MIAA vs.

City of Paraaque
GR 155650 July 20, 2006

Facts: MIAA operates the NAIA complex in paraaque under EO 903. On June 28, 2001 MIAA received final notices of real estate tax delinquency from the city for the taxable year 1992-2001. Consequently, the city issue notice for levy on the airport land and buildings. MIAA opposed the levy and contended that SEC. 21 of EO 903 specifically exempts it from the payment of real estate tax. MIAA invokes the principle that the government cannot tax itself. Issue: Is the MIAA liable for real estate taxes? Ruling: No. MIAA is not a GOCC but a government instrumentality vested with corporate powers to perform efficiently government functions. A government instrumentality falls under sec 133(o) of the LGC which limits the taxing powers of LGUs. The LGC recognize that the LGUs cannot tax the national government, which delegated the power to tax. Moreover, the airport lands and buildings of MIAA are owned by the republic is not taxable pursuant to Sec 234 (a) of the LGC.