Collection of the City Government's Share in the Proceeds from the Development and Utilization of the National Wealth

October 31, 2004 DAVAO CITY ORDINANCE NO. 032-04 AN ORDINANCE DIRECTING THE CITY TREASURER TO COLLECT THE CITY GOVERNMENT'S SHARE IN THE PROCEEDS FROM THE DEVELOPMENT AND UTILIZATION OF THE NATIONAL WEALTH IN ACCORDANCE WITH SECTIONS 289, 290, 291, AND 292 OF R.A. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 Be it ordained by the Sangguniang Panlungsod of Davao City in session assembled: SECTION 1. Title . This Ordinance shall be known as "AN ORDINANCE DIRECTING THE CITY TREASURER TO COLLECT THE CITY GOVERNMENT'S SHARE IN THE PROCEEDS FROM THE DEVELOPMENT AND UTILIZATION OF THE NATIONAL WEALTH IN ACCORDANCE WITH SECTIONS 289, 290, 291, AND 292 OF R.A. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE. OF 1991"; SECTION 2. Declaration of Policy . a) It is hereby declared as the policy of the State that the City Government shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self reliant communities and make them more effective partners for the attainment of national goals; b) It is the policy of the State that the Local Government shall have an equitable share in the proceeds derived from the utilization and development of the National Wealth within their respective areas including sharing the same with the inhabitants by way of direct benefits; SECTION 3. Purpose . This Ordinance shall have the following purposes and objectives, to wit; 1.) To generate additional revenues for the City Government in order to support and subsidize the growing needs of its residents; 2.) To assess, demand and collect the share of the City Government in the proceeds derived from the development and utilization of the National Wealth from National Government Agencies (NGAs) and/or Government-Owned or Controlled-Corporations (GOCCs) in accordance with Section 291 of the Local Government Code of 1991; SECTION 4. Coverage . This Ordinance shall be imposed on all National Government Agencies (NGAs) and/or Government-Owned or Controlled-Corporations (GOCCs) operating, extracting or developing and utilizing all forms of National Wealth within the territorial jurisdiction of the City of Davao, such as, but not limited to, the National Power Corporation (NPC),the Davao City Water District (DCWD),the Department of Agriculture (DA),the Bureau of Plant Industry (BPI, the Daliao Fish Port Complex, the Philippine Ports Authority (PPA),the Fiber Industry Development Authority (FIDA),the Bureau of Fisheries and Aquatic Resources (BFAR),the National Irrigation Administration (NIA) and the Department of Environment and Natural Resources (DENR); SECTION 5. Rules of Interpretation . In the interpretation of the provisions of this Ordinance, the following shall apply: a. Any provision on a power exercised by a city department or office shall be liberally interpreted in its favor and in case of doubt, any question thereon shall be resolved in favor of granting such power to the city department or office concerned; b. Rights and obligations existing on the date of effectivity of this Ordinance and arising out of contracts or any other obligation involving the City Government shall be governed by the original terms and conditions of said contracts or the law in force at the time such rights, are vested; c. In the resolution of controversies arising out of this Ordinance, where no legal provisions or jurisprudence applies, resort may be had to the customs and traditions in the place where the controversies took place; SECTION 6. Definition of Terms . The following terms are further defined to elaborate the fundamental nature of this Ordinance: a. National Wealth refers to all natural resources situated within the Philippine territorial jurisdiction including lands of public domain, waters, minerals, coal, petroleum, mineral oils, potential energy forces or sources, gas, and oil deposits, forest products, wildlife, flora and fauna, fishery and aquatic resources, and all quarry products: b. Utilization and Development refers to the use or employment of improvement for practical expenditure and profitable measures; c. Gross Sales or Receipts pertains to the total income or profit before necessary deductions have been made. cSITDa SECTION 7. Collection of Share . There is hereby required payment of share based on the proceeds of the preceding fiscal year derived by any Government Agency or Government-Owned or Controlled-Corporation engaged in the utilization and development of the National Wealth based on the following formula whichever will produce a higher share for the Local Government, to wit: a. One percent (1%) of the gross sales or receipts of the preceding calendar year; or b. Forty percent (40%) of the mining taxes, royalties, forestry and fishery charges and such other taxes, fees or charges, including related surcharges, interests, or fines the Government Agency or Government-Owned or Controlled-Corporation would have paid if it were not otherwise exempt. cdtax2005 SECTION 8. Remittance of the Share of Local Government . The share of the Local Government from the utilization and development of National Wealth shall be remitted in accordance with Section 286 of R.A. 7160, otherwise known as the Local Government Code of 1991, provided, that in the case of any Government Agency or Government-Owned or Controlled-Corporation such share shall be directly remitted to the City within five (5) days after the end of each quarters; SECTION 9. Special Provision . a. Development of Livelihood Projects The proceeds from the share of the Local Government from the utilization and development of the National Wealth within its respective jurisdiction shall be appropriated thru the Sanggunian to finance local development and livelihood projects, provided, however, that at least eighty percent (80%) of the proceeds derived from the development and utilization of hydrothermal, geothermal, and other sources of energy shall be applied solely to lower the cost of electricity in the local government where the source of energy is located; SECTION 10. Separability Clause . Any provision of this Ordinance that shall later be rendered null and void by a competent court shall not affect the remaining provisions of this Ordinance that are valid and constitutional; SECTION 11. Repealing Clause . Any provision of existing ordinances inconsistent with the provisions of this Ordinance is hereby repealed accordingly; SECTION 12. Effectivity Clause . This Ordinance shall take effect immediately after its publication as required by the provisions of R.A. 7160, (Local Government Code of 1991). ENACTED, September 28, 2004 by a majority vote of all the Members of the Sangguniang Panlungsod. CERTIFIED CORRECT: (SGD.) LOLITA C. GARCIA Secretary to the Sangguniang Panlungsod (City Government Department Head II) ATTESTED: EMMANUEL D. GALICIA, SR. President Pro-Tempore Acting Presiding Officer APPROVED: (SGD.) RODRIGO R. DUTERTE City Mayor ATTESTED: (SGD.) WENDEL E. AVISADO City Administrator