Bureau of Local Government Finance Opinion

July 10, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Officer-In-Charge City Assessor's Office City of Manila M a d a m : This refers to your letter dated April 23, 2001, requesting reconsideration of the BLGF's opinion as contained under its letter dated November 15, 2000, regarding the exemption from payment of real property taxes of Systems Technology Institute (STI) and AMA, both computer educational institutions. It may be recalled that this Bureau under the abovementioned letter ruled that "inasmuch as the exemption extends to all lands, buildings and improvements actually, directly and exclusively used for educational purposes pursuant to Section 234 (a) and Section 28 (3), Article VI of the Constitution, the subject computer owned by STI and AMA Computer schools, are likewise exempt from the payment of real property tax, notwithstanding the Joint Local Treasury Assessment Regulations (JLTAR) No. 1-88 dated May 4, 1988 of the Department of Finance (DOF). It appears that the request of STI and AMA for exemption from real property taxes had been previously denied by that Office invoking Section 3 of the Joint Local Treasury/Assessment Regulations No. 1-88 dated May 4, 1988 of the Department of Finance (DOF). cCTaSH It is submitted that that Office even cited the previous ruling of this Bureau under its 1st Indorsement dated December 6, 1999 emphasizing that although Section 2 of JLTAR provides that all lands, buildings and improvements actually, directly and exclusively used for religious, charitable or educational purposes shall, effective January 1, 1988, be declared exempt as provided under Sec. 28 (3), Article VI of the 1987 Constitution, Section 3 of the same Regulations also provides that the exemption from real property tax shall not include machineries even if these are actually, directly and exclusively used for religious, charitable or educational purposes. In view of all the foregoing explanations, and considering that the abovementioned November 15, 2000 letter of this Bureau has failed to take into account the foregoing concerns and the representations received on the subject matter, this Bureau is therefore, hereby inclined to reconsider its previous opinion as contained in its said letter to that Office. Consequently, the computers owned by STI and AMA Computer schools are considered as machineries subject to real property taxes as contemplated under Section 199 (o) of the Local Government Code of 1991, and implemented under Article 290 of its Implementing Rules and Regulations (IRR). Be guided accordingly. Very truly yours, (SGD.) BENJAMIN A. GERONIMO Executive Director