Types Of Local Income And Revenue Of Lgu.docx

Chapter 1 Types of Local Income and Revenue of LGU Income LGU

rev and receipts power to create source of revenue subject to LGC and local autonomy No inherent power to tax Power to impose by Sanggunian thru ordinance

Fund Principles (PUPEL) a. Uniform Equality and uniformity-tax at same rate of same class taxable articles w/in ter. Juris., not in comparison w/ other units Uniformity-in geographical limitation, w/in territorial jurisdiction -operates in same force and effect so no infringement on equality Inequality-singling out Uniformity ≠equality -does not require identity/equality always, or negate authority to classify the object of taxation b. a. Equitable, ability to pay -Equity, fairness -ability, Not absolute, not hard/fast rule, progressive system b. Public purpose c. Reasonable d. Not contrary c. Collection and imposition shall in no case be let to any private person -entrusting does not destroy public purpose d. Inure solely to the benefit and disposition of levying LGU only, uop -NGAS CANNOT SHARE WITH LOCAL TAXES EVEN IN PROVIDED BY LAW e. Progressive system VALID REVENUE ORDINANCE Procedural Pre-publication- w/in 10 days of filing, publish for 3 consec in local circ. In 4 conspic. Sanggunian- to send Written notice to int. parties Public hearing Initial- not earlier than 10 days from sending notice/last day publication w/ever is later Preparation of Minutes

Approval Ordinance of SPd/SPb LCE- affix sig. each page if approved, may veto only once w/in 15 days-province w/in 10 days-municipality otherwise deemed approved as if he signed it sanggunian may override the veto by 2/3 Ordinance SPbrngy Approval of majority and signed by the PB Publication -w/in 10 days, publish full for 3 consec local circ or 2 conspic if no local circ -general cir if with penal provision of province or posting to all conspic municipalities if no gen circ Substantive Requirements Not contrary, fair, not partial/discriminatory, restrain trade, consisitent w/public policy, reasonable Effectivity If complied procedural and substantive Furnishing of Copies Furnish the LT for public dissemination Review Municipal Ord SPd/SPb

SPl

Submit => w/in 3 days after approval

Review or transmit to=> w/in 30 days after receipt (presumed consistent w/ law if no action)

Prov. Attty/prosecutor Inform SPl w.in 10 days after receipt

-SPl may declare invalid ordinance partly/whole, -review is nature of legislative check and limited to the legality and if SPd/b exceed powers -pending review, rev ordinance continues in effect -declaration of invalidity=disapproval -Governor to affix his sig for approval Review Brgy Ordinance SPbrgy Submit => w/in 10 days after enactment

SPd/SPb Review w/in 30 days after receipt (deemed approved if no action)

--if invalid, suspend ordinance until revision is effected

Appeal a. Sec of Justice -limit to const. or legality -appeal w/in 30 days -decide w/in 60 days, no suspension of ord -dec of Sec can be appealed to Pres. “Principle of exhaustion of remedies” b. Court -w/in 30 days after receipt of decision/lapse of 60 days Penalties of Violation of tax ordinance LGU -fine: 1,000-5,000, -imprisonment: 1mo-6mos -can be both imposed at discretion of court Sbrgy Fine:100-1,000 Admin disciplinary action to officials for enforcement after due notice of disapproval TAXING POWER

Transfer of RP ownership Printing/Publication Franchise Sand, gravel, quarry Professional Amusement Annual fixed tax delivery truck/van in certain prod RPT Addt’l levy SEF Ad valorem Idle lands Special levy- idle Land Service fees and charges Public utility charges Toll fees Business tax Community tax Business/occupation fees Sealing and Licensing of Weights/Measures Fees Fishery rentals fees

Province Municipal Cities ity ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸ ̸

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-Municipalities of MM not exceed 50% of rate on business tax -RPT, MM fix rate not exceed 2% of assessed real value -Cities may exceed rate by not more than 50% except prof and amusement

LGU POWER TO LEVY OTHER TAX AND CHARGES -even not specified in provision or NIRC, provided reasonable…etc, public hearing, ordinance TAXING POWER OF BARANGAY a. Taxes- fixed bus.establishment=1% of gross sales of preceding year: -Cities=of 50k or less -Mun= 30k or less b. Service Fee on brgy property or service facilities c. Brgy clearance-application w/in 7 days from filing if not, city/municipality may issue license/permit d. other charges (see book)