APOSTOLIC PREFECT OF THE MOUNTAIN PROVINCE vs.

TREASURER OF THE CITY OF BAGUIO

GR NO. L-47252, APRIL 18, 1941

FACTS:

Plaintiff is a corporation of a religious nature, organized in accordance with the laws of

the Philippines, with residence in the city of Baguio and its land is dedicated to worship and
education. Defendant is a public servant of the City of Baguio and acts as treasurer and collector
of said city. Defendant demanded and collected from the plaintiff the sum of P1,019.37 under the
provisions of Ordinance No. 137. Payment was made by the plaintiff under protest. Said
ordinance listed properties in Baguio City and a “special assessment list” was made for the
construction of a drainage and sewage system. The construction of the sewage and drainage
system has benefited and is benefiting directly and especially to all owners whose lots and lands
are included in the “special assessment list”. The system of drainage and sewerage has promoted
the cleanliness and sanitary condition of the lands of the aforementioned list.

ISSUE:

WON the properties on which the special contribution is collected are exempt from said
payment.

RULING:

No. It is not exempt from payment. It is a well-established rule in tax matters that the
special contributions that are created and charged to amortize extraordinary expenses that cause
works, such as the drainage and sewerage system, that benefit the inhabitants in a special way is
not a tax its sense legal. The special contribution charged to the properties located in the City of
Baguio, was created to amortize the extraordinary expenses caused by the sewage and drainage
system that was built, a work that especially benefits all owners. Plaintiff- appellant cannot
successfully invoke the exemption established by the Constitution because it has not been
admitted or proved that its properties that paid the special contribution were used exclusively for
religious purposes.