By Aaron Michael C. Sy, A reporter
The Real PROPERTY Valuation and Assessment Reform Act (RPVARA) is expected to increase local government revenue by “significant” rates starting in 2030 when the revised rate adjustment begins, the Department of Finance (DoF) said.
“Come and pass the revisions, that’s the time (we will feel). Especially after the 2028 elections. In 2030 onwards, you will see the impact of RPVARA when it comes to LGU (local government unit) revenue,” Bureau of Local Government Finance (BLGF) Executive Director Consolacion Q. Agcaoili told reporters on Thursday.
The DoF will also assist LGUs throughout the transition process to speed up the release of property analysis analysis and allow them to use the updated analysis tables as quickly as possible.
“There is financial support through the Real Property Tax Administration Fund. The implementation will be supported through local resources and national allocations with additional assistance to low-income LGUs. This is to ensure that no LGU is left behind,” said Finance Secretary Frederick D. Go in his speech at the same event.
He added that municipalities can use RPVARA to make property valuations transparent, consistent, and market-based, which will reduce the cost of doing business and increase investor fraud.fimasculinity.
“We are now fully operational. This is our opportunity to raise the level of local governance throughout the Philippines. This reform strengthens local governance without weakening local autonomy. We urge each of you today to see RPVARA as a strategic investment in the future of your communities. Lead this reform. Implement it urgently,” said Mr. Go.
“With sustained performance at the LGU level, this change will deliver what it was designed to achieve. A rating system that works better for taxpayers is more visible to businesses and supports long-term development.”
Ms. Agcaoili said that property tax in many areas is expected to increase due to the changes.
Ms Agcaoili said the 6% interest rate in place until 2028 will further reduce the impact on property owners.
“The 6% rate is good until 2028. That is, it only applies to the collection of real property taxes for 2028. This one is independent in the sense that there is no need for legislation to implement this. But in 2029, they can start adopting their own rules.”
Market price schedules are also subject to revision every three years under RPVARA, he added.
“I would also like to note that when we do valuations for tax purposes, we use a mass assessment method, which means that it does not value each property. We set the value of the property as a lot or as a group, depending on the development and the same situation,” he said, noting that the valuation will serve as a measure “for other purposes such as land expropriation.”
Proper statistical evaluation is also expected to speed up the progress of government infrastructure “because it will reduce, if not eliminate, measurement (conflicts),” he said.
The DoF said it expects the RPVARA to improve building inspection procedures, set measurement standards, and improve cooperation between national and local governments.
The change gives LGUs continued authority to set tax rates and assessment rates, while assessment rates will be strengthened with the guidance of the BLGF.
