Bureau of Local Government Finance Opinion

October 8, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Atty. Nicanor T. Santos Corporate Counsel Cotton Fields, (International) Inc. No. 11 Melbourne Street Merville Park, Paraaque City S i r : This refers to your letter dated May 10, 2001, relative to your basic letter dated December 4, 2000, for and in behalf of your Client, Cotton Fields (International) Inc., posing the following queries: a. Whether vacant lot without improvement should be assessed as commercial or residential; b. Whether road lot should be assessed as commercial and should be exempt from the payment of realty tax; and c. Whether the warehouse converted into residential should be assessed as commercial. Please be informed that query No. 1 pertains to the provisions of Section 11(D) of Assessment Regulations No. 1-92 dated October 6, 1992 of the Department of Finance which provides that: "vacant lands shall be classified, valued and assessed like similar land in the locality. Stated differently, vacant lands located in a predominantly commercial area shall be classified, valued and assessed as commercial, and similarly, vacant lands located in a predominantly residential or industrial area, as the case may be, shall likewise be classified, valued and assessed as such. Likewise, the said Regulations provides that roads or streets in urban subdivisions listed in the name of the subdivision owner, unless donated or turned over to the local government, shall be assessed at the rate not exceeding the assessment level applicable to lands located in the subdivisions. The observation therefore of the City Assessor of Malabon that road lots constructed by the company within its compound are not intended for public use and therefore taxable, is justifiable. Lastly, the City Assessor submitted that per investigation conducted, the buildings constructed on the lands of Cotton-Fields consists of commercial buildings and there was no truth to the allegation "that a building is being used as residential." This Bureau therefore accordingly confirms the opinion of the City Assessor of Malabon on the abovementioned queries, inasmuch as he informed that per Certification of the Acting Register of Deeds of that city dated July 16, 2001, no appeal has indeed been filed by you in behalf of your client, with the Register of Deeds thereat, in his capacity as the Chairman of the Local Board of Assessment Appeals of (LBAA) Malabon City. IDTSaC We hope that we have enlighten you regarding the issues you have raised. Very truly yours, (SGD.) BENJAMIN A. GERONIMO Executive Director