1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Mass Appraisal Guidebook: Schedule of Market Values Reform Program for LGUs

Engr. Ramon R. AlbeusAssessor, Naga City

1st NATIONAL CONGRESS on Property Valuation and Taxation

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

One of the reforms instituted by the Department of Finance through the BLGF & the NTRC, with the

technical assistance from the World Bank and the AusAID, is the development of

SMV Reform Program for the LGUs.

Background

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

as a tool is used for appraising multiple propertiesin a given date by a systematic and uniformapplication of appraisal methods and techniques,employing common data that allow for statisticalreview and analysis of results.

Mass Appraisal

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Features

A Supplement to the Manual on Real Property Appraisal and Assessment Operations issued by DOF under LAR NO. 01-04;

Complements the Philippine Valuation Standards (PVS)

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Features

Focuses on valuation principles, methodology, and practices absorbed and taken from the existing

assessors/appraisers in the valuation of property

Reflects the result of the processes undertaken within the partner-LGUs of NAGA, ILOILO, and MANDAUE.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Objectives

Equipt Local Assessors, appraisers and the PVO staff of the content of the Guidebook;

Appreciate the use of the Generally Accepted Principles of Valuation and the International Valuation Standards.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Status

Final Draft and being readied for printing;

Training of Trainers already conductedCore Trainors (May 31 June 4)National Trainors (June 7 12)

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 1: General Valuation Concepts & Principles

Discusses the various concepts and principles onproperty valuation which are generally accepted andrecognized by appraisers, valuers and assessorsthroughout the world;

Fundamental principles of valuation are incorporatedin this chapter for uniformity and consistency in thepractice of valuation.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 2: Valuation Approaches, Techniques & Application

Discusses various methods of valuation & concepts as applied in a mass appraisal setting;

Three valuation approaches recognized in the valuation process (Sales Comparison or Market Data, Income Capitalization, and Cost Approach);

Different Applications of techniques were introduce to better appreciation of the three approaches.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 3: Mass Appraisal: SMV Development Process

Discusses the principles of mass appraisal as applied in the development of the SMV. This chapter set out the four stages of SMV Development, namely;

Preparatory StageData Collection StageData Analysis Stage, andValuation Testing Stage

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 4: Preparation of the SMV

The SMV provides the matrix and other parameters used in the appraisal and assessment of real properties for taxation purposes. It is from this schedule that land and building component of the total property value is determined and transferred to the FAAS.

Discusses principles of lands, buildings and

developed.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 5: Plant, Machinery and Equipment

Discusses the coverage of machinery for taxationpurposes, it also provide appropriate methodologyand techniques for its valuation.

Includes Formulas for establishing Replacement Cost(New) and Reproduction Cost, Indexing Technique,Re-pricing Technique, and Depreciation Allowance.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 6: Special Purpose Properties

Property that is rarely, if ever, sold in the market except by way of sale of the business or entity of which it is part, due to uniqueness arising from its specialized nature and design, its configuration, size, location, or otherwise.

Includes discussion on the different types of Specialized Property; Suggested Valuation Approaches and Applications.

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

CHAPTER 7: Valuation Testing

It discusses statistical review and analysis of resultsto determine the level of accuracy and degree ofuniformity achieved in the appraisal process.

Accuracy and Reliability of Values

Testing Reliability of Values

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

The Guidebook: Contents

Addendum:

Glossary of Terms More than 100 words and terms used invaluation were included;

Appendices:Sample SMV OrdinanceSample Data Collection Sheets Res/Com.- .Field Verification and InterviewDiscussion on the VDISOthers

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

July 2010 Printing of the Mass Appraisal Guide Book

August2010 to March2011 - Roll-Out of the GuideBook to selected LGUs based on given criteria

April 2011 and beyond ???

1st NATIONAL

CONGRESS on

Property Valuation

and Taxation

Thank You!