Bureau of Local Government Finance Opinion

July 31, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the OIC-Regional Director for Local Government Finance, Department of Finance, Region XIII, CARAGA Administrative Region, Butuan City, the herein preceding Indorsement dated January 31, 2012, relative to the request of the City Assessor of Bislig City, for proper guidance on the request of the National Grid Corporation (NGCP) , represented by its General Counsel, for a reconsideration of this Bureau's ruling dated September 17, 2009, and requesting further for the cancellation of Tax Declaration (TD) Nos. 06-02-0023-04434 to 06-02-0023-04454 including the Control House in the name of NGCP. The abovementioned request is being made in view of the Notice of Assessment issued on August 23, 2011 against the real properties of said corporation located at Barangay Tabon, Bislig City, from CYs 2009 to 2011. In a letter dated January 4, 2012, addressed to the OIC-Regional Director, that region, the said City Assessor of Bislig informed that NGCP maintains, operates, and is the actual and exclusive user of the subject properties owned by NPC/TRANSCO. It is informed in this connection, that the BLGF issued a Memorandum Circular No. 48-2012, dated June 22, 2012, copy enclosed, clarifying the real property taxability of NGCP. Accordingly, this Bureau hereby reiterate its ruling dated September 17, 2009. Hence, NGCP is liable to pay real property taxes even though the real properties thereof (machinery and equipment) are actually, directly and exclusively used in the transmission and generation of electric power considering that NGCP is not a government-owned or controlled corporation (GOCC) mandated under Section 234 (c) of the Local Government Code (LGC) of 1991 (R.A. No. 7160), and being the beneficial user of the subject properties. Thus, the request for the cancellation of the abovementioned TDs cannot be given due course. HAEDCT Be guided accordingly. (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director