Revised Guidelines in the Disposal and/or Destruction of Court Records, Papers and Exhibits

April 9, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned to the Regional Director for Local Government Finance, Department of Finance, Region II, 17 Provincial Road Caritan Sur, Tuguegarao City, his within preceding Indorsement dated August 20, 2001 relative to the 1st Indorsement dated June 14, 2001 of the Provincial Assessor of Batanes, concerning the request of the Municipal Assessor of Sabtang, same province, for clarification on whether or not the Communal Pasture land is subject to the payment of real property tax. The Municipal Assessor of Sabtang, in his letter dated May 18, 1999 informed that the whole Island of Ivujos is occupied and utilized by the Ivujos Cattle Raisers Association as grazing of livestock for domestic purposes. It is also submitted that the subject land is declared by the said Municipal Assessor as tax exempt since then contending that the exemption is in view of the provisions of the revised Communal Pasture Regulations under Forestry Administrative Order No. 3-1, series of 1941 dated July 1, 1941 which states "that the Communal Pasture Land is free of charges for grazing of livestock raised and maintained for domestic purposes by the residents of the municipality for which the Communal Pasture is established." A perusal of the DENR Administrative Order No. 99-36 entitled: "Revised Rules and Regulations Governing the Administration, Management, Development and Disposition of Forest Lands used for Grazing purposes" reveals that there is no specific mention concerning tax incentives, granted for the use of forest land by taxable persons. This Bureau believes that the communal pasture land is not exempt from real property tax because the relevant provisions of the revised Communal Pasture Regulations under forestry Administrative Order No. 3-1, series of 1941 does not provide exemption from payment of real property tax. The provision of the Communal Pasture Regulations cited by the municipal assessor to sustain the tax exempt status of the communal pasture land exempts the communal pasture land from " charges for grazing of livestock raised and maintained for domestic purposes" only. It should be pointed out that a charge is not necessarily a tax. But even if the term "charges" is taken to mean "taxes", still the communal pasture land is not exempt from real property taxes because then only such charges related to grazing of livestock were eliminated. For lack of legal basis to support it, the tax exemption referred to by the municipal assessor cannot be sustained. It must be remembered that exemption from taxation is construed strictly against exemption. Hence, exemption must be anchored firmly on an express provision of law. Relatedly, attention is invited to Section 234 of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which provides as follows: "Section 234. Exemptions from Real Property Tax . The following are exempted from payment of the real property tax: "(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;" "xxx xxx xxx "Except as provided herein, any exemption from payment of real property tax previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including all government-owned or controlled corporations are hereby withdrawn upon the effectivity of this Code." Granting therefore but not admitting that the tax exemption has indeed been previously granted on the subject real properties, the abovecited provision of R.A. No. 7160 has therefore effectively withdrawn the same upon its effectivity in 1992. Moreover, attention is invited to Section 534(f) of R.A. No. 7160, which reads as follows: "Sec. 534. Repealing Clause . "xxx xxx xxx "(f) All general and special laws, acts, city charters, decrees executive orders, proclamation and administrative regulations, or part or parts thereof which are in consistent with any of the provisions of this Code are hereby repealed or modified accordingly." In view of the foregoing, and considering that the subject land is actually used by taxable persons (Cattle Raisers Association of Ivujos) for livestock grazing, this Bureau believes and so holds that the communal pasture land is subject to real property taxes. ASaTHc Be guided accordingly. (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF