Apostolic Prefect Of Mountain Province V City Treasurer Of Baguio City Gr No 47252.docx

Apostolic Prefect of Mountain Province v City Treasurer of Baguio City GR No 47252, April 18, 1941

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 from tax.

ISSUE: Is the Apostolic Prefect exempt from paying?

RULING: No, it is liable.

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 assessment, the Apostolic Prefect cannot claim exemption as it has not proven the property in question is used exclusively for religious purposes; but that it appears that the same is being used to other non-religious purposes.

Thus, the Apostolic Prefect is required to pay the special assessment.