Instructions on the enforcement of the new Municipal Autonomy Law

Media

Part of The Local Government Review

Title
Instructions on the enforcement of the new Municipal Autonomy Law
Language
English
Year
1949
Subject
Commonwealth Act No. 472
Rights
In Copyright - Educational Use Permitted
Fulltext
Instructions on the Enforcement of THE NEW MUNICIPAL AUTONOMY LAW (Commonwealth Act No. 472) --x-Commonwealth of .. the Philippines powers granted municipal councils and Department of Finance municipal district councils under secPROVINCIAL CIRCULAR ) tion 1 thereof. The said Commonwealth No. 12 ) 'Act having added a new limitation to June 30, 1939 those imposed under the old law:, these SUBJECT: Commonwealth Act No. limitations are now of three kinds~ 4~2 Revising the General Author- 1. The rates of municipal license ity of Municipal Councils and Mu- taxes which may be fixed or imposed by 'nicipal District Councils to Levy ordinance of the municipal council or and Collect Taxes, Charges, and municipal district council shall not exFees, Subject to Certain Limita; ceed the rates of tixed internal-revenue tions-Instructions on Enforce- privilege taxes regularly imposed by ment of-Necessary Ordinances- ·~he National Government upon the same I. General Scope of Authority businesses or occupations, except on Commonwealth Act No. 472, which hotels, restaurants, cafes, refreshment went into effect on June 16, 1939, has parlors, race tracks, and retail dealers revised the general authority conferred in vino, liquors and fermented liquors, Ly Act No. 3422, as amended, upon and any tax or fee on livery .stables, municipal councils and municipal dis- garages, and other plac.es or establish· trict councils to levy and collect taxes, ments where public vehicles and other charges, and fees. conveyances are kept for hire; Under section 1 of the said Common· 2. The rates of municipal license wealth Act, a municipal council or mu- taxes which the municipal council or nicipal district council is authorized municipal district council may impose 1. To impose municipal license taxes on businesses not covered in the preupon persons engaged in any occupa- ceding subparagraph, and subject to the tion or business or exercising privileges fixed annual tax imposed in section 182 in the municipality or municipal dis' of the National Internal Revenue Code, trict; shall not exceed P50 per annum; and 2. To collect fees and charges for 3. Any existing municipal license tax services rendered by the municipality on any business, occupation, or privilege or municipal district; and the rate of which is not limited above 3. To levy for public local purposes (1 and 2) may not be increased by the just and uniform taxes. municipal council or municipal district II. Prohibitions council by more than fifty per cent at In the exercise of the above power.s, a time. the municipal council or municipal dis- The above limitations may, however, trict council shall observe three dis- be exceeded with the approval of the tinct prohibitions. It cannot authorize Secretary of Finance in accordance the collection of with section 4 of Commonwealth Act 1. Percentage taxes; No. 472. · 2 . Taxes on specified articles ; nor 3 . Any of the taxes, charges, or fees, enumerated in section 3 of Common· wealth Act No. 472. III. Limitations Section 4 of Commonwealth Act No. 472 · further qualifies and limits the Page 222 IV. Fees and Charges Collectible The fees and charges referred to in paragraph 2 of heading No. I, above, are those collected for services render· ed by the municipality or municipal ·district not required by law to be ren· THE LOCAL GOVERNMENT REVIEW dered without charge or not otherwise limited by Jaw. V. Levy of Special Assessments In the exercise of the power mentioned in subparagraph 3 of Heading No. I, above, the municipal council may, according to an opinion of the Attorney-General, levy special assessments upon real estate. Inasmuch, however, as Commonwealth Act No. 470, known zs the Assessment .Law, expressly authorizes such levy by municipal councils and prescribes in detail the pro· cedure to be followed by municipal councils ·in the levying of such special assessments, municipal councils are hereby enjoined to levy such assessments, whenever desired, under the provisions of the latter law and .to follow the procedure therein prescribed. V·I. Changes in the Law The important changes in the law are as follows: 1. Increase of maximum rates which the municipal.council or mwnicipal district council may impoise without the <1pproval of the Secretary of Finance. -The maximum rates.of municipal Ii<'ense taxes that may be imposed by municipal councils and municipal dis· trict councils without the approval of the Secretary of Finance have been increased from 50 per cent to 100 per cent of the rates of fixed national internal revenue privilege taxes, in ,the. case of businesses and occupations sub· ject to such internal-revenue privilege taxes under sections 193 and 201 of the National Internal Revenue Code, Commonwealth Act No. 466 (formerly under section 1464 of the Administrative Code), and from '1'25 to P50 per annum, in the· case of businesses subject to the fixed annual tax imposed i'1 section 182 of the National Internal Revenue Code (formerly under section 1457 of the Administrative Code). 