An Ordinance Amending Section 2a.02 and 3b.02 (a) of Municipal Ordinance No. 14-006, Series of 2014, Otherwise Known as "The Revised Revenue Code of the Municipality of Pura"

February 15, 2017 Excerpt from the Minutes of the Regular Session of the Sangguniang Bayan of Pura, Tarlac Held at the SB Session Hall on Wednesday, February 15, 2017. PURA MUNICIPAL ORDINANCE NO. 002-17 AN ORDINANCE AMENDING SECTION 2A.02 AND 3B.02 (a) OF MUNICIPAL ORDINANCE NO. 14-006, SERIES OF 2014, OTHERWISE KNOWN AS "THE REVISED REVENUE CODE OF THE MUNICIPALITY OF PURA" Be it ordained by the Sangguniang Bayan of Pura, Tarlac in regular session assembled, that: SECTION 1. Section 2A.02 of Municipal Ordinance No. 14-006 Series of 2014, is hereby amended to read as follows: "Section 2A.02. Imposition of Tax. There is hereby imposed on the following persons who establish, operate, conduct or maintain their respective business within the municipality a graduated business tax in the amounts hereafter prescribed: (a) On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders or liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature. In accordance with the following schedule: Amount of Gross Sales/Receipts Tax Per Annum For the Preceding Calendar Year : Less than 10,000.00 181.50 10,000.00 or more but less than 15,000.00 342.00 15,000.00 or more but less than 20,000.00 332.20 20,000.00 or more but less than 30,000.00 484.00 30,000.00 or more but less than 40,000.00 726.00 40,000.00 or more but less than 50,000.00 907.50 50,000.00 or more but less than 75,000.00 1,452.00 75,000.00 or more but less than 100,000.00 1,815.00 100,000.00 or more but less than 150,000.00 2,420.00 150,000.00 or more but less than 200,000.00 3,025.00 200,000.00 or more but less than 300,000.00 4,235.00 300,000.00 or more but less than 500,000.00 6,050.00 500,000.00 or more but less than 750,000.00 8,800.00 750,000.00 or more but less than 1,000,000.00 11,000.00 1,000,000.00 or more but less than 2,000,000.00 15,125.00 2,000,000.00 or more but less than 3,000,000.00 18,150.00 3,000,000.00 or more but less than 4,000,000.00 21,780.00 4,000,000.00 or more but less than 5,000,000.00 25,410.00 5,000,000.00 or more but less than 6,500,000.00 26,812.50 6,500,000.00 or more At a rate not exceeding forty one and one Fourth percent (41.25%) of one percent (1%) The preceding rates shall apply only to the amount of domestic sales of manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature other than those enumerated under paragraph (c) of this Section. (b) On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the following schedules: Gross Sales/Receipts for the Preceding Calendar Year Amount of Tax Per Annum Less than 1,000.00 19.80 1,000.00 or more but less than 2,000.00 36.30 2,000.00 or more but less than 3,000.00 55.00 3,000.00 or more but less than 4,000.00 79.20 4,000.00 or more but less than 5,000.00 110.00 5,000.00 or more but less than 6,000.00 133.10 6,000.00 or more but less than 7,000.00 157.30 7,000.00 or more but less than 8,000.00 181.50 8,000.00 or more but less than 10,000.00 205.70 10,000.00 or more but less than 15,000.00 242.00 15,000.00 or more but less than 20,000.00 302.50 20,000.00 or more but less than 30,000.00 363.00 30,000.00 or more but less than 40,000.00 484.00 40,000.00 or more but less than 50,000.00 726.00 50,000.00 or more but less than 75,000.00 1,089.00 75,000.00 or more but less than 100,000.00 1,452.00 100,000.00 or more but less than 150,000.00 2,057.00 150,000.00 or more but less than 200,000.00 2,662.00 200,000.00 or more but less than 300,000.00 3,630.00 300,000.00 or more but less than 500,000.00 4,840.00 500,000.00 or more but less than 750,000.00 7,260.00 750,000.00 or more but less than 1,000,000.00 9,680.00 1,000,000.00 or more but less than 2,000,000.00 11,000.00 2,000,000.00 or more At a rate not exceeding fifty five percent (55%) of one percent (1%) The businesses enumerated in paragraph (a) above shall no longer be subject to the tax on wholesalers, distributors, or dealers herein provided for. (c) On exporters, and on manufacturers, millers, producers, wholesalers, distributors. Dealers of essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates prescribed under subsections (a), (b), and (d) of this Article; (1) Rice and Corn; (2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and agricultural marine, and fresh water products, whether in their original state or not; (3) Cooking oil and cooking gas; (4) Laundry soap, detergents, and medicine; (5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs; (6) Poultry feeds and other animal feeds; (7) School supplies; and (8) Cement Amount of Gross Sales/Receipts Tax Per Annum For the Preceding Calendar Year : Less than 10,000.00 90.75 10,000.00 or more but less than 15,000.00 121.00 15,000.00 or more but less than 20,000.00 166.10 20,000.00 or more but less than 30,000.00 242.00 30,000.00 or more but less than 40,000.00 363.00 40,000.00 or more but less than 50,000.00 453.20 50,000.00 or more but less than 75,000.00 726.00 75,000.00 or more but less than 100,000.00 907.50 100,000.00 or more but less than 150,000.00 1,210.00 150,000.00 or more but less than 200,000.00 1,512.50 200,000.00 or more but less than 300,000.00 2,117.50 300,000.00 or more but less than 500,000.00 3,025.00 500,000.00 or more but less than 750,000.00 4,400.00 750,000.00 or more but less than 1,000,000.00 5,500.00 1,000,000.00 or more but less than 2,000,000.00 7,562.50 2,000,000.00 or more but less than 3,000,000.00 9,075.00 3,000,000.00 or more but less than 4,000,000.00 10,890.00 4,000,000.00 or more but less than 5,000,000.00 12,650.00 5,000,000.00 or more but less than 6,500,000.00 13,405.70 6,500,000.00 or more At a rate not exceeding Twenty and 63/100 of one percent (20.63%) of (1%) For purposes of this provision, the term exporters shall refer to those who are principally engaged in the business of exporting goods and merchandise, as well as manufacturers and producers whose goods or products are both sold domestically and abroad. The amount of export sales shall be excluded from the total sales and shall be subject to the rates not exceeding one half (1/2) of the rates prescribed under paragraphs (a), (b), and (d) of this Article. (d) On retailers of goods enumerated in (c) of this section. Gross Sales/Receipts for the Preceding Year Rate of Tax Per Annum 400,000.00 or less 1% In excess of 400,000.00 additional 1/2 of 1% The rate of two percent (2%) per annum shall be imposed on sales not exceeding Four Hundred Thousand Pesos (P400,000.00) while the rate of one percent (1%) per annum shall be imposed on sales in excess of the first Four Hundred Thousand Pesos (P400,000.00). However, barangays shall have the exclusive power to levy taxes on stores whose gross sales or receipts of the preceding calendar year does not exceed Thirty Thousand Pesos (P30,000.00) subject to existing laws and regulations. (e) On retailers of goods not enumerated in (c) of this section. Gross Sales/Receipts for the Preceding year Rate of Tax Per Annum 400,000.00 or less 2% In excess of 400,000.00 additional 1% (f) On contractors and other independent contractors in accordance with the following schedule. Gross Sales/Receipts for the Preceding Calendar Year Amount of Tax Per Annum Less than 5,000.00 30.25 5,000.00 or more but less than 10,000.00 67.76 10,000.00 or more but less than 15,000.00 114.95 15,000.00 or more but less than 20,000.00 181.50 20,000.00 or more but less than 30,000.00 302.50 30,000.00 or more but less than 40,000.00 423.50 40,000.00 or more but less than 50,000.00 605.00 50,000.00 or more but less than 75,000.00 968.00 75,000.00 or more but less than 100,000.00 1,452.00 100,000.00 or more but less than 150,000.00 2,178.00 150,000.00 or more but less than 200,000.00 2,904.00 200,000.00 or more but less than 250,000.00 3,993.00 250,000.00 or more but less than 300,000.00 5,082.00 300,000.00 or more but less than 400,000.00 6,776.00 400,000.00 or more but less than 500,000.00 9,075.00 500,000.00 or more but less than 750,000.00 10,175.00 750,000.00 or more but less than 1,000,000.00 11,275.00 1,000,000.00 or more but less than 2,000,000.00 12,650.00 2,000,000.00 or more At a rate not exceeding sixty five percent (65%) of one percent (1%) Provided, that in no case shall the tax on gross sales of P2,000,000.00 or more be less than P12,650.00. For purposes of this section, the tax on multi-year projects undertaken general engineering, general building, and specialty contractors shall initially be based on the total