Module 1 - Opinions and Rulings

Subject Matter Legal Basis BLGF Opinion
1. Memorandum • Local Assessment • Submission of the

Circular No. 20- Regulations 1-04 Proposed Schedule
2012. Re: (MRPAAO) of Market Values to
Guidelines in the BLGF-Central Office
Implementation • Local Assessment for LGUs within
of Local Circular Regulations 1-07 Metro Manila Area
No. 1-2007, the (Compliance (MMA) and to BLGF
supplemental Reporting System Regional Offices for
Regulations for (CRS) LGUs located
the effective outside Metro
Implementation Manila Area.
of LAR No. 1-04,
MRPAAO.
2. Request for real • Memorandum • BLGF opined that
property tax dated Feb. 16, 2007 electric poles and
towers owned by
exemption of of the NEA electric cooperatives
Electric • 1964 Supreme are considered as
Cooperatives Court case, Board falling under the
pursuant to of Assessment category of machinery
Memorandum Appeals, City and equipment,
therefore subject to
issued by Assessor and City real property tax
National Treasurer of payment. – (BLGF
Electrification Quezon City vs. Memorandum Circular
Administration Manila Electric No. 14-2005 dtd. Sept.
(NEA). Company (G.R. No. 9, 2005, Supreme
Court Decision in
L-15334). PHILRECA Case.)
3. Memorandum • Local Assessment • Submission of the
Circular No. 20- Regulations 1-04 Proposed Schedule
2013. Re: • Local Assessment of Market Values to
Guidelines in the Regulations 1-07 BLGF-Central Office
Implementation for LGUs within
of Local Circular Metro Manila Area
No. 1-2007, the (MMA) and to BLGF
supplemental Regional Office for
Regulations for LGUs located
the effective outside Metro
Implementation Manila Area.
of LAR No. 1-04,
MRPAAO.
4. Memorandum • Supreme Court En Banc Decision • Pursuant to EN BANC
(GR No. 156040 (Interpretation of
Circular No. 70-2012. “Exclusive of this Franchise” Digitel Decision, the real
Re: Taxability of Real Phrase properties of other
properties of • Bayantel vs. Quezon City Gov’t.
and Digitel vs. The Province of
telecommunications
Telecommunications Pangasinan Cases companies with similar
Companies pursuant • Doctrines of the Law of the Case tax provisions as of
to the EN BANC and Stare Decisis: Digitel are taxable and
• Doctrine of the Law of the Case is
Supreme Court adhered to in the single case where shall take effect January
Decision in the case it arises, but is not carried into
other cases as precedent; while
of the year following the
of “Digitel Doctrine of stare decisis means that effectivity of their
Telecommunications once a point of law has been
established by the court, that point
respective franchise.
Philippines, Inc., vs. of law will, generally, be followed
City Government of by the same court and by all courts
of lower rank in subsequent cases
Batangas et. Al. (G.R. where the same legal issue is
No. 156040)” raised.
• Stare Decisis proceeds from the first
promulgated on principle of justice that, absent
December 11, 2008. powerful countervailing
considerations, like cases ought to
be decided alike.
5. Request for • Chapter IV, Section 7, • In view of the clear
opinion on the sub-paragraph (8) of definition of
correct the Manual on Real machinery in the
classification, Property Appraisal LGC, the BLGF so
appraisal and and Assessment holds that cell tower,
assessment of cell Operations antennas,
sites or tower (MRPAAO). transceivers, receiver,
used by • Chapter 5, Plant, , transmission,
telecommunicatio Machinery & apparatus and other
ns companies in Equipment of Mass appurtenances are
the operation of Appraisal Guidebook considered
their business. machinery for real
property taxation
purposes.
6. Requests for • Sec. 28(3), Article VI • HDSJDB, even
opinion from City of the 1987 without the RTC
Assessor of Cebu Constitution Decision is
City, re: taxability • Section 234(b) of the considered exempt
of real properties Local Government from the payment of
owned by Code (LGC) of 1991, real property tax
Hospicio De San Exemption of Real based on the
Jose De Barili Property Tax. provisions cited
(HDSJDB) • Section 217 of LGC, under Section 28 of
Actual use of Real the Constitution and
Property as basis for Sections 217 & 234
Assessment. of the LGC.
• Regional Trial Court,
Branch 5 Decision, in
the case HDSJDB vs.
City of Cebu.
7. Requests for • Sec. 2(b)(2-4), Real • A corresponding
opinion on the Property Appraisal amendment to the
possibility of for Taxation particular portion on
conducting Purposes, Chapter IV the existing
reassessment of of MRPAAO. ordinance be made
commercial and to conform with
industrial Section 2(b)(2-4),
properties that Chapter IV of
have been MRPAAO and the
appraised using reassessment thereof
stripping method will commenced the
without amending quarter following the
the existing approval of the
Ordinance. amended Ordinance.
8. Memorandum • DOJ Opinion No. 91 S. 2012
dated Oct. 25 2012;
• DOJ opines that real property
tax may be imposed on the
Circular No. 82- • Lung Center of the Phils. Vs. subject properties.
