Land in Mountain Province hasn’t been officially revalued since 2012. A new national law is changing that. Here’s what the process involves and why officials say it doesn’t automatically mean higher taxes.

Why is this happening now?

Republic Act 12001 (RPVARA) or Real Property Valuation Reform Act, requires all local governments to adopt a standardised property valuation system. The goal is to give banks, the Bureau of Internal Revenue, and local government units a consistent, up-to-date reference point for land values — replacing figures that are now over a decade old.

How are the new values determined?

Provincial assessors gather data by interviewing landowners, reviewing mortgage and sales records, and noting any changes in how land is being used — for example, agricultural land that has since become residential. Proposed values are then posted publicly for 15 days and two public consultations must be held within 60 days before any figures are certified.

Does a higher market value mean a higher tax bill?

Not automatically. Real property tax is calculated using this formula:

RPT = Land area (m²) × Market value × Assessment level × Tax rate

While the provincial assessor’s office sets the market value, the SP sets the Assessment Level and the tax rate — and both are capped by law. Assessment levels cannot exceed 20% for residential land, 40% for agricultural, and 50% for commercial or industrial. The provincial tax rate is capped at 1%. In the first year of implementation, any increase in real property tax is limited to 6%.

Who ultimately decides how much people pay?

The SP. If the SP passes a new ordinance on Assessment Levels, that will shape how the new market values translate into actual tax bills. If the SP does not act, the existing rates remain in force. Residents are being encouraged to follow that process closely.

Are there any benefits to higher valuations?

Yes. Sagada Municipal IPMR Osenio Lay-os noted that updated market values can work in landowners’ favour when applying for bank loans, since property appraisals are based on the same figures.

Gwendolyn Gay L. Gaongen