Bureau of Local Government Finance Opinion

July 26, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned thru the Regional Director for Local Government Finance, Region III, Benigno Aquino Memorial Hall, Provincial Capital Compound, San Fernando, Pampanga, to the City Treasurer of Tarlac City, his letter dated April 16, 2001 regarding the letter dated April 2, 2001 of the Provincial Treasurer of Tarlac, relative to the remittance of all collections effected by that Office on amusement tax from amusement places situated within the city to the Province of Tarlac, on the strength of the 3rd Indorsement dated February 12, 2001 of this Bureau. Under said 3rd Indorsement, this Bureau concurs in the stand of the Legal Service Office of said Province that the province is still legally entitled to collect amusement taxes from all amusement places situated within the City of Tarlac on the grounds among others, as follows: "1. The enabling City Ordinance was disapproved by the Sangguniang Panlalawigan. SaAcHE "2. The Sangguniang Panlungsod Resolution requesting reconsideration of the disapproval of the City Tax Ordinance on amusement taxes was denied by the Sangguniang (Panlungsod) Panlalawigan." However, that Office claims that the basis of collection are not the disapproved ordinances but City Ordinance No. 98-018 which was duly enacted on December 14, 1998 under Resolution No. 306. Said City Ordinance was duly received on December 18, 1998 at the Office of the Sangguniang Panlalawigan Secretary but to this day, no action was made by the Honorable Sangguniang Panlalawigan of Tarlac. In view of the above, that Office contends that by operation of law, and as provided for under Section 56 (d) of the Local Government Code of 1991 (LGC) and as implemented by Article 110 (d) of its Rules and Regulations, which states ". . . If no action has been taken by the Sangguniang Panlalawigan within thirty (30) days after submission of [such an] ordinance or resolution, the same shall be presumed consistent with law and therefore valid" thus that Office commenced discharging its mandated duties and function pertaining to the collection of city imposition pursuant to City Ordinance No. 98-018. In this connection and on the basis of the representations made by that Office, it may be stated that under Section 151 of the LGC, there is an unequivocal provision that the exercise of the tax powers of the city extends to all the taxes, fees and other impositions that the province or a municipality may levy or collect, to the exclusion of the national and provincial governments. Stated differently, the exercise of the city of the taxing powers given to the province deprive the latter of its authority to impose a similar tax and grants exclusive power to the city to levy and collect such taxes, fees and charges. cCTaSH Accordingly, following settled interpretation of local tax laws and the spirit of present legislation, this Bureau holds that the Province of Tarlac may impose local amusement taxes on amusement places specified by law within the city limits off Tarlac City. Therefore, NO remittance should be made to the province on the collection of amusement taxes by the city from the amusement places situated therein. Be guided accordingly. (SGD.) BENJAMIN A. GERONIMO Executive Director <www.blgf.gov.ph/downloads/opinion/localtax/2001/a2001-0417.pdf> last visited January 13, 2014.