G.R. No.

166102, August 05, 2015

MANILA ELECTRIC COMPANY, Petitioner, v. THE CITY ASSESSOR AND CITY

TREASURER OF LUCENA CITY, Respondents.

DECISION

LEONARDO-DE CASTRO, J.:

MERALCO is a private corporation organized and existing under Philippine laws to operate as
a public utility engaged in electric distribution. MERALCO has been successively granted
franchises to operate in Lucena City beginning 1922 until present time, particularly, by:
Certificate of Franchise10 dated October 28, 1993 issued by the National Electrification
Commission; and Republic Act No. 9209 11 approved on June 9, 2003 by Congress.

On February 20, 1989, MERALCO received from the City Assessor of Lucena a copy of Tax
Declaration No. 019-650013 covering the electric facilities and has an assessed value of
P65,448,800.00, and were subjected to real property tax as of 1985.

MERALCO appealed Tax Declaration No. 019-6500 before the LBAA of Lucena City

The LBAA rendered a Decision... the Board overrules the claim of the [City Assessor of Lucena] and
sustain the claim of [MERALCO].
Six years later, on October 29, 1997, MERALCO received a letter19 dated October 16, 1997 from the
City Treasurer of Lucena, which stated that the company was being assessed real property tax
delinquency on its machineries beginning 1990
MERALCO appealed Tax Declaration
MERALCO's appeal be dismissed for lack of merit
Disgruntled, MERALCO sought recourse from the Court of Appeals
The Court of Appeals rendered a Decision on May 13, 2004 rejecting all arguments proffered by
MERALCO.
MERALCO similarly failed to persuade the Court of Appeals that the transformers, transmission lines,
insulators, and electric meters mounted on the electric posts of MERALCO were not real properties.
Court of Appeals denied the Motion for Reconsideration of MERALCO
MERALCO is presently before the Court via the instant Petition for Review on Certiorari

ISSUES:

whether the poles, wires, insulators, transformers, and electric meters of MERALCO were real properties
RULINGS:

the Court PARTLY GRANTS the instant Petition and AFFIRMS with
MODIFICATION affirming in toto the Decision dated May 3, 2001 of the Central Board of
Assessment Appeals in CBAA Case No. L-20-98. The Court DECLARES that the transformers,
electric posts, transmission lines, insulators, and electric meters of Manila Electric Company
are NOT EXEMPTED from real property tax under the Local Government Code. However, the
Court also DECLARES the appraisal and assessment of the said properties under Tax
Declaration Nos. 019-6500 and 019-7394 as NULL and VOID for not complying with the
requirements of the Local Government Code and violating the right to due process of Manila
Electric Company, and ORDERS the CANCELLATION of the collection letter dated October
16, 1997 of the City Treasurer of Lucena and the Notice of Assessment dated October 20,
1997 of the City Assessor of Lucena, but WITHOUT PREJUDICE to the conduct of a new
appraisal and assessment of the same properties by the City Assessor of Lucena in accord
with the provisions of the Local Government Code and guidelines issued by the Bureau of
Local Government

MANILA INTERNATIONAL
G.R. No. 155650
AIRPORT AUTHORITY,
Petitioner,

versus

COURT OF APPEALS,
Respondents. July 20, 2006

The Antecedents

Petitioner Manila International Airport Authority (MIAA) operates the Ninoy Aquino
International Airport (NAIA) Complex in Paraaque City under Executive Order No. 903, otherwise
known as the Revised Charter of the Manila International Airport Authority (MIAA Charter

As operator of the international airport, MIAA administers the land, improvements and
equipment within the NAIA Complex. The MIAA Charter transferred to MIAA approximately 600
hectares of land,[3] including the runways and buildings (Airport Lands and Buildings) then under the
Bureau of Air Transportation.[4] The MIAA Charter further provides that no portion of the land
transferred to MIAA shall be disposed of through sale or any other mode unless specifically approved
by the President of the Philippines.[5]

On 21 March 1997, the Office of the Government Corporate Counsel (OGCC) issued Opinion
No. 061. The OGCC opined that the Local Government Code of 1991 withdrew the exemption from
real estate tax granted to MIAA under Section 21 of the MIAA Charter. Thus, MIAA negotiated with
respondent City of Paraaque to pay the real estate tax imposed by the City. MIAA then paid some of the real
estate tax already due.
MIAA filed with the Court of Appeals an original petition for prohibition and injunction, with prayer for
preliminary injunction or temporary restraining order. The petition sought to restrain the City of Paraaque from
imposing real estate tax on, levying against, and auctioning for public sale the Airport Lands and Buildings.