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Proposed SFMV Updating

and
General Revision of Real
Property Assessments

City Assessor’s Office, Quezon City


Sec. 219. General Revision of Assessment
and Property Classification
“The Provincial, city or municipal assessor
shall undertake a general revision of real
property assessment within two (2) years
after the effectivity of this Code and every
three (3) years thereafter.”

ADMINISTRATIVE ISSUANCES
SECTIONS 200, 201 & 219
LOCAL GOVERNMENT CODE OF 1991
Joint Memorandum Circular (JMC)
on Revision of SMVs
 JMC 2010-01 enjoins LGUs to implement
Section 219 (General Revision of
Assessment and Property Classification) of
the R.A. 7160 regarding the revision of
property assessments and classifications.

 It also prescribes the use of the Philippine


Valuation Standards (DOF Dept. Order No.
37-09) and Mass Appraisal Guidebook (DOF
Dept. Order No. 2010-10) in conducting the
general revision of property assessments
and classifications.
Commission of Audit Findings
What is a Schedule of Fair Market
Values (SFMV)?
 It is an approved schedule of unit
base market values for different
classes of real property (except
machinery)
prepared by local assessors as basis
for computing Real Property Tax
assessments (RPT) which provinces
and cities are authorized to impose
under the Local Government Code.
Why revise the SMV?

 Mandated by law (LGC Book II, Sec. 219)


 Seeks to reflect true market levels
 Updates the classification of real properties
 Discovers new properties or rediscover ‘lost’
properties from the assessment roll
 Corrects erroneous entries & duplications in
the real property database
 Rationalizes the real property tax base
 Our own SMV is 20 years outdated
(SP Ord.357 S-1995 approved 12/19/1995)
Schedule of Fair Market Values
per SP Ordinance 357 S-1995
Sub-Classification Present BUC
Ra-1 Residential - 1 3,000.00
Ra-2 Residential - 2 2,500.00
Ra-3 Residential - 3 2,000.00
Ra-4 Residential - 4 1,500.00
Ra-5 Residential - 5 1,200.00
Ra-6 Residential - 6 500.00
Ca-1 Commercial - 1 6,000.00
Ca-2 Commercial - 2 5,500.00
Ca-3 Commercial - 3 5,000.00
Ca-4 Commercial - 4 4,500.00
Ca-5 Commercial - 5 4,000.00
Ca-6 Commercial - 6 2,500.00
Ia-1 Industrial - 1 3,500.00
Ia-2 Industrial - 2 3,000.00
Ia-3 Industrial - 3 2,500.00
Ia-4 Industrial - 4 2,000.00
Ia-5 Industrial - 5 1,500.00
Ia-6 Industrial - 6 1,000.00
COMPARING VALUES
(nearby Cities)
SITUATIONER
SITUATIONER
SITUATIONER
Present
Sub-Classification Sample Location
BUC

