BENGUET CORPORATION, petitioner, vs.

CENTRAL BOARD OF ASSESSMENT APPEALS, BOARD

OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL ASSESSOR OF ZAMBALES, PROVINCE OF
ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, respondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZNT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL ASSES
SOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, respon
dents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?

D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS

SESSOR OF ZNT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL ASSES
SOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, respon
dents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, res
pondents.
[January 29, 1993, G.R. No. 106041]D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT
APPEALS OF ZAMBALES, PROVINCIAL ASSESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and
MUNICIPALITY OF SAN MARCELINO, respondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.

ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, res
pondents.
[January 29, 1993, G.R. No. 106041]D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT
APPEALS OF ZAMBALES, PROVINCIAL ASSESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and
MUNICIPALITY OF SAN MARCELINO, respondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, res
pondents.
[January 29, 1993, G.R. No. 106041]D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT
APPEALS OF ZAMBALES, PROVINCIAL ASSESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and
MUNICIPALITY OF SAN MARCELINO, respondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co

mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, res
pondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
D OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS OF ZAMBALES, PROVINCIAL AS
SESSOR OF ZAMBALES, PROVINCE OF ZAMBALES, and MUNICIPALITY OF SAN MARCELINO, res
pondents.
[January 29, 1993, G.R. No. 106041]
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co

mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
HELD:
Yes, it is subject to realty tax and it is considered an immovable property.
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.
ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
HELD:
Yes, it is subject to realty tax and it is considered an immovable property.
FACTS:
On 1985, Provincial Assessor of Zambales assessed the said properties in issue a
s taxable improvements. The assessment was appealed to the Board of Assessment A
ppeals of the Province of Zambales. However, the appeal was dismissed mainly on
the ground of the petitioner's failure to pay the realty taxes that fell due dur
ing the pendency of the appeal.
The petitioner elevated the matter to the Central Board of Assessment Ap
peals, one of the herein respondents. In its decision dated March 22, 1990, the
Board reversed the dismissal of the appeal but, agreed that the tailings dam and
the lands submerged thereunder shall be subject to realty tax.
For purposes of taxation the dam is considered as real property as it co
mes within the object mentioned in Article 415 of the New Civil Code, It is a co
nstruction adhered to the soil which cannot be separated or detached without bre
aking the material or causing destruction on the land upon which it is attached.
The immovable nature of the dam as an improvement which determines its characte
r as real property, hence taxable under Section 38 of the Real Property Tax Code
.

ISSUES:
1.
Whether or not the tailings dam is subject to realty tax?
2.
Whether or not it be considered as immovable property?
HELD:
Yes, it is subject to realty tax and it is considered an immovable property.
The petitioner does not dispute that the tailings dam may be considered
realty within the meaning of Article 415. It insists, however, that the dam cann
ot be subjected to realty tax as a separate and independent property because it
does not constitute an "assessable improvement" on the mine although a considera
ble sum may have been spent in constructing and maintaining it.
The Real Property Tax Code does not carry a definition of "real property
" and simply says that the realty tax is imposed on "real property, such as land
s, buildings, machinery and other improvements affixed or attached to real prope
rty." In the absence of such a definition, applying Article 415 of the Civil Cod
e, which states that the following are considered immovables: Section No. 1 Land
s, buildings and constructions of all kinds adhered to the soil; Section no. 3 E
verything attached to an immovable in a fixed manner, in such a way that it cann
ot be separated therefrom without breaking the material or deterioration of the
object.
Even without the tailings dam, the petitioner's mining operation can sti
ll be carried out because the primary function of the dam is merely to receive a
nd retain the wastes and water coming from the mine. There is no allegation that
the water coming from the dam is the sole source of water for the mining operat
ion so as to make the dam an integral part of the mine. In fact, as a result of
the construction of the dam, the petitioner can now impound and recycle water wi
thout having to spend for the building of a water reservoir.
And as the petitioner itself points out, even if the petitioner's mine i
s shut down or ceases operation, the dam may still be used for irrigation of the
surrounding areas.
From the definitions and the cases cited in relation to this case, it wo
uld appear that whether a structure constitutes an improvement so as to partake
of the status of realty would depend upon the degree of permanence intended in i
ts construction and use, The expression "permanent" as applied to an improvement
does not imply that the improvement must be used perpetually but only until the
purpose to which the principal realty is devoted has been accomplished. It is s
ufficient that the improvement is intended to remain as long as the land to whic
h it is annexed is still used for the said purpose.
The Court is convinced that the subject dam falls within the definition
of an "improvement" because it is permanent in character and it enhances both th
e value and utility of petitioner's mine. Moreover, the immovable nature of the
dam defines its character as real property under Article 415 of the Civil Code a
nd thus makes it taxable under Section 38 of the Real Property Tax Code.
Hence, petition was dismissed by the Supreme Court.