ENACTING A LOCAL TAX CODE FOR PROVINCES, CITIES, MUNICIPALITIES AND BARRIOS.

• Number: Presidential Decree No. 231
• Sections: 71

Preamble

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

General Provisions

1. Scope

2. Fundamental principles

3. Definitions

4. Local

authority

5. Common limitations on the taxing powers of local governments

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

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

Final Provisions

64. Transitory provisions

65. Administrative authority of the Secretary of

Finance

66. Separability clause

67. Repealing clause

THE LOCAL TAX CODE

GENERAL PROVISIONS

SPECIFIC PROVISIONS ON THE TAXING AND

OTHER REVENUE-RAISING

POWERS OF LOCAL GOVERNMENTS

GENERAL ADMINISTRATIVE PROVISIONS

Article 1. Ordinances

Section 1 Scope.

SECTION 1. Scope. — This Code shall govern the

exercise by provinces, cities, municipalities and barrios of their taxing and

other revenue-raising powers.

Section 2 Fundamental principles.

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.

Section 3 Definitions.

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.

Section 4 Local authority.

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.

Section 5 Common limitations on the taxing powers of local governments.

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.

Section 6 Scope of power.

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.

Section 7 Tax on transfer of real property ownership.

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.

Section 8 Tax on business of printing and publication.

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.

Section 9 Franchise to.

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.

Section 10 Sand and gravel fee.

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.

Section 11 Taxes transferred.

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.

Section 12 Occupation tax.

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.

Section 13 Amusement tax on admission.

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.

Section 14 Fees for sealing and licensing of weights and measures.

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 pesos

Those with a capacity of more than three hundred hut nut more than three

thousand kilograms - five pesos

Those 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.

Section 15 Tax on peddlers.

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:

Amount of tax

per annum

(a)

Peddlers of any article or merchandise carried in trucks or

any other motor vehicles

P30.00

(b)

Peddlers of any article or merchandise carried in a motorized

bicycle, tricycle or other motorized similar vehicles other than those specified

in letter (a) above

15.00

(c)

Peddlers of any article or merchandise carried in cart,

carretela or other vehicles drawn by animals

30.00

(d)

Peddlers of any article or merchandise carried on bicycle,

pedicab or other similar vehicles

5.00

(e)

Peddlers of any other article or merchandise carried by

person

2.00

In addition to the above impositions, a peddler of textiles, jewelry, perfume

and other luxury articles shall pay five pesos.

Section 16 Rental fee for use of municipal waters, rivers, etc. as log pond.

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.

Section 17 Specific limitations on power.

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

Section 18 Scops of powers.

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.

Section 19 Tax on business.

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:

Amount of tax

per annum

Less than

P 1,000.00

10.00

P

1,000.00

or more but less than

P

2,000.00

P

20.00

2,000.00

or more but less than

3,000.00

30.00

3,000.00

or more but less than

4,000.00

45.00

4,000.00

or more but less than

5,000.00

65.00

5,000.00

or more but less than

6,000.00

80.00

6,000.00

or more but less than

7,000.00

100.00

7,000.00

or more but less than

8,000.00

120.00

8,000.00

or more but less than

10,000.00

160.00

10,000.00

or more but less than

15,000.00

240.00

15,000.00

or more but less than

20,000.00

360.00

20,000.00

or more but less than

30,000.00

520.00

30,000.00

or more but less than

40,000.00

750.00

40,000.00

or more but less than

50,000.00

1,000.00

50,000.00

or more but less than

75,000.00

1,500.00

75,000.00

or more but less than

100,000.00

2,200.00

100,000.00

or more but less than

150,000.00

3,200.00

150,000.00

or more but less than

300,000.00

3,900.00

300,000.00

or more but less than

500,000.00

7,000.00

500,000.00

or more but less than

750,000.00

11,250.00

750,000.00

to

1,000,000.00

16,000.00

For every P50,000.00 or fraction thereof in excess of

P1,000,000.00

200.00

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:

