PD 231 CHAPTER III.

Ordinance.

Section 39

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.

Numbering of ordinances.

Section 40

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.

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

Section 41

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.

Effectivity of tax ordinance.

Section 42

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.

Publication of tax ordinance.

Section 43

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.

Review and suspension of tax ordinance.

Section 44

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.

Ordinances considered revoked.

Section 46

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.

Question on the legality of a tax ordinance.

Section 47

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.

Attempt to enforce void or suspended tax ordinance.

Section 48

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.

Similar tax or fee not specifically enumerated.

Section 49

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.

Administrative or regulatory measures.

Section 51

SEC. 51. Administrative or regulatory measures. — An ordinance may provide administrative or regulatory measures necessary in the conduct of a business or industry, or the practice of a profession or occupation, or to protect public interest, and the local government may impose a regulatory fee commensurate to the service rendered in the implementation thereof. No board or council, however, may enact any administrative or regulatory measure that will in any manner be discriminatory or in restraint of trade.

Penal provisions of tax ordinance.

Section 52

SEC. 52. Penal provisions of tax ordinance. — Except as otherwise specifically provided in this Code, the local board or council is authorized to prescribe fines or penalties for violations of an ordinance but in no case shall such fines or penalties exceed one thousand pesos, or imprisonment for six months, or both at the discretion of the court. Article 2. Collection of Taxes

Fixing of the tax and manner of payment.

Section 53

SEC. 53. Fixing of the tax and manner of payment. — Except as otherwise provided in this Code, all shall be fixed by the year, although the same may be paid in quarterly installments.

Accrual of the tax.

Section 54

SEC. 54. Accrual of the tax. — All local tax

Time for the payment.

Section 55

SEC. 55. Time for the payment. — Unless otherwise specifically provided in this Code, all taxes due and accruing to the local governments shall be paid within the first twenty days of January or of each subsequent quarter, as the case may be. The local board or council may for a justifiable reason or cause, like floods, fire, typhoons and other natural calamities, extend for an additional period of not exceeding thirty days the time for payment of a license tax without penalty.

Surcharges and interest on unpaid tax, fee, or charge.

Section 56

SEC. 56. Surcharges and interest on unpaid tax, fee, or charge. — Except as otherwise specifically provided in this Code, failure to pay the tax, fee, or charge within the time required shall subject the taxpayer to a surcharge not exceeding twenty-five percent of the amount of the tax, fee, or charge due plus an interest upon the unpaid amount at the rate of fourteen percent per annum from the due date until the tax, fee, or charge is fully paid, except tuition fees which shall not be subject to any surcharge or interest. Where an extension of lime for the payment of the tax has been granted and the amount is not paid in full prior to the expiration of the extension, the interest of fourteen percent per annum shall be collected on the unpaid amount from the date it becomes originally due until fully paid.

Interest on other unpaid revenues.

Section 57

SEC. 57. Interest on other unpaid revenues. — Where the amount of any other revenue due the local government, except voluntary contributions or donations, is not paid on the dale fixed in the ordinance in the contract, expressed or implied, or upon the happening of the event which gave rise to its collection, there shall be collected as part of that amount, an interest thereon at the rate of one-half percent a month from the due date until it is paid.

Collection of local revenue by treasurer.

Section 58

SEC. 58. Collection of local revenue by treasurer. - All the taxes, fees and charge, due to local governments shall be collected by the provincial city municipal, or barrio treasurer, or their duly authorized deputies.

Section 59

SEC. 59. Examination of books of accounts and pertinent, records of businessmen by provincial or city treasurer. —For the purpose of effective enforcement and collection of the taxes fees and charges provided in this Code, the provincial or city treasurer may, by himself or thru any of his deputies duly authorized in writing, examine the books, accounts and other pertinent records of any person, partnership, corporation or association doing business within his jurisdiction to verify, assess and collect the true correct amount of the tax due from the taxpayer concerned. Such examination shall be made during regular business hours, not oftener than once every quarter for each business establishment. Any examination conducted pursuant to the provisions of this Section shall be certified to by the examining official and such certificate shall be made of record in the books of accounts of the taxpayer concerned. In a case where the examination herein authorized is made by a duly authorized deputy of the provincial or city treasurer, the written authority of the former shall specifically state the name, address and business of the taxpayer whose books, accounts and pertinent records arc to be examined, the date and place of such examination, and the procedure to be followed in conducting the same. Article 3. Civil Remedies for Collection of Revenues

Application of Article.

