G.R. No. L-18946 December 26, 1964
MUNICIPAL BOARD, in representation of the City of Cebu, petitioner, vs. COURT OF TAX APPEALS, BOARD OF ASSESSMENT APPEALS, Cebu City and AGUSTIN JEREZA, for and in behalf of the University of Southern Philippines Foundation, respondents.

FACTS

The University of Southern Philippines Foundation, through its president Agustin Jereza, applied to the City Assessor of Cebu for the exemption from real property taxation of several parcels of land it leased from various owners for school purposes. The City Assessor granted exemption for some lots but denied it for Lots Nos. 313, 317, 340, 341, 342, and 460-B, citing the payment of rentals to their owners. The University appealed this partial denial to the Board of Assessment Appeals of Cebu City, which then granted exemption to Lots Nos. 313, 340, 341, 342, and 460-B. The Municipal Board, representing the City of Cebu, appealed this decision to the Court of Tax Appeals. The Court of Tax Appeals dismissed the appeal, ruling that the City of Cebu, represented by its Municipal Board, could not appeal from the decision of the Board of Assessment Appeals. It based this on the theory that the Board of Assessment Appeals is an instrumentality of the City and that the City, as a governmental agency, is not among the entities authorized to appeal under Section 11 of Republic Act No. 1125 . The Municipal Board then appealed this dismissal to the Supreme Court.

ISSUE

Whether or not the City of Cebu can appeal from the decision of the Board of Assessment Appeals under Section 11 of Republic Act No. 1125 .

RULING

Yes. The Supreme Court set aside the decision of the Court of Tax Appeals and remanded the case for further proceedings. The Court held that the City of Cebu, as a political body corporate created by its charter ( Commonwealth Act No. 58 ), possesses the capacity to sue and be sued and is authorized to levy real estate taxes for its support. The decision of the Board of Assessment Appeals exempting the lots from taxation adversely affects the City of Cebu, as it stands to lose the corresponding tax revenue. The Court cited its prior ruling in City of Manila vs. The Board of Assessment Appeals, which held that a city is a corporation adversely affected by such a decision. Furthermore, the Court found that the Municipal Board has the personality to represent the City in this suit, as Section 58 of the City’s charter vests it with the authority to appeal from the City Assessor to the Board of Assessment Appeals, indicating legislative intent for it to represent the City in such appeals.