Case Digest (G.R. No. 81541)
Facts:
In Angeles University Foundation v. City of Angeles, petitioner Angeles University Foundation (AUF), a non-stock, non-profit educational institution created under Republic Act No. 6055, sought a refund of P 826,662.99 paid under protest for building permit and related fees, as well as real property taxes. In August 2005, AUF applied for a building permit to construct an 11-storey Medical Center on its Angeles City campus. The City Building Official assessed P 126,839.20 for the permit fee and the City Planning and Development Office imposed a locational clearance fee of P 238,741.64. Citing Department of Justice Opinions (Nos. 157, s. 1981; 147, s. 1982) affirmed by DOJ Secretary Gonzalez, petitioner claimed exemption under RA 6055, reminding respondents of prior permits granted without fees. After the City Treasurer and the Bureau of Local Government Finance reaffirmed the DOJ ruling, respondents nevertheless refused the permit and petitioner paid fees for building, electrical,Case Digest (G.R. No. 81541)
Facts:
- Background of Petitioner
- Angeles University Foundation (AUF) established May 25, 1962; converted to non-stock, non-profit educational foundation under R.A. 6055 on December 4, 1975.
- AUF seeks to expand its main campus in Angeles City, Pampanga.
- Permit Application and Fee Assessment
- August 2005: AUF files for building permit to construct an 11-storey Medical Center; City Building Official issues assessment of ₱126,839.20 and City Planning Office issues locational clearance fee of ₱238,741.64.
- AUF claims exemption under DOJ Opinions Nos. 157 (s. 1981) and 147 (s. 1982), previously applied to AUF’s IT Center (2000) and Professional Schools building (2004).
- Administrative Proceedings
- City Treasurer refers exemption query to BLGF and DOJ; DOJ (Sec’y Raul Gonzalez) reaffirms exemption; BLGF defers to DOJ.
- Respondents refuse permit issuance; AUF pays under protest:
- Municipal fees (building, electrical, locational clearance, fire code): ₱645,906.84
- Real property taxes (basic, SEF, locational clearance): ₱130,930.64
- Total paid: ₱826,662.99; permits subsequently issued; refund requests denied June and August 2006.
- Trial Court Proceedings
- August 31, 2006: AUF files complaint for refund with 12% interest and attorney’s fees; respondents argue fees regulatory, R.A. 6055 repealed by National Building Code (P.D. 1096), and dormitory use disqualifies real property tax exemption.
- September 21, 2007: RTC rules AUF exempt from building permit and other fees; orders refund of ₱826,662.99 plus interest, attorney’s fees ₱70,000, litigation costs.
- Court of Appeals Decision
- July 28, 2009: CA reverses RTC; holds R.A. 6055 exemption limited to income tax and property tax on exclusively educational property; building permit fees are regulatory charges, not covered; no proof of excessive fees; real property not exclusively used.
- October 12, 2009: Motion for reconsideration denied; AUF elevates case to Supreme Court under Rule 45.
Issues:
- Is AUF exempt from payment of building permit and related fees under the National Building Code despite R.A. 6055 exemption clause?
- Is AUF’s parcel of land, occupied by informal settlers, exempt from real property tax as “actually, directly and exclusively used” for educational purposes?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)