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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 231
PRESIDENTIAL DECREE NO. 231 -
ENACTING A LOCAL TAX CODE FOR PROVINCES, CITIES, MUNICIPALITIES AND
BARRIOS
|
chanroblesvirtualawlibrary
WHEREAS,
the Constitution under Section 5, Article XI, enjoins that "Each local
government unit shall have the power to create its own sources of
revenue and levy taxes, subject to such limitations as may be provided
by law"; chanroblesvirtualawlibrary
WHEREAS, the Constitution under Section 2, Article XI, also enjoins the
allocation among the different local government units of their powers
and resources;chanroblesvirtualawlibrary
WHEREAS, the Constitution provides that the State shall guarantee and
promote the autonomy of local government units to ensure their fullest
development as self-reliant communities and local autonomy can be
guaranteed and enhanced only by enabling the local government units to
exploit fully their taxing and other revenue-raising powers;chanroblesvirtualawlibrary
WHEREAS, there is an urgent and compelling need to codify all existing
tax laws scattered in a welter of various Acts, Commonwealth Acts and
Republic Acts, as well as in a number of Supreme Court decisions, for a
more efficient system of local tax administration that will work to the
benefit of both the government and the taxpayer;chanroblesvirtualawlibrary
WHEREAS, a local tax code delineating the taxing powers of the
different local government units and limiting the same powers
conformably to the provisions of the Constitution will ensure
uniformity in local taxation, obviate multiple and competitive local
impositions and general adequate resources for the local government
units without over-burdening the taxpayers; and
WHEREAS, a local tax code insuring adequate resources will also
transform the local government units into effective instruments of
national development and progress; chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1 dated September 22, 1972, as amended, in compliance
with the pertinent mandates of the Constitution and to provide the
local government units with adequate sources of revenue that will make
them viable, self-sufficient and effective instruments of national
development and progress, without over-burdening the taxpayers, hereby
adopt, promulgate and decree, as it is hereby adopted, promulgated, and
decreed as part of the law of the land and attached Local Tax Code for
implementation.
This Decree shall take effect July 1, 1973.
Done in the City of Manila,
this 28th day of June, in the year of Our Lord, nineteen hundred and
seventy-three.
THE LOCAL TAX CODE
(Enacted under Presidential Decree No. 231 dated June 8, 1973)
CHAPTER I
General Provisions
Section 1. Scope. — This Code shall govern the
exercise by provinces, cities, municipalities and barrios of their
taxing and other revenue-raising powers. ACaEcH
Section 2. Fundamental principles. — The exercise of
the taxing and other revenue-raising powers vested in local governments
shall be guided by the following fundamental principles:cralaw:red
(a) Taxation shall be uniform in each local political
subdivision;chanroblesvirtualawlibrary
(b) Taxes and other impositions shall be based as
much as possible on the taxpayers' ability to pay;chanroblesvirtualawlibrary
(c) Taxes shall be levied and collected only for
public purposes;chanroblesvirtualawlibrary
(d) Taxes and other impositions must not be unjust,
excessive, oppressive or confiscatory;chanroblesvirtualawlibrary
(e) Taxes and other impositions must not be contrary
to law, public policy and national economic policy, nor in restraint of
trade;chanroblesvirtualawlibrary
(f) In no case shall the collection of local taxes
and other impositions be let to any person;chanroblesvirtualawlibrary
(g) The monies collected under this Code shall inure
solely to the benefit of, and subject to disposition by, the local
government imposing the tax or fee, unless, otherwise specifically
provided herein; and
(h) It shall be the responsibility of each local
political subdivision to evolve a progressive system of taxation.
Section 3. Definitions. — When used in this Code —chanroblesvirtualawlibrary
(a) Agricultural product includes the yield of the
soil such as corn, rice, wheat, rye, hay, coconuts, sugar cane,
tobacco, root crops, vegetables, fruits, flowers, etc. and their
by-products; ordinary salt; all kinds of fish; poultry; and livestock
and animal products, whether in their original form or when preserved
in a more convenient and marketable form through the simple processes
of freezing, drying, salting, smoking, and stripping. (As amended by PD
No. 426.)
The phrase "whether in their original form or not" means the
transformation of said products by the application of simple processes
to preserve or otherwise to prepare said products for the market such
as freezing, drying, salting, smoking or stripping.
(b) Amusement is a pleasurable diversion and
entertainment. It is synonymous to recreation, relaxation, avocation,
pastime or fun.
(c) Amusement places includes theaters,
cinematographs, concert halls, circuses and other places of amusement
where one seeks admission to entertain himself by seeing or viewing the
show or performance. It includes those places where one seeks admission
to entertain himself by direct participation.
(d) Brewer includes all persons who manufacture
fermented liquors of any description for sale or delivery to others,
but does not include manufacturers of tuba, basis tapuy, or similar
domestic fermented liquors, whose daily production do not exceed two
hundred gauge liters.
(e) Business means commercial activity customarily
engaged in as a means of livelihood and typically involving some
independence of judgment and power of decision.
(f) Calling means one's regular business, trade,
profession, vocation or employment which does not require the passing
of an appropriate government board or bar examination, such as
professional actors and actresses, hostesses, masseurs, commercial
stewards and stewardess, etc.
(g) Capital signifies the actual estate, whether in
money or property owned by an individual or corporation; it is a fund
with which it transacts its business, which would be liable to each
creditor, and which in case of insolvency passes to a receiver.
(h) Capital investment is the capital which a person
puts in any undertaking, or which he contributes to the common stock of
a partnership, corporation, or any other juridical entity or
association.
(i) Charges refers to pecuniary, liability, as rents
or fees against property, persons or organizations.
(j) Confiscatory is that which amounts to undue
seizure or forfeiture of private property in favor of the public
treasury.
(k) Corporation includes joint-stock company,
partnership, association, insurance company, or any other juridical
entity, no matter how created.
The term "resident foreign" when applied to a corporation means a
foreign corporation engaged in trade or business within the Philippines
or having an office or place of business therein.
(l) Dealer means one whose business it is to buy and
sell merchandise, goods, and chattels, as a merchant. He stands
immediately between the producer or manufacturer and the consumer and
depends for his profit not upon the labor he bestows upon his
commodities but upon the skill and foresight with which he watches the
market. cAaDHT
(m) Excessive means that which is characterized by
whatever is notably greater than what is moderate, reasonable, proper,
usual, necessary and just.
(n) Fee means a charge fixed by law or agency for the
services of a public officer.
(o) Gross receipts includes all monies and properties
received in consideration of services rendered or articles sold,
exchanged or leased, without any deduction; or the whole amount of the
receipt of the business before the cost of production is deducted
therefrom.
(p) Hotel includes any house or building or portion
thereof in which any person or persons may be regularly harbored for
received as transients or guests. A hotel shall be considered as living
quarters and shall have the privilege to accept any number of guests
and to serve food to the guests therein. (As amended by PD 426.)
(q) Levy means an imposition or collection of an
assessment, tax, tribute or fine.
(r) License or Permit is a right or permission
granted in accordance with law by a competent authority to engage in
some business or occupation or to engage in some transaction. (As
amended by PD 426.)
(s) Local government includes provinces, cities,
municipalities and barrios.
(t) Lodging house includes any house or building, or
portion thereof, in which any person or persons may be regularly
harbored or received as transients for compensation. Taverns or inns
shall be considered as lodging houses.
(u) Manufacturer includes every person who, for the
purpose of sale or distribution to others and not for his own use or
consumption, by physical or chemical process: (1) alters the exterior
texture or form, or inner substance of any raw material, or
manufactured or partially manufactured product in such manner as to
prepare it for a special use or uses to which it could not have been
put in its original condition; (2) alters the quality of any such raw
material, or manufactured or partially manufactured products so as to
reduce it to marketable shape or prepare it for any use or industry; or
(3) combines any raw material, or manufactured or partially
manufactured product with other materials, or products of the same or
of a different kind in such manner that the finished product of such
process or manufacture can be put to a special use or uses to which
such material, or manufactured or partially manufactured product in its
original condition could not have been put. SEIDAC
(v) Market premises refers to any open space in the
market compound; part of the market lot consisting of bare ground not
covered by market buildings, usually occupied by transient vendors
specially during market days.
(w) Motel includes any house or building, or portion
thereof, in which any person or persons may be regularly harbored or
received as transients or guests and which is provided with a common
enclosed garage or individually enclosed garage where such transients
or guests may park their motor vehicles.
(x) Motor vehicle means any vehicle propelled by any
power other than muscular power using the public roads, but excepting
road rollers, trolley cars, street-sweepers, sprinklers, lawn mowers,
bulldozers, graders, forklifts, amphibian trucks, an cranes if not used
on public roads, vehicles which run only on rails or tracks, and
tractors, trailers and traction engines of all kinds used exclusively
for agricultural purposes.
(y) Occupation means one's regular business or
employment, or an activity which principally takes up one's time,
thought and energies. It includes any calling; business, trade,
profession or vocation.
(z) Operator includes the owner, manager,
administrator, or any other person who operates or is responsible for
the operation of business establishment or undertaking.
(a-1) Oppressive means unreasonably burdensome,
unjustly severe, or harsh.
(b-1) Peddler means any person who, either for
himself or on commission, travels from place to place and sells his
goods or offers to sell and deliver the same. Whether a peddler is a
wholesale peddler or a retail peddler of a particular commodity shall
be determined from the definitions of wholesale dealer or retail dealer
as provided in this Code.
(c-1) Person means every physical or moral, real or
juridical and legal being, susceptible of rights and obligations or of
being the subject of legal relations.
(d-1) Privilege means a right or immunity granted as
a peculiar benefit, advantage or favor.
(e-1) Profession means a calling which requires the
passing of an appropriate government board or bar examination, such as
the practice of law, medicine, public accountancy, engineering, etc.
(f-1) Public market refers to any place, building or
structure of any kind designated as such by the local board or council,
except public streets, plazas, parks and the like. (As amended by PD
426.)
(g-1) Rental means the value of the consideration,
whether in money or otherwise, given for the enjoyment or use of a
thing.
(h-1) Residents refers to natural persons who have
their habitual residence in the province, city or municipality where
they exercise their civil rights and fulfill their civil obligations,
and to juridical persons for which the law or any other provision
creating or recognizing them fixes their residence in a particular
province, city or municipality. In the absence of such law, juridical
persons are residents of the province, city or municipality where their
legal representation is established or where they exercise their
principal functions. SEIDAC
(i-1) Retail means a sale where the purchaser buys
the commodity for his own consumption, irrespective of the quantity of
the commodity sold.
(j-1) Revenue includes taxes, fees and charges that a
state or its political subdivision collects and receives into the
treasury for public purposes.
(k-1) Services means the duties, work or functions
performed or discharged by a government officer, or by a private person
contracted by the government, as the case may be.
(l-1) Stall refers to any allotted space or booth in
the public market where merchandise of any kind is sold or offered for
sale.
(m-1) Tax means an enforced contribution, usually
monetary in form, levied by the law-making body on persons and property
subject to its jurisdiction for the precise purpose of supporting
governmental needs.
(n-1) Unjust means deficient in justice and
fairness. DHEACI
(o-1) Vessel includes any sort of boat, craft, or
other arts artificial contrivance used, or capable of being used, as a
means of transportation on water.
(p-1) Wharfage means a fee assessed against the cargo
of a vessel engaged in foreign or domestic trade based on the quantity,
weight or measure received and/or discharged by such vessel. (As
amended by PD 426.)
(q-1) Wholesale means a sale where the purchaser buys
the commodities for resale, regardless of the quantity of the
transaction.
Section 4. Local authority. — Whenever the power to
impose and collect a tax or other revenue is exercised under this Code,
that power shall be exercised by the provincial board in the case of
provinces, the city council or municipal board in the case of cities,
the municipal council in the case of municipalities, or the barrio
council in the case of barrios.
Section 5. Common limitations on the taxing powers of
local governments. — The exercise of the taxing powers of provinces,
cities, municipalities and barrios shall not extend to the imposition
of the following:cralaw:red
(a) Documentary stamp tax;chanroblesvirtualawlibrary
(b) Taxes on forest products and forest concessions;chanroblesvirtualawlibrary
(c) Taxes on estates, inheritance, gifts, legacies
and other acquisitions mortis causa, except as otherwise provided in
this Code; SEIDAC
(d) Taxes on income of any kind whatsoever;chanroblesvirtualawlibrary
(e) Taxes or fees for the registration of motor
vehicles and for the issuance of all kinds of licenses or permits for
the driving thereof;chanroblesvirtualawlibrary
(f) Customs duties, registration fees of vessels
except as otherwise provided in this Code, and wharfage on wharves,
tonnage dues, and all other kinds of customs fees, charges and dues,
except wharfage on wharves constructed and maintained by the local
government concerned at rates not exceeding those fixed by the Tariff
and Customs Code;chanroblesvirtualawlibrary
(g) Taxes of any kind on banks and insurance
companies;chanroblesvirtualawlibrary
(h) Taxes on premiums paid by owners of property who
obtain insurance directly with foreign insurance companies;chanroblesvirtualawlibrary
(i) Export taxes, fees, or other levies on Philippine
finished, manufactured or processed products, and products of
Philippine cottage industries;chanroblesvirtualawlibrary
(j) Taxes and other impositions upon goods carried
into or out of, or passing through, the territorial jurisdictions of
local governments in the guise of unreasonable charges for wharfage,
use of bridges, or otherwise, or other taxes in any form whatever upon
such goods or merchandise;chanroblesvirtualawlibrary
(k) Taxes or fees on agricultural products when sold
by the farmer or producer thereof, whether in their original form or
not; and
(l) Percentage tax on sales, except as otherwise
provided in this Code.
CHAPTER II
Specific Provisions on the Taxing and Other Revenue-Raising Powers of
Local Governments
ARTICLE 1
Provinces
Section 6. Scope of power. — Except as otherwise
provided in this Code, the province may impose, among others, the
taxes, fees or charges specifically mentioned in this Article.
Section 7. Tax on transfer of read property
ownership. — The province may impose a tax on the sale, donation,
barter, or on any other mode of transferring ownership or title, of
real property at the rate of not exceeding one-fourth of one per cent
of the total consideration involved in the acquisition of the property
or of its assessed value, whichever is higher, or in the absence of a
specific consideration, the assessed value of the property.
The transfer of real property ownership pursuant to Republic Act No.
3844, as amended, shall be exempt from this tax.
For this purpose, the Register of Deeds of the province concerned
shall, before registering any deed, require the presentation of the
evidence of payment of this tax. SEIDAC
Real property, for purposes of this tax, refers only to lands,
buildings, and machineries intended by the owner of the land or
building for an industry or work which may be carried on in a building
or on a piece of land and which tend directly to meet the needs of the
said industry or works. Buildings refer to all kinds of structure more
or less permanently attached to a piece of land, excluding those which
are merely superimposed on the soil.
Section 8. Tax on business of printing and
publication. — The province may impose a tax on the business of persons
engaged in the printing and/or publication of: (a) any newspaper,
magazine, review, or bulletin appearing at regular intervals, with
fixed prices for subscription and sale and published in the province;
(b) books, cards, posters, leaflets, handbills, certificates, receipts,
pamphlets, and others of similar nature, at the rate of not exceeding
one-half of one per cent of the gross annual receipts for the preceding
calendar year. In the case of newly started business, the rate shall
not exceed one hundred pesos for a printer, fifty pesos for a
publisher, and one hundred and fifty pesos for one who is both a
printer and publisher.
The receipts from the printing and/or publishing of books or other
reading materials prescribed by the Department of Education and Culture
as school texts or reference shall not be included in the gross
receipts subject to the tax herein imposed.
Section 9. Franchise tax. — Any provision of special
laws to the contrary notwithstanding, the province may impose a tax on
businesses enjoying franchise, based on the gross receipts realized
within its territorial jurisdiction, at the rate of not exceeding
one-half of one per cent of the gross annual receipts for the preceding
calendar year.
In the case of newly started business, the rate shall not exceed three
thousand pesos per year. Sixty per cent of the proceeds of the tax
shall accrue to the general fund of the Province and forty per cent to
the general fund of the municipalities serviced by the business on the
basis of the gross annual receipts derived therefrom by the franchise
holder. In the case newly started business, forty per cent of the
proceeds of the tax shall be divided equally among the municipalities
serviced by the business.
Section 10. Sand and gravel fee. — The province may
levy and collect a tax of not exceeding seventy-five centavos per cubic
meter of ordinary stones, sand, gravel, earth and other materials
extracted from public and private lands of the government or from the
beds of seas, lakes, rivers, streams, creeks, and other public waters
within the jurisdiction of the province.
Section 11. Taxes transferred. — The imposition of
the taxes provided in Sections 12, 13, 14, 15, and 16 of this Code
heretofore exercised by the national government or the municipal
government, shall henceforth be exercised by the provincial government,
to the exclusion of the national or municipal government. To avoid any
revenue loss, the province shall levy and collect such taxes as
provided in said Sections 12, 13 and 14.
Section 12. Occupation tax. — The province shall levy
an annual occupation tax on all persons engaged in the exercise or
practice of their profession or calling as follows:cralaw:red
(a) Seventy-five pesos:
Lawyers, medical practitioners, architects, interior decorators,
certified public accountants, civil, electrical, chemical, mechanical,
mining or sanitary engineers, pharmacists, medical technologists,
insurance agents and sub-agents, customs brokers, marine surveyors,
actuaries, registered master plumbers, registered electricians,
veterinarians, dentists, optometrists, opticians, commercial aviators,
professional appraisers or connoisseurs of tobacco and other domestic
or foreign products, licensed ship masters and marine chief engineers.
Mechanical plant engineers, junior mechanical engineers and certified
plant mechanics, unless they are professional mechanical engineers and
have paid the corresponding fixed tax for mechanical engineers.
(b) Fifty pesos:
Land surveyors, chief mates, marine second engineers, registered
nurses, chiropodists, tattooers, masseurs, pelotaris, jockeys,
professional actors and actresses, stage performers, hostesses,
statisticians, commercial stewards and stewardesses, flight attendants,
insurance adjusters, dietitians and embalmers. DTAESI
The Secretary of Finance shall include within the purview of the
occupation tax other professions or callings not hereinabove enumerated
which in the light of prevailing circumstances should properly be
included therein and their corresponding tax rates. The tax imposed on
such professions shall take effect two months after publication in a
newspaper of general circulation.
Every person legally authorized to practice his profession or calling
shall pay the tax to the province where he practices his profession or
pursues his calling, or where he maintains his principal office in
cases where the person practices his profession or pursues his calling
in several places: Provided, That such person who has paid the
corresponding occupation tax as herein fixed shall be entitled to
practice his profession or calling in all parts of the Philippines
without being subject to any other national or local tax, license or
fee for the practice of such profession or calling. SEIDAC
Any individual or corporation employing a person shall require payment
by that person of the privilege tax on occupation before employment and
annually thereafter.
The occupation tax shall be payable annually, on or before the
thirty-first day of January. Any person first beginning an occupation
or calling after the month of January must however pay the full tax
before engaging therein. One line of occupation or calling does not
become exempt by being conducted with some other occupation or calling
for which the tax has been paid. Professionals exclusively employed in
the government shall be exempt from the payment of this tax.
The occupation tax shall be collected by the municipal treasurers and
remitted to the provincial treasurer within ten treasurers following
the end of the month of collection. Seventy per cent of the proceeds of
the tax shall accrue to the general fund of the province and thirty per
cent shall be divided equally among the municipalities. The provincial
treasurer shall release the shares of the municipalities within thirty
days following the remittance of the collections by the municipal
treasurer.
Any person subject to the occupation tax shall write or print in deeds,
receipts, prescriptions, reports, books of accounts, plans and designs,
surveys and maps, as the case may be, the number of the official
receipt issued to him.
Section 13. Amusement tax on admission. — The
province shall impose a tax on admission to be collected from the
proprietors, lessees, or operators of theaters, cinematographs, concert
halls, circuses and other places of amusements at the following rates:cralaw:red
(a) When the amount paid for admission is one peso or
less, twenty per cent; and
(b) When the amount paid for admission exceeds one
peso, thirty per cent.
In the case of theaters or cinematographs, the taxes herein prescribed
shall first be deducted and withheld by the proprietors, lessees, or
operators of the theaters or cinematographs and paid to the provincial
treasurer concerned thru the municipal treasurer before the gross
receipts are divided between the proprietors, lessees, or operators of
the theaters or cinematographs and the distributors of the
cinematographic films.
The holding of operas, concerts, dramas, recitals, painting and art
exhibitions, flowershows, musical programs, literary and oratorical
presentations, except film exhibitions and radio or phonographic
records thereof, shall be exempt from the payment of the taxes herein
imposed.
The taxes hereinabove imposed shall be due and payable within the first
twenty days of the month following each quarter, by the proprietor,
lessee, or operator concerned, and such taxes to be determined on the
basis of a true and complete return of the amount of gross receipts
derived during the preceding month. If the tax is not paid within the
time fixed hereinabove, the taxpayer shall be subject to such
surcharges, interests and penalties prescribed by this Code. In case of
willful neglect to file the return and pay the tax within the time
required or in case fraudulent return is filed or a false return is
willfully made, the taxpayer shall be subject to a surcharge of fifty
per cent of the correct amount of the tax due in addition to the
interest and penalties provided by this Code.
Section 14. Fees for sealing and licensing of weights
and measures. — The province shall collect fees for the sealing and
licensing of weights and measures in accordance with the following
schedule:cralaw:red
(a) For sealing linear metric measures:
Measures not over one meter — one peso
Measures over one meter — two pesos
(b) For sealing metric measures of capacity:
Measures not over ten liters — one peso
Measures over ten liters — two pesos
(c) For sealing metric instruments of weights:
Those with a capacity of not more than thirty kilograms — two pesos
SEIDAC
Those with a capacity of more than thirty but not more than three
hundred kilograms — three pesos
Those with a capacity of more than three hundred but not more than
three thousand kilograms — five pesos
Those with a capacity of more than three thousand kilograms — six pesos.
(d) For an apothecary balance or other balance of
precision, the fee shall be doubled.
(e) A complete set of weights for each scale or
balance shall be sealed free of charge. For each extra weight, the fee
shall be fifty centavos.
The fees herein levied shall be paid at the place where the business is
conducted. In the case of a peddler or similar itinerant vendor using
only one weight or measure, he shall pay the fees in his place of
residence. EHCaDS
Municipal Treasurers are hereby required to keep full sets of secondary
standards, in their offices for the use in testing of weights and
measures. These secondary standards shall be compared with the
fundamental standards in the National Institute of Science and
Technology at least once a year. When found to be sufficiently
accurate, the secondary standards shall be distinguished by label, tag,
or seal, and shall be accompanied by a certificate showing the amount
of its variation from the fundamental standards. If the variation is of
sufficient magnitude to impair the utility of the instrument, it shall
be destroyed in the National Institute of Science and Technology.
The proceeds from these fees shall accrue entirely to the
municipalities where collected.
The provincial board shall prescribe the necessary regulations for the
use of such weights and measures.
Section 15. Tax on peddlers. — An annual tax on
peddlers engaged in the sale of any merchandise or article of commerce
within the province, at the rates not exceeding those fixed hereunder:cralaw:red
Amount of tax
per annum
(a) Peddlers of any article or merchandise
carried in trucks or any other motor
vehicles P30.00
(b) Peddlers of any article merchandise
carried in a motorized bicycle, tricycle
or other motorized similar vehicles other
than those specified in letter (a)
above 15.00
(c) Peddlers of any article or merchandise
carried in cart, carretela or other vehicles
drawn by animals 10.00
(d) Peddlers of any article or merchandise
carried on bicycle, pedicab or other
similar vehicles 5.00
(e) Peddlers of any other article or
merchandise carried by person 2.00
In addition to the above impositions, a peddler of textiles, jewelry,
perfume and other luxury articles shall pay five pesos.
Section 16. Rental fee for use of municipal waters,
rivers, etc. as log pond. — Any provision of existing laws or rules to
the contrary notwithstanding, the province may charge an annual rental
fee for the use of municipal waters, rivers, lakes, and the like within
its territorial jurisdiction as log pond at the rate not exceeding five
centavos per square meter of water space occupied. SEIDAC
Sixty per cent of the proceeds of the rentals shall accrue to the
province and forty per cent to the municipality, or municipalities in
equal shares, where the log pond is located.
Section 17. Specific limitations on power. — Except
as otherwise provided in this Code, the province shall not levy the
following:cralaw:red
(a) Business tax;.
(b) Fishery rental and license fees;chanroblesvirtualawlibrary
(c) Tax on articles subject to specific tax under the
provisions of the National Internal Revenue Code;chanroblesvirtualawlibrary
(d) Taxes and other impositions enumerated in Section
5, Chapter I of this Code; and
(e) Municipal fees and charges under Section 20 of
this Code.
ARTICLE 2
Municipalities
Section 18. Scope of powers. — Except as otherwise
provided in this Code, the municipality may levy, among others, the
taxes, fees, or charges provided in this Article, at rates not
exceeding those fixed in the following sections.DSTE
Section 19. Tax on business. — The municipality may
impose a tax on businesses as follows:cralaw:red
(a) Tax on the business of manufacturing, importing,
exporting, producing, wholesaling or retailing of, or dealing in, any
article of commerce of whatever kind or nature, except those for which
fixed taxes are provided herein:cralaw:red
With gross annual sales for the preceding Amount of
tax
calendar year in the amount of: per annum
Less than P1,000.00 P10.00
P1,000.00 or more but less than
P2,000.00 20.00
2,000.00 or more but less than
3,000.00 30.00
3,000.00 or more but less than
4,000.00 45.00
4,000.00 or more but less than
5,000.00 65.00
5,000.00 or more but less than
6,000.00 80.00
6,000.00 or more but less than
7,000.00 100.00
7,000.00 or more but less than
8,000.00 120.00
8,000.00 or more but less than
10,000.00 160.00
10,000.00 or more but less than
15,000.00 240.00
15,000.00 or more but less than
20,000.00 360.00
20,000.00 or more but less than
30,000.00 520.00
30,000.00 or more but less than
40,000.00 750.00
40,000.00 or more but less than
50,000.00 1,000.00
50,000.00 or more but less than
75,000.00 1,500.00
75,000.00 or more but less than
100,000.00 2,200.00
100,000.00 or more but less than
150,000.00 3,200.00
150,000.00 or more but less than
300,000.00 3,900.00
300,000.00 or more but less than
500,000.00 7,000.00
500,000.00 or more but less than
750,000.00 11,250.00
750,000.00 to
1,000,000.00 16,000.00
For every P50,000.00 or fraction thereof in
excess of P1,000,000.00
million 200.00
In the case of newly started business, the tax shall be at the rate of
not exceeding one-tenth of one per cent of the capital investment but
in no case shall it be less than the minimum of P10.00 fixed above.
The tax on the business of manufacturing, producing, or importing
agricultural implements, fertilizers, medicinal drugs, and dairy
products shall be one-half of the rates above-prescribed. SEIDAC
For purposes of collection of this tax, manufacturers and producers
maintaining or operating branch or sales offices elsewhere shall record
the sale in the branch or sales offices making the sale and tax thereon
shall accrue to the local government where the branch or sales office
is located. In cases where there is no such branch or sales office in
the locality where the sale is effected, the sale shall be duly
recorded in the principal office and the tax shall accrue to the local
government where said principal office is located.
(b) On cafes, cafeterias, ice cream and other
refreshment parlors, restaurants, soda fountain bars, carinderias or
food caterers:cralaw:red
With gross annual sales and/or receipts for Amount of
tax
the preceding calendar year in the amount of: per
annum
Less than P2,000.00 P30.00
P2,000.00 or more but less than
P3,750.00 50.00
3,750.00 or more but less than
4,500.00 70.00
4,500.00 or more but less than
6,125.00 90.00
6,125.00 or more but less than
7,250.00 110.00
7,250.00 or more but less than
8,750.00 130.00
8,750.00 or more but less than
10,275.00 150.00
10,275.00 or more but less than
12,125.00 180.00
12,125.00 or more but less than
15,250.00 220.00
15,250.00 or more but less than
16,750.00 250.00
16,750.00 or more but less than
18,250.00 270.00
18,250.00 or more but less than
20,625.00 290.00
20,625.00 or more but less than
23,375.00 350.00
23,375.00 or more but less than
27,000.00 400.00
27,000.00 or more but less than
30,000.00 450.00
30,000.00 or more but less than
33,000.00 500.00
33,000.00 or more but less than
35,875.00 550.00
35,875.00 or more but less than
40,625.00 610.00
40,625.00 or more but less than
45,500.00 660.00
45,500.00 to
50,000.00 750.00
For every P1,000.00 or fraction thereof in excess
of P50,000.00 5.00
In the case of newly started business, the tax shall be at the rate of
not exceeding one-tenth of one per cent of the capital investment but
in no case shall it be less than the minimum of P30.00 fixed above.
In cases where a single person or juridical entity conducts or operates
two or more of the related businesses mentioned in Subsection (a) or in
Subsection (b) above, the computation of the tax shall be based on the
combined total gross receipts of the said two or more related
businesses. SEIDAC
(c) On all business establishments principally
rendering or offering to render services, such as repair and welding
shops; service stations; painting shops; plastic lamination,
photostatic, white/blue printing, recopying or duplicating services;
photographic studios; tailor and dress shops; laundry shops; beauty
parlors; battery charging shops; barber shops; assaying laboratories;
advertising agencies; collecting agencies; funeral parlors; massage or
therapeutic clinics; construction and/or repair shops of motor
vehicles, animal-drawn vehicles, bicycles and/or tricycles; goldsmiths
and silversmiths; shops for shearing animals; lathe machine shop;
vaciador shops; upholstery shops; vulcanizing shops; stables; garages;
parking lots and public warehouses and bodegas;chanroblesvirtualawlibrary
With gross annual receipts for the preceding Amount
of tax
calendar year in the amount of: per annum
Less than P5,000.00 P25.00
P5,000.00 or more but less than
P10,000.00 56.00
10,000.00 or more but less than
15,000.00 125.00
15,000.00 or more but less than
20,000.00 218.00
20,000.00 or more but less than
30,000.00 375.00
30,000.00 or more but less than
40,000.00 612.00
40,000.00 or more but less than
50,000.00 900.00
50,000.00 or more but less than
75,000.00 1,406.00
75,000.00 or more but less than
100,000.00 2,187.50
100,000.00 or more but less than
150,000.00 3,437.50
150,000.00 or more but less than
200,000.00 5,250.00
200,000.00 or more but less than
250,000.00 7,312.50
250,000.00 or more but less than
300,000.00 9,625.00
300,000.00 or more but less than
400,000.00 13,125.00
400,000.00 to
500,000.00 18,000.00
For every P10,000.00 or fraction thereof in excess of
500,000.00 100.00
In the case of newly started business, the tax shall be at the rate of
not exceeding one-tenth of one per cent of the capital investment but
in no case shall it be less than the minimum of P25.00 fixed above.
(d) On the business of brewers, rectifiers,
distillers, and repackers of liquors, distilled spirits and/or wines:
Amount of tax
per annum
(1) Wholesale, dealers in foreign
liquors P800.00
(2) Wholesale dealers in domestic
liquors 400.00
(3) Retail dealers in foreign
liquors 200.00
(4) Retail dealers in domestic
liquors 100.00
(5) Brewers 2,000.00
(6) Distillers of spirits 1,500.00
(7) Rectifiers of distilled spirits
1,500.00
(8) Repackers of wine and distilled
spirits 1,500.00
(9) Retail dealers in vino liquors
50.00
(10) Retail dealers in fermented
liquors 80.00
(11) Wholesale dealers in fermented
liquors 200.00
(12) Retail peddlers of distilled, manufactured
or fermented liquors 160.00
(13) Wholesale peddlers of distilled, manufactured
or fermented liquors 200.00
(14) Retail dealers in tuba, basi and/or
tapuy 50.00
(e) Tax on tobacco dealers:
(1) Retail leaf tobacco dealers
50.00
(2) Wholesale leaf tobacco dealers
200.00
(3) Retail tobacco dealers 50.00
(4) Wholesale tobacco dealers 200.00
(5) Retail peddlers of manufactured
tobacco 50.00
(6) Wholesale peddlers of manufactured
tobacco 200.00
(f) Tax on amusement devices:
(1) Each jukebox machine 100.00
(2) Each machine or apparatus for visual
entertainment 50.00
(3) Each apparatus for weighing
persons 30.00
(g) On amusement places wherein the customers thereof
actively participate without making bets or wagers, including but not
limited to, the following:
Amount of tax
per annum
(1) Night and day clubs P6,000.00
(2) Night clubs or day clubs
4,000.00
(3) Cocktail lounges or bars
1,600.00
(4) Cabarets or dance halls 1,000.00
(5) Skating rinks 500.00
(6) Bath houses, swimming pools, resorts and
other similar places 300.00
(7) Steam baths, saunas and other similar
establishments, per cubicle 100.00
(8) Billiard and pool halls:
For the first table 50.00
For each additional table 20.00
(9) Bowling alleys:
Automatic, per lane 100.00
Non-automatic, per lane 80.00
(10) Circuses, carnivals, and the like — P40.00 per
day far the first ten days and P5.00 per day
thereafter
(11) Merry-go-rounds, roller-coasters, ferries
wheels, swings, shooting galleries, and other
similar contrivances — for each contrivance,
P10.00 per day for the first ten days and
P2.00 per day thereafter.
