Exercise No.

3. Specific Tax Power

A. Provinces

1. Tax on transfer of real property ownership (Sec. 135, LGC)

2. Tax on business of printing and publication (Sec. 136)
3. Franchise Tax (Sec. 137)
4. Tax on sand, gravel and other quarry resources extracted from public land
(Sec. 138)
5. Professional Tax (Sec. 139)
6. Amusement Tax (Sec. 140)
7. Annual fixed tax for every delivery truck or van of manufacturers or
producers, wholesalers of dealers or retailers in certain products (Sec. 141)

B. Municipalities

Business Tax (Sec. 143)

1. On Manufactures, assemblers, re-packers, processors, brewers, distillers,

rectifiers, and compounders of liquors, distilled spirits, and wines or
manufacturers of any article of commerce of whatever kind or nature.
2. On wholesalers, distributors or dealers in any article of commerce of
whatever kind or nature.
3. On exporters, and on manufacturers, millers, producers, wholesalers,
distributors, dealers or retailers of essential commodities;
4. On retailers
5. On contractors and other independent contractors;
6. On banks and other financial institutions;
7. On peddlers engaged in the sale of any merchandise or article of commerce;
8. On any business, not otherwise specified in the preceding paragraphs, which
the Sanggunian concerned may deem proper total.

Municipal non-fees and charges

I. The municipality may impose and collect such reasonable fees and charges
on business and occupation except professional taxes reserved for provinces
(Sec. 147)
II. Fees for Sealing and Licensing of Weights and Measures (Sec. 148)
III. Fishery Rentals, Fees and Charges (Sec. 149)

C. Cities

Except as otherwise provided in the LGC, the city may levy the taxes, fees, and
charges which the province or municipality may impose (Sec. 151)

D. Barangays (Sec. 152)

 1. Taxes
2. Service fees or charges
3. Barangay Clearance
4. Reasonable fees and charges
a. Commercial breeding of fighting cocks, cockfights and cockpits
b. Places of recreation which charge admission fees
c. Billboards, signboards, neon signs and outdoor advertisement

4. Which LGU can impose

a. Real property tax Province, City, Municipality

b. Community tax City or Municipality
c. Professional tax Provinces, Cities
d. Amusement tax Provinces, Cities
e. Franchise tax Provinces, Cities
f. Business tax Municipalities, Cities

5. Common Revenue-Raising Powers

a. Reasonable fees and charges for services rendered (Sec. 153)

b. Public Utility charges for the operation of public utilities owned, operated
and maintained by the LGUs within their jurisdiction (Sec. 154)
c. Toll fees or charges for the use of any public road, pier or wharf, waterway,
bridge, ferry or telecommunication system funded and constructed by the
LGU concerned.

6. Situs under Sec. 150 (Business Tax)

a. With branch or sales office or warehouse where such branch or sales

outlet is located.
b. Where there is no branch, sales office or warehouse municipality where
the sale or transaction is made. The sale shall be duly recorded in the
principal office and the taxes due shall accrue and shall be paid to such
city or municipality
c. Where there is a factory, project office, plant or plantation in pursuit of
business:
The following sales allocation shall apply:
1. 30% of all sales recorded in the principal office taxable by the city
or municipality where the principal office is located
2. 70% of all sales recorded in the principal office taxable by the city
or municipality where the factory, project office , plant or plantation
is located; which shall be divided as follows:
i. 60% - city or municipality where the factory is located;
ii. 40% city or municipality where the plantation is
located.

Where there are two or more factories, project , offices, plants or

plantation, located in different localities, the 70% sales allocation
 mentioned above shall be prorated among the localities where the
factories, project offices, plants and plantation are located in
proportion to their respective volumes of production during the period
for which the tax is due.

d. Where sales are made by route trucks, vans or vehicles (Art 243[d], IRR of
the LGC)
i. Sale made in the locality where manufacturer, producer,
wholesaler, retailer or dealer has no branch, sales office or
warehouse, the sale is recorded in the branch, sales office or
warehouse tax due is to be paid to LGU where such branch,
sales office or warehouse is located.
ii. Sale made in the locality where manufacturer, producer,
wholesaler, retailer or dealer has no branch, sales office or
warehouse, the sale is recorded in the branch, sales office or
warehouse tax due is to be paid to LGU where such branch,
sales office or warehouse is located

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7. Liable to pay Community Tax

1. Individuals (Sec. 157)

2. Juridical persons (Sec. 158)
3. Exempted from paying (Sec. 158)

8. Situs of Community Tax

Sec. 160

9. Nature of Real Property Tax (DIAL UP)

1. Direct tax whose burden could not be shifted by the one who pays to
other persons,
2. Indivisible single obligation
3. Ad valorem tax based on the assessed value of the property
4. Local Tax
5. Imposed on the Use and not on the ownership
6. Progressive/proportionate in character depending to a certain extent on
the use and value of the property.

10. Considered as real property

Real property is in reference made to Art. 415 of the New Civil Code