Bureau of Local Government Finance Opinion

April 8, 2010 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Ernesto M. Ordonez President Cement Manufacturers Association of the Philippines (CeMAP), Inc. No. 1 Corporal Cruz St. cor. F. Rodriguez, Jr. Ave. Bo. Bagong Ilog, Pasig City Sir : This refers to your letter dated September 23, 2009 seeking opinion on the legality of the fees being charged by the Provincial Government of Rizal under Ordinance No. 010, s. 2008. It may be recalled that said letter was referred to the Office of the Provincial Treasurer of Rizal Province for comment and/or appropriate action under a letter dated October 15, 2009. In response thereto, the Provincial Treasurer of Rizal, in her letter dated 23 February 2010 instead submitted the following documents, viz. : 1) Copy of Provincial Ordinance No. 010, s. 2008 2) Copy of Publication of the same Ordinance 3) Position Papers submitted by quarry operators (Concrete Aggregates Corporation & Eastern Rizal Miner's Association) during the public hearing SDTIaE Perusal of the Position Papers submitted by some quarry/mining operators show that they are one in questioning the legitimacy of Ordinance No. 010, s. 2008 more particularly Sections 5, 6 & 7 thereof. Relative to your concern, the Local Government Code (LGC) of 1991 provides some remedial steps, particularly Sections 187 and 188 thereof, quoted as follows: SEC. 187. Procedure for Approval and Effectivity of Tax, Ordinances and Revenue Measures; Mandatory Public Hearings . The procedure for approval of local tax ordinances and revenue measures shall be in accordance with the provisions of this Code: Provided, That public hearings shall be conducted for the purpose prior to the enactment thereof: Provided, further, That any question on the constitutionality or legality of tax ordinances or revenue measures may be raised on appeal within thirty (30) days from the effectivity thereof to the Secretary of Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal : Provided, however, That such appeal shall not have the effect of suspending the effectivity of the ordinance and the accrual and payment of the tax, fee, or charge levied therein: Provided, finally, That within thirty (30) days after receipt of the decision or the lapse of the sixty-day period without the Secretary of Justice acting upon the appeal, the aggrieved party may file appropriate proceedings with a court of competent jurisdiction . (Boldfacing and underscoring supplied) aSCDcH SEC. 188. Publication of Tax Ordinances and Revenue Measures . Within ten (10) days after their approval, certified true copies of all provincial, city, and municipal tax ordinances or revenue measures shall be published in full for three (3) consecutive days in a newspaper of local circulation: Provided, however, That in provinces, cities and municipalities where there are no newspapers of local circulation, the same may be posted in at least two (2) conspicuous and publicly accessible places. Based on the submitted documents, it is apparent that the enactment of said Ordinance No. 010 had gone through legal processes provided in the abovequoted provisions of the LGC. Having observed the required procedures, it is our understanding that the affected parties were properly informed and participated in the public hearing conducted for the purpose. In this regard, it is viewed that the only remaining option left for the Association is to file the appropriate proceedings with a court of competent jurisdiction. (Sec. 187, supra) cDaEAS It is hoped that we have clarified matters. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director