Appraisal/
Assessment
in the Gov’t
BS REAL ESTATE MANAGEMENT
Sector
MODULE i
PROFESSOR:
EDGAR ALLAN J. AGATON
REB, REA, MBA
PART 1
Appraisal/
Assessment Course Description:
This course is about examination and evaluation of the exterior and interior components of
in the buildings, structures and residential real property, which includes plumbing, electrical, Heating,
Governmen Ventilation, Air Conditioning (HVAC), structural, foundation, roof, masonry, or any other real
t Sector property components.
Course Learning Outcomes:
1. Understand the different components, equipment and other related real properties that are
the subject of assessment in the government sector.
2. Evaluate the principles, concepts and techniques that applies to the Appraisal/Assessment
practice.
3. Interpret and analyze the different techniques, data, methods and process used in the
Assessment practice.
4. Demonstrate critical thinking when exposed to market and economic situations that affects
the assessment of real estate properties and equipment.
5. Conduct case analysis to apply theoretical concepts that will widen their knowledge and
experiences based on real life task and activities.
Appraisal/
Assessment The Assessor’s Office
It is a local government unit that estimates the value of real properties within a Province, City
in the or Municipality boundaries.
Governmen
t Sector Basic Functions:
Land Administration and Project Management
Application:
Valuation of
1. Real Properties
2. Plant
3. Machinery and Equipment
4. Special Purpose Properties
Assistant
Provincial, Other Functions
City and
Municipal The assistant assessor shall assist in performing the foregoing functions and perform such other
Assessors duties as may be assigned to him. Assignments or delegations of functions to the Assistant
Assessors must be in writing.
The Local The Present Role of the Local Assessor
Assessors
Office What is an Assessor?
It refers to an official in the local government unit, who performs appraisal and assessment of
real properties, including plants, equipment, and machineries, essentially for taxation
purposes.
The Role of the Local Assessor
The Local Assessor shall take charge of the discovery, classification, appraisal, assessment and
valuation of all real properties within his territorial jurisdiction which shall be used as the basis
for taxation. His duties include the preparation, installation and maintenance of a system of tax
mapping and records management and the preparation of a Schedule of Fair Market Values of
the different classes of real property within his territory
Provincial, Appointment of Provincial, City and Municipal Assessors
City and Manner of Appointment – The Local Assessor shall be appointed by the Local Chief
Municipal Executive concerned, subject to the Civil Service law, rules and regulations. All incumbent
Assessor Assessors holding permanent appointment (appointed by the President or the Secretary of
Finance) shall continue in Office without need of further appointment. The local chief
executive may exercise his power to appoint the Assessor only when permanent vacancy
occurs.
Nature of Position – The appointment of an assessor shall be mandatory for all provincial, city
and municipal governments.
Qualification Requirements – No person shall be appointed assessor unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of good moral character, a
holder of a college degree preferably in civil or mechanical engineering, law, commerce or any
other related course from a recognized college or university and a first grade civil service
eligible or its equivalent. He must have acquired experience in real property assessment work
or in any related field for at least five (5) years in the case of the city or provincial assessor,
and three (3) years
in the case of the municipal assessor.
Assistant Appointment of Assistant Assessor
Assessor
Manner of Appointment – The Assistant Assessor may be appointed by the Local Chief
Executive concerned, subject to the Civil Service law, rules and regulations. All incumbent
Assistant Assessors holding permanent appointments shall continue in office without need of
further appointment. The local chief executive shall exercise his power to appoint the assistant
assessor only when a vacancy occurs.
Nature of Position – The appointment of an assistant assessor shall be optional for provincial,
city and municipal governments.
Qualification Requirements – No person shall be appointed assistant assessor unless he is a
citizen of the Philippines, a resident of the local government unit concerned, of good moral
character, a holder of a college degree preferably in civil or mechanical engineering, law,
commerce, or any related course from a recognized college or university, and a first grade civil
service eligible or its equivalent. He must have acquired experience in real property assessment
or in any related field for at least three (3) years in the case of the assistant provincial or city
assessor; and one (1) year in the case of the assistant municipal assessor.
Local Duties, Functions and Responsibilities of Local Assessor
Assessors
Assessors are encouraged to study and adhere to the Philippine Valuation Standards in
establishing basis for appraisal and assessment of real estate properties. The standards have
been prepared to assist government assessors and appraisers in the valuation of properties for
taxation purposes. Assessors and appraisers are responsible for ensuring that property appraisal
particularly for a tax purpose is accurate so that the tax burden will be distributed equitably.
