TAXATION II PART IV ( WITH ASSIGNED CASES) LOCAL AND REAL PROPERTY TAXATION Republic Act No.

7160, Local Government Code (LGC) of 1991, as amended Implementing Rules and Regulations of the LGC LOCAL TAXATION

PRELIMINARY MATTERS a. Power to Tax of Local Government Units i. Sec. 5 Art. X, 1987 Constitution (compare with 1935 and 1973 provisions) ii. Sec. 129, LGC Pepsi Cola Bottling vs. Municipality of Tanuan 69 SCRA 460 Mactan Cebu International Airport Authority vs. Marcos – GR No. 120082, Sept. 11, 1996 Manila Electric Company vs. Province of Laguna – GR No. 131359, May 5, 1999 NPC vs. City of Cabanatuan GR No. 149110, April 9, 2003 City Government of Quezon City vs. Bayan Telecommunications – GR No. 162015, March 6, 2006 iii. Local Taxing Authority (Sec. 132) 1. Construction of Tax Ordinances (Sec. 5b) Petron Corp. vs. Mayor Tobias Tiangco – GR No. 158881, April 16, 2008 iv. Procedure for Approval of and Effectivity of Tax Ordinances (Sec. 187) Hagonoy Market vs. Mun. of Hagonoy GR No. 137621, Feb. 6, 2002 v. b. Publication (Sec. 188)

I.

Other Preliminary Matters i. Residual Powers of LGUs Power to Levy Other Taxes, Fees or Charges (Sec. 186) ii. Doctrine of Preemption or Exclusionary Rule Victorias Milling Co., Inc. vs. Municipality of Victorias – L21183, September 27, 1968 II. GENERAL PROVISIONS a. Scope of taxing powers (Sec. 128) b. Fundamental Principles (Sec. 130) c. Definitions (Sec. 131) d. Common Limitations i. Income Tax 1. Correlate with Sec. 143 (f) ii. Documentary Stamp Tax iii. Transfer Taxes 1. Correlate with Sec. 135 iv. Customs Duties v. Taxes, Fees and Charges (TFC) on Goods Passing Through the Territorial Jurisdiction of LGUs

1. 2008 Province of Bulacan vs. 149110. Sept. City of Butuan – GR No. 2005 TAXING AND OTHER REVENUE RASING POWERS OF LGUS a. Fees. GR No. 125948. 166408. October 6. 169836. City of Cabanatuan GR No. November 27. 11. . 155 Panaligan vs. Taxes on BOIregistered enterprises viii. 2009 City of Davao City vs. 122) City of Cebu vs. L28138 August 13. August 18. Taxes. 2000 xiii. 136) iii. TFC on products sold by marginal farmers of fishermen 1. Correlate with Sec. Definition of Marginalized Fishermen (Sec. April 9. Local Transfer Tax (Sec. City of Tacloban – GR No. 2003 vi. September 27. 143 (c) xiv. Vs. Excise taxes under the NIRC/TFC on Petroleum Products Petron Corp. 126232. 158881. 137) NPC vs. 1986 x. ABSCBN GR No. July 31. Inc. 163072. CA – GR No. Provinces i. Municipality of Tanuan 69 SCRA 460 Matalin Coconut Co. Municipality of Malangas – GR No. or Charges on Philippine Products Actually Exported. Correlate with Sec. IAC 144 SCRA 710 vii. CA – GR No. 1957 Palma Development Corp vs. 131512. TFC on the National Government. 2008 III. 1998 ix. TFC for registration of motor vehicles and issuance of licenses for driving 1. Taxes on transportation contractors and common carriers First Philippine Industrial Corporation vs. 99(a)(3)(vi) of the IRR of the LGC LTO vs.1. vs. Percentage taxes and VAT Pepsi Cola Bottling vs. GR No. its agencies and instrumentalities and LGUs Philippine Fisheries Dev’t Authority vs. April 2. 127383. 458 (3)(vi) of the LGV and Art. CA – GR No. TFC on CBBEs under RA No. Lanao del Sur. L9319. 152492. December 29. 120082. Franchise Tax (Sec. Taxes on premiums xii. 135) ii. RTC – GR No. Correlate with Sec. 1996 MIAA vs. CA GR No. 6810 and RA 6983 xv. October 16. City of Pasay – GR No. 2003 Quezon City vs. Business Tax on Printing and Publication (Sec. April 16. January 20. 155650. 2007 Mactan Cebu International Airport Authority vs. The Municipal Council of Malabang. July 20. 1998 xi. 2006 MIAA vs. Mayor Tobias Tiangco – GR No. Marcos – GR No.

181845 August 4. GR No. October 25. 228 (b) IRR of LGC) vi. 243 of the IRR of the LGC) Fees and Charges (Sec. City of Cebu – L30745 – Jan. 143) Ericsson Telecommunication vs.Smart Communications vs. September 16. Of Sipocot – 105 Phil. 1988 (compare with current LGC provisions and IRR provisions on rolling stores) a. Sta. 139) 1. Amusement Tax (Sec. Project Offices. 18. 2008 (Also read decision on Motion for Reconsideration dated July 21. Catch all provision – Sec. With Branch or Sales Outlet b. 2009) iv. No Branch Sales or Outlet c. c. Business Taxes (Sec. Situs of Tax (Sec. Mar. vs. plants or plantations in different localities f. 238 (f) IRR of the LGC) 2. 146) 5. See also IRR for rules on rolling stores (See Art. November 27. 1987 Province of Bulacan vs. 145) Mobil Phils. Tax on Sand. 2000 vii. City Treasurer of Makati GR No. Plantation Located at a place other than the place where factory is located e. Rates of Tax within Metropolitan Manila (Sec. BA Lepanto – GR No 154992. Cities (Sec. 2009 PBA vs. Coca Cola Bottlers. project offices. CA GR No. Gravel and Quarry Resources (Sec. City of Pasig GR No. July 14. Romana LGR No. 150) – Where to pay business tax? Shell Co vs. 144) 3. 52019 – Aug. November 22. 148 and Sec. With Factories. 7. 143 (h) 2. Professional practices his profession in several places (Sec. Two (2) or more factories. 155491. b. 126232. 176667. Annual Fixed Tax on Delivery Trucks / Vans (Sec. 147) Others (Sec. 2007 Yamane vs. 1263 Phil. 141) Municipalities i. 2005 City of Manila vs. Match vs. City of Iloilo GR No. 119122. 138) Municipality of San Fernando vs. 2009 1. Retirement of Business (Sec. 149) 6. 140) as amended by RA No. CA – GR No. Plants and Plantations d. City of Davao – GR No. 1998 v. 151) . 1888. Mun. 30159. 2005 4. 9640 dated May 21. Definition of Professionals (Sec. 197778 Iloilo bottlers vs. 154092. August 8. Professional Tax (Sec. 31. Payment of Business Taxes (Sec.

162) 8. Sec. Exemptions (Sec. 152 b) iii. March 25. Authority to Adjust Tax Rates (Sec. 163) IV. 152 b) e. 179) . Local Government’s Lien (Sec. Barangay i. Collection of Local Revenues by Treasurer (Sec. Presentation of CTC on certain occasions (Sec. 159) 5. Authority to Grant Tax Exemptions (Sec. 161) 7. 143867. 152 c) iv. 176) v. Levy of Real Property (Sec. 193) PLDT vs. Tax on retailers (Sec. Examination of Books of Accounts and Pertinent Records (Sec. Place of Payment (Sec. GR No. Distraint (Sec. Time of Payment (Sec. Juridical Persons Liable to Community Tax (Sec.d. 156) f. 187) Figuerres vs. Common Revenue Raising Powers i. Surcharges and Penalties (Sec. Individuals Liable to pay (Sec. 324 IRR of the LGC vs. Accrual of Tax (Sec. 191) iii. Public Hearings Necessary? (Art. 165) ii. Time of Payment (Sec. 178) vi. 171) b. April 9. Community Tax 1. 152 a) ii. Advertisement and Sale (Sec. 174) iii. Collection of Taxes i. City of Cabanatuan GR No. 149110. 157) 3. CA. COLLECTION OF TAXES AND REMEDIES a. 1999 ii. Community Tax Certificate (Sec. 158) 4. 169) vi. 155) iii. Barangay Clearance (Sec. 2003 v. 156) 2. 2001 NPC vs. 175) iv. Other Matters i. 119172. Redemption of Property Sold (Sec. Service Fees and Charges (Sec. Other Fees (Sec. 166) iii. 167) iv. Toll Fees or Charges (Sec. 160) 6. Withdrawal of Tax Exemption Privileges (Sec. Service Fees or Charges (Sec. 168) v. 173) ii. 154) ii. Civil Remedies (Sec. Interests on Other Unpaid Revenues (Sec. City of Davao GR No. 170) vii. Public Utility Charges (Sec. 192) iv. Tax Period and Manner of Payment (Sec. August 22. Remedies of the Government i. Who may impose(Sec.

Assessed Value e. 2007 PLDT vs. GR No. 198) Important Definitions (Sec. Sept. 185) c. City of Iloilo. 183) Further Distraint and Levy (Sec. 2009 NPC vs. 195) San Juan vs. Real Property for RPT Purposes (415 NCC) ii. 1968 b. 201) Sesbreno v. I. 270 SCRA 263 d. 111249. vs. 184) Personal Property Exempt from Distraint or Levy (Sec. Province of Quezon. GR No. May 31. 188) CocaCola Bottlers vs. 196) REAL PROPERTY TAXATION PRELIMINARY MATTERS a. Appraisal of Real Property (Sec. x. Province of Quezon. L26521. Publication (Sec. 2010 (Resolution) BALBA GSIS vs. Protest of Assessment (Sec. GR No. CBAA L47943. Appraisal v. xi. Lim GR No. 29772. January 31. 104786. Busuego. Castro – GR No. 1982 Manila Electric Co. 186242 December 23. 181) Resale of Real Estate Tax for TFC Judicial Action (Sec. GR No. Taxpayer’s Remedies i. CA. Who should pay the real property tax? Baguio vs. 187) Drilon vs. Definition of Real Property Tax Villanueva vs. 174617. 2009 v. 1962 Caltex Philippines. Actual Use Patalinghug vs. January 25. May 31. 1980 NPC vs. CBAA. Machineries Mindanao Bus vs. 171586. City Treasurer and Assessor of Manila. Periods of Assessment and Collection (Sec. 50466. September 18.. Assessment vi. 1982 BAA vs. December 27. December 28. 171586. CTA EB Case No.vii. June 3. Question Constitutionality of Ordinance (Sec. Claim for Refund (Sec. City of Manila GR No. vs. 156252. City Assessor and Treasurer L17870. Fundamental Principles (Sec. 2009 c. Purchase of Property by LGU for want of bidder (Sec. Appeal to the CTA vi. ix. Manila Electric Co. CBAA – GR No. 1994 ii. City of Balanga. 194) iv. June 27. L15334. July 15. 29. August 4. January 27. 1994 iv. 2006 iii. GR No. 199) i. Inc. viii. . 413. 1964 iii.

127139 February 19. Condonation or Reduction of RPT by President (Sec. 204) iv. 219) vii. 154126. October 12. 276) ii. Classes of Real Property for Assessment (Sec. City of Manila. 1990) Patalinghug vs. Rates of Levy (Sec. Special Classes of Real Property (Sec. 223) xi. Depreciation Allowance for Machinery (Sec. 90639. 1999 ii. 233) UY Allied Bank vs. 154126. 232) b. City of Manila – GR No. January 27. By Assessor (Sec. 215) iii. October 11. 270 SCRA 263 x. 206) Provincial Assessor of Marinduque vs. . CA. 218) vi. Assessment of Property Subject to Back Taxes (Sec. 225) Condonation of RPT i. 222) Sesbreno v. 104786. Valuation of Real Property (Sec. IMPOSITION OF REAL PROPERTY TAX a. 152904. 217) Testate Estate of Concordia Lim vs. Appraisal and Assessment of Machinery (Sec. 2005 viii. Actual Use as Basis for Assessment (Sec. CA – GR No. Proof of Exemption from RPT (Sec. Association de Benevola de Cebu – GR No. 208) g. CBAA. 2005 c. February 21. 216) City Assessor of Cebu City vs. October 11. General Revision of Assessments and Property Classification (Sec. By Owner or Administrator (Sec. 224) xii. CBAA – GR No. 212) Lopez vs. Assessment Levels (Sec.f. April 4. 202) ii. 2007 iv. 221) ix. 220) Allied Bank vs. 2009 ii. Notification of Transfer of Real Property Ownership (Sec. 154126. Assessment of Real Property i. 277) h. 170532. 234) i. 1994 LRTA vs. In case improvements are made (Sec. Date of Effectivity of Assessment or Reassessment (Sec.2005 v. June 8. October 11. Condonation and Reduction of RPT (Sec. Notification of New or Revised Assessment (Sec. Quezon City Government – GR No. Quezon City Government – GR No. Power to Levy Real Property Tax (Sec. Quezon City Government – GR No. Preparation of Schedule of Fair Market Values (Sec. Exemptions from RPT (Sec. Constitutional Provisions on RPT Exemption II. GR No. 127316. GR No. Declaration of Real Property i. 2000 Allied Banking Corporation vs. 203) iii.

