Bureau of Local Government Finance Opinion

December 9, 2004 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Provincial Assessor of Albay Legazpi City S i r : This pertains to your letter of September 7, 2004, requesting the deferment of the preparation of the 2004 Schedule of Market Values with regard to the conduct of the General Revision of Real Property Assessments as mandated under Section 219 of the Local Government Code of 1991 (R.A. No. 7160). As proposed by that office, the application and effectivity of the approved Schedule of Market Values (SMV) for CY 2002 for that province shall be extended until the year 2008 due to inadequacy of resources, insufficiency of time and the adverse economic situation being experienced by all sectors of society. Apparently, instead of updating the real property values that office shall focus its concerns on the other two (2) equally important purposes of conducting general revisions as provided under Section 1(1) of Local Assessment Regulations No. 1-92 dated October 6, 1992 of the Department of Finance (DOF) quoted hereunder: "Section 1. General Revision of Assessment and Property Classification." "xxx xxx xxx "1. Purpose of general revision of real property A general revision of property values serves two important purposes in addition to its primary purpose of equalizing and updating valuation. First, it brings to light again existing properties rediscovers many properties, which have been "lost" from the tax roll. Second, it enables the assessor to purge from the rolls the double assessments of properties which have been destroyed and that have accumulated through the years. It has the same purpose as the periodic physical inventory conducted by a business establishment." In pursuance of the abovequoted provision, the Provincial Assessor, in coordination with the Municipal Assessor concerned submitted that they shall conduct a comprehensive field evaluation, ocular inspection/verification and assessment records validation of the different real properties in accordance with Section 217 of Republic Act No. 7160. In view thereof and inasmuch as the above representations are well within the other purposes in the conduct of the general revision of real property assessments, enumerated in the Local Assessment Regulations No. 1-92, the herein request for deferment of the general revision with respect to updating the real property valuation aspect, is hereby granted, provided, that the subject deferment shall be covered by an enabling ordinance specifying therein, among others, that the three-year moratorium on the increase in valuations of the different kinds and classifications of real properties based on the approved CY 2002 SMV, shall apply to all real properties within the province of Albay; and provided further that the subsequent general revision of real property valuation of all real properties thereat shall commence in 2009; or after the requested 3-year moratorium period. SDTIaE Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director