Facts: Abra Valley College is an educational corporation and institution of higher

learning in Bangued, Abra. CFI of Abra a branch 1 ordered for the seizure and sale
of lot and building of the abra valley junior college for the non payment of real
property tax. Petitioner contends that the primary use of the lot and building for
educational purposes and not the incidental use thereof, determines an exemption
from property taxes under Section 22 (3) or Art VI of 1935 Constitution. On the
other hand, private respondents maintain that the college lot and building in question
to answer for the unpaid taxes are used for educational purposes, permanent
residence of the school director, and commercial purposes because the ground floor
of the college was used and rent d by commercial establishment.

Issue: whether or not the lot and building in question are used exclusively for
educational purposes and thus exempted from paying tax?

Held: Exemption in favor of property used exclusively for charitable purposes is not
limited to property actually indispensable therefor but extends to facilities which are
incidental to or reasonably necessary for the accomplishment of said purposes. Test
for exemption from taxation is the use of the property for the purposes mentioned in
the Constitution. Otherwise stated, the use of the school building for lot commercial
purposes is neither contemplated by law nor by jurisprudence. Under 1935
Constitution, the trial court correctly arrived at a conclusion that the school building
as well as the lot where it is built should be taxed because the first floor thereof is
being used for commercial purposes. Since only a portion is used for purposes of
commerce, it is only fair that half of the assessed tax should be returned to the school
involved. The court hereby affirmed the premises of the decision of CFI subject to
modification.