Province of Abra v. Hernando

Province of Abra v. Hernando

G.R. No. L-49336 August 31, 1981

Fernando, C.J.

Facts:

                The provincial assessor made an assessment on the properties of the Roman Catholic Bishop of Bangued. The bishop claims tax exemption from real estate tax, through an action for declaratory relief. A summary judgment was made granting tax exemption without hearing the side of the Province of Abra.

Issue:

                whether or not the properties of the Bishop of Bangued are exempt from tax

Held:

                The 1935 and 1973 Constitutions differ in language as to the exemption of religious property from taxes as they should not only be exclusively but also actually and directly used for religious purposes. Herein, the judge accepted at its face the allegation of the Bishop instead of demonstrating that there is compliance with the provision that allows an exemption. There was an allegation of lack of jurisdiction and lack of cause of action, which should have compelled the judge to accord a hearing to the province rather than deciding the case immediately in favor of the Bishop. Exemption from taxation is never presumed, so that if granted it must be strictly construed against the taxpayer. There must be proof of the actual and direct use of the land, buildings, and improvements for religious (or charitable) purposes to be exempted from taxation.

                The case was remanded to the trial court for trial on the merits.