mutia

MANILA INTERNATIONAL AIRPORT AUTHORITY, Petitioner, 


versus


CITY OF PASAY, SANGGUNIANG PANGLUNGSOD NG PASAY, CITY MAYOR OF PASAY, CITY TREASURER OF PASAY, and CITY ASSESSOR OF PASAY, Respondents.

THE FACTS OF THE CASE

Manila International Airport Authority (MIAA) operates and administers the Ninoy Aquino International Airport (NAIA) Complex under Executive Order No. 903 (E.O. 903), the Revised Charter of the Manila International Airport Authority. The complex is located along the border between Pasay City and Parañaque City.

On August 28, 2011 the MIAA received Final Notices of Real Property Tax Deliquency from the City of Pasay for the taxable years 1992 to 2001. Tax Due of P642,747,726.20 plus Penalty of P373,466,110.13 = TOTAL of P1,016,213,836.33. The City Mayor of Pasay threatened to sell at public auction the NAIA Pasay properties if the delinquent real property taxes remain unpaid.

On October 29, 2011, MIAA filed with the Court of Appeals a petition for Prohibition and Injunction with Prayer for Preliminary Injunction or Temporary Restraining Order. The petition sought to enjoin the City of Pasay from imposing real property taxes on levying against, the auctioning for public sale the NAIA Pasay properties.

Court of Appeals dismissed the petition and upheld the power of City of Pasay to impose and collect realty taxes on the NAIA Pasay properties. MIAA filed a motion for reconsideration.

THE ISSUE

Whether or not the NAIA Pasay properties of MIAA are exempt form real property tax.

SUPREME COURT’S RULING

Manila International Airport Authority (MIAA) is a government “instrumentality" vested with corporate powers pursuant to Section 2 (10) of the Introductory Provisions of the Administrative Code. As a government instrumentality, MIAA is not subject to any kind of tax by local governments.

Hence, Ninoy Aquino International Airport (NAIA) Pasay properties of the Manila International Airport Authority (MIAA) is EXEMPT from real property tax imposed by the City of Pasay, except for the portions that MIAA has leased to private parties.