Batangas City Revenue Code of 2009

Copyright 2015 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2014 1

December 16, 2008 January 1, 2009

THE BATANGAS CITY REVENUE CODE OF 2009

SANGGUNIANG PANLUNGSOD

ORDINANCE NO. 19 S. 2008

AN ORDINANCE ADOPTING THE BATANGAS CITY REVENUE CODE OF 2009

WHEREAS, the Local Government Code of 1991 has empowered the City ofBatangas to enact, amend or revise the revenue code;

WHEREAS, the City Government of Batangas for the last seven (7) years hasnot amended nor revised the Batangas City Tax Code of 2002, although under Section191 of the Local Government Code, the City is empowered to revise the rates of taxestherein contained every five (5) years;

WHEREAS, due to the numerous demands for the delivery of basic services asprovided in Section 17 of the Local Government Code, it has become imperative toenact a new revenue code;

NOW, THEREFORE, by virtue of the powers vested by law, BE ITORDAINED by the Sangguniang Panlungsod in session assembled, that

TITLE I

Introductory and Administrative Provisions and Disposition of Funds

CHAPTER I

Introductory Provisions


SECTION 1. Title. This Ordinance shall be known as "THEBATANGAS CITY REVENUE CODE OF 2009".

SECTION 2. Scope of Ordinance. This Ordinance shall apply to allkinds, types or classes of business, trade, occupation or profession on which taxes,fees, charges and other impositions are authorized to be levied, imposed and collectedby the provisions of REPUBLIC ACT 7160, otherwise known as The LocalGovernment Code of 1991 and other applicable laws.

SECTION 3. Definitions. For purposes of this Code, the followingdefinitions shall apply.

(a) "Agricultural Product" includes the yield of the soil, such as corn, rice, rye,hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, andtheir by-products; ordinary salt; all kinds of fish, poultry, and livestock andanimal products, whether in their original form or not. The phrase, "whether intheir original form or not" refers to the transformation of said products by thefarmer, fisherman, producer or owner through the application of process topreserve or otherwise to prepare said products for the market such as freezing,fermenting, drying, salting, smoking or stripping for purposes of preserving orotherwise preparing said products for the market;

(b) "Amusement" is pleasurable diversion and entertainment. It is synonymous torelaxation, avocation, pastime or fun;

(c) "Amusement places" include theaters, cinemas, concert halls, circuses, bowlingalleys, billiard halls, cockpits and other places of amusement where one seeksadmission to entertain oneself by seeing or viewing the show or performance;

(d) "Banks and other financial institutions" shall refer to all kinds of banks andshall include non-bank financial intermediaries, lending investors, finance andinvestment companies, pawnshops, money shops, insurance companies, stockmarkets, stock brokers, and dealers in securities, and foreign exchange, asdefined in applicable laws, rules and regulations;

(e) "Beer House" or "Beer Garden" means an establishment where beer isprimarily served to customers and employs no hostess or guest relations officer(GRO) who acts as a partner or companion to customers by sitting andconversing, dancing, singing, eating or drinking with them;


(f) "Business" means trade or commercial activity regularly engaged in as meansof livelihood or with a view to profit;

(g) "Business Agent" includes all persons who act as agents of others in thetransaction of business with any public officer, as well as those who conductcollecting, advertising, employment or private detective agencies;

(h) "Business Center" is a place for business transactions, a place for transactingbusiness as well as collecting, advertising, purchasing a product or service;

(i) "Business Process Outsourcing Center" is a place where non-core aspects ofcertain businesses are performed by a contracted party. Such services mayinclude telemarketing, call handling, transcription, secretarial support,customer support, directory assistance, information technology support,bookkeeping and other similar activities;

(j) "Capital Investment" is the capital which a person employs in any undertaking,or which he contributes to the capital of a partnership, corporation or anyjuridical entity or association in a particular taxing jurisdiction;

(k) "Charges" refer to pecuniary liability, as rents or fees against persons orproperty;

(l) "Chemical Substance" means an organic or inorganic substance of a particularmolecular identity excluding radioactive materials and includes any element oruncombined chemical, and any combination of such substances, or any mixtureof two or more chemical substances;

(m) "Club House" means a place where members of an organization or fraternalsociety engage in indoor activities;

(n) "Contractor" includes person, natural or juridical, not subject to professionaltax, whose activity consists essentially of the sale of all kinds of services for afee, regardless of whether or not the performance of the service calls for theexercise or use of the physical or mental faculties of such contractor or hisemployees. As used in this Section, the term "contractor" shall include generalengineering, building and specialty contractors as defined in applicable laws;persons engaged in filling, demolition, and salvage works; persons engaged inthe installation of water, gas, electric light, heat or power system; proprietors oroperators of (1) dockyards; (2) smelting plants, engraving, plating, plastic


lamination shops, (3) establishments for repairing, repainting, upholstering,washing and greasing of vehicles and other heavy equipment; (4) vulcanizing,recapping and battery charging shops; (5) sawmills, furniture shops and sashfactory; (6) welding, body building and repair, motor work and metal craftshops; (7) establishments for the repair of any kind of electrical or mechanicalinstruments or devices; (8) parking lots or buildings; (9) tailor shops, dressshops, milliners and hatter shops; (10) beauty shops, barber shops, massageclinics; (11) sauna, Turkish, and Swedish baths, slenderizing and body buildingsalons and similar establishments; (12) photographic studios; (13) catering andfood handling shops, hotels, motels, lodging houses, dormitories, boardinghouses, pension inns, funeral parlors; (14) arrastre, stevedoring, warehousingand forwarding establishments, dealers and lessors of vehicles and heavyequipment; lessors and dealers of real estate; insurance agents andunderwriters; master plumbers, smiths, house and sign painters; book binders,lithographers, publishers, except those engaged in the publication or printing ofany newspaper, magazine, review or bulletin which appear at intervals withfixed prices for subscription and is not devoted principally to the publication ofadvertisement; business agents, proprietors of private detectives and watchmanagencies; owners, lessors, and distributors of cinematographic films, videos,cassettes and of similar materials; owners of learning institutions, privatecemeteries and memorial parks; operators of junk shops; insurance agents andowners of other businesses not enumerated anywhere in this Code:

(o) "Corporation" includes partnership, no matter how created or organized, jointstock companies, joint ventures, cuentas en participacion, associations, orinsurance companies but does not include general professional partnerships anda joint venture or consortium formed for the purpose of undertakingconstruction projects or engaging in petroleum, coal, geothermal, and otherenergy operations pursuant to an operating or consortium agreement under aservice contract with the government;

1. "General professional partnerships" are partnerships formed bypersons for the sole purpose of exercising their commonprofession, no part of their income of which is derived fromengaging in any other trade or industry.

2. The term "resident foreign corporation" when applied to acorporation means a foreign corporation not organized under thelaws of the Philippines but engaged in trade or business within the


Philippines.

(p) "Computer center" refers to an establishment or business engaged in the use ofoffice computers for rentals, copying, printing, typing, and other activities;

(q) "Countryside and Barangay Business Enterprise" refers to any business entity,association, or cooperative registered under the provision of Republic ActNumber Sixty Eight Hundred Ten (RA 6810), and Republic Act No. 9178,otherwise known as Barangay Micro-Business Enterprises (BMBEs) Act of2002;

(r) "Day Club" means a commercial establishment operating at daytime featuringdancing with the use of recorded or live music, employs hostesses or guestrelations officers (GRO's) where food and alcoholic drinks may be served;

(s) "Dealer" means one whose business is to buy and sell merchandise, goods andchattels as a merchant. He stands immediately between the producers ormanufacturers and the consumers and depends for his profit, not upon the laborhe bestows upon his commodities, but upon the skill and foresight with whichhe watches the market;

(t) "Fee" is a charge fixed by law or ordinance for the regulation and inspection ofa business or activity;

(u) "Franchise" is a right or privilege affected with public interest which isconferred upon private person or corporation under such terms and conditionsas the government and its political subdivisions may impose in the interest ofthe public welfare, security and safety;

(v) "Gay Bar" means an establishment usually open at nighttime where the mainattractions are performances for gays or homosexuals.