Section 60

SEC 60. Application of Article. — The-provisions of this Article and the remedies provided herein may be used, as far as their nature permits, for the collection of any delinquent local tax or other revenue

Local government's lien.

Section 61

SEC. 61. Local government's lien. — Local taxes and other revenue due a local government constitute a lien in its favor, enforceable by proper legal action, superior to all liens or charges in favor of private parties not only upon any property which may be subject to the charge but also upon property used in the exercise for the occupation, business, or privilege in respect to which the charge is imposed and upon all property rights therein.

Civil Remedies.

Section 62

SEC. 62. Civil Remedies. — The civil remedies available to enforce payment of delinquent taxes shall be distraint of personal property, and by legal action. Either of these remedies or both simultaneously may be pursued at the discretion of the proper authority. The payment of other revenues accruing to local governments shall be enforced by legal action.

Distraint of personal property.

Section 63

SEC. 63. Distraint of personal property. — The remedy by distraint shall proceed as follows: (a) Seizure. — Upon failure of the person owing any local tax to pay the same at the time required the treasurer or his deputy may, upon written notice, seize or confiscate any personal property belonging to that person or any personal property subject to the tax lien, in sufficient quantity to satisfy the tax in question, together with any increment thereto incident to delinquency and the expenses of seizure. In this case, the treasurer or his deputy shall issue a duly authenticated certificate based upon the records of his office showing the fact of delinquency and the amount of the tax and penalty due. This shall serve as sufficient warrant for the distraint of personal property aforementioned, subject to the taxpayer's right to claim exemption under the provisions of Section 31 of Commonwealth Act No. 470 (the Assessment Law), as amended. Distrained personal property shall be sold at public auction in the manner herein provided for. (b) Accounting of distrained goods. — The officer executing the distraint shall make or cause to be made an account of the goods or effects distrained, a copy of which signed by himself shall be left cither with the owner or person from whose possession the goods or effects were taken or at the dwelling or place of business of that person and with someone of suitable age and discretion, to which list shall be added a statement of the sum demanded and a note of the time and place of sale. (c) Publication. — The officer shall forthwith cause a notification to be exhibited in not leas than two public places in the territory of the local government where the distraint is made, specifying the time and place of sale and the articles distrained. The time of sale shall not be less than twenty days after notice to the owner or possessor of the property as above specified and the publication or posting of (lie notice. One place for the posting of the notice shall he at the office of the chief executive of the local government in which the properly is distrained. (d) Release of distrained property upon payment prior to sale. — If at any time prior to the consummation of the sale all proper charges are paid to the officer conducting the sale, the goods or effects distrained shall be restored to the owner. (e) Procedure of sale. — At the time and place fixed in the notice the officer shall sell the goods or effects so distrained at public auction to [he highest bidder for cash. Within five days after the sale, the treasurer shall make report of the proceedings in writing to the chief executive of the local government concerned. Should the properly distrained be not disposed of within one hundred and twenty days from the date of distraint, the same shall be considered as sold to the local government for the amount of the assessment made thereon by the Committee on Appraisal and to the extent of the same amount, the tax delinquencies shall be cancelled. Said Committee on Appraisal for which the Secretary of Finance shall promulgate rules of procedure, is hereby created and shall be composed of the provincial treasurer as chairman with the provincial auditor and provincial engineer as members, in the case of provinces and municipalities, and the city treasurer as chairman with the city auditor and the city engineer as members in the case of cities. (f) Disposition of proceeds. — The proceeds of the sale shall be applied to satisfy the tax, together with the increments thereto incident to delinquency, and the expenses of the distraint and sale. Any residue over and above what is required to pay the entire claim shall be returned to the owner of the property sold. The expenses chargeable upon the seizure and sale shall embrace only the actual expense of seizure and preservation of the property pending the sale, and no charge shall he imposed for the services of the local officer or his deputy. Where the proceeds of the sale are insufficient to satisfy the claim, other property may in like manner, be distrained until the full amount due, including all expenses, is collected.