4(3). 2006 MIAA vs. Sec. 2005 Provincial Assessor of Marinduque vs. Local Government Unit’s Remedies i. LGU’s Lien (Sec. 245) III. 263) IV. 155650. 2009 City of Davao City vs. 240) i. 251) REMEDIES a. 2007 NDC vs. Special Levies (Sec. August 18. July 31. . 170532. GR No. 2005 vi. Additional Levy for SEF (Sec. 1996 MIAA vs. Interest on Unpaid RPT (Sec. City Treasurer and Assessor of Manila. 2007 Mactan Cebu International Airport Authority vs. e. 250) d. IMPOSITION OF REAL PROPERTY TAX a. Ordinance Imposing Special Levy (Sec. Sept. Notice of Time of Collection (Sec. City of Pasay – GR No. 154027 October 24. 186242 December 23. 261) vii. 241) ii. 255) iv.1. VI Lung Center of the Philippines vs. 260) Puzon vs. 171586. April 2. 237) ii. 120082. RTC – GR No. July 20. Advertisement and Sale (Sec. February 16. Date of Accrual (Sec. 127383. Art. 249) c. 236) i. Province of Batangas GR No. Date of Accrual of Tax (Sec. July 15. 242) iii. 270) 1. Coverage of Idle Lands (Sec. GR No. Publication and Public Hearing (Sec. Purchase of Property by the Local Government Units for Want of Bidder (Sec. Marcos – GR No. Suspension of Period to Collect v. Accrual of Special Levy (Sec. 257) iii. Province of Quezon. Tax Discount for Advanced Prompt Payment (Sec. vs. Idle Lands Exempt from Tax (Sec. 246) b. QC – 433 SCRA 119 2. 243) iv. 235) RPT on Idle Lands (Sec. Art. 2010 (Resolution) GSIS vs. CA – GR No. 171586. 244) v. Payment of RPT in Instalments(Sec. April 4. Cebu City 215 SCRA 382 Philippine Fisheries Dev’t Authority vs. Inc. Levy on Real Property (Sec. 2009 NPC vs. Sec. 2009 NPC vs. Province of Quezon. CA – GR No. XIV Fels Energy. Fixing Amount of Special Levy (Sec. January 25. 169836. CA GR No. GR No. 11. Period to Collect (Sec. Abelera 169 SCRA 789 Spouses Tan vs. 258) 1. 238) f. 246) ii. 168557. 28. Redemption of Property Sold (Sec. Bantequi GR No. 163072. GR No. Taxpayers Remedies (Sec. 2009 d.

Bayan Telecommunications – GR No. 171586. 146382. Marquez 438 SCRA 679 NPC vs. vs. March 6. 226) City Government of Quezon City vs. 1995 Olivarez vs. Quezon City Government – GR No. GR No. 154126. Province of Quezon. 252) Ramie Textile vs. GR No. 117577. 267) ii. Province of Batangas GR No. 229) 3. iv. 2009 NPC vs. 162015. Mathay 89 SCRA 586 Ty vs. July 15.viii. 168557. 2006 – Motion for Clarification of Decision v. Local Government of Caloocan. 2010 (Resolution) b. Assessment Appeals 1. 2003 Fels Energy. 171586. 268) iii. Inc. 231) . January 25. Court Action for Collection (Sec. Appeal with the LBAA (Sec. Appeal to the CTA En Banc 5. 253) Allied Banking vs. Action by the LBAA (Sec. Trampe – GR No. 229) 4. 2006 Manila Electric Co. vs. Barlis – 433 SCRA 11 Systems Plus Computer College of Caloocan vs. September 15. GR No. Effect of Appeal on Payment of RPT (Sec. Payment under Protest (Sec. 266) Taxpayer’s Remedies i. Refunds (Sec. February 16. August 7. Action Assailing Validity of Tax Sale (Sec. December 1. Appeal to the CBAA (Sec. Province of Quezon. 2007 2. Action Involving Ownership (Sec.

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