Amount of tax

per annum

Less than

P 2,000.00

30.00

P

2,000.00

or more but less than

P

3,750.00

P

50.00

3,750.00

or more but less than

4,500.00

70.00

4,500.00

or more but less than

6,125.00

90.00

6,125.00

or more but less than

7,250.00

110.00

7,250.00

or more but less than

8,750.00

130.00

8,750.00

or more but less than

10,275.00

150.00

10,275.00

or more but less than

12,125.00

180.00

12,125.00

or more but less than

15,250.00

220.00

15,250.00

or more but less than

16,750.00

250.00

16,750.00

or more but less than

18,250.00

270.00

18,250.00

or more but less than

20,625.00

290.00

20,625.00

or more but less than

23,375.00

350.00

23,375.00

or more but less than

27,000.00

400.00

27,000.00

or more but less than

30,000.00

450.00

30,000.00

or more but less than

33,000.00

500.00

33,000.00

or more but less than

35,875.00

550.00

35,875.00

or more but less than

40,625.00

610.00

40,625.00

or more but less than

45,500.00

660.00

45,500.00

to

50,000.00

750.00

For every P1,000.00 or fraction thereof in excess of

P50,000.00

5.00

In the case of 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:

Amount of tax

per annum

Less than

P 5,000.00

P

25.00

P

5,000.00

or more but less than

P

10,000.00

56.00

10,000.00

or more but less than

15,000.00

125.00

15,000.00

or more but less than

20,000.00

218.00

20,000.00

or more but less than

30,000.00

375.00

30,000.00

or more but less than

40,000.00

612.00

40,000.00

or more but less than

50,000.00

900.00

50,000.00

or more but less than

75,000.00

1,406.00

75,000.00

or more but less than

100,000.00

2,187.00

100,000.00

or more but less than

150,000.00

3,437.00

150,000.00

or more but less than

200,000.00

5,250.00

200,000.00

or more but less than

250,000.00

7,312.00

250,000.00

or more but less than

300,000.00

9,625.00

300,000.00

or more but less than

400,000.00

13,125.00

400,000.00

500,000.00

18,000.00

For every P10,000.00 or fraction thereof in excess of

P500,000.00

100.00

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:

Amount of tax

per annum

(1)

Wholesale dealers in foreign liquors

P

800.00

(2)

Wholesale dealers in domestic liquors

400.00

(3)

Retail dealers in foreign liquors

200.00

(4)

Retail dealers in domestic liquors

100.00

(5)

Brewers

2,000.00

(6)

Distillers of spirits

1,500.00

(7)

Rectifiers of distilled spirits

1,500.00

(8)

Repackers of wines and distilled spirits

1,500.00

(9)

Retail dealers in vino liquors

50.00

(10)

Retail dealers in fermented liquors

80.00

(11)

Wholesale dealers in fermented liquors

200.00

(12)

Retail peddlers of distilled, manufactured or fermented liquors

160.00

(13)

Wholesale peddlers of distilled, manufactured or fermented

liquors

200.00

(14)

Retail dealers in tuba, basi and/or tapuy

50.00

(e) Tax on tobacco dealers and peddlers:

(1)

Retail leaf tobacco dealers

50.00

(2)

Wholesale leaf tobacco dealers

200.00

(3)

Retail tobacco dealers

50.00

(4)

Wholesale tobacco dealers

200.00

(5)

Retail peddlers of manufactured tobacco

50.00

(6)

Wholesale peddlers of manufactured tobacco

200.00

(f) Tax on amusement devices:

(1)

Each jukebox machine

100.00

(2)

Each machine or apparatus for visual entertainment

50.00

(3)

Each apparatus for weighing persons

30.00

(g) On amusement places wherein the customers thereof

actively participate without making bets or wagers, including hut not limited to

the following:

Amount of Tax

per annum

(1)

Night and day clubs

P

6,000.00

(2)

Night clubs or day clubs

4,000.00

(3)

Cocktail lounges or bars

1,600.00

(4)

Cabarets or dance halls

1,000.00

(5)

Skating rinks

500.00

(6)

Bath houses, swimming pools,

resorts and other similar

places

300.00

(7)

Steam baths, saunas and other similar establishments, per

cubicle

100.00

(8)

Billiard and pool halls:

For the first table

50.00

For each additional table

20.00

(9)

Bowling alleys:

Automatic, per lane

100.00

Non-automatic, per lane

80.00

(10)

Circuses, carnivals, and the like - P40.00 per day for the first

ten days and P5.00 per day thereafter

(11)

Merry-go-rounds, roller-coasters, ferries wheels, swings,

shooting galleries, and other similar contrivances — for each contrivance, P

10.00 per day for the first ten days and P2.00 per day thereafter.

(12)

Theaters and cinematographs:

Itinerant operators P10.00 per

day

With orchestra only with seating capacity

of less than 500

persons

500.00

With balcony and orchestra with seating

capacity from 500 to

999 persons

800.00

With balcony and orchestra with seating

capacity of 1,000

persons and above

1,000.00

With loge, balcony and orchestra

1,500.00

Plus: Amusement tax of P0.05 per admission payable to the

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.

(13)

Boxing stadium

300.00

(14)

Boxing contests, P100.00 each night plus an amusement tax of

P0.05 per admission ticket payable to the municipal treasurer the next following

business day

(15)

Race track for conducting horse races

Per day or fraction

thereof - P50.00

2,000.00

(16)

Cockpits:

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

3,000.00

(h) On pawnshops:

Amount of tax

per annum

With capital of -

Less than P50,000.00

P

1,000.00

P50,000.00 or more but less than P100,000.00

1,500.00

100,000.00 or more but less than 200,000.00

2,000.00

200,000.00 or more

4,000.00

(i) On boarding houses with accommodations for —

Amount of tax

per annum

Less than 10 boarders

P20.00

10 to 19 boarders

30.00

20-39 boarders

40.00

40 or more boarders

50.00

(j) Tax on lodging houses with accommodations for —

Less than 15 lodgers

600.00

15 to 24 lodgers

900.00

25 or more lodgers

1,200.00

(k)

Tax on hotels and motels baaed on gross receipts for the

preceding quarter at the following rates:

Gross quarterly receipts

Amount of Tax

per quater

Less than P2,500.00

P

15.00

P

2,500.00

or more but less than

P

5,000.00

23.00

5,000.00

or more but less than

7,500.00

32.00

7,500.00

or more but less than

10,000.00

40.00

10,000.00

or more but less than

12,500.00

48.00

12,500.00

or more but less than

15,000.00

56.00

15,000.00

or more but less than

17,500.00

64.00

17,500.00

or more but less than

20,000.00

72.00

20,000.00

or more but less than

22,500.00

80.00

22,500.00

or more but less than

25,000.00

88.00

25,000.00

or more but less than

30,000.00

107.00

30,000.00

or more but less than

35,000.00

126.00

35,000.00

or more but less than

40,000.00

145.00

40,000.00

or more but less than

45,000.00

164.00

45,000.00

or more but less than

50,000.00

183.00

50,000.00

or more but less than

55,000.00

202.00

55,000.00

or more but less than

60,000.00

221.00

60,000.00

or more but less than

65,000.00

240.00

65,000.00

or more but less than

70,000.00

259.00

70,000.00

or more but less than

75,000.00

278.00

75,000.00

or more but less than

82,500.00

296.00

82,500.00

or more but less than

90,000.00

314.00

90,000.00

or more but less than

97,500.00

332.00

97,500.00

or more but less than

105,000.00

350.00

105,000.00

or more but less than

112,500.00

368.00

112,500.00

or more but less than

120,000.00

386.00

120,000.00

or more but less than

127,500.00

404.00

127,500.00

or more but less than

135,000.00

422.00

135,000.00

or more but less than

142,000.00

440.00

142,500.00

or more but less than

150,000.00

458.00

150,000.00

or more but less than

160,000.00

478.00

160,000.00

or more but less than

170,000.00

498.00

170,000.00

or more but less than

180,000.00

518.00

180,000.00

or more but less than

190,000.00

538.00

190,000.00

or more but less than

200,000.00

558.00

200,000.00

or more but less than

210,000.00

578.00

210,000.00

or more but less than

220,000.00

598.00

220,000.00

or more but less than

230,000.00

618.00

230,000.00

or more but less than

240,000.00

638.00

240,000.00

or more but less than

250,000.00

658.00

250,000.00

or more but less than

275,000.00

700.00

275,000.00

or more but less than

300,000.00

742.00

300,000.00

or more but less than

325,000.00

783.00

325,000.00

or more but less than

350,000.00

827.00

350,000.00

or more but less than

375,000.00

889.00

375,000.00

or more but less than

400,000.00

991.00

400,000.00

or more but less than

425,000.00

953.00

425,000.00

or more but less than

450,000.00

995.00

450,000.00

or more but less than

475,000.00

1,037.00

475,000.00 to

500,000.00

1,079.00

For every P1,000.00 or fraction thereof in excess of

P

500,000.00

1.00

In the case of a newly started business, the tax shall not be less than the

minimum of P15.00 prescribed above.

(l)

On private detective or security agency

P

50.00 per annum

(m)

On real estate dealers:

(1)

Subdivision operators:

Per square meter

P

0.01 per annum

The computation of the tax on subdivision operators

shall be based only on the total area of the remaining lots titled in the name

of the subdivision operator.

(2)

Lessors of real estate based on gross receipts for the preceding

year, at rates not exceeding the following:

Amount of Tax

per annum

Less than P1,000.00

P

Exempt

P 1,000.00 or more but less than

P 4,000.00

20.00

4,000.00 or more but less than

10,000.00

50.00

10,000.00 or more but less than

20,000.00

150.00

20,000.00 or more but less than

30,000.00

300.00

30,000.00 or more but less than

50,000.00

500.00

For every P1,000.00 in excess of

50,000.00

5.00

In the case of a newly started business of lessors of rewal

estate , the shall not be less than the minimum of P20.00 fixed

above.

(n)

On golf links

P1,000.00 per annum

(o)

On fishponds or fish breeding grounds, per hectare or

fraction thereof —

50.00 per annum

(p)

Tax on private cemeteries and memorial parks:

Amount of Tax

per annum

(1)

Less than 2 hectares P

P 500.00

(2)

2 hectares to 5 hectares

750.00

(3)

More than 5 hectares

1,000.00

(q) Taxes on billboards, signboards and advertisements:

(1)

Billboards or Signboards for advertisement of business, per

square meter or fraction thereof:

Single face —

10.00

Double face —

20.00

(2)

Billboards or signs for professionals, per square meter or

fraction thereof —

8.00

(3)

Billboards, signs or advertisement for business and

professions painted on any building or structure or otherwise separated or

detached therefrom, per square meter or fraction thereof—

9.00

(4)

Advertisements by means of placards, per square meter or fraction

thereof —

9.00

(5)

Advertisements for business or profession by means of elides in

movies payable by owners of moviehouses —

100.00

In addition to the taxes provided above under items (1) to (5),

inclusive, for the use of electric or neon lights in billboards, per square foot

or fraction thereof — 10.00

(6)

Mass display of signs:

Amount of tax per

quarter or fraction thereof

From 100 to 250 display signs —

P 300.00

From 251 to 500 display signs —

450.00

From 501 to 750 display signs —

550.00

From 751 to 1000 display signs—

700.00

1001 or more display signs —

1,500.00

(7)

Advertisement by means of vehicles, balloons, kite, etc.:

Per day or fraction —

P 40.00

Per week or fraction —

60.00

Per month or fraction —

80.00

Signs, signboards, billboards and advertisements displayed at

the place where the profession or business advertised is conducted shall be

exempt from the tax herein provided.

