Bureau of Local Government Finance Opinion

October 5, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned to the City Assessor, City of Manila, the within preceding Indorsement dated August 20, 1998, requesting legal opinion relative to the letter dated August 17, 1998 of Atty. Restituto S. Lazaro, Counsel for Iglesia ni Cristo (INC), for reconsideration of the opinion rendered by that Office on August 10, 1998. Subject property is identified as Lot 5-A, Block 383, declared under TD No. 13-73-088 and covered by Title No. 151164 located at No. 1012 J. L. Escoda, Malate, owned by, and registered in the name of, Iglesia ni Cristo (INC). That Office, in its letter dated August 10, 1998, denied the above request for exemption by citing Section 217 of R.A. No. 7160, also known as the Local Government Code of 1991, which states that "real property shall be classified, valued and assessed on the basis of its actual use regardless of where located, whoever owns it and whoever uses it." That Office further informed that per ocular inspection conducted by its field appraiser, the subject property was found to be actually used for residential purposes and was subsequently classified by that office as residential/commercial. However, in his letter of August 17, 1998, Atty. Lazaro contended that the subject property is "used exclusively, actually and directly by a religious corporation" and therefore, the valuation and assessment of the subject property based on the principle of actual use is inapplicable. Further, Atty. Lazaro invoked the provision of paragraph 3, Section 28, Article VI of the Philippine Constitution and Section 234 of the Local Government Code of 1991, which provide as follows: 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, R.A. No. 7160 : "Sec. 234. Exemptions from Real Property Tax . The following are exempted from 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. "xxx xxx xxx." Atty. Lazaro alleged that the appraiser who conducted the ocular inspection did not bother to verify or check who actually reside in the subject property. What he reported was that it is really used for residential purposes. This Bureau may not have verified whether the subject property is indeed occupied and/or being used to house the Minister of the Iglesia ni Cristo, who is assigned in the locale of Paco as what Atty. Lazaro claims it to be. However, if indeed it is really being used to house the Minister of the Iglesia ni Cristo for the said locale, then the subject property is considered as a "parsonage", which is defined by Webster's Encyclopedia Dictionary as "the residence of a person or clergyman, as provided by the parish or church," and, therefore, could qualify for real property tax exemption under the abovequoted provisions of the Constitution and R.A. No. 7160. CAacTH Accordingly, that Office should first verify the veracity of the abovementioned claim that the subject real property is used as a parsonage of the Minister of the Iglesia ni Cristo in the locale of Paco. In the affirmative, the subject property should then have to be dropped from the list of "taxable roll" and entered into the list of "exempt roll" of real properties. Report of action taken hereon is requested within five (5) days from receipt hereof. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge