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MANILA INTERNATIONAL AIRPORT AUTHORITY, Petitioner, 
vs.
CITY OF PASAY

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G.R. No. 163072 April 2, 2009
MANILA INTERNATIONAL AIRPORT AUTHORITY, Petitioner, vs. CITY OF PASAY, SANGGUNIANG
PANGLUNGSOD NG PASAY, CITY MAYOR OF PASAY, CITY TREASURER OF PASAY, and CITY
ASSESSOR OF PASAY, Respondents.
D E C I S I O N
CARPIO, J.:
This is a petition for review on certiorari
1
of the Decision
2
dated 30 October 2002 and the Resolution dated 19 March
2004 of the Court of Appeals in CA-G.R. SP No. 67416.
The Facts
Petitioner Manila International Airport Authority (MIAA) operates and administers the Ninoy Aquino International
Airport (NAIA) Complex under Executive Order No. 903 (EO 903),
3
otherwise known as the Revised Charter of the
Manila International Airport Authority. EO 903 was issued on 21 July 1983 by then President Ferdinand E. Marcos.
Under Sections 3
4
and 22
5
of EO 903, approximately 600 hectares of land, including the runways, the airport tower, and
other airport buildings, were transferred to MIAA. The NAIA Complex is located along the border between Pasay City
and Parañaque City.
On 28 August 2001, MIAA received Final Notices of Real Property Tax Delinquency from the City of Pasay for the
taxable years 1992 to 2001. MIAA’s real property tax delinquency for its real properties located in NAIA Complex,
Ninoy Aquino Avenue, Pasay City (NAIA Pasay properties) is tabulated as follows:
TAX DECLA-RATION
TAXABLE YEAR
TAX DUE
PENALTY
TOTAL
A7-183-08346
1997-2001
243,522,855.00
123,351,728.18
366,874,583.18
A7-183-05224
1992-2001
113,582,466.00
71,159,414.98
184,741,880.98
A7-191-00843
1992-2001
54,454,800.00
34,115,932.20
88,570,732.20
A7-191-00140
1992-2001
1,632,960.00
1,023,049.44
2,656,009.44
A7-191-00139
1992-2001
6,068,448.00
3,801,882.85
9,870,330.85
A7-183-05409
1992-2001
59,129,520.00
37,044,644.28
96,174,164.28
A7-183-05410
1992-2001
20,619,720.00
12,918,254.58
33,537,974.58
A7-183-05413
1992-2001
7,908,240.00
4,954,512.36
12,862,752.36
A7-183-05412
1992-2001
18,441,981.20
11,553,901.13
29,995,882.33
A7-183-05411
1992-2001
109,946,736.00
68,881,630.13
178,828,366.13
A7-183-05245
1992-2001
7,440,000.00
4,661,160.00
12,101,160.00
GRAND TOTAL
P642,747,726.20
P373,466,110.13
P1,016,213,836.33
On 24 August 2001, the City of Pasay, through its City Treasurer, issued notices of levy and warrants of levy for the
NAIA Pasay properties. MIAA received the notices and warrants of levy on 28 August 2001. Thereafter, the City Mayor
of Pasay threatened to sell at public auction the NAIA Pasay properties if the delinquent real property taxes remain
unpaid.
On 29 October 2001, MIAA filed with the Court of Appeals a petition for prohibition and injunction with prayer for
preliminary injunction or temporary restraining order. The petition sought to enjoin the City of Pasay from imposing real
property taxes on, levying against, and auctioning for public sale the NAIA Pasay properties.
On 30 October 2002, the Court of Appeals dismissed the petition and upheld the power of the City of Pasay to impose and
collect realty taxes on the NAIA Pasay properties. MIAA filed a motion for reconsideration, which the Court of Appeals
denied. Hence, this petition.
The Court of Appeals’ Ruling
The Court of Appeals held that Sections 193 and 234 of Republic Act No. 7160 or the Local Government Code, which

