Property Meralco Steel Towers Case
Property Meralco Steel Towers Case
Property Meralco Steel Towers Case
Immovable
De Silva Guevara Mercado Sebastian
Board of Assessment Appeals v MERALCO (G.R. No. L-15334, Jan. 31, 1964)
The steel towers or supports in question, do not come within the objects mentioned in paragraph 1, because they do not constitute buildings or constructions adhered to the soil. They are not construction analogous to buildings nor adhering to the soil. As per description, given by the lower court, they are removable and merely attached to a square metal frame by means of bolts, which when unscrewed could easily be dismantled and moved from place to place. They can not be included under paragraph 3, as they are not attached to an immovable in a fixed manner, and they can be separated without breaking the material or causing deterioration upon the object to which they are attached. Each of these steel towers or supports consists of steel bars or metal strips, joined together by means of bolts, which can be disassembled by unscrewing the bolts and reassembled by screwing the same. These steel towers or supports do not also fall under paragraph 5, for they are not machineries, receptacles, instruments or implements, and even if they were, they are not intended for industry or works on the land. Petitioner is not engaged in an industry or works in the land in which the steel supports or towers are constructed.
posts
insulator
electric meter
Arguments
MERALCO:
Supreme Court ruling that 1) the steel towers come within the term poles which are considered exempt from taxes from respondent franchise; 2) the steel towers are personal properties not subject to real property tax. (Board of Assessment Appeals, City Assessor and the City
Treasurer of Quezon City vs. Manila Electric Company, L-155334, Jan. 31, 1964).
Arguments
Respondent-Appellees:
that subject questioned properties are not exempted from real property taxation in accordance with Sections 234 & 523 (f) of R.A. 7160. All other properties not enumerated are deemed not included from coverage of exemption.
Assignments of Errors
I. IN NOT HOLDING THAT POLES, WIRES, INSULATORS, TRANSFORMERS AND ELECTRIC METERS ARE PERSONAL PROPERTIES, HENCE, NOT SUBJECT TO REAL PROPERTY TAX, AS EARLIER DECIDED BY THE LOCAL BOARD OF ASSESSMENT APPEALS OF LUCENA CITY IN LBAA CASE NO. 89-2 AND AFFIRMED BY THE CENTRAL BOARD OF ASSESSMENT APPEALS IN CBAA CASE NO. 248.
II. IN RULING THAT MERALCOS EXEMPTION FROM REAL PROPERTY TAX ON ITS POLES, WIRES, INSULATORS, TRANSFORMERS, AND ELECTRIC METERS UNDER ITS FRANCHISE AND P.D. 551 HAS BEEN REPEALED BY SEC. 234(F) OF THE LOCAL GOVERNMENT CODE OF 1991. III .IN NOT RULING THAT THE CONTESTED ASSESSMENT SERVED ON OCTOBER 29, 1997 CANNOT BE GIVEN RETROACTIVE EFFECT FROM 1990 TO 1997, WITH PENALTY.
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power; (d) All real property owned by duly registered cooperatives as provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environmental protection. Except as provided herein, any exemption from payment of real roperty tax previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including all government-owned or controlled corporations are hereby withdrawn upon the effectivity of this Code.
assessments made beginning 1992 until 1997 by the City Government of Lucena is legal, both procedurally and substantially.