and cited as the IRR of the RPVARA.

Section 2. Policy and Objectives. lt is the policy of the State to promote the
sustainable development and maintenance of a just, equitable, impartial, and
nationally consistent real property valuation, based on international valuation
standards, concepts, prin ciples, and practices.

Section 3. Purposes. The Act aims to:

a. Establish and maintain standards based on the Philippine Valuation

Standards (PVS) 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, such as
but not limited to the acquisition of r"eal property for public use, determination
of the value of the property;

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 real property;

d. Separate the technical function of valuation of real properties from the

functions of tax policy formulation and administration of the taxes due thereon;

e. Provide a comprehensive and upto-date electronic database of all real

property transactions;

f. 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
contributing to the country's inclusive and sustainable economic growth;

g. Subject to the provisions of R.A. No. 10173, othenarise known as the "Data
Privacy Act of 2012,' ensure transparency in real property transactions to
protect public interest, and develop confidence in the valuation system; and

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 h. Promote the use of innovative digital technology in local and real property tax
administration, real property transactions, and other business processes to
improve the LGUs' revenue generation capacity.

Section 4. Definition of Terms. For the purpose of this lRR, the following terms are
defined as such:

(a) Appraiser, also known as 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 laxable Value, refers to the market value of
the real 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, 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 R.A. No. 7160, othenryise known as the "Local Government
Code of 1991 ," as amended;

(e) Assessor refers to the official or employee in the LGU who is a duly licensed
appraiser, and performs appraisal and assessment of real propefties,
including plant, machinery, and equipment, for taxation and other purposes.
This definition also includes assistant assessor in the LGU and the assessor
of the Philippine Veterans lnvestment Development Corporation-lndustrial
Authority (PH lVl DEC-lA) ;

(f) Automation refers to a seamless process with minimal human intervention

and/or without human intervention on the front or back-end process of the
service;

(g) Building refers to a man-made structure permanently attached to land for

residential, commercial, industrial, recreational, or other purposes;

(h) Depreciation refers to reasonable allowance for the exhaustion, wear and
tear (including reasonable allowance for obsolescence) of property;

(i) lmprovement refers to 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 intended to
enhance its value, beauty, or utility, or to adapt it for new or further purposes;

(j) lnternational Valuation Standards refer to standards for undertaking

valuation assessments using generally recognized concepts and principles
that promote transparency and consistency in the valuation practice as
determined by the lnternational Valuation Standards Council;

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(k) Machinery refers to machines, equipment, mechanical contrivances,
instruments, appliances, or apparatus which may or may not be attached,
permanently or temporarily, to the real property. lt 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;

(l) Market Value refers to 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, wherein the parties had
each acted knowledgeably, prudently, and without compulsion;

(m)Philippine Valuation Standards refer to the latest national standards

designed and for use in the Philippines, but which are based upon
lnternational Valuation Standards, duly approved by the Secretary of Finance;

(n) Private Appraisal Secfor refers to licensed appraisers or valuers not

engaged by the government;

(o) Reat Estate refers to the land and all those items which are attached to the
land. lt is the physical, tangible entity, together with all the additions or
improvements on, above or below the grou.nd;

(p) Real Estate Secfor refers to duly accredited or registered organization or

association of real estate developers and realesfafe consultants;

(q) ReaI Property refers to all the rights, interests, and benefits related to the
ownership of real estate;

(r) Schedule of Market Values, hereinafter referred to as SMV, refers to a table

of base unit market value for all kinds of real property, except machinery
within an LGU, prepared by assessors pursuant to existing laws, rules, and
regulations. For real property not specified in the SMV the same shall be
appraised at its current market value, and shall be assessed for taxation
purposes by applying the prescribed assessment level based on its actual
use;

(s) Specral 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

(0 Valuation, also known as Appraisal, refers to the systematic, analytic, and

logical analysis of the recording of property facts, circumstances, investments,

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 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.

TITLE II. BUREAU OF LOCAL GOVERNMENT FINANCE

Chapter 1. Bureau of Local Government Finance (BLGF) Central Operations

Section 5. Powers and Functions of the BLGF Central Office. The BLGF of the
Department of Finance (DOF) shall be the primary agency to lead the
implementation of the provisions of the Act and this lRR. To support the expanded
functions of the BLGF and achieve the policies and objectives declared in the Act
and this lRR, the BLGF shall be headed by an Assistant Secretary. ln addition to the
powers vested upon it by E.O. No. 292, otherwise known as the "Administrative
Code of 1987," it shall exercise the following powers and functions:

a. Develop, adopt, and maintain the PVS, regulations, and specifications for real
property appraisal used for taxation and other purposes, and ensure
compliance therewith by LGUs and other concerned parties;

b. Review and ensure that the SMVs, as prepared by the assessors, are
compliant with the PVS and real property valuation policies and standards
promulgated by the DOF, and recommend its certification to the Secretary of
Finance for local and national taxation, and for other purposes;

c. lnterpret and decide, through advisory opinions and clarificatory issuances, on

matters relating to real property valuation policies and standards issued by the
DOF and the BLGF, and implementation of SMVs;

d. Provide technical assistance on real property appraisal matters to government

agencies and instrumentalities, and coordinate or conduct valuation, when
requested;

e. Provide leadership and policy direction to LGUs on real property valuation for
taxation and other purposes, the regulation of valuation activities and other
related matters, and the promotion of valuation trainings and seminars;

f. Maintain a roster of licensed local government appraisers and assessors in

consultation and coordination with the Professional Regulation Commission
(PRC);

g. 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;

h. Conduct continuing study and research on valuation, and gather information

on current global and country trends and developments in real property
valuation;

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 i. Formulate and provide for uniform procedures on the different transactions in
the assessor's office, including the transfer, annotation, and issuance of tax
declarations;

j Exercise technical supervision over all assessors through a system of

compliance reporting and capacity building, and education and training
procedures;

k. Determine, fix, and collect a reasonable amount to be charged as

administration fees, fines, and penalties relative to the implementation of the
Real Property lnformation System (RPIS): Provided, That no fees or fines
shall be imposed on LGUs with respect to the use of the RPIS; and

L Perform such other functions as are necessary, proper, and incidental to

implement the provisions of the Act.

Section 6. Reorganizing the BLGF and Establishment of the Real Property

Valuation Service.

6.1 To support the expanded functions of the BLGF, the Real Property Valuation
Service, hereinafter referred to as the RPVS, is hereby established.

There shall be creation of positions of RPVS in the BLGF Central Office and
counterpart personnel in the BLGF Regional Offices. The organizational structure
and staffing pattern of the RPVS at the BLGF Central Office and the counterpart
thereof in the BLGF Regional Offices shall be subject to the evaluation and approval
of the Department of Budget and Management (DBM) in accordance with civil
service laws, rules and regulations.

The creation of counterpart personnel in the BLGF Regional Offices is to

complement the functions enumerated in this lRR, for the effective coordination and
implementation of real property valuation activities at the regional level.

The proposed organizational structure and staffing pattern of the reorganized BLGF
shall be submitted to the DBM within six (6) months from the effectivity of this lRR,
for its evaluation and approval in accordance with civil service laws, rules, and
regulations.

6.2 The RPVS shall exercise the following functions

a. Develop and maintain the PVS, regulations, and specifications for real
property appraisal used for taxation and other purposes, and ensure
compliance therewith by the LGUs and other concerned parties;

b. Assist in the formulation of policies and conduct planning on real property

valuation and other related subject matters;

c. Provide technical assistance to LGUs and capacity building intervention for

local government personnel in the area of real property valuation;

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 d. Conduct monitoring, evaluation, and review on the submitted SMVs from
LGUs to ensure accuracy and adherence to the PVS, real property valuation
policies, standards, and regulations;

e. lmplement the RPIS or any other system that may be developed in

accordance with Section 22 of the Act, in coordination with the Department of
lnformation and Communications Technology (DICT);

f. Develop a network with government and private appraisal groups;

g. Develop and maintain a listing of licensed and registered local government

appraisers and assessors, in consultation with the Professional Regulatory
Board of Real Estate Service (PRC-PRBRES); and

h. Perform such other functions as may be assigned by the Head of the BLGF

Section 7. Supervisory Role of the Head of the BLGF over the RPVS. The Head
of the BLGF shall be responsible for the efflcient and effective day-to-day
performance of the responsibilities set forth in the Act and this lRR, and for the
overall internal management and governance of the RPVS.

The Head of the BLGF, in coordination with relevant stakeholders, shall issue
guidelines for the operations of the RPVS, including, but not limited to, the duties,
functions, and responsibilities of the RPVS, its internal management and
governance, procedures for the periodic review of the PVS as provided for under
Section '19 of this lRR, procedures for supervision over LGU real property
assessment matters, review and endorsement of the proposed SMVs prepared by
the assessors as provided for under Sections 23 to 29 of this lRR, and the updating
of manuals and guidebooks for valuation.

Chapter 2. BLGF Regional Office Operations

Section 8. Role of the BLGF Regional Offices. Through their respective Regional
Director, the BLGF Regional Offices shall be responsible for all matters relating to
valuation and the supervision of the SMVs in their respective regions. ln addition to
their existing functions, they shall:

a. lmplement policies, plans, programs, rules, and regulations on real property

valuation in the region;

b. Review and endorse to the RPVS the proposed SMVs prepared by the
assessors of the LGUs in the region;

c. Provide for economical, efficient, and effective valuation services, through

technical assistance, in the region;

d. Coordinate and consult with other government departments, bureaus and

agencies within the region dealing with real property valuation;

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 e. Adopt and maintain a comprehensive and up{o-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 such other functions as may be assigned by the Head of the BLGF

TITLE III. REAL PROPERTY VALUATION UNIT IN THE LGU

Section 9. Establishment of a Real Property Valuation Unit. To achieve the

policies and objectives declared in the Act, a Real Property Valuation Unit (RPVU)
shall be created under the Office of the Local Assessor in every province and city,
and the lone municipality in Metropolitan [/anila, within two (2) years from the
effectivity of this lRR. Component municipalities of provinces may also create RPVU
under the office of their respective local assessors. The RPVU shall be created in
accordance with the guidelines prescribed by the Civil Service Commission (CSC).

The funding for the organizational structure and staffing pattern of the RPVU shall be
included in the annual budget of the Office of the Local Assessor duly approved by
the Sangg unian concerned.

TITLE IV. CONSULTATIVE COMMITTEES

Chapter 1. The Gentral Consultative Gommittee

Section 10. Creation, Function, Composition, and Qualifications, Nomination,

Selection and Term of Representatives of the Gentral Consultative Committee.

10.1 Creation and Function. A Central Consultative Committee shall be created

and shall serve as the consultative forum on matters pertaining to the setting and
adoption of lnternational Valuation Standards customized under the Philippine
setting and other concerns on real property valuation, such as standardization of
concepts and definitions of real property-related terms.

The Central Consultative Committee shall act as the regional consultative committee
for the National Capital Region and shall serve as the forum on matters provide for
under Section 13.1 (Creation and Function of the Regional Consultative Committee)
of this lRR.

10.2 Composition. The Central Consultative Committee shall be chaired by the

Head of the BLGF and composed of a representative or an alternate from each of
the following agencies, organizations and sectors:

a. Bureau of lnternal Revenue (BlR);

b. Department of Environment and Natural Resources (DENR);

c. Bangko Sentral ng Pilipinas (BSP);

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 d. National Organization of Government Assessors;

e. Union of Local Authorities of the Philippines (ULAP);

f . Land Registration Authority (LRA);

g. Private appraisal sector; and

h. Real estate sector.