2012 dtd. Quezon City (portions of the land
leased to private entities as well
• (MRPAAO) Roads or Streets in
urban subdivisions, unless
November 28, as those parts of the hospital already donated or turned
leased to private individuals are
2012, re: not exempt fr such taxes.
over to the barangay,
municipality or city, shall be
Department of Portions of the land occupied by
the hospital and portions of the listed in the name of the
Justice Opinion hospital used for its patients, subdivision owner and shall be
valued on the basis of the cost
No. 91, DOJ S, whether paying or non-paying,
are exempt from rpt. of cementing, asphalting or
2012, relative to • City of Baguio vs. Fernando paving them with gravel and
sand per square meter.
the Real Property Busuego; (where use is the test,
ownership is immaterial) • Laws granting exemptions from
Taxability of Road • PD No. 1216; (30% should be taxes should be construed
alloted to open spaces, strictly against the taxpayer
Lots and Open amenities) and and liberally in favor of the
Spaces in a • Albon vs. Fernando (exemption taxing authority and that
from rpt can only be claimed if
Subdivision. the public has full and
claims for exemption must be
based on the language of the
unimpeded access to, and use of, law, too plain to be mistaken
the roads, and sidewalks of the
subdivision.
9. BLGF • Sec. 224 of the LGC which • NGCP is subject to rpt on
provides for the appraisal and land, bldgs, machinery and
Memorandum assessment of machinery and equipment
Circular No. 48- equipment; • Properties shall be
2012 dated June • Sec. 234, supra all machinery classified, valued and
and equipment used actually, assessed as Industrial
22, 2012, on the directly and exclusively by
• Assessment level for Land,
real property tax local water districts and
Bldgs and other structures
GOCCs engaged in the supply
liability of the and distribution of water shall be based under 218(a)
National Grid and/or generation and (b) of that AL enacted
Corp of the Phils. transmission of electric under enabling ordinance
power • Machinery and equipment
(NGCP) • Withdrawal of exemption shall be 80% or that AL
provision under section 234, fixed under the Ordinance
LGC. • Machinery and equipment
• SC EnBanc decision Digitel vs. which ceased operations
Batangas city (GR No.156040) shall no longer be assessed
Dec. 11, 2008. and should be transferred
• SC Decision NPC vs.Quezon from taxable roll to exempt
Province and municipality of roll of real properties.
Pagbilao (GR No. 171586),
July 15, 2009
10. Ltr. to Mr. N. • SC EN BANC Decision (GR. • The Legislative franchise of
Quiambao, PA No.156040 promulgated SMART and SUN Cellular is
on due to expire in 2017 and
Pangasinan, dated 2016, respectively. SUN
• Dec. 11, 2008, Digitel vs.
January 18, 2013, Batangas City. legislative franchise took
req. clarification on • BLGF Memorandum effect Aug. 3, 1991, and
the rulings/opinions SMART franchise took effect
Circular No. 70-2012 dated March, 1992. Hence, the
issued by the BLGF Sept. 10, 2012, citing the allegation of Mr. Quiambao
concerning certain subject EN BANC SC that the legislative franchises
tel companies in Decision clarified the of these 2 telcos have expired
meaning of “exclusive of is unfounded.
relation in the SC EN this franchise”; • Globe is liable to pay real
BANC Decision in • Sec. 5, RA 7678, Digitel property tax on its radio
the case of Digitel franchise station buildings, machinery
vs. Batangas City et. • SC Decision “RCPI vs. So. shed, and radio relay station
Cotabato promulgated on tower, while radio equipment,
al. promulgated on accessories, and spare parts
Dec. 11, 2008. April 13, 200
• BLGF Memorandum needed in the business are
Circular No. 01-2010 dated exempt therefrom.
That the legislative franchises
of SMART and SUN Cellular January 13, 2010.
have expired.
11. 2nd Ind. dated • SC EN BANC Decision in • Reso. dated Nov. 26,
January 15, 2013 the case “Digitel vs. 2008 in the CA Entry of
relative to the Batangas City Judgment dated Aug.
letter of the Mun. 162010, cannot as yet
Treasurer of • CA Entry of Judgment be made as basis in the
Paracale, cam. dated August 16, 2010, grant of RPT exemption
Norte re: if “SMART vs. CBAA and on the properties, ADE
SMART is indeed LBAA , et.al (CA GR SP used in the operation
exempt from RPT No. 75586) of SMART pending the
based on the CA CA Decision on the
Motion for
decision, in the Reconsideration filed
case “SMART Com by the respondent
vs. CBAA and LBAA, Surigao City et al.
LBAA of Surigao
City and the City
Assessor of
Surigao City.
12. Ltr dated March • Sec. 66 , RA No. 6657, • Recommed that PARC
18, 2013 otherwise known as the should avail of the
addressed to the Comprehensive Agrarian provision of Sec. 277 of
Reform Law (CARL) the Local Govt Code of
Presidential • Local Finance Circular No. 2- 1991, which provides:
Agrarian Reform 94 of the DOF. “Sec. 277. Condonation
Council (PARC) re: “ Only delinquencies in real or Reduction of Tax by
issuance of TD in property taxes are deductible the President of the
the name of from the computation due Phils. – The President of
farmer the landowners, excluding
penalties or interests. the Philippines may,
beneficiaries to the However, penalties or when public interest so
new landowner interests which have ccrued requires, condone or
despite failure of prior to the effectivity of the reduce the real property
affected landowner CARL shall remain to be tax and interest for any
to pay back taxes collected and/or deducted year in any province or
from the compensation due city or a municipality
the landowners concerned within Metropolitan
pursuant to Sec. 66 of RA Manila Area.”
