Ordinance Amending Chapter 1 — General Provisions, Section 3 and Chapter 3 — Tax on Business, Section 21 of Ordinance No. 224, Series of 1995 Otherwise Knows as "The Marikina Revenue Code of 1995"

May 27, 2009 MARIKINA CITY ORDINANCE NO. 068-09 ORDINANCE AMENDING CHAPTER 1 GENERAL PROVISIONS, SECTION 3 AND CHAPTER 3 TAX ON BUSINESS, SECTION 21 OF ORDINANCE NO. 224, SERIES OF 1995 OTHERWISE KNOWN AS "THE MARIKINA REVENUE CODE OF 1995" Introduced by: Councilor Ponciano T. Ubaldo, Jr. WHEREAS, one of the major thrusts of this City Government is to entice business entrepreneurship and boost economic activities in the City of Marikina; WHEREAS, to encourage investments to be poured in into the city, some form of special incentives may be granted to investors; WHEREAS, in Chapter 1 General Provisions, Section 3, (item) 11 of Ordinance No. 224, Series of 1995 otherwise known as the Marikina Revenue Code of 1995, the term "dealer" has been defined as "one whose business is to buy and sell any commodity of value."; WHEREAS, under Section 21, Chapter 3 Tax on Business of Ordinance No. 224, Series of 1995 otherwise known as the Marikina Revenue Code of 1995, real estate dealers (or dealership) have been categorized as businesses subject to two percent (2%) tax; as follows: ASHaTc . . . "(H) On any other business not otherwise specified in the preceding paragraphs, the rate of tax shall be two percent (2%) of the gross sales or receipts of the preceding calendar year. Following are certain business establishments subject to two percent (2%) tax. . . . s. Real estate dealers; subdivision operators; lessor or sub-lease of real estate, including accessories, apartel, pension inn, apartment, condominium house for lease, rooms, and space for rent, dealer of real estate" . . . WHEREAS, however, real estate dealers are not "lessors or sub-lessors of real estate", hence, they should not be classified as such. NOW THEREFORE, BE IT ORDAINED AS IT IS HEREBY ORDAINED by the SANGGUNIANG PANLUNGSOD ng MARIKINA, in session duly assembled, that: SECTION 1. Chapter 1 General Provisions, Section 3, (item) 11 of Ordinance No. 224, Series of 1995 otherwise known as the Marikina Revenue Code of 1995 is hereby amended to read as follows: CAaSED "11. Dealer one whose business is to buy and sell merchandise, goods and chattels as a merchant. As used in this definition, the term "dealer" shall include dealers, developers or sellers of real estate, condominiums, townhouses, duplex and other businesses engaged in building and selling, whether it is a corporation, a partnership or single proprietorship." SECTION 2. Chapter 3 Tax on Business, Section 21 par. (H) sub-par. (s) of Ordinance No. 224, Series of 1995 otherwise known as the Marikina Revenue Code is hereby amended to read as follows: "(H) On any other business not otherwise specified in the preceding paragraphs, the rate of tax shall be two percent (2%) of the gross sales or receipts of the preceding calendar year. Following are certain business establishments subject to two percent (2%) tax: . . . s. Subdivision operators; lessors or sub-lessors of real estate, including accessories, apartel, pension inn, apartment, condominium house for lease, rooms, and space for rent. SECTION 3. Real estate dealers/sellers/developers shall be taxed at the rate of seventy five percent (75%) of one percent (1%) of the gross sales or receipts of the preceding calendar year. cITCAa SECTION 4. This adjustment on tax rate for real estate dealers/sellers/developers shall be applied prospectively after the passage of this ordinance. SECTION 5. Repealing Clause. All ordinances, rules and regulations, or parts thereof, in conflict with, or inconsistent with any of the provisions of this Ordinance are hereby repealed or modified accordingly. SECTION 6. Effectivity. This Ordinance shall take effect upon approval. APPROVED by the SANGGUNIANG PANLUNGSOD ng MARIKINA this 27th day of May, 2009. I hereby certify to the passage of the foregoing Resolution during the 20th Regular Session of the City Council of Marikina on May 27, 2009. (SGD.) LOLITA E. DE LEON City Council Secretary ATTESTED & CERTIFIED TO BE DULY APPROVED: (SGD.) COUNCILOR THADDEUS ANTONIO M. SANTOS Acting Presiding Officer APPROVED by the HONORABLE CITY MAYOR on July 22, 2009 (SGD.) MA. LOURDES C. FERNANDO City Mayor