(w) "Gross Sales or Receipts" include the total amount of money or its equivalentrepresenting the contract price, compensation or service fee, including theamount charged or materials supplied with the services and deposits or advancepayments actually or constructively received during the taxable quarter for theservices performed or to be performed by another person excluding discounts ifdeterminable at the time of sales, sales return, excise tax and value added tax(VAT);

(x) "Hazardous substances" are substances which present either as: (a) short-term


acute hazards such as acute toxicity by ingestion, inhalation or skin absorption,corrosivity or other skin or eye contact hazard or the risk of fire or explosion;or (b) long-term environmental hazards, including chronic toxicity uponrepeated exposure; carcinogenicity, which in some case result from acuteexposure but with a long latent period; resistance to detoxification process suchas biodegradation, the potential to pollute underground or surface waters, oraesthetically objectionable properties such as offensive odors;

(y) "Hazardous wastes" are substances that exhibit any of the followingcharacteristics: ignitability, corrosivity, reactivity, or toxicity and that arewithout any safe commercial, industrial, agricultural or economic usage and areshipped, transported for treatment, dumping or disposal into or in transitthrough any part of the territory of the Philippines. "Hazardous waste" shallalso refer to by-products, side products, process residues, spent reaction media,contaminated plant or equipment or other substances from manufacturingoperations and as consumer discards of manufactured products which presentunreasonable risk and/or injury to health and safety and to the environment;

(z) "Holding company" is a controlling company that has one or more subsidiariesand confines its activities primarily to their management;

(aa) "Hostess" means a woman who entertains socially or acts as a partner orcompanion to male patrons in a dance hall or bar;

(bb) "Information Technology" is the collective term for various technologiesinvolved in the processing and transmitting of information, which includecomputing, multimedia, telecommunications, microelectronics and theirinterdependencies;

The term Information Technology (IT) offering services both in thedomestic and international market shall include IT project management,applications systems development, applications service providers, webdevelopment management, database design and development, computernetworking and data communications, software development and application(includes programming and adaptation of system software, middleware,application software, for business, media, e-commerce, education,entertainment and all other programs interdependent of this technology) andInformation Communications Technology (ICT) facilitiesoperations/management.


Information Communications Technology (ICT) refers to supportactivities such as research and development of high-value added ICT productsand services, education and manpower development in ICT, incubation of ITservice providers, provision of internet services and community access. Thesesupport activities also include content development for multi-media or internetprocesses, knowledge-based and computer-enabled support services likeengineering and architectural design services and consultancies, businessprocess outsourcing like e-commerce, and all other future programs andactivities interdependent of this technology.

(cc) "Investment Company and Investment House" Investment companies areentities primarily engaged in investing, reinventing or trading in securities. Aninvestment house is an enterprise engaged in guaranteed underwriting ofsecurities of another person or enterprise, including securities of governmentand its instrumentalities;

(dd) "Karaoke Bar" means an establishment wherein food, liquor and beverages areserved and customers participate using karaoke machines or similar equipment;

(ee) "Lodging House" means a building where persons are supplied with andcharged for sleeping accommodations only;

(ff) "Manufacturer" includes every person who, by physical or chemical process,alters the exterior texture or form or inner substance of any raw materials ormanufactured or partially manufactured product in such manner as to prepare itfor special use or uses to which it would not have been put in its originalcondition, or who by any such process alters the quality of any such rawmaterials or manufactured or partially manufactured product so as to reduce itto marketable shape or prepare it for any of the use of industry or who by suchprocess combines any such raw materials or manufactured or partiallymanufactured product with other materials or products of the same or differentkinds and in such manner that the finished product of such process ormanufacture can be put to a special use or uses to which such raw materials ormanufactured or partially manufactured products in their original conditioncould not have been put and who in addition alters such raw materials ormanufactured or partially manufactured product or combines the same toproduce such finished products for the purpose of their sale or distribution toothers and not for his own use or consumption.


(gg) "Marginal Farmer or Fisherman" refers to an individual engaged insubsistence farming or fishing which shall be limited to the sale or barter orexchange of products produced by himself or his immediate family;

(hh) "Massage clinic" means an establishment where one enters to have a massagefor therapeutic and other hygienic purposes;

(ii) "Motor vehicle" means any vehicle propelled by any power other than muscularpower using the public roads but excluding road rollers, trolley cars, streetsweepers, sprinklers, lawn mowers, bulldozers, graders, forklifts, amphibioustrucks and crane, if not used on public roads, vehicles which run only on railsand trackers, tractors, trailers and traction engines of all kinds used exclusivelyfor agricultural proposes;

(jj) "Municipal waters" include not only streams, lakes, and tidal waters within themunicipality, not being the subject of private ownership and not comprisedwithin the national parks, public forests, timberlands, forest reserves andfishery reserves, but also marine waters included between two lines drawnperpendicularly to the general coastline from points where the boundary linesof the municipality touch the sea at low tide and a third line parallel with thegeneral coastline and fifteen (15) kilometers from it. Where the twomunicipalities are so situated on the opposite shores that there is less thanfifteen (15) kilometers of marine waters between them, the third line shall beequally distant from the opposite shores of the respective municipalities.

(kk) "Night Club" means an establishment open during the night, usually servingliquors and foods, providing shows, live entertainment, music and space fordancing, employing hostesses, guest relations officers (GRO's), ago-godancers, singers or female entertainers;

(ll) "Occupation" means one's regular business or employment or an activity whichprincipally takes up one's times, thought and energies. It includes any calling,business, trade, profession or vocation;

(mm) "Operator" includes the owner, manager, administrator or any person in chargeor responsible for the operation of a business establishment or undertaking;

(nn) "Peddler" means any person, who either for himself or on commission, travelsfrom place to place, and sells his goods or offers to sell and deliver the same.Whether a peddler is a wholesale peddler or retail peddler of a particular


commodity shall be determined from the definition of wholesale or retail dealeras provided in this Section;

(oo) "Person" means any natural or juridical being susceptible of rights andobligations or being subject of legal relations;

(pp) "Pollution" means any alteration of the physical, chemical, biologicalproperties of any water, air and/or land resources, or any discharge thereto ofany liquid, gaseous or solid waste, or any production of unnecessary noise, orany emission of objectionable odor, as will or is likely to create or render suchwater, air, and/or land resources harmful, detrimental or injurious to publichealth, safety or welfare, or which will adversely affect their utilization fordomestic, industrial, agricultural, recreational or other legitimate purposes;

(qq) "Profession" means a calling which requires the passing of an appropriategovernment board or bar examination, such as the practice of law, medicine,public accountancy, engineering, etc.;

(rr) "Pub House" means an establishment licensed for the sale and consumption ofbeer and

other alcoholic beverages on the premises. Food and refreshments may also beserved;

(ss) "Residents" refer to natural persons who have their habitual residence in theprovince, city or municipality where they exercise their civil rights and fulfilltheir civil obligations and to juridical persons for which the law or any otherprovisions creating or recognizing them fixes their residence in a particularprovince, city or municipality. In the absence of any such law, juridical personsare residents of the province, city or municipality where they have their legalresidence or principal place of business or where they conduct their business oroccupation;

(tt) "Retail" means a sale where the purchaser buys the commodity for his ownconsumption, irrespective of the quantity of the commodity sold which includessale from eateries and restaurants and other establishments of similar nature;

(uu) "Tiangge" refers to a store or outlet that does not have a fixed location andnormally is set up in places like shopping malls, hospitals, office buildings,


hotels, villages or subdivisions, churches, parks, sidewalks, streets, and otherpublic places, for the purpose of selling a variety of goods/services for a shortduration of time or on special events;

(vv) "Vessel" includes every type of boat, craft or other artificial contrivance used orcapable of being used as a means of transportation on water;

(ww) "Video Game Machine Shop or Center" refers to an establishment intended foramusement or playing games with the use of computers, video game machines,and other devices through the purchase of tickets, tokens, cards and others;

(xx) "Videoke Bar, Folk House, Karaoke Bar, Music Lounge" mean establishmentswherein food, liquor and beverages are served and customers participate usingvideoke/karaoke machines, video cassettes and/or video machines;

(yy) "Wharfage" means a fee assessed against the cargo of a vessel engaged inforeign or domestic trade based on quantity, weight or measure received and/ordischarged by a vessel; and

(zz) "Wholesale" means a sale where the purchaser buys or imports thecommodities for re-sale to persons other than the end-user regardless of thequantity of the transaction.

The definitions of terms in the National Building Code, Fire Code, theSanitation Code and other related laws of the Philippines are hereby adopted in thisCode.

CHAPTER II

Administrative Provisions

SECTION 4. Duty of the City Treasurer to Collect. It shall be the dutyof the City Treasurer to collect either by himself or through his deputies, all taxes,charges, fees, and all other levies in this Ordinance.

SECTION 5. License/Permit Necessary. (a) Every type or class ofbusiness and every separate or distinct place of business must be provided with acorresponding license/permit issued by the Office of the City Mayor. One type ofbusiness, profession, occupation, trade or calling does not become tax exempt merelyby being conducted or operated in the residence or abode of the proprietor or manageror in the same place with some other business, profession, occupation for which


license/permit issued by the Office of the City Mayor had already been paid.

(b) It shall be unlawful for any person to open or begin any business, trade, oroccupation or practice any profession or calling for which taxes, fees, charges, orrentals are authorized to be levied or collected under this Ordinance or to continue theoperation of the same for the ensuing year without first paying the taxes, fees, andother charges imposed hereunder.

(c) Any tax, fee or charge paid in any locality outside Batangas City for anybusiness, occupation, trade, profession or calling which is required to be paid inBatangas City under the provisions of this Ordinance shall be invalid within thejurisdiction of the City and the same shall not be used as a license/permit to operateany business in Batangas City.

SECTION 6. City Mayor's Permit. The City Mayor shall not issue anypermit to operate any new business or continue the operation of existing ones for theensuing calendar year unless the owner, operator, proprietor and/or manager thereoffirst submits the following:

(a) A copy of the permit issued by the Office of the City Mayor for theprevious year in case of existing ones.

(b) A sworn statement on a form prescribed by the City Treasurerdeclaring the following information: (1) Name ofmanager/operator; (2) Total capital investment on the business; (3)Total gross receipts during the preceding year and such otherpertinent data which may from time to time be required.

(c) Clearance from the barangay where the business or activity islocated or conducted subject to the provisions of Section 152-C ofRA 7160 otherwise known as the Local Government Code of 1991,except for activities undertaken or implemented by the CityGovernment.

(d) Clearance from the City Treasurer that the unpaid taxes and feeshave been settled.

SECTION 7. Fixing Taxes and Manner of Payment. Except asotherwise provided in this Code, all city taxes are hereby fixed by year; providedhowever, that at the option of the taxpayer, the same may be paid in quarterly


installment in the manner and at the time prescribed in section 9 hereof.

SECTION 8. Accrual of Taxes. Unless otherwise provided in thisCode, all local taxes, fees, and charges shall accrue on the first (1st) day of January ofeach year. However, new taxes, fees, or charges or changes in the rates thereof, shallaccrue on the first (1st) day of the quarter next following the effectivity of theOrdinance imposing such new levies or rates.

SECTION 9. Time of Payment. Unless otherwise provided in thisCode, all local taxes, fees, or charges, shall be paid within the month of January or onthe first month of the subsequent quarter, as the case may be. The Sanggunianconcerned may, for justifiable reason or cause, extend the time for payment of suchtaxes, fees, or charges without surcharges or penalties, but only for a period notexceeding six (6) months.

SECTION 10. Surcharges and Penalties on Unpaid Taxes, Fees, andCharges. Unless otherwise provided in this Ordinance, a surcharge of twenty-five(25%) percent of the amount of taxes, fees, or charges not paid on time and an interestof two (2%) percent per month of the unpaid taxes, fees, or charges includingsurcharges shall be imposed thereon until such amount is fully paid but in no caseshall the total interest on the unpaid amount or portion thereof exceed thirty six (36)months.

SECTION 11. Interest on Other Unpaid Revenues. Where the amountof other revenue due except voluntary contribution or donation is not paid on the datefixed in this Ordinance or in the contract, expressed or implied, or upon theoccurrence of the event which has given rise to its collection, there shall be collectedas part of the amount an interest thereon at the rate of two percent per month from thedate it is due but in no case shall the total interest on the unpaid amount or a portionthereof exceed thirty six (36) months.

SECTION 12. Collection of Revenues by the City Treasurer. All taxes,fees, and charges shall be collected by the City Treasurer or his duly authorizedrepresentatives.

The City Treasurer may deputize the Barangay Treasurers to collect taxes orcharges wherein the barangays have a share of such taxes or fees. In case a bond isrequired for the purpose, the City Government shall pay the premiums thereof.

SECTION 13. Examination of Books of Accounts and Pertinent Records of


Businessmen by the City Treasurer. (a) The City Treasurer may, by himself orthrough any of his deputies duly authorized in writing, examine the books of accountsand other pertinent records of any person, partnership, corporation, or associationsubject to local taxes, fees, and charges in order to ascertain, assess and collect thecorrect amount of the tax, fee or charges. Such examination shall be made duringregular business hours, only once for every tax period, and shall be certified to by theexamining official. Such certificate shall be made of record in the books of accountsof the taxpayer examined.

(b) For this purpose, the City Treasurer or his duly authorized representativemay look into cash registers and other documents necessary for the examination.

(c) In case the examination is made by a deputy of the City Treasurer, thewritten authority of the deputy concerned shall specifically state the name, addressand the business of the taxpayer whose books, accounts and pertinent records are to beexamined, the date and place of such examination and the procedure to be followed inconducting the same.

(d) For this purpose, the record of the Revenue District Office of the Bureauof Internal Revenue shall be made available to the City Treasurer, his deputy or dulyauthorized representative.

SECTION 14. Non-Issuance or Revocation of Permit and Penalty forDestroying Order of Closure. (a) The City Mayor shall have the power to refuseissuance of, or revoke a permit on the following grounds: (1) violation of laws, CityOrdinances, or their implementing rules and regulations; (2) delinquency ornon-payment of any or all kinds of taxes, fees and charges; and (3) other justifiablecauses.

(b) Any business establishment which operates without a license/Mayor'spermit shall be subject to closure, without prejudice to the right of the City Treasurerto collect back taxes, fees, interests, penalties and other charges provided in this Code;

(c) The revocation of the permit and/or the issuance of an order closing abusiness by the City Mayor automatically cancels the license of said business andunder this circumstance, the taxpayer shall not be entitled to any tax refund.

(d) In the event of the revocation of license/permit and closure of a businessestablishment, the owner or operator must secure and pay for a new permit and licenseto operate.


Any person or business establishment who removes, destroys/defaces theposting of the Order of Closure without the proper lifting of the Order of Closurefrom the City Mayor or his authorized representative shall be fined of not less thanFive Thousand Pesos (Php 5,000.00) or suffer an imprisonment of not less than 6months, but not more than 1 year, or both, at the discretion of the court.

SECTION 15. Tax Receipts and Other Papers or Business Plate Relativeto the Operation of Business to be Displayed Conspicuously. All license privilegetax receipts and permits issued to a taxpayer under the provisions of this Code must bedisplayed by the licensee in a conspicuous place in his office, store or businessestablishment. Failure to do so shall be penalized as hereinafter provided. In casethere will be the issuance of a business plate or Mayor's permit plate duly validated,the same shall be in lieu of the tax receipts and other papers.

SECTION 16. Removal or Transfer of Business to Other Location. Except as otherwise provided by law or ordinance, any business, profession, trade oroccupation for which taxes or fees had been paid pursuant to the provisions hereof,may be moved and continued in another place within Batangas City without paymentof additional taxes during the term for which payment had already been made.Provided, however, that the taxpayer concerned shall first secure a new permit fromthe Office of the City Mayor to operate in the new location, and provided further, thathe notifies the City Treasurer of such transfer to another place at least twenty four(24) hours before the transfer. Proper notation of such transfer shall be made by thesaid City Treasurer or his deputies on the face of the official receipts, privilege taxreceipts and other records involved.

SECTION 17. Transfer of Ownership or Change of Name of Business. When the ownership of a business is transferred to another person, compliance withthe provisions of the Bulk Sales Law and of the National Internal Revenue Code, asamended, is a requirement to the continuation of the said business and no license shallbe issued to any person who has not complied with said requirements. Consequently,in cases where an applicant for a permit fails to comply with the above requirement,no Mayor's Permit shall be issued.

SECTION 18. Continuation of the Business Upon the Death of theLicensee. When a licensee and/or person operating the business dies and hisbusiness is continued by the heirs, the administrators or executors of the said person orby anyone who has shown proof of an interest in his estate, no additional tax shall berequired for the remaining period for which the tax had already been paid. Provided,


however, that the heirs, administrators, executors or individuals desiring to continuethe business of the deceased licensee shall comply with the provisions of Section 6hereof and the National Internal Revenue Code, as amended.

SECTION 19. Retirement from Business. A business subject to taxshall, upon termination thereof, submit a sworn statement to the City Treasurer of itsgross sales or receipts for the current year. If the tax paid during the year be less thanthe taxes due on said gross sales or receipts of the current year, the difference shall bepaid before the business is considered officially retired. Failure to submit the swornstatement of retirement to the City Treasurer in writing shall be deemed a conclusiveproof that the business was never retired and shall subject the owner to the usual taxesand fees.

SECTION 20. Cash Invoice or Official Receipt to be Issued for Every Saleof Twenty-Five Pesos (Php 25.00) or More. (a) Every person conducting abusiness, or pursuing a trade and/or fees under this Ordinance must issue an invoice orreceipt for every sale or transfer of merchandise or service amounting to Php 25.00 ormore. Failure to issue cash invoice/receipt shall be deemed unlawful and shall bepenalized as hereinafter provided, unless exempted by law.

CHAPTER III

Disposition

SECTION 21. Disposition of Funds. Except as otherwise provided inthe Local Government Code of 1991, collections made and received by the CityTreasurer under the provisions of this Code shall accrue to the General Fund ofBatangas City and shall be disposed of in the manner provided by the law and/orordinance.

SECTION 22. Refund of Collections. (a) Taxes, fees or charges paid tothe City Treasurer under this Code shall be refunded only for justifiable reasons andwhen payment was made under protest duly annotated on the receipt evidencing thepayment and that the claim for refund is filed within the calendar year when suchpayment is made.

(b) When a business is closed or retired before the expiration of the year orquarter for which the tax had been previously paid, the taxpayer concerned shall notbe entitled to a tax refund for the unexpired portion of the year or quarter.


(c) No claim for refund shall be paid unless the same is supported by afavorable recommendation of the City Treasurer and approved by the City Mayor.

TITLE II

Taxes, Fees and Other Charges

CHAPTER IV

Taxes and/or Fees on Business, Occupation, Amusement, Peddler,Sand and Gravel, Municipal Waters and Others

SECTION 23. Taxes on Business. There is hereby levied and imposedon all businesses the following:

(a) Manufacturers, assemblers, re-packers, processors, brewers, distillers,rectifiers and compounders of liquors, distilled spirits and wines or manufacturers ofany article of commerce of whatever kind or nature, in accordance with the followingschedule:

With gross sales or receipts for the preceding Amount of TaxCalendar year in the amount of: Per Annum

Less than Php 10,000 Php 295.00

10,000 or more but less than Php 15,000 392.00

15,000 or more but less than 20,000 538.00


30,000 or more but less than 40,000 1,176.00










750,000 or more but less than 1,000,000 17,820.00

1,000,000 or more but less than 2,000,000 24,403.00





6,500,000 or more 44,280.00 plus fifty-sixand one-fourth percent (56.25%) of one percent (1%) inexcess of Php 6,500,000.00

Manufacturers of petroleum products, natural gas or petrochemical productsare subject to business tax levied under Sec. 23 (a) of this Ordinance.

(b) On wholesalers, distributors, or dealers in any article of commerce ofwhatever kind or nature in accordance with the following schedule:

With gross sales or receipts for the preceding Amount of TaxCalendar year in the amount of: Per Annum

Less than Php 1,000.00 Php 32.00
























2,000,000 or more 19,959.00 plus seventy-five percent (75%) of one percent (1%) in excess ofPhp 2,000,000.00

Dealers of petroleum products, natural gas or petrochemical products aresubject to business tax levied under Sec. 23 (b) of this Ordinance.

(c) On the business of exporting and manufacturing, milling, producing,distributing, dealing or retailing of essential commodities enumerated hereunder at a


rate not exceeding one-half (1/2) of the rates prescribed under subsections a, b, and dof this Section:

1. Rice and corn;

2. Wheat or cassava flour, meat, dairy products, locally manufactured,processed or preserved food, sugar, salt and other agricultural,marine and fresh water products, whether in their original state ornot.

3. Cooking oil, cooling gas;

4. Bath and laundry soap, detergents and medicines;

5. Agricultural implements, equipment & post-harvest facilities,fertilizers, pesticides, insecticides, herbicides;

(a.) Poultry and other animal feeds;

(b.) School supplies; and

(c.) Cement.

(d.) Retailers

Rate of TaxPer Annum

With gross sales or receipts for the precedingcalendar year of Php 400,000 or less 2%

In excess of Php 400,000 1%

(e) On contractors and other independent contractors in accordance with thefollowing schedule:

With gross receipts for the year

Less than Php 5,000.00 Php 50.00



















2,000,000 or more 21,600.00 plus seventy-five percent (75%) of one percent (1%) in excess of Php2,000,000.00

(f) On banks and other financial institutions, at a rate of seventy-five percent(75%) of one percent (1%) on the gross receipts of the preceding calendar yearderived from the interest, commissions and discounts from lending activities, incomefrom financial leasing, dividends, rentals on property and profit from exchange or saleof property, insurance premium.

(g) On any business, not otherwise specified in the preceding paragraphs, at arate of two percent (2%) of the gross sales or receipts of the preceding calendar year.


(h) On newly started business enumerated in a, b, c, d, e, and others, sevenand one-half percent (7.5%) of one percent (1%) of the capital investment.

SECTION 24. Situs of Taxes. (a) For purposes of collection of thebusiness taxes hereinabove provided, manufacturers, assemblers, repackers, brewers,distillers, rectifiers, and compounders of liquors, distilled spirits and wines, millers,producers, exporters, wholesalers, distributors, dealers, contractors, banks, and otherfinancial institutions and other businesses maintaining an office, branch or sales outletin Batangas City who make a sale or transaction therein, shall record the transactionwith the office, branch, or sales outlet and pay the tax due thereon to the CityTreasurer. In cases where the business does not maintain any branch, office or salesoutlet in Batangas City and a sale or transaction is made therein, the sale ortransaction shall be recorded in the principal office of the business and the tax duethereon shall be paid to the City Treasurer.

(b) Where the manufacturers, assemblers, contractors, producers, andexporters maintain their principal office in Batangas City but their factories, projectoffices, plants and plantations in the pursuit of their business are located elsewhere,thirty percent (30%) of all sales recorded in the principal office shall be taxable by andpayable to the City Treasurer.

(c) Where the manufacturers, assemblers, contractors, producers, andexporters maintain their factories, project offices, plants and plantations in BatangasCity but not their principal office in the pursuit of their businesses, seventy percent(70%) of all sales recorded in the principal office shall be taxable by and payable tothe City Treasurer.

(d) In case the plantation but not the factory is located in Batangas City, fortypercent (40%) of the seventy percent (70%) mentioned in par. c. hereof shall betaxable by and payable to the City Treasurer.

(e) In case the factory but not the plantation is located in Batangas City, sixtypercent (60%) of the seventy percent (70%) above-mentioned shall be taxable by andpayable to the City Treasurer.

(f) Where the manufacturers, assemblers, producers, contractors, or exportershave two or more factories, project offices, plants and plantations located in differentcities or municipalities including Batangas City, the seventy percent (70%)above-mentioned shall be pro-rated between Batangas City and the localities where


such factories, project offices, plants and plantations are located in proportion to therespective volumes of production during the period for which the tax is due.

(g) In all cases, the foregoing sales allocations shall be applied irrespective ofwhether or not the sales are made in the locality where the factories, project offices,plantations or plants are located.

SECTION 25. Professional Tax. (a) Except as otherwise provided bylaw, there is hereby levied and imposed an annual professional tax on each personengaged in the exercise or practice of his profession requiring governmentexamination in the amount of Php 300.00

(b) Any individual or corporation employing a person subject to professionaltax shall require payment by that person of the tax on his profession beforeemployment and annually thereafter.

(c) The professional tax shall be payable annually on or before the thirty first(31st) day of January. Any person first beginning to practice a profession after themonth of January must pay the full tax before engaging therein. A line of professiondoes not become exempt even if conducted with some other profession for which thetax has been paid. Professionals exclusively employed in the government shall beexempt from the payment of this tax.

(d) Any person subject to the professional tax shall write in deeds, receipts,prescriptions, reports, books of accounts, plans and designs, surveys and maps, as thecase may be, the number of the official receipt issued to him.

