PRESIDENTIAL DECREE NO. 231, June 28, 1973
ENACTING A LOCAL TAX CODE FOR PROVINCES, CITIES, MUNICIPALITIES AND BARRIOS.
WHEREAS, the Constitution uner 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”;
WHEREAS, the Constitution under Section 2, Article XI, also
enjoins the allocation among the different local government units of their
powers and resources;
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;
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 die Government and the taxpayer;
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 generate adequate
resources for the local government units without overburdening 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;
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 adopt, promulgate and decree, as
it is hereby adopted, promulgated and decreed as part of the law of the land the
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
ninety,, hundred and seventy-three.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President: (Sgd.) ROBERTO V. REYES Assistant Executive Secretary
The following is the text of The Local Tax Code attached to Presidential
Decree No. 231
THE LOCAL TAX CODE
Table of Contents
Chapter I
General Provisions
1. Scope
2. Fundamental principles
3. Definitions
4. Local
authority
5. Common limitations on the taxing powers of local governments
Chapter II
Specific Provisions on the
Taxing and Other
Revenue-Raising
Powers of Local Governments
Article 1. Provinces
6. Scope of power
7. Tax on transfer of real property ownership
8. Tax
on business of printing and publication
9. Franchise tax
10. Sand and
gravel fee
11. Taxes transferred
12. Occupation tax
13. Amusement tax
on admission
14. Fees for sealing and licensing of weights and
measures
15. Tax on peddlers
16. Rental fee for use of municipal waters,
rivers, etc. as log pond
17. Specific limitations on power
Article 2. Municipalities
18. Scope of power
19. Tax on business
20. Fees and charges
21.
Fishery rentals or fees
22. Specific limitations on power
Article 3. Cities
23. Scope of power
24. Additional taxing powers
25. Specific limitation
on power
Article 4. Barrios
26. Scope of power
27. License taxes and fees
28. Service
charges
29. Contributions
Article 5. Common Revenue-Raising Powers
30. Market fees
31. Slaughterhouse fees
32. Public utility
charges
33. Tuition fees
34. Tolls for roads, bridges, canals and
ferries
35. Charges for holding benefits
36. Permit fee
37. Service
charges
Article 6. Residence Tax
38. The imposition, rates and sharing of the proceeds of the residence
tax
Chapter III
General Administrative Provisions
Article 1. Ordinances
39. Ordinance
40. Numbering of ordinances
41. Approval of tax
ordinances by local chief executive; veto power
42. Effectivity of tax
ordinance
43. Publication of tax ordinance
44. Review and suspension of
tax ordinance
45. Formal protest against a tax ordinance
46. Ordinances
considered revoked
47. Question on the legality of a tax ordinance
48.
Attempt to enforce void or suspended tax ordinance
49. Similar tax or fee not
specifically enumerated
50. Tax or fee not provided for
51. Administrative
or regulatory measures
52. Penal provisions of tax ordinance
Article 2. Collection of Taxes
53. Fixing of the tax and manner of payment
54. Accrual of the tax
55.
Time for the payment
56. Surcharges and interests on unpaid tax, fee, or
charge
57. Interest on other unpaid revenues
58. Collection of local
revenue by treasurer
59. Examination of books of accounts and pertinent
records of businessmen by provincial or city treasurer
Article 3. Civil Remedies for Collection
of Revenues
60. Application of Article
61. Local government’s lien
62. Civil
remedies
63. Distraint of personal property
Chapter IV
Final Provisions
64. Transitory provisions
65. Administrative authority of the Secretary of
Finance
66. Separability clause
67. Repealing clause
THE LOCAL TAX CODE
CHAPTER 1.
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.
SEC. 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:
(a) Taxation shall be uniform in each local political subdivision;
(b)
Taxes and other impositions shall be based as much as possible on the taxpayers1
ability to pay;
(c) Taxes shall be levied and collected only for public
purposes;
(d) Taxes and other impositions must not be unjust, excessive,
oppressive or confiscatory;
(e) Taxes and other impositions must not be
contrary to law, public policy and national economic policy, nor in restraint of
trade;
(f) In no case shall the collection of local taxes and other
impositions be let to any person;
(g)The monies collected under this Code
shall ensure 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.
SEC. 3. Definitions. — When used in this
Code —
- Agricultural product is confined to the yield of the soil such as
corn, rice, wheat, rye, hay, etc., and includes ordinary salt as well as all
kinds of fish and their by-products, poultry, livestock and animal products,
whether in their original form or not. The character of being agricultural
products is not taken away merely because the produce undergoes processing at
the hand of the producer or owner for the purpose of working his product into a
more convenient and valuable form suited to meet the demand of an expanded
market, or for the purpose of increasing or prolonging the marketability of the
product.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 is freezing, drying, salting,
smoking or stripping. - Amusement is a pleasurable diversion and entertainment. It is
synonymous to recreation, relaxation, avocation, pastime or fun. - 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. - Brewer includes all persons who manufacture fermented liquors of
any description for sale or delivery to others, but does not include
manufacturers of tuba, basi, tapuy, or similar domestic fermented liquors, whose
daily production do not exceed two hundred gauge liters. - Business means commercial activity customarily engaged in as a
means of livelihood and typically involving some independence of judgment and
power of decision. - 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 stewardesses, etc. - 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. - 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. - Charges refers to pecuniary liability, as rents or fees against
property, persons or organizations. - Confiscatory is that which amounts to undue seizure or forfeiture
of private property in favor of the public treasury. - 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. - Dealer means one whose business it is to buy and sell merchandise,
goods, and chattels, bb 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. - Excessive means that which is characterized by whatever is notably
greater than what is moderate, reasonable, proper, usual, necessary and just. - Fee means a charge fixed by law or agency for the services of a
public officer. - 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. - Hotel includes any house or building or portion thereof in-which
any person or persons may be regularly harbored or 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 or
customers therein. - Levy means an imposition or collection of an assessment, tax,
tribute or fine. - License 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. - Local government includes provinces, cities, municipalities and
barrios. - 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. - 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 thai the finished
product of such process or manufacture can he 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. - 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. - 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. - 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, and 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. - 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 - 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
hoard or council.
(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 each law, juridical persons are residents of the province, city or
municipality where their legal representation is established or where they
exercise their principal functions.
(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 business performed or discharged by a government official, or by a
private person, as the case may be.
(1-1) Stall refers to any
alloted 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.
(o-l) Vessel includes any sort of boat, craft, or other
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 trade based on the quantity, weight or
measure received and/or discharged by such vessel.
(q-1) Wholesale
means a sale where the purchaser buys the commodities for resale, regardless of
the quantity of the transaction.
SEC. 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.
SEC. 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:
(a) Documentary stamp tax;
(b) Taxes on forest products and forest
concessions;
(c) Taxes on estates, inheritance, gifts, legacies and other
acquisitions mortis causa, except as otherwise provided in this Code;
(d)
Taxes on income of any kind whatsoever;
(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;
(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;
(g) Taxes
of any kind on banks and insurance companies;
(h) Taxes on premiums paid by
owners of property who obtain insurance directly with foreign insurance
companies;
(i) Export taxes, fees, or other levies on Philippine finished,
manufactured or processed products and products of Philippine cottage
industries;
(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;
(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 I. Provinces
SEC 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.
SEC 7. Tax on transfer of real 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 percent 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.
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
works which may be carried on in a building or on a piece of land and which
tends 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.
SEC. 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:
- any newspaper, magazine, review, or bulletin appearing at regular intervals,
with fixed prices for subscription and sale and published ill the province; - books, cards, posters, leaflets, handbills, certificates, receipts,
pamphlets, and others of similar nature, at the rate of not exceeding one-half
of one percent 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 references shall not be included in tile gross receipts subject to the tax
herein imposed.
SEC. 9. Franchise to. — Any provision of special
laws to the contrary notwithstanding, province may impose a lax on businesses
enjoying franchise, based on the gross receipts realized within its territorial
jurisdiction, at the rate of not exceeding one-half of one percent 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 percent of the proceeds of the tax shall accrue
to the general fund of the province and forty percent to the general fund of the
municipalities serviced by the business on the basis of the gloss annual receipt
derived therefrom by the franchise holder. In the case of a newly started
business, forty percent of the proceeds of the tax shall be divided equally
among the municipalities serviced by the business.
SEC. 10. Sand and gravel fee. — The province may
levy and collect a fee 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.
SEC. 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.
SEC. 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:
- 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. - 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.
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
Lax 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.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 lie collected by the municipal treasurers and
remitted to the provincial treasurer within ten days following the end of the
month of collection. Seventy percent of the proceeds of the tax shall accrue to
the general fund of the province and thirty percent 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.
SEC. 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 hall, circuses and other
places of amusement at the following rates:
- When the amount paid for admission is one peso or less, twenty percent; and
- When the amount paid for admission exceeds one peso, thirty percent.
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, flower shows, 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 he 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
quarter. 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 percent of
the correct amount of the tax due in addition to the interest and penalties
provided by this Code.
SEC. 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:
- For sealing linear metric measures: Measures not over one, meter — one peso
Measures over one meter — two pesos - For sealing metric measures of capacity: Measures not over ten liters — one
peso Measures over ten liters — two pesos - For sealing metric instruments of weights:
Those with a capacity of not more than thirty kilograms — two pesos
Those with a capacity of more than thirty but not more than three hundred
kilograms — three pesosThose with a capacity of more than three hundred hut nut more than three
thousand kilograms – five pesosThose with a capacity of more than three thousand kilograms – six pesos
- For an apothecary balance or other balance of precision, the fee shall be
doubled. - 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.
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
he sufficiently accurate, the secondary standards shall he distinguished by
label, tag, or seal, and shall he 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.
SEC. 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:
per annum
any other motor vehicles
bicycle, tricycle or other motorized similar vehicles other than those specified
in letter (a) above
carretela or other vehicles drawn by animals
pedicab or other similar vehicles
personIn addition to the above impositions, a peddler of textiles, jewelry, perfume
and other luxury articles shall pay five pesos.
SEC. 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.
Sixty percent of the proceeds of the rentals shall accrue to the province and
forty percent to the municipality, or municipalities in equal shares, where the
log pond is located.
SEC. 17. Specific limitations on power. — Except as
otherwise provided in this Code, the province shall not levy the following:
(a) Business tax;
(b) Fishery rental and license fees;
(c) Tax on
articles subject to specific tax under the provisions of the National Internal
Revenue Code;
(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
SEC. 18. Scops 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.
SEC. 19. Tax on business. — The municipality may
impose a tax on businesses as follows:
(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:With gross annual sales for for the preceding
calendar year in the
amount of:
per annumor more but less than For every P50,000.00 or fraction thereof in excess of
P1,000,000.00
In the case of a newly started business, the tax shall be at the rate of not
exceeding one-tenth of one percent of its capital investment but in no case
shall it be less than the minimum of P25.00 fixed above.
The tax on the business of manufacturing, producing or importing agricultural
implements, fertilizers, medicinal grugs, or dairy product shall be one-half of
the rates above-prescribed.
For purposes of collection of this tax, manufacturers and producers
maintaining or operating branch or sales offices elsewhere shall record the
sales in the branch or sales office making the sale and the 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
Bale 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:With gross annual sales for for the preceding
calendar year in the
amount of:
per annumFor every P1,000.00 or fraction thereof in excess of
P50,000.00
In the case of a newly started business, the tax shall be at the rate of not
exceeding one-tenth of one percent of its 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.
(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 shops; vaciador shops;
upholstery shops; vulcanizing shops; stables; garages; parking lots; and public
warehouses and bodegas:With gross annual receipts for for the preceding
calendar year in the
amount of:
per annumFor every P10,000.00 or fraction thereof in excess of
P500,000.00
In the case of a newly started business, the tax shall be at the rate of not
exceeding one-tenth of one percent of its 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:
per annum
liquors(e) Tax on tobacco dealers and peddlers: (f) Tax on amusement devices: (g) On amusement places wherein the customers thereof
actively participate without making bets or wagers, including hut not limited to
the following:
per annum
resorts and other similar
places
cubicle
ten days and P5.00 per day thereafter
shooting galleries, and other similar contrivances — for each contrivance, P
10.00 per day for the first ten days and P2.00 per day thereafter.
Itinerant operators P10.00 per
day
of less than 500
persons
capacity from 500 to
999 persons
capacity of 1,000
persons and above
municipal treasurer the next following business day.An additional tax not exceeding one hundred percent of the rates
hereinabove fixed shall be imposed on theaters and cinematographs which are
air-conditioned.
P0.05 per admission ticket payable to the municipal treasurer the next following
business day
Per day or fraction
thereof – P50.00
Per cockfight – Ordinary – P3.00
Per cockfight
– Derby – P10.00
Holding of international derby cockfight, per day –
P2,000.00
Per cockfight, international derby – P100.00
per annumWith capital of – Less than P50,000.00 P50,000.00 or more but less than P100,000.00 100,000.00 or more but less than 200,000.00 200,000.00 or more
per annumLess than 10 boarders 10 to 19 boarders 20-39 boarders 40 or more boarders Less than 15 lodgers 15 to 24 lodgers 25 or more lodgers (k)
preceding quarter at the following rates:Gross quarterly receipts
per quaterLess than P2,500.00 or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than In the case of a newly started business, the tax shall not be less than the
minimum of P15.00 prescribed above.(l) P (m) On real estate dealers:
Per square meterThe 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)
year, at rates not exceeding the following:
per annumLess than P1,000.00
estate , the shall not be less than the minimum of P20.00 fixed
above.(n) On golf links (o) On fishponds or fish breeding grounds, per hectare or
fraction thereof —(p) Tax on private cemeteries and memorial parks:
per annumLess than 2 hectares P 2 hectares to 5 hectares More than 5 hectares (q) Taxes on billboards, signboards and advertisements:
square meter or fraction thereof:
Single face —
fraction thereof —
professions painted on any building or structure or otherwise separated or
detached therefrom, per square meter or fraction thereof—Advertisements by means of placards, per square meter or fraction
thereof —Advertisements for business or profession by means of elides in
movies payable by owners of moviehouses —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 — 10.00Mass display of signs: Amount of tax per
quarter or fraction thereofFrom 100 to 250 display signs — From 251 to 500 display signs — From 501 to 750 display signs — From 751 to 1000 display signs— 1001 or more display signs — (7) Advertisement by means of vehicles, balloons, kite, etc.: Per day or fraction — Per week or fraction — Per month or fraction —
the place where the profession or business advertised is conducted shall be
exempt from the tax herein provided.
municipality may collect the following fees and charges, among others, at rates
not exceeding those enumerated hereunder:
floats or musical instruments, except civic and military parades and religious
procession, P50.00 per dayRegistration fees on large cattle: Certificate of ownership Certificate of transfer Building permit fee:
Not exceeding
P3,000.00
fraction thereof
Not exceeding P5,000.00
fraction thereof
Less than P500.00
fraction thereof
Not
exceeding P1,000.00
fraction thereof
above.
—For the registration o£ documents and for certified copies of
documents on file in the office of the local civil registrar:Per registration of legitimation Per registration of an adoption Per registration of an annulment of marriage Per registration of a divorce Per registration of a naturalization Per registration of a change of name Per certified copies of any document in the 1.00 register, for
each 100 words
Tile 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.
(m)
(g) Secretary’s fees — For the issuance of copies of official records and documents:
including the certificate and any notation)
or in part, for each page (double this fee if there are two pages in a sheet)
written on the copy or attached thereto
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)
certificate (judicial), with seal
or entry ol which any person is entitled to demand and receive a copy (in
connection with judicial proceedings), for each 100 words.Police clearance fee, per certificate issued:
not hereunder specified(i) Fees for the impounding and/or sale of astray animals, including cost of
feeds:(1) Large cattle, per day (2) All other animals, per day
SEC. 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 water — 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 forest,
timber lands, forest reserves, or fishery reserves, but also marine waters
included between two lines drawn perpendicularly to the general coast 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 water between them, the
third line shall be a line equally distant from the opposite shores of the
respective municipalities.(b) Grant of fishery rights and licensing of fishing vessels. —
Pursuant to the authority of the municipality, the municipal council may:
- Grant the 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;- 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;- Issue licenses for the operation of fishing vessels of three (3) Lons 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
rates not exceeding those fixed hereunder:
(1) (2)
Per hectare
(3) (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.
SEC. 22. Specific limitations on power. — Except as
otherwise provided in this Code, the Municipality shall not levy the
following:
- Taxes, fees, and charges that the province or city is authorized to levy in
this Code; - Taxes on Articles, subject to specific tax under the provisions of the
National Internal Revenue Code; and - Taxes and other impositions enumerated in Section 5, Chapter I of this Code.
Article 3. Cities
SEC 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 percent, except the rates of the taxes and fees provided in
Sections 12, 13 and 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 percent
and on the sales of essential commodities at the rate of not exceeding one
percent. 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:(a) Rice, corn, wheat flour, meat, milk, fish, sugar, salt and other
agricultural, marine and freshwater products:
(b) Laundry soap, medicine and
household remedies:
(c) Locally manufactured ordinary fabrics and canned
foodstuffs:
(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.
