An Ordinance Amending Chapter Three (3), Article 7, Section 16 (A), (B), (D), (E01), (E02) and (F03) of City Ordinance No. 565, s. of 2011.

December 27, 2012 BACOLOD CITY ORDINANCE NO. 627-12 AN ORDINANCE AMENDING CHAPTER THREE (3), ARTICLE 7, SECTION 16 (A), (B), (D), (E01), (E02) AND (F03) OF CITY ORDINANCE NO. 565, SERIES OF 2011, OTHERWISE KNOWN AS "AN ORDINANCE APPROVING THE REVISED LOCAL REVENUE CODE OF BACOLOD CITY" WHEREAS, DILG-DOF Joint Memorandum Circular 2012 was issued last January 13, 2012 directing all municipal governors, city and municipal mayors, presiding officers and members of the Sangguniang Panlalawigan/Panlungsod/Bayan, the regional and provincial directors of the Department of Interior and Local Government (DILG) and the Department of Finance, particularly the Bureau of Local Government Finance, and all others concerned to update their respective local revenue codes; WHEREAS, the old revenue code of the City of Bacolod has been in existence for eighteen (18) years; WHEREAS, in our effort to comply with the Local Government Code, City Ordinance No. 565 or the Bacolod City Revenue Code was passed last November 11, 2011 revising the existing tax ordinance of the City; WHEREAS, Bacolod City was once awarded as a business-friendly city all over the Philippines and continuously promote business development that will attract both local and foreign investors; WHEREAS, to attract more investments in the City and pursuant to the provision of Section 458 (2ii) in relation to Section 192 of the Local Government Code, which provides that the "Local Government units may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary." NOW THEREFORE, BE IT ORDAINED AS IT IS HEREBY ORDAINED by the Sangguniang Panlungsod of Bacolod in regular session assembled, that Chapter Three (3), Article 7, Section 16 (A), (B), (D), (E01), (E02) and (F03) of City Ordinance No. 565, Series of 2011, shall be amended and shall read as follows: HSAcaE CHAPTER THREE Tax on Business ARTICLE 7 Imposition and Time of Payment SECTION 16. Imposition of Tax. There is hereby levied an annual tax on the following business undertaking at the rates prescribed herein. (A) ON MANUFACTURERS, ASSEMBLERS, REPACKERS, PROCESSOR, 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. With gross receipts or sales for the preceding calendar year in the amount of: From To Less Than Annual Tax 10,000.00 247.50 10,000.00 15,000.00 330.00 15,000.00 20,000.00 453.00 20,000.00 30,000.00 660.00 30,000.00 40,000.00 990.00 40,000.00 50,000.00 1,237.00 50,000.00 75,000.00 1,980.00 75,000.00 100,000.00 2,475.00 100,000.00 150,000.00 3,300.00 150,000.00 200,000.00 4,125.00 200,000.00 300,000.00 5,775.00 300,000.00 500,000.00 8,250.00 500,000.00 750,000.00 12,000.00 750,000.00 1,000,000.00 15,000.00 1,000,000.00 2,000,000.00 20,625.00 2,000,000.00 3,000,000.00 24,750.00 3,000,000.00 4,000,000.00 29,700.00 4,000,000.00 5,000,000.00 34,650.00 5,000,000.00 6,500,000.00 36,562.50 6,500,000.00 and above at a rate not exceeding thirty- seven and a half percent (37 1/2%) of one percent (1%). Provided, that in no case shall the tax on Gross Sales of 6,500,000.00 or more be less than 36,562.50. aACEID (B) ON WHOLESALERS, DISTRIBUTORS, OR DEALERS IN ANY ARTICLE OF COMMERCE OF WHATEVER KIND OR NATURE IN ACCORDANCE WITH THE FOLLOWING SCHEDULE: With gross receipts or sales for the preceding calendar year in the amount of: From To Less Than Annual Tax 1,000.00 27.00 1,000.00 2,000.00 49.50 2,000.00 3,000.00 75.00 3,000.00 4,000.00 108.00 4,000.00 5,000.00 150.00 5,000.00 6,000.00 181.50 6,000.00 7,000.00 214.50 7,000.00 8,000.00 247.50 8,000.00 10,000.00 280.50 10,000.00 15,000.00 330.00 15,000.00 20,000.00 412.50 20,000.00 30,000.00 495.00 30,000.00 40,000.00 660.00 40,000.00 