(e) Professionals liable to tax shall include, but not be limited to thefollowing:

Actuarians Marine SurveyorsArchitects Master MarinersAttorneys at Law Medical PractitionersCertified Public Accountants Medical TechnologistsChemists MidwivesChief Mates, 2nd & 3rd NutritionistsCommercial Aviators Naval ArchitectsDentists OptometristsDealers in Securities PharmacistsEngineers Physical Therapists


Foresters Professional ConsultantsGeologists Real Estate BrokersLicensed Shipmasters Registered NursesMarine Officers Veterinarians

SECTION 26. Amusement Taxes. (a) There is hereby levied andimposed an amusement tax on proprietors, lessees, or operators of theaters, cinemas,concert halls, circuses, boxing stadia, cockpits, and other places of amusement at arate of thirty per cent (30%) of the gross receipts from admission fees.

(b) In the case of theaters or cinemas, the tax shall first be deducted andwithheld by their proprietors, lessees, or operators and paid to the City Treasurerbefore the gross receipts are divided between said proprietors, lessees, or operatorsand the distributors of the cinematographic films, to be paid to the City Treasurer onthe fifth day of the succeeding month after collection.

SECTION 27. Taxes on Amusement Places. There is hereby levied andimposed a tax on all persons operating any or all of the following amusement places,but which shall not be limited to:

Places Amount of Tax

1. Night and Day clubs Php 16,500.00

2. Night clubs or Day Clubs or cabarets 13,200.00

3. Cocktail Lounges/Bars/Beer Houses/Disco Houses,and Restaurants

(a) with GRO 10,000.00

(b) without GRO 4,400.00

4. Gay Bars 4,400.00

5. Dance Halls 3,300.00

6. Skating Rinks 1,100.00

7. Bath Houses, Swimming Pools, Resorts and othersimilar places 1,100.00


8. Steam Baths, Saunas, Massage Clinics and othersimilar establishments 3,300.00

9. Social Clubs and voluntary associations 220.00

10. Billiard, pools, mahjong and others, per table 165.00

11. Bowling alleys

(a) per automatic lane 550.00

(b) per non-automatic lane 330.00

12. Circuses, and other side shows, 1st 10 days or less 1,320.00

Per day or fraction thereof 55.00

13. Merry-go-round, roller coasters, ferris wheel, swings andother similar contrivances, per unit

1st 10 days or less 1,320.00


14. Shooting galleries, toy race games, stall gamesand others, per unit

1st 10 days or less 330.00


15. Theaters and cinema houses:

(a) For itinerant operators, per day, plusCity Mayor's permit for the whole period 22.00

(b) with orchestra only with seating capacity of lessthan 500 persons 1,100.00

(c) with balcony and orchestra with seating capacityof less than 500 persons 1,650.00

(d) with balcony and orchestra with seating capacity of


500 to 999 persons 2,200.00

(e) with balcony and orchestra with seating capacity of1,000 persons or more 2,750.00

(f) with lodge, balcony and orchestra 3,300.00

16. Video/Karaoke Bars/Pub Houses 1,000.00

17. Video/Computer Game Centers 1,000.00

18. Boxing stadium, .Auditorium, Gymnasium, Concert Halls,Convention Halls, or similar establishments 1,100.00

Plus Php 500.00 for every boxing, wrestling ormartial arts contest, per day

19. Race tracks for conducting horse races 3,300.00

Plus Php 75.00 for every racing daywhenever actual races are held

20. Pelota, Tennis, or squash court, per court, per day 550.00

21. Race tracks for Dog races 495.00

22. Cockpit 7,700.00

23. Gun Clubs 2,200.00

24. Judo or Karate Clubs and other martial arts clubs 165.00

25. Other Amusement places not enumerated 275.00

SECTION 28. Taxes on Amusement Devices. There is hereby levied andimposed an annual tax on all persons operating the following amusement devices atthe rate indicated as follows:

1. Each jukebox machine Php 275.00

2. Each machine or apparatus for visual or audioEntertainment, and video game machine 165.00


3. Each apparatus for weighing persons 55.00

4. Each device for vending games of skills 55.00

5. Coin, card or ticket-operated amusement machine 165.00

6. Casino machines, game tables and similarcontrivances, per unit 2,000.00

SECTION 29. Operation of Videogame Machine Centers and Bingo GameCenters.

(a) the operation of videogame machine centers and Bingo Game Centersshall be allowed only through a local franchise and a resolution of no objectionapproved by the Sangguniang Panlungsod, pursuant to the requirements of thePAGCOR and/or PCSO. The grant of local franchise shall be subject to applicablelaws and terms and conditions the Sangguniang Panglunsod may impose. Therequirements herein provided shall also be applicable to any other business requiredby law to secure the same.

(b) The franchise shall state the number of video game machines allowed inthe operation of the business and any additional unit shall be subject to theamendment of the franchise. In no case shall a franchise be granted to anyestablishment unless it is more than 200 meters radius away from any school, churchor public building.

(c) The franchise holder or grantee shall pay the corresponding annualfranchise fee of Php 5,500.00, business permits and other regulatory fees, and a tax ofPhp 200.00 per machine/unit per year.

(d) The franchise to be granted to the applicant shall be non-exclusive andmay be revoked for cause.

(e) The following shall constitute causes for the revocation of the franchise:

1. Violation of the terms and conditions of the franchise by thegrantee.

2. Voluntary stoppage of the business or death of the grantee.

3. Non-payment by grantee of the franchise and other City fees and


charges.

4. Non-compliance or violation by the grantee of any provision of thisOrdinance, laws, rules and regulations.

SECTION 30. Operation of Computer Centers. Any provision of thisCode to the contrary notwithstanding, there shall be levied or imposed for everycomputer unit in the center an annual tax of One Hundred Pesos (Php 100.00).

SECTION 31. Annual Fixed Tax for Delivery Trucks Used byManufacturers, Producers, Wholesalers, Dealers, or Retailers of Certain Products. (a) There is hereby levied and imposed an annual tax for every truck, van, or anyvehicle used by manufacturers, producers, wholesalers, dealers, or retailers in thedelivery or distribution of goods or products of commerce, including constructionmaterials, distilled spirits, fermented liquors, soft drinks, cigars, cigarettes, and otherproducts to sales outlets or consumers, whether directly or indirectly, within the Cityin an amount of Five Hundred Fifty Pesos (Php 550.00).

(b) The manufacturers, producers, wholesalers and retailers referred to in par.(a) shall be exempt from the tax on peddlers prescribed in this Ordinance.

SECTION 32. Tax on Business of Printing and Publication. There ishereby levied and imposed a tax on the business of persons engaged in the printingand/or any publication of books, cards, posters, leaflets, handbills, certificates,receipts, pamphlets, and others of similar nature at the rate of seventy-five percent(75%) of one percent (1%) of the gross annual receipts for the preceding calendaryear.

In the case of a newly started business, the tax shall be seven and one-halfpercent (7.5%) of one percent (1%) of the total capital investment. In the precedingcalendar year, regardless of when the business started to operate, the tax shall bebased on the gross receipts of the preceding calendar year, or any fraction thereof, asprovided herein.

The receipts from the printing and/or publishing of books or other readingmaterials prescribed by the Department of Education as school texts or referencesshall be exempt from the tax herein imposed.

SECTION 33. Franchise Tax. There is hereby levied and imposed onbusiness enjoying a franchise at the rate of seventy-five percent (75%) of one percent


(1%) of the gross annual receipts for the preceding calendar year.

In the case of newly started business, the tax shall be seven and one-halfpercent (7.5%) of one percent (1%) of the capital investment. In the succeeding year,regardless of when the business started to operate, the tax shall be based on the grossreceipts for the preceding calendar year or any fraction thereof, as herein-aboveprovided.

The business subject to franchise tax shall include, but not be limited to theoperation of electric power, communications, water and gas companies, ferries,cockpits, casinos, transportation companies and/or associations.

SECTION 34. Community Tax. Every inhabitant of the Philippineseighteen (18) years of age or over who has been regularly employed on a wage orsalary basis for at least thirty (30) consecutive working days during the previouscalendar year or who is engaged in business or occupation or who owns real propertywith an assessed value of Php 1,000.00 or more, or who is required by law to file anincome tax shall pay an annual tax of Php 5.00 and an additional annual tax of Php1.00 for every Php 1,000.00 of income from business, exercise of profession orproperty but which in all cases shall not exceed Php 5,000.00.