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took effect on 1 January 1992, withdrew the exemption from payment of real property taxes granted to natural or juridical
persons, including government-owned or controlled corporations, except local water districts, cooperatives duly registered
under Republic Act No. 6938, non-stock and non-profit hospitals and educational institutions. Since MIAA is a
government-owned corporation, it follows that its tax exemption under Section 21 of EO 903 has been withdrawn upon
the effectivity of the Local Government Code.
The Issue
The issue raised in this petition is whether the NAIA Pasay properties of MIAA are exempt from real property tax.
The Court’s Ruling
The petition is meritorious.
In ruling that MIAA is not exempt from paying real property tax, the Court of Appeals cited Sections 193 and 234 of the
Local Government Code which read:
SECTION 193. Withdrawal of Tax Exemption Privileges. Unless otherwise provided in this Code, tax exemptions or
incentives granted to, or presently enjoyed by all persons, whether natural or juridical, including government-owned or
controlled corporations, except local water districts, cooperatives duly registered under R.A. No. 6938, non-stock and
non-profit hospitals and educational institutions, are hereby withdrawn upon the effectivity of this Code.
SECTION 234. Exemptions from Real Property Tax. The following are exempted from payment of the real property tax:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial
use thereof has been granted, for consideration or otherwise to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious
cemeteries and all lands, buildings and improvements actually, directly, and exclusively used for religious, charitable or
educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government
owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of
electric power;
(d) All real property owned by duly registered cooperatives as provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environment protection.
Except as provided herein, any exemption from payment of real property tax previously granted to, or presently enjoyed
by, all persons, whether natural or juridical, including all government-owned or controlled corporations are hereby
withdrawn upon the effectivity of this Code.
The Court of Appeals held that as a government-owned corporation, MIAA’s tax exemption under Section 21 of EO 903
has already been withdrawn upon the effectivity of the Local Government Code in 1992.
In Manila International Airport Authority v. Court of Appeals
6
(2006 MIAA case), this Court already resolved the issue of
whether the airport lands and buildings of MIAA are exempt from tax under existing laws. The 2006 MIAA case
originated from a petition for prohibition and injunction which MIAA filed with the Court of Appeals, seeking to restrain
the City of Parañaque from imposing real property tax on, levying against, and auctioning for public sale the airport lands
and buildings located in Parañaque City. The only difference between the 2006 MIAA case and this case is that the 2006
MIAA case involved airport lands and buildings located in Parañaque City while this case involved airport lands and
buildings located in Pasay City. The 2006 MIAA case and this case raised the same threshold issue: whether the local
government can impose real property tax on the airport lands, consisting mostly of the runways, as well as the airport
buildings, of MIAA. In the 2006 MIAA case, this Court held:

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G.R. No. 163072               April 2, 2009 MANILA INTERNATIONAL AIRPORT AUTHORITY, Petitioner, 
vs.
CITY OF PASAY, SANGGUNIANG PANGLUNGSOD NG PASAY, CITY MAYOR OF PASAY, CITY TREASURER OF PASAY, and CITY ASSESSOR OF PASAY, Respondents. D E C I S I O N CARPIO, J.: This is a petition for review on certiorari1 of the Decision2 dated 30 October 2002 and the Resolution dated 19 March 2004 of the Court of Appeals in CA-G.R. SP No. 67416. The Facts Petitioner Manila International Airport Authority (MIAA) operates and administers the Ninoy Aquino International Airport (NAIA) Complex under Executive Order No. 903 (EO 903),3 otherwise known as the Revised Charter of the Manila International Airport Authority. EO 903 was issued on 21 July 1983 by then President Ferdinand E. Marcos. Under Sections 34 and 225 of EO 903, approximately 600 hectares of land, including the runways, the airport tower, and other airport buildings, were transferred to MIAA. The NAIA Complex is located along the border between Pasay City and Parañaque City. On 28 August 2001, MIAA received Final Notices of Real Property Tax Delinquency from the City of Pasay for the taxable years 1992 to 2001. MIAA’s real property tax delinquency for its real properties located in NAIA Complex, Ninoy Aquino Avenue, Pasay City (NAIA Pasay properties) is tabulated as follows: TAX DECLA-RATION TAXABLE YEAR TAX DUE PENALTY TOTAL A7-183-08346 1997-2001 243,522,855.00 123,351,728.18 366,874,583.18 A7-183-05224 1992-20 ...
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