The Court of Tax Appeals (CTA) has denied for lack of jurisdiction the petition filed by the North Luzon Expressway Corporation (NLEX) which challenged the regulatory fees from 2005 to 2007 imposed by the Guiguinto town in Bulacan. In denying the petition, the CTA – as a full court – cited the 2021 decision of the SC which ruled: “The term 'taxes' has been defined by case law as 'the enforced proportional contributions from persons and property levied by the state for the support of government and for all public needs.' “While, under the LGC (Local Government Code), a 'fee' is defined as 'any charge fixed by law or ordinance for the regulation or inspection of a business or activity.' “If the purpose is primarily revenue, or if revenue is at least one of the real and substantial purposes, then the exaction is properly classified as an exercise of the power to tax. On the other hand, if the purpose is primarily to regulate, then it is deemed an exercise of police power in the form of a fee, even though revenue is incidentally generated. “Simply stated, if generation of revenue is the primary purpose, the imposition is a tax, but if regulation is the primary purpose, the imposition is properly categorized as a regulatory fee." The CTA said it is “a court of special jurisdiction and can only take cognizance of such matters as are clearly within its jurisdiction.” It pointed out that its jurisdiction on local tax and real property tax is provided for under Republic Act No. 1125 (the CTA law), which, among others, mandates that it has “exclusive appellate jurisdiction to review by appeal… orders or resolutions of the Regional Trial Courts (RTC) in local tax cases originally decided or resolved by them in the exercise of their original or appellate jurisdiction.” The CTA said that NLEX admitted in its petition that the assessment being appealed involved regulatory fees since the P4.1 million local business tax (LBT) imposed by the Guiguinto local government had been cancelled by the tax court’s second division in a ruling issued in 2019 which did not resolve the issue on the P72,262.35 regulatory fees. Case records showed that the Manila North Tollways Corporation (MNTC), the Philippine National Construction Corporation, and the Toll Regulatory Board entered into a Supplemental Toll Operation Agreement in April 1998. The agreement granted MNTC the concession to finance, operate, and maintain NLEX, and it also granted MNTC the authority to appoint an Operation and Maintenance Contractor to undertake any aspect of operation and maintenance for a fixed service fee. The MNTC then entered into an Operation and Management Agreement with Tollways Management Corporation (TMC) which received the LBT and regulatory fees assessments from the municipality of Guiguinto on April 3, 2009 and was required to pay P4,169,697.36 for LBT. The TMC filed its written protest on May 28, 2009 but received the denial on June 18, 2009. The RTC Branch 21 of the City of Malolos also ruled in favor of the municipality and asked MNTC, now NLEX, to pay LBT worth P4,169,697.36 as well as other regulatory fees in the sum of P72,262.35. In its full court decision, the CTA said the factual findings of its division “deserves the highest degree of respect." "It was established that the Sta. Rita and Tabang Offices are being used to perform the core functions of the petitioner relative to the relevant portions of the NLEX, hence, they are considered branch or sales offices subject to LBT," it said. "Absent any finding of grave abuse of discretion, there is no reason to disturb the abovementioned findings of the Court in Division," it added. It also pointed out that its second division "correctly ruled that this Court has no jurisdiction on regulatory fees assessed by respondents" (Guiguinto) and added that "the Court is precluded from ruling on petitioner's prayer relative to the regulatory fees assessed by respondents against it." Associate Justice Catherine T. Manahan wrote the 10-page decision with the concurrence of Associate Justices Ma. Belen M. Ringpis-Liban, Jean Marie A. Bacorro-Villena, Maria Rowena Modesto-San Pedro, Marian Ivy F. Reyes-Fajardo, Lanee S. Cui-David, and Corazon G. Ferrer-Flores.