An Ordinance Adopting and Ratifying the Provisions of Executive Order No. 2013-062 for the Immediate Implementation of Section 5.01 of Tax Ordinance No. 012, Series of 1992, as Amended, as a Compounded Tax Increase and All Other Acts Related Thereto

July 17, 2017 Excerpts from the minutes of the 42nd Regular Session of the 7th City Council of Valenzuela held on July 17, 2017 at 2:52 P.M. at the City Council's Session Hall, 3rd Floor, Legislative Building, Valenzuela City Hall, Karuhatan, Valenzuela City, Metropolitan Manila. VALENZUELA CITY ORDINANCE NO. 372-17 AN ORDINANCE ADOPTING AND RATIFYING THE PROVISIONS OF EXECUTIVE ORDER NO. 2013-062 FOR THE IMMEDIATE IMPLEMENTATION OF SECTION 5.01 OF TAX ORDINANCENO.012, SERIES OF 1992, AS AMENDED, AS A COMPOUNDED TAX INCREASE AND ALL OTHER ACTS RELATED THERETO Authored by: Coun. Marlon Paulo C. Alejandrino, Coun. Kimberly Ann D.V. Galang, Coun. Antonio R. Espiritu, Coun. Rovin Andrew M. Feliciano, Coun. Jennifer Pingree-Esplana, Coun. Ricardo Ricarr C. Enriquez, Coun. Ramon L. Encarnacion, Coun. Crissha M. Pineda, Coun. Lailanie P. Nolasco, Coun. Kristian Rome T. Sy and Coun. Fernando C. Francisco WHEREAS , Section 129 of Republic Act No. 7160 otherwise known as the Local Government Code of 1991, provides that, "each local government unit shall exercise its power to create its own sources of revenue and to levy taxes, fees and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall accrue exclusively to the local government units"; WHEREAS , resultantly, Tax Ordinance No. 012, Series of 1992 of the City of Valenzuela, was passed into law to serve as the Ordinance providing for a Revenue Code of the City of Valenzuela, where it was still a municipality; WHEREAS , Section 5.01 of Tax Ordinance No. 012-1992 provides that: "Section 5.01. Escalation Clause. All taxes due and prescribed under Section 5, shall increase ten percent (10%) annually beginning January 1, 1994 to December 31, 1997." WHEREAS , Resolution No. 471, Series of 1997 subsequently provided for the prolonging of the implementation of a ten percent (10%) annual increase in the business tax for another year or until 1998; WHEREAS , the implementation of taxes provided under Tax Ordinance No. 02-1992 has been bases on a basic increase concept instead of a compounded increase concept; WHEREAS , in accordance with the provisions of Section 5.01 of the Tax Ordinance No. 012, Series of 1992, as amended, there is a need to correct the application of the latter tax provision under the compounded increase concept since the implementation of Section 5.01 as a compounding increase is justified under the said Tax Ordinance rather than a just basic increase; WHEREAS , cities under Section 151 of the Local Government Code are even allowed to levy rates of tax that exceed the maximum rates allowed for provinces and municipalities by not more than fifty percent (50%) except the rates of professional and amusement taxes which the City Government has not resorted to since its creation as a city; WHEREAS , by the authorities vested in the City Mayor pursuant to Section 455.2.iii. of the LGC which provides that the City Mayor shall issue such executive orders for the faithful and appropriate enforcement and execution of laws and ordinances, Executive Order No. 2013-062 was issued for the immediate implementation of Section 5.01 of Tax Ordinance No. 012, Series of 1992, as amended, as compounding increase rather than just as a basic increase, the same being justified under the said Tax Ordinance. NOW, THEREFORE , be it RESOLVED , as it is hereby RESOLVED by the Sangguniang Panlungsod of Valenzuela City to adopt and ratify the provision of Executive Order No. 2013-062 issued by the Honorable City Mayor Rexlon T. Gatchalian and all other acts related thereto, relative to the immediate implementation of Section 5.01 of Tax Ordinance No. 012, Series of 1992, as amended, as a compounding increase rather than just as a basic increase, the same being justified under the said Tax Ordinance. CAIHTE ENACTED. JULY 17, 2017, VALENZUELA CITY, METROPOLITAN MANILA. (SGD.) HON. KIMBERLY ANN DV. GALANG Councilor Majority Floor Leader HON. ROSALIE ESTEBAN-CAYCO Councilor Minority Floor Leader (SGD.) HON. MARLON PAULO C. ALEJANDRINO Councilor Asst. Majority Floor Leader (SGD.) HON. ANTONIO R. ESPIRITU Councilor (SGD.) HON. CRISSHA M. PINEDA Councilor (SGD.) HON. ROVIN ANDREW M. FELICIANO Councilor (SGD.) HON. LAILANIE P. NOLASCO Councilor HON. JENNIFER PINGREE-ESPLANA Councilor (SGD.) HON. KRISTIAN ROME T. SY Councilor (SGD.) HON. RICARDO RICARR C. ENRIQUEZ Councilor (SGD.) HON. MARIA CECILIA V. MAYO Councilor (SGD.) HON. RAMON L. ENCARNACION Councilor (SGD.) HON. FERNANDO C. FRANCISCO Councilor (President, League of Barangays) ATTESTED: (SGD.) FLAVIO C. DIAZ Secretary CERTIFIED CORRECT: (SGD.) HON. LORENA NATIVIDAD-BORJA City Vice Mayor Presiding Officer APPROVED: (SGD.) HON. REXLON T. GATCHALIAN City Mayor Date Signed: ________