10.3 Qualifications. The representatives to the Central Consultative Committee
shall have the following qualifications:

a. The representative from the private appraisal sector and real estate sector
must have been in the active practice as a real estate appraiser for at least
five (5) years prior to his or her appointment as member of the Central
Consultative Committee, as certified to by the PRBRES.

The representative from the private appraisal sector shall come from the
Accredited and lntegrated Professional Organization (AIPO) as referred to
under Section 34, Article lV of R.A. No. 9646, othenruise known as the "Real
Estate Service Act of the Philippines." Otherwise, he or she shall come from
the lnterim Accredited Professional Organization prior to and until the
recognition or birth of the AIPO.

b. The representatives of the BlR, DENR, and BSP must be performing

valuation-related functions, and duly authorized and certified by the head of
their organization or agency.

c. The national organization of government assessors, the private appraisal

sector, and the real estate sector shall be represented by their respective
heads of organizations or their duly authorized and qualified representatives.

10.4 Nomination and Selection. The representatives of the national organization of

government assessors, the private appraisal sector, and the real estate sector shall
be selected by the Head of the BLGF from a list of nominees submitted by the
groups or associations duly registered and in good standing with the Securities and
Exchange Commission (SEC), after the receipt of notice from the BLGF Central
Office.

The withdrawal of the appointment of the representative shall be submitted in writing

to the BLGF Central Office: Provided, That the RPVS shall recommend three (3)
names for each sector to the Head of the BLGF for consideration based on
nominations received from the respective sectors: Provided, further, That the BLGF
shall promulgate rules and guidelines for the selection and approval of sectoral
representatives.

10.5 Term. The representative shall serve for a term of three (3) years. ln case of
death, permanent disability, resignation, voluntary separation from the group or
association, or withdrawal of representation by the group or association they

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represent, selection to any vacancy in the Central Consultative Committee shall only
be for the unexpired term of the predecessor.

Section 11. Meetings, Rules of Procedure and Resource Persons of the Central
Consultative Gomm ittee.

11.1 Meetings. The Central Consultative Committee shall meet, either in-person,
online, or hybrid, upon the call of the Chairperson, and with due notice to the
members or representatives, at least once every semester and shall have as many
meetings as the Chairperson may deem necessary for the adoption of valuation
standards: Provided, That the notice shall be made at least fifteen (15) days before
the scheduled meeting.

The BLGF-RPVS shall serve as the Secretariat of the Central Consultative

Committee.

11.2 Rules of Procedure. The BLGF shall adopt rules of procedure that provides
the meeting protocols, mechanisms, as well as, other procedures necessary to carry
out the function of the Central Consultative Committee. The rules shall strictly adhere
to the principle of collegiality and ensure a consultative, democratic, and transparent
proceedings. Such rules shall also include the conduct of members during meetings
or sessions.

11.3 Resource Persons. The Chairperson may invite Resource Persons on issues
concerning real property valuation. The Central Consultative Committee shall ensure
that there will be equal opportunity for the participation of public and private sector
representatives as Resource Persons.

Section 12. Prohibition Against Double Compensation of the Members of the

Central Consultative Committee. The Chairperson and Members of the Central
Consultative Committee who are government officials or employees shall not receive
additional salary from the government for the performance of their functions in the
Committee: Provided, That they shall be entitled to receive per diem from the BLGF
pursuant to existing laws, rules, regulations, and other issuances: Provided, further,
That sectoral Representatives shall receive per diem from the BLGF pursuant to
existing laws, rules, regulations, and other issuances.

Chapter 2. The Regional Consultative Committee

Section 13. Greation, Function, Composition, and Qualifications, Nomination,

Selection and Term of Representatives of the Regional Gonsultative
Gommittee.

13.1 Creation and Function. A Regional Consultative Committee shall be created

which shall serve as the forum in the region for discussion on the following matters:

a. Developments in the local real property market;

b. Concerns of taxpayers, civil society, and other stakeholders;

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 c. Outcome of compliance reporting in the region;

d. Data on complaints and appeals filed before the Local Board of Assessment
Appeals or the Central Board of Assessment Appeals, as the case may be;

e. Training of local government assessors in the region;

f. Appraisal and assessment concerns in general, and

g. Other matters as may be determined by the Committee

13.2 Composition. The Regional Consultative Committee shall be chaired by the

BLGF Regional Director and shall be composed of:

a. Head/s of the BIR Regional Office or duly authorized representative/s;

b. Head of the DENR Regional Office or duly authorized representative;

c. Head of the respective regional organization of government assessors or duly

authorized representative ;

d. Head of the private appraisal sector within the region or duly authorized
representative;

e. Head of the real estate sector, licensed by the PRC, within the region or duly
authorized representative;

f. Head of the bankers' association within the region or duly authorized

representative;

g. Head of the regional chapter of the league of cities or duly authorized

representative; and

h. Head of the regional chapter of the league of provinces or duly authorized

representative.

13.3 Qualifications. The Representatives to the Regional Consultative Committee

shall have the following qualifications:

a. Representatives who will attend on behalf of the respective heads shall be

duly qualified and authorized by their organizations.

b. Representatives of the BIR and the DENR must be performing

valuation-related functions, in their respective agencies or sectors.

c. Preferably, the other members of the Committee must be performing

valuation-related functions in their respective agencies or sectors.

13.4 Nomination and Selection. The representatives of the regional organizations

of government assessors, shall be selected by the BLGF Regional Director from a

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list of nominees submitted by the groups or associations duly registered and in good
standing with the Securities and Exchange Commission.

The representatives of the private appraisal and real estate sector shall be selected
by the Head of the BLGF from a list of nominees submitted by the Professional
Regulatory Board of Real Estate Service (PBRES).

The withdrawal of the appointment of the representative shall be submitted in writing

to the BLGF Regional Office concerned: Provided, That the RPVS counterpart shall
recommend three (3) names for each sector to the BLGF Regional Director for
consideration based on nominations received from the respective sectors: Provided,
further, That the BLGF Central Office shall promulgate rules and guidelines for the
selection and approval of sectoral representatives.