Ra-2 Residential - 2 2,500.00 Philam, Damar, West Triangle


Del Monte, Masambong,Paltok,
Ra-3 Residential - 3 2,000.00
Sta Cruz, Matalahib, etc.
Ra-4 Residential - 4 1,500.00 Alicia, Vasra
Portion of Pagibig sa Nayon,
Ra-5 Residential - 5 1,200.00
Balingasa, other inner lots
Trinoma, SM North EDSA, Along
Ca-3 Commercial - 3 5,000.00
EDSA & Quezon Ave.
Ca-4 Commercial - 4 4,500.00 Along Banawe, Roosevelt
Ca-5 Commercial - 5 4,000.00 NS Amoranto, Retiro, Sgt Rivera
SITUATIONER
SITUATIONER
Present
Sub-Classification Sample Location
BUC
Ra-2 Residential - 2 2,500.00 Tivoli Royale, Don Antonio Royale
Ra-3 Residential - 3 2,000.00 BF Homes Subd.
Commonwealth Hts, Don
Ra-4 Residential - 4 1,500.00 Enriquez, Don Antonio Hts,
Northview I & II
Sugartown, Violago Homes, Dona
Ra-5 Residential - 5 1,200.00 Juana, Parkwood, Sunnside, Villa
Beatriz
NGC Housing Projects, Villa
Ra-6 Residential - 6 500.00
Maloles,
Ca-4 Commercial - 4 4,500.00 Along Commonwealth
Holy Spirit Drive from
Ca-5 Commercial - 5 4,000.00 Commonwealth to BF Homes,
Capitol View Park, etc
SITUATIONER
SITUATIONER
Sub-Classification Present BUC Sample Location
Ayala Hts, Ayala Hills, Corinthian, Green
Ra-1 Residential - 1 3,000.00
Meadows, Greenwich
White Plains, Blue Ridge A & B,
Ra-2 Residential - 2 2,500.00
Xavierville I & II, etc
Tivoli Green, Vista Real, North Susana,
Ra-3 Residential - 3 2,000.00
New Intramuros, all lots w/in Cubao, etc
Claro, Amihan, Duyan-Duyan,
Ra-4 Residential - 4 1,500.00
Bayanihan, Quirino 2-A-C, etc.
Ra-5 Residential - 5 1,200.00 NHA Project (Pansol), Bents Ent. Subd.
Ca-1 Commercial - 1 6,000.00 Araneta Center
Katipunan Ave., C-5 Rd (E. Rodriguez
Ca-2 Commercial - 2 5,500.00
Jr)
Ca-3 Commercial - 3 5,000.00 Mercury Ave., EDSA (U Norte)
Ca-4 Commercial - 4 4,500.00 Aurora Blvd, Kamias Rd., 20th Ave
Ca-5 Commercial - 5 4,000.00 Along Anonas, 15th Ave.
Ca-6 Commercial - 6 2,500.00 Boni. Ave. (Santolan)
Portion of E Rodriguez Jr
Ia-2 Industrial - 2 3,000.00
(Bagumbayan)
Ia-3 Industrial - 3 2,500.00 Calle Industria
SITUATIONER
SITUATIONER
Present
Sub-Classification Sample Location
BUC
Ra-2 Residential - 2 2,500.00 Laging Handa, Sacred Heart,
Paligsahan, Damayan lagi, Scout
areas, Kalusugan, Mariana
Ra-3 Residential - 3 2,000.00 Tatalon, Central, Pinyahan, etc.
Ra-4 Residential - 4 1,500.00 Talayan
Ca-1 Commercial - 1 6,000.00 Timog Ave., Tomas Morato
Ca-3 Commercial - 3 5,000.00 Quezon Ave., EDSA, West Ave.
Kamuning Rd, Banawe, Aurora, E
Ca-4 Commercial - 4 4,500.00
Rodriguez, Roces
Ca-5 Commercial - 5 4,000.00 Kalayaan Ave., V Luna
Mother Ignacia, Panay Ave.,
Ca-6 Commercial - 6 2,500.00
Maguinhawa
SITUATIONER
SITUATIONER
Present
Sub-Classification Sample Location
BUC
Fairview East & West, Lagro
Subd., North Olympus,
Ra-4 Residential - 4 1,500.00
Greenfields, N Fairview, SSS
Housing, etc
Maligaya Park, San Gabriel Estate,
Ra-5 Residential - 5 1,200.00
Capri Hts., Chudian, etc

Ra-6 Residential - 6 500.00 Aguardiente

Ca-4 Commercial - 4 4,500.00 Along Commonwealth

Quirino Hiway, Gen Luis fr Nova


Ca-5 Commercial - 5 4,000.00
Proper to Nagkaisang Nayon
Regalado Ave., Dumalay, Susano
Ca-6 Commercial - 6 2,500.00
Rd.
SITUATIONER
SITUATIONER
Sub-Classification Present BUC Sample Location

Tierra Pura, Miranilla, Ferndale, St


Ra-2 Residential - 2 2,500.00
Charbelle Executive Vill.
Congressional Vill., Grace Village,
Ra-3 Residential - 3 2,000.00
Bellevue, Meiling
QCVille, FEU Housing, Delta Vill., Gem
Subd., Hilda Village, Carmel I & II, Gloria
Ra-5 Residential - 5 1,200.00
1-6, Dona Faustina, GSIS Vill., Metro Hts,
etc
UP Site I & II, Sunny Villas, Saman ng
Ra-6 Residential - 6 500.00
mga NGOs
Ca-3 Commercial - 3 5,000.00 EDSA, Along Visayas Ave.
Along Visayas Ave., Commonwealth,
Ca-4 Commercial - 4 4,500.00
Congressional, Mindanao Ave.,
Ca-5 Commercial - 5 4,000.00 Quirino Hiway
T Sora Ave., Howmart, Kaingin Rd.,
Ca-6 Commercial - 6 2,500.00
Oliveros, Samson Rd
REAL ESTATE APPRAISAL
(ASSESSOR)
Real estate appraisal or property valuation is the
process of developing an estimate of the value of a
real property.

• It includes all of the research, data, reasoning,


analysis and conclusions necessary to arrive at a
“fair and equitable” value estimate, for taxation
purposes.
• There are requirements and detailed process that we
have to follow as prescribed by existing laws, MRPAAO,
and guided by the Generally Accepted Valuation
Principles (GAVP) and the Philippine Valuation
Standards (PVS).