contract price, payable in equal annual installments within the project term. Upon completion of the project, the taxes shall be recomputed on the basis of the gross receipts for the preceding calendar years and the deficiency tax, if there be any, shall be collected as provided in this Code or the excess tax payment shall be refunded. In cases of projects completed within the year, the tax shall be based upon the contract price and shall be paid upon the issuance of the Mayor's Permit. (g) On banks and other financial institutions, at the rate of fifty percent of one percent (50% of 1%) of the gross receipts of the preceding calendar year derived from interest, commissions and discounts from lending activities, income from financial leasing, dividends, rentals on property, and profit from exchange or sale of property, insurance premium. All other income and receipts not herein enumerated shall be excluded in the computation of the tax. Local Finance Circular No. 2-07 Amending Sections 2 and 5 of Local Finance Circular No. 1-93 dated June 16, 1993 prescribing the guidelines governing the power of municipalities and cities to impose a Business tax on banks and other banking institutions pursuant to Section 143 (f), 150 and 151 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991 and its Implementing Rules and Regulations (IRR). Tax on the Gross Receipts of Banks and Banking Institutions (a) The tax on banks and banking institutions may be levied on their gross receipts for the preceding calendar year as follows: (1) By municipalities, at a rate not exceeding fifty percent (50%) of one percent (1%) of the gross receipts for the preceding calendar year; and (2) By cities including municipalities within the Metropolitan Manila Area, at a rate not exceeding seventy five (75%) of one percent (1%) of the gross receipts for the preceding calendar year. (b) For this purpose, gross receipts shall only include the following: (1) Interest for loans and discounts this represents interest earned and actually collected on loans and discounts. The following is a breakdown: (i) Discounts earned and actually collected in advance on bills discounted; (ii) Interest earned and actually collected on demand loan; (iii) Interest earned and actually collected on time loans, including the earned portions of interest collected in advance; (iv) Interest earned and actually collected on mortgage contracts receivables. (3) n Interest earned and actually collected on internal loans (4) Rental of property this represents the following rental income: (i) Earned portion of rental collected in advance from lessees of safe deposit boxes; (ii) Rental earned and actually collected from lessees on bank premises and equipment. (5) Income earned and actually collected from acquired assets (6) Income from sale or exchange of assets and property (7) Cash dividends earned and received on equity investments (8) Bank commissions from lending activities (9) Income from component of rentals from financing leasing At the time of the annual payment of the tax due, the Head Office or branch of the shall submit to the LGU concerned notarized Joint Statement of Annual Income (Schedule of Annual Income) for the preceding calendar year, in accordance with a sample form hereto attached as "Annex A" which shall be signed by a designated officer of the Head Office and by the Branch Manage. (c) All other income and receipts of banks and banking institutions not otherwise enumerated above shall be excluded from the taxing authority of the LGU concerned, such as: (1) Interest earned under the expanded foreign currency deposit system. (2) Interest accumulated by lending institutions on mortgages insured under RA No. 580, as amended, otherwise known as Home Financing Act. (3) Receipts from filing fees, service and other administrative charges. Non-Separability of Banking Business Activities which are inherent, related, necessary or incidental to the banking business shall be treated as one business activity subject to the same tax thereon, which shall be computed on the basis of the combined gross receipts of all said banking activities, as defined above. In view thereof, the provisions of Article 242 of the IRR requiring a person or entity to get a separate mayor's permit for each