Procedures in the Establishment of Zonal Values of Real Properties within the Jurisdiction of Revenue District Offices at the Sub-Technical Committee Level

October 24, 1989 REVENUE MEMORANDUM ORDER NO. 56-89 SUBJECT : Procedures in the Establishment of Zonal Values of Real Properties within the Jurisdiction of Revenue District Offices at the Sub-Technical Committee Level TO : All BIR Officials Concerned I. Objective This Order is issued to guide and facilitate the goal/activities of the Sub-Technical Committee on Real Property Valuation (STCRPV) created pursuant to Department of Finance Order No. 12-89 dated February 27, 1989, relative to the establishment of zonal values of real properties situated within the jurisdiction of Revenue District Offices. II. Composition of the STCRPV Every STCRPV created pursuant to Department Order No. 12-89 shall be composed of the Revenue District Officer as Chairman and assisted by the Provincial/City Municipal Assessor and two (2) competent real property appraisers/real estate practitioners representing the private sector, as members. acd III. Guidelines and Instructions A. General Instructions/Guidelines 1. Acquisition of Maps a) a map identifying the zones, barangays, streets and area for priority development (APD) if any, in the areas to be covered by zonal valuation. b) A map specifying the zone classification on land use by the Housing and Land Use Regulatory Board (HLURB) or City/Municipal/Provincial Planning Officer. 2. Identification of Boundaries and Main Thoroughfares a) The boundaries of the area of jurisdiction of the Revenue District Office (brief description). b) List of main thoroughfares traversing several zones or barangays. c) Identification of commercial areas, industrial areas, residential areas, etc. 3. Preparation of Preliminary Schedule of Recommended Values of Real Properties (Land Only). a) The STCRPV shall prepare the schedule of recommended values of real properties by zones/barangays/streets following the classification of properties and format shown as with 30 days from its initial meeting. b) The recommended values shall be based on - 1) acceptable methods of appraisal of real properties; 2) records of most recent actual sales/transfers/exchanges of properties appearing in documents filed in public offices e.g. the Bureau of Internal Revenue (BIR), Land Registration Commission (LRC), etc. 3) private records of banks, realtors, appraisers, etc., in the locality. 4) records of Provincial/City/Municipal Assessor. 5) other procedures and methods of appraisal. c) The Chairman of the STCRPV shall conduct deliberations with the appraisers and assessors of the locality on the three (3) recommended market values of land. The final recommended value shall be the average of the two (2) highest values. d) The schedule of recommended zonal values shall be signed by the Chairman of the STCRPV and all members. e) The STCRPV shall maintain a record of all the meetings and deliberations made on the preparation of zonal values which shall be forwarded to the Chairman, Technical Committee before its approval. 4. Submission/Review of Schedule of Recommended Zonal Values a) Submission of records and schedule of zonal values - 1) Two copies of the schedule of recommended zonal values of real properties, signed by the Chairman of the STCRPV and members, as well as the maps and listings required under Item III-A (1) and (2) hereof, and minutes/records of meeting shall be submitted to the Assistant Commissioner, National Assessment Office and Chairman, Technical Committee on Real Property Valuation - Attention: Secretariat, Technical Committee on Real Property Valuation (TCRPV), 10th Floor, NOB, BIR, Diliman, Quezon City. b) Review and Evaluation - The TCRPV shall evaluate the submitted schedule of recommended zonal values of real properties. In the absence of any objection/comment, the same shall be finalized and submitted to the Executive Committee for consideration; otherwise, said schedule of values shall be returned to the STCRPV for the necessary correction/adjustment. B. Public Hearing/Notice to the Public 1. Public Hearing a) A public hearing shall be held in (1) Metro Manila Areas, (2) Chartered cities, and (3) provincial capitals with the following in attendance: (a) Chairman and Members of the Executive Committee, (b) Chairman and representative/s of the TCRPV, (c) Chairman and members of STCRPV, and (d) Secretariat of the TCRPV. b) In places other than Metro Manila Areas, chartered cities provincial capitals, a public hearing shall be held with the following in attendance - (a) Revenue Regional Director (b) representative/s and Secretariat of the TCRPV, and (c) Chairman and members of STCRPV. Notice of public hearings shall be given wide publicity in newspapers of general circulations, radio and television. The RDO concerned shall likewise disseminate the information by preparing notices to be posted in the place where the public hearing will be held together with letters of invitation to local officials, associations of realtors, civic organizations, etc. 2. Notice to the Public - In places other than (1) Metro Manila Areas (2) Chartered cities and (3) provincial capitals, where a public hearing is not feasible, notice to the public regarding the recommended zonal value shall instead be made through the Municipal and Barangay Officials, by posting the said zonal values in public places for 30 days and/or weekly publication in local newspapers of general circulation for three (3) consecutive weeks. If no comment/objection is received within the said period, the schedule of values shall be finalized for final approval. C. Implementation of Approved Zonal Values a) As soon as the Executive Committee accepts the zonal values, a Department Order on the implementation of the said zonal values shall be prepared for the approval and signature of the Secretary of Finance. acd b) Upon issuance of the Department Order implementing the approved schedule of zonal values of real properties, the latter shall be published in the Official Gazette. Said values shall take effect fifteen (15) days from the date of circulation of the pertinent Official Gazette. IV. Effectivity This Order shall take effect immediately and all officials concerned are enjoined to comply with the guidelines provided herein. cdt (SGD.) JOSE U. ONG Commissioner of Internal Revenue