Bureau of Local Government Finance Opinion

August 4, 2014 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the Municipal Treasurer, Talavera, Nueva Ecija, the action taken by that Municipality on the issue embodied in the herein letter dated March 18, 2014 addressed to Hon. NERIVI SANTOS-MARTINEZ, Municipal Mayor, that Municipality, of the various owners/managers of gasoline stations located within the territorial jurisdiction of that Municipality. As represented, owners/managers of gasoline stations thereat decided to unify themselves so that they could collectively express and ventilate their concern relative to the imposition of a Php200.00 fee for every 60-day period for the sealing/calibration of fuel dispensing pump per nozzle of their gasoline stations as per Section 3K.04 (f 6) of Municipal Ordinance No. 15, as amended, of that Municipality, which they believed is unjust, oppressive, unreasonable and excessive considering that what the calibrator is doing during calibration is only to see that gasoline pump nozzle dispenses correct volume of petroleum product. HEITAD In view of the above, Section 130 (b) (3) (4) and Section 186 of the Local Government Code (LGC) of 1991 were cited as follows: " Section 130. Fundamental Principles. The following fundamental principles shall govern the exercise of the taxing and other revenue-raising powers of local government units: (a) . . . (b) Taxes, fees, charges and other impositions shall: 1. . . .; 2. . . .; 3. not be unjust, excessive, oppressive, or confiscatory ; 4. not be contrary to law, public policy, national economic policy, or in restraint of trade ; xxx xxx xxx." " Section 186. Power to Levy Other Taxes, Fees or Charges. Local Government Units may exercise the power to levy taxes, fees or charges on any base or subject not otherwise specifically enumerated herein or taxed under the provisions of the National Internal Revenue Code, as amended, or other applicable laws: Provided, That the taxes, fees, or charges shall not be unjust, excessive, oppressive, confiscatory or contrary to declared national policy: Provided, further, That the ordinance levying such taxes, fees or charges shall not be enacted without any prior public hearing conducted for the purpose ." (Emphasis supplied) Said owners/managers of gasoline stations are of the opinion, based on jurisprudence that non-compliance with the mandatory conditions set forth in the law may render the assailed part of Ordinance No. 15 null and void. In view of the abovequoted provisions of the LGC, the gasoline owners/managers are requesting the Office of the Municipal Mayor of Talavera to cause the necessary amendment of Section 3K.04 (f 6) of Municipal Ordinance No. 15, as amended, by decreasing the Php200.00 fee for every 60-day period for the sealing/calibration per nozzle of the gasoline pumps. The group is suggesting a Php50.00 fee per nozzle for a 60-day period. In this connection, this Bureau is requesting information of the action taken on the matter five (5) days upon receipt hereof. Be guided accordingly. (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director