Section 20 Fees and charges.

SEC. 20. Fees and charges. — The

municipality may collect the following fees and charges, among others, at rates

not exceeding those enumerated hereunder:

(a)

Cart and sledge registration fee, per annum

12.00

(b)

Circus or menagerie parades, and other parades using banners,

floats or musical instruments, except civic and military parades and religious

procession, P50.00 per day

(c)

Registration fees on large cattle:

(1)

Certificate of ownership

1.00

(2)

Certificate of transfer

2.00

(d)

Building permit fee:

(1)

Construction of residential buildings costing:

Not exceeding

P3,000.00

10.00

For each succeeding P1,000.00 or

fraction thereof

2.00

(2)

Construction of commercial or industrial buildings costing:

Not exceeding P5,000.00

25.00

For each succeeding P1,000.00 or

fraction thereof

4.00

(3)

Residential building repairs costing:

Less than P500.00

Exempt

P 500.00 but not exceeding P1,000.00

2.00

For each succeeding P500.00 or

fraction thereof

1.00

(4)

Commercial or industrial building repairs costing:

Not

exceeding P1,000.00

5.00

For each succeeding P1,000.00 or

fraction thereof

2.00

(5)

Construction and repairs of other structures:

Same rates as those fixed under items (1), (2), (3) or (4)

above.

(e) Marriage fees:

(1)

Application fee

10.00

(2)

License fee

2.00

(3)

Solemnization fee

5.00

(f) Registration fees on the civil status of persons

—

For the registration o£ documents and for certified copies of

documents on file in the office of the local civil registrar:

(1)

Per registration of legitimation

5.00

(2)

Per registration of an adoption

5.00

(3)

Per registration of an annulment of marriage

15.00

(4)

Per registration of a divorce

15.00

(5)

Per registration of a naturalization

30.00

(6)

Per registration of a change of name

5.00

(7)

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:

(1)

For every 100 words or fraction thereof, typewritten (not

including the certificate and any notation)

1.00

(2)

Where the copy to be furnished is in a printed form, in whole

or in part, for each page (double this fee if there are two pages in a sheet)

2.00

(3)

For each certificate of correctness (with seal of office)

written on the copy or attached thereto

2.00

(4)

For copies furnished other bureaus, offices and branches of

the government for official business (except those copies required by the court

at the request of litigants, in which case charges should be made in accordance

with the above schedule)

Free

(5)

For certifying the official act of a municipal judge or other

certificate (judicial), with seal

2.00

(6)

For certified copies of any paper, record, decree, judgment

or entry ol which any person is entitled to demand and receive a copy (in

connection with judicial proceedings), for each 100 words.

1.00

(7)

Xerox or any other copy produced by copying machine, per page

2.00

(8)

Photo copy, per page

5.00

(h)

Police clearance fee, per certificate issued:

(1)

For employment, scholarships, study grants and other purpose

not hereunder specified

2.00

(2)

For firearms permit application

20.00

(3)

For change of name

20.00

(4)

For passport or visa application

30.00

(5)

For application for Filipino citizenship

100.00

(i)

Fees for the impounding and/or sale of astray animals, including cost of

feeds:

(1)

Large cattle, per day

10.00

(2)

All other animals, per day

5.00

(J)

Burial Permit fee

1.00

(k)

Fee for exhumation of cadaver

1.00

(l)

Fee for removal of cadaver

3.00

(m)

Dog license fee, per annum

2.00

(n)

Bicycle permit fee, per annum

5.00

Section 21 Fishery rentals or fees.

