Bureau of Local Government Finance Opinion

January 17, 2006 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned to the Regional Director for Local Government Finance, Department of Finance, Region VI, 2nd Floor, Philippine Veterans Bank Building, corner Valeria and Delgado Street, Iloilo City, the herein 1st Indorsement dated October 11, 2005 of Ms. Myrna M. Ledesma, Incharge of Office, Office of the City Treasurer of Victorias City, Negros Occidental, requesting opinion pertinent to the letter of Ms. Elena M. Locsin, OIC Cluster Unit of Social Security System (SSS), Western Visayas Cluster, Bacolod Hub Branch, reiterating their claim for exemption from the payment of real property taxes of their acquired assets. In this connection, attention is invited to the 1st Indorsement dated June 17, 1997, copy enclosed, of this Bureau, treating on a similar subject matter, which ruled in part, to wit: "In view thereof, this Bureau believes and so holds that, considering the similarity of the exemption provisions of the GSIS charter and that of the SSS law, that requires the 'exemption to continue . . . unless expressly and specifically revoked,' the tax exemption privileges granted to the real properties of SSS could not have also been affected notwithstanding the provisions of Sections 234 and 534(f) of the Local Government Code of 1991. "The tax exemption privilege therefore of the SSS shall continue unless expressly and specifically revoked, provided, however, that: (1) the beneficial use of the subject properties has not been let for consideration or otherwise to a taxable person pursuant to Section 234(a) of the Code; and (2) the acquired or foreclosed properties and assets not yet titled in the name of SSS shall be declared as taxable." Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director