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G.R. No. L-37251 August 31, 1981 CITY OF MANILA and CITY TREASURER, Petitioners-Appellants, Manila and ESSO PHILIPPINES, INC.,Respondents-Appellees. Aquino, J.
G.R. No. L-37251 August 31, 1981 CITY OF MANILA and CITY TREASURER, Petitioners-Appellants, Manila and ESSO PHILIPPINES, INC.,Respondents-Appellees. Aquino, J.
AQUINO, J.:
This case is about the legality of the additional one-half percent (%)
realty tax imposed by the City of Manila. chanroblesv irt ualawli bra ry chan robles v irt ual law l ibra ry
That maximum limit gave the municipal board of Manila the Idea of
fixing the realty tax at three percent. So, by means of Ordinance
No. 7125, approved by the city mayor on December 26, 1971 and
effective beginning the third quarter of 1972, the board imposed
an additional one-half percent realty tax. The ordinance reads: chanroble s virtual law l ib rary
After hearing, the trial court declared the tax ordinance void and
ordered the city treasurer of Manila to refund to Esso the said tax.
The City of Manila and its treasurer appealed to this Court under
Republic Act No. 5440 (which superseded Rule 42 of the Rules of
Court).chanroble svirtualawl ibra ry chan rob les vi rtual law lib rary
The only issue is the validity of the tax ordinance or the legality of
the additional one-half percent realty tax. chanroblesvi rt ualawlib ra ry chanrobles vi rt ual law li bra ry
Section 41 of the said Code reaffirms the one percent tax on real
property for the Special Education Fund in addition to the basic two
percent realty tax. chanro blesvi rt ualawlib ra ry chanrobles vi rt ual law li bra ry
While the 1949 Revised Charter of Manila fixed the realty tax at one
and a half percent, on the other hand, the 1968 Special Education
Fund Law definitively fixed three percent as the maximum real
property tax of which one percent would accrue to the Special
Education Fund. chanroblesvi rt ualawlib ra ry chanrob les vi rtual law lib rary
And the fact that the 1974 Real Property Tax Code specifically fixes
the real property tax at two percent confirms the prior intention of
the lawmaker to impose two percent as the realty tax proper. That
was also the avowed intention of the questioned ordinance. chanroble svirtualawl ibra ry chan rob les vi rtual law lib rary
In invalidating the ordinance, the trial court upheld the view of Esso
Philippines, Inc, that the Special Education Fund Law refers to a
contingency where the application of the additional one percent
realty tax would have the effect of raising the total realty tax to
more than three percent and that it cannot be construed as an
authority to impose an additional realty tax beyond the one percent
fixed by the said law. chanrob lesvi rtualaw lib rary cha nrob les vi rtua l law lib rary
At first glance, that appears to be a specious or reasonable
contention. But the fact remains that the city charter fixed the
realty tax at 1-% and the later law, the Special Education Fund Law,
provides for three percent as the maximum realty tax of which one
percent would be earmarked for the education fund. chanrob lesvirtualawl ibra ry chan roble s virtual law lib rary
SO ORDERED.
Justice Abad Santos is on leave. chanroble svirtualawl ibra ry chan rob les vi rtual law lib rary