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)

Fish corrals:

Annual Fee

Less than 3 meters

30.00

3 meters or more but less than 5 meters

60.00

5 meters or more but less than 8 meters

200.00

8 meters or more but less than 10 meters

360.00

10 meters or more but less than 15 meters

500.00

15 meters or more

800.00

(2)

Operation of fishponds or oyster culture beds:

Per hectare

10.00

(3)

catching bangus fry or kawag-kawag:

Less than 1,000 square meters

500.00

1,000 sq. m. or more but less than 2,000 sq. m.

800.00

2,000 sq. m. or more but less than 4,000 sq. m.

1,500.00

4,000 sq. m. or more but less than 6,000 sq. m.

2,200.00

6,000 sq. m. or more but less than 8,000 sq. m.

3,000.00

8,000 square meters or over

4,000.00

(d) Privilege of residents to take fish in municipal waters. — Any

person who is not a grantee of a license or privilege to engage in commercial

fishing shall be allowed to fish for domestic use, in any municipal waters, in

case no communal fishery therein has been established: Provided, however, That

in no case shall fishing be allowed within two hundred meters from a fish corral

licensed by the city or municipality: And provided, further, That no

fish caught under this privilege shall be sold.

Section 22 Specific limitations on power.

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

Section 23 Scope of power.

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.

Section 24 Additional taxing powers.

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.

Section 25 Specific limitation on power.

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

Section 26 Scope of power.

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.

Section 27 License taxes and fees.

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.

Section 28 Service charges.

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.

Section 29 Contributions.

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

Section 30 Market fees.

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.

Section 31 Slaughterhouse fees.

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:

Large cattle, per head

P5.00

Hogs, per head

3.00

Goats, per head

2.00

Sheep, per head

2.00

Others, per head

2.00

For public consumption on the basis of kilo:

Large cattle, per kilo of dressed meat

P0.65

Hogs, per kilo of dressed meat

0.03

Goats, per kilo of dressed meat

0.02

Sheep, per kilo of dressed meat

0.02

Others, per kilo of dressed meat

0.02

For home consumption on the basis of head:

Large cattle, per head

P2.50

Hogs, per head

1.50

Goats, per head

1.00

Sheep, per head

1.00

Others, per head

1.00

For home consumption on the basis of kilo:

Large cattle, per kilo

P 0.025

Hogs, per kilo

0.015

Goats, per kilo

0.01

Sheep, per kilo

0.01

Others, per kilo

0.01

If fees are to be charged per kilo, each slaughterhouse shall be provided

with a balance on which all dressed meat, including the liver, heart, tongue,

and other parts utilized for consumption shall be weighed. The weighing shall be

made under the supervision of the city/municipal treasurer or his duly

authorized representative.

(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.

Large cattle, per head

P0.50

Hogs, per head

0.30

Goats, per head

0.20

Sheep, per head

0.20

Others, per head

0.20

Section 32 Public utility charge.

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.

Section 33 Tuition fees.

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

Section 34 Tolls for roads, bridges, canal, and ferries.

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.

Section 35 Charges for holding benefits.

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.

Section 36 Permit fee.

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.

Section 37 Service charge.

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

Section 38 The imposition, rates and sharing of the proceeds of the residence to.

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.

Section 39 Ordinance.

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.

Section 40 Numbering of ordinances.

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.

Section 41 Approval of tax ordinances by local chief executive; veto power.

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.

Section 42 Effectivity of tax ordinance.

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.

Section 43 Publication of tax ordinance.

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.

Section 44 Review and suspension of tax ordinance.

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.

Section 45

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.

Section 46 Ordinances considered revoked.

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.

Section 47 Question on the legality of a tax ordinance.

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.

Section 48 Attempt to enforce void or suspended tax ordinance.

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.

Section 49 Similar tax or fee not specifically enumerated.

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.