Collection of Fire Tax by Local Treasurers and Remittance Thereof to the Bureau of the Treasury

October 17, 2002 BLGF MEMORANDUM CIRCULAR NO. 022-02 TO : All BLGF Regional Directors; District Treasurers, Metropolitan Manila Area; Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : Collection of Fire Tax by Local Treasurers and Remittance Thereof to the Bureau of the Treasury pursuant to PD 1185, as previously required by this Bureau under BLGF Circular No. 32-93, dated August 16, 1993 As a reminder, quoted hereunder are the provisions of Section 13 (b) and 14 of PD 1185, otherwise known as Fire Code of the Philippines which provide as follows: "Section 13 (B). To partially provide for the funding of the Fire Service, the following taxes and fees which shall accrue to the General Fund of the National Government are hereby imposed: (1) Fees to be charged for the issuance of certificates, permits and licenses as provided for in Section 8(a) hereof; (2) One-tenth of one per centum (0.1%) of the verified estimated value of buildings or structures to be erected, from the owner thereof, but not to exceed fifty thousand (P50,000.00) pesos, one-half to be paid prior to the issuance of the building permit, and the balance, after final inspection and prior to the issuance of the use and occupancy permit; (3) One-hundredth of one per centum (0.01%) of the assessed value of buildings or structures annually payable upon payment of the real estate tax, except on structures used as single family dwellings; (4) Two per centum (2%) of all premiums, excluding re-insurance premium for the sale of fire, earthquake and explosion hazard insurance collected by companies, persons or agents licensed to sell such insurance in the Philippines; (5) Two per centum (2%) of gross sale of companies, persons or agents selling fire-fighting equipment, appliances or devices, including hazard detection and warning systems; and (6) Two per centum (2%) of the service fees received from fire, earthquake, and explosion hazard preinsurance surveys and post loss service of insurance adjustment companies doing business in the Philippines directly though agents. "Section 14. Collection of Taxes, Fees and Fines. All taxes, fees and fines provided in Section 13 hereof, shall be collected by the City or Municipal Treasurer concerned for remittance to the National Treasury." In this connection, it is informed that subject provisions fall under Art. 459 (c) of the Implementing Rules and Regulations in relation with Section 531 of RA 7160 otherwise known as the Local Government Code of 1991. Accordingly, all City and Municipal Treasurers are hereby directed to continue collecting the taxes and fees aforementioned and to remit immediately to the Bureau of Treasury all the unremitted and current year collections thereof. Non-remittance thereof shall subject the local treasurer concerned to administrative disciplinary action and the necessary steps will be taken towards the deduction of the unremitted amount from the internal revenue allotment (IRA) shares of the local government unit concerned. For the information of this Bureau concerning said collections, a quarterly report on the same shall be submitted by all local treasurers concerned. The Regional Directors of this Bureau; the District Treasurers of Metropolitan Manila; and all Provincial Treasurers are hereby enjoined to reproduce and distribute copies hereof to the Municipal Treasurers under their respective jurisdictions for their information, guidance and compliance. The Provincial and City Treasurers are further requested to provide copies to their respective Provincial Governors and city Mayors for their information. (SGD.) MA. PRESENTACION R. MONTESA Executive Director