In the case of husband and wife, the additional tax herein imposed shall bebased upon the total property owned by them and the total gross receipts or earningsderived by them.

SECTION 35. Juridical Persons Liable to Community Tax. Everycorporation no matter how created or organized, whether domestic or resident foreign,engaged in or doing business in the Philippines shall pay an annual community tax ofPhp 500.00 and an additional annual tax, which in all cases shall not exceed Php10,000.00 in accordance with the following schedule:

1. For every Php 5,000.00 worth of real property in Batangas Cityowned by it during the preceding year based on the valuation usedfor the payment of real property tax under existing laws found inthe assessment rolls of the city Php 2.00

2. For every Php 5,000.00 worth of gross receipts or earnings derivedby it from business in the Philippines during the preceding calendaryear Php 2.00


The dividends received by a corporation from another corporation shall for thepurpose of additional tax be considered as part of the gross receipts or earnings of saidcorporation.

SECTION 36. Exemptions from the Community Tax. The following areexempt from paying the community tax:

1. Diplomatic and consular representatives; and

2. Transient visitors when their stay in the Philippines does not exceed three(3) months.

SECTION 37. Place of Payment. The Community Tax shall be paid tothe City Treasurer or deputized Barangay Treasurers by all persons, natural orjuridical, who reside in Batangas City. For purposes of this section, juridical entitieswhose principal offices are located in Batangas City shall be considered residentsthereof.

SECTION 38. Time for Payment and Penalty. (a) The community taxshall accrue on the first day of January of each year. If a person reaches the age of 18years or otherwise loses the benefit of exemption on or before the last day of June, heshall be liable for the community tax on the day he reaches such age or upon the daythe exemption ends. If a person reaches the age of 18 years or loses the benefit ofexemption on or before the last day of March, he shall have 20 days to pay thecommunity tax without becoming delinquent.

Persons who come to reside in the Philippines or reach the age of 18 years onor after the first day of July of any year or who cease to belong to an exempt class onor after the same date, shall not be subject to the community tax for that year.

(b) Corporations established and organized on or before the last day of Juneshall be liable for the community tax for that year. Corporations established andorganized on or before the last day of March shall have 20 days within which to paythe community tax without becoming delinquent. Corporations established andorganized on or after the first day of July shall not be subject to the community tax forthat year.

(c) If the tax is not paid within the time prescribed above, there shall beadded to the unpaid amount an interest of twenty-four percent (24%) per annum fromthe due date until it is paid.


SECTION 39. Community Tax Certificate. A community tax certificatemay also be issued to every person or corporation upon payment of the communitytax. A community tax certificate may also be issued to any person or corporation notsubject to community tax upon payment of one peso (Php 1.00).

SECTION 40. Presentation of Community Tax Certificate.

(a) When an individual subject to community tax acknowledges anydocument before a notary public, takes the oath of office upon election or appointmentto any position in the government service, receives any license, certificate, or permitfrom any public authority; pays any tax fee; receives any money from any public fund;transacts other official business; or receives any salary or wage from any person oroccupation, it shall be the duty of any person, officer or corporation with whom suchtransaction is made or business done or from any salary or wage is received to requiresuch individual to exhibit the community tax certificate.

The presentation of community tax certificate shall not be required inconnection with the registration of a voter.

(b) When, through its authorized officer, any corporation subject to thecommunity tax receives any license, or permit from any public authority, pays any taxor fee, receives money from public funds, or transacts other official business, it shallbe the duty of the public official with whom such transaction is made or businessdone, to require such corporation to exhibit the community tax certificate.

(c) The community tax certificate required in the two (2) precedingparagraphs shall be the one issued for the current year, except for the period fromJanuary until the fifteenth (15th) of April of each year, in which case, the certificateissued for the preceding year shall suffice.

SECTION 41. Taxes on Operators or Owners of Rice and Corn Mills,Cold Storage, Refrigeration and Lumberyards. (a) There is hereby levied andimposed an annual tax on operators or owners of rice and corn mills, engaged in themilling of rice and corn based upon total capacity per machine in accordance with thefollowing schedule per annum.

Amount of TaxPer Annum

Corn mill, not exceeding one hundred cavans, per twelve


hour capacity Php 55.00

Corn mill, exceeding one hundred cavans, per twelvehour capacity 77.00

"Kiskisan" type, not exceeding one hundred cavansof palay, per twelve hour capacity 220.00

"Kiskisan" type, exceeding one hundred cavans of palay,per twelve hour capacity 330.00

"Cono" of not exceeding one hundred cavans of palayper twelve hour capacity 330.00

"Cono" of not exceeding two hundred cavans of palay,per twelve hour capacity 660.00

"Cono" of not exceeding three hundred cavans of palay,per twelve hour capacity 900.00

"Cono" of not exceeding four hundred cavans of palay,per twelve hour capacity 1,155.00

"Cono" of not exceeding five hundred cavans of palay,per twelve hour capacity 2,105.00

"Cono" of not exceeding six hundred cavans of palay,per twelve hour capacity 2,970.00

"Cono" of not exceeding seven hundred cavans of palayper twelve hour capacity 3,025.00

"Cono" of not exceeding eight hundred cavans of palay,per twelve hour capacity 5,280.00

"Cono" of not exceeding nine hundred cavans of palay,per twelve hour capacity 6,600.00

" Cono of not exceeding one thousand cavans of palay,per twelve hour capacity 7,920.00

"Cono" of over one thousand cavans of palay,per twelve hour capacity 9,240.00


(b) On cold storage and refrigeration cases:

As to total average capacity: Amount of TaxPer annum

Over 50 cu. m. Php 1,100.00

Over 35 but not exceeding 50 cu. m. 825.00



15 cu. m. or less 220.00

The term "Total Cold Storage Capacity" shall be understood to comprise thecapacities of the cold storage room, ice boxes, refrigerating case, such as freezers,refrigerators, and other similar cold storage all taken together in an establishment.

(d) On lumberyards:

Amount of TaxPer Annum

Over 2000 sq. m. Php 2,200.00

Over 1500 but not exceeding 2000 sq. m. 1,650.00

Over 1000 but not exceeding 1500 sq. m. 1,100.00

1000 sq. m. or less 550.00

CHAPTER V

Real Property Taxation

SECTION 42. Definition of Terms. When used in this Section:

(a) Acquisition Cost for newly-acquired machinery not yet depreciated andappraised within the year of its purchase, refers to the actual cost of the machinery toits present owner, plus the cost of transportation, handling, and installation at thepresent site.


(b) Actual use refers to the purpose for which the property is principally orpredominantly utilized by the person in possession thereof.

(c) Ad Valorem Tax is a levy on real property determined on the basis of afixed proportion of the appraise value of the property.

(d) Agricultural Land is land devoted principally to the planting of trees,raising of crops, livestock and poultry, dairying, salt making, inland fishing andsimilar aquacultural activities, and other agricultural activities, and is not classified asmineral, timber, residential, commercial or industrial land.

(e) Appraisal is the act or process of determining the value of property as of aspecific date or specific purposes.

(f) Assessment is the act or process of determining the value of a property, orproportion thereof subject to tax, including the discovery, listing, classification andappraisal of properties.

(g) Assessment Level is the percentage applied to the fair market value todetermine the taxable value of the property.

(h) Assessed Value is the fair market value of the real property multiplied bythe assessment level. It is synonymous to taxable value.

(i) Commercial Land is land devoted principally for the object of profit andis not classified as agricultural, industrial, mineral, timber or residential land.

(j) Depreciated Value is the value remaining after deducting depreciationfrom the acquisition cost.

(k) Economic Life is the estimated period over which it is anticipated that amachinery or equipment may be profitably utilized.

(l) Fair Market Value is the price at which a property may be sold by a sellerwho is not compelled to sell and bought by a buyer who is not compelled to buy.

(m) Improvement is a valuable addition made to a property or an ameliorationin its condition, amounting to more than a mere repair or replacement of partsinvolving capital expenditures and labor which is intended to enhance its value,beauty or utility or to adapt it for new or further purposes.


(n) Industrial Land is land devoted principally to industrial activity as capitalinvestment and is not classified as agricultural, commercial, timber, mineral orresidential land.

