Bureau of Local Government Finance Opinion

March 28, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Assessor, Makati City, for full comment and/or appropriate action, the within letter dated March 12, 2003 of Atty. Zenaida S. Hernandez, Legal Counsel, in behalf of her client, International Baptist Church, Inc. (IBCI) , 140 H. V. dela Costa corner Tordesillas Streets, Salcedo Village, Makati City, in effect requesting exemption from the payment of real property tax on their properties (land and improvement) declared under TD Nos. E00200476 and E00200477 situated in Hercules Street, Bel-Air II, same city. Atty. Hernandez is making representations that IBCI's property is allegedly being used as a parsonage for their Pastor and his family and as a retreat/seminar house for the members of said church hence, the said properties are actually, directly and exclusively used for religious purposes. Apparently the subject properties owned by the IBCI have been assessed for taxation purposes by that Office as residential. In this regard, attention is invited to Section 28(3) Article VI of the Philippine Constitution and Section 234(b) of the Local Government Code of 1991 (R.A. No. 7160), which are reproduced hereunder for your ready reference: "Sec. 28, Constitution : "Sec. 28. The rule of taxation shall be uniform and equitable. . . "xxx xxx xxx. "(3) Charitable institutions, churches and parsonages , or Convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings and improvements, actually, directly and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation. (Emphasis ours) "SEC. 234. Exemption from Real Property Tax . The following are exempted from the payment of real property tax. "xxx xxx xxx." "(b) All charitable institutions, churches, parsonages or convents appurtenant thereto, including mosques, nonprofit or religious cemeteries and all lands, buildings and improvements which are actually, directly and exclusively used for religious, charitable or educational purposes." Based on the above provisions of law and subject to the determination of that office that the herein properties are in fact being used actually, directly and exclusively for religious purposes, the same should be dropped from the list of taxable properties and entered into the exempt roll of real properties. Attached is a copy of our 3rd Indorsement dated October 5, 1998, treating on the same subject matter for your ready reference. cEaACD Report of action taken hereon is requested within ten (10) days from receipt hereof. (SGD.) MA. PRESENTACION R. MONTESA Executive Director