Zonal Valuation Applicable to Cityland Wack-Wack Royal Mansion

October 6, 1999 BIR RULING [DA-571-99] MEMORANDUM TO : Nora E. Tamayo OIC-Assistant Commissioner Chairman, Technical Committee on Real Property Valuation FROM : Sixto S. Esquivias IV Deputy Commissioner, Legal and Enforcement Group SUBJECT : Zonal Valuation Applicable to Cityland Wack-Wack Royal Mansion DATE : September 17, 1999 This refers to your 1st Indorsement dated May 6, 1999 relative to the letter dated September 11, 1998 of Atty. Sabino Padilla, Jr., representing Cityland Wack Wack Royal Mansion, located at Wack Wack Road, Wack Wack, Mandaluyong City, seeking a ruling as to the zonal value applicable to Cityland Wack-Wack Royal Mansion, Mandaluyong City, for purposes of computing the capital gains and documentary stamp taxes on the units whose title will be transferred to the name of the buyer. prcd Records show that Revenue Officer Leonila T. Dionisio of Revenue District No. 41, Mandaluyong City, recommended to the technical committee that the zonal value of Cityland Wack-Wack Royal Mansion should be maintained at P36,500.00 for the following reasons: "a.) That on 1995, while the revised zonal values was still on its process of finalization, although Cityland Wack-Wack Royal Mansions has just secured its building permit on November 20, 1995 basis for zonal value was already available due to their selling price printed on newspaper ads and posters. Basis was also made on zonal values of other condominium units constructed within the vicinity. Example are: 1. Pinnacle Condominium P36,500 / sqm. 2. Wack-Wack Twin Tower 36,500 / sqm. 3. Shaw Tower Along Shaw Blvd. 36,500 / sqm. "b.) That the zonal value of Wack-Wack apartments of P25,000/sqm. which is adjacent to Cityland Wack-Wack Royal Mansion could not be used, as being asked in the letter of Atty. Sabino Padilla, Jr. since Wack-Wack apartments as per ocular investigations / inspections was constructed sometime in 1960's. It could therefore be clearly understood that zonal value of a building constructed in the 1960's could not be the basis of a building constructed in the modern age of 1995. Moreover, depreciation should also be considered. "c.) Cityland Condominium included in the final list of zonal values clearly pertains to Cityland's Wack-Wack Royal Mansion due to the fact that Cityland has no other project within the vicinity but the Royal Mansion, other project of Cityland on that time was City Square situated at Pioneer Street and the Cityland Executive Mansion I along G. Enriquez at Namayan. Cityland Condominium was just the name listed since it has just started its construction and it has no other name yet that time." xxx xxx xxx In view of the foregoing information, the undersigned therefore recommends to the technical committee on Real Property Valuation that the zonal value of Cityland Royal Mansion should be maintained at its current zonal value of P36,500.00. . . . Emphasis should also be given to the fact that enough opportunities to contest these zonal values were given to them already during the public hearings and before publication of this zonal valuations." Since as represented by the counsel of the taxpayer that the public hearing which was conducted for the purpose of establishing the zonal value of properties in the area took place last January 25, 1995 when the construction of the Cityland Wack Wack Royal Mansion has not yet started, thus the Cityland Condominium included in the Final List of Zonal Values could not pertain to Cityland Wack Wack Royal Mansion Condominium. In view of the foregoing, this Office is of the opinion as it hereby holds that since the zonal value being attributed to the Cityland Wack-Wack Royal Mansion was established even before its construction, it is recommended that a new public hearing be conducted to ascertain the true valuation of the said property taking into consideration the classification of the condominium constructed and the income-bracket clientele it caters, among other criteria which are generally used in the formulation of the zonal value of a certain condominium project. (SGD.) SIXTO S. ESQUIVIAS IV (Deputy Commissioner) Legal and Enforcement Group