The Department of Finance (DOF) said the Real Property Valuation and Assessment Reform Act (RPVARA) will enable local government units (LGUs) to achieve financial independence.

In a statement, Finance Secretary Ralph G. Recto said the RPVARA, also known as Republic Act No. 12001, will overhaul the outdated property valuation system prevalent in the country.

Recto also said the law will eliminate inconsistent and unfair practices that impede local governments from efficiently providing prompt and dependable public services.

The DOF earlier estimated that LGUs may have lost P30.5 billion in revenues due to their outdated property valuation systems.

“We can expect our LGUs to be adequately funded and more equipped to attend to the needs of their constituents,” Recto said.

“Investors and landowners alike can expect one hundred percent transparency and accuracy in the valuation of their properties with this new law,” he added.

On June 13, President Marcos signed into law RA 12001, one of the priority measures of the DOF.

The RPVARA will establish a single system of valuation for real properties that is aligned with international standards to be used for local and national taxation, among other purposes.

READ: Will Real Property Valuation Reform Act lead to increased ‘amilyar’?

Meanwhile, Senator Win Gatchalian said the enactment of the RPVARA would also provide reprieve for delinquent taxpayers of real property tax.

This means that delinquent taxpayers would not have to pay interest or penalty for any outstanding real property tax payments. Specifically, the new law sets a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax.

“We hope that the passage of this law would eventually encourage compliance among taxpayers of real property tax,” said Gatchalian, the chair of the Senate Committee on Ways and Means and principal author of the measure.

According to him, the new legislation is also expected to hasten the automation of services provided by LGUs.

This, in turn, would likely enhance the efficiency of tax collection of LGUs and, consequently, the delivery of services to their constituents.

He explained the creation of the Real Property Information system, which will provide an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declarations in the country.

He said that adopting a better valuation system ensures that more people benefit from their land and properties, promoting development and boosting wealth for the country.