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Saturday, January 07, 2006
Court saves airport from city takeover

The Court of Appeals (CA) 19th Division has stopped the Lapu-Lapu City Government from taking over the properties owned by the Mactan-Cebu International Airport Authority (MCIAA), by issuing a temporary restraining order.

The order grants a 60-day break for the MCIAA, from which the City Government is demanding P229.58 million in “delinquent” real property taxes.

Associate Justice Isaias P. Dicdican penned the order, with the concurrence of Associate Justices Ramon M. Bato Jr. and Apolinario D. Bruselas Jr.

MCIAA ran to the appeals court after Regional Trial Court Judge Benedicto Cobarde lifted a writ of preliminary injunction that protected the airport since Dec. 28, 2004.

Coabrde’s order paved the way for the Lapu-Lapu City Government to stake its claim to the airport properties.

In lifting the writ, Cobarde had ruled that City Ordinance 44 (the Omnibus Tax Ordinance) is a valid measure. It authorizes the City to collect tax at 1.5 percent from owners, administrators or executors of any real estate within its jurisdiction.

Transfer

Last month, City Attorney Vincent Joseph Lim said they have started consolidating the ownership of airport properties by having the Register of Deeds transfer land titles to the name of the City Government.

The transfer of ownership was based on the levy and auction of the airport’s real estate, including the passenger terminals and taxiway, on Dec. 10, 2003, after MCIAA failed to pay tax.

Since there were no bidders at the time of the auction, the City Government forfeited the properties in its favor.

The appeals court, however, is willing to listen to both MCIAA and the City Government on the tax dispute.

Cobarde, the City Government and City Treasurer Elena T. Pacaldo were ordered to file, within 10 days from receipt of the notice, a comment on why no writ of preliminary injunction should be issued. (EOB)

For Bisaya stories from Cebu. Click here.

(January 7, 2006 issue)
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