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RULE XXX Local Government T axation PART ONE General Provisions AR TI CLE 217. co !e. " T#e $ ol lo%i n& r'les a n( re&'lati ons s#al l &overn t #e exer ci se )*  !rovinces+ cities+ m'nici!alities+ an( )aran&a*s o$ t#eir taxin& an( ot#er reven'e,raisin& !o%ers. ac( AR TI CLE 21 -. Po%er t o Cr eate o'rces o$ Reven'e. " Con si stent %i t# t#e )a si c !o li c* o$ local a'tonom*+ eac# LGU s#all exercise its !o%er to create its o%n so'rces o$ reven'e an( to lev* taxes+ $ees+ or c#ar&es+ s')ect to t#e !rovisions o$ t#is R'le. 'c# taxes+ $ees+ or c#ar&es s#all accr'e excl'sivel* to t#e LGU. AR TI CLE 21/. 0'n (ament al Pri nci !l es. " T#e $oll o%in& $' n(ament al !ri nci !l es s #all &ov er n t#e exercise o$ t#e taxin& an( ot#er reven'e,raisin& !o%ers o$ LGUs a3 T axat ion s #al l )e 'ni $or m in ea c# LGU. T# e 'ni $or mit * re4' ire ( is onl* %i t#i n t#e t err it ori al  'ris(iction o$ a !rovince+ a cit* + a m'nici!alit* + or a )aran&a*5 )3 Taxes+ $ees+ c #ar &es+ or o t#er im!os it ions s#al l 13 6e e 4'i ta)le a n( )ase (+ a s $ ar a s !r act ica )le + on t#e tax!a*e r s a)i lit * t o !a *5 23 6e l evie ( an( coll ecte ( onl* $ or !')l ic !'r !oses5 83 Not )e 'n 'st + exce ss ive + o!!ress ive+ or con$ is cator*5 93 Not )e contra r* to l a% + !')l ic !olic * + nati onal econ omi c !ol ic* + or in r est rai nt o$ t ra(e5 c3 Col lec tio n o$ l oca l tax es+ $ ees + c#a r&es+ or ot #er i m!osit ion s s#a ll i n no ca se )e l et to an* ! riv ate  !erson5 (3 T#e r even 'e col lec te( !'rs 'ant to t#e !rovis ions o$ t# is R'le s# all i n'r e sol el* t o t#e )e ne$ it o$ + an( )e s')ect to (is!osition )*+ t#e LGU lev*in& t#e tax+ $ee+ c#ar&e+ or ot#er im!osition 'nless ot#er%ise s!eci$icall* !rovi(e( in t#is R'le5 an( e3 Eac # LGU s #al l+ a s $ ar a s !r act ica )le + evolve a ! ro&res siv e s* ste m o$ taxati on. AR TICLE 22:. ;e$inition o$ Terms. " a3 A&ric'l t'ral Pr o('ct incl '(es t #e *iel( o$ t#e soil+ s'c# as corn+ rice+ %#eat+ r*e+ #a*+ cocon'ts+ s'&arcane+ to)acco+ root cro!s+ ve&eta)les+ $r'its+ $lo%ers+ an( t#eir )*,!ro('cts5 or(inar* salt5 all <in(s o$ $is#5 !o'ltr*5 an( livestoc< an( animal !ro('cts+ %#et#er in t#eir ori&inal $orm or not. T#e !#rase %#et#er in t#eir ori&inal $orm or not re$ers to t#e trans$ormation o$ sai( !ro('cts )* t#e $armer+ $is#er man+ !ro('cer or o%ner t#ro'&# t#e a!!lication o$ !rocesses to !reserve or ot#er%ise to  !re!are sai( !ro('cts $or t#e mar<et s'c# as $ree=in&+ (r*in&+ saltin&+ smo<in&+ or stri !!in& $or  !'r!oses o$ !reservin& or ot#er%ise !re!arin& sai( !ro('cts $or t #e mar<et. To )e consi(ere( an a&ric'lt'ral !ro('ct %#et#er in its ori&inal $orm or not+ its trans$ormation m'st #ave )een 'n(erta<en )* t#e $armer+ $is#erman+ !ro('cer or o%ner. A&ric'lt'ral !ro('cts as (e$ine( incl'(e t#ose t#at #ave 'n(er&one not onl* sim!le )'t even so!#isticate( !rocesses em!lo*in& a(vance( tec#nolo&ical means in !ac<a&in& li<e (resse( c#ic<en or &ro'n( co$$ee in !lastic )a&s or st*ro!or or ot#er !ac <a&in& materials inten(e( to !rocess an( !re!are t#e !ro('cts $or t#e mar<et. T#e term )*,!ro('cts s#all mean t#ose materials %#ic# in t#e c'ltivation or !rocessin& o$ an article remain over+ an( %#ic# are still o$ val'e an( mar<eta)le+ li<e co!ra ca<e $rom co!ra or molasses $rom s'&ar cane5 )3 Am' sement i s a !l eas 'ra )le (ive rsi on an( ent ert ainment. I t is s *non *mo's t o rel axat ion+ avocation+ !astime+ or $'n5 c3 Am' sement Pla ces incl '(e t #eat ers + ci nemas+ concert #al ls+ cir c'ses a n( ot #er !la ces o$ am'sement %#ere one see<s a(mission to entertain onesel$ )* seein& or vie%in& t#e s#o% or  !er$ormance5 (3 6's ine ss means tr a(e or commer cia l act ivi t* re &'l arl * en& a&e( i n as a means o$ l ive li# oo( or %it# a vie% to !ro$it5 c(asia

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RULE XXX

Local Government Taxation

PART ONE

General ProvisionsARTICLE 217. co!e. " T#e $ollo%in& r'les an( re&'lations s#all &overn t#e exercise )*

 !rovinces+ cities+ m'nici!alities+ an( )aran&a*s o$ t#eir taxin& an( ot#er reven'e,raisin& !o%ers. ac(

ARTICLE 21-. Po%er to Create o'rces o$ Reven'e. " Consistent %it# t#e )asic !olic* o$ locala'tonom*+ eac# LGU s#all exercise its !o%er to create its o%n so'rces o$ reven'e an( to lev* taxes+

$ees+ or c#ar&es+ s')ect to t#e !rovisions o$ t#is R'le. 'c# taxes+ $ees+ or c#ar&es s#all accr'e

excl'sivel* to t#e LGU.ARTICLE 21/. 0'n(amental Princi!les. " T#e $ollo%in& $'n(amental !rinci!les s#all &overn

t#e exercise o$ t#e taxin& an( ot#er reven'e,raisin& !o%ers o$ LGUs

a3 Taxation s#all )e 'ni$orm in eac# LGU. T#e 'ni$ormit* re4'ire( is onl* %it#in t#e territorial 'ris(iction o$ a !rovince+ a cit*+ a m'nici!alit*+ or a )aran&a*5

)3 Taxes+ $ees+ c#ar&es+ or ot#er im!ositions s#all

13 6e e4'ita)le an( )ase(+ as $ar as !ractica)le+ on t#e tax!a*ers a)ilit* to !a*5

23 6e levie( an( collecte( onl* $or !')lic !'r!oses583 Not )e 'n'st+ excessive+ o!!ressive+ or con$iscator*5

93 Not )e contrar* to la%+ !')lic !olic*+ national economic !olic*+ or in restraint o$ tra(e5

c3 Collection o$ local taxes+ $ees+ c#ar&es+ or ot#er im!ositions s#all in no case )e let to an* !rivate !erson5

(3 T#e reven'e collecte( !'rs'ant to t#e !rovisions o$ t#is R'le s#all in're solel* to t#e )ene$it o$+

an( )e s')ect to (is!osition )*+ t#e LGU lev*in& t#e tax+ $ee+ c#ar&e+ or ot#er im!osition 'nlessot#er%ise s!eci$icall* !rovi(e( in t#is R'le5 an(

e3 Eac# LGU s#all+ as $ar as !ractica)le+ evolve a !ro&ressive s*stem o$ taxation.

ARTICLE 22:. ;e$inition o$ Terms. " a3 A&ric'lt'ral Pro('ct incl'(es t#e *iel( o$ t#e soil+

s'c# as corn+ rice+ %#eat+ r*e+ #a*+ cocon'ts+ s'&arcane+ to)acco+ root cro!s+ ve&eta)les+ $r'its+ $lo%ers+an( t#eir )*,!ro('cts5 or(inar* salt5 all <in(s o$ $is#5 !o'ltr*5 an( livestoc< an( animal !ro('cts+

%#et#er in t#eir ori&inal $orm or not.

T#e !#rase %#et#er in t#eir ori&inal $orm or not re$ers to t#e trans$ormation o$ sai( !ro('cts )* t#e$armer+ $is#erman+ !ro('cer or o%ner t#ro'&# t#e a!!lication o$ !rocesses to !reserve or ot#er%ise to

 !re!are sai( !ro('cts $or t#e mar<et s'c# as $ree=in&+ (r*in&+ saltin&+ smo<in&+ or stri!!in& $or

 !'r!oses o$ !reservin& or ot#er%ise !re!arin& sai( !ro('cts $or t#e mar<et.To )e consi(ere( an a&ric'lt'ral !ro('ct %#et#er in its ori&inal $orm or not+ its trans$ormation m'st

#ave )een 'n(erta<en )* t#e $armer+ $is#erman+ !ro('cer or o%ner.

A&ric'lt'ral !ro('cts as (e$ine( incl'(e t#ose t#at #ave 'n(er&one not onl* sim!le )'t evenso!#isticate( !rocesses em!lo*in& a(vance( tec#nolo&ical means in !ac<a&in& li<e (resse( c#ic<en or

&ro'n( co$$ee in !lastic )a&s or st*ro!or or ot#er !ac<a&in& materials inten(e( to !rocess an( !re!are

t#e !ro('cts $or t#e mar<et.

T#e term )*,!ro('cts s#all mean t#ose materials %#ic# in t#e c'ltivation or !rocessin& o$ an articleremain over+ an( %#ic# are still o$ val'e an( mar<eta)le+ li<e co!ra ca<e $rom co!ra or molasses $rom

s'&ar cane5

)3 Am'sement is a !leas'ra)le (iversion an( entertainment. It is s*non*mo's to relaxation+avocation+ !astime+ or $'n5

c3 Am'sement Places incl'(e t#eaters+ cinemas+ concert #alls+ circ'ses an( ot#er !laces o$

am'sement %#ere one see<s a(mission to entertain onesel$ )* seein& or vie%in& t#e s#o% or !er$ormance5

(3 6'siness means tra(e or commercial activit* re&'larl* en&a&e( in as a means o$ liveli#oo( or

%it# a vie% to !ro$it5 c(asia

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e3 6an<s an( Ot#er 0inancial Instit'tions incl'(e non,)an< $inancial interme(iaries+ len(in&

investors+ $inance an( investment com!anies+ !a%ns#o!s+ mone* s#o!s+ ins'rance com!anies+ stoc<

mar<ets+ stoc< )ro<ers an( (ealers in sec'rities an( $orei&n exc#an&e+ as (e$ine( 'n(er a!!lica)le la%+

or r'les an( re&'lations t#ere'n(er5$3 Ca!ital Investment is t#e ca!ital %#ic# a !erson em!lo*s in an* 'n(erta<in&+ or %#ic# #e

contri)'tes to t#e ca!ital o$ a !artners#i!+ cor!oration+ or an* ot#er 'ri(ical entit* or association in a

 !artic'lar taxin& 'ris(iction5&3 C#ar&es re$ers to !ec'niar* lia)ilit*+ as rents or $ees a&ainst !ersons or !ro!ert*5

#3 Contractor incl'(es !ersons+ nat'ral or 'ri(ical+ not s')ect to !ro$essional tax 'n(er Article

22- o$ t#is R'le+ %#ose activit* consists essentiall* o$ t#e sale o$ all <in(s o$ services $or a $ee+re&ar(less o$ %#et#er or not t#e !er$ormance o$ t#e service calls $or t#e exercise or 'se o$ t#e !#*sical

or mental $ac'lties o$ s'c# contractor or #is em!lo*ees.

