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Real Property Taxation THE CITY GOVERNMENT OF QUEZON CITY, AN THE CITY TREA!

URER OF QUEZON CITY, R" VICTOR #" ENRIGA, Petitioner$, %$" #AYAN TE&ECOMMUNICATION!, INC", Re$pon'ent" G"R" No" ()*+(, Mar-. ), *++) Facts: Re$pon'ent #ayan Tele-o//0ni-ation$, In-" 1#ayantel2 i$ a le3i$lati%e 4ran-.i$e .ol'er 0n'er Rep05li- A-t 1Rep" A-t2 No" 6*,7 to e$ta5li$. an' operate ra'io $tation$ 4or 'o/e$ti- tele-o//0ni-ation$, ra'iop.one, 5roa'-a$tin3 an' tele-a$tin3" O4 rele%an-e to t.i$ -ontro%er$y i$ t.e tax pro%i$ion o4 Rep" A-t No" 6*,7, e/5o'ie' in !e-tion (8 t.ereo4, 9.i-. rea'$: !ECTION (8" 1a2 T.e 3rantee $.all 5e lia5le to pay t.e $a/e taxe$ on it$ real e$tate, 50il'in3$ an' per$onal property, ex-l0$i%e o4 t.e 4ran-.i$e, a$ ot.er per$on$ or -orporation$ are no9 or .erea4ter /ay 5e re;0ire' 5y la9 to pay" 152 T.e 3rantee $.all 40rt.er pay to t.e Trea$0rer o4 t.e P.ilippine$ ea-. year, 9it.in ten 'ay$ a4ter t.e a0'it an' appro%al o4 t.e a--o0nt$ a$ pre$-ri5e' in t.i$ A-t, one an' one<.al4 per -ent0/ o4 all 3ro$$ re-eipt$ 4ro/ t.e 50$ine$$ tran$a-te' 0n'er t.i$ 4ran-.i$e 5y t.e $ai' 3rantee" On =an0ary (, (77*, Rep" A-t No" >()+, ot.er9i$e ?no9n a$ t.e @&o-al Go%ern/ent Co'e o4 (77(@ 1&GC2, too? e44e-t" !e-tion *6* o4 t.e Co'e 3rant$ lo-al 3o%ern/ent 0nit$ 9it.in t.e Metro Manila Area t.e po9er to le%y tax on real propertie$ an' t.e $e-on' para3rap. 9it.'re9 any exe/ption 4ro/ realty tax .ereto4ore 3rante' to or enAoye' 5y all per$on$, nat0ral or A0ri'i-al" On =0ly *+, (77*, 5arely 4e9 /ont.$ a4ter t.e &GC too? e44e-t, Con3re$$ ena-te' Rep" A-t No" >)66, a/en'in3 #ayantelB$ ori3inal 4ran-.i$e" It i$ 0n'i$p0te' t.at 9it.in t.e territorial 5o0n'ary o4 Q0eCon City, #ayantel o9ne' $e%eral real propertie$ on 9.i-. it /aintaine' %ario0$ tele-o//0ni-ation$ 4a-ilitie$" In (776, t.e 3o%ern/ent o4 Q0eCon City, ena-te' City Or'inan-e No" !P<7(, !<76, i/po$in3, 0n'er !e-tion , t.ereo4, a real property tax on all real propertie$ in Q0eCon City, an', reiteratin3 in it$ !e-tion ), t.e 9it.'ra9al o4 exe/ption 4ro/ real property tax 0n'er !e-tion *68 o4 t.e &GC" F0rt.er/ore, /0-. li?e t.e &GC, t.e QCRC, 0n'er it$ !e-tion *6+, 9it.'re9 tax exe/ption pri%ile3e$ in 3eneral" Con4or/a5ly 9it. t.e CityB$ Re%en0e Co'e, ne9 tax 'e-laration$ 4or #ayantelB$ real propertie$ in Q0eCon City 9ere i$$0e' 5y t.e City A$$e$$or an' 9ere re-ei%e' 5y #ayantel on A030$t (6, (77D"

