RMC No. 85-2024: Circularizing Republic Act No. 12001, titled “An Act Instituting Reforms in Real Property Valuation and Assessment in the Philippines, Reorganizing the Bureau of Local Government Finance, Granting of Tax Amnesty on Real Property, and Special Levies on Real Property, and Appropriating Funds Therefor.”

Key points

1. Central Consultative Committee. The Committee is chaired by the head of the Bureau of Local Government Finance (BLGF). It has a representative each from the BIR, DENR, BSP, the national organization of government assessors, ULAP, LRA, the private appraisal sector and the real estate sector. BIR, DENR and BSP representatives must perform valuation-related functions, and the private appraisal representative must have at least five (5) years of active practice as a real estate appraiser.
2. Regional Consultative Committee. The BLGF Regional Director chairs it. Members are heads or authorized representatives of the BIR Regional Office, DENR Regional Office, regional assessors’ organizations, the private appraisal sector, the real estate sector, the bankers’ association, and the regional chapters of the league of cities and the league of provinces.
3. Schedule of Market Values. The approved SMV goes to the local chief executive and Sanggunian through the assessors. The assessor submits a revenue and tax impact report with three (3) proposed options within thirty (30) days from receipt of the approved SMV.
4. Use of the SMV. The SMV is the basis for general revision of assessment and classification and for adjusting assessment levels and tax rates. It is also the basis for market value in other property-related taxes. The Commissioner uses the SMV or the actual gross selling price in the transaction documents, whichever is higher, in computing any internal revenue tax. It is also the basis for property appraisals of all government agencies, instrumentalities and GOCCs.
5. Real property tax amnesty. The amnesty covers penalties, surcharges and interests on unpaid real property taxes, including Special Education Fund, idle land tax and special levy taxes, before the Act took effect. It may be availed within two (2) years after effectivity, with one-time or installment payment. It does not cover properties disposed of at public auction, properties paid under a compromise agreement, or properties subject of pending court cases for real property tax delinquencies.

Who is affected

• Delinquent real property owners
• Local assessors and Sanggunians
• BLGF, BIR and other agencies sitting on the committees

Deadlines and effectivity

• Amnesty availed within two (2) years after effectivity of the Act
• Assessor impact report within thirty (30) days from receipt of the approved SMV