Bureau of Local Government Finance Opinion

May 2, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 5th Indorsement Respectfully returned, thru the Regional Director for Local Government Finance, Department of Finance, Region VI, Iloilo Sports Complex, Lapaz, Iloilo City, to the Provincial Assessor of Negros Occidental, Bacolod City, the within set of papers relative to the recently enacted Negros Occidental Provincial Tax Ordinance No. 99-001, series of 1999, entitled "An Act Prescribing the Schedule of Current and Fair Market Values of Real Properties in the Municipalities of the Province of Negros Occidental and Other Provisions Relative to Real Property Tax Administration." In her 3rd Indorsement dated January 10, 2000, the said Provincial Assessor in effect argued that the said Ordinance has substantially complied with existing law, rules and regulations pertaining to real property tax assessments. AECcTS While this Bureau deems the justifications made by the said Provincial Assessor in her abovementioned 3rd Indorsement to be in order, it has been observed that Item No. 1 of the Miscellaneous Provisions thereof does not conform with the principle of "actual use" of real property as provided for under Section 217 of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which reads: "SEC. 217. Actual Use of Real Property as Basis for Assessment . 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." Accordingly, representations should be made before the Sangguniang Panlalawigan of that province for the immediate rectification of the said Item No. 1 of the Miscellaneous Provisions of the subject Ordinance in order that the same shall conform with the said Section 217 of the Code. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge