City Government of Tagum

January 28, 2016 BIR RULING NO. 046-16 RA 7279; RR 11-97, as amended by RR 17-01; RMO 41-91; Sections 32 (B) (7) (b) & 196, of the Tax Code of 1997, as amended; BIR Ruling No. 137-10 City Government of Tagum City of Tagum, Davao del Norte Attention: Mayor Rey T. Uy City Mayor Gentlemen : This refers to your letter dated December 12, 2012, requesting for Donor's Tax exemption. Documents submitted disclose that the City Government of Tagum is the registered owner of a parcel of land identified as Lot 689, Cad. 276 containing an area of Forty Eight Thousand Five Hundred Seventy Three square meters (48,573 sq.m.) covered by Transfer Certificate of Title (TCT) No. T-235511 located at Barangay Mandaum, Tagum City, Davao del Norte; that the City Government passed Resolution No. 1197, s-2013 declaring the above-mentioned property be used for the socialized housing project for displaced residents living in shoreline area and other danger zones in Brgy. Mandaum, Tagum City; that Resolution No. 1038, s-2012, entitled "A resolution authorizing the City Mayor to sign and execute in behalf of the Local Government of Tagum, the Deed of Donation of Real Property registered in the name of the City Government of Tagum, for relocation purposes, known as Iga Uy Subdivision, located at Barangay Madaum, Tagum City" ; and that on December 13, 2012, the City Government of Tagum executed Four (4) Deeds of Donation to One Hundred Thirty Four (134) qualified beneficiaries, 1 whereby the City Government of Tagum transferred and conveyed the properties to the beneficiaries for Relocation Area Purposes. CAIHTE In reply, please be informed that the distribution or transfer of the lots to the beneficiaries of socialized housing project for displaced residents living in shoreline area and other danger zones in Brgy. Mandaum, Tagum City is exempt from Income Taxes/Donors Tax. The City Government of Tagum, which is tasked to implement the distribution of the housing units, shall not be subject to any tax, for it is only performing a mandated governmental function of providing shelter to the displaced residents living in shoreline area and other danger zones in Brgy. Mandaum, Tagum City. (BIR Ruling 137-10 dated December 7, 2010) An instrumentality of the government which acts for the purpose of accomplishing government policies and objectives and extending essential services to the people performs governmental and not proprietary functions. ( Peoples' Homesite and Housing Corporation vs. Court of Industrial Relations , 150 SCRA 296, 310 (1987) Thus, in line with the foregoing and since it is a declared State policy as laid down in Republic Act No. 7279, otherwise known as the "Urban Development and Housing Act of 1992", to provide decent and affordable housing to the underprivileged and homeless citizens, the City Government of Tagum, therefore, shall not be subject to any tax in its project to provide shelter to the displaced residents living in shoreline area and other danger zones in Brgy. Mandaum, Tagum City, as they are only performing a mandated governmental function. However, the notarial acknowledgment to the individual deed of conveyance is subject to the documentary stamp tax of P15.00 pursuant to Section 188 of the Tax Code of 1997, as amended. