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Abra Valley College v. Hon.

Aquino, Provincial Treasurer and
Municipal Treasurer

Patricia Jillianne Degollado

Relevant
FACTS
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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

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Relevant ISSUE
Whether

or not Abra Valley Colleges property

should be exempt from realty tax

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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

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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.