An Ordinance Imposing Tax on Corporations and Other Business Establishments Enjoying a Franchise Doing Business/Operation in the City of Mandaluyong

September 11, 2002 MANDALUYONG CITY ORDINANCE NO. 253-02 AN ORDINANCE IMPOSING TAX ON CORPORATIONS AND OTHER BUSINESS ESTABLISHMENTS ENJOYING A FRANCHISE DOING BUSINESS/OPERATION IN THE CITY OF MANDALUYONG BE IT ENACTED by the Sangguniang Panlungsod of Mandaluyong, in session assembled: SECTION 1. Title. This Ordinance shall be known as "An Ordinance imposing tax on corporations and other business establishments enjoying a franchise and doing business/operation in the City of Mandaluyong." SECTION 2. Scope and Coverage. This Ordinance encompasses the imposition of franchise taxes to all corporations and other business establishments doing its operation in the City of Mandaluyong as service providers enjoying a franchise granted by any law or statute and/or ordinances. These corporations and/or business establishments are the likes of Manila Electric Company (MERALCO), Philippine Long Distance Telephone Company (PLDT), Manila Water Company (MWC), Cable-Television Information Technology Providers (IT), Off-Track Betting Stations, Lotto outlets and all others whose business is analogous to the aforementioned. SECTION 3. Definition of Terms. a. FRANCHISE is a right or privilege affected with public interest which is conferred upon private persons or corporations under such terms and conditions as the government and its political subdivisions may impose on the interest of public welfare, security and safety. b. TAX To declare that a pecuniary contribution shall be made by the persons or corporations liable for the support of government. SECTION 4. Imposition of Tax. There is hereby imposed a tax on business enjoying a franchise, notwithstanding any exemption granted by any law or other special law, a rate of fifty (50%) percent of one (1%) percent of the gross annual receipts which shall include both cash sales and sales on account realized during the preceding calendar year within the territorial jurisdiction of the City of Mandaluyong. In case of newly started business, the taxes shall not exceed one-twentieth (1/20) of one (1%) percent of the capital investment. In the succeeding calendar year, regardless of when the business started to operate the tax shall be based on the gross receipts for the preceding calendar year or fraction thereof. SECTION 5. Exemption. Holders of Certificates of Public Convenience (CPC) the operation of public utility vehicle and Business establishments engaged in manpower pooling for temporary services; SECTION 6. Payment of Tax. The tax shall be paid to the City Treasurer or his/her deputies on or before the twentieth day of January every year and thereafter. SECTION 7. Effectivity Clause. This Ordinance shall take effect fifteen (15) days after publication in a newspaper of general circulation. ADOPTED on this 11th day of September 2002 in the City of Mandaluyong. I HEREBY CERTIFY THAT THE FOREGOING ORDINANCE WAS ADOPTED AND APPROVED BY THE SANGGUNIANG PANLUNGSOD OF MANDALUYONG IN REGULAR SESSION HELD ON THE DATE AND PLACE FIRST ABOVE GIVEN. (SGD.) JIMMY D. LACEBAL Sanggunian Secretary ATTESTED: (SGD.) JESUS C. CRUZ City Vice Mayor & Presiding Officer APPROVED: (SGD.) BENJAMIN C. ABALOS, JR. City Mayor Date: September 20, 2002