(o) Machinery embraces machine, equipment, mechanical contrivances,instruments, appliances or apparatus which may or may not be attached, permanentlyor temporarily, to the real property. It includes the physical facilities for production,the installations and appurtenant service facilities, those which are mobile,self-powered or self-propelled, and those not permanently attached to the real propertywhich are actually, directly, and exclusively used to meet the needs of the particularindustry, business or activity and which by their very nature and purposes are designedfor, or necessary to its manufacturing, mining, logging, commercial, industrial oragricultural purposes.

(p) Reassessment is the assigning of new assessed value to property,particularly real estate, as the result of a general, partial or individual reappraisal ofthe property.

(q) Remaining Economic Life is the period of time expressed in years fromthe date of appraisal to the date when the machinery becomes valueless.

(r) Remaining Value is the value corresponding to the remaining useful lifeof the machinery.

(s) Replacement or Reproduction Cost is the cost that would be incurred, onthe basis of current prices, in acquiring an equally desirable substitute property, or thecost of reproducing a new replica of the property on the basis of current prices withthe same or closely similar material.

(t) Residential Land is land principally devoted to habitation.

SECTION 43. Imposition of The Basic Real Property Tax and SpecialEducation Fund Tax. There is hereby levied and imposed an annual ad valorem taxon real property such as land, buildings, machinery and other improvements affixed orattached to the real property situated in the City of Batangas at the rate of one and ahalf percent (1-1/2%) of the assessed value thereof. In addition thereto, there is herebylevied and imposed a tax of one percent (1%) of the assessed value of such realproperty which shall accrue exclusively to the Special Education Fund.

The basic tax and special education fund shall be collected together and shall


be due and payable on the first day of January of every year. The same may, at thediscretion of the taxpayer be paid without interest in four equal installments; the firston or before March 31; the second on or before June 30; the third on or beforeSeptember 30; and the last on or before December 31. Failure to pay the real propertytax upon the expiration of the periods herein above-prescribed shall subject thetaxpayer to the payment of interest at the rate of two percent (2%) per month on theunpaid amount or a fraction thereof, until the delinquent tax shall have been fullypaid; provided, however, in no case shall the total interest on the unpaid tax or portionthereof exceed thirty-six (36) months.

SECTION 44. Classes of Real Property. For purposes of assessment,real property shall be classified as residential, agricultural, commercial, industrial, orspecial by the City Assessor.

All lands, buildings and other improvements thereon actually, directly andexclusively used for hospitals, cultural, institutional or scientific purposes, and thoseowned and used by local water districts, and government-owned or controlledcorporations rendering essential public services in the supply and distribution of waterand/or generation and transmission of electric power shall be classified as special.

SECTION 45. Actual Use of Real Property as Basis for Assessment. Real property shall be classified, valued and assessed on the basis of its actual use,regardless of where it is located, whoever owns it, and whoever uses it.

SECTION 46. Assessment Levels.

The assessment levels to be applied to the fair market value of real property todetermine its assessed value shall be as follows:

1. On Lands:

Class Assessment Levels

Residential 5%Agricultural 30%Commercial 15%Industrial 25%Mineral 40%Timberland 40%


2. On Buildings and Other Structure:

Residential Fair Market Value

Over Not Over Assessment Level

Php 175,000.00 0%Php 175,000.00 300,000.00 5%

300,000.00 500,000.00 10%500,000.00 750,000.00 15%750,000.00 1,000,000.00 20%

1,000,000.00 2,000,000.00 25%2,000,000.00 5,000,000.00 30%5,000,000.00 10,000,000.00 35%

10,000,000.00 40%

Agricultural Fair Market Value


Php 300,000.00 25%Php 300,000.00 500,000.00 30%

500,000.00 750,000.00 35%750,000.00 1,000,000.00 40%

1,000,000.00 2,000,000.00 45%2,000,000.00 50%

Commercial / Fair Market ValueIndustrial


Php 300,000.00 20%Php 300,000.00 500,000.00 25%

500,000.00 750,000.00 30%750,000.00 1,000,000.00 35%

1,000,000.00 1,500,000.00 40%1,500,000.00 3,000,000.00 45%3,000,000.00 4,500,000.00 50%4,500,000.00 6,000,000.00 55%6,000,000.00 7,500,000.00 60%


7,500,000.00 9,000,000.00 65%9,000,000.00 10,500,000.00 70%

10,500,000.00 12,000,000.00 75%12,000,000.00 80%

3. On Machineries:

Class Assessment Levels

Residential 50%Agricultural 40%Commercial 80%Industrial 80%

4. On Special Classes. The assessment levels for all lands, buildings,machineries and other improvements shall be as follows:

Actual Use Assessment Levels

Cultural 5%Scientific 5%Hospital 5%Institutional 5%Local water districts 10%Government-owned orcontrolled corporationsengaged in the supplyand distribution ofwater and/or generationand transmission ofelectric power 10%

SECTION 47. Exemptions. The following are exempted from paymentof the basic real property tax and the SEF tax:

(a) Real property owned by the Republic of the Philippines or any of itspolitical subdivisions except when the beneficial use thereof has been granted forconsideration or otherwise to a taxable person;

(b) Charitable institutions, churches and parsonages or convents appurtenantthereto, mosques, non-profit or religious cemeteries and all lands, buildings andimprovements actually, directly, and exclusively used for religious, charitable or


educational purposes;

(c) All machineries and equipment that are actually, directly and exclusivelyused by local water districts and government-owned or -controlled corporationsengaged in the supply and a distribution of water and/or generation and transmissionof electric power;

(d) All real property owned by duly registered cooperatives as provided forunder R.A. No. 6938; and

(e) Machinery and equipment used for pollution control and environmentalprotection.

SECTION 48. Appraisal of Real Property. All properties, whethertaxable or exempt, shall be appraised at the current and fair market value prevailing inthe city in accordance with the rules and regulations promulgated by the Departmentof Finance for the classification, appraisal and assessment for real property pursuantto the provisions of the Local Government Code.

SECTION 49. Declaration of Real Property by the Owner orAdministrator. It shall be the duty of all persons, natural or juridical, owning oradministering real property, including improvements, within the City of Batangas, ortheir duly authorized representatives, to prepare, or cause to be prepared, and file withthe City Assessor, sworn statement declaring the true value of their property, whetherpreviously declared or undeclared, taxable or exempt, which shall be the current andfair market value of the property, as determined by the declarant. Such declarationshall contain a description of the property sufficient in detail to enable the Assessor orhis deputy to identify the same for assessment purposes. The sworn declaration of realproperty herein referred to shall be filed with the City Assessor once every three (3)years.

For this purpose, the City Assessor shall use the standard form known asSworn Declaration of Property Values prescribed by the Department of Finance. Theprocedures in filing the safekeeping thereof shall be in accordance with the guidelinesissue by the said department.

Property owners or administrators or any person having legal interest thereinwho fail to comply with this provision shall be subject to a fine of Two Thousand FiveHundred Pesos (Php 2,500.00), or an imprisonment of not more than one (1) month incase of willful neglect, or both, at the discretion of the court.


SECTION 50. Duty of Person Acquiring Real Property or MakingImprovement Thereon.

(a) It shall be the duty of any person or his authorized representative,acquiring at any time real property situated in the City or making any improvement ofreal property, to prepare, or cause to be prepared, and file with the City Assessor, asworn statement declaring the true value of subject property, within sixty (60) daysafter the acquisition of such property or upon completion or occupancy of theimprovement, whichever comes earlier.

(b) In the case of houses, buildings, or other improvement acquired or newlyconstructed which will require building permits, property owners or their authorizedrepresentatives shall likewise file a sworn declaration of the true value of the subjecthouse, building, or other improvement within sixty (60) days after: (1) the date of aduly notarized final deed of sale, contract, or other deed of conveyance covering thesubject property executed between the contracting parties; (2) the date of completionof occupancy of the newly constructed building, house, or improvement whichevercomes earlier; and (3) the date of completion or occupancy of any expansion,renovation, or additional structures or improvement made upon any existing building,house, or other real property, whichever comes earlier.

(c) In the case of machinery, the sixty-day period for filing the requiredsworn declaration of property values shall commence on the date of installationthereof as determined by the City Assessor. For this purpose, the City Assessor maysecure certification of the building official or engineer.

(d) Property owners or administrators or any person having legal interesttherein who fail to comply with this provision shall be subject to a fine of TwoThousand Five Hundred Pesos (Php 2,500.00), or an imprisonment of not more thanone (1) month in case of willful neglect, or both, at the discretion of the Court.

