Abra Valley College vs. Aquino, 162 SCRA 106 (1988)

Abra Valley College vs  Aquino, 162 SCRA 106 (1988)

FACTS:

• Abra Valley College Inc. filed a petition to annul and declare void the “Notice of Seizure” and “Notice of Sale” of its lot and building for non-payment of real estate taxes and penalties.
• Said school also (1) housed elementary pupils in a two-story building across the street and (2) that the high school and college students are housed in the main building and (3) that the director with his family is in the second floor of the main building.
• Abra Valley contends that the primary use of the lot and the building is for educational purposes making it exempt from property taxes under the Constitution
• Respondents maintain that the such was subjected to seizure and sale to answer for the unpaid tax are used for (1) educational purposes,(2) as the permanent residence of the president and director and his family including the in-laws and grandchildren and (3) for commercial purposes because the ground floor of the college building is being used and rented by commercial establishment, the Northern Marketing Corporation

 
ISSUE: 
Whether the lot and building and questionnaire used exclusively for educational purposes.
 
RULING:
 No.
The exemption in favor of property used exclusively for charitable or educational purposes is not limited to property “actually indispensable” but extends to facilities which are incidental to and reasonably necessary for the accomplishment of said purposes. The test of exemption from taxation is the use of the property for purposes mentioned in the Constitution. The phrase “exclusively used for educational purposes” has always been made that exemption extends to facilities which are incidental to and reasonably necessary for the accomplishment of the main purposes.
 
The second floor being used for residential purposes of the director and his family may be justified but the list of the first floor thereof to Northern Marketing Corporation cannot by any stretch of imagination be considered incidental to the purpose of education However, since only a portion is used for purposes of hammers it is only fair that half of the assessed tax be returned to the school involved