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[av_heading heading=’PECO posts, meters to get taxed’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=”][/av_heading]
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ILOILO City – The Office of the City Assessor has ordered its personnel to inspect all electric posts or poles and electric meters owned by Panay Electric Company, Inc. (PECO), which will now be taxed.
This was in light of the Supreme Court (SC) ruling (G.R. No. 166102) dated Aug. 5, 2015 in the case “Manila Electric Company vs. The City Assessor and City Treasurer of Lucena City.”
“The SC ruling on the said case is very favorable [since] it will generate more revenues for the city [government and] redound to the benefit of its constituents,” said City Assessor Nelson Parreño.
The PECO is the sole power distribution utility in the city.
Personnel at the Appraisal and Assessment divisions will conduct the inspection.
Section 199 (o) of Republic Act 7160, or 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.
It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly and exclusively used to meet the needs of the particular industry, business or activity, and which by their very nature and purpose are designed for or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes.
Pursuant to the recent SC decision, the following facilitiesmay qualify as “machinery” and are not exempted from real property tax under the Local Government Code: transformers, electric posts or poles, transmission lines, insulators, and electric meters.
The law further provides that these “machineries,” though not attached permanently to the real properties of the PECO, are actually, directly and exclusively used to meet the needs of their business of distributing electricity. (Iloilo City PIO/PN)
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