As 'se( in t#is Article+ t#e term contractor s#all incl'(e &eneral en&ineerin&+ &eneral )'il(in& an(s!ecialt* contractors as (e$ine( 'n(er a!!lica)le la%s5 $illin&+ (emolition an( salva&e %or<s

contractors5 !ro!rietors or o!erators o$ mine (rillin& a!!arat's5 !ro!rietors or o!erators o$ (oc<*ar(s5

 !ersons en&a&e( in t#e installation o$ %ater s*stem+ an( &as or electric li&#t+ #eat+ or !o%er+ !ro!rietors

or o!erators o$ smeltin& !lants5 en&ravin&+ !latin&+ an( !lastic lamination esta)lis#ments5 !ro!rietors or o!erators o$ esta)lis#ments $or re!airin&+ re!aintin&+ '!#olsterin&+ %as#in& or &reasin& o$ ve#icles+

#eav* e4'i!ment+ v'lcani=in&+ reca!!in& an( )atter* c#ar&in&5 !ro!rietors or o!erators o$ $'rnit're

s#o!s an( esta)lis#ments $or !lanin& or s'r$acin& an( rec'ttin& o$ l'm)er+ an( sa%mills 'n(er contractto sa% or c't lo&s )elon&in& to ot#ers5 !ro!rietors or o!erators o$ (r*,cleanin& or (*ein& esta)lis#ment+

steam la'n(ries+ an( la'n(ries 'sin& %as#in& mac#ines5 !ro!rietors or o%ners o$ s#o!s $or t#e re!air o$ 

an* <in( o$ mec#anical an( electrical (evices+ instr'ments+ a!!arat's+ or $'rnit're an( s#oe re!airin& )* mac#ine or an* mec#anical contrivance5 !ro!rietors or o!erators o$ esta)lis#ments or lots $or

 !ar<in& !'r!oses5 !ro!rietors or o!erators o$ tailor s#o!s+ (ress s#o!s+ milliners an( #atters+ )ea't*

 !arlors+ )ar)ers#o!s+ massa&e clinics+ sa'na+ T'r<is# an( %e(is# )at#s+ slen(eri=in& an( )o(*,

 )'il(in& saloons an( similar esta)lis#ment5 !#oto&ra!#ic st'(ios5 $'neral !arlors5 !ro!rietors oro!erators o$ #otels+ motels+ an( lo(&in& #o'ses5 !ro!rietors or o!erators o$ arrastre an( steve(orin&+

%are#o'sin&+ or $or%ar(in& esta)lis#ments+ master !l'm)ers+ smit#s+ an( #o'se or si&n !ainters5

 !rinters+ )oo<)in(ers+ lit#o&ra!#ers5 !')lis#ers exce!t t#ose en&a&e( in t#e !')lication or !rintin& o$an* ne%s!a!er+ ma&a=ine+ revie% or )'lletin %#ic# a!!ears at re&'lar intervals %it# $ixe( !rices $or

s')scri!tion an( sale an( %#ic# is not (evote( !rinci!all* to t#e !')lication o$ a(vertisements5

 )'siness a&ents+ !rivate (etective or %atc#man a&encies+ commercial an( immi&ration )ro<ers+ an(cinemato&ra!#ic $ilm o%ners+ lessors an( (istri)'tors5

i3 Cor!oration incl'(es !artners#i!s+ no matter #o% create( or or&ani=e(+ oint,stoc< com!anies+

 oint acco'nts c'entas en !artici!acion3+ associations or ins'rance com!anies )'t (oes not incl'(e&eneral !ro$essional !artners#i!s an( a oint vent're or consorti'm $orme( $or t#e !'r!ose o$

'n(erta<in& constr'ction !roects or en&a&in& in !etrole'm+ coal+ &eot#ermal+ an( ot#er ener&*

o!erations or consorti'm a&reement 'n(er a service contract %it# t#e &overnment. General !ro$essional

 !artners#i!s are !artners#i!s $orme( )* !ersons $or t#e sole !'r!ose o$ exercisin& t#eir common !ro$ession+ no !art o$ t#e income o$ %#ic# is (erive( $rom en&a&in& in an* tra(e or )'siness.

T#e term resi(ent $orei&n %#en a!!lie( to a cor!oration means a $orei&n cor!oration not ot#er%ise

or&ani=e( 'n(er t#e la%s o$ t#e P#ili!!ines )'t en&a&e( in tra(e or )'siness %it#in t#e P#ili!!ines53 Co'ntr*si(e an( 6aran&a* 6'siness Enter!rise re$ers to an* )'siness entit*+ association+ or

coo!erative re&istere( 'n(er t#e !rovisions o$ RA >-1:+ ot#er%ise <no%n as ?a&na Carta 0or

Co'ntr*si(e An( 6aran&a* 6'siness Enter!rises @ala<alan 2:35<3 ;ealer means one %#ose )'siness is to )'* an( sell merc#an(ise+ &oo(s an( c#attels as a

merc#ant. e stan(s imme(iatel* )et%een t#e !ro('cer or man'$act'rer an( t#e cons'mer an( (e!en(s

$or #is !ro$it not '!on t#e la)or #e )esto%s '!on #is commo(ities )'t '!on t#e s<ill an( $oresi&#t %it#

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%#ic# #e %atc#es t#e mar<et5

l3 0ee means a c#ar&e $ixe( )* la% or or(inance $or t#e re&'lation or ins!ection o$ a )'siness or

activit*. It s#all also incl'(e c#ar&es $ixe( )* la% or a&enc* $or t#e services o$ a !')lic o$$icer in t#e

(isc#ar&e o$ #is o$$icial ('ties5m3 0ranc#ise is a ri&#t or !rivile&e+ a$$ecte( %it# !')lic interest %#ic# is con$erre( '!on !rivate

 !ersons or cor!orations+ 'n(er s'c# terms an( con(itions as t#e &overnment an( its !olitical

s')(ivisions ma* im!ose in t#e interest o$ !')lic %el$are+ sec'rit*+ an( sa$et*5n3 Gross ales or Recei!ts incl'(e t#e total amo'nt o$ mone* or its e4'ivalent re!resentin& t#e

contract !rice+ com!ensation or service $ee+ incl'(in& t#e amo'nt c#ar&e( or materials s'!!lie( %it#

t#e services an( (e!osits or a(vance !a*ments act'all* or constr'ctivel* receive( ('rin& t#e taxa)le4'arter $or t#e services !er$orme( or to )e !er$orme( $or anot#er !erson excl'(in& (isco'nts i$

(etermina)le at t#e time o$ sales+ sales ret'rn+ excise tax+ an( val'e a((e( tax BAT35

o3 ?an'$act'rer incl'(es ever* !erson %#o+ )* !#*sical or c#emical !rocess+ alters t#e exteriortext're or $orm or inner s')stance o$ an* ra% materials or man'$act're( or !artiall* man'$act're(

 !ro('ct in s'c# manner as to !re!are it $or s!ecial 'se or 'ses to %#ic# it co'l( not #ave )een !'t in its

ori&inal con(ition+ or %#o )* an* s'c# !rocess+ alters t#e 4'alit* o$ an* s'c# ra% material or

man'$act're( or !artiall* man'$act're( !ro('cts so as to re('ce it to mar<eta)le s#a!e or !re!are it $or an* o$ t#e 'se o$ in('str*+ or %#o )* an* s'c# !rocess+ com)ines an* s'c# ra% material or

man'$act're( or !artiall* man'$act're( !ro('cts %it# ot#er materials or !ro('cts o$ t#e same or o$

(i$$erent <in(s an( in s'c# manner t#at t#e $inis#e( !ro('cts o$ s'c# !rocess or man'$act're can )e !'tto a s!ecial 'se or 'ses to %#ic# s'c# ra% material or man'$act're( or !artiall* man'$act're( in t#eir

ori&inal con(ition co'l( not #ave )een !'t+ an( %#o in a((ition+ alters s'c# ra% material or

man'$act're( or !artiall* man'$act're( !ro('cts+ or com)ines t#e same to !ro('ce s'c# $inis#e( !ro('cts $or t#e !'r!ose o$ t#eir sale or (istri)'tion to ot#ers an( not $or #is o%n 'se or cons'm!tion5

!3 ?ar&inal 0armer or 0is#erman re$ers to in(ivi('al en&a&e( in s')sistence $armin& or $is#in&

%#ic# s#all )e limite( to t#e sale+ )arter or exc#an&e o$ a&ric'lt'ral or marine !ro('cts !ro('ce( )*

#imsel$ an( #is imme(iate $amil*+ an( %#ose ann'al net income $rom s'c# $armin& o$ $is#in& (oes notexcee( 0i$t* T#o'san( Pesos P:+:::.::3 or t#e !overt* line esta)lis#e( )* NE;A $or t#e !artic'lar

re&ion or localit*+ %#ic#ever is #i&#er5

43 ?otor Be#icle means an* ve#icle !ro!elle( )* an* !o%er ot#er t#an m'sc'lar !o%er 'sin& t#e !')lic roa(s+ )'t excl'(in& roa( rollers+ trolle* cars+ street,s%ee!ers+ s!rin<lers+ la%n mo%ers+

 )'ll(o=ers+ &ra(ers+ $or<li$ts+ am!#i)ian tr'c<s+ an( cranes i$ not 'se( on !')lic roa(s+ ve#icle %#ic#

r'n onl* on rails or trac<s+ an( tractors+ trailers+ an( traction en&ines o$ all <in(s 'se( excl'sivel* $ora&ric'lt'ral !'r!oses5

r3 ?'nici!al Daters incl'(e not onl* streams+ la<es+ an( ti(al %aters %it#in t#e m'nici!alit*+ not

 )ein& t#e s')ect o$ !rivate o%ners#i! an( not com!rise( %it#in t#e national !ar<s+ !')lic $orest+tim)er lan(s+ $orest reserves or $is#er* reserves+ )'t also marine %aters incl'(e( )et%een t%o lines

(ra%n !er!en(ic'larl* to t#e &eneral coastline $rom !oints %#ere t#e )o'n(ar* lines o$ t#e

m'nici!alit* or cit* to'c# t#e sea at lo% ti(e an( a t#ir( line !arallel %it# t#e &eneral coastline an(

$i$teen 13 <ilometers $rom it. D#ere t%o 23 m'nici!alities are so sit'ate( on t#e o!!osite s#ores t#att#ere is less t#an $i$teen 13 <ilometers o$ marine %aters )et%een t#em+ t#e t#ir( line s#all )e e4'all*

(istant $rom o!!osite s#ores o$ t#e res!ective m'nici!alities5

s3 O!erator incl'(es t#e o%ner+ mana&er+ a(ministrator+ or an* ot#er !erson %#o o!erates or isres!onsi)le $or t#e o!eration o$ a )'siness esta)lis#ment or 'n(erta<in&5

t3 Pe((ler means an* !erson %#o+ eit#er $or #imsel$ or on commission+ travels $rom !lace to !lace

an( sells #is &oo(s or o$$ers to sell an( (eliver t#e same. D#et#er a !e((ler is a %#olesale !e((ler orretail !e((ler o$ a !artic'lar commo(it* s#all )e (etermine( $rom t#e (e$inition o$ %#olesale (ealer or

retail (ealer as !rovi(e( in t#is R'le5

'3 Persons mean ever* nat'ral or 'ri(ical )ein&+ s'sce!ti)le o$ ri&#ts an( o)li&ations or o$ )ein&

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t#e s')ect to le&al relations5

v3 Resi(ents re$er to nat'ral !ersons %#o #ave t#eir #a)it'al resi(ence in t#e !rovince+ cit*+ or

m'nici!alit* %#ere t#e* exercise t#eir civil ri&#ts an( $'l$ill t#eir civil o)li&ations+ an( to 'ri(ical

 !ersons $or %#ic# t#e la% or an* ot#er !rovision creatin& or reco&ni=in& t#em $ixes t#eir resi(ence in a !artic'lar !rovince+ cit*+ or m'nici!alit*. In t#e a)sence o$ s'c# la%+ 'ri(ical !ersons are resi(ents o$

t#e !rovince+ cit* or m'nici!alit* %#ere t#e* #ave t#eir le&al resi(ence or !rinci!al !lace o$ )'siness or 

%#ere t#e* con('ct t#eir !rinci!al )'siness or occ'!ation5%3 Retail means a sale %#ere t#e !'rc#aser )'*s t#e commo(it* $or #is o%n cons'm!tion+

irres!ective o$ t#e 4'antit* o$ t#e commo(it* sol(5

x3 Bessel incl'(es ever* t*!e o$ )oat+ cra$t+ or ot#er arti$icial contrivance 'se(+ or ca!a)le o$ )ein&'se(+ as a means o$ trans!ortation on %ater5

*3 D#ar$a&e means a $ee assesse( a&ainst t#e car&o o$ a vessel en&a&e( in $orei&n or (omestic

tra(e )ase( on 4'antit*+ %ei&#t+ or meas're receive( an(or (isc#ar&e( )* vessel5 an(=3 D#olesale means a sale %#ere t#e !'rc#aser )'*s or im!orts t#e commo(ities $or resale to

 !ersons ot#er t#an t#e en( 'ser re&ar(less o$ t#e 4'antit* o$ t#e transaction.

