'Significant' revenue gains seen from property valuation reform

The Real Property Valuation and Assessment Reform Act (RPVARA) is expected to raise local government revenue by “significant” amounts starting 2030 once the revised valuations kick in, the Department of Finance (DoF) said, as reported by BusinessWorld.

The reform, signed into law in 2024, aims to standardize property valuation practices across local government units (LGUs) to ensure fairer taxation and generate additional funds for local services. The DoF projects that the updated valuations will correct decades of underassessment, particularly in urban areas where property values have surged but tax bases remained stagnant.

While the full revenue impact will be felt only after 2030, the DoF noted that LGUs can already begin adopting the new valuation standards voluntarily. The law also mandates the creation of a central property database to improve transparency and reduce valuation disputes. Economists have welcomed the measure as a long-overdue fiscal reform that could strengthen local government finances without raising tax rates.