13.5 Term. The representatives from the private appraisal and real estate sector
shall serve for a term of three (3) years. ln case of death, permanent disability,
resignation, voluntary separation from the group or association, or withdrawal of
representation by the group or association they represent, selection to any vacancy
shall be only for the unexpired term of the predecessor.

Section 14. Meetings, Rules of Procedure and Resource Persons of the

Regional Consultative Comm ittee.

14.1 Meetings. The Regional Consultative Committee shall meet, either in-person,
online, or hybrid, upon the call of the BLGF Regional Director, and with due notice to
the Members, 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:
Provided, That the notice shall be made at least fifteen (15) days before the
scheduled meeting.

The BLGF Regional Office RPVS counterpart shall serve as the Secretariat of their
respective Regional Consultative Committee.

14.2 Rules of Procedure. The BLGF Regional Office shall adopt rules of procedure
that provide for the meeting protocols, mechanisms, as well as, other procedures
necessary to carry out the function of the Regional Consultative Committee. The
rules shall strictly adhere to the principle of collegiality and ensure a consultative,
democratic, and transparent proceedings. Such rules shall also include the conduct
of Members during meetings or sessions.

14.3 Resource Persons. The BLGF Regional Director may invite Resource Persons
on issues concerning real property valuation. The Regional Consultative Committee
shall ensure that there will be equal opportunity for the participation of public and
private sector representatives as Resource Persons.

Section 15. Submission of Reports of the Regional Consultative Committee.

Any report of the Regional Consultative Committee shall be submitted to the Central
Consultative Committee, either electronically or manually, within seven (7) days from
approval thereof.

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Section 16. Prohibition Against Double Compensation of Members of the
Regional Consultative Committee. The Chairperson and Members of the Regional
Consultative Committee who are government officials or employees shall not receive
additional salary from the government for the performance of their functions in the
Committee. Provided, That they shall be entitled to receive per diem from the BLGF
pursuant to existing laws, rules, regulations, and other issuances: Provided, further,
That sectoral Representatives shall receive per diem trom the BLGF, pursuant to
existing laws, rules, regulations, and other issuances.

TITLE V. VALUATION STANDARDS AND MARKET VALUES

Chapter 1. Development of Valuation Standards

Section 17. Development of Valuation Standards. The BLGF shall develop, adopt,
maintain, and implement uniform valuation standards for real property, which shall be
known as the PVS. ln the development of these standards, the Central Consultative
Committee and the Regional Consultative Committees shall consult with
stakeholders. The standards shall detail the methodologies for valuing different types
of real property to ensure conformity with lnternational Valuation Standards as may
be customized under Philippine setting under the PVS. The standards shall include
guidance on their implementation across all LGUs, that is, as regard transcending
boundaries, ensuring uniform application and adherence to the principles of fairness
and transparency.

Section 18. Users of Valuation Standards. The PVS shall be used by all
appraisers and assessors in the LGUs, and other persons, entities, or agencies that
conduct valuation in the appraisal or valuation of lands, buildings, machinery, and
other real properties for taxation and other purposes.

Section 19. Periodic Review of Valuation Standards. The BLGF, through the
RPVS, shall review the PVS every three (3) years or as often as may be necessary
to ensure that the same is aligned with globally accepted principles and definitions in
real property valuation with due consideration of the prevailing economic conditions.
During such review, the Central Consultative Committee and the Regional
Consultative Committees shall disseminate and incorporate relevant feedback from
stakeholders.

Section 20. Transparency and Accessibility of Valuation Standards. To ensure

transparency, upon finalization or revision, the PVS shall be published and made
accessible to the public through the BLGF website.

Chapter 2. Valuation of Real Propefi

Section 21. Market Value-Based Valuation. 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 PVS adopted pursuant to the Act and this lRR.

15

il
Section 22. Yaluation of Depreciable Assets. ln all instances, depreciation shall
be taken into consideration in the valuation of depreciable assets in accordance with
the PVS.

Chapter 3. Preparation of the Schedule of Market Values (SMV)

Section 23. Notice and Responsibility to Prepare the SMV. The BLGF shall notify
all assessors to prepare and submit their proposed SMVs.

Section 24. Compliance with the PVS, Rules, Regulations, and Specifications
in the Preparation of the SMV. The proposed SMVs shall be compliant with the
PVS and such other rules, regulations, and specifications as may be set by the
Secretary of Finance.

Section 25. Timelines for the Preparation of the SMV. The preparation of the
SMV including the publication and public consultations pursuant to Sections 26 and
27 of this lRR, shall be completed within twelve (12) months following the receipt by
the assessors of the notice from the BLGF to submit their proposed SMVs.

Section 26. Publication of the Proposed SMVs. All assessors shall publish the
proposed SMVs for at least two (2) weeks prior to the public consultation and
hearing, in the official website of the LGU concerned and the PHIVIDEC-IA, as well
as, post the same in two (2) conspicuous places in the Provincial Capitol, City Hall,
Municipal Hall, or principal office of the PHIVIDEC-IA, as the case may be.

Section 27. Public Consultations and Hearing for the Proposed SMV. At least
two (2) mandatory public consultations and hearing shall be conducted, either
in-person, online, or hybrid, within sixty (60) days before the submission of the
proposed SMV to the BLGF. The LGU may request a representative of the BLGF
Central or Regional Office to and assist the LGU and the PHIVIDEC-IA in the
conduct of the public consultations. The assessors shall keep the records of the
consultations, completion, and submission, including copies of the submitted
proposed SMV for reference.

Section 28. Submission of the Proposed SMV. After public consultations and
completion of the proposed SMVs, the provincial and city assessors shall submit the
same to the BLGF Regional Office in the case of the regions outside Metro Manila
Area. ln the case of the cities and the lone municipality in the NCR, their proposed
SMVs shall be directly submitted to the BLGF Central Office.

