Apostolic Prefect of Mountain Province vs.

City Treasurer of Baguio City

GR 47252, 18 April 1941 En Banc, Imperial, J.

Doctrine:

A charge imposed only on property owners benefited is a special assessment rather

than a tax notwithstanding the statute calls it a tax. A special assessment is not, strictly
speaking, a tax; and neither the decree nor the Constitution exempt the Apostolic
Prefect from payment of said special assessment.

Facts:

The Apostolic Prefect is a corporation sole, of religious character, organized under the
Philippine laws, and with residence in Baguio, The City imposed a special assessment
against properties within its territorial jurisdiction, including those of the Apostolic
Prefect, which benefits from its drainage and sewerage system. The Apostolic Prefect
contends that its properties should be free of tax.

Issue: Is the Apostolic Prefect, as a religious entity, exempt from the payment of the
special assessment?

Held:

NO.

In its broad meaning, tax includes both general taxes and special assessment. Yet
actually, there is a recognized distinction between them in that assessment is confined
to local impositions upon property for the payment of the cost of public improvements in
its immediate vicinity and levied with reference to special benefits to the property
assessed. A special assessment is not, strictly speaking, a tax; and neither the decree
nor the Constitution exempt the Apostolic Prefect from payment of said special
assessment.

Furthermore, arguendo that exemption may encompass such assessmen, the Apostolic
Prefect cannot claim exemption as it has not proven the property in question is used
exclusively for religious purposes; but that it appearsthat the same is being used to
other non-religious purposes. Thus, the Apostolic Prefect is required to pay the special
assessment.