Major Functions
a. Establish a systematic method of assessment in the manner prescribed in this manual and in
accordance with the rules and regulations issued by the Secretary of Finance;
b. Install and maintain a real property identification system in the manner prescribed in this
manual and in conformity with the standards prescribed by the Secretary of Finance;
c. Prepare, install and maintain a system of tax mapping showing graphically all properties
subject to assessment in the province, city, or municipality and gather all necessary data
concerning the same;
d. Undertake a general revision of real property assessments every three (3) years;
Local Major Functions
Assessors
e. Make frequent physical surveys to check and determine whether all real properties within the
locality are properly listed in the assessment rolls;
f. Appraise all real properties in accordance with the approved or duly enacted Schedule of Fair
Market Values pursuant to R. A. No. 7160, and conduct frequent ocular inspections to
determine if all properties are properly assessed;
g. Prepare Field Appraisal and Assessment Sheets (FAAS‟s) and issue Tax Declarations for
all newly discovered properties and transactions involving transfers of ownership, subdivisions
of land into two or more parcels, and/or consolidation of two or more parcels into a single
ownership, as well as other transactions involving assessment of real property;
h. Enforce uniformly the exemptions from real property tax as prescribed in this Manual
i. Apply the appropriate assessment levels prescribed by the Sanggunian concerned;
j. Keep a record of all transfers, leases and mortgages of real property, rentals, insurance, cost
of construction of buildings and other improvements on land, land income and other source of
data needed in the preparation of schedule of fair market values as well as for other assessment
purposes;
Local
Major Functions
Assessor
k. Cancel assessment in case of duplication of assessment on one property. However, if any
assessee or his representative shall object to the cancellation of the assessment made in his
name, such assessment shall not be cancelled but the fact shall be noted on the field appraisal
assessment sheet, tax declaration, assessment rolls and other property books of records.
Preference, however, shall be given to the assessment of the person who has the best title to the
property or, in default thereof, of the person who is in actual possession of the property;
l. Eliminate from the assessment roll of taxable properties such properties which have been
destroyed or have suffered permanent loss of value by reason of storm, flood, fire or other
calamity; or being exempt properties that have been improperly included in the same;
m. Decrease the assessment where the property previously assessed has suffered a substantial
loss of value by reason of physical and economic obsolescence; and
n. Increase the assessment where improvements and repairs have been made upon the property
subsequent to the last assessment.
Local
Other Functions
Assessor
a. Declare and assess the property in the name of the defaulting owner, if known, or against an
unknown owner, as the case may be, in accordance with the provisions of Title II, Book II
of the Local Government Code, when any person, natural or juridical, by whom real
property is required to be declared, refuses or fails for any reason to make such declaration
within the time prescribed;
b. Prepare and maintain assessment rolls for taxable and for exempt real properties, located
within the territorial jurisdiction of the local government unit concerned, except in cases
where the assessor’s records are computerized and the same are directly and operationally
connected to the Provincial, City or Municipal Treasurer in the form of local area network
(LAN);
c. Furnish the treasurer of the local government unit, on or before the thirty-first (31st) day
of December of each year, with a copy of the assessment roll for taxable and for exempt
properties which were newly assessed or reassessed and the value of such properties, except
in cases where the assessor’ records are computerized and the same are directly and
operationally connected to the Provincial or City or Municipal Treasurer in the form of
LAN;
Local
Other Functions
Assessor
d. For the purpose of obtaining information on which to base the market value of any real
property, the assessor of the province, city or municipality or his deputy may summon the
owners of the properties affected or persons having legal interest therein and their witnesses;
administer oaths, and take depositions concerning the property, its ownership, amount, nature,
and value;
e. Recommend to the Sanggunian concerned amendments to correct errors and inequalities of
valuation in the Schedule of Fair Market Values;
f. The provincial, city, or municipal assessor shall, within thirty (30) days, give written notice of
such new or revised assessment to the person in whose name the property is declared, when the
real property is assessed for the first time or when an existing assessment is increased or
decreased;
g. In case the provincial or city assessor, or the municipal assessor within the Metro Manila
Area concurs with the decision of the Local Board of Assessment Appeals, it shall be his duty
to notify the owner of the property or the person having legal interest therein of such fact using
the form prescribed for the purpose. The owner of the property or the person having legal
interest therein or the assessor who is not satisfied with the decision of the Board, may, within
thirty (30) days after receipt of the decision of the said Board, appeal to the Central Board of
Assessment Appeals;
Local
Other Functions
Assessor
h. The provincial, city or municipal assessor shall make and keep an updated record of all idle
lands located within his jurisdiction. For purposes of collecting the tax on idle