2. New limitation on power of cowndl' to increase any exis.ting municipal license tax.-Section 4 (3) of Commonwealth Act No. 472 prescribes the new requirement that, whenever the Tate of municipal license tax on any business, occupation or privilege not subject to the limitations mentioned in APRIL, 1949 I• the preceding subparagraph is hi.creased by more than 50 per cent, the approval of the Secretary of •Finance shall be secured. 3. Elimination from the field of national taxation of certain businesses.Certain businesses formerly taxed by both the National and the municipal governments have been eliminated from the field of national taxation aild placed under the exclusive jurisdiction of municipal authority. While retail dealers in tuba, basi, and tapuy; proprietors of cockpits; cockfights; proprietors of theaters, museums, cinematographs, and concert halls ; proprietors of circuses giving exhibitions in one or more places or provinces ; proprietors of billiard rooms; and pawnbrokers were taxed under section 1464 of the f.ormer Jnternal Revenue Law, the revenues derived therefrom accrued, in accordance with section 486 of the Ad;ministrative Code, exclusively to the municipal governments, in addition to the municipal license taxes levied thereon and directly collected by the municipalities and municipal districts. These businesses are now placed under the exclusive authority of the local governments for taxation purposes, but pending action by the municipal councils and municip11l district councils, section 2 of Com· monwealth Act No. 472 has fixed the mm1mu:m rates that shall be collected from the said businesses;. which were the rates formerly fixed by the National Government, except that of the annual tax on retail ·dealers in tuba, basi, and tapuy, which has been reduced from '1'10 to !P5. Said section 2 of Commonwealth Act No. 472 had the effect of rendering inoperative, from and after June 16, 1939, all ex· isting ordinances of municipalities and municipal dfatric'ts, in so far as said businesses are concerned, whether the rates therein fixed were lower or higher than those fixed in the law. As a result, municipalities would be losing in revenue if they do not (or have not done so since June 16, 1939) fixed a r:ite of municipal license .tax on each of the said businesses equivalent to at least the combined (former) national Page 223 rate and the existing municipal rate. Under section 2 of Act No. 2984, as amended by Act No. 3865, sparring or boxing exhibitions are taxed by the National Government at the rates therein fixed, in additio.n to such taxi as each municipality may fix by ordinance. In accordance with section 369 (b) of. the National Internal Revenue Code, the said section 2 of Act No. 2984, as . amended, shall be considered repealed after the ciNes and municipalities shall have lawfully taxed the said business at not less than the National rates fixed in section 2 of Act No. 2984, as amended. The trans'fer of this business from the field of national taxation to the exclusive jurisdiction of the local governments is therefore conditioned upon the latter's taxing the same at not less than the national rates. It will be noted that the imposition of the combined national and municipal rates of tax on the said business will not mean any additional burden on the part of the taxpayers concerned but would, on the ... -t<her hand, give an ad.ditional revenue to the local governments. Proprietors, lessees, or concessions-.ires of. cabarets had been taxed by the National Government at 1'50 per· annum since the enactment, on November 21, 1936, of Commonwealth Act No. 215 which added a new subsection to section 1464 of the Administrative Code. This business is no longer taxed by the National Government under the National Internal Revenue.Code. With the elimination from the field of national taxation of this business which has always been taxable by the municipalities and municipal districts, the imposition thereon of a rate of municipal tax equivalent to at least the combi'ned (former) national rate of 1'50 and the existing municipal rate will not mean any additional burden on the part of the taxpayers but would r::>.ther give an additional revenue to the municipalities and municipal districts so taxing it. 4. Busines{Jes and occupations newly made subject to local taxation.