Section 29. Period of SMV Review and Endorsement. Within forty-flve (45) days
from receipt of the proposed SMVs, the BLGF Regional Office shall review and
endorse the same to the Head of the BLGF. ln the case of the cities and the lone
municipality in the NCR, their proposed SMVs shall be directly reviewed by the
BLGF Central Office. The Head of the BLGF through the RPVS shall review the
proposed SMVs submitted and endorse the same to the Secretary of Finance within
thirty (30) days from receipt thereof.

17
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 Chapter 4. Review of the Schedule of Market Values

Section 30. Review and Certification of the Proposed SMV. The Secretary of
Finance shall certify that the proposed SMV submitted by the Head of the BLGF was
prepared in accordance with the latest PVS within thirty (30) days from the receipt
thereof.

ln the absence of action by the Secretary of Finance within the specified period of
thirty (30) days, the existing SMV shall remain in effect until a new SMV is certified in
accordance with the provisions of the Act and this lRR.

Section 31. Remand of the Endorsed SMV. lf the endorsed SMV was not prepared
in accordance with the latest standards set in the PVS, the Secretary of Finance
shall remand or send back the endorsed SMV to the assessor, as the case may be,
specifying and explaining in writing the specific valuation standard/s under the PVS
that was/were not complied with, and the assessor shall revise the same accordingly.
The remand of the proposed SMV shall be coursed through the BLGF Central Office
and the BLGF Regional Offices concerned, if applicable: Provided, further, That the
Secretary of Finance shall not exercise control over the content of the SMV.

Section 32. Compliance with the Findings, Public Consultation, and

Resubmission. Upon compliance with the findings of the Secretary of Finance, the
proposed SMV shall be resubmitted by the local assessor or the assessor of the
PHIVIDEC-IA to the BLGF Central Office through the concerned BLGF Regional
Office, if applicable, within thirty (30) days from the receipt of the remanded SMV
and after the conduct of at least one (1) public consultation as may be necessary.

Section 33. Decision on the Resubmitted SMV. The Secretary of Finance shall
decide on the resubmitted SMVwithin ten (10) days from receiptthereof, otheruvise,
the existing SMV shall remain in effect.

Section 34. Publication and Effectivity of the SMV. The certified SMV shall take
effect fifteen (15) days after its publication by the DOF in the Official Gazette or in its
official website, and in the official website of the province, city, or the lone
municipality of the Metro Manila or the PHIVIDEC-IA, and posted in two (2) other
conspicuous public places in the Provincial Capitol, City Hall, Municipal Hall, or
principal office of the PHIVIDEC-IA, as the case maybe.

Chapter 5. Revenue and Tax Impact Report

Section 35. Transmission of the Approved SMV. The certified SMV shall be
officially and directly transmitted by the BLGF Central Office to the concerned local
chief executive, and the Sanggunian, through their respective local assessors and
the assessor of the PHIVIDEC-IA, copy furnished the BLGF Regional Office
concerned.

Section 36. Revenue and Tax lmpact Report. The concerned local assessor, in
coordination with the local treasurer, shall prepate a report on the revenue and tax
impact of the new SMV on taxpayers including three (3) different proposed options in
adjusting the existing assessment levels and tax rates, for consideration of the

c
18
Sanggunian, in accordance with the rules and regulations promulgated by the
Secretary of Finance.

Section 37. Submission of the Revenue and Tax lmpact Report with
Recommendations. The concerned assessor and the local treasurer shall submit
the Revenue and Tax lmpact Report to the local chief executive and to the
Sangguniang Panlalawigan, Sangguniang Panlungsod, or Sangguniang Bayan, as
the case may be, within thirty (30) days from receipt of the new SMV . The Revenue
and Tax lmpact Report shall contain the revenue estlmation from the new SMV and
ascertainment of the impact on taxpayers, with three (3) proposed options on the
adjustment of the assessment levels and tax rates adopted in the existing ordinance.

Section 38. Gonsistency with R.A. No.7160. Except as othenruise provided in the
Act, this IRR shall not be construed to undermine the power of LGUs to set and
adjust the assessment levels and tax rates, in accordance with the provisions of R.A
.No. 7160, or the Local Government Code of 1991 , as amended.

Chapter 6. Uses of the Schedule of Market Values (SMVs)

Section 39. Uses of the SMVs. The approved SMVs shall be used, as follows

39.1 For taxation purposes

a. As basis for the general revision of the assessment and property classification
by the local assessor, and in the determination and adjustment of the
assessment levels and tax rates to be adopted by the LGU through the
Sanggunian;

b. As basis in determining the Market Value for other real property-related taxes
such as Tax on Transfer of Real Property Ownership, Thx on Sand and
Gravel, Community Tax, and other fees and charges;

c. The Commissioner of lnternal Revenue shall use the SMV or the actual gross
selling price in consideration, as stated in real property transaction
documents, whichever is higher, in computing any internal revenue tax.

39.2 For other purposes

a. As benchmark for the appraisal of real property and other related purposes of
all government agencies or instrumentalities, and Government-Owned or
-Controlled Corporations (GOCCs), such as for purposes of public land
disposition, land development for housing, township and infrastructure, and
mortgage to secure the performance of obligations, among others; and

b. As benchmark for the appraisal of real property and other related purposes of
all government agencies or instrumentalities, and GOCCs, such as for
purposes of letter-offer in negotiated sale and the payment of just
compensation in expropriation proceedings under existing laws.

19

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Section 40. Additional lndicator for the Grant of the Seal of Good Local
Governance. Compliance with the Act and this IRR shall be considered as an
additional indicator under the criteria of good fiscal or financial administration or
financial sustainability under Section 7(a) of R.A. No. 11292, otherwise known as
"The Seal of Good Local Governance Act of 2019."

Chapter 7. Updating of the Schedule of Market Values (SMV)

Section 41. Updating of the SMV Upon the Effectivity of the Act. All provincial
assessors, together with the municipal assessors and the city assessors, including
the assessor of the lone municipality within the Metropolitan Manila Area and the
assessor of the PHIVIDEC-IA, shall update their respective SMVs within two (2)
years from the date of effectivity of the Act or not later than July 5,2026.

