The Senate on Monday approved a bill that seeks to institutionalize reforms in real property valuation and assessment.

With 23 yes votes, no negative votes and abstentions, Senate Bill 2386 or the Real Property Valuation and Assessment Reform Act was approved on third and final reading.

The House version was passed on Dec. 13, 2022. It is one of the priority legislation set by President Ferdinand Marcos Jr in his State of the Nation Address.

Senator Sherwin Gatchalian, chairperson of the upper chamber’s Ways and Means panel, said this would provide a two-year amnesty on interest and penalties for taxpayers with unpaid real property tax.

“Waiving the payment of interests, penalties, and surcharges on unpaid or delinquent real property taxes through the amnesty component of RPVARA would encourage tax compliance later on and significantly enhance the government's revenue-collection efforts,” Gatchalian said.

“Through this proposed measure we not only pave the way for greater efficiency and accuracy in property valuation but also extend a helping hand to our delinquent property owners and low-income local government units,” he added.

Once the bill is enacted into law, the Real Property Information System will be created to serve as an electronic database of all property transactions.

Gatchalian says the proposed law will provide the country with “uniform valuation standards for real property assets, promoting transparency and enhancing confidence among investors”. Jaspearl Tan/DMS