THE SUPREME Court has ordered the Pasay City government to stop imposing real estate tax on the properties of state-owned Light Rail Transit Authority (LRTA).
In a 33-page decision on June 28 and made public on Nov. 8, the SC full court also ordered the city government to void the previous public auctions over the train operator’s buildings, machinery, carriageways, and terminal stations.
“Therefore, being properties of public dominion owned by the Republic, there is no doubt that the LRT railroads and terminals are expressly exempt from real estate tax under Section 234 of the Local Government Code,” according to the ruling penned by Associate Justice Ramon Paul L. Hernando. LRTA argued that it is a government organization created to provide a necessary public service, which makes it exempt from real property tax.
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