There are no "guesstimates" when it comes to appraisal


Compliance as to the requirement
Section 212 of R.A. No. 7160,
Existing and Proposed Market Values
and the Resulting Changes
PRESENT
PROPOSED PERCENTAGE
BASIC UNIT
BASIC UNIT INCREASE IN
CODE DESCRPITION VALUE
VALUE MARKET
(Php/ sq.m.)
(Php/sq.m.) VALUES

Ca-1 Commercial - 1 6,000.00 40,000.00 566.67%


Ca-2 Commercial - 2 5,500.00 35,000.00 536.36%
Ca-3 Commercial - 3 5,000.00 30,000.00 500.00%
Ca-4 Commercial - 4 4,500.00 25,000.00 455.56%
Ca-5 Commercial - 5 4,000.00 20,000.00 400.00%
Ca-6 Commercial - 6 2,500.00 15,000.00 500.00%
Existing and Proposed Market Values
and the Resulting Changes
PRESENT
PROPOSED PERCENTAGE
BASIC UNIT
BASIC UNIT INCREASE IN
CODE DESCRPITION VALUE
VALUE MARKET
(Php/sq.m.)
(Php/sq.m.) VALUES

Ia-1 Industrial - 1 3,500.00 20,000.00 471.43%


Ia-2 Industrial - 2 3,000.00 18,000.00 500.00%
Ia-3 Industrial - 3 2,500.00 15,000.00 500.00%
Ia-4 Industrial - 4 2,000.00 For reclassification
Ia-5 Industrial - 5 1,500.00 For reclassification
Ia-6 Industrial - 6 1,000.00 For reclassification
Comparative figures
Comparative figures
Comparative figures
Comparative figures
Comparative figures
Comparative figures_Dist 1
Comparative figures_Dist 2
Comparative figures_Dist 3
Comparative figures_Dist 4
Comparative figures_Dist 5
Comparative figures_Dist 5
Comparative figures_Dist 5
Comparative figures_Dist 6
INVENTORY OF PARCELS BY SUB-CLASS
& CURRENT/EXISTING ASSESSMENT
TOTAL MARKET/ASSESSED VALUES &
TOTAL TAX DUE UNDER CURRENT AND
PROPOSED SMVs
Current SMV Proposed SMV
Total Market Value (Php) 146,894,200,426 856,959,437,000
Total Assessed Value (Php) 38,166,142,205 224,159,595,030
Total Estimated Tax Due (Php) 1,051,505,032.85 6,186,547,345.50

At 18% & 45% Assessment Level for Residential and


Commercial, respectively (without introducing any
adjustments) the new SMV will have a tax due of
Php 6,186,547,345.50, or a gross incremental
revenue of Php 5,135,042,312.65.
POSSIBLE POLICY OPTIONS
For large increases in values, the following
options may be considered to mitigate their
impact on real property taxes:
Option 1: Adjust the assessment level
Option 2: Adjust the tax rate
Option 3: Phased implementation of the
increase in the tax, e.g.:
 1styear: 50% of the increase
 2ndyear: 60% of the increase
 3rdyear: 100% of the increase
Comparative figures
Comparative figures
Sample Computations
Sample Computations
Sample Computations
Sample Computations
Comparative figures
Comparative figures
Comparative figures
BASE UNIT CONSTRUCTION COST (BUCC)
FOR IMPROVEMENTS
The proposed increase in Base Unit
Construction Cost are likewise well founded,
and this time, a single valuation for each
building type and kind was adopted,
departing from the minimum-maximum bracket
valuation.

• Buildings are classified according to its


use and construction characteristics; and
• Unit value are established for its class and
sub-class, together with the set of
addition and reduction adjustment factors.
BUILDING TYPE AND CLASSIFICATION
Type I Buildings of wood construction. Structural elements consisting of any of the
materials permitted, nipa house, and similar structures.
Type II Buildings of wood construction with protective fire-resistant materials and
one-hour fire resistive throughout. Permanent non-bearing partitions may use
fire-retardant treated wood within the framing assembly.
Type III Buildings of masonry and wood construction. Structural elements may be any
of the materials permitted by the National Building Code; Provided that the
building shall be one-hour fire resistive throughout. Exterior wall shall be of
incombustible fire-resistive construction.
Type IV Buildings of steel, iron, concrete, or masonry construction. Walls, ceilings,
and permanent partitions shall be of incombustible fire resistive construction.
Permanent non-bearing partitions of one-hour fire resistive construction may
use fire retardant treated wood within the framing assembly.
Type V Buildings that are fire-resistive. The structural elements are of steel, iron,
concrete, or masonry construction. Walls, ceilings, and permanent partitions
are of incombustible fire-resistive construction.

Though we still have to refer and adhere to the sub-classifications and various
types mentioned in the Manual on Property Appraisal and Assessment, only
with slight modification considering current building designs.
BASIC UNIT CONSTRUCTION COST
OF BUILDING & OTHER STRUCTURES
BASIC UNIT CONSTRUCTION COST
OF BUILDING & OTHER STRUCTURES
BASIC UNIT CONSTRUCTION COST
OF BUILDING & OTHER STRUCTURES
COMPARATIVE FIGURES
General Revision of Property
Assessments

 is the process of updating


all real property records of
the LGU for real property
taxation purposes using
the updated SMV.
THANK YOU....

We are now ready for


your questions