I. Introduction

“Zonal value” is one of those terms every landowner in Baliwag eventually hears about—usually right before a sale, donation, or estate settlement. It sounds technical, but in Philippine tax practice it is central: it often dictates how much tax must be paid when agricultural land in Baliwag, Bulacan is transferred.

This article explains, in Philippine legal context, everything a practitioner, landowner, or buyer should understand about zonal values as they apply to agricultural lands in Baliwag, Bulacan, with emphasis on:

Legal foundations of zonal values
How these values are determined and updated
How they apply to agricultural land in Baliwag
Their impact on national and local taxes
Practical procedures and common issues in real-world transactions

It does not supply specific peso figures for the latest zonal values (because those are time-sensitive and officially fixed only by the BIR through its own issuances), but it will equip you to locate, understand, and correctly apply them.

II. Legal Basis of Zonal Values

National Internal Revenue Code (NIRC) of 1997, as amended
- The Commissioner of Internal Revenue is empowered (Section 6 and related provisions) to determine the fair market value of real property for tax purposes.
- Zonal values are one way this power is operationalized—through BIR schedules of zonal values per Revenue Regulations (RRs), Revenue Memorandum Orders (RMOs), or Revenue Memorandum Circulars (RMCs).
Revenue Regulations and BIR Issuances
- The BIR issues RRs and RMOs which:
  - Provide guidelines for determining zonal values, and
  - Publish schedules of values per location, classification, and sometimes even by street or barangay.
- Agricultural lands in Baliwag, Bulacan fall under the jurisdiction of a specific BIR Revenue District Office (RDO), which has its own zonal value schedule for agricultural, residential, commercial, industrial, and other classifications.
Local Government Code of 1991 (LGC, R.A. 7160)
- Separate from BIR zonal values, LGUs (province, city, municipality) maintain Schedule of Fair Market Values (SFMV) for purposes of real property tax (RPT).
- For Baliwag, the Provincial Assessor of Bulacan (and, where applicable, the city/municipal assessor) issues SFMVs.
- These LGU fair market values are not the same as BIR zonal values, though both are “values” of the same land.
Other Relevant Laws/Regimes
- TRAIN Law (R.A. 10963)—primarily reforming tax rates and bases, but still relying on “higher of zonal value, fair market value, or selling price” as the taxable base for real property transactions.
- Agrarian Reform laws—for CARP-covered lands, valuation rules under DAR may diverge from BIR zonal valuation, especially in just compensation cases.

III. What Exactly Is a Zonal Value?

Zonal value is the value of a property, per unit (usually per square meter), as determined by the BIR for a specific area and classification (e.g., “agricultural,” “residential,” “commercial”).

Key characteristics:

Territorial: It applies to a defined area—province, municipality/city, barangay, or sometimes street or zone.
Classification-based: Agricultural land in Baliwag will have a different zonal value from residential or commercial land in the same barangay.
Administrative determination: It is not the product of a negotiation between buyer and seller but a regulatory value set by the BIR.
Tax-specific: It’s primarily for national internal revenue taxes, not for LGU real property tax.

In practice, when dealing with agricultural land in Baliwag:

Taxable value for certain national taxes = the higher of:

Actual consideration (contract price),

BIR zonal value, or

LGU fair market value per tax declaration (depending on the specific tax).

IV. How Zonal Values Are Determined and Updated

The BIR follows a general methodology, which—while technical—can be simplified as follows:

Data Gathering
- Market data: recent sales, offers, and listings of land in Baliwag and nearby localities.
- Consultations: with LGU assessors (e.g., Provincial Assessor of Bulacan, local assessor of Baliwag), real estate brokers, and developers.
- Physical inspection: type of land use (e.g., rice fields, sugarcane, idle lands), access roads, irrigation, proximity to highways (e.g., NLEX access, major provincial roads).
Segmentation of Areas
- Baliwag’s territory is subdivided into zones—often based on barangays, major thoroughfares, or natural boundaries.
- Each “zone” may have one or more agricultural classifications, e.g.:
  - Irrigated agricultural land
  - Non-irrigated/agricultural land
  - Fishponds (if any within jurisdiction)
  - Agro-industrial areas
Drafting of Proposed Zonal Values
- The BIR RDO prepares a draft schedule, typically with:
  - Location/Zone/Barangay
  - Classification (Agricultural, Residential, etc.)
  - Zonal value per square meter
Consultation and Publication
- Stakeholder meetings or public consultations may be conducted.
- The final zonal value schedule is approved by the Commissioner of Internal Revenue and published through a BIR issuance (e.g., an RMO/RMC), and made available at the RDO and BIR website.
Updating Frequency
- In practice, zonal values may not be frequently updated, even when market values rise sharply.
- Rapidly urbanizing areas like Baliwag (especially after its development and proximity to major commercial corridors) sometimes have zonal values that lag behind market prices for long periods.

