City of Davao vs RTC, Branch XII, Davao City

Facts: Petitioner, the City of Davao, sent a Notice of Public Auction scheduling the public bidding of GSIS
properties located in Matina and Ulas, Davao City for its failure to pay the amount of ₱ 295,721.61 for
realty taxes from the year 1992 to 1994.

 GSIS then filed a petition for Certiorari, Prohibition, Mandamus and/or Declaratory Relief before
respondent, RTC, Branch XII, Davao City.
 The RTC then rendered its decision in favor of GSIS. Even though the enactment of the Local
Government Code in 1992 withdrawn the real property tax exemption of government owned and
controlled corporations (GOCC’s), GSIS was exempted from such provision. In justifying its
decision, the RTC cited section 33 of PD No. 1146 (Revised Government Insurance Act of 1977) as
amended by PD 1981 which declared the need for an express and categorical repeal of the tax
exemption to the assets, revenues, including the accruals and benefits paid to that of the GSIS.
 However, the City of Davao assailed such ruling as the enactment of the Local Government Code
(LGC) in 1992 had already made the GSIS and all other GOCC’s subject to the payment of realty
taxes. Also, the petitioner pointed out that under Section 534(f) of the LGC, special laws such as
those of PD 1146 as amended, are already subject for repeal or modifications.

Issue: Does PD No.1146 as amended by PD 1981 exclude the GSIS from the payment of taxes?

Ruling: No, PD No.1146 as amended does not exclude the GSIS from the payment of taxes as the said
law was impliedly repealed by the LGC. In providing justification for its ruling, the Supreme Court cited
Sections 193 and 234 of the LGC. To wit:

Section 193. … tax or incentives granted to, or enjoyed by all persons, whether natural or
juridical including government-owned and controlled corporations … are hereby withdrawn
upon the effectivity of this Code.

Section 234. …. any exemption from the payment of real property tax previously granted to,
or presently enjoyed by, all persons, whether natural or juridical including government-owed
and controlled corporations are hereby withdrawn upon the effectivity of this Code.

Furthermore, the Court opined and lifted from the ruling of Duarte v Dade that ‘… This legislature
cannot bind a future legislature to a particular mode of repeal. It cannot declare in advance the intent
of subsequent legislatures or the effect of subsequent legislation upon existing statutes.’