Bureau of Local Government Finance Opinion

June 26, 1997 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred thru the Municipal Treasurer, San Jose, Northern Samar, to the Sangguniang Bayan, same municipality. This refers to Ordinance No. 96-17, s. 1996 enacted by that Body, entitled "AN ORDINANCE IMPOSING QUARANTINE/SANITATION, INSPECTION AND SAFETY FEES ON SHIPS ANCHORING AND LEAVING THE PORTS OF BARANGAY NORTH AND BARANGAY LAYUHAN WHARVES, ALL OF SAN JOSE, NORTHERN SAMAR. Upon perusal of said Ordinance, this Bureau finds that Section 3 thereof provides a synchronized collection of fees (quarantine, sanitation, inspection and safety fees) of one half (1/2) of one centavo (.01) per kilo of cargoes (copra, abaca, and other plant/plants products). By way of comment, it may be stated that the imposition of such fees on cargoes of ships anchoring and leaving at said ports will not be proper or valid in view of the provisions of Section 133(e) of the Code which state: "SEC. 133. Common Limitations on the Taxing Powers of Local Government Units . Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following: "xxx xxx xxx "(e) Taxes, fees and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of local government units in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees or charges in any form whatsoever upon such goods or merchandise; "xxx xxx xxx." In lieu of said impositions, it is suggested that flat rates or fixed rates be levied for: 1. Wharfage fee that could be based on tonnage of sea vessels using the wharf; 2. regulatory fees, say for quarantine, sanitation, health inspection; and 3. charges for services that the municipality may render to vessels or passengers using the wharf. IECcAT Amendment of subject ordinance, therefore, may be considered by the Sangguniang Bayan. It bears emphasis, however, that the foregoing views are expressed in line with the provisions of Article 287 of the Implementing Rules and Regulations (IRR) implementing the LGC and not a declaration of the illegality of the ordinance as the matter falls exclusively within the jurisdiction of the Department of Justice. (SGD.) LORINDA M. CARLOS Executive Director