Negros Occidental Provincial Administrator Rayfrando Diaz II on Friday, April 10, clarified that the ongoing update in property valuations is in compliance with Republic Act No. 12001, a national law aimed at modernizing, standardizing, and professionalizing real property valuation across the country.
Diaz issued the clarification in response to the United Sugar Producers’ Federation of the Philippines (UNIFED) statement opposing a “proposed increase in real property tax” in Negros Occidental.
UNIFED, in a board resolution, urged provincial government officials to reconsider and defer any such increase until economic conditions stabilize and the financial capacity of their constituents improves.
The resolution was issued after the provincial government of Negros Occidental issued an advisory reminding the public of the Proposed Schedule of Market Values (SMV) for all real properties in compliance with Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act, scheduled to be implemented in 2026.
Diaz said the local assessors were mandated to conduct studies and reassessments based on actual market data, including comparative sales, even before the onset of the current fuel crisis in compliance with Republic Act No. 12001.
These efforts were carried out in coordination with city and municipal assessors to ensure that property values reflect true market conditions.
He emphasized that compliance with the law is not optional.
“Failure to implement the provisions of the law may be considered neglect of duty on the part of government officials,” Diaz said, adding that authorities have no choice but to follow the mandate.
However, Diaz assured Negrenses that the updated valuation does not automatically translate to an immediate increase in real property taxes.
He explained that the law primarily seeks to establish a unified and standardized valuation system across agencies such as the Bureau of Internal Revenue, assessors, and treasurers’ offices, ensuring consistency in tax computations and fees related to land transactions.
The reform also includes the establishment of a centralized and digitalized real property database, replacing outdated systems.
This is expected to improve revenue collection, eliminate discrepancies, enable faster processing, and minimize errors.
In addition, the law provides amnesty on interest, penalties, and surcharges for delinquent real property taxes.
Diaz further noted that any adjustment in assessment levels will depend on local government units (LGUs), with increases capped at a maximum of six percent, as required by the Bureau of Local Government Finance to ensure proper organization of real estate market data.
He also underscored that both Governor Eugenio Jose Lacson and local chief executives recognize the current economic challenges and are not inclined to impose tax increases at this time.
“All valuation updates will undergo review at the regional and national levels of the BLGF to ensure uniformity and to protect landowners from discrepancies,” Diaz added.
While LGUs retain authority over implementation timelines, Diaz clarified that any possible deferment may be imposed through the Sangguniang Panlalawigan of Negros Occidental, which has jurisdiction over such provincial legislative actions, particularly in consideration of the current economic situation.
He reiterated that immediate implementation of increased taxes is unlikely, as the province continues to feel the effects of rising fuel costs and economic pressures.
Diaz appealed for public understanding, stressing that the provincial government is simply fulfilling its legal obligation while ensuring that safeguards are in place to protect taxpayers.*
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