REPUBLIC ACT No. 4497
AN ACT AMENDING SECTION TWO OF REPUBLIC ACT TWENTY-TWO HUNDRED SIXTY-FOUR, OTHERWISE KNOWN AS THE AUTONOMY ACT OF NINETEEN FIFTY-NINE.
Section 1. Section two of Republic Act Numbered Twenty-two hundred sixty-four is amended to read as follows:
"Sec. 2. Taxation. Any provision of law to the contrary notwithstanding, all chartered cities, municipalities and municipal districts shall have authority to imposed municipal license taxes or fees upon persons engaged in any occupation or business, or exercising privileges in chartered cities, municipalities or municipal districts by requiring them to secure licenses at rates fixed by the municipal board or city council of the city, the municipal council of the municipality, or the municipal district council of the municipal district; to collect fees and charges for service rendered by the city, municipality or municipal district; to regulate and impose reasonable fees for services rendered in connection with any business, profession or occupation being conducted within the city, municipality or municipal district and otherwise to levy for public purposes, just and uniform taxes,...
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Republic Acts
AN ACT AMENDING SECTION TWO OF REPUBLIC ACT TWENTY-TWO HUNDRED SIXTY-FOUR
Republic Act No. 4497
Summary of Republic Act No. 4497
Taxation Authority of Local Government Units (LGUs)
- Chartered cities, municipalities, and municipal districts have the authority to:
• Impose municipal license taxes or fees on persons engaged in occupations or businesses within their jurisdiction, at rates fixed by their respective councils or boards. (Section 2)
• Collect fees and charges for services rendered by the LGU. (Section 2)
• Regulate and impose reasonable fees for services rendered in connection with any business, profession, or occupation conducted within their jurisdiction. (Section 2)
• Levy just and uniform taxes, licenses, or fees for public purposes. (Section 2)
Limitations on Taxation Authority of LGUs
- Municipalities and municipal districts cannot:
• Impose any percentage tax on sales or other taxes based on sales, except for gasoline taxes under the National Internal Revenue Code. (Section 2, Proviso 1)
• Impose taxes on articles subject to specific tax under the National Internal Revenue Code, except for gasoline. (Section 2, Proviso 1)
Prohibited Taxes and Fees for LGUs
- LGUs cannot levy or impose the following taxes or fees:
• Residence tax. (Section 2(a))
• Documentary stamp tax. (Section 2(b))
• Taxes on the business of publishing newspapers, magazines, reviews, or bulletins with fixed subscription and sale prices, not primarily for advertising. (Section 2(c))
• Taxes on persons operating waterworks, irrigation, and other public utilities, except electric light, heat, and power. (Section 2(d))
• Taxes on forest products and forest concessions. (Section 2(e))
• Taxes on estates, inheritances, gifts, legacies, and other acquisitions mortis causa. (Section 2(f))
• Taxes on income of any kind. (Section 2(g))
• Taxes or fees for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for driving. (Section 2(h))
• Customs duties, registration, wharfage on wharves owned by the national government, tonnage, and all other kinds of customs fees, charges, and dues. (Section 2(i))
• Taxes of any kind on banks, insurance companies, and persons paying franchise tax. (Section 2(j))
• Taxes on premiums paid by owners of property who obtain insurance directly with foreign insurance companies. (Section 2(k))
• Taxes, fees, or levies of any kind that impose a burden on exports of Philippine finished, manufactured, or processed products and products of Philippine cottage industries. (Section 2(l))
Effectivity and Suspension of Tax Ordinances
- A tax ordinance shall go into effect on the 15th day after its passage, unless the ordinance provides otherwise. (Section 2)
- The Secretary of Finance has the authority to suspend the effectivity of any ordinance within 120 days after its passage if, in their opinion, the tax or fee levied or imposed is unjust, excessive, oppressive, or confiscatory. (Section 2)
- If the Secretary of Finance exercises this authority, the effectivity of such ordinance shall be suspended. (Section 2)
- In such an event, the municipal board, city council, municipal council, or municipal district council may appeal the decision of the Secretary of Finance to the court, during which the tax levied shall be considered as paid under protest. (Section 2)
Repealing Clause and Effectivity
- All laws, executive orders, administrative orders, ordinances, rules, or regulations inconsistent with any provisions of this Act are repealed or modified accordingly. (Section 2)
- This Act shall take effect upon its approval. (Section 3)
Taxation Authority of Local Government Units (LGUs)
- Chartered cities, municipalities, and municipal districts have the authority to:
• Impose municipal license taxes or fees on persons engaged in occupations or businesses within their jurisdiction, at rates fixed by their respective councils or boards. (Section 2)
• Collect fees and charges for services rendered by the LGU. (Section 2)
• Regulate and impose reasonable fees for services rendered in connection with any business, profession, or occupation conducted within their jurisdiction. (Section 2)
• Levy just and uniform taxes, licenses, or fees for public purposes. (Section 2)
Limitations on Taxation Authority of LGUs
- Municipalities and municipal districts cannot:
• Impose any percentage tax on sales or other taxes based on sales, except for gasoline taxes under the National Internal Revenue Code. (Section 2, Proviso 1)
• Impose taxes on articles subject to specific tax under the National Internal Revenue Code, except for gasoline. (Section 2, Proviso 1)
Prohibited Taxes and Fees for LGUs
- LGUs cannot levy or impose the following taxes or fees:
• Residence tax. (Section 2(a))
• Documentary stamp tax. (Section 2(b))
• Taxes on the business of publishing newspapers, magazines, reviews, or bulletins with fixed subscription and sale prices, not primarily for advertising. (Section 2(c))
• Taxes on persons operating waterworks, irrigation, and other public utilities, except electric light, heat, and power. (Section 2(d))
• Taxes on forest products and forest concessions. (Section 2(e))
• Taxes on estates, inheritances, gifts, legacies, and other acquisitions mortis causa. (Section 2(f))
• Taxes on income of any kind. (Section 2(g))
• Taxes or fees for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for driving. (Section 2(h))
• Customs duties, registration, wharfage on wharves owned by the national government, tonnage, and all other kinds of customs fees, charges, and dues. (Section 2(i))
• Taxes of any kind on banks, insurance companies, and persons paying franchise tax. (Section 2(j))
• Taxes on premiums paid by owners of property who obtain insurance directly with foreign insurance companies. (Section 2(k))
• Taxes, fees, or levies of any kind that impose a burden on exports of Philippine finished, manufactured, or processed products and products of Philippine cottage industries. (Section 2(l))
Effectivity and Suspension of Tax Ordinances
- A tax ordinance shall go into effect on the 15th day after its passage, unless the ordinance provides otherwise. (Section 2)
- The Secretary of Finance has the authority to suspend the effectivity of any ordinance within 120 days after its passage if, in their opinion, the tax or fee levied or imposed is unjust, excessive, oppressive, or confiscatory. (Section 2)
- If the Secretary of Finance exercises this authority, the effectivity of such ordinance shall be suspended. (Section 2)
- In such an event, the municipal board, city council, municipal council, or municipal district council may appeal the decision of the Secretary of Finance to the court, during which the tax levied shall be considered as paid under protest. (Section 2)
Repealing Clause and Effectivity
- All laws, executive orders, administrative orders, ordinances, rules, or regulations inconsistent with any provisions of this Act are repealed or modified accordingly. (Section 2)
- This Act shall take effect upon its approval. (Section 3)