ARTICLE 221. Common Limitations on t#e Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Local

Government Units. " Unless ot#er%ise !rovi(e( in t#is R'le+ t#e exercise o$ t#e taxin& an( ot#erreven'e,raisin& !o%ers o$ !rovinces+ cities+ m'nici!alities+ an( )aran&a*s s#all not exten( to t#e lev*

o$ t#e $ollo%in&

a3 Income tax+ exce!t %#en levie( on )an<s an( ot#er $inancial instit'tions as !rovi(e( in Article282$3 o$ t#is R'le5

)3 ;oc'mentar* stam! tax5

c3 Taxes on estates+ in#eritance+ &i$ts+ le&acies an( ot#er ac4'isitions mortis ca'sa+ exce!t asot#er%ise !rovi(e( in Article 229 o$ t#is R'le5

(3 C'stoms ('ties+ re&istration $ees o$ vessel an( %#ar$a&e on %#arves+ tonna&e ('es+ an( all ot#er 

<in(s o$ c'stoms $ee+ c#ar&es an( ('es exce!t %#ar$a&e on %#arves constr'cte( an( maintaine( )* t#e

LGU concerne(5e3 Taxes+ $ee+ an( c#ar&es an( ot#er im!ositions '!on &oo(s carrie( into or o't o$+ or !assin&

t#ro'&# t#e territorial 'ris(ictions o$ LGUs in t#e &'ise o$ c#ar&es $or %#ar$a&e+ tolls $or )ri(&es or

ot#er%ise+ or ot#er taxes+ $ees or c#ar&es in an* $orm %#atsoever '!on s'c# &oo(s or merc#an(ise5$3 Taxes+ $ee+ or c#ar&es on a&ric'lt'ral an( a4'atic !ro('cts %#en sol( )* mar&inal $armers or

$is#ermen5

&3 Taxes on )'siness enter!rises certi$ie( )* t#e 6oar( o$ Investments as !ioneer or non,!ioneer$or a !erio( o$ six >3 an( $o'r 93 *ears+ res!ectivel*+ $rom t#e (ate o$ re&istration5

#3 Excise taxes on articles en'merate( 'n(er t#e National Internal Reven'e Co(e NIRC3+ as

amen(e(+ an( taxes+ $ees or c#ar&es on !etrole'm !ro('cts5i3 Percenta&e or Bal'e A((e( Tax BAT3 on sales+ )arters+ or exc#an&es or similar transactions on

&oo(s or services+ exce!t as ot#er%ise !rovi(e( #erein5

3 Taxes on t#e &ross recei!ts o$ trans!ortation contractors an( !ersons en&a&e( in t#e

trans!ortation o$ !assen&ers or $rei&#t )* #ire an( common carriers )* air+ lan( or %ater+ exce!t on t#eo!eration an( $ranc#isin& o$ tric*cles5

<3 Taxes on !remi'ms !ai( )* %a* o$ reins'rance or retrocession5

l3 Taxes+ $ees+ or c#ar&es $or t#e re&istration o$ motor ve#icles an( $or t#e iss'ance o$ all <in(s o$licences or !ermits $or t#e (rivin& t#ereo$+ exce!t tric*cles5

m3 Taxes+ $ees+ or ot#er c#ar&es on P#ili!!ine !ro('cts act'all* ex!orte(+ exce!t as ot#er%ise

 !rovi(e( in Article 282c3 o$ t#is R'le5n3 Taxes+ $ees+ or c#ar&es+ on co'ntr*si(e an( )aran&a* )'siness enter!rises an( coo!eratives ('l*

re&istere( 'n(er RA >-1:+ an( RA >/8-+ ot#er%ise <no%n as t#e Coo!eratives Co(e o$ t#e P#ili!!ines+

res!ectivel*5 an(

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o3 Taxes+ $ees or c#ar&es o$ an* <in( on t#e National Government+ its a&encies an(

instr'mentalities+ an( LGUs.

ARTICLE 222. Local Taxin& A't#orit*. " T#e !o%er to im!ose a tax+ $ee+ or c#ar&e or to

&enerate reven'e 'n(er t#e Co(e s#all )e exercise( )* t#e san&&'nian o$ t#e LGU concerne( t#ro'&#an a!!ro!riate tax or(inance or reven'e meas're.

PART TDO

ProvincesARTICLE 228. Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Provinces. " Exce!t as ot#er%ise

 !rovi(e( in t#is R'le+ t#e !rovince ma* lev* onl* t#e taxes+ $ees an( c#ar&es as #erein !rovi(e( $or.

ARTICLE 229. Tax on Trans$er o$ Real Pro!ert* O%ners#i!. " a3 T#e !rovince ma* im!ose atax on t#e sale+ (onation+ )arter+ or on an* ot#er mo(e o$ trans$errin& o%ners#i! or title o$ real !ro!ert*

at t#e rate o$ not more t#an $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e total consi(eration involve(

in t#e ac4'isition o$ t#e !ro!ert* or o$ t#e $air mar<et val'e in case t#e monetar* consi(erationinvolve( in t#e trans$er is not s')stantial+ %#ic#ever is #i&#er. T#e sale+ trans$er+ or ot#er (is!osition o$ 

real !ro!ert* !'rs'ant to RA >>7 s#all )e exem!t $rom t#is tax. c(t

T#e $air mar<et val'e as 'se( #erein s#all )e t#at re$lecte( in t#e !revailin& sc#e('le o$ $air mar<et

val'es enacte( )* t#e san&&'nian concerne(.)3 0or t#is !'r!ose+ t#e re&istrar o$ (ee(s o$ t#e !rovince concerne( s#all+ )e$ore re&isterin& an*

(ee(+ re4'ire t#e !resentation o$ t#e evi(ence o$ !a*ment o$ t#is tax. T#e !rovincial assessor s#all

li<e%ise ma<e t#e same re4'irement )e$ore cancellin& an ol( tax (eclaration an( iss'in& a ne% one in !lace t#ereo$. Notaries !')lic s#all $'rnis# t#e !rovincial treas'rer %it# a co!* o$ an* (ee( trans$errin&

o%ners#i! or title to an* real !ro!ert* %it#in t#irt* 8:3 (a*s $rom t#e (ate o$ notari=ation.

It s#all )e t#e ('t* o$ t#e seller+ (onor+ trans$eror+ exec'tor+ or a(ministrator to !a* t#e tax #ereinim!ose( %it#in sixt* >:3 (a*s $rom t#e (ate o$ t#e exec'tion o$ t#e (ee( or $rom t#e (ate o$ t#e

 !ro!ert* o%ners (eat#.

ARTICLE 22. Tax on 6'siness o$ Printin& an( P')lication. " T#e !rovince ma* im!ose a tax

on t#e )'siness o$ !ersons en&a&e( in t#e !rintin& an(or !')lication o$ )oo<s+ car(s+ !osters+ lea$lets+#an()ills+ certi$icates+ recei!ts+ !am!#lets+ an( ot#er !rinte( materials o$ similar nat're+ at a rate not

excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e &ross ann'al recei!ts $or t#e !rece(in&

calen(ar *ear.In t#e case o$ a ne%l* starte( )'siness+ t#e tax s#all not excee( one,t%entiet# 12:3 o$ one !ercent

1F3 o$ t#e ca!ital investment. In t#e s'ccee(in& calen(ar *ear+ re&ar(less o$ %#en t#e )'siness starte(

to o!erate+ t#e tax s#all )e )ase( on t#e &ross recei!ts $or t#e !rece(in& calen(ar *ear+ or an* $ractiont#ereo$ as !rovi(e( in t#is R'le.

T#e recei!ts $rom t#e !rintin& an(or !')lis#in& o$ )oo<s or ot#er rea(in& materials !rescri)e( )*

;EC as sc#ool texts or re$erences s#all )e exem!t $rom t#e tax #erein im!ose(.ARTICLE 22>. 0ranc#ise Tax. " a3 Not%it#stan(in& an* exem!tion &rante( )* an* la% or

ot#er s!ecial la%+ t#e !rovince ma* im!ose a tax on )'sinesses eno*in& a $ranc#ise+ at a rate not

excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e &ross ann'al recei!ts+ %#ic# s#all incl'(e

 )ot# cas# sales an( sales on acco'nt reali=e( ('rin& t#e !rece(in& calen(ar *ear %it#in its territorial 'ris(iction+ excl'(in& t#e territorial limits o$ an* cit* locate( in t#e !rovince.

)3 T#e !rovince s#all not im!ose t#e tax on )'siness eno*in& $ranc#ise o!eratin& %it#in t#e

territorial 'ris(iction o$ an* cit* locate( %it#in t#e !rovince.c3 T#e term )'sinesses eno*in& $ranc#ise s#all not incl'(e #ol(ers o$ certi$icates o$ !')lic

convenience $or t#e o!eration o$ !')lic 'tilit* ve#icles $or reason t#at s'c# certi$icates are not

consi(ere( as $ranc#ises.(3 In t#e case o$ a ne%l* starte( )'siness+ t#e tax s#all not excee( one,t%entiet# 12:3 o$ one

 !ercent 1F3 o$ t#e ca!ital investment. In t#e s'ccee(in& calen(ar *ear+ re&ar(less o$ %#en t#e )'siness

starte( to o!erate+ t#e tax s#all )e )ase( on t#e &ross recei!ts $or t#e !rece(in& calen(ar *ear+ or an*

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$raction t#ereo$+ as !rovi(e( in t#is Article.

T#e ca!ital investment to )e 'se( as )asis o$ t#e tax o$ a ne%l* starte( )'siness as #erein !rovi(e(

s#all )e (etermine( in t#e $ollo%in& manner

13 In t#e localit* %#ere t#e !rinci!al o$$ice o$ t#e )'siness is locate(+ t#e !ai(,'! ca!ital state( int#e articles o$ incor!oration+ in case o$ cor!orations+ or in an* similar (oc'ment in case o$ ot#er t*!es

o$ )'siness or&ani=ations or enter!rises+ s#all )e consi(ere( as t#e ca!ital investment.

23 D#ere t#ere is a )ranc# or sales o$$ice %#ic# commences )'siness o!erations ('rin& t#e same*ear as t#e !rinci!al o$$ice )'t %#ic# is locate( in anot#er !rovince or in a cit* o'tsi(e t#e !rovince+

t#e !ai(,'! ca!ital re$erre( to a)ove s#all )e re('ce( )* t#e amo'nt o$ t#e ca!ital investment ma(e $or

t#e sai( )ranc# or sales o$$ice %#ic# s#all )e taxa)le instea( )* t#e !rovince or cit* %#ere it is locate(.83 D#ere t#e ne%l* starte( )'siness is a )ranc# or sales o$$ice commencin& )'siness o!erations at

a *ear later t#an t#at o$ t#e !rinci!al o$$ice+ ca!ital investment s#all mean t#e total $'n(s investe( in t#e

 )ranc# or sales o$$ice.ARTICLE 227. Tax on an(+ Gravel+ an( Ot#er 'arr* Reso'rces. " a3 T#e !rovince ma* lev*

an( collect not more t#an ten !ercent 1:F3 o$ $air mar<et val'e in t#e localit* !er c')ic meter o$

or(inar* stones+ san(+ &ravel+ eart#+ an( ot#er 4'arr* reso'rces+ s'c# as )'t not limite( to marl+ mar)le+

&ranite+ volcanic cin(ers+ )asalt+ t'$$ an( roc< !#os!#ate+ extracte( $rom !')lic lan(s or $rom t#e )e(so$ seas+ la<es+ rivers+ streams+ cree<s+ an( ot#er !')lic %aters %it#in its territorial 'ris(iction.

)3 T#e !ermit to extract san(+ &ravel+ an( ot#er 4'arr* reso'rces s#all )e iss'e( excl'sivel* )* t#e

&overnor+ !'rs'ant to t#e or(inance o$ t#e san&&'nian& !anlala%i&an.c3 T#e !rocee(s o$ t#e tax on san(+ &ravel+ an( ot#er 4'arr* reso'rces s#all )e (istri)'te( as

$ollo%s

13 Province " T#irt* !ercent 8:F323 Com!onent cit* or m'nici!alit* %#ere t#e san(+ &ravel+ an( ot#er 4'arr* reso'rces are extracte(

 " T#irt* !ercent 8:F3

83 6aran&a* %#ere t#e san(+ &ravel+ an( ot#er 4'arr* reso'rces are extracte( " 0ort* !ercent

9:F3ARTICLE 22-. Pro$essional Tax. " a3 T#e !rovince ma* lev* an ann'al !ro$essional tax on

eac# !erson en&a&e( in t#e exercise or !ractice o$ #is !ro$ession re4'irin& &overnment examination at

s'c# amo'nt an( reasona)le classi$ication as t#e san&&'nian& !anlala%i&an ma* (etermine )'t s#all inno case excee( T#ree 'n(re( Pesos P8::.::3.

)3 Ever* !erson le&all* a't#ori=e( to !ractice #is !ro$ession s#all !a* t#e !ro$essional tax to t#e

 !rovince %#ere #e !ractice #is !ro$ession or %#ere #e maintains #is !rinci!al o$$ice in case #e !ractices#is !ro$ession in several !laces+ !rovi(e(+ #o%ever+ t#at s'c# !erson %#o #as !ai( t#e corres!on(in&

 !ro$essional tax s#all )e entitle( to !ractice #is !ro$ession in an* !art t#e P#ili!!ines %it#o't )ein&

s')ecte( to an* ot#er national or local tax+ license+ or $ee $or t#e !ractice o$ s'c# !ro$ession.c3 An* in(ivi('al or cor!oration em!lo*in& a !erson s')ect to !ro$essional tax s#all re4'ire

 !a*ment )* t#at !erson o$ t#e tax on #is !ro$ession )e$ore em!lo*ment an( ann'all* t#erea$ter.

(3 T#e !ro$essional tax s#all )e !a*a)le ann'all*+ on or )e$ore t#e t#irt*,$irst 81st3 (a* o$

Han'ar*. An* !erson $irst )e&innin& to !ractice a !ro$ession a$ter t#e mont# o$ Han'ar* m'st+ #o%ever+ !a* t#e $'ll tax )e$ore en&a&in& t#erein. A line o$ !ro$ession (oes not )ecome exem!t even i$

con('cte( %it# some ot#er !ro$ession $or %#ic# t#e tax #as )een !ai(. Pro$essionals excl'sivel*

em!lo*e( in t#e &overnment s#all )e exem!t $rom t#e !a*ment o$ t#is tax.e3 An* !erson s')ect to t#e !ro$essional tax s#all %rite in (ee(s+ recei!ts+ !rescri!tions+ re!orts+

 )oo<s o$ acco'nt+ !lans an( (esi&ns+ s'rve*s an( ma!s+ as t#e case ma* )e+ t#e n'm)er o$ t#e o$$icial

recei!t iss'e( to #im.$3 T#e !ro$essionals s')ect to tax #erein im!ose( are onl* t#ose %#o #ave !asse( t#e )ar

examinations+ or an* )oar( or ot#er examinations con('cte( )* t#e Pro$essional Re&'lation

Commission PRC3. 0or exam!le+ a la%*er %#o is also a Certi$ie( P')lic Acco'ntant CPA3 m'st !a*

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t#e !ro$essional tax im!ose( on la%*ers an( t#at $ixe( $or CPAs+ i$ #e is to !ractice )ot# !ro$essions.

0or t#e !'r!ose o$ collectin& t#e tax+ t#e !rovincial treas'rer or #is ('l* a't#ori=e( re!resentative s#all

re4'ire $rom s'c# !ro$essionals t#eir c'rrent re&istration car(s iss'e( )* com!etent a't#orit* )e$ore

acce!tin& !a*ment o$ t#eir !ro$essional tax $or t#e c'rrent *ear. T#e PRC s#all li<e%ise re4'ire t#e !ro$essionals !resentation o$ !roo$ o$ !a*ment )e$ore re&istration o$ !ro$essionals or rene%al o$ t#eir

licenses.

ARTICLE 22/. Am'sement Tax. " a3 T#e !rovince ma* lev* an am'sement tax to )e collecte($rom t#e !ro!rietors+ lessees+ or o!erators o$ t#eaters+ cinemas+ concert #alls+ circ'ses+ )oxin& sta(ia+

an( ot#er !laces o$ am'sement at a rate o$ not more t#an t#irt* !ercent 8:F3 o$ t#e &ross recei!ts $rom

a(mission $ees.)3 In t#e case o$ t#eaters or cinemas+ t#e tax s#all $irst )e (e('cte( an( %it##el( )* t#eir

 !ro!rietors+ lessees+ or o!erators an( !ai( to t#e !rovincial treas'rer )e$ore t#e &ross recei!ts are

(ivi(e( )et%een sai( !ro!rietors+ lessees+ or o!erators an( t#e (istri)'tors o$ t#e cinemato&ra!#ic$ilms.

c3 T#e #ol(in& o$ o!eras+ concerts+ (ramas+ recitals+ !aintin&s an( art ex#i)itions+ $lo%er s#o%s+

m'sical !ro&rams+ literar* an( oratorical !resentations exce!t !o!+ roc< or similar concerts s#all )e

exem!te( $rom t#e !a*ment o$ t#e am'sement tax+ s')ect to t#e &'i(elines iss'e( )* ;O0.(3 T#e san&&'nian& !anlala%i&an ma* !rescri)e t#e time+ manner+ terms an( con(itions+ incl'(in&

t#e iss'ance )* !ro!rietor+ lessee+ or o!erator o$ t#e t#eater or am'sement !lace o$ a(mission tic<ets

$or t#e !a*ment o$ tax. In case o$ $ra'( or $ail're to !a* t#e tax+ t#e san&&'nian& !anlala%i&an ma*im!ose s'c# s'rc#ar&es+ interests+ an( !enalties as it ma* (eem a!!ro!riate.

e3 T#e !rocee(s $rom t#e am'sement tax s#all )e s#are( e4'all* )* t#e !rovince an( t#e

m'nici!alit* %#ere s'c# am'sement !laces are locate(.ARTICLE 28:. Ann'al 0ixe( Tax $or Ever* ;eliver* Tr'c< or Ban o$ ?an'$act'rers or

Pro('cers+ D#olesalers o$ + ;ealers or Retailers in+ Certain Pro('cts. " a3 T#e !rovince ma* lev* an

ann'al $ixe( tax $or ever* tr'c<+ van+ or an* motor ve#icle 'se( )* man'$act'rers+ !ro('cers+

%#olesalers+ (ealers or retailers in t#e (eliver* or (istri)'tion o$ (istille( s!irits+ $ermente( li4'ors+so$t(rin<s+ ci&ars an( ci&arettes+ an( ot#er !ro('cts as ma* )e (etermine( )* t#e san&&'nian&

 !anlala%i&an+ to sales o'tlets+ or cons'mers+ %#et#er (irectl* or in(irectl*+ %it#in t#e !rovince in an

amo'nt not excee(in& 0ive 'n(re( Pesos P::.::3.)3 T#e man'$act'rers+ !ro('cers+ %#olesalers+ (ealers+ an( retailers re$erre( to in t#e imme(iatel*

 !rece(in& !ara&ra!# a3 #ereo$ s#all )e exem!t $rom t#e tax on !e((lers !rescri)e( in Article 282 &3

o$ t#is R'le.PART TREE

?'nici!alities

ARTICLE 281. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ ?'nici!alities. " Unless !rovi(e( in t#is R'le+ m'nici!alities ma* lev* taxes+ $ees+ an( c#ar&es not ot#er%ise levie( )* t#e

 !rovince.

ARTICLE 282. Tax on 6'siness. " T#e m'nici!alit* ma* im!ose taxes on t#e $ollo%in&

 )'sinessesa3 On man'$act'rers+ assem)lers+ re!ac<ers+ !rocessors+ )re%ers+ (istillers+ recti$iers+ an(

com!o'n(ers o$ li4'ors+ (istille( s!irits+ an( %ines or man'$act'rers o$ an* article o$ commerce o$

%#atever <in( or nat're+ in accor(ance %it# t#e $ollo%in& sc#e('leGross alesRecei!ts Amo'nt o$ 

0or t#e Prece(in& Calen(ar ear Tax Per Ann'm

Less t#an P1:+:::.:: P1>.::P1:+:::.:: or more )'t less t#an 1+:::.:: 22:.::

  1+:::.:: or more )'t less t#an 2:+:::.:: 8:2.::

  2:+:::.:: or more )'t less t#an 8:+:::.:: 99:.::

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  8:+:::.:: or more )'t less t#an 9:+:::.:: >>:.::

  9:+:::.:: or more )'t less t#an :+:::.:: -2.::

  :+:::.:: or more )'t less t#an 7+:::.:: 1+82:.::

  7+:::.:: or more )'t less t#an 1::+:::.:: 1+>:.::1::+:::.:: or more )'t less t#an 1:+:::.:: 2+2::.::

1:+:::.:: or more )'t less t#an 2::+:::.:: 2+7:.::

2::+:::.:: or more )'t less t#an 8::+:::.:: 8+-:.::8::+:::.:: or more )'t less t#an ::+:::.:: +::.::

::+:::.:: or more )'t less t#an 7:+:::.:: -+:::.::

7:+:::.:: or more )'t less t#an 1+:::+:::.:: 1:+:::.::1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 18+7:.::

2+:::+:::.:: or more )'t less t#an 8+:::+:::.:: 1>+::.::

8+:::+:::.:: or more )'t less t#an 9+:::+:::.:: 1/+-::.::9+:::+:::.:: or more )'t less t#an +:::+:::.:: 28+1::.::

+:::+:::.:: or more )'t less t#an >+::+:::.:: 29+87.::

>+::+:::.:: ? or more at a rate not excee(in&

 t#irt* seven an( a #al$   !ercent 87 12F3

 o$ one !ercent 1F3

T#e !rece(in& rates s#all a!!l* onl* to amo'nt o$ (omestic sales o$ man'$act'rers+ assem)lers+re!ac<ers+ !rocessors+ )re%ers+ (istillers+ recti$iers an( com!o'n(ers o$ li4'ors+ (istille( s!irits+ an(

%ines or man'$act'rers o$ an* article o$ commerce %#atever <in( or nat're ot#er t#an t#ose

en'merate( in !ara&ra!# c3 o$ t#is Article.)3 On %#olesalers+ (istri)'tors+ or (ealers in an* article o$ commerce o$ %#atever <in( or nat're in

accor(ance %it# t#e $ollo%in& sc#e('les

Gross alesRecei!ts Amo'nt o$ 

0or t#e Prece(in& Calen(ar ear Tax Per Ann'mLess t#an P1+:::.:: P1-.::

P1+:::.:: or more )'t less t#an 2+:::.:: 88.::

2+:::.:: or more )'t less t#an 8+:::.:: :.::8+:::.:: or more )'t less t#an 9+:::.:: 72.::

9+:::.:: or more )'t less t#an +:::.:: 1::.::

+:::.:: or more )'t less t#an >+:::.:: 121.::>+:::.:: or more )'t less t#an 7+:::.:: 198.::

7+:::.:: or more )'t less t#an -+:::.:: 1>.::

-+:::.:: or more )'t less t#an 1:+:::.:: 1-7.::1:+:::.:: or more )'t less t#an 1+:::.:: 22:.::

1+:::.:: or more )'t less t#an 2:+:::.:: 27.::

2:+:::.:: or more )'t less t#an 8:+:::.:: 88:.::

8:+:::.:: or more )'t less t#an 9:+:::.:: 99:.::9:+:::.:: or more )'t less t#an :+:::.:: >>:.::

:+:::.:: or more )'t less t#an 7+:::.:: //:.::

7+:::.:: or more )'t less t#an 1::+:::.:: 1+82:.::1::+:::.:: or more )'t less t#an 1:+:::.:: 1+-7:.::

1:+:::.:: or more )'t less t#an 2::+:::.:: 2+92:.::

2::+:::.:: or more )'t less t#an 8::+:::.:: 8+8::.::8::+:::.:: or more )'t less t#an ::+:::.:: 9+9::.::

::+:::.:: or more )'t less t#an 7:+:::.:: >+>::.::

7:+:::.:: or more )'t less t#an 1+:::+:::.:: -+-::.::

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1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 1:+:::.::

P2+:::+:::.:: or more at a rate not excee(in& $i$t*

 !ercent :F3 o$ one

 !ercent 1F3T#e )'sinesses en'merate( in !ara&ra!# a3 a)ove s#all no lon&er )e s')ect to t#e tax on %#olesalers+

(istri)'tors+ or (ealers !rovi(e( in t#is Article.

c3 On ex!orters+ an( on man'$act'rers+ millers+ !ro('cers+ %#olesalers+ (istri)'tors+ (ealers orretailers o$ essential commo(ities en'merate( #ere'n(er at a rate not excee(in& one,#al$ 123 o$ t#e

rates !rescri)e( in !ara&ra!#s a3+ )3 an( (3 o$ t#is Article

13 Rice an( corn523 D#eat or cassava $lo'r+ meat+ (air* !ro('cts+ locall* man'$act're(+ !rocesse( or !reserve(

$oo(+ s'&ar+ salt an( ot#er a&ric'lt'ral+ marine+ an( $res# %ater !ro('cts+ %#et#er in t#eir ori&inal state

or not583 Coo<in& oil an( coo<in& &as5

93 La'n(r* soa!+ (eter&ents+ an( me(icine5

3 A&ric'lt'ral im!lements+ e4'i!ment an( !ost,#arvest $acilities+ $ertili=ers+ !estici(es+

insectici(es+ #er)ici(es+ an( ot#er $arm in!'ts5 c(tai>3 Po'ltr* $ee(s an( ot#er animal $ee(s5

73 c#ool s'!!lies5 an(

-3 Cement.0or !'r!oses o$ t#is Article+ t#e term ex!orters s#all re$er to t#ose %#o are !rinci!all* en&a&e( in t#e

 )'siness o$ ex!ortin& &oo(s an( merc#an(ise+ as %ell as man'$act'rers an( !ro('cers %#ose &oo(s or

 !ro('cts are )ot# sol( (omesticall* an( a)roa(. T#e amo'nt o$ ex!ort sales s#all )e excl'(e( $rom t#etotal sales an( s#all )e s')ect to t#e rates not excee(in& one #al$ 123 o$ t#e rates !rescri)e( 'n(er

 !ara&ra!#s a3+ )3 an( (3 o$ t#is Article.

(3 On retailers+

Gross alesRecei!ts Rate o$ Tax0or t#e Prece(in& ear Per Ann'm

P9::+:::.:: or less 2F

more t#an P9::+:::.:: 1FT#e rate o$ t%o !ercent 2F3 !er ann'm s#all )e im!ose( on sales not excee(in& 0o'r 'n(re(

T#o'san( Pesos P9::+:::.::3+ %#ile t#e rate o$ one !ercent 1F3 !er ann'm s#all )e im!ose( on sales

in excess o$ t#e $irst 0o'r 'n(re( T#o'san( Pesos P9::+:::.::3.6aran&a*s+ #o%ever+ s#all #ave t#e excl'sive !o%er to lev* taxes+ as !rovi(e( 'n(er Article 29: a3 o$

t#is R'le+ on &ross sales or recei!ts o$ t#e !rece(in& calen(ar *ear o$ 0i$t* T#o'san( Pesos

P:+:::.::3 or less+ in t#e case o$ cities+ an( T#irt* T#o'san( Pesos P8:+:::.::3 or less+ in t#e caseo$ m'nici!alities.

e3 On contractors an( ot#er in(e!en(ent contractors+ in accor(ance %it# t#e $ollo%in& sc#e('le

Gross alesRecei!ts Amo'nt o$ 

0or t#e Prece(in& Calen(ar ear Tax Per Ann'mLess t#an P+:::.:: P27.:

P+:::.:: or more )'t less t#an 1:+:::.:: >1.>:

1:+:::.:: or more )'t less t#an 1+:::.:: 1:9.:1+:::.:: or more )'t less t#an 2:+:::.:: 1>.::

2:+:::.:: or more )'t less t#an 8:+:::.:: 27.::

8:+:::.:: or more )'t less t#an 9:+:::.:: 8-.::9:+:::.:: or more )'t less t#an :+:::.:: :.::

:+:::.:: or more )'t less t#an 7+:::.:: --:.::

7+:::.:: or more )'t less t#an 1::+:::.:: 1+82:.::

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1::+:::.:: or more )'t less t#an 1:+:::.:: 1+/-:.::

1:+:::.:: or more )'t less t#an 2::+:::.:: 2+>9:.::

2::+:::.:: or more )'t less t#an 2:+:::.:: 8+>8:.::

2:+:::.:: or more )'t less t#an 8::+:::.:: 9+>2:.::8::+:::.:: or more )'t less t#an 9::+:::.:: >+1>:.::

9::+:::.:: or more )'t less t#an ::+:::.:: -+2:.::

::+:::.:: or more )'t less t#an 7:+:::.:: /+2:.::7:+:::.:: or more )'t less t#an 1+:::+:::.:: 1:+2:.::

1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 11+::.::

2+:::+:::.:: or more at a rate not excee(in& $i$t* !ercent :F3 o$ 

  one !ercent 1F3

$3 On )an<s an( ot#er $inancial instit'tions+ at a rate not excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 on t#e &ross recei!ts o$ t#e !rece(in& calen(ar *ear (erive( $rom interest+ commissions

an( (isco'nts $rom len(in& activities+ income $rom $inancial leasin&+ (ivi(en(s+ rentals on !ro!ert* an(

 !ro$it $rom exc#an&e or sale o$ !ro!ert*+ ins'rance !remi'm.

All ot#er income an( recei!ts o$ )an<s an( $inancial instit'tions not ot#er%ise en'merate( a)ove s#all )e excl'(e( $rom t#e taxin& a't#orit* o$ t#e LGU concerne(.

&3 On !e((lers en&a&e( in t#e sale o$ an* merc#an(ise or article o$ commerce+ at a rate not

excee(in& 0i$t* Pesos P:.::3 !er !e((ler ann'all*.;eliver* tr'c<s+ vans+ or motor ve#icles 'se( )* man'$act'rers+ !ro('cers+ %#olesalers+ (ealers or

retailers en'merate( in Article 281 o$ t#is R'le s#all )e exem!t $rom t#e !e((lers tax im!ose( in t#is

R'le.#3 On an* )'siness+ not ot#er%ise s!eci$ie( in t#e !rece(in& !ara&ra!#s %#ic# t#e san&&'nian

concerne( ma* (eem !ro!er to tax !rovi(e( t#at on an* )'siness s')ect to t#e excise tax+ BAT+ or

 !ercenta&e tax 'n(er t#e NIRC+ as amen(e(+ t#e rate o$ tax s#all not excee( t%o !ercent 2F3 o$ &ross

sales or recei!ts o$ t#e !rece(in& calen(ar *ear an( !rovi(e( $'rt#er+ t#at in line %it# existin& national !olic*+ an* )'siness en&a&e( in t#e !ro('ction+ man'$act're+ re$inin&+ (istri)'tion or sale o$ oil+

&asoline+ an( ot#er !etrole'm !ro('cts s#all not )e s')ect to an* local tax im!ose( in t#is Article.

T#e san&&'nian concerne( ma* !rescri)e a sc#e('le o$ &ra('ate( tax rates )'t in no case to excee( t#erates !rescri)e( in t#is Article.

ARTICLE 288. 0ees an( C#ar&es. " T#e m'nici!alit* ma* im!ose an( collect s'c# reasona)le

$ees an( c#ar&es on )'sinesses an( occ'!ations an(+ exce!t as reserve( to t#e !rovince in Article 22-o$ t#is R'le+ on t#e !ractice o$ an* !ro$ession or callin& )e$ore an* !erson ma* en&a&e in s'c# )'siness

or occ'!ation+ or !ractice s'c# !ro$ession or callin& !rovi(e( t#at s'c# $ees or c#ar&es s#all onl* )e

commens'rate to t#e cost o$ iss'in& t#e license or !ermit an( t#e ex!enses inc'rre( in t#e con('ct o$t#e necessar* ins!ection or s'rveillance.

 No s'c# $ee or c#ar&e s#all )e )ase( on ca!ital investment or &ross sales or recei!ts o$ t#e !erson or

 )'siness lia)le t#ere$or.

ARTICLE 289. 0ees $or ealin& an( Licensin& o$ Dei&#ts an( ?eas'res. " a3 T#e m'nici!alit*ma* lev* $ees $or t#e sealin& an( licensin& o$ %ei&#ts an( meas'res at s'c# reasona)le rates as s#all )e

 !rescri)e( )* t#e san&&'nian& )a*an.

)3 T#e san&&'nian& )a*an s#all enact an a!!ro!riate or(inance !rescri)in& t#e necessar*re&'lations $or t#e 'se o$ %ei&#ts an( meas'res %#ic# s#all )e in accor(ance %it# s'c# &'i(elines as

ma* )e !rescri)e( )* t#e ;e!artment o$ cience an( Tec#nolo&*. T#e or(inance enacte( $or t#e

 !'r!ose s#all also !rescri)e t#e !enalties $or violations+ $ra'('lent !ractices+ an( 'nla%$'l !ossessionor 'se o$ instr'ments o$ %ei&#ts an( meas'res incl'(in& t#e criminal !enalt* t#ere$or in accor(ance

%it# Article 27/ o$ t#is R'le !rovi(e(+ #o%ever+ t#at t#e san&&'nian& )a*an concerne( ma* a't#ori=e

t#e m'nici!al treas'rer to settle an o$$ense not involvin& t#e commission o$ $ra'( )e$ore a case t#ere$or 

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is $ile( in co'rt+ '!on !a*ment o$ a com!romise !enalt* o$ not less t#an T%o 'n(re( Pesos P2::.::3.

c(tai

c3 T#e or(inance o$ t#e san&&'nian& )a*an ma* also em)o(* s'c# sanctions as ma* )e (eeme(

a!!ro!riate relative to t#e 'se o$ an* %ei&#t or meas're not !ro!erl* seale( or license( in accor(ance%it# !ara&ra!# )3 o$ t#is Article+ s'c# as t#e con$iscation o$ sai( ille&al %ei&#t or meas're+ or t#e

revocation o$ t#e !ermit or license o$ t#e )'siness+ an(or t#e $ilin& o$ a!!ro!riate c#ar&es a&ainst t#e

o%ner or o!erator o$ t#e )'siness.ARTICLE 28. 0is#er* Rentals+ 0ees+ an( C#ar&es. " a3 ?'nici!alities s#all #ave t#e

excl'sive a't#orit* to &rant $is#er* !rivile&es in t#e m'nici!al %aters an( im!ose rentals+ $ees+ or

c#ar&es t#ere$or in accor(ance %it# t#e !rovisions o$ t#is Article.)3 T#e san&&'nian& )a*an ma*

13 Grant $is#er* !rivile&es to erect $is# corrals+ o*ster+ m'ssel+ or ot#er a4'atic )e(s or )an&'s $r*

areas+ %it#in a (e$inite =one o$ t#e m'nici!al %aters+ as (etermine( )* t#e san&&'nian& )a*an. T#esan&&'nian& )a*an ma* re4'ire t#e con('ct o$ a !')lic )i((in& !rovi(e( t#at ('l* re&istere(

or&ani=ations an( coo!eratives o$ mar&inal $is#ermen s#all #ave t#e !re$erential ri&#t to s'c# $is#er*

 !rivile&es %it#o't )ein& re4'ire( to 'n(er&o t#e )i((in& an( !rovi(e( $'rt#er t#at in t#e a)sence o$

s'c# or&ani=ations an( coo!eratives or $ail're to exercise t#eir !re$erential ri&#t+ ot#er !arties ma* !artici!ate in t#e sai( !')lic )i((in& in con$ormit* %it# t#is !rovision.

23 Grant t#e !rivile&e to &at#er+ ta<e or catc# )an&'s $r*+ !ra%n $r* or <a%a&,<a%a& or $r* o$ ot#er 

s!ecies an( $is# $rom t#e m'nici!al %aters )* nets+ tra!s or ot#er $is#in& &ears to mar&inal $is#ermen$ree o$ an* rental+ $ee+ c#ar&e+ or an* ot#er im!osition %#atsoever.

83 Iss'e licenses $or t#e o!eration o$ $is#in& vessels o$ t#ree 83 tons or less $or %#ic# !'r!ose t#e

san&&'nian& )a*an s#all !rom'l&ate r'les an( re&'lations re&ar(in& t#e iss'ances o$ s'c# licenses to4'ali$ie( a!!licants 'n(er existin& la%s !rovi(e(+ #o%ever+ t#at t#e san&&'nian& )a*an concerne(

s#all+ )* a!!ro!riate or(inance+ !enali=e t#e 'se o$ ex!losives+ noxio's or !oisono's s')stances+

electricit*+ m'ro,ami+ an( ot#er (eleterio's met#o(s o$ $is#in& an( !rescri)e a criminal !enalt* t#ere$or 

in accor(ance %it# t#e !rovisions o$ t#is R'le an( !rovi(e( $'rt#er t#at t#e san&&'nian& )a*anconcerne( s#all #ave t#e a't#orit* to !rosec'te an* violation o$ t#e !rovisions o$ a!!lica)le $is#er*

la%s.

