RMC No. 85-2024 Digest

RMC No. 85-2024 (July 30, 2024) circularizes Republic Act No. 12001, the law instituting reforms in real property valuation and assessment, reorganizing the Bureau of Local Government Finance (BLGF), granting a tax amnesty on real property, and providing for special levies. It creates a Central Consultative Committee (chaired by the BLGF head, with BIR, DENR, BSP and other sector representatives) and Regional Consultative Committees (chaired by BLGF Regional Directors, including BIR regional offices) as forums on real property valuation standards. Approved Schedules of Market Values (SMVs) will be used as the basis for real property-related taxes of national and local governments; notably, the Commissioner of Internal Revenue shall use the SMV or the actual gross selling price stated in transaction documents, whichever is higher, in computing any internal revenue tax. A real property tax amnesty covering penalties, surcharges, and interests on unpaid real property taxes (including Special Education Fund and idle land tax) may be availed within two years after the Act's effectivity through one-time or installment payment, but it excludes properties disposed of at public auction, delinquencies being paid under compromise agreements, and properties with pending court cases.