CITY OF PASIG vs. PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT- Real Property Tax


FACTS:

MPLDC owned two parcels of land in Pasig City. In 1986, Jose Y. Campos, the registered owner of MPLDC, voluntarily surrendered  MPLDC to the government. From 2002-2005, Pasig City sent notices of assessment to MPLDC to demand payment of real property taxes. PCGG filed with the RTCC a petition for prohibition with a prayer for issuance of a TRO claiming ownership over the said properties.


ISSUE:

Are the properties owned by PCGG subject to real property taxes?

HELD:

Only those portions of the properties leased to taxable entities are subject to real estate taxes for the period of such leases and may also be sold at public auctioned  to satisfy the tax delinquency. While it was established that the owner of the properties is now clearly the Republic of the Philippines given the voluntary surrender, the Local Government Code clearly states that the exemption will not apply “when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person”. The Court cited several cases to support the decision such as Philippine Fisheries, GSIS, MIAA, and Lung Center.