Cebu prevented from collecting land tax from Lexmark

Aug 2, 2012

Lexmark Research and Development Corp has been protected from paying land tax to the Philippine capital for 20 days.

Sun Star reports that the City of Cebu has been prevented from obtaining land tax from Lexmark Research and Development for 20 days, in a temporary action ahead of a main case.

The ruling was made by Judge Simeon Dumdum Jr., who stated that “this is, by no means, to prejudge the main case; but merely a provisional conclusion” in his two-page order.

The OEM is currently seeking a civil action which to aims to nullify City Ordinance 2016, noted by Sun Spot as “requir[ing] Philippine Economic Zone Authority (PEZA)-registered enterprises to pay real property taxes”.

Lexmark states that the city treasurer is unable to impose real property tax as PEZA-registered enterprises are said to be exempt from real estate tax under Republic Act 7916 and the Special Economic Zone Act of 1995.

The OEM has since referred to the imposition as “invalid” and “unconstitutional”.

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