APOSTOLIC PREFECT OF MOUNTAIN PROVINCE vs.

CITY TREASURE OF BAGUIO CITY, 71

PHIL 547

FACTS:
The Apostolic Prefect is a corporation sole, of religious character, organized under the Philippine laws,
and with residence in Baguio. The City imposed a special assessment against properties within its territorial
jurisdiction, including those of the Apostolic Prefect, which benefits from its drainage and sewerage system. The
Apostolic Prefect contends that its properties should be free from tax.
ISSUE:
Is the Apostolic Prefect exempt from paying?

RULING:
No, it is liable. Tax includes both general taxes and special assessment. There is a recognized distinction
between them in that assessment is confined to local impositions upon property for the payment of the cost of
public improvements in its immediate vicinity and levied with reference to special benefits to the property
assessed.
A special assessment is not a tax; and neither the decree nor the Constitution exempt the Apostolic
Prefect from payment of said special assessment.
The differences between a special assessment and a tax are that (1) a special assessment can be
levied only on land; (2) a special assessment cannot (at least in most states) be made a personal liability of
the person assessed; (3) a special assessment is based wholly on benefits; and (4) a special assessment is
exceptional both as to time and locality while the imposition of a charge on all property, real and personal,
in a prescribed area.
Thus, the Apostolic Prefect is required to pay the special assessment.