Bureau of Local Government Finance Opinion

May 29, 1997 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned, thru the Municipal Treasurer, to the Sangguniang Bayan Secretary, Titay, Zamboanga del Sur, his within letter dated October 11, 1996, addressed to the Honorable Secretary, Department of the Interior and Local Government, relative to the attached Resolution No. 563, series of 1996, of the Sangguniang Bayan thereat requesting legal opinion as to the authority of the Sangguniang Bayan to grant tax exemption/amnesty. The request is made in view of Resolution No. 16, series of 1996, of Barangay Tugop Muslim requesting the Sangguniang Bayan to enact measures granting tax amnesty on real property taxes in said barangay being delinquent for ten (10) years for reasons of civil disturbance, natural calamities and adverse economic condition. In this connection, it is informed that the appropriate provisions that apply to condonation of delinquent real property taxes and penalties or interest is Article 367 (not Article 282 mentioned in Resolution No. 16) implementing Section 276 of the Local Government Code of 1991 (R.A. 7160), quoted hereunder: "ART. 367. Condonation or Reduction of Real Property Tax and Interest . In case of a general failure of crops or substantial decrease in the price of agricultural or agribased products, or calamity in any province, city, or municipality, the sanggunian concerned, by ordinance passed prior to the first (1st) day of January of any year and upon recommendation of the Local Disaster Coordinating Council, may condone or reduce, wholly or partially, the taxes and interest thereon for the succeeding year or years in the city or municipality affected by the calamity. (Emphasis supplied) On the basis of the above provisions, it is clear that the sanggunian concerned may enact an ordinance granting condonation or reduction of real property taxes and interest thereon upon occurrence of the events mentioned. However, the real property tax is a provincial tax imposed by the Sangguniang Panlalawigan. Therefore, the grant of any condonation or reduction of real property taxes or interest thereon should emanate from the province, through an ordinance duly enacted by the Sangguniang Panlalawigan for the purpose. The Sangguniang Bayan of Titay does not have the authority to enact such an ordinance. For further information, it is only the Sangguniang Bayans of the municipalities of Metropolitan Manila that are, under the Code, empowered to do so. It is hoped that this will help clarify matters. TAIESD (SGD.) LORINDA M. CARLOS Executive Director