Amending Article A, Chapter 2 and Articles A and B, Chapter 3 of Tax Ordinance No. 2009-002

November 29, 2011 Regular Session of the Sangguniang Panlungsod of the City of San Fernando on the 29th Day of November 2011. PRESENT: Hon. Vice Mayor Hermenegildo A. Gualberto Hon. Councilor Alfredo Pablo R. Ortega Hon. Councilor Jonathan Justo A. Orros Hon. Councilor Joseph Bernard D. Valero Hon. Councilor Joseph M. de Guzman Hon. Councilor Andre H. Dacanay Hon. Councilor Florentino G. Flores, Jr. Hon. Councilor Marylin R. Jucar Hon. Councilor Lolita G. Dyquiangco Hon. Councilor Ramon F. Laudencia Hon. Councilor Wilfredo P. Ordoo Hon. Member Ramon C. Ortega ABSENT: Hon. Councilor Francisco Paolo P. Ortega V Hon. Councilor Rodolfo M. Abat On sick leave Hon. Member Ramon Guio A. Ortega, Jr. SAN FERNANDO CITY TAX ORDINANCE NO. 01-11 AN ORDINANCE AMENDING ARTICLE A OF CHAPTER 2 AND ARTICLES A AND B OF CHAPTER 3 OF TAX ORDINANCE NO. 2009-002, OTHERWISE KNOWN AS THE 2010 REVENUE CODE OF THE CITY OF SAN FERNANDO "Be it ordained by the Sangguniang Panlungsod in session duly assembled that: SECTION 1. Section 2A.01 on Business Tax of Chapter 2 is hereby amended to read as follows: CHAPTER 2 Taxes ARTICLE A Business Tax Section 2A.01. Imposition of tax. There shall be levied from every business or establishment which operates, conducts, establishes or maintains a business, trade or activity for profit within the City, an annual tax based on the gross sales/receipts of the preceding calendar year. A. On 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 shall be in accordance with the following schedule: Gross Sales/Receipts Tax Less than P10,000.00 P165.00 P10,000.00 or more but less than P15,000.00 220.00 15,000.00 or more but less than 20,000.00 302.00 20,000.00 or more but less than 30,000.00 440.00 30,000.00 or more but less than 40,000.00 660.00 40,000.00 or more but less than 50,000.00 825.00 50,000.00 or more but less than 75,000.00 1,320.00 75,000.00 or more but less than 100,000.00 1,650.00 100,000.00 or more but less than 150,000.00 2,200.00 150,000.00 or more but less than 200,000.00 2,750.00 200,000.00 or more but less than 300,000.00 3,850.00 300,000.00 or more but less than 500,000.00 5,500.00 500,000.00 or mare but less than 750,000.00 8,000.00 750,000.00 or more but less than 1,000,000.00 10,000.00 1,000,000.00 or more but less than 2,000,000.00 13,750.00 2,000,000.00 or more but less than 3,000,000.00 16,500.00 3,000,000.00 or more but less than 4,000,000.00 19,800.00 4,000,000.00 or more but less than 5,000,000.00 23,100.00 5,000,000.00 or more but less than 6,500,000.00 24,375.00 6,500,000.00 or more at a rate not exceeding thirty seven and a half percent (37 1/2%) 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 in paragraph (C) of this Section. ADCIca B. On wholesalers, distributors or dealers: Gross Sales/Receipts Less than P1,000.00 P18.00 P1,000.00 or more but less than P2,000.00 33.00 2,000.00 or more but less than 3,000.00 50.00 3,000.00 or more but less than 4,000.00 72.00 4,000.00 or more but less than 5,000.00 100.00 5,000.00 or more but less than 6,000.00 121.00 6,000.00 or more but less than 7,000.00 143.00 7,000.00 or more but less than 8,000.00 165.00 8,000.00 or more but less than 10,000.00 187.00 10,000.00 or more but less than 15,000.00 220.00 15,000.00 or more but less than 20,000.00 275.00 20,000.00 or more but less than 30,000.00 330.00 30,000.00 or more but less than 40,000.00 440.00 40,000.00 or more but less than 50,000.00 660.00 50,000.00 or more but less than 75,000.00 990.00 75,000.00 or more but less than 100,000.00 1,320.00 100,000.00 or more but less than 150,000.00 1,870.00 150,000.00 or more but less than 200,000.00 2,420.00 200,000.00 or more but less than 300,000.00 3,300.00 300,000.00 or more but less than 500,000.00 4,400.00 500,000.00 or more but less than 750,000.00 6,600.00 750,000.00 or more but less than 1,000,000.00 8,800.00 1,000,000.00 or more but less than 2,000,000.00 10,000.00 2,000,000.00 or more at a rate not exceeding fifty percent (50%) of one percent (1%) The businesses enumerated in paragraph (A) of this Section shall no longer be subject to the tax on wholesalers, distributors or dealers provided under this paragraph. C. On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates prescribed in paragraphs (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 other 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. For purposes of this Article, 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 all retailers whose gross, receipts per annum are more than P50,000.00. Gross Sales/Receipts Per Annum P400,000.00 or less 2% More than P400,000.00 1% E. On contractors and other individual contractors and businesses rendering services as follows: general engineering, general building; proprietors or operators of arrastre; proprietors or operators of barber shops, beauty parlors; business agents; cinematographic film owners; lessors; commercial and immigration brokers; courier services; proprietors or operators of dockyards; proprietors or operators of dry-cleaning or dyeing establishments; engraving, plating, and plastic lamination establishments; filling, demolition and salvage works contractors; forwarding establishments; funeral parlors; proprietors or operators of furniture shops; persons engaged in the installation of water system, gas or electric light, heat or power; proprietors or operators of massage clinics, sauna, Turkish and Swedish baths; plumbers; messengerial services; proprietors or operators of mine drilling apparatus; proprietors or operators of establishments or lots for parking purposes; photographic studios; establishments for planning or