MIAA vs. CA, G.R. No.

155650, July 20, 2006

FACTS: Petitioner operates the NAIA under E.O. No.903. Later, the Government
Corporate Counsel (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 Parañaque to pay
the real estate tax imposed by the City. MIAA then paid some of the real estate tax
already due. MIAA filed this petition for review, pointing out that it is
exempt from realestate tax under Sec. 21 of its charter and Sec. 234 of the LGC.
It invokes the principle thatthe government cannot tax itself as a justification for
exemption, since the airport lands andbuildings, being devoted to public use and
public service, are owned by the Republic of thePhilippines. On the other hand,
the City of Parañaque invokes Sec. 193 of the LGC, whichexpressly
withdrew the tax exemption privileges of government-
owned and controlledcorporations (GOCC) upon the effectivity of the LGC.

ISSUE: Whether or not the airport lands and buildings of the petitioner are exempt
from real estate tax.

RULING: Yes. The airport lands and buildings of MIAA are exempt from real estate
tax imposed by local governments. Sec. 243(a) of the LGC exempts from
real estate tax any real property owned by the Republic of the Philippines.
This exemption should be read in relation
with Sec.1 3 3 ( o ) o f t h e L G C , w h i c h p r o v i d e s t h a t t h e e x e r c i s e
o f t h e t a x i n g p o w e r s o f l o c a l governments shall not extend to
t h e l e v y o f t a x e s , f e e s o r c h a r g e s o f a n y k i n d o n t h e National
Government, its agencies and instrumentalities