Bureau of Local Government Finance Opinion

November 3, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Regional Director for Local Government Finance, Department of Finance, Region III, San Fernando, Pampanga, the within 1st Indorsement dated June 2, 2003, Requesting the assessment of memorial parks and the corresponding legal basis thereof. It is informed that under our 5th Indorsement dated March 21, 2000 on the basis of the CBAA Decision, this Bureau ruled that only the unsold lots including the undeveloped portion of a Memorial Park should be assessed as taxable; and the lots which were already sold, and/or already within interment, be exempt from payment of real property tax. The subject Decision is embodied under CBAA Case No. 259, promulgated on 28 October 1991, entitled " Rolling Hills Memorial Park, Inc. vs. Local Board of Assessment Appeals of Bacolod City . As Petitioner-Appellant in the said case, Rolling Hills Memorial Park, Inc. a profit corporation operating a privately owned memorial park as a perpetual care cemetery. The CBAA ruled as follows: ". . . (T)his Board is of the view that once the ownership of the burial lots has been conveyed to the purchase by means of a Deed of Sale, said burial lots fall within the scope of the term 'nonprofit burial grounds' which are 'exempt' from real property tax under Section 40(b) of PD. No. 464 (now Section 234(b), LGC). since the factor of profitability is not present as regards the purchaser. Accordingly, nonprofit is not present as regard the purchaser. Accordingly, nonprofit burial grounds shall likewise include burial lots sold on installment basis. Thus, in the assessment of the developed portion of the subject memorial park, the area covering the 'exempt' burial lots as indicated above" "should be excluded from the total area of the said developed portion, beginning with the year following the conveyance of ownership or sale of the burial lots. aDcHIS "The unsold burial lots were correctly classified as commercial as they form part of the developed portion of the cemetery and are still under the category of profit burial grounds." We hope that with the similarity of issue at hand, this Bureau had been able to address your concern with respect to the exemption from real property tax of profit oriented Memorial Park, portions (burial lots) of which have been sold to the public for interment. However, unsold burial lots should be classified as commercial as they form part of the developed portion of the cemetery and are still under the category of profit burial grounds. Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director