Legal Service

September 1, 1994 DILG LEGAL OPINION NO. 149-94 LEGAL SERVICE COUNCILOR RODOLFO C. NAZARENO Sangguniang Bayan Las Pias, Metro Manila S i r : This has reference to your August 23, 1994 letter, requesting for legal opinion on whether or not the municipal mayor is authorized to waive motu proprio the collection of revenues, such as the Certificate of Electrical Inspection Fee, on the basis of Article 87 (3) (iii) of the Rules and Regulations Implementing the Local Government Code of 1991 (RA 7160)which provides, in part, that: Art. 87. "Powers, Duties, and Functions of the Municipal Mayor. . . . (b) For efficient, effective and economical governance the purpose of which is the general welfare of the municipality and its inhabitants pursuant to Section 16 of the Code, the municipal mayor shall: xxx xxx xxx (3) Initiate and maximize the generation of resources and revenues and apply the same to the implementation of development plans, program objectives and priorities . . . and, relative thereto, shall: xxx xxx xxx (iii) Ensure that all taxes and other revenues of the municipality are collected, and that municipal funds are applied in accordance with law or ordinance to the payment of expenses and settlement of obligations of the municipality; . . ." (see also Sec. 444 (b) (3) (iii), RA 7160) In relation thereto, Section 192 of RA 7160 specifically authorizes local government units, through ordinances duly approved, to grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary. To implement this provision, Article 282, Rule XXX of the Code's rules and regulations partly provides that "while sanggunians may grant tax exemption, tax incentive or tax relief, such grant shall not apply to regulatory fees which are levied under the police power of LGUs ." It is to be noted that under RA 7160, the condonation or reduction of taxes refers only to real property taxes and no such authority is granted to condone other forms of local taxes, fees and charges, especially to 'regulatory fees' which are levied under the police power of LGUs. LLphil From the foregoing premises, it is our considered view that a municipal mayor does not have any legal authority, by himself alone, to waive the collection of revenues, more so the collection of inspection fees which appear to be 'a regulatory fee levied under the police power', the latter being an exception thereto, considering, further, that it is incumbent upon the local chief executive to maximize the generation of resources and ensure that all other revenues of the municipality are collected. Hoping that you will be clarified accordingly. Very truly yours, DIR. ALMARIO M. DELOS SANTOS Director II, Officer-in-Charge Department of Interior and Local Government