1. Property valuation reform
2. Marcos OKs property valuation law
3. Overhauling property valuation system
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Marcos OKs law that overhauls outdated property valuation system
3412, which eventually became Republic Act No. 12001, aimed at overhauling the outdated property valuation system in the Philippines. President Marcos signed the law, now known as the Real Property Valuation and Assessment Reform Act (RPVara), to streamline and digitalize the real property valuation and assessment system, promoting transparency and efficiency in tax collection. The law also includes a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax, encouraging long-term tax compliance. Industry stakeholders anticipate benefits such as standardized valuations, reduced tax leaks, and increased transparency in the real estate market, ultimately attracting more investments and improving the country’s appeal to investors. The revamp of the flawed land valuation system in the Philippines aimed to address the high costs to the government caused by inconsistent real property values. With multiple agencies and appraisers using different methods, delays in government projects and investments were common due to compensation disputes and lengthy litigations. The new Real Property Valuation Reform Act provides a single system of valuation for all LGUs and government agencies, updating outdated valuations and transferring approval authority to the finance secretary. Additionally, a two-year tax amnesty program is in place, allowing delinquent owners to settle dues and capping tax increases to 6% initially.
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1256, which aimed to reform the real property valuation and assessment system in the Philippines. After years of debate and revisions, the bill was finally signed into law as Republic Act No. 12001 by President Marcos himself.
The Real Property Valuation and Assessment Reform Act (RPVara) is set to revolutionize the country’s tax collection system by modernizing and digitalizing the outdated property valuation and assessment process. President Marcos believes that this new law will not only enhance tax collection but also stimulate economic growth by attracting investments and creating job opportunities nationwide.
One of the key features of RPVara is the adoption of a uniform real property appraisal that complies with international standards. This will ensure consistency and accuracy in property valuations, leading to fairer tax assessments. The law also establishes a Real Property Information System to digitalize and streamline real property tax administration in local government units (LGUs), promoting efficiency and transparency.
Additionally, RA 12001 offers a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax, encouraging long-term tax compliance. By standardizing valuations, plugging tax leaks, and promoting transparency, the new law aims to instill confidence in the real estate market and improve overall tax collection efficiency.
Industry stakeholders, such as the Chamber of Real Estate and Builders’ Associations Inc. (Creba) and Colliers Philippines, have expressed optimism about the potential benefits of RPVara. Creba sees the law as an opportunity to reform a system that has long been plagued by corruption and inefficiency. Colliers Philippines believes that the law will bring much-needed transparency to the real estate market, which is crucial for attracting investors in a post-pandemic recovery phase.
However, the success of RPVara will ultimately depend on the effective implementation of its implementing rules and regulations (IRR). Property players, such as developers, investors, and end-users, will need to carefully scrutinize the IRR to understand the implications of the new law on their operations and tax liabilities.
Overall, the passage of the Real Property Valuation and Assessment Reform Act marks a significant milestone in the Philippines’ efforts to modernize its tax collection system and promote transparency in the real estate market. With its potential to improve tax compliance, standardize valuations, and enhance the ease of doing business, RPVara is poised to have a positive impact on the country’s economic development and investment climate. In a move to address the long-standing issues surrounding the flawed land valuation system in the Philippines, Senator Imee Marcos has spearheaded a significant overhaul. The new law, known as Republic Act No. 11534 or the Real Property Valuation Reform Act (RPVara), aims to revamp what was considered a flawed and outdated property valuation system. Let’s delve into the key highlights of this groundbreaking legislation.
One of the major problems plaguing the previous system was the lack of consistency in real property values. With multiple government agencies, local government units (LGUs), and private appraisers using different methods and standards for valuation, the property sector suffered from inconsistent valuations. This inconsistency led to delays in government projects and investments, particularly in cases involving compensation and right-of-way issues.
Moreover, many valuations used for governmental purposes were outdated, further exacerbating the problem. As of 2018, only a fraction of LGUs and Revenue District Offices had updated their Schedule of Market Values (SMVs) and zonal values, respectively, leaving a significant portion of properties assessed based on obsolete data.
The RPVara seeks to address these issues by providing a single system of valuation to be used by all LGUs and government agencies for taxation and other purposes. The law also transfers the approval of SMVs from local government councils to the finance secretary, separating the technical function of valuation from the political function of setting assessment levels and tax rates.
Additionally, the RPVara mandates the creation of a comprehensive Real Property Information System, which will serve as a centralized database of all real property transactions. This system will streamline the process of recording and accessing property information, improving transparency and efficiency in property valuation.
Furthermore, the law includes a two-year real property tax amnesty program aimed at encouraging delinquent property owners to settle their dues. The amnesty covers penalties, surcharges, and interests from unpaid real property taxes, allowing owners to clear their obligations through a one-time payment or installment plan. However, certain properties, such as those already disposed of through public auction or subject to pending court cases, are not eligible for the amnesty.
To mitigate the impact of potential tax increases resulting from the updated valuations, the RPVara imposes a cap on the annual increase in real property taxes for the first year of implementation. Subsequent years allow LGUs to enact ordinances imposing caps on tax increases, providing a measure of control over tax adjustments.
In conclusion, the Real Property Valuation Reform Act marks a significant step towards modernizing and standardizing the property valuation system in the Philippines. By addressing the longstanding issues of inconsistency, outdated valuations, and inefficiencies, the new law aims to unlock the full potential of the land sector and enhance revenue generation for both national and local governments. With these reforms in place, the real estate market in the Philippines is poised for a more transparent, efficient, and fair valuation process.
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