THE office of the city assessor headed by Nelson Parreno is currently conducting inventory and inspection of all electric posts or poles and electric meters owned by private power distributor Panay Electric Company Inc. (Peco) within the jurisdiction of Iloilo City.
Peco is engaged in power distribution in Iloilo City and owns the electric posts which cable and television companies also paid rent as their transmission lines.
The Local Government Code of 1991 defines “Machinery” as machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may or may not be attached, permanently or temporarily, to the real property that needs to be paid in real property taxes to LGU.
Similarly, A decision by the Supreme Court dated August 5, 2015 in the case of Manila Electric Company vs. The City Assessor and City Treasurer of Lucena City showed that the local government unit (LGU) may demand payment of real property taxes by the energy distributor.
Pursuant to the recent SC decision, the following facilities such as transformers, electric posts or poles, transmission lines, insulators and electric meters, may qualify as “Machinery” and are not exempted from the payment of real property tax under the Local Government Code.
Peco Vice President Randy Pastolero said the taxes that may incur the power distribute on company may not be included in this year’s billing but probably by next year.
The Energy Regulatory Commission will have to conduct a public hearing on this in order to decide if the real property taxes be incorporated in the customer’s billing.