Bureau of Local Government Finance Opinion

December 16, 2004 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Ms. Imelda I. Sebastian VP-Group Controller Chemphil Group, LMG Chemical Corporation Chemphil Bldg., 851 Arnaiz Avenue, Legaspi Village, 1229 Makati City Metro Manila M a d a m : This pertains to the letter dated September 28, 2004 of Atty. Benjamin C. Angeles I, City Assessor and Secretary to the Mayor on Financial Affairs of Pasig City, copy furnished this Bureau, regarding your request for transfer of the company's machineries covered by Tax Declaration Nos. E-006-01649, E-006-01650, E-006-01651 and E-006-01652 from the taxable roll of real property to exempt roll of real property for reason of closure issued by the Pasig City Government. This Bureau believes that for so long as the machineries owned by CHEMPHIL GROUP, LMG Chemical Corporation, are not in use for reason of closure or cessation of production, the same are not subject to real property tax. In this connection, enclosed is a copy of our letter of even date addressed to the City Assessor of Pasig City, with instructions to give due course to your request as provided in Section 199(o) of the Local Government Code of 1991 (R.A. No. 7160). DcCITS We trust that this will satisfy your request. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director