Bureau of Local Government Finance Opinion

November 16, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the City Assessor, City of Manila, her within preceding indorsement dated July 30, 1998, requesting opinion relative to the letter of Atty. Delfin N. Gramata, Counsel for Marmill Marketing Corporation, requesting certification that the properties owned by Marmill Marketing Corporation are exempt from the payment of real property taxes pursuant to Presidential Decree No. 2016. In his letter of July 24, 1998, Atty. Gramata contends that the three (3) hectares of land situated at Punta, Sta. Ana, Manila, covered by TCT Nos. 121572, 21573 and 121574 of the Registry of Deeds and declared under TD Nos. 96-00299, 96-00280 and 96-00231 are exempt from the payment of real property tax for the period from 1987 to the present, pursuant to Section 3 of Presidential Decree No. 2016, which provides as follows: "Section 3. Privately-owned land which has been identified and proclaimed as an Area for Priority Development under the ZIP in Metro Manila and SIR Program for the regional Cities shall be exempt from the payment of real estate taxes." (Emphasis supplied) The President of Balikatan sa Vulcan Homeowners Association, in his letter dated May 5, 1998, cited the subject Decree (PD 2016) as basis for requesting real property tax exemption. He further informed that Marmill Marketing Corporation, the registered owner of the subject properties, has finally agreed to sell these properties to the present occupants numbering about 700 families. Additionally, Atty. Gramata submitted that the National Housing Authority (NHA), under its 1st Indorsement dated May 15, 1998, copy attached, certified that the subject properties have been declared an Area for Priority Development (APD) under NHA Board Resolution No. 1245 dated April 14, 1987, copy also attached. In this regard, attention is invited to the provisions of the last paragraph of Section 234 and 534(f) of the Local Government Code of 1991, (R.A.) 7160, which provide as follows: "Section 234. Exemptions from Real Property Tax . The following are exempted from payment of the real property tax: "xxx xxx xxx "Except as provided herein, any exemption from payment of real property tax previously granted, or presently enjoyed by, all person, whether natural or juridical, including all government-owned or-controlled corporations is hereby withdrawn upon the effectivity of this Code." SIDEaA "xxx xxx xxx. "Section 534. Repealing Clause . . . . "xxx xxx xxx. "(f) All general and special laws, acts, city charters, Decrees, executive orders, proclamations and administrative regulations, or part or parts thereof which are inconsistent with any of the provisions of this Code are hereby repealed or modified accordingly." Obviously, not only exemptions from payment of real property tax previously granted to persons whether natural or juridical nor GOCC's have been withdrawn upon the effectivity of the Local Government Code of 1991, but also exemptions granted under the general and special laws, acts, charters, decrees like PD 2016, have also been deemed withdrawn and/or repealed upon the effectivity of the Code on January 1, 1992. Accordingly, the subject real properties are indeed exempt from real property taxes commencing in January 1988 in view of the aforequoted exemption provisions of PD 2016 and the NHA Board Resolution No. 1245, and in line with Article III(B)(2) of the Manual on Real Property Tax Administration in the Philippines, but the same shall become taxable beginning January 1992, the year the Local Government Code of 1991 took effect. Be guided accordingly. Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-In-Charge