V. The “Latest” Zonal Values for Agricultural Land in Baliwag

The “latest” zonal values are those last officially issued by the BIR for Baliwag’s agricultural lands. These will be found in:

The current BIR zonal value schedule for the RDO covering Baliwag, Bulacan; and
Any subsequent amendments or updates via BIR issuance.

However:

Only the BIR schedule and its official publication can accurately state the exact figures.
Values can change through new BIR issuances, and no secondary source has the same legal authority as the BIR’s own schedules.

In practical legal writing, one normally says:

“As of the latest BIR issuance covering Baliwag, Bulacan, the zonal values for agricultural lands are as set out in the applicable schedule of zonal values of the concerned Revenue District Office. Parties must verify the most current schedule with the BIR prior to any transaction.”

VI. Relationship Between Zonal Value, Fair Market Value, and Contract Price

For agricultural land in Baliwag, three different “values” may appear:

Contract Price (CP)
- Stated sale price in the Deed of Absolute Sale, Deed of Donation, etc.
Zonal Value (ZV) – BIR
- Per square meter value per official zonal schedule.
Fair Market Value (FMV) per Tax Declaration – LGU
- Value in the tax declaration issued by the local assessor (Baliwag/Province of Bulacan).

For many national taxes, the tax base is computed as:

Tax base = Highest among CP, ZV, and FMV

For example (conceptually, without figures):

If CP < ZV, the BIR will generally use ZV.
If CP > ZV and CP > FMV, the BIR may use CP.
If FMV > ZV and FMV > CP, FMV may control for certain taxes.

VII. Taxes Affected by Zonal Value for Agricultural Land

Capital Gains Tax (CGT) on Sale of Real Property Classified as Capital Asset
- Rate: typically 6% of the higher of:
  - Selling price (CP),
  - Zonal value (ZV), or
  - Fair market value (FMV) per tax declaration.
- For an agricultural land in Baliwag that is a capital asset (not used in trade or business by the seller), this is the usual rule.
Creditable Withholding Tax (CWT) (if property is an ordinary asset of a corporate or business seller)
- Zonal value still influences the taxable base against which the prescribed withholding tax rate is applied.
Donor’s Tax
- If agricultural land in Baliwag is donated, the donor’s tax base similarly relies on the higher of CP, ZV, or FMV.
Estate Tax
- When agricultural land forms part of the gross estate, it is valued at the higher of ZV or FMV at the time of death, subject to specific estate tax rules.
Documentary Stamp Tax (DST)
- Imposed on deeds of sale, donation, or other conveyances of real property.
- The tax base is again usually the higher of CP, ZV, or FMV.
Local Transfer Tax (by LGU)
- Governed by the Local Government Code and provincial/municipal ordinances.
- LGUs tend to rely primarily on FMV per tax declaration, but in practice LGU assessors frequently ask for the BIR-based valuation as reference.

VIII. Special Considerations for Agricultural Land in Baliwag

Reclassification vs. Actual Use
- A property may still be classified as agricultural in official records, even if used residentially or for industrial or subdivision purposes.
- Until proper reclassification (through zoning changes, DAR conversion, etc.) is effected, the BIR may still treat it as agricultural for zonal value purposes, while other agencies might treat it differently.
Conversion from Agricultural to Other Uses
- Involves separate legal processes (e.g., DAR conversion order, LGU rezoning).
- Once converted and properly reclassified in official records, new zonal values for the new classification (e.g., residential or commercial) may apply, if such zonal values exist for that zone in Baliwag.
Presence of Infrastructure and Urban Development
- Proximity to national roads, commercial centers, and transport connections in or near Baliwag tends to drive higher zonal values over time, even for lands still classified as agricultural.
- BIR may differentiate between:
  - Agricultural land along a national/provincial road
  - Agricultural land in interior or less accessible locations
Agrarian Reform Coverage (CARP)
- CARP-covered agricultural lands involve additional valuation rules (e.g., just compensation laws and DAR formulas) that do not strictly depend on BIR zonal values.
- However, zonal values may be used as reference or supporting data in some valuation or negotiation contexts.