(12) Theaters and cinematographs:
Itinerant operators, P10.00 per day
With orchestra only with seating capacity
of less than 500.00 persons 500.00
With balcony and orchestra with seating
capacity of from 500 to 999
persons 800.00
With balcony and orchestra with seating
capacity of 1,000 persons and
above 1,000.00
With lodge, balcony and orchestra
1,500.00
Plus: Amusement tax of P0.05 per
admission payable to the municipal
treasurer within twenty days next
following business day
An additional tax not exceeding one hundred per cent of the rates
hereinabove fixed shall be imposed on theaters and cinematographs which
arer-conditioned. SEIDAC
(13) Boxing stadium P300.00
(14) Boxing contests, P100.00 each night plus an
amusement tax of P0.05 per admission ticket
payable to the municipal treasurer next
following business day
(15) Race track for conducting horse
races 2,000.00
Per day or fraction thereof — P50.00
(16) Cockpits: 3,000.00
Per cockfight — Ordinary — P3.00
Per cockfight — Derby — P10.00
Holiday of international derby cockfight,
per day — P2,000.00
Per cockfight, international derby — P100.00
(h) On pawnshops:
Amount of tax
per annum
With capital of —
Less than P50,000.00 P1,000.00
P50,000.00 or more but less than
P100,000.00 1,500.00
P100,000.00 or more but less than
P200,000.00 2,000.00
P200,000.00 or more 4,000.00
(i) On boarding houses with accommodations for —
Amount of tax
per annum
Less than 10 boarders P20.00
10 to 19 boarders 30.00
20 to 39 boarders 40.00
40 or more boarders 50.00
(j) Tax on lodging houses with accommodations for —
Less than 15 lodgers 600.00
15 to 24 lodgers 900.00
25 or more lodgers 1,200.00
(k) Tax on hotels and motels based on gross receipts
for the preceding quarter at the following rates:
Amount of tax
Gross quarterly receipts per quarter
Less than P2,500.00 P15.00
P2,500.00 or more but less than
P5,000.00 P23.00
5,000.00 or more but less than
7,500.00 32.00
7,500.00 or more but less than
10,000.00 40.00
10,000.00 or more but less than
12,500.00 48.00
12,500.00 or more but less than
15,000.00 56.00
15,000.00 or more but less than
17,500.00 64.00
17,500.00 or more but less than
20,000.00 72.00
20,000.00 or more but less than
22,500.00 80.00
22,500.00 or more but less than
25,000.00 88.00
25,000.00 or more but less than
30,000.00 107.00
30,000.00 or more but less than
35,000.00 126.00
35,000.00 or more but less than
40,000.00 145.00
40,000.00 or more but less than
45,000.00 164.00
45,000.00 or more but less than
50,000.00 183.00
50,000.00 or more but less than
55,000.00 202.00
55,000.00 or more but less than
60,000.00 221.00
60,000.00 or more but less than
65,000.00 240.00
65,000.00 or more but less than
70,000.00 259.00
70,000.00 or more but less than
75,000.00 278.00
75,000.00 or more but less than
82,500.00 296.00
82,500:00 or more but less than
90,000.00 314.00
90,000.00 or more but less than
97,500.00 332.00
97,500.00 or more but less than
105,000.00 350.00
105,000.00 or more but less than
112,500.00 368.00
112,500.00 or more but less than
120,000.00 386.00
120,000.00 or more but less than
127,500.00 404.00
127,500.00 or more but less than
135,000.00 422.00
135,000.00 or more but less than
142,500.00 440.00
142,500.00 or more but less than
150,000.00 458.00
150,000.00 or more but less than
160,000.00 478.00
160,000.00 or more but less than
170,000.00 498.00
170,000.00 or more but less than
180,000.00 518.00
180,000.00 or more but less than
190,000.00 538.00
190,000.00 or more but less than
200,000.00 558.00
200,000.00 or more but less than
210,000.00 578.00
210,000.00 or more but less than
220,000.00 598.00
220,000.00 or more but less than
230,000.00 618.00
230,000.00 or more but less than
240,000.00 638.00
240,000.00 or more but less than
250,000.00 658.00
250,000.00 or more but less than
275,000.00 700.00
275,000.00 or more but less than
300,000.00 742.00
300,000.00 or more but less than
325,000.00 783.00
325,000.00 or more but less than
350,000.00 827.00
350,000.00 or more but less than
375,000.00 889.00
375,000.00 or more but less than
400,000.00 911.00
400,000.00 or more but less than
425,000.00 953.00
425,000.00 or more but less than
450,000.00 995.00
450,000.00 or more but less than
475,000.00 1,037.00
475,000.00 to
500,000.00 1,079.00
For every P1,000.00 or fraction thereof in
excess of P500,000.00 1.00
In the case of a newly started business, the tax shall not be less than
the minimum of P15.00 prescribed above. SEIDAC
(l) On private detective or
security
agency P50.00 per annum
(m) On real estate dealers:
(1) Subdivision operators:
Per square meter P0.01 per annum
The computation of the tax on subdivision operators shall be based only
on the total area of the remaining lots titled in the name of the
subdivision operator.
(2) Lessors of real estate based
on gross
receipts for the preceding year, at rates
not exceeding the following:
Amount of tax
per annum
Less than P1,000.00 Exempt
P1,000.00 or more but less than
P4,000.00 P20.00
4,000.00 or more but less than
10,000.00 50.00
10,000.00 or more but less than
20,000.00 150.00
20,000.00 or more but less than
30,000.00 300.00
30,000.00 to
50,000.00 500.00
For every P1,000.00 in excess of
P50,000.00 5.00
In the case of a newly started business of lessors of real estate, the
tax shall not be less than the minimum of P20.00 fixed above.
(n) On golf
links P1,000.00 per annum
(o) On fishponds or fish breeding
grounds, per
hectare or fraction thereof,
P50.00 per annum
(p) Tax on private cemeteries and memorial parks:
Amount of tax
per annum
(1) Less than 2 hectares P500.00
(2) 2 hectares to 5 hectares 750.00
(3) More than 5 hectares 1,000.00
(q) Taxes on billboards, signboards and
advertisements:
(1) Billboards or signboards for advertisement
of business, per square meter or fraction thereof:
Single face 10.00
Double face 20.00
(2) Billboards or signs for professionals, per
square meter or fraction thereof —
8.00
(3) Billboards, signs or advertisements for
business and professions painted on any
building or structure or otherwise
separated or detached therefrom, per square
meter or fraction thereof — 9.00
(4) Advertisements by means of placards, per
square meter or fraction thereof —
9.00
(5) Advertisements for business or profession
by means of slides in movies payable by
owners of moviehouses — 100.00
In addition to the taxes provided above under items
(1) to (5), inclusive, for the use of electric or neon
lights in billboards, per square foot or fraction
thereof — 10.00
(6) Mass display of signs:
Amount of tax per
quarter or fraction
thereof
From 100 to 250 display signs —
P300.00
From 251 to 500 display signs —
450.00
From 501 to 750 display signs —
550.00
From 751 to 1000 display signs —
700.00
1001 or more display signs —
1,500.00
(7) Advertisement by means of vehicles,
balloons, kite, etc.:
Per day or fraction — P40.00
Per week or fraction — 60.00
Per month or fraction — 80.00
Signs, signboards, billboards and advertisements displayed at the place
where the profession or business advertised is conducted shall be
exempt from the tax herein provided. CHTcSE
Section 20. Fees and charges. — The municipality may
collect the following fees and charges, among others, at rates not
exceeding those enumerated hereunder:cralaw:red
(a) Cart and sledge registration fee, per
annum P12.00
(b) Circus or menagerie, parades, and other
parades using banners, floats or musical
instruments, except civic and military parades
and religious procession, P50.00 per day
(c) Registration fees on large cattle:
(1) Certificate of.
ownership 1.00
(2) Certificate of
transfer 2.00
(d) Building permit fee:
(1) Construction of residential
buildings costing:
Not exceeding P3,000.00 10.00
For each succeeding P1,000.00 or
fraction thereof 2.00
(2) Construction of commercial or
industrial
building costing:
Not exceeding P5,000.00 25.00
For each succeeding P1,000.00 or fraction
thereof 4.00
(3) Residential building repairs
costing:
Less than P500.00 Exempt
P500.00 but not exceeding
P1,000.00 2.00
For each succeeding P500.00 or fraction
thereof 1.00
(4) Commercial or industrial
building repairs costing:
Not exceeding P1,000.00 5.00
For each succeeding P1,000.00 or fraction
thereof 2.00
(5) Construction and repairs of
other structures:
Same rates as those fixed under items
(1), (2), (3) or (4) above.
(e) Marriage fees:
(1) Application
fee 10.00
(2) License fee
2.00
(3) Solemnization
fee 5.00
(f) Registration fees on the civil status of persons —
For the registration of documents and for
certified copies of documents on file in the office
of the local civil registrar:
(1) Per registration of
legitimation 5.00
(2) Per registration of an
adoption 5.00
(3) Per registration of an
annulment of marriage 15.00
(4) Per registration of a
divorce 15.00
(5) Per registration of a
naturalization 30.00
(6) Per registration of a change
of name 5.00
(7) For certified copies of any
document in
the register, for each 100 wards
1.00
The civil registrar may issue certified copies of documents free of
charge for official use at the request of a competent court or other
government agency. The issuance of certified copies of birth
certificates of children reaching school age when such certificates are
required for admission to the primary grades of the public schools
shall be considered official and given free of charge:
(g) Secretary's fees —
For the issuance of copies of official records and
documents;
(1) For every 100 words or
fraction thereof,
typewritten (not including the certificate
and any notation) P1.00
(2) Where the copy, to be
furnished is in a
printed form, in whole or in part, for
each page (double this fee if there are
two pages in a sheet) 2.00
(3) For each certificate of
correctness (with
seal of office) written on the copy or
attached thereto 2.00
(4) For copies furnished other
bureaus,
offices and branches of the government for
official business (except those, copies
required by the court at the request of
litigants, in which case charges should be
made in accordance with the above
schedule) Free
(5) For certifying the official
act of a
municipal judge or other certificate (judicial),
with seal 2.00
(6) For certified copies of any
paper, records,
decree, judgment or entry of which any
person is entitled to demand and receive
a copy (in connection with judicial
proceedings), for each 100 words
1.00
(7) Xerox or any other copy
produced by
copying machine, per page 2.00
(8) Photo, copy, per
page 5.00
(h) Police clearance fee, per certificate issued:
(1) For employment, scholarships,
study
grants and other purposes not hereunder
specified 2.00
(2) For firearms permit
application 20.00
(3) For change of
name 20.00
(4) For passport or visa
application 30.00
(5) For application for Filipino
citizenship 100.00
(i) Fees for the impounding and/or sale of astray
animals, including cost of feeds:
(1) Large cattle, per
day 10.00
(2) All other animals, per
day 5.00
(j) Burial permit fee 1.00
(k) Fee for exhumation of cadaver
1.00
(l) Fee for removal of cadaver 3.00
(m) Dog license fee, per annum 2.00
(n) Bicycle permit fee, per annum
5.00
Section 21. Fishery rentals or fees. —
Municipalities, in the exercise of their authority to grant exclusive
fishery rights and license individual fishing gears in municipal
waters, may levy or fix rentals or fees therefor in accordance with the
provisions of this section in conjunction with other operative laws and
regulations on municipal fisheries.
