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Facts of The Case

The Manila International Airport Authority (MIAA) petitioned the court regarding whether its airport lands and buildings are exempt from real estate tax imposed by local governments like Parañaque City. The court ruled that under the Administrative Code, Local Government Code, and Civil Code, MIAA as a government instrumentality and owner of public dominion properties is exempt from such real estate taxes, except for portions of properties leased to private parties. The court therefore granted MIAA's petition and declared void the tax assessments and threatened auction sale made by Parañaque City over MIAA's airport properties.

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Johñ Lewis Ferrer
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36 views2 pages

Facts of The Case

The Manila International Airport Authority (MIAA) petitioned the court regarding whether its airport lands and buildings are exempt from real estate tax imposed by local governments like Parañaque City. The court ruled that under the Administrative Code, Local Government Code, and Civil Code, MIAA as a government instrumentality and owner of public dominion properties is exempt from such real estate taxes, except for portions of properties leased to private parties. The court therefore granted MIAA's petition and declared void the tax assessments and threatened auction sale made by Parañaque City over MIAA's airport properties.

Uploaded by

Johñ Lewis Ferrer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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G.R. No.

155650             July 20, 2006

MANILA INTERNATIONAL AIRPORT AUTHORITY, petitioner,


vs.
COURT OF APPEALS, CITY OF PARAÑAQUE, CITY MAYOR OF PARAÑAQUE,
SANGGUNIANG PANGLUNGSOD NG PARAÑAQUE, CITY ASSESSOR OF PARAÑAQUE, and
CITY TREASURER OF PARAÑAQUE, respondents.

FACTS OF THE CASE:


On 21 March 1997, the Office of the Government Corporate Counsel (OGCC) issued Opinion No.
061 that the Local Government Code of 1991 withdrew the exemption from real estate tax granted to
MIAA under Section 21 of the MIAA Charter. Thus, MIAA negotiated with respondent City of
Parañaque to pay the real estate tax imposed by the City. MIAA then paid some of the real estate
tax already due. On 17 July 2001, the City of Parañaque, through its City Treasurer, issued notices
of levy and warrants of levy on the Airport Lands and Buildings. The Mayor of the City of Parañaque
threatened to sell at public auction the Airport Lands and Buildings should MIAA fail to pay the real
estate tax delinquency. MIAA thus sought a clarification of OGCC Opinion No. 061. On 9 August
2001, the OGCC issued Opinion No. 147 clarifying OGCC Opinion No. 061. The OGCC pointed out
that Section 206 of the Local Government Code requires persons exempt from real estate tax to
show proof of exemption. The OGCC opined that Section 21 of the MIAA Charter is the proof that
MIAA is exempt from real estate tax.

ISSUE:
whether the Airport Lands and Buildings of MIAA are exempt from real estate tax under existing
laws.

RULING:

Yes, MIAA's Airport Lands and Buildings are exempt from real estate tax imposed by local
governments.

Under Section 2(10) and (13) of the Introductory Provisions of the Administrative Code, MIAA is a
government instrumentality and not a government-owned or controlled corporation. Under Section
133(o) of the Local Government Code, MIAA as a government instrumentality is not a taxable
person because it is not subject to "taxes, fees or charges of any kind" by local governments. The
only exception is when MIAA leases its real property to a "taxable person" as provided in Section
234(a) of the Local Government Code, in which case the specific real property leased becomes
subject to real estate tax. Thus, only portions of the Airport Lands and Buildings leased to taxable
persons like private parties are subject to real estate tax by the City of Parañaque.

Under Article 420 of the Civil Code, the Airport Lands and Buildings of MIAA, being devoted to public
use, are properties of public dominion and thus owned by the State or the Republic of the
Philippines. This Court has also repeatedly ruled that properties of public dominion are not subject to
execution or foreclosure sale.

CONCLUSION:

WHEREFORE, court GRANTS the petition. We DECLARE the Airport Lands and Buildings of the


Manila International Airport Authority EXEMPT from the real estate tax imposed by the City of
Parañaque. We declare VOID all the real estate tax assessments, including the final notices of real
estate tax delinquencies, issued by the City of Parañaque on the Airport Lands and Buildings of the
Manila International Airport Authority, except for the portions that the Manila International Airport
Authority has leased to private parties. We also declare VOID the assailed auction sale, and all its
effects, of the Airport Lands and Buildings of the Manila International Airport Authority.

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