Real Property Tax Incentives for Commercial Classification for Home-Based, Micro and Small Enterprise

December 9, 2019 Excerpts from the Minutes of the 21st Regular Session of the 8th City Council of Valenzuela Held on December 09, 2019 at 3:30 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. 631-19 AN ORDINANCE GRANTING REAL PROPERTY TAX RELIEF FOR COMMERCIAL MICRO SMALL MEDIUM ENTERPRISES Authored by: Coun. WALTER MAGNUM D. DELA CRUZ Co-Authored by: Vice Mayor LORENA NATIVIDAD-BORJA, Coun. ROVIN ANDREW M. FELICIANO, Coun. RICARDO RICARR C. ENRIQUEZ, Coun. RAMON L. ENCARNACION, Coun. JENNIFER P. PINGREE, Coun. JOSEPH WILLIAM D. LEE, Coun. CRISSHA M. PINEDA, Coun. KIMBERLY ANN GALANG-TIANGCO, Coun. KRISTIAN ROME T. SY, Coun. NIA SHIELA B. LOPEZ, Coun. LOUIE P. NOLASCO, Coun. CHIQUI MARIE N. CARREON, Coun. BIENVENIDO S. BARTOLOME, JR. and Coun. EXEQUIEL D. SERRANO. WHEREAS , Section 16 of Republic Act (R.A.) No. 7160, otherwise known as the Local Government Code of 1991, provides that every local government unit shall exercise power essential to the promotion of the general welfare within their respective territorial jurisdiction, ensure and support, among other thing, promotion of health and safety, enhance the right of the people to a balanced ecology, and preserve the comfort and convenience of their inhabitants; WHEREAS , the Constitution mandates that the government shall promote the quality of life of the people. Towards this end, Section 16 of Republic Act (R.A.) No. 7160, otherwise known as the Local Government Code of 1991 provides that the local government units shall pursue undertakings to enhance economic prosperity; WHEREAS , R.A. No. 6977, as amended by R.A. No. 8289 and further amended by R.A. 9501 encourage promotion, development and assistance of Small and Medium Enterprises and recognizing their potential for more employment generation and economic growth; WHEREAS , it is the goal of the City Government to see the possibility of workforce expansion and economic growth from micro and small enterprise that will eventually open doors and encourage opening of more commercial establishment; WHEREAS , realizing the importance of giving tax incentives and reliefs particularly our home-based business and micro small enterprise will help the businesses cope up with the competition and thrive in tough economic times; WHEREAS , Section 192, R.A. No. 7160 allows the local government units, through ordinances duly approved, to grant tax incentives and reliefs under such terms and conditions as they may deem necessary; WHEREAS , to further provide economic development for the people of Valenzuela it is important to offer a start-up incentives and taking steps to create a more "business-friendly" environment. CAIHTE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF VALENZUELA CITY IN REGULAR SESSION ASSEMBLED: SECTION 1. Title . This Ordinance shall be known as the Real Property Tax Incentives for Commercial Classification for Home-Based, Micro and Small Enterprise. SECTION 2. Home Based Business, Small and Micro Enterprise . Any commercial classification of business activity or enterprise whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business is situated must have value falling under the following categories: a.) Home Based Business P10,000.00 or less b.) Micro Enterprises Not more than P3,000,000.00 c.) Small Enterprises P3,000,001-P15,000,000.00 SECTION 3. Tax Incentive . Tax relief are granted to encourage establishment and operation of home based, small and micro enterprises by exempting real property owners with commercial classification of property from Real Property General Revision effective 2020, except for the commercial land, building/improvements and machineries of the following businesses/undertakings: a.) Properties with building area of 1,000 sq.m. and more and with capital investment or gross sale/income of P5,000,000.00 and above whose line of business is a lessor and malls/shopping building or centers/office building ; b.) Hospitals; c. Business paying franchise tax; and d.) Banks. SECTION 4. Implementing Guidelines . This Ordinance is self-executory upon due publication. However, the City Mayor or his deputized authority is hereby authorized to issue additional guidelines and directives to effectively implement the mandate of this Ordinance, if found necessary. SECTION 5. Separability Clause . If, for any reasons, any part or provision of this Ordinance shall be held unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall be in full force and effect. SECTION 6. Repealing Clause . All previous Ordinance and rules/regulations which are inconsistent with the provisions of this ordinance are hereby deemed modified or repealed accordingly. SECTION 7. Effectivity . This ordinance shall become effective upon completion of its publication for three (3) consecutive days in a newspaper of general circulation and posted in at least three (3) conspicuous places in Valenzuela City pursuant to Sections 59 and 188 of the Local Government Code of 1991, as amended (RA No. 7160). DETACa ENACTED DECEMBER 9, 2019, VALENZUELA CITY, METRO MANILA. (SGD.) HON. ROVIN ANDREW M. FELICIANO Councilor Majority Floor Leader (SGD.) HON. CRISSHA M. PINEDA Councilor Minority Floor Leader (SGD.) HON. KIMBERLY ANN D.V. GALANG-TIANGCO Councilor Asst. Majority Floor Leader (SGD.) HON. RICARDO RICARR C. ENRIQUEZ Councilor Asst. Minority Floor Leader (SGD.) HON. RAMON L. ENCARNACION Councilor (SGD.) HON. KRISTIAN ROME T. SY Councilor ( SGD.) HON. JENNIFER PEREZ PINGREE Councilor (SGD.) HON. NIA SHIELA B. LOPEZ Councilor (SGD.) HON. JOSEPH WILLIAM D. LEE Councilor (SGD.) HON. LOUIE P. NOLASCO Councilor (SGD.) HON. WALTER MAGNUM D. DELA CRUZ Councilor (SGD.) HON. CHIQUI MARIE N. CARREON Councilor (SGD.) HON. BIENVENIDO S. BARTOLOME, JR. Councilor (President, League of Barangays) (SGD.) HON. EXEQUIEL D.J. SERRANO Councilor (President, Sangguniang Kabataan Federation) ATTESTED: (SGD.) ANTONIO R. ESPIRITU Secretary to the Sanggunian CERTIFIED CORRECT: (SGD.) HON. LORENA NATIVIDAD-BORJA City Vice Mayor Presiding Officer APPROVED: (SGD.) HON. REXLON T. GATCHALIAN City Mayor Date Signed: December 10, 2019