(a) Municipal waters. — Municipal waters includes not
only streams, lakes and tidal waters included within the municipality,
not being the subject of private ownership, and not comprised within
national parks, public forests, timber lands, forest reserves, or
fishery reserves, but also marine waters included between two lines
drawn perpendicularly to the general coastline from points where the
boundary lines of the municipality or city touch the sea at low tide
and a third parallel with the general coastline and distant from it
three nautical miles. Where two municipalities are so situated on the
opposite shores that there is less than six nautical miles of marine
waters between them, the third line shall be a line equally distant
from the opposite shores of the respective municipalities.
AaITCH
(b) Grant of fishery rights and licensing of fishing
vessels. — Pursuant to the authority of the municipality, the municipal
council may:cralaw:red
(1) Grant he exclusive fishery rights to erect fish
corrals, operate fishponds or oyster beds, or take or catch bangus fry
or kawag-kawag or fry of other species for propagation, by public
auction, within definite portion or area of the municipal waters, for
which purpose the council shall divide the municipal waters. into
fishing zones with fixed areas and boundaries and minimum annual rental
for each zone;chanroblesvirtualawlibrary
(2) Grant the privilege of taking fish from municipal
waters by nets, traps or other fishing gears to persons qualified under
the provisions of this Section and other existing laws on municipal
fisheries;chanroblesvirtualawlibrary
(3) Issue licenses for the operation of fishing
vessels of three (3) tons or less, for which purpose the council is
empowered to promulgate, subject to the approval of the Secretary of
Agriculture and Natural Resources, rules and regulations regarding the
issuance of such licenses to qualified applicants under existing law.
A licensee of any locality shall not fish in the municipal waters of
another locality without first securing the necessary license from, and
paying the corresponding taxes and fees therefor to, the latter
municipality.
Deep-sea fishermen duly licensed under Section 18, of Act 4003, as
amended, may be allowed to fish in municipal waters if they secure the
necessary license therefor from the municipal authorities concerned and
pay the corresponding taxes or fees.
(c) Issuance of individual licenses in case no
bidders opt to lease fishing zones. — If, after two notices for the
grant of exclusive fishery rights thru public auction, no interested
bidders opt to lease any fishing zone within the municipal waters, the
municipal council is authorized to grant the privilege of erecting fish
corrals, operating fishponds or oyster culture beds, or catching bangus
fry or kawag-kawag within a definite area or portion of the municipal
waters to individuals upon payment of license fees therefor at the rate
not exceeding those fixed hereunder:cralaw:red
(1) Fish corrals: Annual fee
Less than 3 meters deep P30.00
3 meters deep or more but less than 5 meters
deep 60.00
5 meters deep or more but less than 8 meters
deep 200.00
8 meters deep or more but less than 10 meters
deep 360.00
10 meters deep or more but less than 15 meters
deep 500.00
15 meters deep or more 800.00
(2) Operation of fishponds or oyster culture beds:
Per hectare P10.00
(3) Catching bangus fry or kawag-kawag:
Less than 1,000 square meters
500.00
1,000 sq. m. or more but less than 2,000 sq.
m. 800.00
2,000 sq. m. or more but less than 4,000 sq.
m. 1,500.00
4,000 sq. m. or more but less than 6,000 sq.
m. 2,200.00
6,000 sq. m. or more but less than 8,000 sq.
m. 3,000.00
8,000 square meters or over
4,000.00
(d) Privilege of residents to take fish in municipal
waters. — Any person who is not a grantee of a license or privilege to
engage in commercial fishing shall be allowed to fish for domestic use,
in any municipal waters, in case no communal fishery therein has been
established: Provided, however, That in no case shall fishing be
allowed within two hundred meters from a fish corral licensed by the
city or municipality: And provided, further, That no fish caught under
this privilege shall be sold. AaITCH
Section 22. Specific limitations on power. — Except
as otherwise provided in this Code, the municipality shall not levy the
following:cralaw:red
(a) Taxes, fees, and charges that the province or
city is authorized to levy in this Code;chanroblesvirtualawlibrary
(b) Taxes on articles, subject to specific tax under
the provisions of the National Internal Revenue Code; and
(c) Taxes and other impositions enumerated in Section
5, Chapter I of this Code.
ARTICLE 3
Cities
Section 23. Scope of power. — Except as otherwise
provided in this Code, the city may levy and collect, among others, any
of the taxes, fees and other impositions that the province or the
municipality may levy and collect. The exercise of the taxing powers of
the city extends to the taxes, fees and other impositions mentioned in
Sections 12, 13, 14, 15 and 16 of this Code which the city shall also
impose and collect, to the exclusion of the national and municipal
governments.
The rates of the taxes, fees, or other impositions that the city shall
fix may exceed the maximum rates allowed for the province or
municipality by not more than fifty per cent, except the rates of the
taxes and fees provided in Sections 12, 13, 14 in Chapter II of this
Code which shall be uniform for the province and the city.
In lieu of the graduated fixed tax prescribed under Section 19 of this
Code as read in relation with this Section, the city may impose a
percentage tax on the sales of non-essential commodities at the rate of
not exceeding two per cent and on the sales of essential commodities at
the rate of not exceeding one per cent. In no case, however, shall the
city impose both the graduated fixed tax and the percentage tax on the
same subject.
For purposes of this tax, the following shall be considered essential
commodities:cralaw:red
(a) Rice, corn, wheat flour, meat, milk, fish, sugar,
salt and other agricultural, marine and fresh-water products;chanroblesvirtualawlibrary
(b) Laundry soap, medicine and household remedies;chanroblesvirtualawlibrary
(c) Locally manufactured ordinary fabrics and canned
foodstuffs;chanroblesvirtualawlibrary
(d) Commodities covered by the Price Control Law; and
(e) Such other related and similar products necessary
to human life and well-being.
The city may levy any tax, fee or other imposition not specifically
enumerated or otherwise provided for in this Code, subject to the
provisions of Sections 49 and 50 of this Code. AaITCH
Section 24. Additional taxing powers. — Nothing
herein shall be construed as prohibiting the city from levying taxes on
articles subject to specific tax under the provisions of the National
Internal Revenue Code but in case shall the rate of the specific tax
imposed by the city on such articles exceed twenty-five per cent of the
rates provided in the National Internal Revenue Code.
Section 25. Specific limitation on power. — Except as
otherwise provided in this Code, the city shall not levy the taxes and
other impositions enumerated in Section 5, Chapter I of this Code.
ARTICLE 4
Barrios
Section 26. Scope of power. — Except as otherwise
authorized, the exercise of the taxing and other revenue-raising powers
of the barrio is hereby limited to the taxes, fees, charges, and
contributions mentioned in this Article.
Section 27. License taxes and fees. — A barrio may
levy taxes or fees on the following, at rates that shall not exceed
twenty-five per cent, in the case of a barrio in a municipality, and
ten per cent, in the case of barrio in the city, of a similar tax or
fee already imposed by the city or municipality:cralaw:red
(a) Stores and signs, signboards and billboards
displayed or maintained in any place exposed to public view, except
those displayed at the place where the profession or business
advertised is conducted; and
(b) Gamecocks owned by residents of the barrios and
on the cockfights conducted therein. Nothing herein shall be construed
as to authorize the barrio council to permit cockfights.
Section 28. Service charges. — Barrios may collect
reasonable charges for services rendered in connection with the
regulation of the use of barrio-owned properties or service facilities
such as palay, copra or tobacco drier and the like.
Section 29. Contributions. — In addition to the
above-specified taxing and other revenue-raising powers, the barrio
council may solicit monies, materials, and other contributions from the
following sources:cralaw:red
(a) Monies, materials and voluntary labor for
specific public works and cooperative enterprises of the barrio raised
from residents, landholders, producers, and merchants of the barrio;chanroblesvirtualawlibrary
(b) Monies from grants-in-aid, subsidies,
contributions, and revenue made available to barrios from municipal,
provincial or national funds; and
(c) Monies from private agencies and individuals.
AaITCH
ARTICLE 5
Common Revenue-Raising Powers
Section 30. Market fees. — Local governments may
collect fees or rentals for the occupancy or use of public markets and
premises in accordance with the provisions of this Section.
(a) Subdivision of market building and rates of fees
and rentals therefor. — The public market shall be subdivided into
sections with each section housing one class or group of allied goods,
commodities or merchandise. The local board or council shall fix for
each section, reasonable rates of fees or rentals per square meter of
space per month and/or day.
In case there are several market buildings, or pavilions each one of
them shall be given a number or other designation for better
identification.
(b) Rentals for fixed stalls, booths and tiendas. —
Rentals for fixed stalls, booths and tiendas shall be fixed by the
month to be paid within the first twenty days of the month. The fixed
stalls, booths and tiendas situated in the best locations shall be
assigned higher rates per square meter than those less favorably
located: Provided, That said higher rates per square meter shall be
within the range of such rates determined by the local board or council
as provided in Subsection (a) of this Section. SEIDAC
(c) Market fees for the occupancy of market premises.
— The market fees for the occupancy of market premises shall be fixed
at such reasonable rate per day per square meter of space occupied
therein, or a fraction thereof.
(d) Market entrance fee. — In lieu of the regular
market fees based on the space occupied, a market entrance fee may be
imposed on all transient vendors of any commodity or merchandise being
brought into the public market for sale on the basis of weight, bundle,
sack, can, cartload, or any other convenient unit of measure. The
amount of entrance fee to be imposed shall not exceed the amount of
market fee that would be collectible where the fee charged is on the
basis of space occupied by the said commodity or merchandise, as
provided in the preceding subsection.
In case the vendor from whom an entrance fee was collected occupies any
table, cubicle or other space with an area in excess of what he paid
for, he shall be required to pay the correct amount of fee due thereon
less what he may have already paid as entrance fee.
Duly licensed suppliers or distributors of goods, commodities or
general merchandise of permanent occupants of market stalls, booths,
tiendas, or other space, as well as the same occupants when they bring
in goods, commodities or merchandise to replenish or augment their
stock, shall not be considered as transient vendors required to pay the
market entrance fees herein authorized.
(e) Payment of fees. — Unless otherwise provided
herein, the market fee must be paid in advance before any person can
sell, or offer to sell, any commodity or merchandise within the public
market and its premises.
(f) Adjudication of vacant market stalls to
applicants. — The Secretary of Finance shall promulgate rules and
regulations governing the adjudication of vacant stalls in the public
market to applicants. AaITCH
(g) Duties and powers of the provincial, city and
municipal treasurer. — The treasurer shall exercise direct and
immediate supervision, administration and control over public markets
and the personnel thereof, including those whose duties concern the
maintenance and upkeep of the market and market premises, in accordance
with local ordinances and other pertinent rules and regulations. The
provincial treasurer shall exercise general supervision over municipal
public markets.
(h) Issuance of cash tickets to transient vendors;
prohibition on transfer thereof. — Cash tickets shall be issued to the
vendor buying the same and his name shall be written on the back
thereof. The cash tickets shall pertain only to the person buying the
same and shall be good only for the space or spaces of the market
premises to which they are assigned while in the hands of the original
purchaser. If a vendor disposes of his merchandise by wholesale to
another vendor, the latter shall purchase new tickets if he desires to
sell the same merchandise even if this is done in the same place
occupied by the previous vendor. HDICSa
(i) Prohibition. — The peddling or sale outside the
public market site or premises of foodstuffs which easily deteriorate,
like fish and meat, is hereby prohibited.
