Mandaluyong wins MRT property dispute

A Mandaluyong court has awarded to the Mandaluyong city government the elevated tracks and stations of the Metro Rail Transit along EDSA within the city’s boundaries after the MRT failed to pay P2 billion in real property taxes.

Judge Carlos Valenzuela of Mandaluyong Regional Trial Court Branch 213 ordered yesterday Sheriff Gerardo Umali to eject Metro Rail Transit Corp. (MRTC) and place the Mandaluyong city government in possession of “real properties forming part of the EDSA Metro Rail Transit” within the city’s jurisdiction.

“We therefore, commend you to place petitioner Mandaluyong city government in possession of the subject real properties forming part of the EDSA Metro Rail Transit III System covered under tax declaration No. D-013-10638 in the name of Mandaluyong City and eject the Metro Real Transit Corp. and all persons or entities claiming rights under it who are physically occupying the same,” read the court’s order.

Last July 30, the court ruled in favor of Mandaluyong’s petition for a writ of possession and awarded the stretch of railroad tracks and stations to the city government.

“Wherefore, foregoing premises considered, the instant petition for the issuance of a writ of possession is hereby granted,” read the court’s order.

“In view thereof, let a writ of possession be issued immediately in favor of the petitioner, the Mandaluyong city government, to place the latter in possession of the subject real properties covered under tax declaration No. D-013-10836 in the name of Mandaluyong City.”

Mandaluyong City Mayor Benjamin “Benhur” Abalos said the city government would neither take over nor interfere with MRT operations.

“(We shall only) collect real property taxes due the city government since 1982 and covered by tax declaration No. D-013-10636,” he said.

Abalos said the city assessor declared the properties in the name of Metro Rail Transit Corp. for tax purposes on June 24, 2001 and assessed their liability for real property taxes.

However, despite several notices, the MRTC failed to pay real property taxes amounting to P1,306,617,522.96, he added.

As a result, city treasurer Crispina Espedido issued a notice of delinquency against the MRTC and the corresponding warrant of levy on Oct. 6, 2005, he said.

Abalos said Mandaluyong is the first city in Metro Manila to collect taxes from the MRT based on the provisions of the Local Government Code.

“This is not a victory of Mandaluyong City alone, but by all local government units,” he said.

On the other hand, MRTC general manager Robert Lastimoso said they will leave it to the Office of the Solicitor General to contest the Mandaluyong court’s decision.

Lastimoso said he was surprised by the court decision since the Department of Transportation and Communications has won in similar tax suits against the city governments of Quezon City and Makati.

“I dont know what happened,” he said. “If there’s a writ of possession, I’m sure the OSG will file a motion to quash or something. My job is just to operate the rail line.”

Lastimoso said the DOTC was not liable to pay the property taxes to Mandaluyong based on a Supreme Court ruling on a similar tax assessment and collection which the Light Rail Transit Authority had faced.

The SC had declared that a government agency operating a public transportation facility was not liable for real property taxes, he added.