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FINALS 03.02 - SCOPE OF TAXING POWERS OF LGUs - Coggle Diagram

- - - - D. BARANGAY
        
        SECTION 152. Scope of Taxing Powers. –
        The barangays may levy taxes, fees, and charges, as provided in this Article, which shall exclusively accrue to them:
        
        (a) Taxes – On stores or retailers with fixed business establishments with gross sales of receipts of the preceding calendar year of Fifty thousand pesos (P50,000.00) or less, in the case of cities and Thirty thousand pesos (P30,000.00) or less, in the case of municipalities, at a rate not exceeding one percent (1%) on such gross sales or receipts.
        
        (b) Service Fees or Charges. –
        Barangays may collect reasonable fees or charges for services rendered in connection with the regulations or the use of barangay-owned properties or service facilities such as palay, copra, or tobacco dryers.
        
        (c) Barangay Clearance. – No city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. For such clearance, the sangguniang barangay may impose a reasonable fee. The application for clearance shall be acted upon within seven (7) working days from the filing thereof. In the event that the clearance is not issued within the said period, the city or municipality may issue the said license or permit.
        
        (d) Other fees and Charges. – The barangay may levy reasonable fees and charges:
        
        1 more item...
        
        1% GS/R:
        STORES/RETAILERS
        
        50K OR LESS: CITIES
        
        30K OR LESS: MUNI
        a) Taxes at rates not exceeding
        1% of gross sales or receipts of stores or retailers with
        fixed business establishments and
        gross sales or receipts of the preceding calendar year of
        Php50,000 or less in the case of cities, and
        Php30,000 or less in the case of municipalities;
        
        REASONABLE FEES:
        BRGY-OWNED PROPS
        SERVICE FACILITIES
        b) Reasonable fees or charges for services rendered in connection with the regulation or the use of barangay-owned properties or service facilities such as palay, copra or tobacco dryers;
        
        BRGY CLRNC -> M's PERM/B-LIC
        c) Reasonable fee for barangay clearance.
        A business establishment is required to first obtain a barangay clearance from the barangay where it shall conduct business before it may be issued by the city or municipality a mayor’s permit or business license; and
        
        REASONABLE FEES:
        
        BREEDING FIGHTING COCKS
        
        RECREATION ADMI-FEES
        
        BILLBOARDS & OUTDOOR ADS
        d) Reasonable fees for commercial breeding of fighting cocks, cockfights, and cockpits, recreation places which charge admission fees, and billboards, signboards, neon signs, and outdoor advertisements.
      - CITY MAY IMPOSE WHAT P/M IMPOSE
        SECTION 151. Scope of Taxing Powers. – Except as otherwise provided in this Code, the city, may levy the taxes, fees, and charges which the province or municipality may impose:
        
        MAY EXCEED 50% OF P/M'S TAX
        The rates of taxes that the city may levy may exceed the maximum rates allowed for the province or municipality by not more than fifty percent (50%)
        
        CAN'T EXCEED 50% P/M TAX
        
        P300 MAX: PROFESSIONAL
        
        30% GR-ADMI-FEES: AMUSEMENT
        except the rates of professional and amusement taxes.
        
        except the rates of professional and amusement taxes, which shall be uniform for cities and provinces at maximum P300 for the professional tax and not more than 30% of the gross receipts from admission fees in the case of amusement tax. Art. 238, IRR
        
        HUC'S TAXES ARE ITS OWN
        Provided, however, That the taxes, fees and charges levied and collected by highly urbanized and independent component cities shall accrue to them and distributed in accordance with the provisions of this Code.
      - ASTIG
        Astig yung mga cities. They can impose what provinces or municipalities may impose.
    - - SECTION 143. Tax on Business. – The municipality may impose taxes on the following businesses:
        
        (a) On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature, in accordance with the following schedule:
        [Schedule]
        
        (b) On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the following schedule:
        [Schedule]
        
        (c) On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated hereunder at a rate not exceeding one-half (½) of the rates prescribed under subsection (a), (b) and (d) of this Section:
        (1) Rice and corn;
        (2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine, and fresh water products, whether in their original state or not;
        (3) Cooking oil and cooking gas;
        (4) Laundry soap, detergents, and medicine;
        (5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs;
        (6) Poultry feeds and other animal feeds;
        (7) School supplies; and
        (8) Cement.
        
        (d) On retailers.
        [Schedule]
        
        (e) On contractors and other independent contractors, in accordance with the following schedule:
        
        1 more item...
        
        Provided, however, That barangays shall have the exclusive power to levy taxes, as provided under Section 152 hereof, on gross sales or receipts of the preceding calendar year of Fifty thousand pesos (P50,000.00) or less, in the case of cities, and Thirty thousand pesos (P30,000.00) or less, in the case of municipalities.
        
        150%(?) MAX - METRO MANILA
        SECTION 144. Rates of Tax within the Metropolitan Manila Area. – The municipalities within the Metropolitan Manila Area may levy taxes at rates which shall not exceed by fifty percent (50%) the maximum rates prescribed in the preceding section.
      - EXCEPTION
        
        PROVINCE-LEVIED
        
        LGC PROVIDED
  - - - (b) 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. The provincial assessor shall likewise make the same requirement before canceling an old tax declaration and issuing a new one in place thereof. Notaries public shall furnish the provincial treasures with a copy of any deed transferring ownership or title to any real property within thirty (30) days from the date of notarization.
        
