Real estate exempt from taxation.
Section 39
SEC. 39. Real estate exempt from taxation.—The following shall be exempted from taxation: (a) Land or buildings owned by the Republic of the Philippines, the Province of Rizal or the City of Caloocan and burying grounds, churches, and adjacent parsonages and convents, and lands or buildings used exclusively for religious, charitable, scientific, or educational purposes, and not for profit; but such exemption shall not extend to lands or buildings held for investments, though income therefrom be devoted to religious, charitable scientific, or educational purposes; (b) When the entire assessed valuation of real property belonging to a single owner is not in excess of two hundred pesos or when the assessed value of a house, used as residence of the owner thereof, together with the lot on which the same is built, does not exceed four hundred pesos and such owner has no other real property, the tax thereon shall not be collected, nor shall the tax be collected on a dwelling house built on the field, on an adjacent orchard if any, as improvement, if the assessed value of each, assessed separately, is not in excess of two hundred pesos, though in any event the property shall be valued for the purposes of assessment and record shall be kept thereof as in other cases; (c) Machinery, which term shall embrace machines, mechanical contrivances, instruments, appliances, and apparatus or implements intended by the owner for an industrial, agricultural, or manufacturing purposes carried on in a building or on a piece of land, though not attached to the real estate property but which tend directly to meet the needs of the said industry or works, during the first five years of the operation of the machinery. The provisions hereof notwithstanding, depreciation allowance shall be made for the machinery mentioned in the preceding paragraph equivalent to an amount not exceeding ten per centum of its value for each year of use;