26) GR No.

L-47252 April 18, 1941

THE APOSTOLIC PREFECT OF THE MOUNTAIN PROVINCE, plaintiff-appellant,

v.
THE TREASURER OF THE CITY OF BAGUIO, defendant-appealed.

DOCTRINE: Debt or ordinary obligation

FACTS: Facts: The Apostolic Prefect is a corporation sole, of religious character,

organized under the Philippine laws and with residence in Baguio.

Baguio City imposed a special assessment against properties, including the Apostolic
Prefect, which benefits from the construction of its drainage and sewerage system.
The Apostolic Prefect made payment under protest for the year 1937. It contended
that its properties should be free of tax as provided for by the Constitution.

ISSUE: Whether the Apostolic Prefect is exempt from paying special assessment.

HELD: In its broad meaning, tax includes both general taxes and special
assessment. Yet, 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. A special
assessment (1) can be levied only on land; (2) cannot (at least in most states) be
made a personal liability of the person assessed; (3) is based wholly on benefits; and
(4) is exceptional both as to time and locality. Neither the decree nor the Constitution
exempt the Apostolic Prefect from payment of said special assessment.