SEC. 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 kit in no case shall the rate of the specific tax imposed by the city on
such articles exceed twenty-five percent of the rates provided in the National
Internal Revenue Code.
SEC. 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
SEC. 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.
SEC 27. License taxes and fees. — A barrio may levy
taxes or fees on the following, at rates that shall not exceed twenty-five
percent, in the case of a barrio in a municipality, and ten percent, in the case
of barrio in the city, of a similar tax or fee already imposed by the city or
municipality:
(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.
SEC. 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.
SEC. 29. Contributions. — In addition to the
above-specified taxing and other revenue-raising powers, the barrio council may
solicit monies, material, and other contributions from the following
sources:
(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;(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.
Article 5. Common Revenue-Raising Powers
SEC. 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.(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 collectible where the fee charged is on the
basis of space occupied by the said commodity or merchandise, as provided for 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 fees.
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 viand stalls in the public market to applicants.(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 hack 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 lo sell
tin: same merchandise even it this is done in the same place occupied by the
previous vendor.(i) Prohibition. — The peddling or salt; outside the public market
site or premises of foodstuffs which easily deteriorate, like fish and meat, is
hereby prohibited.(j) Penalties. — Any person occupying nr 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 percent of the rent due. The
lease contract of any person found habitually incurring the foregoing violations
shall be cancelled.
SEC. 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 therefore shall he secured from the health officer
concerned or his duly authorized representative and the corresponding fee
collected at a reasonable rate to be fixed by the focal board or council.(b) Rates of slaughter fees. — Slaughter fees may be fixed per head
of animals or per kilo of the meat thereof. In any case, the slaughter fees that
may be prescribed shall not exceed the following rates:
For public consumption on the basis of head:
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.
(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 largo cattle, the treasurer shall
require for branded cattle the production of the certificate of ownership if the
owner is the applicant, or tile original certificate of ownership and the
certificate of transfer showing title in the name of the person applying for the
permit if he B 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
unhanded 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.
SEC. 32. Public utility charge. — Local governments
shall have the power to collect charges for services rendered in connection with
the operation of public utilities owned, operated and maintained them, a, the
rates to be fixed by the loci board or council concerned. The maximum annual net
profit that may be derived therefrom shall not be in excess of ten percent of
the capital invested in the public utility.
The yearly financial statements covering the utility shall he audited by the
provincial or city auditor concerned and should the amount of the 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.
SEC. 33. Tuition fees. —Local governments may
collect tuition fees in the school, 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
SEC. 34. Tolls for roads, bridges, canal, 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.
In the exercise of the authority
above conferred, 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 maintained as
part thereof, as a toll road, bridge, canal or ferry, and may fix tolls thereof
at reasonable rates.
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 o
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 th 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
percent 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;
(c) 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.
SEC. 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 he 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.
SEC. 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.
SEC. 37. Service charge. — The local government may
collect a charge for any service rendered by it in an amount reasonably
commensurate to such service.
Article 6. Residence Tax
SEC. 38. The imposition, rates and sharing of the
proceeds of the residence to. — The levy, collection and administration of
the residence tax by the National Government through the Bureau of Internal
Revenue a. well as the rates and accrual of the proceeds thereof shall be in
accordance with the provisions of this Article.
(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 properly 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:(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
assessments rolls of the municipality or city where the property is situated,
two pesos;(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 purpose of the additional lax, 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:(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:(1) Diplomatic and consular representatives and officers of foreign
powers;(2) Members of the United States Armed Forces;
(3) Civilian officers and employees of the military, naval or any other
branch of the United States Government who are not Filipino citizens; and(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 h II 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 fail 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 he 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 of any
year, shall not be subject to the tax for such year.
If the taxes arc not paid within the time prescribed above, there shall be
added to the unpaid amount an interest of fourteen percent 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 he 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
officiate 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.
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 arid except also in the case of the payment of the residence lax 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 lax shall accrue to the general funds of provinces,
cities and municipalities except five percent thereof which shall accrue to the
general fund of the National Government to cover the coats 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 percent share
of the National Government in the proceeds of the tax within ten days after the
end of each quarter.
The remaining ninety-five percent collected by municipalities shall be
divided equally between the province and the municipality where Uh: 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
percent 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.(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 deceive the courts, or mislead 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 he punished by a
fine of not exceeding two hundred pesos or imprisonment for a tern, of not more
than six months, or both.(1) 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 fake 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, stall 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.
