Title: MANILA INTERNATIONAL AIRPORT AUTHORITY vs.

COURT OF APPEALS

Facts: Manila International Airport Authority (MIAA) operates the Ninoy Aquino International
Airport (NAIA) Complex in Parañaque City. It received Final Notices of Real Estate Tax
Delinquency from the City of Parañaque. When MIAA failed to settle the amount due, the
officers of Paranaque City threatened to levy and subject to auction the land and buildings of
MIAA. MIAA sought for a Temporary Restraining Order from the CA but failed to do so within
the 60 days reglementary period. The petition was dismissed. MIAA sought for a temporary
restraining order from the Supreme Court a day before the public auction. The TRO was but
received by the Paranaque City officers 3 hours after the public auction

The City of Parañaque relies on the issued opinion by the Office of the Government Corporate
Counsel (OGCC) Opinion No. 061. The OGCC opined that the Local Government Code of
1991 withdrew the exemption from real estate tax granted to MIAA under Section 21 of the
MIAA Charter. Thus, MIAA cannot claim that the Airport Lands and Buildings are exempt from
real estate tax.

MIAA admits that the MIAA Charter has placed the title to the Airport Lands and Buildings in the
name of MIAA. However, MIAA points out that it cannot claim ownership over these properties
since the real owner of the Airport Lands and Buildings is the Republic of the Philippines. The
MIAA Charter mandates MIAA to devote the Airport Lands and Buildings for the benefit of the
general public. Since the Airport Lands and Buildings are devoted to public use and public
service, the ownership of these properties remains with the State. The Airport Lands and
Buildings are thus inalienable and are not subject to real estate tax by local governments

Issue: WON the Airport Lands and Buildings of MIAA are exempt from real estate tax under
existing laws.

Ruling: Yes, MIAA's Airport Lands and Buildings are exempt from real estate tax imposed by
local governments because MIAA is not a government-owned or controlled corporation but an
instrumentality of the National Government and thus exempt from local taxation.

MIAA is not a government-owned or controlled corporation under Section 2(13) of the

Introductory Provisions of the Administrative Code because it is not organized as a stock or
non-stock corporation. As a government instrumentality, MIAA is not subject to any kind of tax
by local governments under Section 133(o) of the Local Government Code. The exception to
the exemption in Section 234(a) does not apply to MIAA because MIAA is not a taxable entity
under the Local Government Code. Such exception applies only if the beneficial use of real
property owned by the Republic is given to a taxable entity.
Moreover, the real properties of MIAA are owned by the Republic of the Philippines and thus
exempt from real estate tax. Section 234(a) of the Local Government Code exempts from real
estate tax any "[r]eal property owned by the Republic of the Philippines."
This exemption should be read in relation with Section 133(o) of the same Code, which prohibits
local governments from imposing "[t]axes, fees or charges of any kind on the National
Government, its agencies and instrumentalities x x x." The real properties owned by the
Republic are titled either in the name of the Republic itself or in the name of agencies or
instrumentalities of the National Government. The Administrative Code allows real property
owned by the Republic to be titled in the name of agencies or instrumentalities of the national
government. Such real properties remain owned by the Republic and continue to be exempt.
from real estate tax.