Assessment and Collection of Real Property Taxes Due on the Real Properties Owned by Philippine Ports Authority (PPA)

February 1, 1995 BLGF MEMORANDUM CIRCULAR NO. 002-95 TO : All Regional Directors for Local Government Finance, District Treasurers and Assessors of Metropolitan Manila; Provincial, City and Municipal Treasurers; Provincial, City and Municipal Assessors; and Others Concerned. SUBJECT : Assessment and Collection of Real Property Taxes Due on the Real Properties Owned by Philippine Ports Authority (PPA) For the information and guidance of all concerned, quoted hereunder is the pertinent portion of the letter dated December 1, 1994 of the General Manager, PPA, requesting this Bureau that Assessors and Treasurers of the local government units be advised to hold in abeyance the assessment and collection of the real property taxes due on the real properties owned by the said Authority, pending resolution of the case filed before the Supreme Court: "It bears stressing that, because of the intricacy of the issue involved and the greater impact it bears on PPA fund already committed for port development to help spur economic and maritime growth of the country, this Authority through the Office of the Solicitor General, has filed with the Supreme Court for review (G.R. No. 109791), entitled Philippine Ports Authority vs. City of Iloilo, which seeks, among others, for a judicial declaration that port facilities administered by PPA, being property of public dominion as defined by Article 2420 of the New Civil Code of the Philippines, is exempt from the payment of Realty Taxes." In view thereof, and in order to avoid pre-emption of the abovecited case filed before the Supreme Court, the Treasurers concerned are hereby instructed to hold in abeyance all real property tax collection activities against PPA until such time that the said Court has finally decided on the case, except, of course, the real property taxes due on PPA properties which are rented or leased to taxable persons as the same are not going to be affected by the resolution of the case, in light of the "beneficial use" theory under Section 234(a) of the Local Government Code of 1991 (R.A. No. 7160). The District Treasurers and Assessor of Metropolitan Manila and all Provincial Treasurers and Assessors are hereby instructed to disseminate the contents of this Circular, to the Municipal Treasurers and Assessors within their respective jurisdictions. LORINDA M. CARLOS Executive Director