Enjoining All Officials and Employees of the National Government, and LGUs to Support the Observance Of Climate Change Consciousness Week

March 4, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Avelino A. Silao, Jr. Chief, Field Operations Division Office of the Provincial Assessor Cabarroguis, Quirino S i r : This refers to your letter dated 19 September 2002 requesting opinion and/or ruling for the resolution of the following issues: 1. Whether or not the Quirino Electric Cooperative, Inc. (QUIRELCO),is included as petitioner or a party to the TRO issued by the Supreme Court; 2. Whether or not QUIRELCO is liable to pay real property tax to the Province of Quirino per certification of the Cooperative Development Authority of Manila; 3. Whether the Province of Quirino shall DESIST from implementing the questioned provisions of Sections 193 and 234 of RA No. 7160. Anent Query No. 1, this Bureau holds the view that QUIRELCO is not included as Petitioner or a party to the Temporary Restraining Order (TRO) issued by the Supreme Court on 25 July 2000, as said TRO will affect only the parties to the case. Since QUIRELCO is not one of the parties cited in, it logically follows that it is not covered by the said TRO. With respect to the second issue, QUIRELCO is liable to pay real property tax to the LGU of Quirino. In his letter of 08 June 2001, the Director, Legal and Registration Department of the Cooperative Development Authority (CDA) through Atty. Rogelio P. Madriaga, informed that "QUIRELCO is not a duly registered cooperative with CDA and therefore cannot enjoy the privileges granted by law (R.A. No. 6938) to cooperatives." Further, Section 234 of the Local Government Code specifically enumerates the exemption from the payment of real property tax, as follows: "Section 234. Exemption from Real Property Tax. The following are exempted from payment of the real property tax: "xxx xxx xxx" "(d) All real property owned by duly registered cooperatives as provided for under R.A. 6938;" "xxx xxx xxx" The aforecited provision of Section 234 of the LGC mandates that the tax exemption shall only be granted to cooperatives duly registered with the CDA. Since QUIRELCO is not a duly registered electric cooperative with the CDA, as certified to by Atty. Madriaga of the CDA, the said electric cooperative shall be liable to pay the real property tax. TaISDA As regards the third and last issue and considering that Quirino Province is not a party to the TRO abovecited, and considering further that QUIRELCO has not been duly registered with the CDA, this Bureau believes that Quirino Province is not restrained from implementing the questioned provision of Section 234(d) of the LGC. We hope that this clarifies matters. Very truly yours, (SGD.) PRESENTACION R. MONTESA Executive Director