Fostering growth and tax policy innovation with RPVARA

By prioritizing transparency and digitalization, RPVARA not only enhances the accuracy of property valuations, but also fosters a more equitable system for property owners and local governments.

- JUAN PAULO C. SANTOS

IN BRIEF:

• At the SGV 4th Tax Symposium, Executive Director Consolacion Agcaoili emphasized the Bureau of Local Government Finance's (BLGF) commitment to modernizing local fiscal management and enhancing transparency in property valuation through the implementation of the Real Property Valuation and Assessment Reform Act (RPVARA) by 2028.

• Pursuant to RPVARA, the BLGF is leading the development of a comprehensive digital roadmap, which will empower local government units (LGUs) to automate real property assessments, streamline tax collection processes, and allow electronic payments.

• The creation of a centralized property valuation system under RPVARA will grant government agencies immediate access to updated property records and market values. This innovation is expected to resolve persistent bottlenecks in infrastructure projects, especially those involving land acquisition, valuation, and compensation.

At the SGV 4" Tax Symposium, Executive Director (ED) Consolacion Q, Agcaoili of the Bureau of Local Government Finance (BLGE) highlighted the agency’s commitment to modernize local fiscal management and promote transparency in property valuation, aligning with the symposium’s theme “From Compliance to Confidence: Trust, ‘Transformation, and Transparency.”

As Republic Act No. 12001 or the Real Property Valuation and Assessment Reform Act (RPVARA) moves toward full implementation by 2028, its twin features of digitalization and transparency are expected to bring about consistent property valuations nationwide and enable LGUs to generate accurate property valuations, which will boost their tax collection capacity and strengthen fiscal autonomy.

Prior to the law, real property valuation was done by referring to the BIR schedule of zonal values, or the schedule of fair market value of the LGUs. As a result, there are varying and sometimes even conflicting bases for determining real property valuation.