Bureau of Local Government Finance Opinion

May 25, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The City Assessor Manila M a d a m : This refers to the letter dated January 7, 2000 of that Office requesting assistance in the proper valuation of real properties located in the reclaimed area thereat, particularly those in the New Harbor Centre, for real property tax purposes. The representatives of this Bureau who coordinated with that Office on the matter advanced that, apparently, the abovementioned request was prompted by the proposal made to the former Officer-in-Charge of that Office, Ms. R.D. Evangelista, transferring the tax declaration covering a real property situated at New Harbor Centre. In the proposal, the assessment shall become taxable as of the 1st day of January following the year when the same was acquired from NHA; and the unit value thereof is maintained as in the previous assessment when the same was then assessed as "exempt." Clarification is thereby sought on the latter issue, i.e., whether they can change the applicable unit value over the same property upon issuance of a "transfer tax declaration" in favor of the new declarant. A verification of the approved SMV for Manila showed that no specific unit value is indicated for the subject area considering that the same (SMV) was prepared/approved and enacted into an ordinance when the said area was not yet fully reclaimed. As gathered, the unit values applied in the initial assessment of the subject real properties were based on similar real properties within the jurisdiction of the city of Manila in consonance with Item 13, of "ON LANDS" of the General Provisions contained in the approved SMV for Manila, which provides: "13. As far as properly applicable, this schedule of base market values shall be controlling, that where the property to be assessed is of a kind not classified in this schedule or of any kind for which a value is not herein fixed, it shall be appraised at the current and fair market value, independently of this schedule." It has been noted that, under the attached tax declarations, similarly transferring different parcels of lands from NHA to taxable persons, that Office had consistently maintained the unit values thereof, purportedly for reason that no specific unit value therefor is indicated in the SMV to be applied. In view of the foregoing, this Bureau finds no legal impediment in the position taken by that Office in momentarily maintaining the same valuation of properties located within the New Harbor Centre whenever transfers of tax declarations are requested by buyers, pending establishment of a specific unit value therefor in the SMV for Manila. AcISTE Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge