Bureau of Local Government Finance Opinion

October 5, 1999 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the Provincial Assessor of Negros Occidental, Bacolod City, the within letter dated September 6, 1999 of Atty. Lincoln L. Tan, Jr. of King Capuchino Tan and Associates, which, among other subject matters, is following-up the action taken on their letter dated October 10, 1995, concerning the alleged "excessive real property tax assessments made by the Municipal Assessor of Cauayan," thereat, on the real properties of their client, the Maricalum Mining Corporation. Atty. Tan claims that the said "excessive assessments" were due to the reclassification of MMC's lands in the said municipality into "industrial" "when only a portion thereof, approximately 4.258 hectares, is actually occupied by the generator and other structures of MMC, while the rest are either agricultural or cogonal." Moreover, the assessed value of the Sulzer generator set of MMC was, allegedly, increased by more than 250% in 1994, "which increase is unreasonable, excessive, confiscatory and beyond the financial capacity of the company." Records of this Bureau reveal that the herein issues raised by Atty. Tan are among the subject matters embodied under our 1st Indorsement dated November 27, 1995, which categorically stated, thus: "It likewise appears in the abovementioned follow-up letter of Atty. Tan that the assessment of MMC's real properties located at Cauayan, that province, similarly have the same deficiency as that of their real properties at Sipalay, which, allegedly, were also seen by the said representatives of this Bureau, who, upon this instance, affirmed the allegations and submitted that the only portion that is "actually used" for industrial purposes is the area where the power plant is located while the other portions are used either as residential with some cogonal portions, and roadlots. DHSaCA "In this connection, that Office is requested to conduct a similar review of the assessments made on the MMC's properties located in Cauayan in line with the findings and instructions embodied under the said 1st Indorsement of this Bureau . (Emphasis supplied) "Report of action taken hereon is requested within ten (10) days from receipt hereof." In view thereof, and considering the apparent failure of that Office to comply with this Bureau's request concerning the report on the "review of the assessments made on MMC's properties located in Cauayan in line with the said 1st Indorsement (dated September 26, 1995)," the submission of the said required report is hereby reiterated and should be forwarded to this Bureau within ten (10) days from receipt hereof. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge