DOJ Opinion No. 131, s. 1983

DOJ OPINION NO. 131 , s. 1983 August 22, 1983 The Acting President Mindanao State University Marawi City Sir : This pertains to your letter dated April 28, 1983, requesting for legal opinion regarding the "Notice of payment of 1% of Basic Real Property Tax and Additional 1% of Special Education Fund for the Year 1983" issued by the Treasurer of Islamic City of Marawi against the Mindanao State University (MSU). A reading of the aforestated notice reveals that the Islamic City of Marawi seeks to collect from MSU basic real property tax and special education fund tax for the year 1983 pursuant to P.D. No. 464 (The Real Property Tax Code) and R.A. No. 5447 (The Special Educational Fund Law), respectively, under pain of penalty for non-compliance therewith. prcd However, based on the findings of the Legal Services Division of MSU, it is the position of your Office that MSU is exempt from taxation considering the following, as summarized by this Office, in support thereof: 1. MSU is not an income generating corporation, therefore, any taxes levied upon it has to be paid from the funds provided by the government; 2. MSU used to be exempt from taxation under the Old Constitution, the reason, possibly, why its Charter did not provide that it be exempt from taxation; 3. MSU, being a non-profit educational institution, its properties and all improvements thereto shall, by analogy to the ruling in YMCA v. Coll., 33 Phil. 214, be exempt from taxation; and that 4. MSU, being a government institution, subsidized wholly by the government, must be exempt from taxation pursuant to 4th paragraph, Section 8, of P.D. No. 464. From the foregoing, it may thus be inferred that the query for which legal opinion of the Minister of Justice is desired is whether or not MSU is exempt from paying real property tax. This Office is constrained to refrain from expressing its views on your aforestated query. The query should be addressed to the Ministry of Finance which is the agency primarily charged with the enforcement, implementation and administration of the real property tax code. (see Section, 4, P.D. 464) The opinion of the Minister of Justice, being purely advisory, cannot prevail over the rulings that may be promulgated by the Minister of Finance on the matter. (see Opinions of the Secretary of Justice No. 64, s. 1972; and No. 72 s. 1983). For purpose of claiming tax exemption there is the procedure prescribed in Section 9 of P.D. 464 which provides as follows: "Sec. 9. Proof of Exemption of Real Property from Taxation . Every person by or for whom real property is declared, who shall claim tax exemption for such property under this Code shall file with the provincial or city assessor within thirty days from the date of the declaration of real property, sufficient documentary evidence in support of such claim, including corporate charters, titles or ownership, articles of incorporation, by-laws, contracts, affidavits and certifications and mortgage deeds and similar documents." "If the required evidence is not submitted within the period herein prescribed, the property shall be listed as taxable in the assessment roll. However, if it shall be proven to be tax-exempt the same shall be dropped from the roll of taxable properties." cdrep Very truly yours, For the Minister of Justice: (SGD.) JESUS N. BORROMEO Deputy Minister