Cebu Province's proposed 2027 Schedule of Market Values (SMV) is awaiting final regulatory approval after a comprehensive two-year scientific study that analyzed property sales data from 2020 to 2024. Once implemented, the updated valuations will align property assessments with true market rates. However, a mandatory six percent cap will prevent sudden spikes in final tax dues, ensuring a gradual transition for property owners.
Legal Framework
Provincial Assessor Michelle Languido stated in an interview on Friday, May 22, 2026, that the valuation study adheres to the mandates of the newly enacted Real Property Valuation and Assessment Reform Act (RPVARA), or Republic Act 12001. This law requires a scientific, data-driven approach to property tax valuations, replacing the previous system under Republic Act 7160, the Local Government Code of 1991, which gave local government units full autonomy without penalties for non-compliance. Under RA 12001, the Bureau of Local Government Finance (BLGF) and the Department of Finance (DOF) oversee a uniform valuation system nationwide to ensure transparency and fairer tax rates.
Technical Review
The proposed SMV is currently under technical review by BLGF 7. Languido noted that while RA 7160 lacked sanctions for non-compliance, the new law imposes strict administrative penalties on assessors who fail to implement updated valuations. The provincial assessment office is supplying required documents to address findings from the regional bureau. “It is already reviewed in the BLGF. It was already forwarded to the BLGF,” Languido said. “We collect it and we supply those lacking documents. It is not more on the valuation, but on the lacking documents of the findings.”
Approval and Timeline
The proposal remains subject to final approval by the BLGF central office and the DOF secretary. Once approved, the values will be returned to the Provincial Board for enactment of an ordinance, which will undergo public consultation and publication before taking effect. New tax declarations will be generated in 2027, with full tax implementation scheduled for 2028. “The implementation is still in 2028,” Languido said. “It is a due process of taxation.”
Data and Consultation
The valuation study began in March 2024 and involved collaboration with municipal assessors to collect accurate sales data. The office also utilized data from the Philippine Statistics Authority and consulted real estate appraisers and industry experts. Languido emphasized the complexity of the process: “It is not really that easy. It is not like walking in the park to get the values. It is a study of which it has to do with analysis also. The sales value is always undervalued. So, you have to pick those that are accurate data and evidence.” The office adopted a recommendation from the Bureau of Internal Revenue to classify beach lots separately from standard commercial and residential zones. Public consultations drew strong engagement, with participation peaking during the third round, where discussions shifted to specific tax impacts and potential dues. “So far, the positive reactions from the stakeholders are overwhelming,” Languido said. “First and second, it is more on the evaluation. But then, the third, it is more on the tax impact and the possible tax due.”
