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GR 120082, September 11, 1996
MCIAA was created by virtue of RA 6958. Since the
time of its creator, MCIAA enjoyed the privilege of exemption
from payment of realty taxes in accordance with sec. 14 of its
charter. On October 11, 1994 however The treasurer of Cebu
city demanded payments for realty taxes on several parcels of
lands belonging to the petitioners. MCIAA objected to such
demand for payment as baseless and unjustified, claiming in
its favour Sec. 14 of R.A. 6958 which exempt it from payment
of realty taxes. Respondent refuse to cancel MCIAAs tax
account, insisting that it is the GOCCs whose tax exemption
privilege has been withdrawn by virtue of Sec 193 and 234 of
the LGC.
Issue: is the contention meritorious?
No. Sec 193 LGC prescribe the general rule that
they are withdrawn upon the effectivity of the code except
those granted to local water districts, cooperative duly
registered under R.A. 6938, non-stock, non-profit hospitals
and educational institutions, and unless otherwise provided in
the LGC the latter provision called only refer to Sec 234 which
enumerate the properties exempt from real property tax but
the last paragraph of sec 234 further qualifies the retention of
the exemption. Only to those enumerated therein. Thus, for
petitioner to be exempt must show that the parcels of land in
question any of those enumerated in 234.