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2nd Endorsement

October 2, 2013
PLO No. 2013-139

Respectfully returned to Mrs._____________, Secretary to the Sanggunian, Office
of the Sangguniang Panlalawigan, the attached unnumbered Ordinance of the Municipality
of ______________ entitled, “The ______________ Tourism Code of 2013,” with the
following comments/opinion to wit:

Under Section 17 of RA 7160, otherwise known as the Local Government Code of
1991, local government units shall exercise such other powers and discharge such other
functions and responsibilities as are necessary, appropriate, or incidental to efficient and
effective provision of the basic facilities enumerated therein, which include for a
municipality, tourism facilities and other tourist attractions, including the acquisition of
equipment, regulation and supervision of business concessions, and security services for
such facilities.

Likewise, Section 447 of the Code provides that the Sangguniang Bayan, as the
legislative body of the municipality, shall enact ordinances, approve resolutions and
appropriate funds for the general welfare of the municipality and its inhabitants pursuant to
Section 16 of this Code and in the proper exercise of the corporate powers of the
municipality as provided under Section 22 of the same Code.

Pursuant to the above provisions, this Office opines that it is within the power of the
Sangguniang Bayan of ________________ to enact its own Tourism Code.

However, this Office finds the following provisions of the Tourism Code as not in
harmony with existing laws, to wit:

1. SECTION 10. THE MUNICIPAL TOURISM COUNCIL (MTC).

- While it is within the power of the Municipal Mayor to call upon any national
official stationed in or assigned to the municipality to advise him on matters
affecting the municipality and to make recommendations thereon, he has no
direct authority over the said officials to compel them to be part of a Council
under the Municipal Government because the nature of their appointment
and function is independent of the powers of the Municipal Government.
Hence, the Sangguniang Bayan or the Municipal Mayor, may only invite or
coordinate with, but cannot mandate the PCSD Personnel and the DENR
Personnel to be part of the MTC without prior approval or agreement with the
heads of the said Personnel.

2. SECTION 33. LEGAL REQUIREMENTS/SUPPORTING DOCUMENTS
AND PROCEDURES FOR REGISTRATION OF TOURISM-ORIENTED
ESTABLISHMENTS.
- The _________ Clearance System under Administrative Order
No. 6, in conformity with the Memorandum of Agreement between PCSD
and DENR dated December 29, 1994 and DOJ Opinion No.90, series of 1994,
recognizes the SEP Act as the primary law in the province of Palawan.
Section 12 of the said Administrative Order provides that “upon receipt of
the authorization issued by the ___________, the DENR shall

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PLO/mjo/2013

xxx (l) Taxes. 4. No. issue a certification of non-coverage. SECTIONS 37. AND SECTION 58. AND SECTION 38. which are found to be inapplicable to some of the applicants. SECTION 53. such power of the LGU is subject to certain limitations enumerated under Section 133 thereof which provides that taxing powers of LGUs shall not extend to the following: (d) Customs duties. provides that each local government unit shall exercise its power to create its own sources of revenue and to levy taxes. respectively from the date of registration. permit.A. upon issuance of _________________. the same Pre-Construction and Post- Construction Requirements are being imposed uniformly for Agencies. and all other kinds of customs fees. Vehicles and Organizers. 6810 and Republic Act Numbered Sixty-nine hundred thirty-eight (R. and (o) Taxes. It is the DENR which issues the ECC or the Certification of Non-Coverage. Section 33 Par (f) and (e) of the Tourism Code needs review and appropriate revision. fees or charges for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for the driving thereof. Hence. consistent with the basic policy of local autonomy.A. ESTABLISHMENT OF BRANCH. except tricycles. . or charges. As reviewed and noted by this Office. 2 PLO/mjo/2013 . . and local government units. on Countryside and Barangay Business Enterprises and cooperatives duly registered under R. LEGAL REQUIREMENTS AND SUPPORTING DOCUMENTS FOR REGISTRATION OF TRAVEL & TOUR SERVICES. its agencies and instrumentalities. Section 129 of the Local Government Code. However. Sections 37 and 38 have to be renumbered or rearranged to avoid confusion. tonnage dues. No. either proceed with the processing of the ECC. REGISTRATIONS FEES. lease agreements or other similar instruments” and that “the DENR shall not issue an ECC without the _________ Clearance/Authorization issued by the __________”. registration fees of vessel and wharfage on wharves. fees. charges and dues except wharfage on wharves constructed and maintained by the local government unit concerned. (e) Taxes on business enterprises certified to by the Board of Investments as pioneer or non-pioneer for a period of six (6) and four (4) years. 3. . fees or charges of any kind on the National Government. (n) Taxes. Tour Guides. fees and charges subject to the provisions herein. LICENSE AND PERMIT FEES . license. 6938) otherwise known as the "Cooperative Code of the Philippines" respectively.

000. Tour Guides. the same must conform to Section 143 Par (h) of the Local Government Code. there is a need to clarify the basis for imposing the Registration Fee on the above business/establishments. Inns. . in complying with directions during inspections. Section 59 of the proposed Tourism Code also explains that the License tax imposed therein is in the nature of a Business Tax. that the Municipality of ______________ cannot impose Registration Fees. Being a Business Tax. based on the existing laws. SECTION 83.000.00 for every day of delay for Resorts. Restaurants. Tourist Air Transport and Professional Congress Organizer: 1. not otherwise specified in the preceding paragraphs. Resorts. 5. Franchising and Regulatory Board (LTFRB). Annual Licence Tax. Mayor’s Permit/Regulatory Fees . an exercise of the taxing power of the LGU. Tourist Land Vehicles. as amended. Travel & Tour Operators/Agencies. 2. Moreover. The Sanggunian concerned may prescribe a schedule of graduated tax rates but in no case to exceed the rates prescribed therein.00. the fine of P150. are not 3 PLO/mjo/2013 . Apartels. Trainings Centers. Hence.00 to P5. and therefore imposing both would constitute Double Taxation. Motels. AND SECTION 153. . Departments Stores and Souvenir Shops. value-added or percentage tax under the National Internal Revenue Code. The Tourism Code of ________________ imposes the following tax/fees to Hotels. One-time Registration Fee. License Tax and Regulatory Fee/Mayor’s Permit on (1) Land Transportation Vehicles. as well as that in Section 153 imposing a penalty of P1. . (2) Sea/Water Transportation Vessel because it is within the jurisdiction of Maritime Industry Authority (MARINA) and (3) Air Transportation because it is within the jurisdiction of the Civil Aviation Authority of the Philippines (CAAP). 3. the rate of tax shall not exceed two percent (2%) of gross sales or receipts of the preceding calendar year.500. Homestays.00 for violation of the Ordinance. It is the opinion of this Office. Museums. Tourist Water Vessels. which the Sanggunian may deem proper to tax: Provided that on any business subject to the excise. but not to exceed P5. Sports and Recreational Clubs. for violation of a municipal ordinance. which refers to business. under Section 83. Pensions. PENALTY PROVISIONS . PENALTY FOR FAILURE TO REMEDY THE DEFECT. it being similar to Permit Fee/Mayor’s Permit which is an imposition in connection with regulatory measure or police power. 000.00) or an imprisonment for a period not exceeding six (6) months. or both at the discretion of the court. Section 447 of the Local Government Code provides that Sangguniang Bayan has the power to approve ordinances imposing a fine not exceeding Two Thousand Five Hundred (P2. because it is within the jurisdiction of the Land Transportation. except Tricycles.

The Tourism Code has to specify whether the exemption from the “Liquor Ban” indicated in the said Section is in connection with the Liquor Ban imposed by the COMELEC during Election Period or in relation to a Municipal Ordinance. 000. a Guano Permit must first be obtained from the Office of the Governor. However. shall be imposed at the discretion of the court. Such exemption may be allowed if the basis of the Liquor Ban is merely a local Ordinance. SECTION 144. INCENTIVES FOR TOURISM-ORIENTED AND TOURISM-RELATED ESTABLISHMENTS.00). Any qualified person may be granted a guano permit by the provincial governor to extract and utilize loose unconsolidated guano and other organic fertilizer materials in any portion of a municipality where he has established domicile. if the violation is pursuant to a provision of a Tax Ordinance. AND SECTION 153.00) nor more than Five thousand pesos (P5. Other than the above-cited provisions. Respectfully submitted. _________________ Provincial Legal Officer _________________ Attorney V 4 PLO/mjo/2013 . The permit shall be for specific caves and/or for confined sites with locations verified by the Department's field officer in accordance with existing rules and regulations. this Office finds no legal impediment that would render the Tourism Code of Busuanga not valid. Such fine or other penalty. . 6. It is the PMRB which sets the requirements for the application of such permit. . 000. 51 of the Philippine Mining Act of 1995 provides that: Guano Permit. Hence. _________ TO DETERMINE SCHEDULE OF PERMIT FEES/TOURIST FEES. SHARING OF PROCCEEDS AND ACCOUNTING. the power to give exemption is within the jurisdiction of the said Office and not of the Sangguniang Bayan of Busuanga. through the Provincial Regulatory Mining Board. Section 516 of the same Code empowers the Sangguniang Bayan to impose a penalty of not less than One thousand pesos (P1. valid. SECTION 152. Sec. not the PCSD. 7. and imprisonment of not less than one (1) month nor more than six (6) months. if it is in relation to the Liquor Ban imposed by the COMELEC. . or both. However.