Bureau of Local Government Finance Opinion

October 2, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the Municipal Assessor, Taguig, Metro Manila, the within attached letter of Ms. Eliha L. Lazo, School Head, Little Angels Learning Center of the Holy Family Inc., 290 Sto. Nio Street, Holy Family Village, Bagumbayan, Taguig, Metro Manila, in effect requesting exemption from the payment of real property tax on their real properties situated thereat. It may be recalled that this Bureau under its 1st Indorsement dated September 25, 2001, copy attached, referred the matter to that Office, but, to date, no response has been received by this Bureau. At any rate, and without pre-empting your comment and/or recommendation on the matter, attention is invited to the 2nd Indorsement dated February 7, 2000 of this Bureau, treating on a similar subject matter, the pertinent portions of which read as follows: "It is informed that this Bureau has consistently ruled that the exemption of, among others, educational institutions from payment of real property tax is very explicit. Firstly, it is provided in the Constitution, the fundamental law of the land. Secondly, this provision in the Constitution was copied almost verbatim in the Local Government Code of 1991 (R.A. No. 7160). Section 234(b) thereof provides as follows: "Sec. 234. Exemptions from Real Property Tax . The following are exempted from payment of real property tax: "xxx xxx xxx. "(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings and improvements actually, directly and exclusively used for religious charitable or educational purposes ; (Emphasis supplied) "xxx xxx xxx. "It may be worth mentioning that this Bureau fully understands the desire of that Office to raise the much needed revenues for that particular LGU. However, we nevertheless cannot deny the fact that, there is basis for the request, even if these schools are collecting matriculation fees from its students." "Under our 3rd Indorsement dated February 9, 1999, copy attached, we emphasized that educational institutions in order to be granted exemption from payment of real property taxes, should be actually, directly and exclusively used for educational purposes, regardless of whether or not these institutions are charging tuition/matriculation fees. EHSAaD "xxx xxx xxx." Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director