Local Taxation

In National Food Authority v. City Government of Tagum, the Supreme Court ruled that the National Food Authority (NFA) is exempt from paying real property taxes. The Court held that, as a government instrumentality, it is immune from the local governments’ power to tax under Sec. 133(o) of the LGC. Moreover, its properties are properties of public dominion. Hence, further exempted from real property taxes under Sec. 234(a) of the LGC.