30 January 2012

Hon. LEONORA C. WONG
Municipal Mayor
San Simon, Pampanga

Dear Mayor Wong,

This has reference to your letter seeking our opinion regarding the merit of your deeds in collecting fees from Haulers and Truckers which are actually doing business in the jurisdiction of your Municipality and not merely passing through your roads/streets.  Said suspension was brought about by the ruling of Regional Trial Court Branch 54, Macabebe, Pampanga, by declaring some portions of the Revenue Code of your municipality as invalid, in Civil Case No. 10-157 (M), particularly Sections 3U.01 and 3U02 of the 2008 Revised Revenue Code of San Simon, Pampanga.

Basic and elementary is the rule that the Judicial Branch has the sole authority to interpret laws, ordinances and resolutions and to rule whether the same is Constitutional or not.  Administrative agencies are ought to respect the decisions of the courts.  However, said Decision may still be questioned by filing a Motion for Reconsideration and/or Appeal within the reglementary period provided by the Rules of Court.  Since the Regional Trial Court already rendered a Decision unto the said issue, this level can no longer render an opinion as to the validity of the said Ordinance.  Moreso, if a Motion for Reconsideration has been filed, this level cannot render an opinion to that matter as it would be violative of the sub judice principle.

Be that as it may, you are not left without recourse.  The Local Government Code expressly provides guidance as to what taxes, fees and/or charges may be levied by the municipality, as follows:

1. Taxes, fees, and charges not otherwise levied by provinces (Sec. 142, LGC);
2. Fees and charges on business and occupation and practice of profession or calling (Sec. 147, ibid.);
3. Fees for sealing and licensing of weights and measures. (Sec. 148, Ibid.); and
4. Fishery rentals, fees and charges. (Sec. 149, Ibid.)

The municipality may also impose taxes on the following businesses as laid under Sec. 143 of the same Code:

1. On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders or liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature, in accordance with the prescribed schedule;
2. On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the prescribes schedule; xxx
3. On any business, not otherwise specified in the preceding paragraphs, which the sanggunian concerned may deem proper to tax;  on any business subject to the Internal Revenue Code, as amended, the rate shall not exceed 2% of gross sales or receipts of the preceding calendar year.

However, Sec. 150 of the same Code, which deals with the “situs of the tax”, must be observed.

Foregoing considered, your local sanggunian may still levy taxes, fees and charges which are expressly allowed by the Code.
   
Allow us to emphasize that we defer to render an opinion concerning your deed in imposing tax because the Regional Trial Court has rendered a Decision on that matter.  Let us also be clear in stating that this recommendation has nothing to do with the on-going case filed before the regular court.

Please be informed that this level requested the Legal Service of the Central Office for their comments and recommendations.  
 
We hope that we have properly addressed your concerns.

Very truly yours,


(sgd.)
FLORIDA M. DIJAN, DPA, CESO IV
Regional Director

Copy Furnished:

ATTY. JESUS B. DOQUE, IV                    PD ANGELINA S. BLANCO   
Director-Legal Service (DILG Central)        Provincial Director-DILG Pampanga


       


    

 


 
 

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