The BLGF shall prepare the schedule of activities within sixty (60) days from the
effectivity of this IRR for the updating of the SMVs in all areas within the territorial
jurisdiction of the LGUs and the PHIVIDEC-IA, and shall provide guidelines for the
SMV updating within the aforementioned two (2)-year period in order to ensure
consistency in the use and application of the valuation standards.

Upon effectivity of the new SMV as certified by the Secretary of Finance, ordinances
adopting SMV as basis for the general revision of real property values and
assessment, and classification of real properties shall be deemed automatically
amended without prejudice to the enactment of an ordinance by the Sanggunian
adjusting the assessment levels, tax rates, and such other matters pertaining to the
administration of real property tax.

Section 42. Regular Updating of the SMVs and General Revision of Real
Property Values. After the first updating of the SMV upon the effectivity of the Act
and this lRR, all provinces, cities, and the lone municipality in Metropolitan Manila
Area, and the PHIVIDEC-IA shall undertake the updating of theirSMVs and conduct
the general revision of real property values and assessments, and classifications of
real property every three (3) years thereafter. The BLGF shall prepare the schedule
for the updating of the SMVs in all areas under the territorial jurisdiction of the LGUs
and the PHIVIDEC-IA.

Upon certification of the regularly updated SMV an ordinance shall be enacted by

the Sangguniang Panlalawigan in the case of the province, the Sangguniang
Panlungsod in the case of the city, or the Sangguniang Bayan in the case of the lone
municipality in the NCR, for the conduct of general revision of real property values
and assessments, and classification of real properties. An ordinance may also be
enacted for the purpose of adjusting the assessment levels, tax rates, and such
other matters pertaining to the administration of real property tax, as the Sanggunian
concerned will deem appropriate.

Section 43. Revision of the SMV During its Effectivity. Notwithstanding the
effectivity of the SMV the provincial assessor, city assessor, or the municipal
assessor of the lone municipality in the Metropolitan Manila Area, shall recommend
the revision thereof under the following circumstances:

20
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43.1 ln cases of any significant change in the Market Values where the property is
located after the SMV has been approved and prior to the next revision, brought
about by the following:

a. lntroduction of road right of way or similar infrastructure;

b. ln times of calamities or disasters, whether man-made or natural;

c During a pandemic or declared public health emergency, whether national

or local;

d. Other analogous adverse circumstances.

43.2 Where a correction of errors and inequalities in the SMV is deemed necessary.

Such revision of the existing SMV due to any of the foregoing circumstances shall be
recommended by the provincial assessor, city assessor, or the municipal assessor of
the lone municipality within Metropolitan Manila Area, or the assessor of the
PHIVIDEC-IA, as the case may be, to the BLGF Regional Office through the BLGF
Regional Director for LGUs outside the Metropolitan Manila Area and the
PHIVIDEC-IA, and to the BLGF Central Office for LGUs within Metropolitan Manila
Area.

Such revision of the SMV shall be subject to the review by the BLGF Regional
Offices, which shall submit their recommendations to the Head of the BLGF, in
accordance with Sections 14 and 15 of the ACT.

Section 44. Suspension of the Genera! Revision of Real Property Values and
Assessments. The provincial assessor, city assessor, or municipal assessor of the
lone municipality within Metropolitan Manila Area, as the case may be, may suspend
the conduct of general revision of real property values and assessments, in times of
national emergency declared by the President or a local state of calamity declared
by the local chief executive.

ln the case of a national state of emergency, the suspension shall take effect until the
declaration of national emergency has been lifted by the President. ln the case of a
local state of calamity, the suspension shall be for a period of thirty (30) days from
the declaration by the local chief executive of the local state of calamity. However, if
the local state of calamity continues to exist after the expiration of the thirty (30)
day-period of suspension, the BLGF may recommend for further extension to the
Secretary of Finance for a period of another thifty (30) days or during the continued
existence of the calamity, whichever is shorter.

Chapter 8. Gapacity Building lnterventions

Section 45. Development and Conduct of Capacity Building lnterventions. The

BLGF shall, in coordination with the Philippine Tax Academy created under R.A. No.
10143, or "An Act Establishing the Philippine Tax Academy," develop and conduct
the necessary tralnings for all local assessors, local officials and staff, and other

J
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concerned personnel which will cover areas related to real property valuation, as
follows:

a. Preparation of the SMV in accordance with the PVS and lnternational

Valuation Standards, concepts, principles and practices; standards and
methods of real property valuation based on lnternational Valuation Standards
as set forth by the lnternational Valuation Standards Council, among others;
types of property valuation (e.9., market value and assessed value) as
defined in relevant laws and regulations; techniques for data collection and
analysis used in valuation; understanding the factors that affect SMVs; and
maintaining consistency and accuracy in SMVs across different localities,
adhering to international valuation standards;

b. Conduct of impact studies, including the preparation of the revenue and tax
impact report; concepts and methodologies for conducting real property
valuation; and the potential economic and social impact of changes in real
property valuation;

c. Preparation of compliance reports; preparation of reports on real property

valuation activities for submission to relevant agencies; ensuring compliance
with reporting requirements mandated by the Act, this lRR, and other related
laws; and

d. Other relevant subject areas, including, but not limited to, specific valuation
methodologies for different property types (e.9., land, buildings, machinery);
dispute resolution processes related to real property valuation; and
technological advancements in the field of real property valuation.

TITLE VI. DEVELOPMENT AND MAINTENANCE OF

REAL PROPERTY MARKET DATABASE

Chapter 1. Development and Maintenance of the

Real Property Information System

Section 46. Development of the Real Property lnformation System (RPIS). The
BLGF shall develop and maintain an up{o-date electronic database of the sale,
exchange, lease, mortgage, 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 structure, and on prices of plant, machinery, and
equipment.

