MIAA vs.

CA public dominion cease to be for public use and service,

- The Officers of Paranaque City sent notices to
MIAA due to real estate tax delinquency which
MIAA then settled some of the amount.
- When MIAA failed to settle the entire amount,
the officers of Paranaque city threatened to levy
and subject to auction the land and buildings of
MIAA, which they did.
they form part of the patrimonial property of the State.
2. The court held that the land and buildings of MIAA
are part of the public dominion. Since the airport is
devoted for public use, for the domestic and
international travel and transportation. Even if MIAA
charge fees, this is for support of its operation and for
regulation and does not change the character of the land
and buildings of MIAA as part of the public dominion.

- MIAA claims that although the charter provides
that the title of the land and building are with
MIAA, still the ownership is with the Republic
of the Philippines.
- MIAA also contends that it is an
instrumentality of the government and as such
exempted from real estate tax. So in other
words, MIAA's contention and defense lie
solely on the principle that the land and
buildings of MIAA are of public dominion and
therefore cannot be subjected
to levy and auction sale.
As part of the public dominion the land and buildings of
MIAA are outside the commerce of man. To subject
them to levy and public auction is contrary to public
policy. Unless the President issues a proclamation
withdrawing the airport land and buildings from public
use, these properties remain to be of public dominion
and are inalienable. As long as the land and buildings
are for public use the ownership is with the Republic of
the Philippines.

- On the other hand, the officers of Paranaque

City claim that MIAA is a GOCC (government
owned and controlled corporation) therefore
not exempted to real estate tax.

ISSUE:

1. Whether or not MIAA is an instrumentality of

the government and not a government owned
and controlled corporation and as such
exempted from tax.
2. WON the land and buildings of MIAA are part
of the public dominion and thus cannot be the
subject of levy and auction sale.

RULING:

1. Under the Local government code,

(GOCCs) government owned and controlled
corporation are NOT exempted from real estate tax.

MIAA is not a government owned and controlled

corporation, for to become one MIAA should either be
a stock or non-stock corporation. MIAA is not a stock
corporation for its capital is not divided into shares. It is
not a non-stock corporation since it has no members.

MIAA is an instrumentality of the government vested

with corporate powers and government functions.
Under the civil code, property may either be under
public dominion or private ownership. Those
under public dominion are owned by the State and are
utilized for public use, public service and for the
development of national wealth. When properties under