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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;
(b) All charitable institutions, churches, parsonages or convents
appurtenant thereto including mosques, nonprofit or religious cemeteries
and all lands, buildings, and improvements which are actually, directly
and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and
exclusively used by local water districts and government-owned or
controlled corporations engaged in the supply and distribution of water
and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as
provided under RA 6938; and
(e) Machinery and equipment exclusively used for pollution
control and environmental protection.
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corporations are hereby withdrawn upon the effectivity of this Code.
Apparently, the Code already enumerated categorically the real properties that should be granted
exemption from real property taxes. Thus, the basic principle of what is not included is deemed
excluded should apply. LGUs do not have the authority to grant exemption from real property
taxes, those which are not expressly exempted by the governing law, otherwise they will be
exercising the power of amending laws or Acts enacted by Congress.
In view thereof, the Bureau holds that the grant of real property tax exemption under the aforesaid
Sec. 17(A) of the Local Incentive Code of the City of Cabadbaran is without legal basis. However,
the said comments made are not a declaration of the nullity or illegality of the Local Investment
Incentive Code for reason that such function falls exclusively within the jurisdiction of the DOJ.
Hence, unless said ordinance is declared by competent authority as illegal or unconstitutional, the
City Treasurer of Cabadbaran has no alternative but to implement the provisions thereunder.