Publication of Tax Ordinance

POWER TO CREATE REVENUES EXERCISED THROUGH LGUS 

Each LGU has the power to: (Sec. 129, LGC) 

1.   Create its own sources of revenue; and 


2.   Levy taxes, fees, and charges subject to 
the provisions herein, consistent with the basic policy of local autonomy. 


3.   Such taxes, fees, and charges shall accrue exclusively to the LGUs 

PUBLICATION AS A MANDATORY REQUIREMENT

It is clear under Sec. 188 of R.A. No. 7160 and Art. 277 of its implementing rules that the requirement of publication is MANDATORY and leaves no choice. The use of the word "shall" in both provisions is imperative, operating to impose a duty that may be enforced (Coca- Cola Bottlers Phil., Inc. v. City of Manila, G.R. No. 156252, June 27, 2006) 

REASON FOR COMPLIANCE

Its essence is simply to inform the people and the entities who may likely be affected, of the existence of the tax measure. It bears emphasis, that, strict observance of the said procedural requirement is the only safeguard against any unjust and unreasonable exercise of the taxing powers by ensuring that the taxpayers are notified through publication of the existence of the measure, and are therefore able to voice out their views or objections to the said measure. For, after all, taxes are obligatory exactions or enforced contributions corollary to taking of property.

PROCEDURE FOR APPROVAL AND EFFECTIVITY OF TAX ORDINANCES 

1)   The procedure applicable to local government ordinances in general should be observed (Sec. 187, LGC). 

The following procedural details must be complied with: 

a.    Necessity of a quorum; 


b.   Submission for approval by the local chief 
executive; 


c.    The matter of veto and overriding the 
same; 


d.   Publication and effectivity (Secs. 54, 55, and 
59, LGC). 


2)   Public hearings are required before any local tax ordinance is enacted (Sec. 187, LGC).

3)   Within 10 days after their approval, publication in full for 3 consecutive days in a newspaper of general circulation. In the absence of such newspaper in the province, city or municipality, then the ordinance may be posted in at least two conspicuous and publicly accessible places (Sec. 188 & 189, LGC). 

WHEN AN ORDINANCE TAKES EFFECT 

In case the effectivity of any tax ordinance or revenue measure falls on any date other than the beginning of the quarter, the same shall be considered as falling at the beginning of the next ensuing quarter, and the taxes, fees, or charges due shall begin to accrue therefrom. 

TEST IN DETERMINING THE VALIDITY OF AN ORDINANCE 

1.   It must not contravene the Constitution or a statute


2.   It must not prohibit but may regulate trade


3.   It must not be discriminatory, unfair, unjust, confiscatory, unreasonable, and oppressive 

4.   It must be general and consistent with the national or public policy of the government (Ingles, 2018)