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ORMOC SUGAR COMPANY, INC., plaintiff-appellant, Section 2 of Republic Act 2264, this Court, in Nin Bay Mining Co. v. Municipality of
vs. Roxas 4 held the former to have been repealed by the latter.
CITY, HON. ESTEBAN C. CONEJOS as Mayor of Ormoc City and ORMOC ISSUE: Whether or not constitutional limits on the power of taxation, specifically the
CITY, defendants-appellees. equal protection clause and rule of uniformity of taxation were infringed.


The Municipal Board of Ormoc City passed Ordinance No. 4, Series of 1964, imposing The equal protection clause applies only to persons or things identically situated and
"on any and all productions of centrifugal sugar milled at the Ormoc Sugar Company, does not bar a reasonable classification of the subject of legislation, and a
Inc., in Ormoc City a municipal tax equivalent to one per centum (1%) per export sale classification is reasonable where (1) it is based on substantial distinctions which
to the United States of America and other foreign countries." make real differences; (2) these are germane to the purpose of the law; (3) the
classification applies not only to present conditions but also to future conditions which
Ormoc Sugar Company, Inc. filed before the Court of First Instance of Leyte a are substantially identical to those of the present; (4) the classification applies only to
complaint against the herein defendants alleging that the ordinance is unconstitutional those who belong to the same class.
for being violative of the equal protection clause and the rule of uniformity of taxation
and that it is an export tax forbidden under Section 2287 of the Revised Administrative The questioned ordinance does not meet the requisites. When the taxing ordinance
Code; and that the tax amounts to a customs duty, fee or charge in violation of was enacted, Ormoc Sugar Co., Inc. was the only sugar central in the City. A
paragraph 1 of Section 2 of Republic Act 2264 because the tax is on both the sale reasonable classification should be in terms applicable to future conditions as well.
and export of sugar. The taxing ordinance should not be singular and exclusive as to exclude any
subsequently established sugar central from the coverage of the tax. A subsequently
The defendants asserted that the tax ordinance was within defendant city's power to established sugar central cannot be subject to tax because the ordinance expressly
enact under the Local Autonomy Act and that the same did not violate the afore-cited points to Ormoc Sugar Company, Inc. as the entity to be levied upon.
constitutional limitations.
The Court of First Instance upheld the constitutionality of the ordinance. Appeal was
directed to the Supreme Court by Ormoc Sugar Company, Inc. Appellant alleges the WHEREFORE, the decision appealed from is hereby reversed, the challenged
same statutory and constitutional violations in the taxing ordinance. ordinance is declared unconstitutional and the defendants-appellees are hereby
ordered to refund the P12,087.50 plaintiff-appellant paid under protest. No costs. So
Section 1 of the ordinance requires that Ormoc Sugar Company Inc. must pay to the ordered.
City Treasurer a municipal tax equivalent to one per centum (1%) per export sale to
the US and other foreign countries.

Appellant questions the authority of the defendant to levy an export tax, in view of
Section 2287 of the Revised Administrative Code which denies from municipal
councils the power to impose an export tax. Subsequently, however, Section 2 of
Republic Act 2264, gave chartered cities, municipalities and municipal districts
authority to levy for public purposes just and uniform taxes, licenses or fees. Anent
the inconsistency between Section 2287 of the Revised Administrative Code and