Legality of a Municipal Tax Ordinance Imposing a 10% Interest Rate on the Principal Amount Compounded on an Unpaid Water Bill

DOJ OPINION NO. 026, s. 2015 March 5, 2015 Mr. Carlito Urdaneta Purok 9, Poblacion Monkayo, Compostela Valley 8805 Dear Mr. Urdaneta : This refers to your email dated 29 January 2015 inquiring as to the legality of a municipal tax ordinance imposing a 10% interest rate on the principal amount compounded on an unpaid two-month water bill. In relation to this, you also asked if the provision can supersede Sections 168 and 169 of Local Government Code of 1991 1 and whether there are exceptions to the said Sections. It seems, however, that you did not attach the very Municipal Tax Ordinance you are questioning. We, therefore, cannot act on your request as we need to examine the said ordinance in order to determine its validity. This also encompasses your other queries in relation to the matter. In this relation, if you think that the ordinance is illegal, you may file an appeal to the Secretary of Justice within 30 days from its effectivity. 2 This will not, however, suspend the effectivity of the said ordinances. 3 Very truly yours, (SGD.) LEILA M. DE LIMA Secretary Footnotes 1. RA 7160. 2. Section 187, Ibid. 3. Ibid.