6657
13. Ltr. Dated March 4, • Sec. 19, RA No. 10142. • Submission of copies of
2013, Re: • Sec. 19. Waiver of Taxes and relevant documents
Clarification of the Fees Due to the National such as Petition for
counsel for Govt and to LGUs. – Upon Rehabilitation,
issuance of the Commencement Order
International Copra Commencement Order by by the Court until the
Export Corp., the court, and until the approval of the
Interco Mftg Corp. approval of the Rehabiliation Rehabilitation Plan or
re: Section 19 of Plan or dismissal of the dismissal of the
Republic Act petition, whichever is earlier, petition, whichever
No.10142 the imposition of all taxes comes earlier.
(otherwise known and fees including penalties,
as the Financial interests and charges
Rehabilitation and thereof due to the national
Insolvency Act gov’t or to LGUs shall be
considered waived, in
(FRIA of 2010) furtherance of the objectives
of rehabilitation”.
14. Ltr request of the PA • Sec. 205(d) Real property • Inasmuch as the
of Albay on whether owned by the Republic of the ownership of the
it is proper to issue TD Phils, its instrumentalities and remaining land parcels
for the remaining political subdivisions, the acquired by PSALM
lands (46 parcels have beneficial use of which has from NAPOCOR have
already been been granted for consideration not as yet been
registered with the or otherwise, to a taxable transferred and
ROD), that are still person, shall be listed, valued registered with the
declared in the name and assessed in the name of ROD, the same should
of NAPOCOR with the possessor, grantee or of the
APRI as BENEFICIAL public entity if such property still be declared for
USER, and requesting has been acquired or held for taxation purposes in
the adjustment of the resale or lease. the name of NAPOCOR.
Assessment Level; • Sec. 234(a) Real property With APRI as beneficial
Whether Aboitiz Power owned by the Republic of the user.
Renewable, Inc. (APRI), Phils., or any of its politial • Classification should be
as the beneficial user is subdivisions except when the from special to
liable to pay RPT with beneficial use thereof has been Industrial retroactive
industrial class (50%) granted, for consideration or the year following the
AL; and when is the otherwise, to a taxable person. date of effectivity of
effectivity. the lease contract.
15. Ltr. addressed to • Sec. 199(m) of the LGC defines • Based on the findings in the
the Manager, Improvement as a “valuable ocular inspection conducted
addition made to a property or by the Bureau that 1.) the
Merriam and an amelioration in its bldg permit issued to Merriam
Webster condition, amounting to more reflected a total construction
bookstore than a mere repair or cost of P2,061,270.88;
requesting replacement of parts involving • 2)the bldg permit is for
capital expenditures and labor renovation because the
exemption on RPT which is intended to enhance rented space was bare and
imposed on its value, beauty or utility or to merriam needed to introduce
leasehold adapt it for new or further the necessary improvements
improvements purposes. for the business.
• Sec. 203. Duty of person • The bureau agrees with the
introduced by Acquiring Real Property or action of the City Assessor of
Marquinton Blue Making Improvement. –It shall Marikina in assessing for rpt
Wave Strip Mall in also be the duty if any person, purposes the improvements
or his authorized of Merriam and webster
the name of representative, acquiring at Bookstore, Inc.
Merriam and any time real property in any
Webster municipality or city or making
Bookstore, Inc any improvement. . . .
16. Ltr. request of the Executive Order No. 226, or the • Local Finance Circular No.
City Assessor of Omnibus Investment Code of 001-2002 dated April 25,
1987. Sec. 78 thereof 2002:
Tanauan city for provides among others that • Machinery that is
clarification on the “machinery owned by zone permanently attached to land
phrase “production registered enterprises which and bldgs is subject to rpt;
equipment not are actually installed and • Machinery that is not
operated in the zone for permanently attached to real
attached to real manufacturing, processing or estate is:
property shall be for industrial purposes shall • subject to rpt if it is an
exempt from rpt as not be subject to rpt payment essential and principal
provided in PEZA for the first three (3) yrs of element of an industry, work
operation; and b) production or activity without which such
certificate issued equipment or machinery not industry, work or activity
to Taiyo Nippon attached to real estate, used cannot function; and
Sanso Phils. As directly or indirectly in the • not subject to rpt if it is not
production, assembly or an essential and principal
PEZA registered manufacture of the reg. element of an industry, work
enterprise product of the zone or activity
registered enterprise shall be
exempt from rpt
17. Ltr. dated June 5, 2013 • Supreme Court • For new machinery
to BPI Family savings Decision (GR No. undergoing initial
bank re: on whether 115253-74) assessment,
ATMs are taxable and promulgated on Jan. depreciation is applied
directly to the original
whether depreciation 30, 1998, entitled or acquisition cost of
allowance can be Antonio P. Callanta, the succeeding years of
applied on the et al. vs. Office of the use until the next
assessment of ATMs. Ombudsman and the general revision of
City of Cebu; assessment; and
1. Cash vault was assessed as • Sec. 226 of the LGC Thereafter, the yearly
improvement • Sec. 225 of the LGC depreciation is applied
2. Air conditioning units to the replacement or
were not assessed reproduction cost of the
3. Two(2) ATMs were machinery using the
declared taxable. formula for imported
4. Notice of assessment was machinery:
already sent and received
by the taxpayer RCNLD= OC x D2 x (EL-N)
D1 EL
18. DOF Indorsement • Sec. 118(b) of the • BLGF opined that the
requesting that LGC: Regional Director of
the Reg. 4a should advice
implementation (b) Boundary the Provincial
of the directive of disputes Assessor of Rizal to
the RD R4a involving two defer the issuance of
regarding 92) or more the tax declaration in
boundary dispute municipalities favor of the
between Baras within the same municipality of Baras,
and Tanay both of provinces shall Rizal Province,
Rizal province, be be referred for pending final
deferred or settlement to resolution of the
suspended. the sangguniang issue.
