The Department of Finance (DOF) sought to dispel concerns over the newly enacted Real Property Valuation and Assessment Reform Act (RPVARA), saying the measure does not automatically raise property taxes and instead gives local governments wide latitude to cushion any impact on taxpayers.
Finance Secretary Frederick Go said one of the biggest misconceptions surrounding the law is that updating property values will inevitably result in higher tax bills. He stressed that while RPVARA requires property valuations to reflect current market conditions, local government units (LGUs) continue to have the authority to set assessment levels and tax rates.
“LGUs may reduce assessment levels, tax rates, or both, depending on their fiscal position and the needs of their constituents,” said Go, emphasizing that the law preserves local fiscal autonomy rather than limiting it.
The clarification comes as the government rolls out one of the country’s most significant property valuation reforms in decades, replacing outdated and inconsistent assessments with a uniform valuation system based on a single national standard.
The DOF said the reform is designed to improve transparency, promote fairness among taxpayers and provide investors with a more predictable and reliable property valuation framework. Consistent valuations are also expected to reduce disputes and make property transactions more efficient.
Speaking at the National Executive Forum of Governors and City Mayors on RPVARA implementation, Go urged local officials to view the reform not simply as a tax measure but as an economic development tool.
He said a modern and credible property valuation system can make local governments more competitive by improving investor confidence, strengthening local governance and making communities easier places in which to do business.
The finance chief added that updated market values do not automatically translate into higher tax collections because LGUs can calibrate assessment levels and tax rates to balance revenue needs with taxpayer affordability.
The DOF said that the ensure a smooth rollout, the Bureau of Local Government Finance will provide technical assistance, capacity building and implementation support to local governments.
Beyond improving tax administration, the reform is expected to modernize the country’s property market by aligning valuations with economic realities while giving LGUs the flexibility to pursue growth without imposing unnecessary burdens on property owners. (Hencel Barnedo)
