G.R. No. 155650 – 528 Phil. 181 – 495 SCRA 591 – Political Law – Constitutional Law – State Immunity from Suit – Suit Against Government Instrumentalities
The Manila International Airport Authority (MIAA) was created under E.O. No. 903 issued on 21 July 1983. It operates the Ninoy Aquino International Airport. Under its name are several parcels of land located in Parañaque. In 2001, MIAA received final notices of delinquent real estate taxes from Parañaque. In 2001, MIAA’s properties were levied by the city and an auction sale was scheduled. MIAA elevated the matter to the Supreme Court. It argued that as per its charter, it is exempt from taxation. On this, Parañaque argued that under the Local Government Code, GOCCs are not exempt from real property taxation.
ISSUE: Whether or not MIAA is exempt from real property tax.
HELD: Yes. MIAA is not a GOCC. It is neither a stock corporation nor a non-stock corporation. MIAA is not a stock corporation because it has no capital stock divided into shares. MIAA has no stockholders or voting shares. MIAA is also not a non-stock corporation because it has no members.
MIAA is a government instrumentality vested with corporate powers to perform efficiently its governmental functions. MIAA is like any other government instrumentality, the only difference is that MIAA is vested with corporate powers.
When the law vests in a government instrumentality corporate powers, the instrumentality does not become a corporation. Unless the government instrumentality is organized as a stock or non-stock corporation, it remains a government instrumentality exercising not only governmental but also corporate powers. Thus, MIAA exercises the governmental powers of eminent domain, police authority and the levying of fees and charges. As a government instrumentality, it is further immune from suit.