bayan
concerned
19. Ind. Dated July 15, 2013 • Sec. 6(A)(1)(a), Chapter IV - • BLGF Memo Circular No.
requesting opinion relative Assessment Regulations No. 1- 04-2008.
to the date of effectivity of 04 dated Oct. 01-2004 of the - … reassessment of real
assessment made by the DOF as follows:
city assessors office of a. Copy of the approved bldg properties in the
iloilo city on the property permit, bldg plan, and/or abovecited instances are
identified as a residential cert of completion or cert allowed by law, provided
bldg which took sometime of occupancy permit fr that once the notice of
to be completed. building official; reassessment has
Certificate of final b. Notice of the date of already been sent to
inspection showing that inspection; property owners,
tehe date of completion c. Report of inspection of the assessment/reassessme
was Oct. 12012; 2) bldg/structure; and
certification fr the subd. d. Accomplished affidavit of nt is already beyond the
Homeowners asso. ownership or sworn authority of the local
Attesting that the taxpayer statement of the MV of the assessor to correct or
only moved to their house property in the absence of rectify, but is already
in Dec. 2012 and 3) Bry a bldg permit or certificates within the ambit of the
certificate showing that required under Item(a) LBAA as very well
taxpayers are resident of above. enunciated in the
that barangay since Dec. •Sec. 221 of the LGC;
2012. callanta case.
•Sec. 226 of the LGC
20. Ltr. Dated August, • Sec. 234(a) of the LGC. The Contract of Lease
- Contract of Lease which provides, between Makilala and the
27, 2013 among others, the ff:
addressed to the 1. That the LESSOR is the absolute
stallholders of the public
owner of the stall located within market is not one of those
Municipal the compound of the public instances where the
Administrator, market , makilala cotabato; beneficial use theory
Makilala, Cotabato, 2. That the LESSEE shall deposit the contemplated under Sec.
amount of Php_______
on whether or not equivalent to three (3) months
234(a) would apply. The
he municipality can rental as a result of the public value or benefit of the
collect rpt on bidding thereof as fixed by the property inures not to the
Mun. Ord. to guarantee prompt LESSEE but to the LGU in
properties owned payment of rentals. . . . the form of monthly rental;
by it but leased to 3. That the charges of water, power nor does the LESSEES have
individual lessees and gas consumption shall be for control over the stall they
the account of the LESSEE;
of the 4. That the LESSEE shall not alter are occupying.
municipality’s structure ir portion of the leased
public market. property nor make any extension The herein request is
thereof, without written answered in the negative.
permission from the Market
Adm/Mun. treasurer and
approved by the Mayor?LESSOR.
21. Ltr dated Sept. 4, 2013 • Sec. 218(d) of the LGC • BLGF opines that the
addressed to C & G Law Offices • Section 221 and 222 of the effectivity of assessment
relative to the request of their LGC (Date of Effectivity of covering the subject
client AP Renewable, Inc., (APRI) Assessment or property shall now be
addressed to the PA of Albay. Reassessment and the year following the
PSALM turned over to APRI, the Assessment of Property said notice of
geothermal facilities located in Tiwi, Subject to Back Taxes)
Albay pursuant to Asset Purchase assessment indicating
• Section 205 of the LGC the changes in the
Agreement between PSALM and (Listing of Real Property in
APRI, for the lease of lands acquired the Assessment Rolls. applicable assessment
by PSALM from the NPC. • Notices of assessment with level is issued and
APRI has been paying the rpt on the Notes that the assessment received by APRI. The
leased lands under its name addendum appended
beginning 3rd quarter of 2009 to level were subject to
date. amendment or adjustment on the Notices of
Notices of Assessments were already were received by APRI assessment holds no
issued by the Municipal Assessor • RPT Clearances were water for the concerned
and Treasurer of Tiwi for the yrs already issued. assessor and treasurer
2010, 2011 and 2012; • Sec. 226 of the LGC. (Local are bound by the
APRI informed the Provincial Assessor Board of Assessment notices and tax
requesting for the inspection and Appeals clearances issued for
assessment of all properties
transferred to APRI from PSALM. the years 2011 and
2012.
