Central Azucarera de Bais, Inc. v. City Assessor of Bais City

[CBAA CASE NO. V-09. July 16, 1998.] CENTRAL AZUCARERA DE BAIS, INC. , petitioner-appellant , vs. LOCAL BOARD OF ASSESSMENT APPEALS OF BAIS CITY , appellee , CITY ASSESSOR OF BAIS CITY , respondent-appellee . RESOLUTION This is a motion dated February 24, 1997 by Petitioner-Appellant seeking reconsideration of this Board's Decision dated November 7, 1996. Petitioner-Appellant Central Azucarera de Bais, Inc. alleged that it received the said decision on February 19, 1997. This motion seeks the reconsideration of this Board on the following matters, to wit: 1. The valuation of Lot No. 788-B-1-A under Tax Declaration No. 6-323 and Lot No. 788-B-1-B under Tax Declaration No. 6-320; and 2. The non-exemption of the land converted to or utilized as Water Treatment Facilities. To recall, the assessment on Lot Nos. 788-B-1-A and 788-B-1-B complained of by Petitioner-Appellant were as follows: Lot No. 788-B-1-A, TD #6-326 Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-C 7,155 P110 -40% P472,230 50% P236,115 Industrial 3-G 18,413 110 -85% 303,815 50% 151,907 Ind-Agric'l. 3-G 121,888 110 -85% 2,011,152 40% 804,460 Ind-Resid'l. 3-E 13,295 110 -70% 438,735 20% 87,747 Asphalt Road 7,432 260 1,932,320 50% 966,160 Gravel Road 10,582 160 504,000 50% 252,000 Ind-Recre'l. 3-F 1,071 110 -80% 23,562 15% 3,534 Ind-Medical 3-G 3,487 110 -85% 57,536 15% 8,630 Totals 175,891 P5,743,349 P2,510,555 ======= ========= ========= Lot No. 788-B-1-B, TD #6-320 Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-A 22,225 P110 P2,444,750 50% P1,222,375 Industrial 3-C 30,585 110 -40% 2,018,610 50% 1,009,305 Ind-Agric'l. 3-G 25,283 110 -85% 417,170 50% 208,585 Ind-Resid'l. 3-E 501 110 -70% 16,533 20% 3,307 Ind-Recre'l. 3-F 791 110 -80% 17,402 15% 2,610 Asphalt Road 1,052 260 273,520 50% 136,760 Gravel Road 1,410 160 225,600 50% 112,800 Railroad Tracks 826 160 132,160 50% 66,080 Totals 82,673 P5,545,745 P2,761,820 ======= ========= ========= This Board, in its Decision dated November 7, 1996, ordered that the assessments of the same lots be corrected as follows: Lot No. 788-B-1-A, TD #6-236 Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-C 7,155 P110 -40% P472,230 50% P236,115 Industrial 3-G 18,413 110 -85% 303,815 50% 151,907 Ind-Agric'l. 3-G 121,888 110 -85% 2,011,152 40% 804,460 Ind-Resid'l. 3-E 13,295 110 -70% 438,735 20% 87,747 Gravel Road 10,582 160 1,693,120 50% 846,560 Ind-Recre'l. 3-F 1,071 110 -80% 23,562 15% 3,534 Ind-Medical 3-G 3,487 110 -85% 57,536 15% 8,630 Totals 175,891 P5,000,149 P2,138,950 ======= ========= ========= Lot No. 788-B-1-B, TD #6-320 Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-A 22,225 P110 P2,444,750 50% P1,222,375 Industrial 3-C 30,585 110 -40% 2,018,610 50% 1,009,305 Ind-Agric'l. 3-G 25,283 110 -85% 417,170 50% 208,585 Ind-Resid'l. 3-E 501 110 -70% 16,533 20% 3,307 Ind-Recre'l. 3-F 791 110 -80% 17,402 15% 2,610 Gravel Road 2,462 160 393,920 50% 196,960 Railroad Tracks 826 160 132,160 50% 66,080 Totals 82,673 P5,440,545 P2,709,220 ====== ========= ========= This Board was concerned only with the classification and unit valuation of the portions of the parcels of land classified by Respondent Appellee as "asphalt roads". Other matters affecting the same parcels of land were not in issue. A re-examination of the records, however, reveals that the Local Board, on page 17 of its decision dated February 24, 1995, stated that "On Lots 788-B-1-A (TD No. 6-323) and 788-B-1-B (TD No. 6-320), the Board resolves to direct the City Assessor "to make a re-assessment of these two parcels of land based on the correct unit value considering that these lands do not adjoin the national highway." The records do not show that the City Assessor had complied with this directive at the time the Central Board made its decision, although the Local Board did not exactly define the correct unit values applicable to the lots in question. HTcADC " Respondent-Appellee City Assessor prepared on August 27, 1992 a "Schedule of Market Values" (pp. 171-241, Records) which he submitted to the City Council of Bais City for approval. It (Schedule of Market Values) states on Page 5 thereof that "lands used or to be converted into industrial use which are adjoining or abutting the National Highway x x x" shall have a market value of P110 per square meter effective 1989-90 and "lands used or to be converted into industrial use which are located within three (3) kilometers from the National Highway x x x" shall have a market value of P80 per square meter, also effective 1989-90. On pages 7 and 8 of the same Schedule of Market Values the procedure for the appraisal of industrial lands was laid down as follows: "(a) All lands within the mill site occupied by and within 0 meters from the outside walls of the mill buildings of sugar centrals, lumber