The Cebu Provincial Assessment Office (CPAO) has completed a two-year scientific study analyzing sales data in the region from 2020 to 2024 to determine the true market value of properties across the province.
Strict Compliance with New National Law
Provincial Assessor Liezl Languido stated that the rigorous valuation process aligns with the mandates of the newly implemented Real Property Valuation and Assessment Reform Act (RPVARA). This national law, managed by the Bureau of Local Government Finance (BLGF) and the Department of Finance (DOF), enforces a uniform property valuation system for all local governments nationwide.
Under the new law, local government assessors face strict administrative penalties if they fail to implement updated property valuations. Languido noted that while the previous Republic Act 7160 had no penalties for non-compliance, the new mandate ensures that provincial tax declarations reflect true and fair market values.
Study Methodology and Stakeholder Participation
The study began in March 2024, with the office collaborating with municipal assessors to obtain accurate sales data and evidence. They also utilized data from the Philippine Statistics Authority (PSA) and consulted with real estate appraisers and industry experts. For the updated schedule, the office segregated specific property types, such as separating beach lots from regular commercial and residential zones.
Stakeholder participation in public consultations for the proposed 2027 Schedule of Market Values (SMV) was highly successful. Languido noted that attendance increased during the third round of consultations. This time, discussions focused not on basic grades but on the impact of taxes and possible payments by taxpayers.
Taxpayer Protection and Transition Period
Taxpayers will still receive protection during the transition period, as a mandatory six percent limit will prevent final tax changes from exceeding that threshold. The Sanggunian Panlalawigan retains the authority to set the final assessment level and tax rate within this legal limit.
The proposed values have been submitted to the BLGF for technical review. Currently, the provincial assessment office is sending missing documents to address the agency's initial findings.
Implementation Timeline and Tax Amnesty
Once the values are signed and approved by the BLGF and the Secretary of Finance, the province will publish the schedule. New tax declarations will be issued in 2027, and full tax implementation will begin in 2028.
Property owners have until July 2026 to avail of the tax amnesty offered under the RPVARA framework.