CHAPTER III.
GENERAL ADMINISTRATIVE PROVISIONS
Article 1. Ordinances
SEC. 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.
SEC. 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.
SEC. 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 he deemed approved.
SEC. 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 dale which shall in no case he earlier
than ten days after its approval.
SEC. 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.
SEC. 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 hoard 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 he, 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 lax ordinance within one hundred and twenty days after receipt of a copy
thereof, if, in his opinion, the tax or fee therein levied or imposed is unjust,
excessive, oppressive, confiscatory, or not among those that ihe particular
local government may impose in the exercise of its power in accordance with I
his 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 effectivily of such ordinance
shall be suspended, either in part or, if necessary, in toto. The local
legislative hotly, 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 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 impose 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 lie considered as having been paid
under protest.
In case the 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 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.
SEC. 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 re-impose 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.
SEC. 46. Ordinances considered revoked. — When the
thirty-day period within which the local government may file Jin 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 o£ 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.
SEC. 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.
SEC. 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.
SEC. 49. Similar tax or fee not specifically
enumerated. —The local hoard 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.
Tax or fee not provided for. — Where the tax base
or tax subject is not similar or comparable to any lax 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, or contrary 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.
SEC. 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.
SEC. 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
SEC. 53. Fixing of the tax and manner of payment. —
Except as otherwise provided in this Code, all shall be fixed by the year,
although the same may be paid in quarterly installments.
SEC. 54. Accrual of the tax. — All local tax
SEC. 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.
SEC. 56. Surcharges and interest 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 percent of the amount of the
tax, fee, or charge due plus an interest upon the unpaid amount at the rate of
fourteen percent 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 lime 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 percent per annum shall be collected on the unpaid amount
from the date it becomes originally due until fully paid.
SEC. 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 dale 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 percent a month from the due date until
it is paid.
SEC. 58. Collection of local revenue by treasurer. – All the
taxes, fees and charge, due to local governments shall be collected by the
provincial city municipal, or barrio treasurer, or their duly authorized
deputies.
SEC. 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 correct
amount of the tax due from the taxpayer concerned. Such examination shall be
made during regular business hours, not oftener than once every quarter 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.
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 arc 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
SEC 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
SEC. 61. Local government’s lien. — Local taxes and
other revenue 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 for the occupation, business, or privilege in
respect to which the charge is imposed and upon all property rights therein.
SEC. 62. Civil Remedies. — The civil remedies
available to enforce payment of delinquent taxes shall be 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.
SEC. 63. Distraint of personal property. — The
remedy by distraint shall proceed as follows:
(a) Seizure. — Upon failure of the person owing 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 effects
distrained, a copy of which signed by himself shall be left cither 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.(c) Publication. — The officer shall forthwith cause a notification
to be exhibited in not leas 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 (lie notice. One place for the posting of the
notice shall he at the office of the chief executive of the local government in
which the properly is distrained.(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
[he 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 properly 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 the 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 he 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.
CHAPTER IV. FINAL PROVISIONS
SEC. 64. Transitory provisions. — In cases where
the existing rates of a lax, 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, hut not exceeding one
year, adjust such existing rates or rescind such tax, fee or other charge, as
the case may he, 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 (6) months from the date of effectivity of this Code.
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.
SEC. 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 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 rate 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 regulation
effective implementation of the provisions of this Code.
SEC. 66. Separability clause. — If, for
any reason to be unconstitutional or invalid, no other section or provision
hereof shall be affected thereby.
SEC. 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.
SOURCES OF DEFINITIONS OF TERMS USED IN THIS CODE
Terms Defined Sources of Definitions (a) Agricultural products — Molina vs. Rafferly, 37 and 38 Phil.; American Rubber Co. vs.
Comm. 39 SCRA 163; Sec. 188(b), NIRC(b) Amusement — Sec. 2, BIR Revenue Regulations No. 5-57, May 30, 1957 (c) Amusement places — Taken from Sec. 260, NIRC with modifications by CLT
1965
1965Gross Receipts —
67 Phil. 500 with an additional definition formulated by the CLT
Constitution
Phil.
In order to facilitate the implementation of this Presidential Decree No.
231, the Department of Finance issued Provincial Circular No. 22-73, dated
September 7, 1973, containing instructions for the information, guidance and
compliance by local officials.