Reforms in real property valuation and assessment pushed

August 12, 2013 at 10:16

The local government units (LGUs) will generate more revenues from real property tax under the proposed “Real Property Valuation and Assessment Reform Act” filed in the House of Representatives.

Rep. Mel Senen Sarmiento (2nd District, Western Samar) authored House Bill 84, which seeks to ensure a uniform set of standards of valuation in the country and correct inefficiencies in the allocation and utilization of the land market.

“There is need to remove the existence of multiple, unrealistic and corruption-prone system of land valuation in the country,” Sarmiento said.

Under the bill, the Real Property Valuation Service (RPVS) within the Bureau of Local Government Finance (BLGF) shall develop and implement policies, plans, programs, and operating standards in all aspects of valuation and appraisal of real properties.

The RPVS shall be headed by an Executive Director who will recommend to the Secretary of Finance the approval of the Schedule of Market Values (SMVs) prepared by the provincial assessors together with municipal and city assessors, including the municipal assessor in Metro Manila, for tax and other purposes.

The RPVS will also create a Central Consultative Committee that shall serve as the forum on matters pertaining to the setting, adoption, and maintenance of valuation standards, the bill states.

Likewise, the BLGF shall develop and maintain an up-to-date electronic database of the sale, exchange lease, and all other real property transactions in the country.

Sarmiento said the basis of taxation should be the current market value prevailing in the locality where the property is located.

“This bill is a product of long hours of deliberation among all stakeholders during the committee and technical working group meetings and regional consultations during the 15th Congress. All the views of those who participated had shaped this re-filed measure,” Sarmiento said.


Source: Dionisio P. Tubianosa, Congress Media Relations Service, 07 August 2013

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