business activity shall not apply to the banking activities as defined above. Procedures for the Enactment of Tax Ordinance (a) The tax on banks and banking institutions as provided herein may be imposed by a city or municipality only through an appropriate ordinance enacted by the Sangguniang Panglungsod or Sangguniang Bayan, as the case may be. Such ordinance shall be enacted and approved in accordance with Articles 107, 108, 275 and 276 of the IRR. (b) Pursuant to the procedures on the conduct of public hearings as prescribed in Article 276 (b) of the IRR, the Sanggunians concerned shall cause the sending of written notices of public hearings for proposed ordinances to the branch manager or the highest officer of the Head Office of affected banks and banking institutions within their territorial jurisdictions. (c) Any tax ordinance which does not comply with the above provisions shall be deemed null and void. Enforcement of such ordinance shall be a ground for disciplinary action against the officials or employees responsible therefor as provided for in Article 280 of the IRR. Situs of the Tax For the purposes of collection of the tax, the following shall apply (a) All transactions filed with or negotiated in the branch shall be recorded in said branch and the gross receipts derived from said transactions shall be taxable by the city or municipality where such branch is located. This rule shall be applied to: (1) Transactions negotiated with and approved by the branch manager under his authority; or (2) Transactions filed and negotiated in the branch but being beyond the approving authority of the branch manager, are forwarded to the Head Office for final approval; (3) Transaction where the stated address in the loan application of the borrower is the city or the municipality where the Bank has a branch, in which case the Head Office upon approval of the loan shall credit the transaction to the Bank Branch. (b) The gross receipts derived from transactions made by the Head Office, except gross receipts recorded in the branches, shall be taxable by the city or municipality where said office is located. (c) In case there is a transfer or relocation of the Head office or of any branch to another city or municipality, the bank shall give due notice of such transfer or relocation to the chief executives of the cities or municipalities concerned within fifteen days after such transfer or relocation is effected. Time of Payment The tax on banks due and accruing to the LGU's shall be payable within the first twenty days of January or of each subsequent quarter, as the case may be, unless otherwise fixed in the corresponding local tax ordinance. Examination of Books of Accounts and Pertinent Records (a) The Treasurer of the LGU concerned or through any of his deputies duly authorized in writing may examine the books of accounts and other pertinent records of banks in order to ascertain, assess and collect the correct amount of tax due. (b) The exemption may be made during regular office hours not often than once a year for every tax period which shall be limited to verifying the summary of transactions contained in the prescribed form (see "Annex A") submitted by the bank upon which the declaration of gross receipts for the preceding calendar year has been based and the tax paid thereon. Such examination shall be certified by the examining official which certification shall be made of record in the books of accounts of the bank examined. Repealing Clause All rules, regulations, orders and/or circulars which are contrary to, or inconsistent with the provisions of this circular are hereby repealed or modified accordingly. (Form attached should be filled up by the bank) (h) On other businesses hereunder enumerated: 1. Cafes, cafeterias, ice cream and other refreshment parlors, restaurants, soda fountain bars, carinderias or food caterers 2. Amusement places, including places wherein customers thereof actively participate without making bets or wagers, including but not limited to night clubs, or day clubs, cocktail lounges, cabarets or dance halls, karaoke bars, skating rinks, bath houses, swimming pools, exclusive clubs such as country and sports clubs, resorts and other similar places, billiard and pool tables, bowling