22. Letter dated • Section 205. Listing of Real • BLGF opines that the Ayala
Property in the Assessment Land, Inc., being the lessee,
August 1, 2013 Rolls. is the legally accountable
addressed to the • Section 234(a) of the LGC. – party to the unpaid real
Hon. City Mayor of Real property owned by the
Republic of the Phils or any of property taxes due on the
Quezon City re: its political subdivisions except government-owned UP
liability of unpaid when the beneficial use property.
thereof has been granted, for
real property tax consideration or otherwise, to • It is essentially wrong being
on the 37 has. a taxable person; without congressional
Land owned by the - Lease Contract by and authority for UP to assume
between UP and the Ayala
University of the and Inc. the real property tax
Philippines (UP), • Supreme Court Decision (GR liability of the Ayala Land,
No. 171586 dated july 15, Inc., over the leased
but leased by the 2009 (National Power Corp. vs. property.
Ayala Land known Province of Quezon and
as the UP-AYALA Municipality of Pagbilao.
Techno Hub. • Supreme Court Decision (GR
No. L-29772) in the case of the
City of Baguio vs. Fernando S.
Busuego
23. Ltr. dated Sept. 6, 2013 • MOA with Deed of BLGF opines that inasmuch as
addressed to the UP requesting Conveyance between the required actual, direct and
its exemption from real property BCDA and UP exclusive use of the property
tax; and 2) that the payment • Sec. 234(b) of the LGC is yet to happen in the near
made by the Bases Conversion • Supreme Court Decision future, the request is denied
Development Authority (BCDA) Baguio City vs. Fernando for the time being until such
on its property located in Taguig time that the actual, direct and
City, be refunded. Busuego (GR No. L-29772) exclusive use of the property,
- The Treasurer denied the request promulgated on Sept. 18, as mandated in the Phil.
for refund of rpt paid under protest 1980; Constitution and the LGC, is
by BCDA on the ground that the • Mactan Cebu International complied with.
subject property is still declared for Airport Authority (MCIAA) “The sole determinative factor
rpt purposes in the name of BCDA vs. Cebu City, et al. (GR No.
and not in the name of UP.
for exemption from realty
- MOA with Deed of Conveyance was 120082) promulgated on taxes is the use to which the
executed by and between BCDA Sept. 11, 1996. property is devoted. And
and UP which partly states “that where ‘use’ is the test,
the physical turnover of the ownership is immaterial.”
property (4,300 sq.m.) by the BCDA
to UP shall be deemed completed
upon the effectivity of this
Memorandum of Agreement with
Deed of Conveyance”.
- UP “intends to use the property as
a satellite campus of the UP
Professional School”
24. Letter dated Sept. 30, 2013 to • Sec. 213 (LGC). Authority of The appraisal of machinery
GMA Network, requesting Assessor to Take Evidence: For the for rpt purposes shall be
opinion relative to the purpose of obtaining information
on which to base the MV of any based on its actual cost to
authority of the local assessor real property, the assessor of the the owner, plus other costs
to take evidence, as provided prov/city or mun or his deputy that may have incurred in
for under Sec. 213 of the LGC. may summon the owners of the acquiring the same. In order
- Prov/mun. assessor requested properties to be affected or
GMA to declare the true value persons having legal interest
to support the said actual
of the machinery used in the therein and witness, administer cost, sworn statement shall
operation of the business and oaths, and take deposition be secured from property
attach in the sworn statement concerning the property. Its owners to form as an
certified copies of all receipts ownership, amount, nature and integral part of the appraisal
and other documents and/or value.
• Sec. 472(LGC). Qualifications,
report. Assessors are even
list of inventory of all authorized by law to make
machinery reflecting the true Powers and Duties.
mv/acquisition plus attendant • Ensure that all laws and necessary
policies governing the appraisal verification/confirmation
costs. and assessment of real properties
- GMA alleged that the assessor for taxation purposes are
with proper authorities.
overstretched Sec. 213, supra property executed. Hence, the said Assessors
• Sec. 7 (MRPAAO). Rules in the acted in good faith when he
Appraisal of Machinery and requested permission and
equipment. cooperation from GMA.
25. Letter dated Sept. 27, 2013 • MIAA vs. CA et al., GR 1. Sub-Judice Principle
to the Provl. Governor of no.1155650, 2. Provincial Treasurer is advised to
Bulacan, req. assistance promulgated on July 20, hold in abeyance any further
course of action pertaining to
relative to rpt in the name 2006. the rpt delinquency covering the
of Manila North Tollways • Supplemental Tollway 34 TDs in the name of MNTC.
Corp. (MNTC). Operations Agreement 3. Under BLGF’s letter dated Oct.
- MNTC does not own any of
entered into by and 11, 2013, we opined by way of
the properties described in between RP (the grantor) observation and without pre-
and the Toll Regulatory empting the decision of the
the TDs. The properties are LBAA that the commercial bldgs
the expressway itself within Board (TRB).
declared in the name of the
within the territory of • MNTC sought recourse MNTC should have instead been
Bulacan prov. with the LBAA of Bulacan declared in the name of RP, as
- NLEX belongs to the in April, 2013 owner and MNTC as beneficial
Republic of the Phils which • Sec. 234 of the LGC user (Sec. 234(a) of the lgc.
are among those exempt • DOJ opinion No. 91 s. 4. Actual use of the properties
properties under Sec. 234 of 2012 should have been improvements
the LGC. and not pavements, which are
- 34 TDs were all classified as considered additional items to
“commercial bldgs” with its the buildings with a
actual use as “pavement”. corresponding percentage in the
SMV of the respective lgu.
