Senate OKs real property valuation reform bill on 3rd reading

The Senate on Monday unanimously approved on third and final reading a bill reforming the property valuation and assessment in the country.

With 23-0-0 votes, the chamber passed Senate Bill 2386 or the Real Property Valuation and Assessment Reform Act, a priority measure of the administration.

SB 2386 seeks to provide a single, transparent and updated valuation system and it also seeks to provide relief to delinquent property owners who may have fallen on their property tax payments by granting them a two-year amnesty.

A Real Property Information System or a central database where all property information is readily available will likewise be established under the proposed legislation to ensure access to accurate property valuations and reduce discrepancies.

Underestimated property’s value during expropriation will also be avoided through a unified valuation system which will serve as the government and property owners’ basis for property prices.

The bill also provides safeguards to taxpayers who might be affected by sudden and substantial increases in their Real Property Tax Obligations.

A new Schedule of Market Value will take effect after two years from the enactment of the proposed measure to allow stakeholders to adapt to the changes.

After this two-year period, a one-time six percent cap on each type of Real Property Tax will be imposed as a safeguard against sudden financial burdens on taxpayers.

Once the one-time cap lapses, the local government units are allowed to extend it.

LGUs will also be authorized to alter the assessment levels and tax rates to prevent sudden increases in Real Property Tax dues.

The Bureau of Local Government Finance under the Department of Finance will be tasked to become the primary agency on real property valuation. A new unit under the bureau, the Real Property Valuation Service, will be created under the proposed measure.—RF, GMA Integrated News