| THE AYALA WAY

Vol 6 No 53

"It’s always good to hear, learn, and understand these laws from the very people who were tasked to implement them. […] We hope that this is just the start of our conversation on how we will understand the implementation of RPVARA."

ATTY. CHARLENE TAPIC-CASTRO
AC Policies and Regulations Management Head

(Left) Atty. Neil Lamban talks about key provisions of the Real Property Valuation and Assessment Reform Act, and (right) Engr. Eduardo Cedo shares the role of the Philippine Association of Local Treasurers and Assessors

DO WHAT'S RIGHT

Keeping Up With Real Property Standards

For its second learning session, the Ayala Group Regulatory Council invited the Department of Finance's Bureau of Local Government Finance (DOF-BLGF) Local Assessment Operations Division Chief Neil Lamban and Philippine Association of Local Treasurers and Assessors (PHALTRA) Executive Officer Eduardo B. Cedo Jr. to discuss the implications of Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act (RPVARA), from both national and local perspectives.

Signed into law on June 13, 2024, and effective July 5, 2024, RPVARA aims to standardize and centralize the real property valuation in the Philippines, with the BLGF as primary agency to lead and manage its implementation. Salient provisions of the law include:

• Philippine Valuation Standards, to be developed by BLGF so that there is a consistent and uniform method for property appraisal, conforming with internal valuation standards approved by Finance Secretary;
• Schedule of Market Values, prepared solely by the local government for taxation, expropriation, and other purposes, and which will now be approved by Finance Secretary;
• Real Property Information System, a digital database to keep track of all property transactions, including sales, leases, and other transfers, that will be made available to local government units, government agencies, and the private sector; and
• Tax Amnesty, a two-year grace period (from July 5, 2024, to July 4, 2026) for property owners with unpaid taxes prior to the effectivity of RPVARA, waiving penalties and interest fees.

Sharing the local perspective, Cedo explained the mass appraisal process to prepare the schedule of market values, which all provincial, city, and municipal assessors must update no later than July 5 next year.

For his part, Lamban asked the private sector’s assistance to help implement the law: “It takes two to tango. This country should be in hand-in-hand, teamwork between the government and the private sector." In particular, he suggested fostering collaboration with the local government to stay abreast of the schedule of market values.