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MCIAA v. Marcos

MCIAA was created by law to manage airports and was initially exempt from real property taxes. However, the Local Government Code withdrew all real property tax exemptions for government-owned corporations like MCIAA. While MCIAA argued it was exempt as a government instrumentality, the court found that the LGC superseded its charter and removed the tax exemption. As MCIAA owned the airport lands and was previously a taxable entity, it was subject to real property taxes assessed by the local government.

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Lloyd Edgar G. Reyes
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46 views

MCIAA v. Marcos

MCIAA was created by law to manage airports and was initially exempt from real property taxes. However, the Local Government Code withdrew all real property tax exemptions for government-owned corporations like MCIAA. While MCIAA argued it was exempt as a government instrumentality, the court found that the LGC superseded its charter and removed the tax exemption. As MCIAA owned the airport lands and was previously a taxable entity, it was subject to real property taxes assessed by the local government.

Uploaded by

Lloyd Edgar G. Reyes
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 PDF, TXT or read online on Scribd
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MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY v. MARCOS  2.

2. The LGC has sections which provide for the limitations on the power
G.R. No. 120082 | September 11, 1996 of LGUs to tax. However, reading together Sections 133, 232, and
234 of the LGC, it is a general rule, as laid down in Section 133, that
FACTS​: the taxing powers of local government units cannot extend to the levy
1. The Mactan Cebu International Airport Authority (MCIAA) was of taxes, fees and charges of any kind on the National Government,
created by R.A. No. 6958, Section 14 of which provides that it shall its agencies and instrumentalities, and local government units
be exempt from the payment of real property taxes 3. Since Section 234 unequivocally withdrew, upon the effectivity of the
2. However, in 1994, the City Treasurer of Cebu City assessed MCIAA LGC, exemptions from payment of real property taxes granted to
of deficiency realty taxes for its real properties in Lahug, Cebu City in natural or juridical persons, including GOCCs, and MCIAA is,
the total amount of ​P​2.23M, claiming that the Local Government undoubtedly, a GOCC, it necessarily follows that its exemption from
Code has withdrawn all realty tax exemptions of government-owned such tax granted it in Section 14 of its Charter, R.A. No. 6958, has
or controlled corporations been withdrawn
3. As the City was about to levy the properties of MCIAA, the latter paid 4. To determine whether the lands are exempt from realty tax under
the assessment in protest. It then filed a Petition for Declaratory Section 234 (a) of the LGC, The crucial issues then to be addressed
Relief before the RTC-Cebu are: (a) whether the parcels of land in question belong to the
4. RTC dismissed the petition, reasoning that the LGC has expressly Republic of the Philippines whose beneficial use has been granted to
withdrawn all realty tax exemptions to GOCCs previously granted by the petitioner, and (b) whether the petitioner is a taxable person
general or special laws a. Section 15 of the MCIAA Charter provides that the lands
5. MCIAA admits that it is a GOCC, but it is an instrumentality of pertaining to the Lahug Airport and Mactan Airport have been
government performing governmental functions, hence still exempted transferred to the MCIAA from the Republic. This is an absolute
from the payment of realty taxes under Sections 133 (o) and 234 of conveyance of ownership to MCIAA. Hence, it is now the owner
the LGC of those lands.
b. MCIAA cannot claim that it was never a taxable person under its
ISSUE​: Charter as it was only initially exempted from the payment of
WoN the MCIAA is exempt from the payment of realty taxes realty taxes. If ever, such exemption has been withdrawn by the
LGC
HELD​: NO

RATIO​:
1. The power to tax is primarily vested in the Congress; however, it may
be exercised by local legislative bodies, no longer merely by virtue of
a valid delegation as before, but pursuant to ​direct authority
conferred by the Constitution

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