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX No. Beneficiaries Title No. Tax Dec No. Lot Block Area No. No. (sq.m.) 1 Malcolm A. Intervencion T-142-2012010084 01000902146 1 1 66 2 July V. Guadalquiver T-142-2012010086 01000902147 3 1 60 3 Randy Ramirez T-142-2012010089 01000902161 6 1 60 4 Manuel N. Saga T-142-2012010091 01000902172 8 1 60 5 Mila S. Tacabil T-142-2012010093 01000902184 10 1 60 6 Wilfredo J. Abinion T-142-2012010097 01000902197 14 1 60 7 Neptalie Tangal T-142-2012010098 01000902205 15 1 60 8 Miky A. Tag T-142-2012010100 01000902209 17 1 60 9 Reynaldo A. Cabilogan T-142-2012010084 01000902217 21 1 60 10 Felix D. Aguilar, Jr. T-142-2012010105 01000902223 22 1 60 11 Florencio M. Piano T-142-2012010129 01000902145 46 1 66 12 Rebecca M. Garcia T-142-2012010130 01000902148 47 1 63 13 Irene C. Patindol T-142-2012010132 01000902160 49 1 60 14 Warlito T. Santarin T-142-2012010135 01000902173 52 1 60 15 Manuelito G. Alcaide T-142-2012010138 01000902185 55 1 60 16 Lilia T. Tidalgo T-142-2012010139 01000902195 56 1 60 17 Hermenegildo Francisco T-142-2012010140 01000902196 57 1 60 18 Pacita B. Deocampo T-142-2012010141 01000902198 58 1 60 19 Rosalinda P. Caedo T-142-2012010146 01000902210 63 1 60 20 Mar Antonio B. Abad T-142-2012010147 01000902216 64 1 60 21 Joel R. Floredeliza T-142-2012010149 01000902222 66 1 60 22 Yolanda A. Cabilogan T-142-2012010152 01000902232 69 1 60 23 Lino B. Ausa T-142-2012010154 01000902246 71 1 60 24 Alfredo S. Suico T-142-2012010173 01000902136 1 2 61 25 Eusebia A. Intervencion T-142-2012010174 01000902135 2 2 60 26 Benedicto M. Albastro T-142-2012010175 01000902134 3 2 60 27 Joanne Fe B. Albastro T-142-2012010176 01000902133 4 2 60 28 Wilson M. Albastro T-142-2012010177 01000902132 5 2 60 29 Dionilito P. Bagsac T-142-2012010184 01000902131 12 2 60 30 Juanita P. Bagsac T-142-2012010185 01000902130 13 2 60 31 Samson T. Baluran T-142-2012010186 01000902129 14 2 60 32 Robinson B. Bautista Sr. T-142-2012010187 01000902128 15 2 60 33 Ernevier P. Husain T-142-2012010188 01000902127 16 2 60 34 Carmelita P. Lequin T-142-2012010189 01000902126 17 2 60 35 Elsa R. Gales T-142-2012010190 01000902125 18 2 60 36 Zandro S. Borres T-142-2012010191 01000902124 19 2 60 37 Rolando T. Montalban T-142-2012010195 01000902144 1 3 60 38 Solidad S. Rodriguez T-142-2012010198 01000902143 4 3 60 39 Estrellita I. Flordeliza T-142-2012010199 01000902142 5 3 60 40 Gavino A. Intervencion T-142-2012010201 01000902141 7 3 60 41 Noel M. Mendoza T-142-2012010202 01000902140 8 3 60 42 Socrates P. Castro T-142-2012010203 01000902139 9 3 60 43 Arniel B. Calolot T-142-2012010204 01000902138 10 3 60 44 Rodeline B. Calulot T-142-2012010205 01000902137 11 3 60 45 Antonio N. Saga Jr. T-142-2012010210 01000902149 16 3 60 46 Cleofe I. Calapan T-142-2012010211 01000902150 17 3 60 47 Romel N. Saga T-142-2012010212 01000902151 18 3 60 48 Abelardo G. Ampilan T-142-2012010213 01000902152 19 3 60 49 Edwin P. Manuel T-142-2012010215 01000902153 21 3 60 50 Lourdes C. Cervera T-142-2012010216 01000902154 22 3 60 51 Robert T. Mijares T-142-2012010217 01000902155 23 3 60 52 Rolando T. Mijares T-142-2012010218 01000902156 24 3 60 53 William G. Alcaide T-142-2012010221 01000902157 27 3 60 54 Ronito T. Montalban T-142-2012010222 01000902158 28 3 60 55 Escarlit C. Escollante T-142-2012010223 01000902159 29 3 61 56 Roselio V. Gomez T-142-2012010224 01000902162 1 4 60 57 Eduardo A. Villavito T-142-2012010225 01000902163 2 4 60 58 Gerondio B. Santarin T-142-2012010229 01000902183 6 4 60 59 Manuel C. Alcaide T-142-2012010230 01000902186 7 4 60 60 Noemi D. Ruales T-142-2012010233 01000902199 10 4 60 61 Aurea V. Digman T-142-2012010234 01000902204 11 4 60 62 Glenn G. Albastro T-142-2012010235 01000902208 12 4 60 63 Juanito S. Balili T-142-2012010238 01000902211 15 4 60 64 Danilo P. Cabaez T-142-2012010239 01000902218 16 4 60 65 Roger L. Tutor T-142-2012010242 01000902171 19 4 60 66 Rodrigo T. Santarin T-142-2012010245 01000902182 22 4 60 67 Cristita L. Inso T-142-2012010246 01000902187 23 4 60 68 Rolando B. Bautista Sr. T-142-2012010248 01000902194 25 4 60 69 Jerany I. Baloma T-142-2012010254 01000902212 31 4 60 70 Cornelio D. Espinosa Jr. T-142-2012010255 01000902219 32 4 60 71 Ramon B. Mandantes Jr. T-142-2012010257 01000902164 1 5 60 72 Jovito A. Galope T-142-2012010261 01000902165 5 5 76 73 Romeo B. Tag