-Sugar centrals, rice mills,· coconut oil factoPage 224 ries, tanning industries, hemp-grading establishments, embalmers, piano tuners, and piano repairers who do not carry on their trade in their own shops or establishments, which were formerly exempt from municipal taxation under section 1 of Act 3422, as amended, have now been eliminated from the exempt class of businesses and occupations under section 3 of Commonwealth Act No. 472. These businesses and occupations may now therefore be lawfully fa,xed by the municipal councils or municipal district councils under the powers conferred upon them in section 1 of Commonwealth Act No. 472. In order to maintain at least the combined rates of national and municipal levy on the businesses mentioned in &ubparagraph 3, above, namely, businesses eliminated from the domain of national taxation, each municipal council and municipal district council (unless, in the case of the bui·snesses mentioned in Nos. 1 to 6, below, it has already done so after June 16, 1939) should approve appropriate ordinances imposing municipal license taxes eriuivalent to at least the combined national and muncipal rates upon: 1 . Retail dealers in tuba, basi and tapuy ........................ P 10.00+ 2. Proprietors of cockpits .... 200.00+ [Each cockfight (so'ltada) .25]: 3. Proprietors of (a) Theaters .............. , ..... 100.00+ [By the month .. ,..... · 10.00] (b) Museums .................... 100.00+ [By the month ........ 10.00J (c) Cinematographs ........ 100.00+ [By the month ........ 10.00] (d) Concert halls ............ 100.00+ [By the month ........ 10.00] 4. Proprietors of circuses giving exhibitions in one or more places or provinces ... : ................................ 200.00+ (IBy the month ---~---- 20.~0J 5. 'Proprietors of billiard rooms For each table ........ 10.00+ 6. Pawnbrokers .................... 400.oo+ 7. Sparring or boxing exhibitions: (Continued on page 226} THE LOCAL GOVERNMENT REVIEW Instructions ... (a) In the capitals of, Cebu, lloilo, Zamboan. ga, and Davao ........ 400.00+ (b) In first and second class munieipalities 280.00+ (c) In third, fourth and · fifth class municipa· lities ............................ 200.00+ 8. Proprietors, lessees, or concessionaires of cabarets 50.00+ For example, if in municipality "X" the existing annual rate of municipal license tax on retail dealers in tuba, basi, and tapuy- is PS, then the annual rate of municipal license tax to be fixed now for such business should be PlO plus P8 or P18 x x x To repeat, the imposition' of the combined national and municipal rates on the above business will not mean any · additional burden on the part of the taxpayers concerned since, as already stated, the national taxes thereon have been or are being abolished. Provincial boards, provincial treasurers, and mu· nicipal and municipal district treasurers should therefore urge municipal councils and municipal district councils to act immediately in accordance with the above instructions. Should the combined rate x x x exceed by more than 50% the municipal license tax in force in the municipality or municipal district, such increase is hereby approv_ ed under the provisions of Section 4(3) of Commonwealth Act No. 472., (To be continued) Sciope .•• en manera alguna. Se revoca la sentencia apelada, se declara va!.ida la ordenanza .No. 8 del Municipio de Tanauan, Leyte, y se absuelve al demandado de la condena de tlaiios y perjuicios, sin especial pronun· ciamiento en cuanito a las costas. Asi se ordena. RAMON AVANCE&A CONFORMES: Antonio Villa-Real, Carlos A. Imperial, Anacleto Diaz, Jose P. Laurel, Pedr-o Concepcion, Manuel V. MOTan. Page 228 OUR LOCAL ... clerk (Spanish Army), Quartermaster, Cabanatuan, Nueva Ecija and San Fer· nando, Pampanga, 1898 ; special deputy, ·Provincial Treasury, San Isidro, Nueva Ecija, 1901; traveling ~eputy, Provincial Treasury, San Isidro, Nueva Ecija, 1902·'04; Municipal Treaisurer and Deputy Provincial Treasurer, San Isidro, Nueva Ecija, 1904-'06; Deputy Treasurer, Provincial Treasury, San Isidro, Nueva Ecija, 1908-'09; senior clerk, District Auditor, San Isidro, Nueva Ecija, 1909-'10; chief clerk and deputy, Provincial Treasury, Bulacan, 1910·'12; Actg. Provincial Treasurer, !Bulacan, 1912-'13; chief clerk and deputy treasurer, •Provincial Treasury, Bulacan, 1913·'14; Actg. Provincial Treasurer, Bataan, 1914-'16; Provincial Treasurer and Agent, P. N. B., Surigao, 1916·'17; Provincial: Treasurer, Bohol, 1917-'20; Provincial Treasurer, Rizal, 1920-'21; 'Provincial Treasurer of Laguna and President, Provincial Treasurers' Association, 1921 ·'33; Provincial Assessor, Laguna, 1925-'33; Agent, P. N. B., Laguna, 1921-'33; Provincial Treasurer, !Provincial As· sessor, and Agent, P. N .!Bi., Rizal, 1983-'39; Provincial Treasurer, Provincial Assessor and Agent, P. N. B .. Batangas, 1939·' 44; !Provincial Treasurer, Rizal, 1944; and Provincial Treasurer, Provincial Assessor and Agent, P. ~. B., Laguna, 1945..:__, Designations . ....:.... Member, Financial Survey Committee of the Department of the Interior and Labor, 1933; Meril~ ber, Committee on Local Finance, in cooperation with the Constitutional Convention, 1934; Supervising Treasurer for the Third District (Rizal, Ma· rinduque, Mindoro, Cavite, Bataan, Palawan and Manila), 1935; Member, Committee on .coordination of Collection Activities (Dept. of Finance) , 1937 ; one of .the judges of the Sweepstakes draw of 1937 and detailed in 1939 by the President of the Phil· ippines to assist in the assessment work in the newly created Quezon City. THE LOCAL GOVERNMENT REVIEW