Republic of the Philippines LAPU-LAPU CITY

City Legal Office

TO RE $ATE : : : FRANCISCO Y. LIMPANGUG Acting-City / SP Secretary Barangay Ordinance No. 2011-08-01 (Barangay !n-o"# Se%te&"er 2'( 2011

T)i* %ertain* to yo!r +etter dated Se%te&"er 1,( 2011 -)ere yo! re.erred to t)i* O..ice t)e enacted Barangay Ordinance No. 2011-0801 A33 o. Barangay !n-o" 2EN$ORS( entit+ed STORE /AN OR$0NANCE 9 01POS0N ARCA2A3A 0N T4E A1O5NT O6 T7O (P2.00# PESOS PER $A8 ON38 TO A1B53ANT O7NERS 70T40N ESTAB30S41ENT TERR0TOR0A3 O7NERS( 5N$ERTA:0N B5S0NESS T4E

;5R0S$0CT0ON O6 T4E BARAN A8 T4E CAP0TA3 O6 740C4 $O NOT E<CEE$ 606T8 T4O5SAN$ (P=0(000.00# PESOS> .or o!r co&&ent* and reco&&endation*. T)e Ordinance i&%o*ed an /ARCA2A3A> 1 in t)e a&o!nt o. P2.00 %e*o* %er day to a++ a&"!+ant ?endor*( *tore o-ner*( and e*ta"+i*)&ent o-ner* -)o*e ca%ita+ do not e@ceed P=0(000.00 %e*o* and !ndertaAing "!*ine**e* -it)in t)e territoria+ B!ri*diction o. t)e "arangay. 7it) d!e re*%ect to t)e Sangg!niang Pa&"arangay and P!nong Barangay concerned( Ordinance No. 2011-08-01 i* an ultra vires actC it i* "eyond t)e %o-er* granted to Barangay* a* %ro?ided in RA D1'0 ot)er-i*e Ano-n a* t)e 3oca+ o?ern&ent Code o. 1,,1 (3 C .or "re?ity#. Section 1=2 %ar (a# o. t)e 3 C %ro?ide*:

The alcabala or alcavala was a sales tax of up to fourteen percent, the most important royal tax imposed by Spain under the Antiguo Rgimen. t applied in Spain itself and in other dominions ruled by Spain. !http"##en.wi$ipedia.org#wi$i#Alcabala%

SEC. 152. Scope of Taxing Powers. - The barangays may levy taxes, fees, and charges, as provided in this Article, which shall exclusively accrue to them: (a) Taxes - On stores or retailers with fixed business establishments with gross sales or receipts of the preceding calendar year of ifty thousand pesos (!"#,###$##) or less, in the case of cities and Thirty thousand pesos (!%#,###$##) or less, in the case of municipalities, at a rate not exceeding one percent (&') on such gross sales or receipts$ ((mphasis supplied)

T)e *aid Ordinance *tretc)ed t)e ta@ation %o-er o. t)e "arangay to it* +i&it* -)en it i&%o*ed and +e?y t)e /ARCA2A3A> ta@ to a&"!+ant ?endor* -)o are -it) no .i@ed "!*ine** e*ta"+i*)&ent. T)e 3 C doe* not e&%o-er any "arangay to i&%o*e ta@e* on a&"!+ant ?endor*. A+*o( t)e o!trig)t i&%o*ition o. P2.00 %e*o* ta@ %er day ?io+ate* t)e 1E +i&it *et .ort) !nder Section 1=2 (a# o. t)e 3 C. To i++!*trate "y *i&%+e &at)e&atica+ co&%!tation( a *tore or retai+er -it) .i@ed "!*ine** e*ta"+i*)&ent* -it) gro** *a+e* or recei%t* o. t)e %receding ca+endar year o. 6i.ty t)o!*and %e*o* (P=0(000.00# or +e** can on+y "e +e?ied -it) ta@ at t)e &a@i&!& o. P=00.00 %e*o* (1E o. P=0(000.00# .or t)at year. 4o-e?er( i. co&%!ted "a*ed on t)e Ordinance( a *tore/retai+er t)at o%erate* in F'= day* in a year -it) gro** *a+e* recei%t* o. P=0(000.00 -i++ "e ta@ed an a&o!nt o. PDF0.00 %e*o* (P2.00 @ F'=# .or t)e -)o+e year. T)e ta@ d!e e@ceed* t)e 1E +i&it %ro?ided in t)e 3 C. 6!rt)er&ore( "y i&%o*ing ta@ on a&"!+ant ?endor*( not on+y t)e Barangay acted "eyond it* %o-er* "!t it a+*o condoned and +egiti&iGed t)e*e ?endor* -)o are o%erating -it)o!t t)e nece**ary 1ayorH* Per&it( aggra?ating to t)e %erennia+ %ro"+e& o. a&"!+ant ?ending and c+ogged *ide-a+A* in t)e City. 0n ?ie- o. t)e .oregoing t)i* O..ice t)ere.ore o%ined t)at Barangay Ordinance No. 2011-08-01 i* ?oid .or "eing re%!gnant to t)e genera+ +a- and reco&&end* it* di*a%%ro?a+ "y t)e Sangg!niang Pan+!ng*od. Ne?ert)e+e**( t)i* O..ice !rge t)e Barangay concerned to o"*er?e t)e 1E +i&itation %ro?ided in Section 1=2 (a# o. t)e 3 C in

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t)eir Barangay Ta@ Ordinance and to enco!rage a++ ?endor* to *ec!re Barangay C+earance a* a %re-reI!i*ite .or t)eir cond!ct o. "!*ine** -it)in t)e BarangayH* B!ri*diction and *!"*eI!ent a%%+ication o. t)e nece**ary 1ayorH* Per&it .ro& t)e City 3a%!-3a%! City( P)i+i%%ine*.

Pre%ared "y:

Ethelbert B. Ouano 3ega+ O..icer 000 A%%ro?ed "y:

Roldan M. Pepito Acting( A**i*tant City Attorney

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