26. 3rd Ind. Dated Oct. 28, • Sec. 201. Appraisal of Real Property; 1. When two persons have
2013 to the RD, • MRPAAO thru LAR No. 1-04 dated declared in their names
MIMAROPA, relative to Oct. 1, 2004. the same property or a
the request of the Heirs • Sec. 5, Chapter IV, (MRPAAO) portion thereof and were
• In case of an untitled property being issued corresponding tax
of the late Esteban B. claimed by two or more persons
Saligumba, req issuance declarations, a notation
whether natural or juridical a tax shall be made on the face
of a TD in their favor and declaration shall be issued for each of each tax declaration.
the eventual claimants
2. Assessors are not
cancellation of any and • Local Assessment Opinion No. 1-81
of then Ministry of Finance dated authorized to cancel
all existing TDs in the existing tax declarations
Feb. 19, 1982.
names of alleged illegal • Issuance of the Tax declaration is for without legal basis or
claimants over a parcel taxation purposes only. The TD authorized by the other
of land situated in Sta. DOES NOT and CANNOT alone by declarants.
Fe Romblon. itself, confer any legal title of 3. Their corresponding TDs
- The Provl Assessor ownership in fee simple to the shall not be cancelled,
informed that some of declarant/assessee over the instead proper notations
the several declared properties covered, unlike the Title, on each TDs and its
which is the very evidence of corresponding FAAS
owners occupying ownership itself. The primary
portions of the indicating that the
function of the TD is to serve as property or part thereof is
subject property were documentary evidence of taxability also declared in the name
already issued OCTs. of real property. of the other person.
27. BLGF MEMORANDUM • SUPREME COURT ENBANC 1. PPA is not a GOCC but an
CIRCULAR NO. 101- DECISION MIAA VS. instrumentality of the
2013, dated Nov. 13, PARANAQUE CITY; national government,
2013 Re: Real Property • CBAA case in PPA vs. LBAA thus the real properties
Tax Exemption of the of Gen. Santos City, et. Al., thereof are exempt from
Philippine Ports CBAA case No. M-21) the payment of RPT.
Authority (PPA) dated December 10, 2007 2. However, when the
pursuant to the EN reiterating the SC en .banc beneficial use of these
BANC DECISION OF decision properties has been
THE SUPREME COURT granted, for consideration
in the case of Manila or otherwise to a taxable
International Airport person, such property
Authority (MIAA) vs. becomes taxable.
City of Paranaque et. 3. BLGF Memo Circular No.
A. No. 155650 17-2003 dated Oct. 8,
promulgated on July 2003, declaring PPA liable
20, 2006. to realty tax is considered
moot and academic.
28. Memorandum to • EO No. 27, series of 2011. In view of the provision
DOF re: BLGF • Sec. 1. All liabilities for rpt on of EO 27, BLGF sees no
property, machinery and equipment impediment on the
comments on the (including any special levies accruing
letter of Gov. David to the SEF) actually and directly used
impending plan of
Quezon province to
Suarez, Quezon by IPPs for the production of electricity
proceed with its
under BOT CONTRACTS (whether
Province , denominated Power Purchase intention to exercise its
requesting guidance Agreements, Energy Conversion rights to collect the RPT
in dealing with the Agreements or other contractual including interest or
rpt liabilities of agreements) with GOCCs, pacticularly
the NPC and PSALM, assessed by the penalties that may be
TEAM ENERGY Province of Quezon for all years up to due the said IPPs
COMPANY incurred 2011, are hereby reduced to an operating within the
from January 2012 amount equivalent to the tax due if province after the lapse
computed based on an AL of 15% of of the privilege granted.
to present. the FMV of said property, machinery
and equipment depreciated at the rate
of 2% per annum less any amounts
already paid by the IPPs. All fubes,
penalties and interest on such
deficiency rpt liabilities are also hereby
condoned and the concerned IPPs are
relieved from payment thereof.
29. Conditional settlement • EO NO. 27. S. 2011, EO 27, S. 2011 shall only
of the RPT of San “Reduction and apply to the Province of
Roque Hydro Plant Condonation of RPT and Quezon and not to other
Bldgs, Machinery and interest/prnalties assessed LGUs with IPPS similarly
Equipment for yrs on the power generation situated.
2014-2016. facilities of IPPs under
Proposed MOA will Build-Operatate-Transfer
follow the formula (BOT) Contract with GOCC
provided under EO 27, in the Province of Quezon
dated Feb. 28, 2011,
for the Province of
Quezon and the
municipality of
Mauban that the RPT
payment will be at
15%, with 2%
depreciation allowance
for both buildings and
machinery and
equipment.
30. Request of El Kapitan Pro • Sec. 199 (o)of the 1. EKPSLSI is only a
Sounds & Lights System LGC service provider. Its
Inc., on whether the light • Machinery definition light and sound
and sound equipment equipment cannot be
owned by it are considered
as real properties subject considered real
to assessment for rpt properties subject to
purposes. assessment for real
It is a corp. primarily property tax purposes.
engaged in the business of
providing services such as
marketing, trading,
distribution, installation,
supplying, renting out of all
kinds of equipment not
limited to professional
lighting and sound and
other devices related
thereto.
31. Request for RPT • Sec. 6 Tax Exemption. – “x x x BLGF opines that what the
Exemption on the basis any income derived from law intends to exempt are
of Sec. 6 of RA 7459 also these technologies shall be only the income derived
known as the Inventor exempted from all kinds of from inventions, and not
and Invention Incentives taxes during the first ten (10) exemption from rpt on his
Act of the Phils. years from the date of the first real property (land).
