COLLEGE OF LAW, NORSUCase Digests on PropertyLaw Johann Heinrich MalongoFacts:
The Philippine Commission enacted Act No. 484which authorized the Municipal Board of Manilato grant a franchise to construct, maintain andoperate an electric street railway and electriclight, heat and power system in the City of Manila.Meralco's electric power is generated by itshydro-electric plant located at Botocan Falls,Laguna and is transmitted to the City of Manilaby means of electric transmission wires,running from the province of Laguna to the saidCity. These electric transmission wires whichcarry high voltage current, are fastened toinsulators attached on steel towers constructedby respondent at intervals, from its hydro-electric plant in the province of Laguna to theCity of Manila. The respondent Meralco hasconstructed 40 of these steel towers withinQuezon City, on land belonging to it. The City Assessor of Quezon City declared theaforesaid steel towers for real property taxunder Tax.Respondent paid the amount under protest, andfiled a petition for review in the Court of TaxAppeals
Whether or not the Meralco poles constitutereal properties so as they can be subjected to areal property tax.
The SC ruled that Meralco's steel towers wereconsidered poles within the meaning of paragraph 9 of its franchise which exempts itspoles from taxation. The steel towers wereconsidered personalty because they wereremovable and merely attached to squaremetal frames by means of bolts and could bemoved from place to place when unscrewedand dismantled. Furthermore, they are notattached to an immovable in a fixed manner,and they can be separated without breaking thematerial or causing deterioration upon theobject to which they are attached.
- was used to denote the steel towers of an electric company engaged in thegeneration of hydro-electric powergenerated from its plant.
Caltex vs CBAA114 SCRA 296Facts:
This case is about the realty tax on machineryand equipment installed by Caltex (Philippines)Inc. in its gas stations located on leased land. The machines and equipment consists of underground tanks, elevated tank, elevatedwater tanks, water tanks, gasoline pumps,computing pumps, water pumps, car washer,car hoists, truck hoists, air compressors andtireflators. The building or shed, the elevated water tank,the car hoist under a separate shed, the aircompressor, the underground gasoline tank,neon lights signboard, concrete fence andpavement and the lot where they are all placedor erected, all of them used in the pursuance of the gasoline service station business formedthe entire gasoline service-station. The lessor of the land, where the gas station islocated, does not become the owner of themachines and equipment installed therein.Caltex retains the ownership thereof during theterm of the lease.
Whether or not the pieces of gas stationequipment and machinery enumerated aresubject to realty tax.
The Assessment Law provides that the realtytax is due "on real property, including land,buildings, machinery, and otherimprovements".SC hold that the said equipment andmachinery, as appurtenances to the gas stationbuilding or shed owned by Caltex (as to which itis subject to realty tax) and which fixtures arenecessary to the operation of the gas station,for without them the gas station would beuseless, and which have been attached or