Camp John Hay v Baguio People’s Coalition

8/8/2019 Camp John Hay v Baguio Peoples Coalition

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G.R. No. 119775

BUSLAW Case Report

June 8


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Partiesy Camp John Hay Peoples Alternative Coaltion

y Bases Conversion and Development Authority (BCDA)

y Sanggunian Panlungsod of Baguio


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Factsy Republic Act No. 7227

y An act accelerating the conversion of military

reservations into other productive usesy Created the Bases Conversion and Development

Authority

y Known as the Bases Conversion and Development Act

of 1992


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Factsy Presidential Proclamation No. 420

y A proclamation creating and designating a portion of

the area covered by the former Camp John [Hay] as theJohn Hay Special Economic Zone

y Issues on July 5, 1994 by President Fidel V. Ramos


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Facts Sequence of Eventsy March 13, 1992 R.A. No. 7227 was enactedyAugust 16, 1993 Creation ofMOA and Escrow

agreement on the development of Camp John Hay as apremier tourist destination and recreation center

y February 21, 1994 The Sanggunian submitted a 15-

point concept for the development of Camp John Hayy BCDA, Tuntex and AsiaWorld agreed to some, butrejected or modified the other proposals of theSanggunian. Stresses the need to declare CJH a SEZ inaccordance to RA No. 7227

y May 11, 1994 the sanggunian passed a resolutionrequesting theMayor to order the determination ofrealty taxes. Intended to intelligently guide the

sanggunian in determining its position on whetherCamp John Hay be declared a SEZ

yJun 1994 Sanggunian passes Resolution No. 255seeking and supporting, subject to its concurrence of

Presidential Procalmation No. 422

yApr 25, 1995 filing of petition challenging the

constitutionality or validity as well as the legality of theMemorandum of Agreement and Joint VentureAgreement between public respondent BCDA andprivate respondents Tuntex and AsiaWorld


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Issues Decision - Rationaley Issue

y Sangguniang Lungsod of Baguio questions the constitutionality ofProclamation No. 420 for granting national and local tax exemptionand other tax incentives to John Hay Special Economic Zones

y Decisiony The court ruled in favor of the petitioner

y Rationaley It is clear that under Section 12 of R.A. No. 7227 it is only the Subic

SEZ which was granted by Congress with tax exemption, investmentincentives and the like. There is no express extension of theaforesaid benefits to other SEZs still to be created at the time viapresidential proclamation


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y Sangguniang Lungsod of Baguio questions the constitutionality ofProclamation No. 420 for limiting or interfering with the localautonomy of Baguio City

y Decisiony The court ruled in favor of the respondent

y Rationaley Under R.A. No. 7227, the BCDA is entrusted with the purpose of

holding and administering the military reservations of John Hay AirStation, Wallace Air Station,O Donnell Transmitter Station, SanMiguel Naval Communication, andMt. Sta. Rita Station as declaredby the President


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y Sangguniang Lungsod of Baguio questions Supreme Courtsjurisdiction over constituional issues

y

Decisiony The Supreme court has jurisdiction

y Rationaley Article 8 Sec. 5


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Additional Infoy Article 6 Sec. 28

y (2) The Congress may, by law, authorize the President to fix within specified limits,and subject to such limitations and restrictions as it may impose, tariff rates, importand export quotas, tonnage and wharfage dues, and other duties or imposts within

the framework of the national development program of the Governmenty (3) Charitable institutions, churches and personages or convents appurtenant

thereto, mosques, non-profit cemeteries, and all lands, buildings, andimprovements, actually, directly, and exclusively used for religious, charitable, oreducational purposes shall be exempt from taxation.

y (4) No law granting any tax exemption shall be passed without the concurrence of a

majority of all theM

embers of the Congress.


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Additional Infoy Article 8 Sec. 5 The Supreme Court shall have the following powers:

y (2) Review, revise, reverse, modify, or affirm on appeal or certiorari, as the law or theRules of Court may provide, final judgments and orders of lower courts in all casesinvolving the legality of any tax, impost, assessment, or toll, or any penalty imposed

in relation theretoy (a) All cases in which the constitutionality or validity of any treaty, international or executive

agreement, law, presidential decree, proclamation, order, instruction, ordinance, orregulation is in question.

y (b) All cases involving the legality of any tax, impost, assessment, or toll, or any penaltyimposed in relation thereto.

Documents

Camp John Hay v Baguio People’s Coalition