Request on exemption sale”
on his land classified as • Taxation is the rule, tax
residential located in exemption is the exception
and exemption from taxation
Antipolo City. are highly disfavored in law;
The City Assessor and he who claims an
denied his request for exemption must be able to
exemption, hence justify his claim by the clearest
request was brought to grant of of organic or statute
the BLGF for opinion. law, an exemption from the
common burden cannot be
permitted to exist upon vague
implication (Asiatic Petroleum
Co. vs. Llanas
32. Request for • Local Government Code 1. The determining factor
confirmation that the of 1991 (RA 7160) in the imposition of
transfer of title to the • RA NO. 4627 (The transfer tax is whether
land and the common Condominium Act) there was indeed a
transfer of ownership or
areas from Bonifacio title over real property,
West Dev’t Corp. to such as the transfer of
Bellagio One the condo units from the
Condominium Assoc condo developer to the
without any condo buyer/owner thru
consideration and for the CCT. It is understood
the benefit of the unit that the land (mother
owners pursuant to lot) is transferred from
Condominium Act (RA the developer to the unit
4627), is exempt from buyers at the time of
sale of the condo unit
transfer tax.
33. 2. Any subsequent registration of
title (mother lot) in the name
of the Condo Corp no longer
constitutes a transfer subject
to transfer tax, but merely a
confirmation of ownership or
title over the condo units
previously acquired by the
unit buyers. The transfer of
interest in the land and
common areas was already
effected upon the sale of the
unit to the buyers;
3. Conveyances from the condo
developer to the condo
corp/assoc for mgnt/adm
purposes likewise do not
constitute a transfer subject to
transfer tax.
34. BLGF • GSIS Charter, Sec. 39, RA 1. All GSIS real properties
Memorandum 8291. x x x. the GSIS, its are exempt from real
Circular No. 19- assetss, revenues including property tax
2014 dated April all accruals thereto, and 2. If the beneficial use
benefits paid, shall be thereof has been granted
25, 2014 on the exempt from all taxes, or enjoyed by a taxable
real property tax assessments, fees, charges, person/entity, the liability
exemption of GSIS or duties of all kinds. These for the payment of the rpt
pursuant to RA exemptions shall continue shall be shouldered by the
8291; and the SC unless expressly and beneficial user; and
decision in the case specifically revoked and any 3. In case the beneficial user
of GSIS vs. City assessment against the fails to pay the rpt, the
Treasurer and City GSIS as of the approval of property cannot in any
Assessor of Manila. this Act are hereby event, be subject to public
considered paid. auction sale
• Supreme court Decision notwithstanding its realty
9G.R. No. 186242 Dec. 23, tax delinquency.
2009
35. Letter-request on the • Sec. 3(B)(1) of MRPAAO 1. Based on the fact that
legality of the issuance of • In case several assessments are the subject lot is a
TD of the Municipal made on one and the same titled property; and
Assessor of Malay, Aklan, property, the duty of the the SC Decision that
thru an affidavit only in assessor is to cancel all the
assessments, except the one the incontrovertible
the name of one Armando proof of ownership is
Tandez. properly made. However, if any
assessee or his representative the title, the notation
- Upon insistence, The in the TD of Dr.
Provincial Assessor revised shall object to the cancellation
the TD in the name of Dr. made in his name, such Tandez, et, al, on dual
Edgar Tandez, et al, but assessment shall not be annotation should be
indicated in the TD that the cancelled but the fact shall be deleted, for lack of
noted on the FAAS, TDs, ARs,
same ia also declared in
etc. Preference, however, shall legal basis.
the name of Armando
Tandez. be given to the assessment of
- The records of the DENR the person who has the best
reveal that the survey title to the property, x x x .
claimant is GLORIA • Supreme Court Decision (G.R
TANDEZ, Dr. Edgar Tandez’ 163551)on July 18, 2011 that the
mother. The lot is a titled incontrovertible proof of
property way back in 1977 ownership is the title.
or 37 yrs already.
36. Query on whether • Local Finance Circular No. 1- 1. The undeclared
machinery of GMA 7 2002 of the DOF:
1. machinery that is permanently machinery of GMA 7
found in the Master attached to land and buildings is located in the different
Control Room, studio subject to rpt, even though this rooms/facilities
Central Room, Main is actually, directly and including the machinery
Studio, Editing Room exclusively used for religious, inside the OB van are
and inside the Outside charitable or educational
purposes. indeed essential to the
Broadcasting Van (OB 2. Machinery that is not broadcasting operations
Van) are considered permanently attached to real because it depict and
machinery subject to estate is: describe the networks
real property tax. a. subject to rpt if it is an nature of business
essential and principal
element of an industry, work wherein these
or activity without which such machinery are evidently
industry, work activity cannot used in providing and
function; and enhancing the networks
b. Not subject to rpt if it is not an
essential and principal programs, films, cinema
element of an industry work and other related
or activity. activities.
