Councilors: Utility companies must pay taxes

Tuesday, May 24, 2011

UTILITY companies using portions of public property must pay real property taxes (RPT), city officials said.

Income derived from leasing poles should also be shared with the City Government through payment of business taxes here, city officials added.

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Utility and telecommunication companies were called Monday to the City Council for their inputs regarding a proposed ordinance, which aims to impose RPTs on utilities that do not pay these taxes.

Councilors focused on the Benguet Electric Cooperative (Beneco), whose officials admit they are not paying RPTs for areas where their poles are standing.

Beneco internal auditor Luz Balisong said she has yet to review an assessment of how much should be paid for Beneco’s building at the DPS compound.

As of March 2006, the City Assessor’s Office revealed Beneco is supposed to pay the City Government P32,761.40 in RPT.

However, a representative of City Assessor Augustus Medina said this assessment was cancelled after Beneco officials cited a regional trial court decision regarding the case of an electric utility in Dagupan which said electric poles should not be subject to taxation.

A condition in the cancellation of assessment is for Beneco to submit a certificate of final judgment. None was submitted until today, prompting city officials to ask the City Assessors’ Office to re-assess Beneco’s obligations to the City Government.

Balisong said they contested the City Government’s assessment saying electric poles are not considered real properties. She said those classified as real properties should fall within the definition of the Civil Code of the Philippines.

Pending final resolution by the court, councilors agreed Beneco and other utilities must pay even “under protest.”

For those leasing their poles to other utilities, city officials also said they should secure business permits here.