alleys, circuses, carnivals, merry-go-rounds, roller coasters, ferris wheels, swings, shooting galleries, and other similar contrivances, theaters and cinema houses, boxing stadia, race tracks, cockpits and other similar establishments 3. Commission agents 4. Lessors, dealers, brokers of real estate 5. On travel agencies and travel agents 6. On boarding houses, pension houses, motels, apartments, apartelles, and condominiums 7. Subdivision owners/Private Cemeteries and Memorial Parks 8. Privately-owned markets 9. Hospitals, medical clinics, dental clinics, therapeutic clinics, medical laboratories, dental laboratories 10. Operators of Cable Network System 11. Operators of computer services establishment 13. General consultancy services 14. All other similar activities consisting essentially of the sales of services for a fee Gross Sales/Receipts for the Preceding Calendar Year Amount of Tax Per Annum Less than 5,000.00 30.25 5,000.00 or more but less than 10,000.00 67.76 10,000.00 or more but less than 15,000.00 114.95 15,000.00 or more but less than 20,000.00 181.50 20,000.00 or more but less than 30,000.00 302.50 30,000.00 or more but less than 40,000.00 423.50 40,000.00 or more but less than 50,000.00 605.00 50,000.00 or more but less than 75,000.00 968.00 75,000.00 or more but less than 100,000.00 1,452.00 100,000.00 or more but less than 150,000.00 2,178.00 150,000.00 or more but less than 200,000.00 2,904.00 200,000.00 or more but less than 250,000.00 3,993.00 250,000.00 or more but less than 300,000.00 5,082.00 300,000.00 or more but less than 400,000.00 6,776.00 400,000.00 or more but less than 500,000.00 9,075.00 500,000.00 or more but less than 750,000.00 10,175.00 750,000.00 or more but less than 1,000,000.00 11,275.00 1,000,000.00 or more but less than 2,000,000.00 12,650.00 2,000,000.00 or more At a rate not exceeding sixty five percent (65%) of one percent (1%) Provided, that in no case shall the tax on gross sales of P2,000,000.00 or more be less than P12,650.00. (i) On peddlers engaged in the sale of any merchandise or article of commerce, at the rate of (not exceeding P100.00) per peddler annually. Delivery trucks, vans or vehicles used by manufacturers, producers, wholesalers, dealers or retailers enumerated under Section 141 of R.A. 7160 shall be exempt from the peddlers tax herein imposed. The tax herein imposed shall be payable within the first twenty (20) days of January. An individual who will start to peddle merchandise or articles of commerce after January 20 shall pay the full amount of the tax before engaging in such activity. (j) On operators of public utility vehicles maintaining booking office, terminal, or waiting station for the purpose of carrying passengers from this municipality under a certificate of public convenience and necessity or similar franchises: Air-conditioned buses P3,000.00 per unit Buses without air conditioning P2,000.00 per unit "Mini" buses P1,000.00 per unit Jeepneys/Fieras/Tamaraws P500.00 per unit Taxis P500.00 per unit" SECTION 2. Section 3b.02 (a) of Municipal Ordinance No. 14-006 Series of 2014, is hereby amended to read as follows: "Section 3B.02. Imposition of Fees. There is hereby levied a Mayor's Permit and annual fixed tax in the operation of cockpit as follows: a) From the owner/operator/licensees of the cockpit: 1. Application filing fee P1,000.00 2. Annual cockpit permit fee P15,000.00 3. Annual fixed tax P10,000.00 4. Tax on cockpit promoter a. Tax per Ordinary Cockfight 20 per fight b. Tax per cockfight during "pintakasi "or "concierto" 25 per fight c. Two percent (2%) on gate receipts to be paid to the Mun. Treasurer or his duly authorized representative after every cockfighting day." SECTION 3. Repealing Clause . All local ordinances, rules and regulation or part thereof that are inconsistent with the provisions of this ordinance are hereby repealed or modified accordingly. SECTION 4. Effectivity . This Ordinance shall take effect upon approval. UNANIMOUSLY ADOPTED. CERTIFIED CORRECT: (SGD.) JOVITO P. PUNZALAN SB Secretary ATTESTED: (SGD.) HON. MANUEL N. MADDELA JR. Municipal Vice Mayor & Presiding Officer APPROVED: (SGD.) HON. CONCEPTION A. ZARATE Municipal Mayor Date: ________ n Note from the Publisher: Copied verbatim from the official copy. Missing Item 2.