Power barges owned by a contractor supplying electricity to the National Power Corporation (NPC) are real properties subject to the real property tax(RPT) imposed by local governments.Article 415 (9) of the New Civil Code, docks and structures which, though floating, are intended by their nature and object to remain at a fixed place ona river, lake, or coast are considered immovable property. Power barges are categorized as immovable property by destination, being in the nature of machinery and other implements intended by the owner for an industry or work which may be carried on in a building or on a piece of land and whichtend directly to meet the needs of said industry or work.
Such power barges owned by an NPC contractor cannot avail of the real property tax exemption under Section 234 (c) of R.A. No. 7160 because thepower barges are owned, operated, managed and maintained by the contractor. The contractor is the party liable to the real property tax, not NPC.The exemption provision applies only to real properties actually, directly and exclusively used by a government-owned and controlled corporationengaged in the supply, generation, and transmission of electric power.The mere undertaking of NPC under the agreement with the contractor that it shall be responsible for the payment of all real estate taxes andassessments, does not justify the exemption. The privilege granted to NPC cannot be extended to its contractor. The agreement is between NPC andthe contractor and does not bind a third person not privy thereto, such as a local government.
QUESTIONAIRES IN REAL PROPERTY TAXATION
Describe the nature of real property.
A real estate tax is a direct tax on the ownership of lands and buildings or other improvements thereon, not especially exempted, and is payableregardless of whether the property is used or not, although the value may vary in accordance with such factor. The tax is usually single or indivisible, although the land and building or improvements erected thereon are assessed separately, except when the land and building or improvement belongs to separate owners. It is a fixed proportion of the assessed value of the property taxed, and required, therefore, theintervention of assessors. It is collected or payable at appointed times, and it constitutes a superior lien on and is enforceable against theproperty subject to such taxation, and not by imprisonment of the owner. Eusebio Villanueva v. City of Iloilo, [G.R. No. L-26521. December 28,1968.]
Who may impose real property tax? Province, cities and municipalities in Metro Manila.
What the fundamental principles in the appraisal, assessment, levey and collection of real property tax? (Sec. 198)
Appraised at current and fmv
Classified for assessment purposes based on actual use
Assessed on the basis of a uniform classification within each LGU
Appraisal, assessment, levy and collection not let to private person
Appraisal and assessment equitable
Ad valorem tax