Water utilities win Bulacan property tax case

THE Court of Tax Appeals has issued a final resolution shielding Metro Manila’s water utilities from a Bulacan tax bill, ruling that the Municipality of Norzagaray had no authority to levy real property taxes on the two companies.

The resolution effectively ordered the cancellation of P357.11 million in real property tax assessments against Manila Water Co., Inc. and Maynilad Water Services, Inc.

In a decision promulgated on April 30, the tax court, sitting en banc, affirmed that the water concessionaires are not liable for the assessments dating from 1998-2005.

The ruling, written by Associate Justice Marian Ivy F. Reyes-Fajardo, rejected the legal authority of Norzagaray, where Angat dam is located, to collect such taxes.

The court noted that under Sections 232 and 235 of the Local Government Code, only provinces, cities, or municipalities within the Metropolitan Manila Area are authorized to levy such taxes on the utilities. — Erika Mae P. Sinaking