(j) Penalties. — Any person occupying or using space
in the public market without first paying the fees hereinabove
provided, shall be subject to the payment of market fees in an amount
equivalent to three times as much as the regular rate for the space so
occupied. Any person occupying more space than what is duly leased to
him shall pay double the regular rate for such extra space; and any
person who fails to pay the monthly rent within the time fixed herein
shall pay a penalty of twenty-five per cent of the rent due. The lease
contract of any person found habitually incurring the foregoing
violations shall be cancelled.
Section 31. Slaughterhouse fees. — Local governments
may collect fees for the slaughter of animals and the use of corrals in
accordance with the provisions of this Section.
(a) Permit fee to slaughter. — Before any animal is
slaughtered for public consumption, a permit therefor shall be secured
from the health officer concerned or his duly authorized representative
thru the treasurer and the corresponding fee collected at a reasonable
rate to be fixed by the local board or council.
(b) Rates of slaughter fees. — Slaughter fees may be
fixed per head of animals or per kilo of the dressed meat thereof. In
any case, the slaughter fees that may be prescribed shall not exceed
the following rates:cralaw:red
For public consumption on the basis of head:
Large cattle, per head P5.00
Hogs, per head 3.00
Goats, per head 2.00
Sheep, per head 2.00
Others, per head 2.00
For public consumption on the basis of kilo:
Large cattle, per kilo of dressed
meat P0.05
Hogs, per kilo of dressed meat 0.03
Goats, per kilo of dressed meat
0.02
Sheep, per kilo of dressed meat
0.02
Others, per kilo of dressed meat
0.02
For home consumption on the basis of head:
Large cattle, per 'head P2.50
Hogs, per head 1.50
Goats, per head 1.00
Sheep, per head 1.00
Others, per head 1.00
For home consumption on the basis of kilo:
Large cattle, per kilo P0.025
Hogs, per kilo 0.015
Goats, per kilo 0.01
Sheep, per head 0.01
Others, per kilo 0.01
If fees are to be charged per kilo, each slaughterhouse shall be
provided with a balance on which all dressed meat, including the liver,
heart, tongue, and other parts utilized for consumption shall be
weighed. The weighing shall be made under the supervision of the
city/municipal treasurer or his duly authorized representative. AaITCH
(c) Place of slaughter. — The slaughter of any kind
of animal for sale to, or consumption of, the public shall be done only
in the municipal slaughterhouse. The slaughter of animals intended for
home consumption may be done elsewhere except large cattle; Provided,
That the animals slaughtered shall not be sold or offered for sale.
(d) Requirements for the issuance of a permit for the
slaughter of large cattle. — Upon issuance of the permit required in
subsection (c) of this section; large cattle shall be slaughtered at
the city/municipal slaughterhouse or in any other place as may be
authorized in the local ordinance. Before issuing the permit for the
slaughter of large cattle, the treasurer shall require for branded
cattle the production of the certificate of ownership if the owner is
the applicant, or the original certificate of ownership and the
certificate of transfer showing title in the name of the person
applying for the permit if he is not the original owner. If the
applicant is not the original owner and there is no certificate of
transfer made in his favor, one such certificate shall be issued and
the corresponding fee collected therefor. For unbranded cattle that
have not yet reached the required age for branding, the treasurer shall
require such evidence as will be satisfactory to him regarding the
ownership of the animal for which permit to slaughter has been
requested. For unbranded cattle of the required age, the necessary
owners' and transfer certificates shall be issued and the corresponding
fees collected therefor before the permit is granted.
(e) Corral fee. — Fees at the rates not exceeding
those herein fixed, per day or fraction thereof may be collected for
the animals to be slaughtered which are deposited and kept in a corral
owned by the local government.
Large cattle, per head P0.50
Hogs, per head 0.30
Goats, per kilo 0.20
Sheep, per head 0.20
Others, per head 0.20
Section 32. Public utility charges. — Local
governments shall have the power to collect charges for services
rendered in connection with the operation of public utilities owned,
operated, and maintained by them, at the rates to be fixed by the local
board or council concerned. The maximum annual net profit that may be
derived therefrom shall not be in excess of ten per cent of the capital
invested in the public utility.
The yearly financial statements covering the utility shall be audited
by the provincial or city auditor concerned and should the amount of
net profit of the public utility be found to be in excess of the
percentage herein fixed, the charges thereof shall be accordingly
adjusted and the excess shall be spent only for the improvement of the
public utility.
Section 33. Tuition fees. — Local governments may
collect tuition fees in the schools they operate, subject to the
approval of the Secretary of Education and Culture. No charge shall in
any case be made for instruction in the elementary grades. Monies
collected from tuition fees shall be spent only for educational
purposes.
Section 34. Tolls for roads, bridges, canals and
ferries. — When the local board or council shall deem it necessary for
the maintenance of any road or canal within its territory, it may
designate that road or canal or part thereof, or any bridge or ferry,
built, or to be built, or maintained as part thereof, as a toll road,
bridge, canal or ferry, and may fix tolls therefor at reasonable rates.
AaITCH
In the exercise of the authority above conferred, the local board or
council may erect toll gates or equip ferries and may employ persons
necessary to operate them. The proceeds derived from these sources
shall be applied only to the payment of interests and sinking fund
charges, in case the toll road, canal or bridge has been financed from
loans or bond issues, and to the repair and maintenance of the road,
canal or bridge for which the collections were made.
In the event that such proceeds exceed the amount which the local
government shall apply annually to the payment of interests and sinking
fund charges on the bonds and to the repair and maintenance of the
road, canal or bridge for which the collections were made, the local
board or council may, subject to the approval of the Secretary of
Public Works and Communications and upon such terms and conditions as
he may prescribe, borrow from the proceeds not to exceed ninety per
cent of the excess collections, without interest and for public works
only.
Whenever, thirty days after service of a request by the provincial
board, any municipality shall decline or neglect to establish and
maintain a suitable ferry over any stream or other water situated upon
the course of a municipal road, the provincial board may establish and
maintain a provincial toll ferry at that place and collect reasonable
rates of ferriage for its use. No toll or ferriage authorized herein
shall be collected from (a) officers and enlisted men of the United
States Armed Forces or other employees of the United States Government
in the Philippines; (b) officers and enlisted men of the Armed Forces
of the Philippines; (c) members of the municipal police; (d) national,
provincial, municipal or barrio officers and employees, on official
business; (e) any person, travelling on foot or mounted on an animal,
alone or accompanying animals; (f) vehicles engaged primarily in the
carrying of mail; and (g) animal-drawn vehicles.
When the local board or council decides that the collection of tolls in
accordance with the provisions hereof may be discontinued without
injury to the public welfare, it shall order a discontinuance of the
collection of the tolls, and thereafter the road, bridge, canal or
ferry in question shall be free for public use.
Section 35. Charges for holding benefits. — The local
board or council is hereby authorized to hold benefits to raise funds
for some specific purpose having in view the general welfare of the
local government and its inhabitants, without the need of securing a
permit from the Department of Social Welfare. The proceeds thereof
shall be disbursed for the specific purpose for which the benefit was
held and the excess of the proceeds, if any, shall accrue to the
general fund of the local government concerned.
No such benefit shall be held within one hundred twenty days
immediately preceding a national or local elections.
Section 36. Permit fee. — The local government may
collect a fee sufficient to cover the cost of regulation, inspection,
and surveillance relative to the issuance of a permit which shall be
required of an individual or any juridical entity before the same shall
engage in any business or occupation under the provisions of this
Code. DCSTAH
Section 37. Service charge. — The local government
may collect a charge for any service rendered by it in amount
reasonably commensurate to such service.
ARTICLE 6
Residence Tax
Section 38. The imposition, rates and sharing of the
proceeds of the residence tax. — The levy, collection and
administration of the residence tax by the national government through
the Bureau of Internal Revenue as well as the rates and accrual of the
proceeds thereof shall be in accordance with the provisions of this
Article. AaITCH
(a) Individual liable to residence tax. — Every
inhabitant of the Philippines eighteen years of age or over who has
been regularly employed on a wage or salary basis for at least thirty
consecutive working days during any calendar year at the rate of not
less than one peso a day, or who is engaged in business or occupation,
or who owns real property with an aggregate assessed value of one
thousand pesos or more, or who is required by law to file an income tax
return shall pay an annual residence tax of one peso and an annual
additional tax which in no case shall exceed three thousand pesos in
accordance with the following schedule:cralaw:red
(1) For every five thousand pesos worth of real
property in the Philippines, owned by such person during the preceding
year, based on the valuation used for the payment of the real property
tax under existing laws, found in the assessment rolls of the
municipality or city where the property is situated, two pesos;chanroblesvirtualawlibrary
(2) For every five thousand pesos of gross receipts
or earnings, in excess of ten thousand pesos, derived by such person
from his business in the Philippines during the preceding year, two
pesos; and
(3) For every one thousand pesos of salaries or gross
receipts or earnings derived by such person from the exercise of any
profession in the Philippines or from the pursuit of any occupation
therein during the preceding year, one peso.
For the purposes of the additional tax, dividends, received by the
taxpayer from any corporation shall not be considered as part of his
gross receipts or earnings.
In the case of husband and wife, the additional tax herein imposed
shall be based upon the total property owned by them or upon the total
gross receipts or earnings derived by them.
(b) Entities liable to residence tax. — Every
corporation no matter how created or organized, whether domestic or
resident foreign, engaged in or doing business in the Philippines shall
pay an annual residence tax of fifty pesos and an annual additional tax
which, in no case, shall exceed six thousand pesos, in accordance with
the following schedule:cralaw:red
(1) For every five thousand pesos worth of real
property in the Philippines owned by it during the preceding year,
based on the valuation used for the payment of the real property tax
under existing laws, found in the assessment rolls of the municipality
or city where the real property is situated, two pesos; and
(2) For every five thousand pesos of gross receipts
or earnings, derived by it from its business in the Philippines during
the preceding year, two pesos. However, the dividends received by a
corporation from another corporation shall not, for the purpose of the
additional tax, be considered as part of the gross receipts or earnings
of said corporation.
(c) Exemptions. — The following are exempt from the
residence tax:cralaw:red
(1) Diplomatic and consular representatives and
officers of foreign powers;chanroblesvirtualawlibrary
(2) Members of the United States Armed Forces;chanroblesvirtualawlibrary
(3) Civilian officers and employees of the military,
naval or any other branch of the United States Government who are not
Filipino citizens; and AaITCH
(4) Transient visitors when their stay in the
Philippines does not exceed three months.
(d) Place of payment. — The residence taxes due from
an individual or a juridical entity shall be paid in the place of
residence of the individual or in the place where the principal office
of the juridical entity is located.
