Abra Valley College v.

Aquino (162 SCRA 106 [1988])

FACTS: Petitioner, an educational corporation and institution of higher learning duly incorporated with the Securities and Exchange Commission in 1948, filed a complaint to annul and declare void the Notice of Seizure and the Notice of Sale of its lot and building located at Bangued, Abra, for non-payment of real estate taxes and penalties amounting to P5,140.31. Said Notice of Seizure by respondents Municipal Treasurer and Provincial Treasurer, defendants below, was issued for the satisfaction of the said taxes thereon. The parties entered into a stipulation of facts adopted and embodied by the trial court in its questioned decision. The trial court ruled for the government, holding that the second floor of the building is being used by the director for residential purposes and that the ground floor used and rented by Northern Marketing Corporation, a commercial establishment, and thus the property is not being used exclusively for educational purposes. Instead of perfecting an appeal, petitioner availed of the instant petition for review on certiorari with prayer for preliminary injunction before the Supreme Court, by filing said petition on 17 August 1974. ISSUE: Whether or not the lot and building are used exclusively for educational purposes. HELD: Section 22, paragraph 3, Article VI, of the then 1935 Philippine Constitution, expressly grants exemption from realty taxes for cemeteries, churches and parsonages or convents appurtenant thereto, and all lands, buildings, and improvements used exclusively for religious, charitable or educational purposes. Reasonable emphasis has always been made that the exemption extends to facilities which are incidental to and reasonably necessary for the accomplishment of the main purposes. The use of the school building or lot for commercial purposes is neither contemplated by law, nor by jurisprudence. In the case at bar, the lease of the first floor of the building to the Northern Marketing Corporation cannot by any stretch of the imagination be considered incidental to the purpose of education. The test of exemption from taxation is the use of the property for purposes mentioned in the Constitution. The decision of the CFI Abra (Branch I) is affirmed subject to the modification that half of the assessed tax be returned to the petitioner. The modification is derived from the fact that the ground floor is being used for commercial purposes (leased) and the second floor being used as incidental to education (residence of the director).

Pascual v. Secretary of Public Works and Communications (G.R. No. L-10405)

25

JUL

FACTS: Pascual, in his official capacity as the Provincial Governor of Rizal, petitioned for a writ of certiorari against the dismissal of the case and dissolving of the preliminary injunction held by the Court of the First Instance. Petitioner prayed for that RA #920 be declared null and void, that the

alleged Deed of Donation made by Zulueta be declared unconstitutional. Petitioner also prayed for an injunction enjoining Secretary of Public Works and Communications, Director of Public Works and Highways and the disbursing officers of the latter department from making and securing any further release of funds for the said road project. RA# 920 contained an item appropriating P85,000.00 which the petitioner alleged that it was for the construction of roads improving the private property of Jose Zuleta, a member of the Senate. ISSUES: 1. Whether or not RA # 920 is unconstitutional. 2. Whether or not Pascual has the legal capacity or to sue. HELD: 1. RA #920 is unconstitutional because the Congress is without power to appropriate public revenue for anything but public purpose. 2. Pascual has the personality to sue as a taxpayer recognizing the right of the taxpayer to assail the constitutionality of a legislation appropriating public funds.