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    Caltex Phil., Inc. v. Board of Assessment Appeals

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    Jamiah Obillo Hulipas
    This case determines whether gas station equipment and machinery installed by Caltex on leased land are subject to real property tax. The equipment includes underground tanks, elevated water and fuel tanks, pumps, compressors and hoists. The city assessor ruled they were taxable realty, while the board of tax appeals said they were personalty. The central board of assessment appeals affirmed they were real property. Caltex appealed, arguing the equipment was movable. The Supreme Court ruled the equipment was subject to realty tax as it was necessary to the gas station's operation and permanently attached.

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    Caltex Phil., Inc. v. Board of Assessment Appeals

    Uploaded by

    Jamiah Obillo Hulipas
    120 views11 pages
    This case determines whether gas station equipment and machinery installed by Caltex on leased land are subject to real property tax. The equipment includes underground tanks, elevated water and fuel tanks, pumps, compressors and hoists. The city assessor ruled they were taxable realty, while the board of tax appeals said they were personalty. The central board of assessment appeals affirmed they were real property. Caltex appealed, arguing the equipment was movable. The Supreme Court ruled the equipment was subject to realty tax as it was necessary to the gas station's operation and permanently attached.

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    This case determines whether gas station equipment and machinery installed by Caltex on leased land are subject to real property tax. The equipment includes underground tanks, elevated water and fuel tanks, pumps, compressors and hoists. The city assessor ruled they were taxable realty, while the board of tax appeals said they were personalty. The central board of assessment appeals affirmed they were real property. Caltex appealed, arguing the equipment was movable. The Supreme Court ruled the equipment was subject to realty tax as it was necessary to the gas station's operation and permanently attached.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    120 views11 pages

    Caltex Phil., Inc. v. Board of Assessment Appeals

    Uploaded by

    Jamiah Obillo Hulipas
    This case determines whether gas station equipment and machinery installed by Caltex on leased land are subject to real property tax. The equipment includes underground tanks, elevated water and fuel tanks, pumps, compressors and hoists. The city assessor ruled they were taxable realty, while the board of tax appeals said they were personalty. The central board of assessment appeals affirmed they were real property. Caltex appealed, arguing the equipment was movable. The Supreme Court ruled the equipment was subject to realty tax as it was necessary to the gas station's operation and permanently attached.

    Copyright:

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    of 11

    CALTEX

    PHILIPPINE,
    INC
    V.
    BOARD OF
    ASSESSMENT
    APPEALS
    (G.R. NO. L-50466 MAY 31, 1982)
    This case is about the realty tax
    on machinery and equipment
    installed by Caltex (Philippines) Inc.
    in its gas stations located on leased
    land.

    FACTS:
    The
    Said machines
    machines and andequipment
    equipment
    are
    loaned by Caltex
    consists to gas station operators
    of underground tanks,
    under an appropriate
    elevated lease water
    tank, elevated agreement or
    tanks,
    receipt. It is stipulated in the lease
    water tanks, gasoline pumps,
    contract that the operators, upon
    computing pumps,
    demand, shall water
    return to pumps,
    Caltex car
    the
    washer,
    machinescarandhoists, truck hoists,
    equipment in goodair
    compressors
    condition as and
    whentireflators.
    received, ordinary
    wear and tear excepted.
    The lessor of the land, where the gas
    station is located, does not become the
    owner of the machines and equipment
    installed therein.
    The city assessor of Pasay City
    characterized the said items of gas station equipment
    and machinery as taxable realty.

    The city board of tax appeals


    ruled that they are personalty.

    The assessor appealed to the Central Board of


    Assessment Appeals which ruled that the said
    machines and equipment are real property under the Real Property
    Tax Code, Presidential Decree No. 464, and the decision was
    reiterated by the Board in its resolution denying Caltex's motion for
    reconsideration.
    Caltex filed this certiorari petition
    wherein it prayed for the setting
    aside of the Board's decision and for
    a declaration that the said machines
    and equipment are personal property
    not subject to realty tax.
    Whether or not the pieces of gas
    station equipment and machinery
    already enumerated are subject
    to realty tax.

    ISSUE:
    The said equipment and machinery, as
    YES. The pieces
    appurtenances to ofthe gas equipment
    gas station station and
    machinery are subject to realty tax.
    building or shed owned by Caltex (as to
    which it is subject to realty tax) and
    which fixtures are necessary to the
    operation of the gas station, for without
    them the gas station would be useless,
    and which have been attached or

    RULING:
    affixed permanently to the gas station
    site or embedded therein, are taxable
    improvements and machinery within the
    meaning of the Assessment Law and
    the Real Property Tax Code
    Under the
    Caltex invokes
    Realtythe
    Taxrule
    Code,
    in the
    improvements
    case of Davaoon land
    Sawmill
    are
    Co. v. Castillo
    commonly taxed
    thatasmachinery
    realty evenwhich
    though
    is movable
    for someinpurposes
    its nature
    only becomes
    they might be considered
    immobilized personalty.
    when placed On inthea other
    plant byhand,
    the
    owner of the property
    “machinery” embraces
    or plant but
    “machines,
    not when so mechanical
    placed by a
    tenant, a usufructuary,
    contrivances, instruments, or appliances
    any person and havingapparatus
    only a
    temporarytoright,
    attached the real
    unless
    estate.” 
    such person acted as the agent of
    the owner. However, the Supreme Court ruled that the issue
    being raised in the case of the Davao Sawmill Case is
    different from the issue being raised in this instant case.
    This case is also easily distinguishable from Board of
    Assessment Appeals vs. Manila Electric Co., 119 Phil. 328, where
    Nor are
    Meralco's Caltex's
    steel towersgas station
    were equipment
    considered andwithin
    poles machinery the
    the meaning of
    same as
    paragraph 9 oftools
    its and equipment
    franchise whichinexempts
    the repairitsshop of from
    poles a bustaxation.
    The company
    steel towerswhich wereconsidered
    were held to be personal
    personalty property
    becausenot they were
    subject
    attached to realtymetal
    to square tax (Mindanao
    frames by Bus Co. vs.ofCity
    means Assessor,
    bolts and could be
    moved116 Phil.place
    from 501).to place when unscrewed and dismantled.
    PREPARED BY: JAMIAH HULIPAS

    THANK YOU

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