Senate OKs Real Property Valuation and Assessment Reform Act

Senator Sherwin Gatchalian, who sponsored the measure, said the enactment of the measure will provide a respite for taxpayers of real property tax as the measure sets a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax. (File photo: Senate of the Philippines/Facebook)

MANILA – Senators unanimously approved on Monday Senate Bill No. 2386 or the Real Property Valuation and Assessment Reform Act (RPVARA), a priority legislation of President Ferdinand R. Marcos Jr..

Senator Sherwin Gatchalian, who sponsored the measure, said the enactment of the measure will provide a respite for taxpayers of real property tax as the measure sets a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax.

“Waiving the payment of interests, penalties, and surcharges on unpaid or delinquent real property taxes through the amnesty component of RPVARA would encourage tax compliance later on and significantly enhance the government’s revenue-collection efforts,” said Gatchalian, who chairs the Senate Committee on Ways and Means.

Once enacted into law, it would hasten the automation of services provided by local government units, which in turn would enhance the efficiency of tax collection and improve the delivery of services.

This includes the creation of Real Property Information System which will maintain an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declaration in the country.

“Through RPVARA, the country will have uniform valuation standards for real property assets, promoting transparency and enhancing confidence among investors,” Gatchalian said.

He pointed out that establishing a standard valuation will foster equity as it will facilitate property rights enforcement, resulting in wealth generation by converting and mobilizing lands and other real property units into economically productive use.

Real property tax includes Special Education Fund, Idle Land Tax, and other special levy taxes which can all be imposed by a local government unit pursuant to the Local Government Code.

The measure shall also reorganize the Bureau of Local Government Finance under the Department of Finance and establish the Real Property Valuation Service.