MANILA ELECTRIC CO. V. CENTRAL BOARD

FACTS

This is about the imposition of realty tax on two oil storage tanks installed by Manila Electric on land which it leased from Caltex. The tanks, as alleged, merely sit on its foundation. City board alleges that the area where the two tanks are located is enclosed with earthen dikes with electric steel poles on top.

ISSUE

Whether the tanks are realty or personalty.

HELD

For purposes of taxation, the term "real property" may include things which should generally be regarded as personal property. The other Manila Electric case is not in point since in that case the steel towers were regarded as poles and under its franchise, Meralco's poles were exempt from taxation. Moreover, the steel towers were not attached to any land, or building. They were removable from their metal frames. Although the two tanks here were not embedded in the land, they were installed with some degree of permanence. Moreover, they are useful and necessary to the industry.