MANILA ELECTRIC CO. V. CENTRAL BOARD OF ASSESSMENT APPEALS

114 SCRA 273

 

FACTS:

Petitioner  owns  two  oil  storage  tanks,  made  of  steel  plates  wielded  and assembled  on  the  spot.    Their  bottoms  rest  on  a  foundation  consisted  of compacted earth, sand pad as immediate layer, and asphalt stratum as top layer.  The tanks merely sit on its foundation.
 
The municipal treasurer of Batangas made an assessment for realty tax on the two tanks, based on the report of the Board of Assessors.  MERALCO wished to oppose this assessment as they averred that the tanks are not real properties.   
 

HELD:

While  the  two  storage  tanks  are  not  embodied  in  the  land,  they  may nevertheless  be  considered  as  improvements  in  the  land,  enhancing  its utility and rendering it useful to the oil industry.
 
For purposes of taxation, the term real property may include things, which should  generally  be  considered  as  personal  property.    it  is  familiar phenomenon  to  see  things  classified  as  real  property  for  purposes  of taxation  which  on  general  principle  may  be  considered  as  personal
property.