CALTEX V. CENTRAL BOARD

FACTS

This case is concerned with tax on machinery and equipment installed by Caltex in its gas stations located on leased land. The machines were loaned by Caltex to gas station operators under a lease agreement. It was stipulated in the contract that the operators, upon demand, shall return to Caltex the machines and equipment in good condition. The city assessor characterized said machines as taxable realty.

ISSUE

Whether said machines and equipments are realty property and thus subject to realty tax.

HELD

Said equipment and machinery, as appurtenances to the gas station building owned by Caltex and which are necessary o the operation of the gas station and are thus taxable as realty. This ruling is different from the one in Davao Saw Mill since here, the machinery were permanently affixed by Caltex to its gas stations. The tenement was owned by Caltex. Differentiate this also from the Manila Electric Case where the materials were only attached by bolts and could be moved from place to place.