ARTICLE 28>. Rates o$ Tax in ?'nici!alities Dit#in t#e ?etro!olitan ?anila Area. " a3 T#em'nici!alities %it#in ??A ma* lev* t#e taxes on )'sinesses en'merate( in Article 282 o$ t#is R'le at

rates %#ic# s#all not excee( )* $i$t* !ercent :F3 t#e maxim'm rates !rescri)e( $or sai( )'sinesses.

)3 T#e sai( m'nici!alities %it#in ??A+ !'rs'ant to Article 27 o$ t#is R'le+ ma* lev* an( collectt#e taxes %#ic# ma* )e im!ose( )* t#e !rovince 'n(er Article 229+ 22+ 22>+ 227+ 22-+ 22/+ an( 28: o$ 

t#is R'le at rates not excee(in& t#ose !rescri)e( t#erein.

PART 0OUR Cities

ARTICLE 287. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Cities. " T#e cit* ma*

a3 Lev* an( collect an* o$ t#e taxes+ $ees+ c#ar&es an( ot#er im!ositions t#at t#e !rovince an( t#e

m'nici!alit* ma* im!ose. T#e rates o$ taxes t#at t#e cit* ma* lev* ma* excee( t#e maxim'm ratesallo%e( $or t#e !rovince or m'nici!alit* )* not more t#an $i$t* !ercent :F3 exce!t t#e rates o$

 !ro$essional an( am'sement taxes5 an(

)3 Lev* an( collect a !ercenta&e tax on an* )'siness not ot#er%ise s!eci$ie( 'n(er !ara&ra!#s a3to &3+ Article 288 o$ t#is R'le+ at rates not excee(in& t#ree !ercent 8F3 o$ t#e &ross sales or recei!ts

o$ t#e !rece(in& calen(ar *ear.

ARTICLE 28-. Uni$orm Tax Rates. " T#e rates o$ t#e $ollo%in& taxes s#all )e 'ni$orm $or t#ecit* an( t#e !rovince

a3 Pro$essional tax 'n(er Article 22- o$ t#is R'le %#ic# s#all not excee( T#ree 'n(re( Pesos

P8::.::35 an(

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)3 Am'sement tax on !ai( a(mission 'n(er Article 22/ o$ t#is R'le+ t#e rate o$ %#ic# s#all not )e

more t#an t#irt* !ercent 8:F3 o$ t#e &ross recei!ts $rom a(mission $ees.

ARTICLE 28/. #arin& o$ Tax on an(+ Gravel+ an( Ot#er 'arr* Reso'rces. " T#e !rocee(s

o$ t#e tax on san(+ &ravel+ an( ot#er 4'arr* reso'rces in #i&#l*,'r)ani=e( cities s#all )e (istri)'te( as$ollo%s

i&#l* 'r)ani=e( cit* " ixt* !ercent >:F3

6aran&a* %#ere t#e san(+&ravel+ an( ot#er 4'arr*

reso'rces are extracte( " 0ort* !ercent 9:F3

PART 0IBE6aran&a*s

ARTICLE 29:. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ 6aran&a*s. " T#e

 )aran&a*s ma* lev* t#e $ollo%in& taxes+ $ees+ an( c#ar&es+ %#ic# s#all excl'sivel* accr'e to t#em.a3 Taxes on stores or retailers %it# $ixe( )'siness esta)lis#ments %it# &ross sales or recei!ts o$ t#e

 !rece(in& calen(ar *ear o$ 0i$t* T#o'san( Pesos P:+:::.::3 or less+ in t#e case o$ a )aran&a* %it#in

a cit*+ an( T#irt* T#o'san( Pesos P8:+:::.::3 or less+ in t#e case o$ a )aran&a* %it#in a m'nici!alit*+

at rates not excee(in& one !ercent 1F3 on s'c# &ross sales or recei!ts.)3 ervice $ees or c#ar&es $or services ren(ere( in connection %it# t#e re&'lation or t#e 'se o$

 )aran&a*,o%ne( !ro!erties or service $acilities s'c# as !ala*+ co!ra+ or to)acco (r*ers.

c3 0ee $or t#e iss'ance o$ a )aran&a* clearance $or an* )'siness or activit* locate( or con('cte(%it#in t#e territorial 'ris(iction o$ t#e )aran&a* )e$ore t#e cit* or m'nici!alit* ma* iss'e a license or

 !ermit to sai( )'siness or activit*. casia

T#e a!!lication $or )aran&a* clearance s#all )e acte( '!on %it#in seven 73 %or<in& (a*s $rom t#e$ilin& t#ereo$. In t#e event t#at a clearance is not iss'e( or t#e a!!lication is (enie( %it#in t#e sai(

 !erio(+ t#e cit* or m'nici!alit* ma* iss'e t#e license or !ermit to t#e a!!licant.

T#e iss'ance o$ a )aran&a* clearance s#all not )e re4'ire( ('rin& C 1//2 in t#e case o$ existin&

 )'sinesses or activities a!!l*in& onl* $or rene%al o$ t#eir res!ective !ermits or licenses %it# t#e cit* or m'nici!alit* concerne(.

(3 Ot#er $ees an( c#ar&es on

13 Commercial )ree(in& o$ $i&#tin& coc<s.0or !'r!oses o$ im!osin& )aran&a* $ees an( c#ar&es on t#e commercial )ree(in& o$ $i&#tin& coc<s+

commercial )ree(in& s#all mean an ann'al sale o$ more t#an $ive 3 $i&#tin& coc<s o$ a ('l* re&istere(

 )ree(er.23 Coc<$i&#ts an( coc<!its

83 Places o$ recreation %#ic# c#ar&e a(mission $ees.

Places o$ recreation s#all incl'(e !laces o$ am'sement %#ere one see<s a(mission to entertain #imsel$ )* seein& or vie%in& t#e s#o% or !er$ormance or t#ose %#ere one am'ses #imsel$ )* (irect

 !artici!ation.

93 6ill)oar(s+ si&n)oar(s+ neon si&ns+ an( o't(oor a(vertisements at rates not less t#an t#e

$ollo%in&i3 6ill)oar(s or si&n)oar(s $or a(vertisement o$ )'siness+ !er s4'are meter or $raction t#ereo$

in&le,0ace( " Ten Pesos P1:.::3

;o')le,0ace( " T%ent* Pesos P2:.::3ii3 6ill)oar(s or si&ns $or !ro$essionals+ !er s4'are meter or $raction t#ereo$ Ei&#t Pesos P-.::3

iii3 6ill)oar(s+ si&ns+ or a(vertisements $or )'siness an( !ro$essions !ainte( on an* )'il(in& or

str'ct'res or ot#er%ise se!arate( or (etac#e( t#ere$rom+ !er s4'are meter t#ereo$ Nine Pesos P/.::3iv3 A(vertisement $or )'siness or !ro$essions )* means o$ sli(es in movies !a*a)le )* t#e

a(vertisers One 'n(re( Pesos P1::.::3

v3 A(vertisements )* means o$ ve#icles+ )alloons+ <ites+ etc. !er (a* or $raction t#ereo$ 0ort*

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Pesos P9:.::35 !er %ee< or $raction t#ereo$ ixt* Pesos P>:.::35 an( !er mont# or $raction t#ereo$

Ei&#t* Pesos P-:.::3. 0or t#e 'se o$ electric or neon li&#ts in )ill)oar(s 'n(er items i3 to iv3 a)ove+

t#e amo'nt o$ Ten Pesos P1:.::3 !er s4'are meter or $raction t#ereo$ s#all )e im!ose( in a((ition to

t#e a)ove !rescri)e( rates.vi3 i&ns+ si&n)oar(s+ )ill)oar(s+ a(vertisements+ incl'(in& stic<o'ts+ streamers+ li&#te( si&ns+ an(

ot#er electronic me(ia+ !osters+ !rivile&e !anels+ stone si&ns+ !lacar(s+ !rice stri!s+ )'ntin&s+ an( t#e

li<e+ )elon&in& to man'$act'rers or !ro('cers or !ro$essionals+ )'t (is!la*e( at t#e !lace %#ere a )'siness or !ro$ession is con('cte(+ or (is!la*e( on (eliver* or ot#er service an( !')lic 'tilit*

ve#icles+ s#all )e exem!t $rom s'c# $ees or c#ar&es !rovi(e( in !ara&ra!#s i3 an( ii3 a)ove an( ot#er

im!ositions t#at ma* )e im!ose( )* t#e )aran&a*.vii3 Privile&e !anels s#all )e s')ect to one #al$ 123 o$ t#e rates #erein !rescri)e(.

viii3 0or !'r!oses o$ t#is Article+ t#e ne% rates to )e a(o!te( )* t#e )aran&a* s#all a!!l* onl* to

 )ill)oar(s+ !rivile&e !anels+ si&ns+ an( o't(oor a(vertisements %#ic# s#all )e constr'cte( or installe(a$ter t#e e$$ectivit* o$ t#e Co(e.

PART IX

!ecial Provisions

ARTICLE 291. Retirement o$ 6'siness. " a3 An* !erson nat'ral or 'ri(ical+ s')ect to t#e taxon )'sinesses 'n(er Article 282 o$ t#is R'le s#all+ '!on termination o$ t#e )'siness+ s')mit a s%orn

statement o$ t#e &ross sales or recei!ts $or t#e calen(ar *ear. c(tai

0or !'r!oses #ereo$+ termination s#all mean t#at )'siness o!erations are sto!!e( com!letel*. An*c#an&e in o%ners#i!+ mana&ement an(or name o$ t#e )'siness s#all not constit'te termination as

contem!late( in t#is Article. Unless state( ot#er%ise+ ass'm!tion o$ t#e )'siness )* an* ne% o%ner or

mana&er or re,re&istration o$ t#e same )'siness 'n(er a ne% name %ill onl* )e consi(ere( )* t#e LGUconcerne( $or recor( !'r!oses in t#e co'rse o$ t#e rene%al o$ t#e !ermit or license to o!erate t#e

 )'siness.

T#e local treas'rer concerne( s#all see to it t#at t#e !a*ment o$ taxes o$ a )'siness is not avoi(e( )*

sim'latin& t#e termination or retirement t#ereo$. 0or t#is !'r!ose+ t#e $ollo%in& !roce('ral &'i(eliness#all )e strictl* o)serve(

13 T#e local treas'rer s#all assi&n ever* a!!lication $or t#e termination or retirement o$ )'siness to

an ins!ector in #is o$$ice %#o s#all &o to t#e a((ress o$ t#e )'siness on recor( to veri$* i$ it is reall* nolon&er o!eratin&. I$ t#e ins!ector $in(s t#at t#e )'siness is sim!l* !lace( 'n(er a ne% name+ mana&er

an(or ne% o%ner+ t#e local treas'rer s#all recommen( to t#e ma*or t#e (isa!!roval o$ t#e a!!lication

$or t#e termination or retirement o$ sai( )'siness. Accor(in&l*+ t#e )'siness contin'es to )ecome lia)le$or t#e !a*ment o$ all t#e taxes+ $ees an( c#ar&es im!ose( t#ereon 'n(er existin& local tax or(inances5

an(

23 In t#e case o$ a ne% o%ner to %#om t#e )'siness %as trans$erre( )* sale or ot#er $orm o$conve*ance+ sai( ne% o%ner s#all )e lia)le to !a* t#e tax or $ee $or t#e trans$er o$ t#e )'siness to #im

i$ t#ere is an existin& or(inance !rescri)in& s'c# trans$er tax.

)3 I$ it is $o'n( t#at t#e retirement or termination o$ t#e )'siness is le&itimate+ an( t#e tax ('e

t#ere$rom )e less t#an t#e tax ('e $or t#e c'rrent *ear )ase( on t#e &ross sales or recei!ts+ t#e(i$$erence in t#e amo'nt o$ t#e tax s#all )e !ai( )e$ore t#e )'siness is consi(ere( o$$iciall* retire( or

terminate(.

c3 T#e !ermit iss'e( to a )'siness retirin& or terminatin& its o!erations s#all )e s'rren(ere( to t#elocal treas'rer %#o s#all $ort#%it# cancel t#e same an( recor( s'c# cancellation in #is )oo<s.

ARTICLE 292. Relate( or Com)ine( 6'sinesses. " a3 T#e con('ct or o!eration o$ t%o or more

relate( )'sinesses !rovi(e( in Article 282 o$ t#is R'le )* an* one !erson+ nat'ral or 'ri(ical+ s#allre4'ire t#e iss'ance o$ a se!arate !ermit or license to eac# )'siness.