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, and LGUs: Provided, That the mandatory submission of
documents and information shall be subject to the prohibition of disclosure, and
security of certain information under RA No. 10173, or the "Data Privacy Act,"
particularly Sections 20 and 21 thereof, and other existing laws. The updated
database shall be made available at no cost to all LGUs, and other national
government agencies, without need of prior approval, including the Commissioner of
lnternal Revenue or their duly authorized representative subject to the provisions of

22

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Section 270 of R.A. No. 8424, otherwise known as the "National lnternal Revenue
Code of 1997," as amended, and Sections 12and 13 of R.A. No. 10173. Provided,
fufther, That the private sector may access the database subject to the guidelines of
the BLGF: 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 26 of the Act.

The BLGF shall establish mechanisms for the electronic submission of the required
documents in accordance with the provisions of Chapter 2, Article lll of the Act.

All provinces, cities, and municipalities shall automate their real property tax
administration operations such ?S, but not limited to, tax mapping technology,
maintain software-enabled valuation systems, undertake regular data cleansing, and
computerized records management, with the guidance of the BLGF, in coordination
with the Department of lnformation and Communications Technology (DICT). The
DICT shall provide, free of charge, the appropriate equipment, connectivity and
interoperable information and communications technology platform, including their
corresponding maintenance, and the appropriate training and capability building
programs to all LGUs. The DICT shall prioritize provinces, cities or municipalities
belonging to third and lower income class LGUs that do not have an existing
information communication technology platform in place, to ensure compliance with
this section. The BLGF, together with DICT, shall ensure the full automation by all
LGUs of their real property systems within two (2) years from the effectivity of the
Act.

Chapter 2. Supply and Transmission of Real Property Transactions Data

Section 47. Duty of Register of Deeds to Supply Assessors with Real 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 municipal assessor of the lone municipality in the NCR, and the
assessor of PHIVIDEC-IA, an abstract of the entire registry every three (3) months
and copies of all contracts selling, transferring or othenruise converting, leasing, or
mortgaging real property registered every end of the month free from any fees and
charges. 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.

Section 48. Transmission of Real Property Transactions Data to the BLGF.

Upon operationalization of the real property transactions database as provided in
Section 22 of the Act and Section 46 of this lRR, it shall be the duty of the Registers
of Deeds, BlR, Notaries Public, officials issuing Building Permits, and the Geodetic
Engineers conducting surveys within a locality to electronically transmit to the BLGF,
free of charge, relevant real property transactions data, every quarter in accordance
with the rules and regulations to be promulgated by the Secretary of Finance.

23

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 TITLE VII. APPOINTMENT OF ASSESSORS

Section 49. Appointment of Assessors. Notwithstanding Section 472 of R.A. No.

7160, or the Local Government Code of 1991, as amended, 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 laws, R.A. No. 9646, othenruise
known as the "Real Estate Service Act of the Philippines," rules, regulations, and the
following guidelines:

a. ln the case of provincial and assistant provincial assessors and city and
assistant city assessors, the appointee shall be chosen from the list of at least
three (3) ranking eligible candidates within the region;

b. ln the case of city and assistant city assessors, and the municipal and
assistant municipal assessor 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. ln 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.

TITLE VIII. PENAL PROVISIONS

Section 50. Violations Committed by Government Officials and Employees. The

following violations shall be punishable by a fine equivalent to one (1)month to six
(6) months of the official or employee's basic salary, or by suspension from
government service for not more than one (1) year, or both, in addition to any
criminal and administrative penalties imposable under existing laws:

a. Failure of any official or employee of the BLGF or other concerned

government agency, without justifiable reason, to provide or furnish data or
information required pursuant to Sections 22,23, and 24 of the Act;

b. Failure of the assessor or assistant

assessor to comply with the valuation
standards developed and adopted pursuant to the Act, or deliberate
concealment of any deviation or departure from such standards in the
valuation of real property;

c. Failure or refusal of an assessor, without justifiable reason, to prepare,

submit, revise, and implement the SMVs, or conduct general revisions, within
the period set forth in the Act; and

d. Failure or refusal of any government official or employee to review, approve,

and implement the SMVs, as well as to conduct general revisions within the
period set forth in the Act, or cause the improper use of SMVs.

Section 51. Unlawful or Unauthorized Processing or Disclosure of lnformation.

The unauthorized processing, accessing, disposal, disclosure, sharing, publication,
or use of the RPIS data, including all illegal acts as defined under R.A. No. 10173, or
24

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the "Data Privacy Act," shall be punishable in accordance with the aforecited law, its
implementing rules and regulations, R.A. No. 10175, othenruise known as the
"Cybercrime Prevention Act of 2012," and other relevant laws.

Section 52. Other Violations of the Act. Any person, whether natural or juridical,
who violates any provision of the Act other than those punishable under Sections 26
and 27 thereof shall, when warranted, be dealt with under applicable existing laws.

TITLE IX. TRANSITORY PROVISIONS

Section 53. Transitory Guidelines. LGUs, which are in the process of updating
their SMVs upon the effectivity of the Act, shall continue with such revision in
accordance with Sections 15, 16, 17 and 19, of the Act and Chapters 3,4, and 5,
Title V of this IRR: Provlded, That proper notification and coordination with the BLGF
shall be undertaken. Such notification and coordination shall include submission of
progress report and schedule for the completion of the SMV updating and general
revision to the BLGF Central Office or BLGF Regional Offices, as the case may be.

Section 54. Basis of the lnternal Revenue Taxes. ln case the SMVs are not yet
available or updated, the Commissioner of lnternal Revenue shall adopt the existing
SMVs, Zonal Values or the actual price or consideration as stated in the real property
transaction documents, whichever is the highest, for purposes of computing any
internal revenue tax Provided, That the maximum assessment levels in Section 218
of R.A. No. 7160, or the Local Government Code of 1991," shall be observed or
adopted.

