BLGF Memorandum Circular No. 044-14

November 6, 2014 BLGF MEMORANDUM CIRCULAR NO. 044-14 TO : All BLGF Regional Directors, Provincial/City/Municipal Treasurers and Assessors and Others Concerned SUBJECT : Executive Order No. 173. Reduction and Condonation of Real Property Taxes and Interests/Penalties Assessed on the Power Generation Facilities of Independent Power Producers under Build-Operate-Transfer Contracts with Government-Owned and/or -Controlled Corporations For the information and guidance of all concerned, attached is a copy of Executive Order No. 173 (E.O. 173) dated October 31, 2014 of His Excellency, President Benigno S. Aquino III regarding the above subject. Pertinent portion of the said Executive Order states: "xxx xxx xxx. "SEC. 1. Reduction and Condonation . All liabilities for real property tax on property, machinery and equipment (including any special levies accruing to the Special Education Fund) actually and directly used by IPPs for the production of electricity under Build-Operate-Transfer contracts (whether denominated Power Purchase Agreements, Energy Conversion Agreements or other contractual agreements) with GOCCs, assessed by LGUs and other entities authorized to impose real property tax, for all years up to 2014, are hereby reduced to an amount equivalent to the tax due if computed based on an assessment level of fifteen percent (15%) of the fair market value of said property, machinery and equipment depreciated at the rate of two percent (2%) per annum, less any amounts already paid by the IPPs. All fines, penalties and interests on such deficiency real property tax liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof. "xxx xxx xxx." All BLGF Regional Directors are hereby instructed to take note of the above Executive Order and disseminate contents thereof to all the Provincial, City and Municipal Treasurers and Assessors within their respective jurisdiction. IESTcD Further instructed is the immediate preparation and submission to BLGF regional offices of the duly accomplished Attachment "A" (IPP Real Property Tax Computation Based on E.O. 173) by provinces and cities for all IPP properties affected by the said executive order. The Regional Offices shall ensure that all provinces and cities affected by the executive order submit the duly accomplished Attachment "A" for their consolidation and submission to BLGF Central Office. Please be guided accordingly. (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director Bureau of Local Government Finance ATTACHMENT Executive Order No. 173 October 31, 2014