)3 I$ a !erson con('cts or o!erates t%o 23 or more relate( )'sinesses %#ic# are s')ect to t#e

same rate o$ im!osition+ t#e tax s#all )e com!'te( on t#e )asis o$ t#e com)ine( total &ross sales or

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recei!ts o$ t#e sai( t%o 23 or more relate( )'sinesses.

c3 I$+ #o%ever+ t#e )'sinesses o!erate( )* one !erson are &overne( )* se!arate tax sc#e('les or

t#e rates o$ t#e taxes are (i$$erent+ t#e taxa)le &ross sales or recei!ts o$ eac# )'siness s#all )e re!orte(

in(e!en(entl* an( t#e tax t#ereon s#all )e com!'te( on t#e )asis o$ t#e a!!ro!riate sc#e('le.ARTICLE 298. it's o$ t#e Tax. " a3 ;e$inition o$ Terms " 

13 Princi!al O$$ice " t#e #ea( or main o$$ice o$ t#e )'siness a!!earin& in t#e !ertinent (oc'ments

s')mitte( to t#e ec'rities an( Exc#an&e Commission+ or t#e ;e!artment o$ Tra(e an( In('str*+ orot#er a!!ro!riate a&encies+ as t#e case ma* )e.

T#e cit* or m'nici!alit* s!eci$icall* mentione( in t#e articles o$ incor!oration or o$$icial re&istration

 !a!ers as )ein& t#e o$$icial a((ress o$ sai( !rinci!al o$$ice s#all )e consi(ere( as t#e sit's t#ereo$.In case t#ere is a trans$er or relocation o$ t#e !rinci!al o$$ice to anot#er cit* or m'nici!alit*+ it s#all )e

t#e ('t* o$ t#e o%ner+ o!erator or mana&er o$ t#e )'siness to &ive ('e notice o$ s'c# trans$er or

relocation to t#e local c#ie$ exec'tives o$ t#e cities or m'nici!alities concerne( %it#in $i$teen 13 (a*sa$ter s'c# trans$er or relocation is e$$ecte(.

23 6ranc# or ales O$$ice " a $ixe( !lace in a localit* %#ic# con('cts o!erations o$ t#e )'siness

as an extension o$ t#e !rinci!al o$$ice. O$$ices 'se( onl* as (is!la* areas o$ t#e !ro('cts %#ere no

stoc<s or items are store( $or sale+ alt#o'&# or(ers $or t#e !ro('cts ma* )e receive( t#ereat+ are not )ranc# or sales o$$ices as #erein contem!late(. A %are#o'se %#ic# acce!ts or(ers an(or iss'es sales

invoices in(e!en(ent o$ a )ranc# %it# sales o$$ice s#all )e consi(ere( as a sales o$$ice.

83 Dare#o'se " a )'il(in& 'tili=e( $or t#e stora&e o$ !ro('cts $or sale an( $rom %#ic# &oo(s ormerc#an(ise are %it#(ra%n $or (eliver* to c'stomers or (ealers+ or )* !ersons actin& in )e#al$ o$ t#e

 )'siness. A %are#o'se t#at (oes not acce!t or(ers an(or iss'e sales invoices as a$orementione( s#all

not )e consi(ere( a )ranc# or sales o$$ice.93 Plantation " a tract o$ a&ric'lt'ral lan( !lante( to trees or see(lin&s %#et#er $r'it )earin& or

not+ 'ni$orml* s!ace( or see(e( )* )roa(cast met#o(s or normall* arran&e( to allo% #i&#est

 !ro('ction. 0or !'r!oses o$ t#is Article+ inlan( $is#in& &ro'n( s#all )e consi(ere( as !lantation.

3 Ex!erimental 0arms " a&ric'lt'ral lan(s 'tili=e( )* a )'siness or cor!oration to con('ctst'(ies+ tests+ researc#es or ex!eriments involvin& a&ric'lt'ral+ a&ri)'siness+ marine+ or a4'atic+

livestoc<+ !o'ltr*+ (air* an( ot#er similar !ro('cts $or t#e !'r!ose o$ im!rovin& t#e 4'alit* an(

4'antit* o$ &oo(s or !ro('cts.On,site sales o$ commercial 4'antit* ma(e in ex!erimental $arms s#all )e similarl* im!ose( t#e

corres!on(in& tax 'n(er Article 282 an( allocate( in !ara&ra!# )3 o$ t#is Article.

)3 ales Allocation " 13 All sales ma(e in a localit* %#ere t#ere is a )ranc# or sales o$$ice or %are#o'se s#all )e

recor(e( in sai( )ranc# or sales o$$ice or %are#o'se an( t#e tax s#all )e !a*a)le to t#e cit* or

m'nici!alit* %#ere t#e same is locate(.23 In cases %#ere t#ere is no s'c# )ranc#+ sales o$$ice+ or %are#o'se in t#e localit* %#ere t#e sale

is ma(e+ t#e sale s#all )e recor(e( in t#e !rinci!al o$$ice alon& %it# t#e sales ma(e )* sai( !rinci!al

o$$ice an( t#e tax s#all accr'e to t#e cit* or m'nici!alit* %#ere sai( !rinci!al o$$ice is locate(.

83 In cases %#ere t#ere is a $actor*+ !roect o$$ice+ !lant or !lantation in !'rs'it o$ )'siness+ t#irt* !ercent 8:F3 o$ all sales recor(e( in t#e !rinci!al o$$ice s#all )e taxa)le )* t#e cit* or m'nici!alit*

%#ere t#e !rinci!al o$$ice is locate( an( sevent* !ercent 7:F3 o$ all sales recor(e( in t#e !rinci!al

o$$ice s#all )e taxa)le )* t#e cit* or m'nici!alit* %#ere t#e $actor*+ !roect o$$ice+ !lant or !lantation islocate(. LGUs %#ere onl* ex!erimental $arms are locate( s#all not entitle( to t#e sales allocation

 !rovi(e( in t#is s')!ara&ra!#.

93 In case o$ a !lantation locate( in a localit* ot#er t#an t#at %#ere t#e $actor* is locate(+ t#esevent* !ercent 7:F3 sales allocation s#all )e (ivi(e( as $ollo%s

i3 ixt* !ercent >:F3 to t#e cit* or m'nici!alit* %#ere t#e $actor* is locate(5 an(

ii3 0ort* !ercent 9:F3 to t#e cit* or m'nici!alit* %#ere t#e !lantation is locate(.

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3 In cases %#ere t#ere are t%o 23 or more $actories+ !roect o$$ices+ !lants or !lantations locate(

in (i$$erent localities+ t#e sevent* !ercent 7:F3 sales allocation s#all )e !rorate( amon& t#e localities

%#ere s'c# $actories+ !roect o$$ices+ !lants+ an( !lantations are locate( in !ro!ortion to t#eir res!ective

vol'mes o$ !ro('ction ('rin& t#e !erio( $or %#ic# t#e tax is ('e. In t#e case o$ !roect o$$ices o$service an( ot#er in(e!en(ent contractors+ t#e term !ro('ction s#all re$er to t#e cost o$ !roects

act'all* 'n(erta<en ('rin& t#e tax !erio(.

>3 T#e sales allocation in !ara&ra!# )3 #ereo$ s#all )e a!!lie( irres!ective o$ %#et#er or not salesare ma(e in t#e localit* %#ere t#e $actor*+ !roect o$$ice+ !lant or !lantation is locate(. In case o$ sales

ma(e )* t#e $actor*+ !roect o$$ice+ !lant or !lantation+ t#e sale s#all )e covere( )* s')!ara&ra!#s 13

or 23 a)ove.73 In case o$ man'$act'rers or !ro('cers %#ic# en&a&e t#e services o$ an in(e!en(ent contractor to

 !ro('ce or man'$act're some o$ t#eir !ro('cts+ t#ese r'les on sit's o$ taxation s#all a!!l* exce!t t#at

t#e $actor* or !lant an( %are#o'se o$ t#e contractor 'tili=e( $or t#e !ro('ction an( stora&e o$ t#eman'$act'rers !ro('cts s#all )e consi(ere( as t#e $actor* or !lant an( %are#o'se o$ t#e man'$act'rer.

c3 Port o$ Loa(in& " T#e cit* or m'nici!alit* %#ere t#e !ort o$ loa(in& is locate( s#all not lev*

an( collect t#e tax im!osa)le in Article 282 o$ t#is R'le 'nless t#e ex!orter maintains in sai( cit* or

m'nici!alit* its !rinci!al o$$ice+ a )ranc#+ sales o$$ice or %are#o'se+ $actor*+ !lant+ or !lantation in%#ic# case+ t#e r'le on t#e matter s#all a!!l* accor(in&l*.

(3 ales ma(e )* ro'te tr'c<s+ vans+ or ve#icles " 

13 0or ro'te sales ma(e in a localit* %#ere a man'$act'rer+ !ro('cer+ %#olesaler+ retailer or (ealer#as a )ranc# or sales o$$ice or %are#o'se+ t#e sales are recor(e( in t#e )ranc#+ sales o$$ice or

%are#o'se an( t#e tax ('e t#ereon is !ai( to t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is

locate(.23 0or ro'te sales ma(e in a localit* %#ere a man'$act'rer+ !ro('cer+ %#olesaler+ retailer or (ealer

#as no )ranc#+ sales o$$ice or %are#o'se+ t#e sales are recor(e( in t#e )ranc#+ sales o$$ice or %are#o'se

$rom %#ere t#e ro'te tr'c<s %it#(ra% t#eir !ro('cts $or sale+ an( t#e tax ('e on s'c# sales is !ai( to

t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is locate(.83 6ase( on s')!ara&ra!#s 13 an( 23 a)ove+ LGUs %#ere ro'te tr'c<s (eliver merc#an(ise

cannot im!ose an* tax on sai( tr'c<s exce!t t#e ann'al $ixe( tax a't#ori=e( to )e im!ose( )* t#e

 !rovince in Article 28: o$ t#is R'le on ever* (eliver* tr'c< or van or an* motor ve#icle 'se( )*man'$act'rers+ !ro('cers+ %#olesalers+ (ealers+ or retailers in t#e (eliver* or (istri)'tion o$ (istille(

s!irits+ $ermente( li4'ors+ so$t (rin<s+ ci&ars an( ci&arettes+ an( ot#er !ro('cts as ma* )e (etermine(

 )* t#e san&&'nian& !anlala%i&an+ an( )* t#e cit*+ !'rs'ant to Article 228 o$ t#is R'le.93 In a((ition to t#is ann'al $ixe( tax+ cities ma* also collect $rom same man'$act'rers+ !ro('cers+

%#olesalers+ retailers+ an( (ealers 'sin& ro'te tr'c<s a ma*ors !ermit $ee %#ic# s#all )e im!ose( in a

local tax or(inance !'rs'ant to Article 288 in relation to Article 222 o$ t#is R'le.PART EBEN

Common Reven'e,Raisin& Po%ers

ARTICLE 299. Common Reven'e,Raisin& Po%ers. " Provinces+ cities+ m'nici!alities+ an(

 )aran&a*sa3 ?a* im!ose an( collect $ees an( service or 'ser c#ar&es $or an* service ren(ere( )* LGUs in

an amo'nt reasona)l* commens'rate to s'c# service !rovi(e( t#at no service c#ar&e s#all )e )ase( on

ca!ital investments or &ross sales or recei!ts o$ t#e !ersons or )'siness lia)le t#ere$or. c(asia)3 #all exercise t#e !o%er to collect c#ar&es $or services ren(ere( )* LGUs in connection %it#

t#e o!eration o$ !')lic 'tilities o%ne(+ o!erate(+ an( maintaine( )* t#em at rates to )e $ixe( )* t#e

san&&'nian concerne(.LGUs ma* !rescri)e t#e terms an( con(itions+ t#ro'&# an a!!ro!riate or(inance enacte( )* t#eir

san&&'nians+ $or t#e 'se o$ an* !')lic roa(+ !ier or %#ar$+ %ater%a*+ )ri(&e+ or $err* or

telecomm'nication s*stem+ $'n(e( an( constr'cte( )* t#em+ an( $ix reasona)le toll $ees an( service

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c#ar&es $or t#e 'se t#ereo$ !rovi(e( t#at t#e $ollo%in& !ersons s#all )e exem!te( $rom t#e !a*ment o$

sai( toll $ees an( c#ar&es

13 O$$icers an( enliste( men o$ t#e Arme( 0orces o$ t#e P#ili!!ines an( mem)ers o$ t#e P#ili!!ine

 National Police on mission523 Post O$$ice !ersonnel (eliverin& mail5

83 Persons %#o are !#*sicall* #an(ica!!e(5 an(

93 ;isa)le( citi=ens %#o are sixt*,$ive >3 *ears or ol(er.c3 T#e collection o$ toll $ees an( c#ar&es ma* )e (iscontin'e( )* t#e san&&'nian concerne( %#en

 !')lic sa$et* an( %el$are so re4'ires.