Section 55. Cap on the lncrease of the Real Property Tax Resulting from the
lncrease in Real Property Values and Assessments. For the first year of
effectivity of the approved SMV in accordance with the Act and this lRR, any
increase in real property taxes shall be limited to a maximum of six percent (6%) of
the real property taxes assessed on such properties prior to the effectivity of the first
SMV under the Act: Provided, That the cap shall be applicable to each type of real
property tax, including Special Education Fund, ldle Land Tax, and other Special
Levies in real property: Provided, further, That the LGU may impose, by way of an
ordinance, a cap on the increase in real property taxes for the succeeding years.

Section 56. Grant of Tax Amnesty on Real Property Taxes and Special Levies
on Real Property. There is hereby granted a real property tax amnesty on penalties,
surcharges, and interests from all unpaid real property taxes, including the Special
Education Fund, ldle Land Tax, and other Special Levy Taxes, that were incurred
prior to the effectivity of the Act or on July 5, 2024. Provided, That the real property
tax amnesty can only be granted within two (2) years after the effectivity of the Act or
until July 5,2026.

This relief may be availed of by a delinquent real property owner with the option of
one-time payment or installment payment of the delinquent real property taxes within
two (2) years from the effectivity of the Act or until July 5,2026. The LGUs may
issue an ordinance to determine the means and method of payment only. ln no way
shall non-issuance of such an ordinance prevent the implementation of the grant of
tax amnesty in accordance with the Act.

25
The amnesty shall not extend to the following real properties:

a) Delinquent real properties which have been disposed of at public auction to

satisfy the real property tax delinquencies;

b) Real properties with tax delinquencies which are being paid pursuant to a
compromise agreement; and

c) Real properties subject of pending cases in court for real property tax
delinquencies.

Section 57. Saving Clause. The Zonal Values, as determined by the BIR and
approved by the Secretary of Finance for internal revenue tax purposes, and the
existing SMVs prepared by the provincial assessors, together with the municipal
assessors, and the city assessors, including the municipal assessor of the lone
municipality of Metropolitan Manila Area and the assessor of the PHIVIDEC-IA, 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 by the
Secretary of Finance in accordance with Section 16 of the Act, which shall bewithin
two (2) years upon the effectivity of the Acl. Provided, The PHIVIDEC-IA, pursuant to
Section a(h) of Presidential Decree No. 538, shall continue to levy, assess, and
collect real property taxes on real properties within its jurisdiction.

TITLE X. FUNDING REQUIREMENTS

Section 58. Budgetary Requirements for the Updating of SMVs and General
Revision of Real Property Values and Assessments. Each local Sanggunian shall
appropriate the necessary funds from locally generated revenues, the National Tax
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 property
values and assessments, and the administration of real property taxes in all LGUs.
The Secretary of Finance, through the BLGF, shall grant a subsidy to third (3'd) and
lower income class LGUs in order to augment their resources for purposes of
creating the RPTAF.

Section 59. Appropriations. The initial amount for the implementation of the Act
and this IRR shall be charged against the available funds of the National
Government Agencies and LGUs concerned. Thereafter, the necessary funding shall
be included in the annual General Appropriations Act and in the respective local
budgets of the LGUs concerned.

TITLE XI. MISCELLANEOUS PROVISIONS

Section 60. Ensuring Gender Equity, lnclusivity, and Fairness. The DOF, the
LGUs, and agencies concerned herein shall employ gender sensitive and gender
responsive mechanisms in all aspects of the implementation of the Act and this lRR.

26
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Section 61. Reportorial Requirement. The BLGF shall submit to the joint
Congressional Oversight Committee on the Comprehensive Tax Reform Program
(COCCTRP) created under the National lnternal Revenue Code of 1997, as
amended, a detailed report on the implementation of the Act during the first (1"t)
quarter of every year.

Section 62. Suppletory Application of Existing Laws. The provisions of R.A. No.
7160, or the Local Government Code of 1991, as amended, and other laws
consistent with the Act shall have suppletory effect.

Section 63. Computation of Periods. ln computing a period indicated in the Act

and this lRR, the provisions of Section 31, ChapterS, Book 1 of the Executive Order
(E.O.) No.292, known as the "Administrative Code of 1987" shall be followed.

lf the last day of any period for action by a government entity or for submission to a
government entity falls on a Saturday or a Sunday, regular holiday, special
non-working holiday, or other non-working days duly declared by the President or the
Local Chief Executive, it is understood that the last day shall be the next working
day.

Section 64. Separability CIause. lf any section or provision of this IRR shall be
declared unconstitutional or invalid, other sections or provisions not affected thereby
shall continue to be in full force and effect.

Section 65. Repealing Clause. The following provisions are hereby repealed

a. Sections 199(e), (g), and (o),212, and 219 of RA No. 7160, otherwise known
as the "Local Government Code of 1991";

b. Section 9 of Presidential Decree No. 921, entitled "Providing for the

Administration of Local Financial Services in Metropolitan Manila, Creating
Local Treasury and Assessment Districts Therein, and for Other Purposes,"
on the administration of local financial services in Metropolitan Manila and
creating Local Treasury and Assessment Districts; and

c. Section 6(e) of R.A. No. 8424, othenrise known as the "National lnternal
Revenue Code of 1997,"as amended.

The following provisions are hereby amended insofar as they are inconsistent with
the provisions of the Act:

a. Section 23, Chapter lV, Title ll, Book lV of E.O. No. 292, othenruise known as
the "Administrative Code of 1987";

b. Sections 19, 135(a), 138, 201 ,218,220, and 472(b)(8) of R.A. No. 7160;

c. Sections 5, 6, and 7 of R.A. No. 10752, othenruise known as "The

Right-of-Way Act"; and

27
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 d. Sections 24(D),27(dX5), and 88(b) of the National lnternal 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 the Act and this IRR
are hereby repealed, superseded, or modified accordingly

Section 66. Effectivity. The IRR shall take effect fifteen (15) calendar days after its
complete publication in the Official Gazette or in any newspaper of general
circulation.

Approved. oEc i r 2021

Finance

28

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