        It shall be the duty of the seller, donor, transferor, executor or administrator to pay the tax herein imposed within sixty (60) days from the date of the execution of the deed or from the date of the decedent's death.
    - - The Province may impose a tax on the business of persons engaged in the printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and other of similar nature, at a rate not exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year.
        
        In the case of a newly started business, the tax shall not exceed onetwentieth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereof, as provided herein.
        
        The receipts from the printing and/or publishing of books or other reading materials prescribed by the Department of Education, Culture and Sports as school texts or reference shall be exempt from the tax herein imposed.
      - SECTION 137. Franchise Tax -
        
        Notwithstanding any exemption granted by any law or other special laws, the province may impose a tax on business enjoying a franchise, at a rate exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year based on the incoming receipt, or realized, within its territorial jurisdiction.
        
        In the case of a newly started business, the tax shall not exceed onetwentieth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereof, as provided herein.
        
        SECTION 138. Tax on Sand, Gravel and Other Quarry Resources - The province may levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National Internal Revenue Code, as amended, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.
        
        The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the provincial governor, pursuant to the ordinance of the Sangguniang Panlalawigan.
        
        The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as follows:
        (1) Province – Thirty percent (30%);
        (2) Component City or Municipality where the sand, gravel, and other quarry resources are extracted – Thirty percent (30%); and
        (3) Barangay where the sand, gravel, and other quarry resources are extracted – Forty percent (40%).
        
        SECTION 139. Professional Tax -
        (a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination as such amount and reasonable classification as the Sangguniang Panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00)
        
        (b) Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or free for the practice of such profession.
        
        (1) Any individual or corporation employing a person subject to professional tax shall require payment by that person of the tax on his profession before employment and annually thereafter.
        (2) The professional tax shall be payable annually on or before the thirty first (31st) day of January must, however, pay the full tax before engaging therein. A line of profession does not become exempt even if conducted with some other profession for which the tax has been paid. Professionals exclusively employed in the government shall be exempt from the payment of this tax.
        (3) Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of account, plans and designs, surveys and maps, as the case may be, the number of the official receipt issued to him.
        
        SECTION 140. Amusement Tax -
        (a) The province may levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement at a rate of not more than thirty percent (30%) of the gross receipts from admission fees.
        
        (4) In the case of theaters of cinemas, the tax shall first be deducted and withheld by their proprietors, lessees, or operators and paid to the provincial treasurer before the gross receipts are divided between said proprietors, lessees, or operators and the distributors of the cinematographic films.
        (5) The holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary and oratorical presentations, except pop, rock, or similar concerts shall be exempt from the payment of the tax herein imposed.
        (6) The Sangguniang Panlalawigan may prescribe the time, manner, terms and conditions for the payment of tax. In case of fraud or failure to pay the tax, the Sangguniang Panlalawigan may impose such surcharges, interests and penalties.
        (7) The proceeds from the amusement tax shall be shared equally by the province and the municipality where such amusement places are located.
        
        SECTION 141. Annual Fixed Tax For Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products. -
        (a) The province may levy an annual fixed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products as may be determined by the Sangguniang Panlalawigan, to sales outlets, consumers, whether directly or indirectly, within the province in an amount not exceeding Five hundred pesos (P500.00).
        
        (8) The manufacturers, producers, wholesalers, dealers, and retailers referred to in the immediately foregoing paragraph shall be exempt from the tax on peddlers prescribed elsewhere in this Code.
  - - - LGC: MAX RATES
        ORDINANCE: CANT EXCEED
    - - (b) In cases where a person conducts or operates two (2) or more of the businesses mentioned in Section 143 of this Code which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses.
        
        (c) In cases where a person conducts or operates two (2) or more businesses mentioned in Section 143 of this Code which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported for the purpose of computing the tax due from each business.
      - BUSINESS-BUSINESS
        BOTH TAXABLE
        
        NOT INTEGRAL
        If the business is not integral, it will be taxed again
        
        DIFF RATE -> SEPARATE
        In case a person conducts or operates two (2) or more businesses mentioned in Section 143 of the LGC which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported for the purpose of computing the tax due from each business. Sec. 146(c), LGC
        
        SAME RATE -> COMBINED TOTAL
        In case a person conducts or operates two (2) or more of the businesses taxable under Section 143 of the LGC which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses. Sec. 146(b), LGC
        
        MAIN TAXED -> INTEGRAL NOT TAXED
        ● However, a person or entity that is already taxed by a local government unit on his main or principal business may not be further taxed for engaging in an activity that is merely incidental to, or constitutes an integral part of, the main business.
        
        EXAMPLES OF MAIN -> INTEGRAL
        Examples
        
        OILS -> TIN CANS
        (Standard-Vacuum Oil v. Antigua)
        
        REPAIR SHOP -> SPARE PARTS SELLER
        (City of Manila v. Fortune Enterprises)
        
        PRINTING COMPANY -> RETAIL PAPER
        (Manila Press, Inc v. Sarmiento)
        
        BAKERY -> EMPTY FLOUR BAGS
        (Ah Nam v. City of Manila)