The Real Property Valuation and Assessment Reform Act (RPVARA) is projected to significantly boost local government revenue beginning in 2030, according to officials from the Department of Finance.
During a recent event, the executive director of the Bureau of Local Government Finance emphasized that the impact of the revised valuations would become evident after the 2028 election, with noticeable effects on local revenue streams from 2030 onward.
The Department of Finance will support local governments through the transition, ensuring that updated property valuations are released promptly and that new valuation tables are adopted without delay.
Funding for the initiative will come from the Real Property Tax Administration Fund, supplemented by national allocations and additional assistance for lower‑income local units to prevent any municipality from being left behind.
Officials highlighted that the reform will make property valuation transparent, consistent, and market‑based, thereby reducing business costs and enhancing investor confidence.
The current phase of implementation is described as a strategic investment in local governance, with a focus on raising standards while preserving local autonomy.
When the reform is fully operational at the local level, it is expected to deliver a valuation system that benefits taxpayers, provides predictability for businesses, and supports long‑term development.
Officials noted that property taxes will rise in most areas under the new system, but a 6% interest rate cap will remain in place through 2028 to cushion the impact on property owners.
Valuation updates will occur every three years, and the mass appraisal approach will be used for tax purposes, treating properties as groups rather than valuing each individually.
Accurate valuations are expected to streamline infrastructure projects by reducing or eliminating valuation disputes.
The reform also aims to refine appraisal practices, establish clearer valuation standards, and improve coordination between national and local governments, while still allowing local units to set tax rates and assessment levels under strengthened oversight.