50,000.00 990.00 50,000.00 75,000.00 1,485.00 75,000.00 100,000.00 1,980.00 100,000.00 150,000.00 2,805.00 150,000.00 200,000.00 3,630.00 200,000.00 300,000.00 4,950.00 300,000.00 500,000.00 6,600.00 500,000.00 750,000.00 9,900.00 750,000.00 1,000,000.00 13,200.00 1,000,000.00 2,000,000.00 15,000.00 2,000,000.00 and above at a rate not exceeding thirty- seven and a half percent (37 1/2%) of one percent (1%). Provided, that in no case shall the tax on Gross Sales of 2,000,000.00 or more be less than 15,000.00. (C) ON RETAILERS with gross sales or receipts for the preceding calendar Per Annum year of Rate of Tax P50,000.00 to P400,000.00 2% P400,000.00 and above P8,000.00 plus 37 1/2% of 1% of gross receipts in excess of P400,000.00 Provided however, that barangays shall have the exclusive power to levy taxes on retailers with gross sales or receipts for the preceding calendar year of FIFTY THOUSAND PESOS (P50,000.00) or less. (E.01) In the case of PRIVATE HOSPITALS Shall be taxed on the gross sales or receipt of the preceding year, at the rate of 12% of 1%. (E.02) In the case of HOTELS, MOTELS, LODGING INNS, BOARDING AND PENSION HOUSES Shall be taxed on the gross sales or receipt of the preceding year, at the rate of 25% of 1% . Provided that in no case shall the tax on gross sales of P2,000,000.00 or more be less than P17,250.00. (F 03) Tax on the Gross Receipts of Banks and Financial Institutions The tax on banks and financial institutions shall be levied on their gross income/receipts where the actual transaction took place and/or the property is located for the preceding calendar year at the following rates: 1. Banks: a. Those with Head Office within the City of Bacolod or the Province of Negros Occidental, at the rate of Twenty-Five Percent (25%) of One Percent (1%). b. Those with Head Office located elsewhere in the Philippines at the rate of Fifty Percent (50%) of One Percent (1%). 2. Financial institutions: CHcTIA a. Those with Head Office within the City of Bacolod or the Province of Negros Occidental, at the rate not exceeding FIFTEEN PERCENT (15%) of ONE PERCENT (1%); b. Those with Head Office located elsewhere in the Philippines at the rate not exceeding FIFTY PERCENT (50%) of ONE PERCENT (1%). SECTION 16.1. The provisions of this ordinance shall also apply to all business establishments that are paying their business taxes on quarterly basis. SECTION 16.2. Separability Clause. If any part or provision of this Ordinance is held invalid or unconstitutional, other provisions not affected thereby shall remain in force and effect. SECTION 16.3. Effectivity. This ordinance shall take effect on January 1, 2013. CARRIED BY THE VOTE OF: Affirmative: Councilors : El Cid M. Familiaran, Homer Q. Bais, Archie S. Baribar, Roberto M. Rojas, Em L. Ang, Dindo C. Ramos, Elmer T. Sy, Sonya M. Verdeflor, Al Victor A. Espino, Caesar Z. Distrito, Carlos Jose V. Lopez, Mona Dia G. Jardin. Negative : Councilor Catalino T. Alisbo Absent : None Author : Councilor Al Victor A. Espino Passed : December 27, 2012 (130th Regular/Special Session). Comments : Passed. Councilor Archie S. Baribar voted in the affirmative with qualification that the reduction should have been lower than what is being proposed. Councilor Caesar Z. Distrito voted in the affirmative with qualification that the cases filed against the city be withdrawn. Councilor Sonya M. Verdeflor voted in the affirmative with qualification that she would have preferred a 35% of 2% reduction. Councilor Keith Emmanuel L. Ramos was not around when this ordinance was passed. (SGD.) JUDE THADDEUS A. SAYSON Vice Mayor Presiding Officer ATTESTED: (SGD.) HELEN P. LEGASPI Board Secretary IV OIC, Secretary to the Sanggunian APPROVED: December 28, 2012 (SGD.) EVELIO R. LEONARDIA City Mayor