Section 29Sec./Art. 29

Transitory Guidelines. - LGUs, which are in the process of updating their SMVs upon the effectivity of this Act, shall continue with such revisions in accordance with Section 15, 16, 17, and 19 of this Act: Provided, That proper notification and coordination with the BLGF shall be undertaken.

In case the SMVs are not yet available or updated, the Commissioner of Internal Revenue shall adopt the existing SMVs, zonal values or the actual price in consideration as stated in real property transaction documents, whichever is higher, for purposes of computing any internal revenue tax: Provided, That the maximum assessment levels in Section 218 of RA No. 7160 shall be observed.

For the first year of effectivity of the approved SMV in accordance to this Act, any increase in real property taxes shall be limited to a maximum of six percent (6%) of the real property taxes assessed on such properties prior to the effectivity of this Act: Provided, That the cap shall be applicable to each type of real property tax, including Special Education Fund, idle land tax, and other special levies in real property: Provided, further, That the LGU may enact an ordinance to impose a cap on the increase in real property taxes for the succeeding years.