Case Digest - Local Taxation

Mactan Cebu (MCIAA) vs. Marcos

GR 120082 September 11, 1996 261 SCRA 667
Davide Jr., .: (CJ)
FACTS:
Mactan Cebu International Airport Authority (MCIAA) was created to principally undertake to economical,
efficient and effective control, management and supervision of the MactanInternational Airport and such
other airports as may be established in the province of Cebu Section 14 of its charter excempts the
Authority from payment of realty taxes but in 1994, the City Treasurer demanded payment for realty taxes on
several parcels of land belonging to the other. MCIAA filed a petition in RTC contending that, by nature of its
powers and functions, it has the same footing of an agency or instrumentality of the national government. The
RTC dismissed the petition based on Section 193 & 234 of the local Government Code or R.A. 7160. Thus this
petition.
ISSUE:
Whether or not the MCIAA is excempted from realty taxes?
RULING:
With the repealing clause of RA 7160 the tax exemption provided. All general and special in the charter of the
MCIAA has been expressly repeated. It state laws, acts, City Charters, decrees, executive orders,
proclamations and administrative regulations, or part of parts thereof which are inconsistent with any of the
provisions of the Code are hereby repeated or modified accordingly. Therefore the SC affirmed the decision
and order of the RTC and herein petitioner has to pay the assessed realty tax of its properties effective
January 1, 1992 up to the present.