IX. Procedure to Apply the Latest Zonal Values in a Baliwag Transaction

When dealing with the sale, donation, or transfer of agricultural land in Baliwag, a typical step-by-step process looks like this:

Ascertain Basic Property Details
- Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)
- Tax Declaration (TD) for land (and any improvements)
- Lot area (in square meters or hectares)
- Barangay and location description
- Current classification in the TD (agricultural, etc.)
Identify the Applicable BIR RDO and Zonal Schedule
- Confirm which RDO covers Baliwag, Bulacan.
- Obtain the latest schedule of zonal values for that RDO.
- Look for:
  - Municipality/City: Baliwag
  - Barangay or zone where the land is located
  - Classification: Agricultural
Look Up the Zonal Value
- In the schedule, find the row/entry corresponding to the exact zone and classification.
- Note the zonal value per square meter.
Compute the Zonal Value of the Property
- Formula:
  
  Zonal Value (Total) = ZV per m² × Total Land Area (m²)
Compare with Contract Price and Tax Declaration FMV
- Take the highest among:
  - Contract Price (CP)
  - Zonal Value (Total)
  - FMV per TD
Determine the Tax Base for Each Tax
- For CGT: 6% of the highest value.
- For DST: relevant rate on same highest value.
- For CWT (if applicable): prescribed rate based on applicable tax rules.
- For Donor’s/Estate tax: follow specific rules but still typically using the higher of ZV or FMV.
Secure BIR Assessment and Pay Taxes
- File appropriate BIR forms (e.g., BIR Form 1706 for CGT, 2000-OT for DST—subject to the latest forms and rules).
- BIR’s One-Time Transaction (ONETT) section will verify the values used against the zonal schedule and tax declaration.
Obtain BIR Clearance and Proceed with Registration
- After paying taxes, obtain necessary BIR clearances and Certificate Authorizing Registration (CAR) or its current equivalent.
- Present these, along with the deed and other documents, to the Registry of Deeds and the local assessor, for transfer of title and issuance of a new tax declaration.

X. Common Legal and Practical Issues

Deed Price Lower Than Zonal Value
- If the buyer and seller agree on a price lower than the zonal value, the BIR will still tax based on zonal value (or FMV, if higher).
- The deed remains valid between the parties, but the tax base is unaffected by their lower price.
Partial Sales and Easements (e.g., Right-of-Way)
- When only a portion of an agricultural lot is sold (e.g., for road right-of-way), the zonal value is applied only to the area sold, based on its classification and location.
Inconsistencies Between BIR and LGU Classifications
- It can happen that the LGU considers the area as “residential” in its zoning ordinance, but the tax declaration still says “agricultural,” or vice versa.
- In such cases, both legal classification and actual use may be examined; practitioners often seek harmonization of records (e.g., update TD, secure proper reclassification) to avoid disputes.
Outdated Zonal Values vs. Actual Market Prices
- In rapidly growing areas like Baliwag, actual market prices may far exceed the zonal value.
- While the BIR bases taxes on the higher of CP, ZV, and FMV, a very low zonal value relative to market prices can reduce tax burdens—until the BIR updates the schedule.
Challenging or Questioning Zonal Values
- Zonal values are in the nature of administrative determinations.
- Parties can:
  - Elevate issues to the RDO or the BIR regional office for clarification or reconsideration.
  - In extreme cases, legal challenge may be brought on grounds such as lack of due process in issuance or constitutional issues, but this is rare and fact-intensive.

XI. How to Confirm the Latest Zonal Values for Baliwag Agricultural Land

While the legal framework above is stable, zonal values themselves are dynamic and may be updated. To ensure you are using the latest schedule for agricultural land in Baliwag:

Go directly to the BIR RDO covering Baliwag, Bulacan
- Ask for the latest zonal value schedule for agricultural lands in the barangay where your property is located.
- Request official confirmation if needed (e.g., stamped copy or certification).
Check that the schedule is current
- Verify the effective date of the zonal values and whether any new issuance has superseded them.
- Confirm if there are differentiated values for specific roads, subdivisions, or zones.
Align all documents
- Ensure the title, tax declaration, and deed all consistently identify:
  - The location (barangay, lot & block nos., survey numbers)
  - The land area
  - The classification (agricultural vs. reclassified uses)
Consult a tax or real estate law practitioner
- Especially important in complex situations (e.g., CARP-covered lands, reclassification, corporate sellers, or multiple transfers).

XII. Conclusion

For agricultural land in Baliwag, Bulacan, zonal values are not mere background data; they actively shape how much tax is owed in virtually every transfer—sale, donation, partition, or inheritance. The legal authority rests with the BIR, through the NIRC and its implementing regulations, and zonal values interact closely with contract price and LGU fair market values.

Anyone dealing with such land should:

Understand what zonal values are,
Know how they are determined and updated,
Appreciate how they affect capital gains, estate, donor’s, documentary stamp, and local transfer taxes, and
Always verify the current official schedule from the BIR before finalizing any transaction.

Used properly, the zonal value system brings predictability to taxation of real estate in Baliwag and across the Philippines; used carelessly, it can be the source of surprise tax assessments and costly delays.