(e) Time for payment; penalties for delinquency. —
Liability for the residence taxes accrues on the first day of January
of each year as regards persons then residents of the Philippines and
liable to the taxes; and if a person so liable fails to pay the taxes
on or before the thirty-first day of March, he shall be delinquent. As
regards those who come to reside in the Philippines on or before the
last day of June, and those who reach the age of eighteen years or
otherwise lose the benefit of exemption on or before that day,
liability shall attach upon the day of arrival or upon the day the
exemption ceases; and if arriving or becoming liable on or before the
last day of March, they shall likewise be delinquent upon failure to
pay the taxes on or before the thirtieth day of June, but such persons,
arriving or becoming liable after the last day of March shall have
twenty days within which to pay the taxes without becoming delinquent.
Persons who come to reside in the Philippines or arrive at the age of
eighteen years on or after the first day of July of any year or who
cease to belong to an exempt class on or after the same date, shall not
be subject to the taxes for that year.
As regards corporations which may be established or organized on or
before the thirtieth of June, liability for the residence tax for that
year shall attach, and if becoming liable on or before the last day of
March, shall have twenty days within which to pay the taxes without
becoming delinquent; those which may be established or organized on or
after the first day of July or any year, shall not be subject to the
tax for such year.
If the taxes are not paid within the time prescribed above, there shall
be added to the unpaid amount an interest of fourteen per cent from the
due date until it is paid.
(f) Residence certificate. — A residence certificate
shall be issued to every person or corporation upon payment of the
residence tax. A residence certificate shall also be issued to any
person or corporation not liable to the payment of the residence tax
upon payment of fifty centavos.
(g) Presentation of residence certificate upon
certain occasions. — When a person liable to the taxes prescribed in
this Section acknowledges any document before a notary public, takes
the oath of office upon election or appointment to any position in the
government service; receives any license, certificate or permit from
any public authority; pays any tax or fee, receives any money from any
public fund; or transacts other official business; or receives any
salary or wage from any person or corporation it shall be the duty of
such person or officer of such corporation with whom such transaction
is had or business done or from whom any salary or wage is received to
require the exhibition of the residence certificate showing the payment
of the residence taxes by such person.
The presentation of the residence certificate shall not be required in
connection with the registration of a voter.
When, through its authorized officers, any corporation liable to the
taxes prescribed in this Section receives any license, certificate or
permit from any public authority, pays any tax or fee, receives any
money from any public fund, or transacts other official business, it
shall be the duty of the public officials with whom such transaction is
had or business done to require the exhibition of the residence
certificate showing the payment of the residence taxes by such
corporation. AaITCH
The certificate mentioned in the two preceding paragraphs shall be the
one issued for the current year, except from January until April
fifteen of each year and except also in the cases of the payment of the
residence tax at any time during the year, in which cases the
exhibition of the certificate for the previous year shall suffice.
(h) Collection and disposition of the proceeds. — The
Bureau of Internal Revenue shall collect the residence taxes thru the
city and municipal treasurers in accordance with prescribed regulations.
The proceeds of the tax shall accrue to the general funds of provinces,
cities and municipalities except five per cent thereof which shall
accrue to the general fund of the National Government to cover the
costs of printing and distribution of the forms and other incidental
expenses. The provincial or city treasurer concerned shall remit to the
National Treasurer the five per cent share of the National Government
in the proceeds of the tax within ten days after the end of each
quarter.
The remaining ninety-five per cent collected by municipalities shall be
divided equally between, the province and the municipality where the
tax is collected.
The Municipal Treasurer shall retain the share of the municipality and
remit to the Provincial Treasurer the share of the province, as well as
the five per cent share of the National Government, within five days
after the end of each month.
(i) Administrative remedies. — The provisions of this
Code in relation to the collection of taxes not inconsistent with the
provisions of this Section are extended and made applicable to all the
provisions of this Section and to the taxes herein imposed. AaITCH
(j) Authority of the Secretary of Finance to
promulgate rules and regulations. — The Secretary of Finance shall
promulgate all rules and regulations for the effective enforcement of
the provisions of this Section.
(k) Unlawful use of residence certificates. — Any
person who, with intent to defraud the government, deceives the courts,
or misleads any treasurer or other person, uses, attempts to use, or is
in possession of any residence certificate issued to any other person
or corporation shall be punished by a fine of not exceeding two hundred
pesos or imprisonment for a term of not more than six months, or both.
(l) Falsification or counterfeiting of residence
certificate. — Any person who makes, sells, or uses any false or
counterfeit residence certificate which is an imitation of, or purports
to be, a lawful residence certificate; who alters the written or
printed figures or letters contained therein; who has in his possession
any such false, counterfeit or altered certificate for the purpose of
using the same in the payment of revenue or in securing any exemption
or privilege conferred by law; or who procures the commission of any
such offense by another, shall for each offense be punished by a fine
in a sum not less than two hundred pesos nor more than five thousand
pesos, or imprisonment for a term of not less than two months nor more
than five years, or both.
(m) Violation of this section or regulation. — Any
person who violates any provision of this section, or any regulation
promulgated in accordance therewith, for which delinquency no specific
penalty is provided by this section or any law, shall be punished by a
fine of not more than three hundred pesos, imprisonment for not more
than six months, or both: Provided, That delinquency in the payment of
this residence tax shall be dealt with in accordance with Subsections
(e) and (i) hereof. TIEHSA
CHAPTER III
General Administrative Provisions
ARTICLE 1
Ordinances
Section 39. Ordinance. — A legislative act passed by
the local board or council in the exercise of its law-making authority
shall be denominated as an ordinance.
Section 40. Numbering of ordinances. — Ordinances of
the local board or council shall be numbered consecutively throughout
the calendar year and continuously from year to year.
Section 41. Approval of tax ordinances by local chief
executive; veto power. — A tax ordinance passed by the local board or
council shall be approved and signed by the local chief executive
concerned. If he considers any such ordinance prejudicial to the public
welfare, he may veto it by signifying to the proper law-making body his
disapproval thereof in writing. The law-making body may, by a
two-thirds (2/3) vote of all its members, pass the ordinance over the
veto, in which case it shall be deemed approved without the chief
executive's approval or signature. If said chief executive fails to
approve or veto a tax ordinance within ten days after its passage, it
shall likewise be deemed approved. AaITCH
Section 42. Effectivity of tax ordinance. — A tax
ordinance shall go into effect on the fifteenth day after its approval
unless the ordinance shall provide some other date which shall in case
be earlier than ten days after its approval.
Section 43. Publication of tax ordinance. — Within
ten days after their approval, certified true copies of all provincial,
city, municipal and barrio ordinances levying or imposing taxes, fees
or other charges shall be published for three consecutive days in a
newspaper or publication widely circulated within the jurisdiction of
the local government, or posted in the local legislative hall or
premises and in two other conspicuous places within the territorial
jurisdiction of the local government. In either case, copies of all
provincial, city, municipal and barrio ordinances shall be furnished
the treasurers of the respective component and mother units of a local
government for dissemination.
Section 44. Review and suspension of tax ordinance. —
Within fifteen days after its approval, a certified true copy of a tax
ordinance shall be furnished; the Secretary of Finance by the
provincial board or city council; the provincial treasurer, by the
municipal or barrio council; or the city treasurer by the barrio
council in the city's jurisdiction. If, within one hundred and twenty
days after receipt of a copy thereof, the Secretary of Finance or the
provincial or city treasurer, as the case may be, takes no action as
authorized in this section, the tax ordinance shall remain in force.
The Secretary of Finance, the provincial treasurer, or the city
treasurer, as the case may be, shall review and have the authority to
suspend the effectivity of any tax ordinance within, one hundred and
twenty days after receipt of a copy thereof, if, in his opinion, the
tax or fee therein levied or impose unjust, excessive, oppressive,
confiscatory, or not among those that the particular local government
may impose in the exercise of its power in accordance with this Code;
or when the tax ordinance is, in whole or in part, contrary to declared
national economic policy; or when the ordinance is discriminatory in
nature on the conduct of business or calling or in restraint of trade.
When the Secretary of Finance, the provincial treasurer, or city
treasurer, as the case may be, exercises this authority, the
effectivity of such ordinance shall be suspended, either in part or, if
necessary, in toto. The local legislative body, within thirty days
after receipt of the notice of suspension, may either modify the tax
ordinance to meet the objections thereto or file an appeal with the
proper court, otherwise, the tax ordinance or the part or parts thereof
declared suspended shall be considered as revoked.
An appeal shall not stay the order of suspension nor does it authorize
the local legislative body to reimpose the same tax or fee levied under
a suspended ordinance until such time as the grounds for the suspension
thereof shall have ceased to exist or the appeal has been resolved in
its favor. Any tax or fee paid pursuant to the ordinance involved shall
be considered as having been paid under protest.
In case the appear is resolved in favor of the local government, the
tax or fee that would have been collected if there were no order of
suspension shall immediately be collected without interest and
surcharge. In case the order of suspension is upheld, the court shall
forthwith order the refund of the tax or fee paid under protest to the
taxpayer. AaITCH
Section 45. Formal protest against a tax ordinance. —
A formal protest based on grounds provided in the preceding section may
be filed with the Secretary of Finance within one hundred and twenty
days after the approval of the tax ordinance of any local government,
or after the date of the initial implementation thereof, and the
Secretary shall have sixty days, after receipt of the protest, to
decide the same.
If the Secretary suspends in part or in full the protested tax
ordinance, the local legislative body, within thirty days after receipt
of the notice of suspension, may either modify the ordinance in
accordance with the decision of the Secretary or exercise the right to
appeal to the proper court. The appeal, however, shall not stay the
order of suspension nor authorize the local legislative body to
reimpose the same tax.
Any tax or fee paid pursuant to a protested ordinance or any part
thereof shall be considered as having been paid under protest until
final resolution of the issues raised. In case an appeal is resolved in
favor of the local government, the tax or fee that would have been
collected if there were no order of suspension shall immediately be
collected together with any interest or surcharge due thereon. In case
the order of suspension is upheld, the court shall forthwith order the
refund of the tax or fee, or such portion thereof in excess of the
maximum authorized, paid pursuant to said protested ordinance,
irrespective of whether payment had been made before or after the
protest was filed.
Section 46. Ordinances considered revoked. — When the
thirty-day period within which the local government may file an appeal
as provided in the two preceding sections has lapsed without an appeal
being perfected, or when the local board or council has not removed the
objections to the suspended ordinance, said ordinance is deemed
revoked, and the Secretary shall order the refund to the taxpayer of
the tax or fee, or such portion in excess of that authorized, paid
pursuant to said suspended ordinance.
The Secretary of Finance shall promulgate the rules and regulations
implementing the provisions of these sections governing the review and
suspension of tax ordinances. SCaTAc
Section 47. Question on the legality of a tax
ordinance. — Any question or issue raised against the legality of any
tax ordinance, or portion thereof, on grounds other than those
mentioned in Section 44 of this Code, shall be referred for opinion to
the Provincial Fiscal, in the case of provincial, municipal and barrio
tax ordinances, or to the City Fiscal, in the case of tax ordinances of
the city and barrios within the city, whose opinion shall be rendered
within a period of thirty days after receipt by him of the query or
protest. The opinion of the Provincial or City Fiscal, as the case may
be, shall be appealable to the Secretary of Justice who shall render an
opinion on the matter within sixty days after receipt of the appeal.
The decision of the Secretary of Justice shall be final and executory
unless, within thirty days upon receipt thereof, the aggrieved party
contests the same in a court of competent jurisdiction.
