Amending Section 93 (Franchise Tax) of the Revenue Code of the Municipality of Taguig

November 22, 2006 TAGUIG CITY ORDINANCE NO. 082-06 AN ORDINANCE ADOPTING AND AMENDING CHAPTER 19 SECTION 93 FRANCHISE TAX OF THE MUNICIPAL ORDINANCE NO. 24, SERIES OF 1993 OTHERWISE KNOWN AS "THE REVENUE CODE OF THE MUNICIPALITY OF TAGUIG" Sponsored by: Coun. Glen N. San Pedro Coun. Arnel M. Cerafica Coun. Henry M. Dueas, Jr. Coun. Allan Paul C. Cruz Coun. Ricardo J. Jordan Coun. Elpidio M. Javier Coun. Aurelio Paulo R. Bartolome Coun. Delio J. Santos Coun. Marisse Balina-Eron Coun. Baltazar T. Mariategue Liga Pres. Conrado C. Aquino, Sr. SK Fed. Pres. Jeffrey B. Morales WHEREAS, the Local Government Code of 1991 (R.A. 7160) under Article 2 Section 142 empowers municipalities to levy taxes, fees and charges not otherwise levied by provinces. Moreover, under Sec. 151, ibid., cities may levy taxes, fees and charges which the province or municipality may impose; WHEREAS, Ordinances No. 24, Series of 1993 otherwise known as "THE REVENUE CODE OF MUNICIPALITY OF TAGUIG" was ratified and approved in 1993 based on the country's then economic, social and political status; 2007tax2ndrel WHEREAS, the existing Taguig Revenue Code had, since then, been implemented and followed without undergoing any updating or modification despite the changes in the economic, social and political milieu that the country has undergone for the past thirteen years (13) years; WHEREAS, since the Municipality of Taguig was converted into a highly urbanized city by virtue of Republic Act 8487 upon its approval in 2004, there arose a compelling need to assess and update the Municipality's Revenue Code and adopt adequate and appropriate rates in taxes, fees, charges and other impositions that it is authorized to impose and levy based on its new status. NOW, THEREFORE, BE IT ORDAINED BY THE SANGGUNIANG PANLUNGSOD OF TAGUIG IN SESSION ASSEMBLED: SECTION 1. Title. This Ordinance shall form part of the "THE REVENUE CODE OF THE CITY OF TAGUIG SERIES OF 2006." SECTION 2. Declaration of Policies. The following policies are hereby adopted in pursuance of this ordinance: 2.1 It is here declared the policy of the City of Taguig to impose or levy taxes, fees, charges, and other impositions which are equitable, progressive, and, as far as practicable, based on the taxpayers' ability to pay; 2.2 Further, it is likewise the policy of the City of Taguig that the assessment and collection of taxes shall at all times endeavor to be efficient and fair, with a minimum, if any, of red tape in implementation through a relatively simple process for the mutual benefit and understanding of the city government and its people. SECTION 3. Scope. This Code shall govern the imposition of Franchise Taxes within the jurisdiction of the City of Taguig. Existing assessment and collection of taxes shall prevail and shall apply for fees and charges not included in this regulation. SECTION 4. Imposition of Franchise Tax. There is hereby imposed a tax on business enjoying a franchise, at a rate of fifty percent (50%) of one percent (1%) of the gross annual receipts, which shall include both cash sales and sales on account realized during the preceding calendar year within the territorial limits of the city. In the case of a newly started business, the initial tax for the quarter in which the business starts to operate shall be one-twentieth (1/20) of one percent (1%) of the capital investment. However, in succeeding quarter of quarters, in case the business opens before the last quarter of the year, the tax shall be based on the gross sales/receipts for the preceding quarter. 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 any fraction thereof, as provided herein. The capital investment to be used as basis of the tax of a newly started business as herein provided shall be determined in the following manner. (a) If the principal office of the business is located in the city, the paid-up capital stated in the articles of corporation in case of corporations, or in any similar document in case of other types of business organization, shall be considered as capital investment. (b) In case of a branch or sales office located in the city which commences business operations during the same year as the principal office but which is located in another locality, the paid-up capital referred in paragraph (a) shall mean the amount of the capital investment made for the said branch or sales office. (c) Where the newly started business is a branch or sales office commencing operations at a year later than that of the principal office, capital investment shall mean the total funds invested in the branch or sales office. SECTION 5. Exemptions. The term "businesses enjoying franchise" shall not include holders of certificates of public convenience for the operation of public vehicles for the reason that such certificates are not considered as franchises. SECTION 6. Time of Payment. The tax imposed in this Article shall be due and payable in quarterly installments to the City Treasurer, within the first twenty (20) days following each quarter. In the case of a newly-started business, the tax shall be paid before the business starts to operate. SECTION 7. Separability Clause. If for any reason, any provision, section or part of this code is declared not valid by a court of competent jurisdiction or suspended or revoked by the Office of the President, such judgment shall not affect nor impair the remaining provisions, sections or parts which shall continue to be in force and effect. SECTION 8. Applicability Clause. Pertinent provisions of existing laws and ordinances shall govern all other matters relating to the imposition in this code. SECTION 9. Repealing Clause. All orders, ordinances and resolutions in conflict or inconsistent with any provisions of this ordinance are hereby repealed or modified accordingly. SECTION 10. Effectivity Clause. This Ordinance shall take effect on January 1, 2007 following its full and complete publication in a newspaper of local circulation. APPROVED, this 22nd day of November, 2006 at Taguig City Attested by: (SGD.) HON. AURELIO PAULO R. BARTOLOME Temporary Presiding Officer Certified by: (SGD.) ATTY. DANIEL B. VALDEZ SP Council Secretary Approved by: (SGD.) HON. SIGFRIDO R. TIGA City Mayor