Professional Documents
Culture Documents
x x x.
2. Machinery that is not permanently attached to real estate is:
a. Subject to the real property tax if it is an essential and principal
element of an industry, work or activity without which such industry, work
or activity cannot function; (underlining supplied)
b. Not subject to the real property tax if it is not an essential and
principal element of an industry, work or activity.
In view thereof, this Bureau believes that machineries of JVG Aqua Crystal Refilling Center
such as water purifying equipment and apparatus which are being used actually, directly and
exclusively in the business of purified drinking water fall within the definition of Machinery and
considered real property subject to real property tax. This Bureau accordingly finds the action
of the Provincial Assessor of Zamboanga Sibugay in imposing real property tax to the subject
machineries of JVG Aqua Crystal Refilling Center, to be in order.
Similarly, therefore, the equipment being utilized by the water refilling stations thereat in
purification process fall within the definition of machinery and considered real property subject to
real property tax.
Likewise, the printing and developing machine owned by Marinduque Photo Center is a taxable
real property considering that the same falls within the definition of Machinery without which, the
work or activity of the said photo center cannot function, and therefore, an essential and principal
element of the business of photography.