SECTION 51. Declaration of Real Property by the City Assessor.

(a) When any person, natural or juridical, by whom real property is requiredto be declared under Secs. 49 and 50 of this Code refuses or fail for any reason tomake such declaration within the time prescribed, the City Assessor shall himselfdeclare the property in the name of defaulting owner, and shall assess the property fortaxation in accordance with the provisions of this article.

(b) In case of real property discovered whose owner or owners are unknown


the City Assessor shall likewise declare the same in the name of the Unknown Owner,until such time that a person, natural or juridical, comes forth and files the sworndeclaration of property values required under either Secs. 49 and 50 of this Code, asthe case may be.

(c) No oath shall be required of declaration made by the City Assessor.

SECTION 52. Listing of Real Property in the Assessment Roll.

The City Assessor shall prepare and maintain an assessment roll wherein allreal property shall be listed, whether taxable or exempt, located within the territorialjurisdiction of the City. Real property shall be listed, valued and assessed in the nameof the owner or administrator, or anyone having legal interest in the property.

The undivided property of a deceased person may be listed, valued andassessed in the name of the estate or of the heirs and devisees without designatingthem individually; and undivided real property other than that owned by a deceasedmay be listed, valued and assessed in the name of one or more co-owners; provided,however, that such heir, devisee, or co-owner shall be liable severally andproportionately for all obligations imposed by this Article and the payment of the realproperty tax with respect to the undivided property.

The real property of a corporation, partnership, or association shall be listed,valued and assessed in the same manner as that of an individual.

Real property owned by the Republic of the Philippines, its instrumentalitiesand political subdivisions, the beneficial use of which has been granted, forconsideration or otherwise, to a taxable person, shall be listed, valued and assessed inthe name of the possessor, grantee or of the public entity if such property has beenacquired or held for resale or lease.

SECTION 53. Proof of Exemption of Real Property from Taxation. Every person, by or for whom real property is declared, who shall claim taxexemption for such property under this Article, shall file with the City Assessor withinthirty (30) days from the date of the declaration of real property sufficientdocumentary evidence in support of such claim including corporate charters, title ofownership, articles of incorporation, by-laws, contracts, affidavits, certifications andmortgage deeds, and similar documents.

If the required evidence is not submitted within the period herein prescribed,


the property shall be listed as taxable in the assessment roll. However, if the propertyshall be proven to be tax exempt, the same shall be dropped from the assessment roll.The City Assessor, assisted by the City Legal Officer, shall determine the propertysubject of exemption.

SECTION 54. Real Property Identification System. All declarations ofreal property, made under the provisions of this Article shall be kept and filed under auniform classification system to be established by the City Assessor pursuant to theguidelines issued by the Department of Finance (DOF) for the purpose.

SECTION 55. Notification of Transfer to Real Property Ownership.

(a) Any person who shall transfer real property ownership to another shallnotify the City Assessor within sixty (60) days from the date of such transfer. Thenotification shall include the mode of transfer, the description of the propertyalienated, the name and address of the transferee.

(b) In addition to the notice of transfer, the previous property owner shalllikewise surrender to the City Assessor the tax declaration covering the subjectproperty in order that the same may be cancelled from the assessment records. Ifhowever, said previous owner still owns the property other than the property alienated,he shall, within the prescribed sixty-day (60) period, file with the City Assessor, anamended sworn declaration of the true value of the property or properties he retains inaccordance with provisions of Sec. 49 of this Code.

(c) Property owners or administrators or any person having legal interesttherein who fail to comply with this provision shall be subject to a fine of TwoThousand Five Hundred Pesos (Php 2,500.00) or an imprisonment of not more thanone (1) month in case of willful neglect, or both, at the discretion of the Court.

SECTION 56. Tax on Transfer of Ownership of Real Property. There ishereby levied and imposed a tax on the sale, donation, barter, or any other mode oftransferring ownership or title of real property at the rate of seventy-five percent(75%) of one percent (1%) of the total consideration involved in the acquisition of theproperty or of the fair market value, whichever is higher.

For this purpose, the Registrar of Deeds of the City, shall, before registeringany deed, require the presentation of the evidence of the payment of these taxes. TheCity Assessor shall likewise make the same requirements before canceling old taxdeclarations and issuing new ones in place thereof. The City Registrar of Deeds and


the Notaries Public shall furnish the City Assessor with copies of any deedtransferring ownership or title to any real property within thirty (30) days from thedate of notarization/registration.

It shall be the duty of the seller, donor, transferor, executor or administrator topay the taxes herein imposed within sixty (60) days from the date of the execution ofthe deed or from the date of the decedent's death, whichever comes earlier.

SECTION 57. Duty of the Registrar of Deeds to Appraise City Assessors ofReal Property Listed in Registry.

(a) To ascertain whether or not any real property entered in the Registry ofProperty has escaped discovery and listing for the purpose of taxation, the Registrar ofDeeds shall prepare and submit to the City Assessor an abstract of the registry, whichshall include brief but sufficient descriptions of real properties entered therein, theirpresent owners, and the dates of their most recent transfer or alienation accompaniedby copies of corresponding deeds of sale, donation, or partition or other forms ofalienation.

(b) It shall be the duty of the Registrar of Deeds to require every person whoshall present for registration a document of transfer, alienation or encumbrance of realproperty, to accompany the same with a certificate to the effect that the real propertysubject to the transfer, alienation, or encumbrance, as the case may be, has been fullypaid of all real property taxes due thereon. Failure to provide such certificate shall bea valid cause for the Registrar of Deeds to refuse the registration of the documents.

(c) The Registrar of Deeds and Notaries Public shall furnish the CityAssessor with the copies of all contracts, selling, transferring, or otherwise conveying,leasing, or mortgaging real property registered by or acknowledged before them,within thirty (30) days from the date of registration or acknowledgement.

SECTION 58. Duty of the Official Issuing Building Permit or Certificate ofRegistration of Machinery to Transmit Copy to the City Assessor.

(a) The building official who may be required by law or regulation to issue toany person a permit for the construction, addition, repair, or renovation of a building,or permanent improvement on land, or a certificate of registration for any machinery,including machines, mechanical contrivances, and apparatus attached or affixed onland or to another real property, shall transmit a copy of such permit or certificatewithin thirty (30) days of its issuance to the City Assessor.


(b) The building official shall likewise, within the same period stated above,must furnish the City Assessor with copies of the following:

1. complete building plans with bill of materials and specification

2. list of machineries with costing

3. as built plan with actual completion cost

4. change of use/occupancy permit

5. demolition permit

SECTION 59. Duty of Geodetic Engineers to Furnish Copy of Plans to theCity Assessor. It shall be the duty of all geodetic engineers, public or private, tofurnish free of charge to the City Assessor with a white or blueprint copy of each andall approved original or subdivision plans or maps of surveys executed by them withinthirty (30) days from receipts of such plan from the Land Management Bureau, theLand Registration Authority, or the Housing and Land Use Regulatory Board, as thecase may be.

SECTION 60. Preparation of Schedule of Fair Market Values.

(a) Before any general revision of property assessment is made pursuant tothe provisions of this Article, there shall be prepared a schedule of fair market valuesby the City Assessor for the different classes of real property situated in the City forthe enactment of a separate ordinance by the Sangguniang Panglungsod. The scheduleof fair market values shall be published in a newspaper of general circulation in theCity or in the absence thereof, shall be posted in the City Hall and in two otherconspicuous public places therein.

(b) In the preparation of schedules of fair market values, the City Assessorshall be guided by the rules and regulations issued by the Department of Finance.

SECTION 61. Authority of City Assessor to Take Evidence. For thepurpose of obtaining information on which to base the market value of any realproperty, the City Assessor or his deputy may summon the owners of the properties tobe affected or persons having legal interest therein and witnesses administer oaths,and take deposition concerning the property, its ownership, amount, nature, and value.

SECTION 62. Amendment of Schedule of Fair Market Values. The City


Assessor may recommend to the Sangguniang Panglungsod amendments to correcterrors in valuation in the schedule of fair market values. The Sangguniang Panlungsodshall act upon the recommendation within ninety (90) days from receipt thereof.

SECTION 63. General Revision of Assessments and Prop

Batangas City Revenue Code of 2009

Documents

Transcript of Batangas City Revenue Code of 2009