BENGUET CORP v.

CBAA
Cruz, J.
Zambales
1993
FACTS:
-RPT of P11,319,304 was imposed on Benguet Corps tailings dam and land thereunder
-Provincial Assessor of Zambales assessed properties as taxable improvements
-appeal to BOAA of Zambales dismissed due to Benguet Corps failure to pay RPT that were due during pendency of
appeal
-CBAA: for purposes of taxation, dam is RP. It falls under A415 par (a) and (b) NCC.
-adhered to soil, cannot be separated without causing destruction to land to which it is attached
-hence it is taxable under Sec38 of RPTC
-Benguet Corp: tailings dam not subject to RPT because it is not an improvement upon the land
-does not dispute that it may be considered RP under A415
-BUT still not taxable as a separate and independent property because it does not constitute and
assessable improvement on the mind although a considerable sum may have been spent in constructing and
maintaining it
-SolGen: assessable improvement. Enhances value and utlitiy of mine. Primary function: receive, retain and hold
water coming from mine operations
-Caltex v. CBAA necessary to op = improvements
-MERALCO v. CBAA enhances utility, degree of permanence
-MERALCO Sec Ind Corp v. XBAA attached to land
-Standard Oil Co. of New Jersey v. Atlantic City permanent improvements
ISSUE: WON mine tailings dam is RP? YES
HELD:
RPTC does not carry definition of RP. In absence of such definition, we apply A415 (see par 1 and 3)
-tailings dam does not fall under exemption in Sec 3 Assessment Law
-Is dam an improvement under Sec 3(k) of RPTC?
-Improvement: also defined as artificial alterations of physical condition on the ground that are reasonably
permanent in character
-Even without tailings dam, Benguet Corps operations can still be carried out (primary function: merely to rcv and
retain wastes and water from mine)
-Therefore: to decide whether a structure constitutes an improvement that would make it RP would depend upon
the degree of permanence intended in its construction and use
-permanent: not perpetually, but only until purpose to which it is devoted has been accomplished;
sufficient that it is intended to remain for as long as land to which it is attached to is used for said purpose
-CONCLUSION: Dam falls within definition of IMPROVEMENT permanent in character, enhances both utlitiy and
value of mine. Its immovable nature makes it fall under A415.