land ( not to exceed 5%), the provincial, city or municipal assessor shall furnish a copy thereof
to the provincial, city or municipal treasurer who shall notify, on the basis of such record, the
owner of the property or person having legal interest therein of the imposition of the additional
tax;
i. The assessor concerned, upon the effectivity of the ordinance imposing special levy
pursuant to Section 241 of R. A. No. 7160, shall proceed to determine the annual amount of
special levy assessed against each parcel of land within the area specifically benefited by
the public works or improvements to be undertaken and shall send to each landowner a
written notice thereof by mail, personal service or publication in appropriate cases;
j. The Provincial or City Assessor sits as Chairperson of the Appraisal Committee except in
Cities and Municipalities within the Metro Manila Area where the Assessor sits as member
pursuant to E.O. 329, as amended;
k. Whenever appointed by any Court resolving cases on property valuation, the Local Assessor
shall act as one of the Commissioners;
Local
Other Functions
Assessor
l. Annotate in the FAAS and in the tax declaration any encumbrance or adverse claim over the
subject property;
m. Attend personally or through a duly authorized representative all sessions of the Local and
Central Boards of Assessment Appeals and present any and all information or record in his
possession as may be required by the Board in determining the correct assessment of the real
property under appeals;
n. Issue upon request of the property owner or his authorized representative certificates
pertaining to, or certified copies of, the assessment records of real property and other records
relative to its assessment, after the presentation of the official receipt evidencing full payment
of realty tax for the current year and/or upon payment of a service charge or fee fixed by the
Local Sanggunian concerned; and
o. Exercise and perform such other powers, duties and functions as may be
prescribed by law and ordinance.
Supervision
Over Local Technical Supervision of the Department of Finance (DOF)
Assessors
The Department of Finance through the Bureau of Local Government Finance (BLGF) shall be
responsible for the supervision of the revenue operations of local government units, with the
end in view of making them less dependent on funding from the national government.
BLGF Supervision shall include:
1. Exercise technical supervision and coordination over the treasury and assessment
operations of local governments.
2. Provide consultative services and technical assistance to the local governments and the
general public on real property assessments, local taxation and other related matters.
3. Exercise line supervision over its Regional Offices and the Local Treasury and Assessment
Services nationwide.
Supervision
Over Local Technical Supervision of The Department of Finance (DOF)
Assessors
“Technical Supervision includes the promulgation of the necessary rules and regulations for the
following:
1. Classification
2. Appraisal and assessment of real property
3. Taxmapping
4. General revision of real property assessments and
5. Records management pursuant to the provisions of the Local Government Code. It includes
the submission of the prescribed reports to the DOF thru the BLGF for purposes of
monitoring compliance with existing laws, rules and regulations on the foregoing subject
matter.
Componen
Technical Supervision
t City and
Municpal
Assessors “Technical Supervision” includes the authority of the Provincial Assessor to review actions
taken by a subordinate official to determine compliance with existing pertinent rules and
regulations regarding the conduct of the day-to-day operations of officials or offices concerned.
The Provincial Assessor, therefore, shall require the component City and Municipal Assessors
concerned to submit to him assessment reports and other assessment records or forms for
review and approval.
Organization
al Chart of
Provincial
Assessor
Organization
al Chart of
Provincial
Assessor
Organization
al Chart of
Provincial
Assessor
Code of
To promote and preserve the public trust inherent in the assessment service, assessor and all
Ethics and assessment personnel must observe the highest standard of professional conduct ethics.
Profession Assessors and their staff should at all times maintain high standard of honesty and integrity and
al Conduct conduct their activities in a manner not detrimental to the government, the public and to their
profession.
1. It is unethical for assessors and all assessment personnel to conduct their professional duties
in a manner that could reasonably preclude the appearance of impropriety;
2. It is unethical for assessors and their staff knowingly to fail in the performance of their
duties according to applicable laws or in the uniform application of such laws and
regulations;
3. It is unethical to engage in misconduct of any kind that leads to a conviction for a crime
involving fraud, false statement or moral turpitude.
4. It is unethical to perform any appraisal or assessment not in compliance with assessment
laws and regulations;
5. Assessors shall ensure that any of their staff, persons or subordinates adhere to this Code of
Conduct
Difference Appraisal vs Assessment
between
Appraisal and
Assessment
Appraisal – is the act or process of determining the value of a property as of a specific date for
a specific purpose. It may also be defined as the act of estimating the value of a property. It is
an estimate or opinion of value, usually market value or value as defined by the appraiser. It is
made as of a specific date and is a conclusion which results from a logical and orderly analysis
of facts.
Assessment – is the act or process of determining the value of a property or proportion thereof
subject to tax, including the discovery, listing, classification and appraisal of properties
(MRPAO)
END OF
PRESENTATION