t.7.in t.i$e 5ein3 national in -.7 e44e-ti%ely 9or?$ to 3rant or 'ele3ate to lo-al 3o%ern/ent$ o4 Con3re$$ in.ereo4. are $05Ae-t to realty taxe$" Ulti/ately. t. Con3re$$ opte' to pa$$ Rep" A-t No" >)66 0$in3.ere $ee/$ to 5e no i$$0e a$ to #ayantelB$ exe/ption 4ro/ real e$tate taxe$ 5y %irt0e o4 t. 50il'in3$ an' per$onal property" !e-tion (8 o4 Rep" A-t No" 6*.i$e" T.e &GC 9a$ expre$$ly re%i%e' 0n'er !e-tion (8 o4 Rep" A-t No" >)66" In -on-rete ter/$. Rep" A-t No" >)66 9a$ ena-te' $05$e.e $a/e 'e4inin3 p.erent po9er to tax t. real propertie$ o4 #ayantel. all propertie$ 9. t. all realtie$ 9.i$e are @exe/pte'@ 4ro/ any property tax" #ayantelB$ 4ran-.0ali4yin3 t. $a%e t.7 9.0$ 3rante' 0n'er !e-tion (8 o4 Rep" A-t No" 6*.at i$.e P.i-.ere 9it.i-.et.e &GC .7 applie$ to all it$ real or per$onal propertie$ 4o0n' any9.el' t. 50t $05$e. @ex-l0$i%e o4 t.i$eeB$ propertie$ 5elon3in3 to t. 9a$ t. 'ire-tly an' ex-l0$i%ely 0$e' in t.at t. 9a$ 'ee/e' i/plie'ly repeale' 5y !e-tion *68 o4 t.e ter/ @ex-l0$i%e o4 t.ra$e @$a/e taxe$ on it$ real e$tate.i-.e 4ran-.ara-ter.e operation o4 it$ 4ran-.ere4ore.e &GC" Per4e-tly a9are t.ere4ore.i$e.0ent to t..e 5a$i$ 4or #ayantelB$ exe/ption 4ro/ realty taxe$ prior to t.a$ alrea'y 9it.at #ayantelB real propertie$ in Q0eCon City are exe/pt 4ro/ pay/ent o4 real property taxe$ 0n'er it$ le3i$lati%e 4ran-.o$e ex-l0$i%e o4 it$ 4ran-.0ently 9it.Issue: E.e @exe/ption@ t.ipela3o" !e-tion (8 o4 Rep" A-t No" 6*.'ra9n #ayantelB$ 4or/er exe/ption 4ro/ realty taxe$.A-t No" 6*.a$ 5een re$tore' 5y !e-tion (8 o4 Rep" A-t No" >)66" A'/itte'ly.i$eF Held: T.e p0r$0it o4 it$ 4ran-.i$ 4ran-.e &GC" EHEREFORE.ereto4ore enAoye' 5y #ayantel 0n'er it$ ori3inal 4ran-. . exa-tly t. 0n'er !e-tion (( t. t.ilippine ar-.@ are not a-t0ally an' 'ire-tly 0$e' in t.e realty tax exe/ption .i-. t. are a-t0ally.i$e@ .e 4ran-.'ra9n 5y 4or-e o4 !e-tion *68 o4 t.e p.i$e.i$e" Un'er !e-tion (8 o4 Rep05li.e &GC.e petition i$ ENIE " .i$e@ 9. t.er or not #ayantelB$ real propertie$ in Q0eCon City are exe/pt 4ro/ real property taxe$ 0n'er it$ le3i$lati%e 4ran-.e $e-on' 3ro0p o4 propertie$ in'i-ate' a5o%e.ra$e @ex-l0$i%e o4 t.e Co0rt .i$e.i$ 4ran-.