Bureau of Local Government Finance Opinion

November 17, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Patrick B. Concepcion LAOO III, Officer-in-Charge Office of the Municipal Assessor La Trinidad, Benguet S i r : This refers to your letter dated August 29, 2003, inquiring legal opinion on the following queries: a. Whether boarding houses are classified as commercial or residential; and b. How to assess buildings of mixed classifications/use. Under our numerous pronouncements on the subject matter, the latest of which is contained under the 2nd Indorsement dated October 8, 2003, copy attached, this Bureau clarified that apartments which are used as residence by the occupants should be classified as residential, notwithstanding that the same are for rent. With regard to the second query, attached is a copy of the 3rd Indorsement dated August 21, 2000 treating on the assessment of building of mixed uses, wherein this Bureau ruled that: "Section 15(b) of Local Assessment Regulations No. 1-92 dated October 6, 1992 of the Department of Finance, provides as follows: "Section 15. Rules for assessment of Buildings and other improvements "xxx xxx xxx. "b. A building used both for residential and commercial or industrial purposes shall be classified and valued in accordance with the schedule of base unit construction cost and shall be assessed on the basis of the predominant use of the building." (Emphasis supplied) "Clearly, three (3) or more storey buildings, which are used both for residential, commercial and/or industrial purposes shall be valued and assessed on the basis of its predominant use. In cases, however, where the building is equally used for residential, commercial or industrial, the predominant use of the surrounding properties shall govern its classification." It is hoped that this Bureau, has substantially addressed your abovementioned concerns. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director