Comment on BLGF 2nd Indorsement dated June 3, 2002 addressed to Regional Director for Local Government Finance, Region II

June 3, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION MEMORANDUM FOR : Undersecretary Juanita D. Amatong FROM : Assistant Secretary Emmanuel P. Bonoan SUBJECT : Comment on BLGF 2nd Indorsement dated June 3, 2002 addressed to Regional Director for Local Government Finance, Region II This refers to your request for comments on the proposed 2nd Indorsement dated June 3, 2002 addressed to the Regional Director concerning the legality of the Municipal Ordinance passed by the Municipality of Quezon, Nueva Vizcaya imposing real property taxes on holders of Certificate of Stewardship Contracts. We have reviewed the Indorsement and found it to be in order. For your consideration. 2nd Indorsement Respectfully returned to the Regional Director for Local Government Finance, Department of Finance, Region II, Cagayan Provincial Road, 17 Caritan Sur, Tuguegarao, Cagayan, the within preceding Indorsement dated March 8, 2002, relative to the letter request of the Provincial Assessor of Nueva Vizcaya, which was not attached thereto, requesting clarification concerning the imposition of real property tax on lands located in the municipality of Quezon, which are covered by Certificates of Stewardship Contract (CSC), by virtue of Tax Ordinance No. 67 of the Sangguniang Bayan thereat. In this regard, it is informed that this Bureau fully concurs with the opinion of that Office that the imposition of real property tax is within the power of the Provinces, Cities and Municipalities within the Metropolitan Manila Area only, as provided for under Section 232, Title II, Book II of the Local Government Code of 1991 (R.A. No. 7160). This Bureau, therefore, believes that the imposition of real property tax under Municipal Ordinance No. 67 of the Sangguniang Bayan of Quezon is without legal basis. It is emphasized, however, that the above views are expressed in accordance with Article 287 of the Implementing Rules and Regulations (IRR) of the Code, and should not be construed as a declaration of the illegality/nullity of Municipal Tax Ordinance No. 67, s. 1994 for reason that such function falls exclusively within the jurisdiction of the Department of Justice (DOJ). CSAcTa We trust that this clarifies matters. (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF