Court rules town doesn’t own air in GMA-7 tax case

By Jerry Padilla

SAN NICOLAS, Ilocos Norte - The Court of Appeals has dismissed the appeal filed by the municipal government of this town and finalized the decision of the regional trial court which nullified  imposition of taxes on GMA Network Inc. (GMA) for the use of municipal aerial wealth.

In 2009, GMA was imposed with a fee of P35,000 by the municipal treasurer of San Nicolas for the use of municipal aerial wealth after installing antenna towers and building a relay station, which are essential parts of its television broadcast system, in the area.

The fee was assessed under Section 2, Article F, Chapter VI of the 2008 Revenue Code of San Nicolas.

GMA paid the fee on June 1, 2009 under protest on the grounds that it already paid regulatory fees to the National Telecommunications Commission under Executive Order 546, and that the municipality’s imposition of fees for the use of aerial wealth is already covered by another law in violation of the Local Government Code.

The municipal treasurer denied the protest, saying that the charge of aerial wealth on GMA’s broadcast operations falls within the authority of the municipality to impose.

In an eight-page decision, Judge Conrado Ragucos of the Ilocos Norte RTC said the provision of the Revenue Code of San Nicolas, imposing a fee on relay stations, was declared null and void in view of EO 546, which puts the imposition of charges on the operation of broadcasting organizations and their facilities such as antenna towers or relay stations under the jurisdiction of the NTC.

Ragucos said EO 546, being a general law, is superior in status to municipal ordinances such as the Revenue Code of San Nicolas. 

He added that the ownership of aerial space above the territory of San Nicolas does not belong to the municipality.