City of Baguio v De Leon
GR No. L-24756, October 31, 1968
FACTS:
The City of Baguio passed a license fee on any person, entity or corporation doing business in the City. The ordinance
sourced its authority from RA 329, thereby amending the city charter empowering it to fix the license fee and regulate businesses, trades and occupation as may be established in the City. De Leon was assessed for P50 annual fee it being shown that he was engaged in property rental and deriving income therefrom. The latter assailed the validity of the ordinance arguing that it is ultra vires for there is no statutory authority which expressly grants the City of Baguio to levy such tax and that there it imposed double taxation and violates the requirement of uniformity.
ISSUE:
Is the ordinance valid?
RULING:
Yes. First, RA 329 was enacted amending Section 2553 of the Revised Administrative Code empowering the City Council not only to impose a license fee but to levy a tax for purposes of revenue, thus the ordinance cannot be considered ultra vires for there is more than ample statutory for the enactment thereof.
Second, an argument against double taxation may not be invoked where one tax is imposed by the state and the other imposed by the City.
Third, violation of uniformity is out of place it being widely recognized that there is nothing inherently obnoxious in the requirement that license fees of taxes be enacted with respect to the same occupation, calling or activity by both the state and the political subdivision thereof.
GR No. L-24756, October 31, 1968
FACTS:
The City of Baguio passed a license fee on any person, entity or corporation doing business in the City. The ordinance
sourced its authority from RA 329, thereby amending the city charter empowering it to fix the license fee and regulate businesses, trades and occupation as may be established in the City. De Leon was assessed for P50 annual fee it being shown that he was engaged in property rental and deriving income therefrom. The latter assailed the validity of the ordinance arguing that it is ultra vires for there is no statutory authority which expressly grants the City of Baguio to levy such tax and that there it imposed double taxation and violates the requirement of uniformity.
ISSUE:
Is the ordinance valid?
RULING:
Yes. First, RA 329 was enacted amending Section 2553 of the Revised Administrative Code empowering the City Council not only to impose a license fee but to levy a tax for purposes of revenue, thus the ordinance cannot be considered ultra vires for there is more than ample statutory for the enactment thereof.
Second, an argument against double taxation may not be invoked where one tax is imposed by the state and the other imposed by the City.
Third, violation of uniformity is out of place it being widely recognized that there is nothing inherently obnoxious in the requirement that license fees of taxes be enacted with respect to the same occupation, calling or activity by both the state and the political subdivision thereof.
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