mill, or other industrial establishments shall be assessed at 100% of the applicable rate of base market value prescribed in this schedule of values. By mill buildings are meant those which house the power plant, the boiler and other mechanical instruments and devices which form parts of the main machine that runs the sugar, lumber and other industrial mills. "(b) All lands within the mill site occupied by and within 20 meters from the outside walls of the electric plants, carpentry and foundry shops, etc., which form separate units of the main machine or the sugar, lumber and other industrial mills shall be assessed at 80% of the applicable rate of base market value prescribed in this schedule. "(c) All lands within the mill site occupied by and within 20 meters from the outside walls of the administration buildings, bodegas, store and tool houses, etc., of sugar centrals, lumber mills and other industrial establishments, shall be assessed at 60% of the applicable rate of base market value prescribed in this schedule. "(d) All lands used as loading and unloading stations and yards where trains, railroad cars and rolling stock are kept and stored, shall be assessed at 40% of the applicable rate of base market value prescribed in this schedule. "(e) All lands within the mill site occupied by or within 20 meters from residential buildings, shall be assessed at 30% of the applicable rate of base market value prescribed in this schedule. "(f) All lands within the mill site used as caps, plaza or parks, shall be assessed at 20% of the applicable rate of base market value prescribed in this scheduled. "(g) All other industrial lands within the mill site not described above shall be assessed at 10% of the applicable rate of base market value prescribed in this schedule. "(h) All lands used as railroad tracks or roads shall be valued at 30% of their total estimated cost per square meter." Under the same Schedule of Market Values, General Provision Nos. 4 and 5 thereof (p. 238, Records) state: "4. Roads or streets in the urban sub-division or agricultural lands converted to sub-division, unless already donated and turned over to the government, shall be listed separately as taxable in the name of the subdivision owner and shall be value on the basis of the cost of cementing, asphalting and paving with gravel and sand. An estimate of such cost in square meter shall be appraised at 20% of their total estimated cost. "5. Assessment level to be applied to the current market values shall be twenty per cent (20%) for residential lands, forty per cent (40%) for agricultural lands, fifty per cent (50%) for commercial, industrial, agro-industrial and mineral lands covered by leases, and twenty per cent (20%) for timberland." aScITE Thus, Respondent-Appellee City Assessor applied the assessment level of twenty percent (20%) on the market values of the gravel-surfaced roads located in Bgy. Calasga-an, Bais City under Tax Declaration Nos. 6-386 and 6-342, both effective 1994. It is interesting to note that Lot Nos. 788-B-1-A and 788-B-1-B, under TD Nos. 6-326 and 6-320, respectively, where the assessment level of fifty percent (50%) was originally applied by the City Assessor to the market values of the road and railroad portions thereof, are also located in Bgy. Calasga-an. IN VIEW OF THE FOREGOING, the Decision of this Board dated November 7, 1997 is hereby MODIFIED such that the assessments on Lot Nos. 788-B-1-A and 788-B-1-B under Tax Declaration Nos. 6-326 and 6-320, respectively, both effective January, 1994, be revised as follows: Lot No. 788-B-1-A, (TD #6-326): Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-C 7,155 P110 -40% P343,440 50% P171,720 Industrial 3-G 18,413 110 -85% 220,956 50% 110,478 Ind-Agric'l. 3-G 121,888 110 -85% 1,462,656 40% 585,062 Ind-Resid'l. 3-E 13,295 110 -70% 319,080 20% 63,816 Gravel Road 10,582 160 -70% 507,936 50% 101,587 Ind-Recre'l. 3-F 1,071 110 -80% 17,136 15% 2,570 Ind-Medical 3-G 3,487 110 -85% 41,844 15% 6,277 Totals 175,891 P2,913,048 P1,041,510 ======= ========= ========= Lot No. 788-B-1-B, TD #6-320 Classification Class Area (Sq.M.) Unit Value Adj. Market Value Ass. Lvl Assessed Value Industrial 3-A 22,225 P110 P1,778,000 50% P889,000 Industrial 3-C 30,585 110 -40% 1,468,080 50% 734,040 Ind-Agric'l. 3-G 25,283 110 -85% 303,396 50% 151,698 Ind-Resid'l. 3-E 501 110 -70% 12,024 20% 2,405 Ind-Recre'l. 3-F 791 110 -80% 12,656 15% 1,898 Gravel Road 2,462 160 -70% 118,176 50% 23,635 Railroad Tracks 826 160 -70% 39,648 50% 7,930 Totals 82,673 P3,731,980 P1,810,610 ====== ========== ========= There appears no cogent or compelling reason to disturb our decision as regards Ruling No. 8 of the Local Board. SO ORDERED. Manila, Philippines, July 16, 1998. (SGD.) MARGARITA G. MAGISTRADO Chairman (SGD.) ANGEL P. PALOMARES Member (SGD.) BENJAMIN M. KASALA Member