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

At the SGV 4" Tax Symposium, Executive Director (ED) Consolacion Q, Agcaoili of the Bureau of Local Government Finance (BLGF) 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.

To address this issue, RPVARA established astandard basis of valuation through the Philippine Valuation Standards (PVS) and the Schedule of Market Values (SMVs).

Ms. Agcaoili said that, after extensive consultations, the BLGF is ready to launch the 2025 edition of the PVS, which will be the basis for LGUs preparing their SMVs.

‘The law requires that all SMVs be developed after due consultation, making the entire process transparent and open to scrutiny. Prior to the submission of the proposed SMV to the BLGF, LGUs must conduct at least two public consultations and hearings, with the proposed values being posted on official websites and in public spaces.