Bureau of Local Government Finance Opinion

August 23, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Provincial Assessor, Virac, Catanduanes, his within letter dated May 18, 2000 requesting clarification on the manner of issuing tax declarations to beneficiaries of lands covered by Certificates of Stewardship and Stewardship Agreement. HCacDE It appears that the abovementioned letter was prompted by the Memorandum dated November 10, 1992 of the Secretary of the Department of Environment and Natural Resources (DENR) relative to the effect of real property taxes on areas covered by Certificates of Stewardship Contract. It also appears that the said request was made in view of the contentions made in the said memorandum that "P.D. No. 853, as amended by P.D. No. 888, expressly mandated the Department of Finance to impose realty tax on government lands which are under the beneficial use by a taxable person/entity and the prohibition on the issuance of tax declaration covering forest lands (Section 75 of P.D. No. 705 has been already been revoked) In this connection, attention is invited to the provision of Section 2 of P.D. No. 853 which provides as follows: "Sec. 2. Declaration and listing in the assessment rolls . All timber and forest lands owned by the Republic of the Philippines or any of its political subdivisions, the beneficial use of which has been granted to a taxable person, shall be declared for taxation purposes and listed in the assessment rolls in the name of the concessionaire or licensee." acCTSE It is clear from the abovequoted provision of law that timber and forest lands owned by the Republic of the Philippines or any of its political subdivisions, the beneficial use of which has been granted to a taxable person, shall be declared for taxation purposes in the name of the concessionaire or licensee, hence, real property taxes thereon are collectible against the said concessionaire or licensee. Moreover, please be informed that the said P.D. No. 853 is not included in the list of laws that were repealed under Section 543 of R.A. No. 7160. Accordingly, for taxation purposes, timber and forest lands owned by the Republic of the Philippines, the beneficial use of which has been granted to a taxable person shall likewise be declared in the name of the grantee or concessionaire. TEHDIA (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge