l Taxation is purely legislative. By enacting a law.

l Under the 1935 Constitution, Congress delegates the power to tax to the LGU by enacting a law. It can limit the
LGU’s power to tax.
l Under the 1987 Constitution, it is not delegated anymore. It is already direct authority, provided in Sec. 5, Article
X of the Constitution.

l 3 things you can levy:

1. Taxes - to raise revenue
2. Fees - to regulate
3. Other charges - payment for the use of property of the LGU

l Self executing - doesn’t need a law to give effect

l Non self executing - the Congress needs to enact a law before it is given effect

l The Constitution is all self executing

l Source of the power of the LGU to tax is the Congress but not anymore. It is now through the Constitution. The
Congress’ only duty is to set guidelines and limitations by enacting laws which is the RA No. 7160 or the Local
Government Code. Such must be consistent with basic policies of local autonomy.
l The Local Goverment Code took effect on January 1, 1992.

l How does the State exercises its power to tax?

- Through legislation (Congress) who enact laws that is applicable to the State.

l How does the LGU exercises its power to tax?

- Through the Sanggunian who enacts ordinances that is applicable within their territorial limits.

l Nature of taxation - The power of taxation is inherent attribute of sovereignty. The government relies on taxation
to obtain the means to carry on its operations.