Aquino, Provincial Treasurer and Municipal Treasurer
Patricia Jillianne Degollado
Relevant FACTS + 1.
Petitioner Abra Valley College seeks the
annulment of the notice of seizure and sale by Respondents Provincial and Municipal Treasurer
2.
The property of Abra Valley College was to be
seized because of its alleged non-payment of realty taxes.
3.
Petitioner claims that it should be exempt from
tax because the building and lot is used for educational purposes.
4.
Trial court found that the Director of the
College and his family resides in the 2nd floor
5.
Hon. Aquino of the trial court ruled that Abra
Valley College shall not be exempt from the payment of the realty taxes because of the
+ Relevant ISSUE Whether
or not Abra Valley Colleges property
should be exempt from realty tax
+ Relevant ARGUMENTS Petitioner
Abra Valley College:
The building and the lot is primarily used for
educational purposes. It is the primary use and not the incidental use which determines exemption from property taxes under Sec. 22 (3), Art. VI of the 1935 Constitution
Respondents
Municipal and Provincial Treasurer:
The constitution provides that the exemption from realty
taxes of all lands, buildings, and improvements applies only if such are exclusively used for educational purposes It was found out that the 2nd floor of the building is used as residence of the Director of the school and his family and the ground floor is being rented by a commercial establishment.
Relevant DOCTRINE or PRONOUNCEMENT Sec.
22 (3) of the 1935 Constitution expressly
grants exemption from realty taxes for all lands, buildings, and improvements used exclusively for religious, charitable or educational purposes
Bishop
of Nueva Segovia v. Provincial Board:
The term used exclusively also considers
incidental use.
The exemption provided in Art. VI, Sec. 22(3)
of the 1935 Constitution extends to facilities which are incidental to and reasonably necessary for the accomplishment of the
+ Relevant DECISION The
use of the building for commercial purposes is
neither incidental nor reasonably necessary for the accomplishment of the main purpose of the school.
The
use of the 2nd floor for residential purposes of
the Director and his family may be justified as an incidental use complimentary to its main purpose.
The
building should be taxed, not because the
2nd floor is used for residential purposes but because the 1st floor is used for commercial purposes. However, it is fair that half of the assessed tax be returned to the school.