G.R. No.

106041 January 29, 1993

BENGUET CORPORATION v. Central Board of Assessment Appeals, Board of
Assessment Appeals of Zambales, Provincial Assessor of Zambales, Province
of Zambales, and Municipality of San Marcelino
CRUZ, J.:

FACTS:
Benguet Corporation built a tailings dam to receive and retain wastes and
water coming from its mine. The realty tax assessment imposed on the dam and
land amounts to ₱ 11,319,304.00.
In 1985, the Provincial Assessor of Zambales and the CBAA raised
that both the dam and land were subject to realty tax. Benguet Corporation
insists that the dam cannot be subject to a realty tax because it does not
constitute an “assessable improvement” on the mine because it has no value
separate from and independent of the mine.
On the other hand, the SolGen argues that the dam is an assessable
improvement because it enhances the value and utility of the mine.
ISSUE:
Is the dam considered as a real/immovable property?
RULING:
The dam is considered as a real/immovable property because under
paragraph 1 and 3 of Article 415 of the New Civil Code of the Philippines, it states
that (1) land, buildings, roads, and constructions of all kinds adhered to the soil
and (3) everything attached to an immovable in a fixed manner, in such a way
that it cannot be separated therefrom without breaking the material or
deterioration of the object, are all considered to part or parts of immovable
property.
In this case, the dam is an immovable or real property because the dam is
a construction attached to the land in a fixed manner. Since the dam is an
immovable property which cannot be separated or detached from the land
without breaking the dam or causing destruction on the land where the dam is
attached. Hence, the dam is taxable under the Real Property Tax Code.