surfacing and recutting of lumber; printers, bookbinders, and lithographers; private detective or watchman agencies; publishers except those engaged in the publication or printing of any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which are not devoted principally to the publication of advertisements; proprietors/owners of shops for the repair of any kind of mechanical and electrical devices, instruments, apparatus, or furniture and shoes by machine or any mechanical contrivance; proprietors or operators of establishments for repairing, repainting, upholstering, washing or greasing of vehicles; heavy equipment; sawmills under contract to saw or cut logs belonging to others; sign painters; slenderizing and body-building saloons and similar establishments; proprietors or operators of smelting plants; smiths; steam laundries and laundries using washing machines; stevedoring; proprietors or operators of tailor shops, dress shops, milliners and hatters; proprietors or operators of establishments for vulcanizing, recapping and battery charging; warehousing; and other establishments rendering services not enumerated or taxed under any section of this Article shall be in accordance with the following schedule: ACTIHa Less than P5,000.00 P27.50 P5,000.00 or more but less than P10,000.00 61.60 10,000.00 or more but less than 15,000.00 104.50 15,000.00 or more but less than 20,000.00 165.00 20,000.00 or more but less than 30,000.00 275.00 30,000.00 or more but less than 40,000.00 385.00 40,000.00 or more but less than 50,000.00 550.00 50,000.00 or more but less than 75,000.00 880.00 75,000.00 or more but less than 100,000.00 1,320.00 100,000.00 or more but less than 150,000.00 1,980.00 150,000.00 or more but less than 200,000.00 2,640.00 200,000.00 or more but less than 250,000.00 3,630.00 250,000.00 or more but less than 300,000.00 4,620.00 300,000.00 or more but less than 400,000.00 6,160.00 400,000.00 or more but less than 500,000.00 8,250.00 500,000.00 or more but less than 750,000.00 9,250.00 750,000.00 or more but less than 1,000,000.00 10,250.00 1,000,000.00 or more but less than 2,000,000.00 11,500.00 2,000,000.00 or more at a rate not exceeding fifty percent (50%) of one percent (1%) F. On banks and other financial institutions, at a rate not exceeding fifty percent (50%) of one percent (1%) on 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. . . . SECTION 2. Article A on Business Tax of Chapter 2 is further amended to include the following provisions: ARTICLE K Special Tax on Economic Zones Section 2K.01. Imposition of tax. There shall be levied two percent (2%) special tax from the five percent (5%) special tax on gross income earned by business establishments operating within the Poro Point Special Economic Freeport Zone (PPSEFZ), in lieu of all taxes except the real property tax, which shall be directly remitted by the business establishments to the Office of the City Treasurer pursuant to Republic Act 8748, an Act amending Republic Act No. 7916, otherwise known as the "Special Economic Zone Act of 1995". Section 2K.02. Time of Remittance/Payment. The special tax shall be paid/remitted every year not later than the due dates stipulated hereunder. 1st quarter May 31 2nd quarter August 31 3rd quarter November 30 4th quarter April 15 of the subsequent taxable year based on the final adjustments as reflected in the income tax return covering the entire taxable year. Should the last day of payment fall on a Saturday or Sunday, the due date shall be the following Monday. Should the last day of payment fall on a holiday, the due date shall be the immediate following working day. SECTION 3. Section 3A.10 of Article A on Business Permit of Chapter 3 is hereby amended to read as follows: Section 3A.10. Joint Inspection Team. There shall be a Joint Inspection Team composed of the following who shall jointly conduct inspections: A. Permits and Licensing Officer Chairperson B. City Health Officer Vice Chairperson C. City Treasurer Member D. City Planning and Development Officer Member E. City Engineer Member F. Fire Chief Member The functions of the joint inspection team shall be as follows: A. Inspect establishments of new business permit applicants. B. Monitor adherence to local ordinances. C. Prepare and consolidate inspection reports to be submitted to the Office of the City Mayor on a regular basis. D. Recommend the issuance of new, renewal or non-renewal of business permit. SECTION 4. Section 3B.05 of Article B on Individual Work Permit of Chapter 3 is hereby amended to read as follows: Section 3B.05. Time of Payment/Schedule of Application for Individual Work Permit. The fee prescribed in this Article shall be paid to the City Treasurer before the issuance of the permit. The permit is valid up to December 31. In case of renewal, the same shall be renewed from October to December. Application for new Individual Work Permit shall be accepted on any working day from January 21 to December 31. SECTION 5. Repealing Clause. All existing ordinances which are inconsistent herewith are hereby repealed or modified accordingly. SECTION 6. Separability Clause. If for any reason, any provision of this Ordinance is declared unconstitutional or invalid, the other provisions hereof not so affected shall continue in full force and effect. HCSAIa SECTION 7. Effectivity. This Ordinance shall take effect upon approval. APPROVED." Certification I hereby certify to the correctness of the above quoted Tax Ordinance enacted on Third Reading on November 29, 2011. (SGD.) MARGARET I. FAROLAN Secretary to the Sanggunian ATTESTED: (SGD.) HERMENEGILDO A. GUALBERTO Vice Mayor APPROVED this 5th day of December 2011. (SGD.) PABLO C. ORTEGA Mayor