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Lung Center of The Philippines Vs Quezon City

The Lung Center of the Philippines claimed exemption from real property taxes on the basis that it is a charitable institution. The Quezon City assessor denied the exemption. The Supreme Court ruled that: 1) The Lung Center is a charitable institution as established by Presidential Decree 1823 to provide medical services to the public, including the poor. 2) However, only portions of its real property actually used for charitable purposes directly serving patients are exempt from taxes. Property leased to private entities is not exempt.

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947 views2 pages

Lung Center of The Philippines Vs Quezon City

The Lung Center of the Philippines claimed exemption from real property taxes on the basis that it is a charitable institution. The Quezon City assessor denied the exemption. The Supreme Court ruled that: 1) The Lung Center is a charitable institution as established by Presidential Decree 1823 to provide medical services to the public, including the poor. 2) However, only portions of its real property actually used for charitable purposes directly serving patients are exempt from taxes. Property leased to private entities is not exempt.

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christine
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LUNG CENTER OF THE PHILIPPINES VS QUEZON CITY

Posted by kaye lee on 5:15 PM


G.R. No. 144104, June 29, 2004 [Constitutional Law - Article VI: Legislative
Department; Taxation ]

FACTS:
Petitioner is a non-stock, non-profit entity established by virtue of PD No.
1823, seeks exemption from real property taxes when the City Assessor
issued Tax Declarations for the land and the hospital building. Petitioner
predicted on its claim that it is a charitable institution. The request was
denied, and a petition hereafter filed before the Local Board of Assessment
Appeals of Quezon City (QC-LBAA) for reversal of the resolution of the
City Assessor. Petitioner alleged that as a charitable institution, is
exempted from real property taxes under Sec 28(3) Art VI of the
Constitution. QC-LBAA dismissed the petition and the decision was
likewise affirmed on appeal by the Central Board of Assessment Appeals of
Quezon City. The Court of Appeals affirmed the judgment of the CBAA.

ISSUE:
1. Whether or not petitioner is a charitable institution within the context of
PD 1823 and the 1973 and 1987 Constitution and Section 234(b) of RA 7160.

2. Whether or not petitioner is exempted from real property taxes.

RULING:
1. Yes. The Court hold that the petitioner is a charitable institution within
the context of the 1973 and 1987 Constitution. Under PD 1823, the
petitioner is a non-profit and non-stock corporation which, subject to the
provisions of the decree, is to be administered by the Office of the President
with the Ministry of Health and the Ministry of Human Settlements. The
purpose for which it was created was to render medical services to the
public in general including those who are poor and also the rich, and
become a subject of charity. Under PD 1823, petitioner is entitled to receive
donations, even if the gift or donation is in the form of subsidies granted by
the government.
2. Partly No. Under PD 1823, the lung center does not enjoy any property
tax exemption privileges for its real properties as well as the building
constructed thereon.
The property tax exemption under Sec. 28(3), Art. VI of the Constitution of
the property taxes only. This provision was implanted by Sec.243 (b) of RA
[Link] provides that in order to be entitled to the exemption, the lung
center must be able to prove that: it is a charitable institution and; its real
properties are actually, directly and exclusively used for charitable
purpose. Accordingly, the portions occupied by the hospital used for its
patients are exempt from real property taxes while those leased to private
entities are not exempt from such taxes.

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