Practice question
A charitable hospital’s entire disputed treatment building is actually, directly and exclusively used for its hospital services. It accepts donations, receives government support and charges some patients while serving indigent patients as part of its charitable operation. The city denies the real-property exemption solely because these sources of receipts exist, without alleging commercial leasing or noncharitable use. Which conclusion best follows Lung Center?
- Any government support makes an institution incapable of charity.
- Charging any patient conclusively turns all hospital treatment space into a commercial lease.
- The cited receipts alone do not defeat charitable character or the stated actual-use exemption; the institution’s character and the building’s use must be assessed under the governing test.
- Donation income makes all unrelated property exempt automatically.
- The city may ignore actual use whenever donations are received.
Legal references
- 1987 Constitution, Article VI: https://lawphil.net/consti/cons1987.html
- Lung Center of the Philippines v. Quezon City, G.R. No. 144104, June 29, 2004, main decision: https://lawphil.net/judjuris/juri2004/jun2004/gr_144104_2004.html
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