MCIAA vs. MarcosGR 120082, September 11, 1996Facts:

MCIAA was created by virtue of RA 6958. Since the time of its creator, MCIAA enjoyed the privilege of exemption from payment of realty taxes in accordance with sec. 14 of its charter. On October 11, 1994 however The treasurer of Cebu city demanded payments for realty taxes on several parcels of lands belonging to the petitioners. MCIAA objected to such demand for payment as baseless and unjustified, claiming in its favour Sec. 14 of R.A. 6958 which exempt it from payment of realty taxes. Respondent refuse to cancel MCIAAs tax account, insisting that it is the GOCCs whose tax exemption privilege has been withdrawn by virtue of Sec 193 and 234 of the LGC.

Issue: is the contention meritorious?

Ruling:

No. Sec 193 LGC prescribe the general rule that they are withdrawn upon the effectivity of the code except those granted to local water districts, cooperative duly registered under R.A. 6938, non-stock, non-profit hospitals and educational institutions, and unless otherwise provided in the LGC the latter provision called only refer to Sec 234 which enumerate the properties exempt from real property tax but the last paragraph of sec 234 further qualifies the retention of the exemption. Only to those enumerated therein. Thus, for petitioner to be exempt must show that the parcels of land in question any of those enumerated in 234.