Bureau of Local Government Finance Opinion

March 13, 1996 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Municipal Mayor Cataingan, Masbate S i r : This refers to the letter dated February 7, 1996 regarding your query as to whether it is legal for the Local Government Unit to continue the imposition of taxes based on Municipal Tax Ordinance No. 5 without proper submission to the Sangguniang Panlalawigan. It appears that the subject Ordinance was enacted on September 30, 1988 and implemented on January 1, 1989. Said Ordinance is the basis of the local tax collection of that municipality in the absence of a new or revised Tax Ordinance enacted under the provisions of the Local Government Code of 1991 (R.A. 7160). Article 278 of the Implementing Rules and Regulations (IRR) implementing Section 529 of the Code provides as follows: "ART. 278. Existing Tax Ordinances or Revenue Measures. (a) All existing tax ordinances or revenue measures of provinces, cities, municipalities and barangays imposing taxes, fees or charges shall continue to be in force and effect after the effectivity of the Code, except those imposing levies on tax bases or tax subjects which are no longer within the taxing and revenue raising powers of the LGU concerned and where the rates levied in tax ordinance are higher than the taxes, fees, or charges prescribed in this Rule in which case, the lower rates shall be collected. "(b) In case of failure of the sanggunian to amend or revoke tax ordinances or revenue measures inconsistent with, or in violation of the provisions of the Code and of this Rule, the same shall be deemed rescinded upon the effectivity of the Code and its implementing rules and regulations." cdlex It is clear from the aforequoted provisions of the law that for as long as the existing taxes, fees or charges fixed by the subject Ordinance are among those specified in the LGC and the existing rates thereof are within the maximum as provided for in the same Code, then a review thereon by the Sangguniang Panlalawigan is no longer necessary. Very truly yours, LORINDA M. CARLOS Executive Director