Whether the Bureau of Fire Protection Can Collect Taxes Without the LGU Enacting a Fire Code Ordinance

June 28, 2010 DILG LEGAL OPINION NO. 111-10 Vice Mayor Philip M. Adlao Placer, Surigao del Norte Dear Vice Mayor Adlao : This pertains to your letter seeking our legal opinion on whether or not the Bureau of Fire Protection (BFP) can collect taxes without the LGU enacting a Fire Code Ordinance. You also wanted to know what will be the basis of the ten percent (10%) fire safety inspection fee. EaDATc In reply thereto, allow us first to distinguish municipal tax collected under the Local Government Code and the 10% fire safety inspection fee. Please be informed that municipal tax is quite general in scope. Each Local Government Unit (LGU) has the power to create its own sources of revenue and to levy taxes, fees, and charges (Sec. 129, Local Government Code). This power to impose tax, fee or charge shall be exercised by the Sanggunian of the LGU concerned through an appropriate ordinance (Sec. 132, Local Government Code), meaning, before the LGU may impose and collect taxes, fees or charges, necessarily, the same must first be levied under a duly enacted tax ordinance. On the other hand, the "10% fire safety inspection fee" is different from the "fire inspection fee" that is computed by an LGU as part of the imposable business tax. This fire inspection fee is one of the Fire Code fees that are imposable to partially provide funding for fire service pursuant to Section 12 of Republic Act No. 9514, otherwise known as the "Revised Fire Code of the Philippines 2008", the enforcement of which shall be administered by the Bureau of Fire Protection. To further elucidate the distinction between the subject 10% fire inspection fee and municipal tax under Sections 13-A and 13-B of RA 9514 are quoted in toto : DaHSIT "Section 13-A. Assessment of Fire Code Tax, Fees and Fines. The assessment of fire code tax, fees and fines is vested upon the BFP. The BFP shall, subject to the approval of the DILG, prescribe the procedural rules for such purpose." "Section 13-B. Collection and Assessment of Local Tax, Fees and Fines. The collection and assessment of taxes, fees and fines as prescribed in the Local Government Code, except those contained in the Code, shall be the function of the concerned local government units." Hope we have enlightened you on the matter. Very truly yours, By Authority of the Secretary: (SGD.) ATTY. JESUS B. DOQUE IV Director III Legal Service Department of Interior and Local Government