T-142-2012010262 01000902167 6 5 78 74 Mario A. Terana Sr. T-142-2012010263 01000902170 7 5 60 75 Primie Lee R. Cadungog Sr. T-142-2012010267 01000902169 11 5 76 76 Ruben Q. Bayonon T-142-2012010268 01000902181 1 6 60 77 Rogelio A. Cuevas T-142-2012010269 01000902180 2 6 60 78 Edgardo E. Cabaas T-142-2012010270 01000902179 3 6 60 79 Ronald S. Ramada T-142-2012010272 01000902178 5 6 60 80 Justiniano M. Batangas Jr. T-142-2012010273 01000902177 6 6 64 81 Justiniano M. Batangas Sr. T-142-2012010274 01000902188 7 6 65 82 Edwin C. Diamona Sr. T-142-2012010275 01000902193 8 6 60 83 Domingo O. Quilla Jr. T-142-2012010276 01000902192 9 6 60 84 Renato C. Isidro T-142-2012010279 01000902191 12 6 60 85 Dionald P. Bentinganan T-142-2012010280 01000902190 13 6 65 86 Edgar I. Pepito T-142-2012010281 01000902203 1 7 60 87 Rodolfo E. Pepito Jr. T-142-2012010282 01000902202 2 7 60 88 Joel R. Terana T-142-2012010284 01000902345 4 7 60 89 Jaymar G. Suaybaguio T-142-2012010286 01000902201 6 7 60 90 Vicente A. Baloma T-142-2012010288 01000902207 8 7 60 91 Diony M. Quisado Sr. T-142-2012010294 01000902206 14 7 79 92 Melchora E. Thompson T-142-2012010295 01000902166 1 8 64 93 Romeo A. Salundagit Sr. T-142-2012010297 01000902168 3 8 60 94 Rosalina A. Largo T-142-2012010298 01000902174 4 8 60 95 Alfredo Q. Cutab T-142-2012010299 01000902176 5 8 60 96 Remegio C. Baluran Jr. T-142-2012010309 01000902215 15 8 60 97 Hermenegildo A. Mijares T-142-2012010310 01000902220 16 8 60 98 Arnold A. Fernandez T-142-2012010315 01000902175 21 8 59 99 Nida A. Taada T-142-2012010316 01000902189 22 8 59 100 Vevencia L. Balcon T-142-2012010320 01000902200 26 8 59 101 Randy T. Baromeda T-142-2012010324 01000902213 30 8 60 102 Calixto G. Mayake T-142-2012010325 01000902214 31 8 60 103 Eusebio R. Mijares Sr. T-142-2012010326 01000902221 32 8 60 104 Venancio Jemilesawan T-142-2012010418 01000902226 2 12 60 105 Vicente P. Pampilo T-142-2012010419 01000902227 3 12 60 106 Conrado G. Flordeliza T-142-2012010422 01000902228 6 12 60 107 George M. Resesio T-142-2012010423 01000902229 7 12 60 108 Nicanor L. Jubahib T-142-2012010424 01000902230 8 12 62 109 Ricarda L. Jubahib T-142-2012010425 01000902231 9 12 62 110 Floro A. Gamilisawan T-142-2012010427 01000902235 11 12 60 111 Michael M. Vallespin T-142-2012010428 01000902236 12 12 60 112 Alejandro D. Piano T-142-2012010429 01000902237 13 12 60 113 Lucrecio B. Indab Jr. T-142-2012010430 01000902238 14 12 60 114 Novelito G. Mencidor T-142-2012010431 01000902239 15 12 60 115 Felipa B. Indab T-142-2012010432 01000902240 16 12 60 116 Wilson P. Resesio T-142-2012010433 01000902241 17 12 62 117 Cerilo A. Dela Torre T-142-2012010455 01000902224 1 15 60 118 Rodolfo A. Pepito T-142-2012010457 01000902233 3 15 60 119 Alex M. Dimabildo T-142-2012010458 01000902244 4 15 60 120 Luisito M. Gales T-142-2012010459 01000902245 5 15 60 121 Erlinda A. Cespon T-142-2012010461 01000902249 7 15 60 122 Cecelio P. Piano T-142-2012010462 01000902250 8 15 60 123 Felixberto D. Piano T-142-2012010463 01000902253 9 15 60 124 Dioscoro B. Sinsano Jr. T-142-2012010472 01000902225 18 15 60 125 Marcial Tutor T-142-2012010474 01000902234 20 15 60 126 Leah A. Escuadro T-142-2012010475 01000902243 21 15 60 127 Edgardo S. Mencidor Sr. T-142-2012010476 01000902242 22 15 60 128 Diosdado C. Bula T-142-2012010477 01000902247 23 15 60 129 Erlinda I. Fernandez T-142-2012010478 01000902248 24 15 60 130 Jerico P. Longakit T-142-2012010479 01000902251 25 15 60 131 Eduardo E. Rosel T-142-2012010480 01000902252 26 15 60 132 Gilbert D. Piano T-142-2012010481 01000902254 27 15 60 133 Ronulfo A. Lumba T-142-2012010482 01000902255 28 15 60 134 Annaliza Lumba T-142-2012010483 01000902256 29 15 60 Total Area 8,147 ===== Footnotes 1. See Annex for the masterlist of qualified beneficiaries (formerly TCT No. 235511 and new titles are issued).