An Ordinance Further Amending Section 4 of City Tax Ordinance No. LXIX, Entitled: "An Ordinance Revising the City Tax Ordinance No. 1, Otherwise Known as the Omnibus Tax Ordinance of the City of Cebu, as Amended"

June 26, 2013 Excerpt from the Minutes of the Regular Session Held by the Sangguniang Panlungsod of the City of Cebu in its Session Hall on June 26, 2013. RESOLUTION NO. 12-5690-2013 The Sangguniang Panlungsod of the City of Cebu, as moved by Member Cabrera and seconded by Member Japson; RESOLVED, to approve the following Ordinance: CEBU CITY TAX ORDINANCE NO. CXXXI AN ORDINANCE FURTHER AMENDING SECTION 4 OF CITY TAX ORDINANCE NO. LXIX, ENTITLED: "AN ORDINANCE REVISING THE CITY TAX ORDINANCE NO. 1, OTHERWISE KNOWN AS THE OMNIBUS TAX ORDINANCE OF THE CITY OF CEBU, AS AMENDED" WHEREAS, the 1987 Philippine Constitution guarantees the protection of Cooperatives as instruments of social justice and economic development; WHEREAS, under Section 133 (n) of Republic Act No. 7160, or the Local Government Code of 1991, the exercise of the taxing powers of local government units shall not extend to the levy of taxes, fees or charges on duly registered Cooperatives; WHEREAS, under Articles 60 and 61 of Republic Act No. 9520, or the Philippine Cooperative Code of 2008, and the Joint Rules and Regulations Implementing Articles 60, 61, and 144 of Republic Act No. 9520 in relation to Republic Act No. 8424, or the National Internal Revenue Code, as amended, explicitly provide for the tax treatment of Cooperatives, particularly with respect to taxes imposed by the National Internal Revenue Code, in this manner: 1. "Duly registered cooperatives which do not transact any business with non-members or the general public shall not be subject to any taxes and fees imposed under the internal revenue laws and other tax laws;" and 2. "Cooperatives transacting business with both members and non-members shall not be subject to tax on their transactions with members. In relation to this, the transaction of members with the cooperative shall not be subject to any taxes and fees, including but not limited to final taxes on members' deposits and documentary tax." Notwithstanding the provisions of any law or regulation to the contrary, Cooperatives with accumulated reserves and undivided net savings of not more than Ten Million Pesos (P10,000,000.00) dealing within non-members shall be exempt from all national, city, provincial, municipal or barangay taxes of whatever name and nature. HEITAD WHEREAS, notwithstanding the exemption of taxes, fees, or charges, Cooperatives, pursuant to the Bureau of Local Government Finance Memorandum Circular No. 31-2009, are still required to: 1. Obtain or secure a Mayor's Permit and pay the commensurate cost of regulation, inspection and surveillance of the operation of their business but not exceeding One Thousand Pesos (P1,000.00); 2. Secure a community tax certificate, as a juridical entity and pay the basic tax of Five Hundred Pesos (P500.00); and 3. Pay service charges or rentals for the use of property and equipment or public utilities owned by the local government such as charges for actual water consumption, electric power, toll fees for the use of public roads and bridges, and the like. NOW THEREFORE, in the light of the foregoing considerations, the Sangguniang Panlungsod of the City of Cebu, in a regular session assembled, hereby ordains that: SECTION 1. Section 4 of City Tax Ordinance No. LXXV entitled: "AN ORDINANCE REVISING THE CITY TAX ORDINANCE NO. 1, OTHERWISE KNOWN AS THE OMNIBUS TAX ORDINANCE OF THE CITY OF CEBU" as amended, is hereby amended in order to read as follows: " Section 4 . City Taxes, fees and other charges, Incidence of . No person shall be issued a permit or license to engage in or pursue any occupation or calling, or conduct and maintain any business, or exercise any privilege within the territorial limits of the City for which a license or permit is required under the provision of this Ordinance, without first having paid the corresponding taxes, fees, or charges therefor. No such business or undertakings mentioned herein shall be conducted or operated without the approved Business or Mayor's Permit having been issued therefor. However, duly registered Cooperatives which do not transact any business with non-members or the general public shall not be subject to any tax, fee or charge. Cooperatives transacting business with both members and non-members shall not be subject to taxes, fees or charges on transactions with their members. Cooperatives with accumulated reserves and undivided net savings of not more than Ten Million Pesos (P10,000,000.00) dealing within non-members shall be exempt from taxes, fees or charges. Notwithstanding, Cooperatives transacting business with both members and non-members are still required to: 1. Obtain or secure a Mayor's Permit and pay the commensurate cost of regulation, inspection and surveillance of the operation of their business but not exceeding One Thousand Pesos (P1,000.00); 2. Secure a Community Tax Certificate, as a juridical entity, and pay the basic tax of Five Hundred Pesos (P500.00); and 3. Pay service charges or rentals for the use of property and equipment or public utilities owned by the City of Cebu such as charges for actual water consumption, electric power, toll fees for the use of public roads and bridges, and the like." SECTION 2. Repealing Clause . Any and all ordinances or provisions thereof which are inconsistent with the provisions of this Ordinance are hereby repealed or modified accordingly. SECTION 3. Effectivity . The Ordinance shall take effect fifteen (15) days after publication in a newspaper of local circulation. CARRIED UNANIMOUSLY. I hereby certify to the correctness of the aforequoted resolution/ordinance. (SGD.) CYNTHIA M. KAHULUGAN Acting Secretary to the Sangguniang Panlungsod ATTESTED: (SGD.) JOY AUGUSTUS G. YOUNG Presiding Officer APPROVED: (SGD.) MICHAEL L. RAMA City Mayor July 3, 2013