Section 48. Attempt to enforce void or suspended tax
ordinance. — Any attempt to enforce a tax ordinance after due notice of
the disapproval or suspension thereof by the proper authority to the
officers or employees trying to enforce the same shall be sufficient
ground for the latter's dismissal from the service.
Section 49. Similar tax or fee not specifically
enumerated. — The local board or council may exercise the power to
impose a tax or fee on a tax base or subject similar to those
authorized in this Code but which may not have been specifically
enumerated herein, the rate of which shall in no case exceed that fixed
for the similar tax base or subject. AaITCH
Section 50. Tax or fee not provided for. — Where the
tax base or tax subject is not similar or comparable to any tax base or
subject specifically mentioned or otherwise provided for in this Code,
the province, city or municipality may impose a tax, fee or other
imposition thereon which shall not be unjust, excessive, oppressive or
confiscatory to declared national economic policy. Such a tax, fee or
other imposition shall only be collectible, without interests or other
surcharges on the initial payment, after review and approval of the
ordinance imposing the same by the Secretary of Finance.
Section 51. Administrative or regulatory measures. —
An ordinance may provide administrative or regulatory measures
necessary in the conduct of a business or industry, or the practice of
a profession or occupation, or to protect public interest, and the
local government may impose a regulatory fee commensurate to the
service rendered in the implementation thereof.
No board or council, however, may enact any administrative or
regulatory measure that will in any manner be discriminatory or in
restraint of trade.
Section 52. Penal provisions of tax ordinance. —
Except as otherwise specifically provided in this Code, the local board
or council is authorized to prescribe fines or penalties for violations
of an ordinance but in no case shall such fines or penalties exceed one
thousand pesos, or imprisonment for six months, or both, at the
discretion of the court.
ARTICLE 2
Collection of Taxes
Section 53. Fixing of the tax and manner of payment.
— Except as otherwise provided in this Code, all local taxes shall be
fixed by the year, although the same may be paid in quarterly
installments. AaITCH
Section 54. Accrual of the tax. — All local taxes
shall accrue on the first day of January of each year as regards
subjects then liable therefor, but an entirely new tax, or any change
in the rate of an existing tax, provided by an ordinance, enacted
during the current year shall be effective as provided under section
forty-two hereof. In the latter case, should the effectivity fall on
any date other than the beginning of the quarter, the same shall be
considered as falling at the beginning of the following quarter.
Section 55. Time for the payment. — Unless otherwise
specifically provided in this Code, all taxes due and accruing to the
local governments shall be paid within the first twenty days of January
or of each subsequent quarter, as the case may be. The local board or
council may for a justifiable reason or cause, like floods, fire,
typhoons and other natural calamities, extend for an additional period
of not exceeding thirty days the time for payment of a license tax
without penalty.
Section 56. Surcharges and interests on unpaid tax,
fee, or charge. — Except as otherwise specifically provided in this
Code, failure to pay the tax, fee, or charge within the time required
shall subject the taxpayer to a surcharge not exceeding twenty-five per
cent of the amount of the tax, fee, or charge due plus an interest upon
the unpaid amount at the rate of fourteen per cent per annum from the
due date until the tax, fee, or charge is fully paid, except tuition
fees which shall not be subject to any surcharge or interest.
Where an extension of time for the payment of the tax has been granted
and the amount is not paid in full prior to the expiration of the
extension, the interest of fourteen per cent per annum shall be
collected on the unpaid amount from the date it becomes originally due
until fully paid.
Section 57. Interest on other unpaid revenues. —
Where the amount of any other revenue due the local government, except
voluntary contributions or donations, is not paid on the date fixed in
the ordinance, in the contract, expressed or implied, or upon the
happening of the event which gave rise to its collection, there shall
be collected as part of that amount, an interest thereon at the rate of
one-half per cent a month from the due date until it is paid.
Section 58. Collection of local revenue by treasurer.
— All the taxes, fees and charges due to local governments shall be
collected by the provincial, city, municipal, or barrio treasurer, or
their duly authorized deputies.
Section 59. Examination of books of accounts and
pertinent records of businessmen by provincial or city treasurer. — For
the purpose of effective enforcement and collection of the taxes, fees
and charges provided in this Code, the provincial or city treasurer
may, by himself or thru any of his deputies duly authorized in writing,
examine the books, accounts and other pertinent records of any person,
partnership, corporation or association doing business within his
jurisdiction to verify, assess and collect the true and correct amount
of the tax due from the taxpayer concerned. Such examination shall be
made during regular business hours, not oftener than once every year
for each business establishment. Any examination conducted pursuant to
the provisions of this section shall be certified to by the examining
official and such certificate shall be made of record in the books of
accounts of the taxpayer concerned. AaITCH
In a case where the examination herein authorized is made by a duly
authorized deputy of the provincial or city treasurer, the written
authority of the former shall specifically state the name, address and
business of the taxpayer whose books, accounts and pertinent records
are to be examined, the date and place of such examination, and the
procedure to be followed in conducting the same.
ARTICLE 3
Civil Remedies for Collection of Revenues
Section 60. Application of Article. — The provisions
of this Article and the remedies provided herein may be used, as far as
their nature permits, for the collection of any delinquent local tax or
other revenue.
Section 61. Local government's lien. — Local taxes
and other revenues due a local government constitute a lien in its
favor, enforceable by proper legal action, superior to all liens or
charges in favor of private parties not only upon any property which
may be subject to the charge but also upon property used in the
exercise of the occupation, business, or privilege in respect to which
the charge is imposed and upon all property rights therein.
Section 62. Civil Remedies. — The civil remedies
available to enforce payment of delinquent taxes shall be by distraint
of personal property, and by legal action. Either of these remedies or
both simultaneously may be pursued at the discretion of the proper
authority.
The payment of other revenues accruing to local governments shall be
enforced by legal action.
Section 63. Distraint of personal property. — The
remedy by distraint shall proceed as follows:cralaw:red
(a) Seizure. — Upon failure of the person owning any
local tax to pay the same at the time required, the treasurer or his
deputy may, upon written notice, seize or confiscate any personal
property belonging to that person or any personal property subject to
the tax lien, in sufficient quantity to satisfy the tax in question,
together with any increment thereto incident to delinquency and the
expenses of seizure. In this case, the treasurer or his deputy shall
issue a duly authenticated certificate based upon the records of his
office showing the fact of delinquency and the amount of the tax and
penalty due. This shall serve as sufficient warrant for the distraint
of personal property aforementioned, subject to the taxpayer's right to
claim exemption under the provisions of Section 31 of Commonwealth Act
No. 470 (the Assessment Law), as amended. Distrained personal property
shall be sold at public auction in the manner herein provided for.
(b) Accounting of distrained goods. — The officer
executing the distraint shall make or cause to be made an account of
the goods or effect distrained, a copy of which signed by himself shall
be left either with the owner or person from whose possession the goods
or effects were taken or at the dwelling or place of business of that
person and with someone of suitable age and discretion, to which list
shall be added a statement of the sum demanded and a note of the time
and place of sale. DIEAHc
(c) Publication. — The officer shall forthwith cause
a notification to be exhibited in not less than two public places in
the territory of the local government where the distraint is made,
specifying the time and place of sale and the articles distrained. The
time of sale shall not be less than twenty days after notice to the
owner or possessor of the property as above specified and the
publication or posting of the notice. One place for the posting of the
notice shall be at the office of the chief executive of the local
government in which the property is distrained. AaITCH
(d) Release of distrained property upon payment prior
to sale. — If at any time prior to the consummation of the sale all
proper charges are paid to the officer conducting the sale, the goods
or effects distrained shall be restored to the owner.
(e) Procedure of sale.— At the time and place fixed
in the notice the officer shall sell the goods or effects so distrained
at public auction to the highest bidder for cash. Within five days
after the sale, the treasurer shall make report of the proceedings in
writing to the chief executive of the local government concerned.
Should the property distrained be not disposed of within one hundred
and twenty days from the date of distraint, the same shall be
considered as sold to the local government for the amount of the
assessment made thereon by the Committee on Appraisal and to the extent
of the same amount, the tax delinquencies shall be cancelled.
Said Committee on Appraisal for which the Secretary of Finance shall
promulgate rules of procedure, is hereby created and shall be composed
of the provincial treasurer as chairman with the provincial auditor and
provincial engineer as members, in the case of provinces and
municipalities, and city treasurer as chairman with the city auditor
and the city engineer as members in the case of cities.
(f) Disposition of proceeds. — The proceeds of the
sale shall be applied to satisfy the tax, together with the increments
thereto incident to delinquency, and the expenses of the distraint and
sale. Any residue over and above what is required to pay the entire
claim shall be returned to the owner of the property sold. The expenses
chargeable upon the seizure and sale shall embrace only the actual
expense of seizure and preservation of the property pending the sale,
and no charge shall be imposed for the services of the local officer or
his deputy. Where the proceeds of the sale are insufficient to satisfy
the claim, other property may, in like manner, be distrained until the
full amount due, including all expenses, is collected. SEIDAC
CHAPTER IV
Final Provision
Section 64. Transitory provisions. — In cases where
the existing rates of a tax, fee or other charge fixed by local
ordinance of any city, municipality or barrio are in excess of the
maximum rates provided for in this Code, or where the existing tax,
fee, or other charge is no longer within the authority of the local
government to impose or collect in accordance with the provisions of
this Code, the local board or council concerned shall, within such time
as the Secretary of Finance may determine, taking into account the
financial stability of the local government concerned, but not
exceeding one year, adjust such existing rates or rescind such tax, fee
or other charge, as the case may be, thru an amendatory or other
necessary ordinance to conform to the provisions of this Code;
otherwise, such rates or such tax, fee or other charge shall be deemed
automatically adjusted or rescinded by operation of law.
In the foregoing cases, as well as in cases where an existing ordinance
imposes a tax, fee, or other charge not specifically mentioned in this
Code or where an ordinance provides for an administrative or regulatory
measure which is discriminatory in nature on the conduct of business or
calling or affects the free flow of commerce as contemplated in Section
51 of this Code, the local board or council concerned shall submit a
copy of the ordinance embodying the tax, fee, charge, or administrative
or regulatory measure to the Secretary of Finance for review and other
disposition in accordance with Section 44 of this Code within six (6)
months from the date of effectivity of this Code. AaITCH
Any or all such taxes, fees, charges, or administrative or regulatory
measures embodied in ordinances not submitted to the Secretary of
Finance for review as herein required shall be deemed ipso facto
nullified after six months from the date of effectivity of this Code.
Section 65. Administrative authority of the Secretary
of Finance. — The Secretary of Finance shall determine, at least once
every two years from the date of effectivity hereof, the necessity of
revising any of the maximum rates of the taxes, fees and/or other
charges fixed in this Code and make appropriate recommendations thereon
to the proper authority in order that said maximum rates may be
maintained in conformity with the economic condition generally
prevailing in the country.
He shall also promulgate, from time to time, such rules and regulations
as may be necessary in the effective implementation of the provisions
of this Code.
Section 66. Separability clause. — If, for any
reason, any section or provision of this Code shall be held to be
unconstitutional or invalid, no other section or provision hereof shall
be affected thereby. aESI
Section 67. Repealing clause. — All laws, acts,
decrees, executive orders, proclamations and/or administrative
regulations, or part or parts thereof which are inconsistent herewith
are hereby repealed and/or modified accordingly.
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