Bureau of Local Government Finance Opinion

May 2, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Hon. Alfredo G. Maraon, Jr. Congressman, 2nd District, Negros Occidental Rm 211 South Wing, House of Representatives Congress of the Philippines Constitution Hills, Diliman, Quezon City S i r : This refers to your letter dated November 9, 1999, addressed to the Honorable Secretary, Department of Finance, concerning 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." The Provincial Assessor, that province, in her 3rd Indorsement dated January 10, 2000, informed this Bureau that the said ordinance was enacted in accordance with the existing law, rules and regulations pertaining to real property tax assessments and no provisions thereof are detrimental to the Negrenses that changed the substance of existing real property tax regime. It is also informed that the said general revision of real property assessments conducted for the entire Province of Negros Occidental could, therefore, be considered to have been in substantial compliance with the provisions of Sections 212 and 219 of R.A. No. 7160, otherwise known as the Local Government Code of 1991. However, 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 of the said ordinance does not conform with the principle of "actual use" of real property under Section 217 of the Code, 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, the said Provincial Assessor, thru the Regional Director for Local Government Finance, Region VI, has been advised, under our 5th Indorsement of the same date, copy enclosed, to make representations 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. HIACac Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge