SC affirms MWSS exemption from real property taxes

THE Supreme Court (SC) ruled that the Metropolitan Waterworks and Sewerage System (MWSS) is exempt from real property taxes by virtue of its being a “government instrumentality vested with corporate powers” as provided by law.

The cited Executive Order 596 of thenpresident Maria Gloria M. Macapagal-Arroyo and Republic Act No. 10149 or the Government-Owned and Controlled Corporation Governance Act of 2011.

In the High Court’s decision dated on Jan. 13 and made public on March 19, the SC reversed the decisions of the Court of Appeals dated June 3 and Dec. 11, 2014 that MWSS was liable to pay the Pasay City government for real property taxes worth P166,629.36 for taxable year 2008.

“The real properties of the [MWSS] located in Pasay City are declared exempt from real property tax,” the court said in its 13-page decision.

The SC further voided all other tax assessments issued to MWSS. It added that its decision does not stop Pasay City from collecting the said real property taxes from the private concessionaires of MWSS. The MWSS has a concession agreement with Maynilad Water Services, Inc. for Metro Manila’s west zone that includes Pasay City.

The SC further said that the ruling does not automatically grant MWSS refunds of its earlier real property tax payments as the agency has to file a written claim for refund with the city treasurer within two years of the SC decision according to Section 253 of the Local Government Code of 1991 to do as such.