Bureau of Local Government Finance Opinion

July 19, 1994 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Officer-In-Charge. Office of the Provincial Treasurer, Pili. Camarines Sur her within letter dated March 21, 1994 requesting opinion whether Local Tax Regulations No. 4-75 dated November 17, 1975 as well as regulations and/or opinion on the collection of local taxes and fees are still enforceable with the passage of R. A. 7160 otherwise known as the Local Government Code (LGC) of 1991. It is represented that several queries have been received by that Office from contractors on whether they are still subject to the sand and gravel tax of 10% of the fair market value of quarry materials extracted from private concession areas within the province. In this connection, attention is invited to the provisions of Article 227 of the Implementing Rules and Regulations, implementing Section 138 of the LGC of 1991, quoted hereunder: "Art. 227. Tax on Sand, Gravel and Other Quarry Resources. (a) The province may levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, such as but not limited to marl, marble, granite, volcanic cinders, basalt, tuff and rock phosphate, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction. "(b) . . . " On the basis of the abovequoted provision, it is clear that the collection of 10% tax on sand, gravel, and other quarry resources pertains only to materials extracted from public lands and public waters within its territorial jurisdiction. Local Tax Regulations No. 4-75 implementing Letter of Instructions No. 243 in relation to sections 10 and 23 of the Local Tax Code as amended, states that "sand and gravel tax imposed under local tax ordinances pursuant to Sections 10 and 23 of the Local Tax Code, as amended shall be collected as usual from contractors extracting materials private concession." Sec. 534(f) of the LGC provides that: "Sec. 534. Repealing Clause. "(a) . . . "(f) All general and special laws, acts, city charters, decrees, executive orders, proclamations and administrative regulations, or part or parts thereof which are inconsistent with any of the provisions of this Code are hereby repealed or modified accordingly." From the said section, it is understood that Local Tax Regulations No. 4-75 has been repealed. All other regulations and/or opinions on the collection of local taxes and fees should be in accordance with the provisions of the LGC of 1991 provided under duly enacted local ordinances. Be guided accordingly. LORINDA M. CARLOS Executive Director