• Sec. 199(o) of the LGC as
implemented under Art. 290(o)
of its IRR
37. BLGF MEMO • CHAPTER 1. Local Government 1. All Assessors of
CIRCULAR NO. 111- Assessment Organization. the affected LGUs
2013 DATED Dec. 23, - SEC. 1 (c) Duties, Functions and are instructed to
2013. Reassessment of Responsibilities of Local Assessors update all their
Real Properties under major functions: assessment
affected by Natural (l) eliminate from the assessment records as a result
and Man-Made roll of taxable properties such of the
Calamities properties which have been reassessments.
destructions. destroyed or have suffered
permanent loss of value by
reason of storm, flood, fire, or
other calamity; or being exempt
properties that have been
improperly included in the
same;
(m) decrease the assessment
where the property previously
assessed has suffered a
substantial loss of value by
reason of physical and
economic obsolescence”,
38. BLGF MEMO • Joint DAR-DOF-DOJ-LBP Adm. 5. Within five (5) working days
CIRCULAR NO.20-2014 Order No. 01 S. 2013. from receipt of payment of
dated May 14, 2014 the delinquent rpt including
• Operating Procedures for LGU: applicable penalties and
Guidelines and interests, issue thru the
1. Review and validate thru the
Procedures on the Local Assessor the list of CARP- treasurer the rpt clearance
Payment of Estate and covered landholdings cert.
RPT on Agrarian forwarded by DARPO vis-à-vis 6. Submit thru the heir or
Reform Covered the asesssors office records; successor-in-interest the rpt
Agricultural Lands. 2. Submit thru the local assessor clearance cert to the LBP-
an updated assessment roll on AOC/HO to ensure that all
CARP-covered properties to the real property taxes including
local treasurer; penalties and interest due
3. Compute on the bais of the are paid before release of
updated AR thru the treasurer, compensation proceeds to
the rpt due including penalties the landowner or successor-
and interests that have accrued in-interest.
prior to June 1988 or the date 7. Take into account that all
of RA 6657 took effect; succeeding rpt liabilities
4. Submit thru the treasurer the shall commence on the year
RP tax bill of all taxable CARP- following the transfer of
covered lands to the ownership of the land to the
LBP-AOC/HO thru the heir or beneficiary
sucessor-in-interest;
39. Request for rpt • Sec. 28(3) Article VI of Exempt properties per ocular
exemption on the ff. the 1987 Constitution; inspection:
properties of Angeles • Sec. 234(b) of the LGC 1. NSTP/ROTC activity area, pavillion,
soccer field, storage bldg.,
University Foundation • Supreme Court Decision garage/parking space,
(AUF): on Abra Valley College underdeveloped botanical garden
1. NSTP/ROTC activity vs. Hon. Juan P. Aquino, area;
et al. (G.R. L-39086, 2. Formation center Bldg;
area, museum,
June 15, 1988. 3. Machinery and equipment used
pavilion, soccer field, actually, directly and exclusively
storage bldg., (….“reasonable
emphasis has always for educational purposes.
garage/parking space, 4. Taxable Properties per ocular
underdeveloped been made that inspection:
exemption extends to 1. All AUF Hostels
botanical garden area,
formation center, facilities which are 2. Printing Press Bldg;
incidental to and 3. AUF Carpark
university Hostels,
printing press bldg, reasonably necessary 4. AUF Medical Center Hosp.
for the accomplishment 5. machinery/equipment not
AUF Carpark, Medical actually, directly and exclusively
of the main purposes”)
center hospital, used for educational purposes
machinery and Lung Center of the
such as, but not limited to those
equipment Phils., Quezon City being used in the printing press
bldg and the hospital.
40. 3rd Indorsement requesting • NPC argues that , being
reassessment of the real the actual owner and a
properties of Siquijor Diesel GOCC, it shall be exempt
Power Plant (Siquijor DPP), from rpt on its
acquired by NPC from the
Province of Siquijor Electric machinery and
Cooperative (PROSIELCO) in equipment and with a
1988 thru a MOA. In 2000, 10% Assessment Level
NEA issued a Certificate of on its land and bldgs.
Transfer to NPC. NPC per SEC. 218 and SEC.
managed and operated 235 of the LGC.
Siquijor DPP.
- Docs at the assessors
office reveal that these
properties are still
registered in the name of
PROSIELCO and were
assessed at 60% and 80%
AL on its land, bldgs, and
machinery and
equipment.
Subject Legal Basis BLGF Opinion
Matter
• NPC vs. Province of Quezon and Pagbilao (GR 1. BLGF believes that the
No. 1715860), Supreme Court (2ND Div. Held: assessment made by the
“….we declared that legal interest should be LGU of Siquijor is proper
an interest that is actual and material, direct
and immediate, not simply contingent or and in order. The land,
expectant. . . buildings and machinery
- To successfully claim exemption under Sec. and equipment of
234© of the lgc, the claimant must prove two PROSIELCO remains to
elements: be taxable until such
a. the machinery and equipment are actually, time that the ownership
directly and exclusively used by local water of subject properties will
districts and GOCC; and
b. the local water districts and GOCC claiming be registered in the
exemption must be engaged in the supply and name of NPC.
distribution of water and/or the generation and
transmission of electric power.
- The GOCC claiming exemption must be the entity
actually, directly, and exclusively using the real
properties and the use must be devoted to the
generation and transmission of electric power. . . .
THANK YOU FOR LISTENING
MABALOS

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1. Memorandum • Local Assessment • Submission of the

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