PART EIGTComm'nit* Tax

ARTICLE 29. Comm'nit* Tax. " Cities or m'nici!alities ma* lev* an ann'al comm'nit* tax

in lie' o$ t#e resi(ence tax $ormerl* levie( an( collecte( in ection 8- o$ P; 281+ as amen(e(.Accor(in&l*+ all cities an( m'nici!alities s#all enact $or t#e !'r!ose+ a tax or(inance to ta<e e$$ect as o$ 

Han'ar* 1+ 1//2.

0or !'r!oses o$ enactment o$ a local tax or(inance lev*in& a comm'nit* tax+ t#e con('ct o$ a !')lic

#earin& !rovi(e( in Article 279 o$ t#is R'le s#all no lon&er )e re4'ire(.ARTICLE 29>. Lev* or Im!osition. " T#e lev* or im!osition o$ comm'nit* tax )* a cit* or

m'nici!alit* s#all )e &overne( )* t#e $ollo%in& r'les an( &'i(elines

a3 In(ivi('als lia)le to t#e !a*ment o$ comm'nit* tax " 13 Ever* in#a)itant o$ t#e P#ili!!ines ei&#teen 1-3 *ears o$ a&e or over %#o #as )een re&'larl*

em!lo*e( on a %a&e or salar* )asis $or at least t#irt* 8:3 consec'tive %or<in& (a*s ('rin& an*

calen(ar *ear523 An in(ivi('al %#o is en&a&e( in )'siness or occ'!ation5

83 An in(ivi('al %#o o%ns real !ro!ert* %it# an a&&re&ate assesse( val'e o$ One T#o'san( Pesos

P1+:::.::3 or more5

93 An in(ivi('al %#o is re4'ire( )* la% to $ile an income tax ret'rn.)3 Rate o$ comm'nit* tax !a*a)le )* in(ivi('als " 

13 T#e rate o$ comm'nit* tax t#at ma* )e levie( an( collecte( $rom sai( in(ivi('als s#all )e 0ive

Pesos P.::3 !l's an a((itional tax o$ One Peso P1.::3 $or ever* One T#o'san( Pesos P1+:::.::3 o$income re&ar(less o$ %#et#er $rom )'siness+ exercise o$ !ro$ession+ or $rom !ro!ert* )'t %#ic# in no

case s#all excee( 0ive T#o'san( Pesos P+:::.::3.

23 In case o$ #'s)an( an( %i$e+ eac# o$ t#em s#all )e lia)le to !a* t#e )asic tax o$ 0ive PesosP.::3+ )'t t#e a((itional tax im!osa)le on t#e #'s)an( an( %i$e s#all )e One Peso P1.::3 $or ever*

One T#o'san( Pesos P1+:::.::3 o$ income $rom t#e total !ro!ert* o%ne( )* t#em an(or t#e total

&ross recei!ts or earnin&s (erive( )* t#em.c3 H'ri(ical !ersons lia)le to t#e !a*ment o$ comm'nit* tax " Ever* cor!oration+ no matter #o%

create( or or&ani=e(+ %#et#er (omestic or resi(ent $orei&n+ en&a&e( in or (oin& )'siness in t#e

P#ili!!ines s#all !a* comm'nit* tax o$ 0ive 'n(re( Pesos P::.::3 an( an a((itional tax+ %#ic#+ in

no case+ s#all excee( Ten T#o'san( Pesos P1:+:::.::3 in accor(ance %it# t#e $ollo%in& sc#e('le13 0or ever* 0ive T#o'san( Pesos P+:::.::3 %ort# o$ real !ro!ert* in t#e P#ili!!ines o%ne( )*

t#e 'ri(ical entit* ('rin& t#e !rece(in& *ear+ )ase( on t#e assesse( val'e 'se( $or t#e !a*ment o$ t#e

real !ro!ert* tax 'n(er existin& la%s " T%o !esos P2.::35 an(23 0or ever* 0ive T#o'san( Pesos P+:::.::3 o$ &ross recei!ts or earnin&s (erive( $rom t#e

 )'siness in t#e P#ili!!ines ('rin& t#e !rece(in& *ear " T%o !esos P2.::3.

T#e (ivi(en(s receive( )* a cor!oration $rom anot#er cor!oration s#all+ $or t#e !'r!ose o$ t#ea((itional tax+ )e consi(ere( as !art o$ t#e &ross recei!ts or earnin&s o$ sai( cor!oration.

(3 Exem!tions " T#e $ollo%in& are exem!t $rom t#e !a*ment o$ comm'nit* tax

13 ;i!lomatic an( cons'lar re!resentatives5 an(

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23 Transient visitors %#en t#eir sta* in t#e P#ili!!ines (oes not excee( t#ree 83 mont#s.

e3 Place o$ Pa*ment " 

13 Comm'nit* tax s#all )e !ai( in t#e cit* or m'nici!alit* %#ere t#e resi(ence o$ t#e in(ivi('al is

locate(+ or in t#e cit* or m'nici!alit* %#ere t#e !rinci!al o$$ice o$ t#e 'ri(ical entit* is locate(.23 It s#all )e 'nla%$'l $or an* cit* or m'nici!al treas'rer to collect comm'nit* tax o'tsi(e t#e

territorial 'ris(iction o$ t#e cit* or t#e m'nici!alit*.

83 In case o$ )ranc#+ sales o$$ice or %are#o'se %#ere sales are ma(e an( recor(e(+ corres!on(in&comm'nit* tax s#all )e !ai( to t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is locate(.

93 An* !erson+ nat'ral or 'ri(ical+ %#o !a*s comm'nit* tax to a cit* or m'nici!alit* ot#er t#an

t#e cit* or m'nici!alit* %#ere #is resi(ence+ or !rinci!al o$$ice in t#e case o$ 'ri(ical !ersons+ islocate( s#all remain lia)le to !a* s'c# tax to t#e cit* or m'nici!alit* concerne(.

$3 Time $or Pa*ment " 

13 Comm'nit* tax s#all accr'e on t#e $irst 1st3 (a* o$ Han'ar* o$ eac# *ear an( s#all )e !ai( notlater t#an t#e last (a* o$ 0e)r'ar* o$ eac# *ear.

23 I$ a !erson reac#es t#e a&e o$ ei&#teen 1-3 *ears or ot#er%ise loses t#e )ene$it o$ exem!tion on

or )e$ore t#e last (a* o$ H'ne+ #e s#all )e lia)le $or t#e !a*ment o$ comm'nit* tax on t#e (a* #e

reac#es s'c# a&e or '!on t#e (a* t#e exem!tion en(s. I$ a !erson reac#es t#e a&e o$ ei&#teen 1-3 *earsor loses t#e )ene$it o$ exem!tion on or )e$ore t#e last (a* o$ ?arc#+ #e s#all #ave t%ent* 2:3 (a*s

%it#in %#ic# to !a* t#e comm'nit* tax %it#o't )ecomin& (elin4'ent.

83 Persons %#o come to resi(e in t#e P#ili!!ines or reac# t#e a&e o$ ei&#teen 1-3 *ears on or a$ter t#e $irst 1st3 (a* o$ H'l* o$ an* *ear+ or %#o cease to )elon& to an exem!t class on or a$ter t#e same

(ate+ s#all not )e s')ect to comm'nit* tax $or t#at *ear.

93 Cor!orations esta)lis#e( an( or&ani=e( on or )e$ore t#e last (a* o$ H'ne s#all )e lia)le $or t#e !a*ment o$ comm'nit* tax $or t#at *ear. Cor!orations esta)lis#e( an( or&ani=e( on or )e$ore t#e last

(a* o$ ?arc# s#all #ave t%ent* 2:3 (a*s %it#in %#ic# to !a* t#e comm'nit* tax %it#o't )ecomin&

(elin4'ent. Cor!orations esta)lis#e( an( or&ani=e( on or a$ter t#e $irst (a* o$ H'l* s#all not )e s')ect

to comm'nit* tax $or t#at *ear.&3 Penalties $or t#e !a*ment " I$ t#e tax is not !ai( %it#in t#e !rescri)e( !erio(+ t#ere s#all )e

a((e( to t#e 'n!ai( amo'nt an interest o$ t%ent*,$o'r !ercent 29F3 !er ann'm $rom t#e ('e (ate 'ntil

it is !ai(.ARTICLE 297. Comm'nit* Tax Certi$icate. " A comm'nit* tax certi$icate s#all )e iss'e( to

ever* !erson or cor!oration '!on !a*ment o$ comm'nit* tax. A comm'nit* tax certi$icate ma* also )e

iss'e( to an* !erson or cor!oration not s')ect to comm'nit* tax '!on !a*ment o$ One Peso P1.::3.ARTICLE 29-. Presentation o$ Comm'nit* Tax Certi$icate. " a3 D#en an in(ivi('al s')ect to

comm'nit* tax ac<no%le(&es an* (oc'ment )e$ore a notar* !')lic+ ta<es t#e oat# o$ o$$ice '!on

election or a!!ointment to an* !osition in t#e &overnment service5 receives an* license+ certi$icate+ or !ermit $rom an* !')lic a't#orit*5 !a*s an* tax or $ee5 receives an* mone* $rom an* !')lic $'n(5

transacts ot#er o$$icial )'siness5 or receives an* mone* $rom an* !')lic $'n(5 transacts ot#er o$$icial

 )'siness5 or receives an* salar* or %a&e $rom an* !erson or cor!oration+ it s#all )e t#e ('t* o$ an*

 !erson+ o$$icer+ or cor!oration %it# %#om s'c# transaction is ma(e or )'siness (one or $rom %#om an*salar* or %a&e is receive( to re4'ire s'c# in(ivi('al to ex#i)it t#e comm'nit* tax certi$icate.

T#e !resentation o$ comm'nit* tax certi$icate s#all not )e re4'ire( $or t#e re&istration o$ a voter.

)3 D#en+ t#ro'&# its a't#ori=e( o$$icers+ an* cor!oration s')ect to comm'nit* tax receives an*license+ certi$icate+ or !ermit $rom an* !')lic a't#orit*+ !a*s an* tax or $ee+ receives mone* $rom

 !')lic $'n(s+ or transacts ot#er o$$icial )'siness+ it s#all )e t#e ('t* o$ t#e !')lic o$$icial %it# %#om

s'c# transaction is ma(e or )'siness (one+ to re4'ire s'c# cor!oration to ex#i)it t#e comm'nit* taxcerti$icate.

c3 T#e comm'nit* tax certi$icate re4'ire( in t#e t%o !rece(in& !ara&ra!#s s#all )e t#e one iss'e(

$or t#e c'rrent *ear+ exce!t $or t#e !erio( $rom Han'ar* 'ntil t#e $i$teent# 1t#3 o$ A!ril eac# *ear+ in

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%#ic# case+ t#e certi$icate iss'e( $or t#e !rece(in& *ear s#all s'$$ice.

ARTICLE 29/. Printin& o$ Comm'nit* Tax Certi$icates an( ;istri)'tion o$ Procee(s. " T#e

6'rea' o$ Internal Reven'e 6IR3 s#all ca'se t#e !rintin& o$ comm'nit* tax certi$icates an( (istri)'te

t#e same to t#e cities an( m'nici!alities t#ro'&# t#e cit* an( m'nici!al treas'rers in accor(ance %it# !rescri)e( re&'lations. To $acilitate (istri)'tion+ t#e 6IR ma* sen( on consi&nment to t#e !rovincial

treas'rers )lan< $orms o$ t#e comm'nit* tax certi$icates an( t#e m'nici!al treas'rers o$ t#e !rovince

s#all sec're t#ro'&# t#e !rovincial treas'rer+ t#eir res!ective re4'irements. T#e cit* or m'nici!altreas'rer concerne( s#all remit to t#e National Treas'rer+ $or t#e acco'nt o$ t#e 6IR+ t#e s#are o$ t#e

 National Government in t#e !rocee(s o$ t#e tax+ re!resentin& t#e cost o$ !rintin& an( (istri)'tion+

%it#in ten 1:3 (a*s a$ter t#e en( o$ eac# 4'arter. In cases %#ere t#e certi$icates %ere sec're( orre4'isitione( $rom t#e !rovincial treas'rer+ t#e m'nici!al treas'rers s#all remit !a*ments to t#e

 !rovincial treas'rer %#o s#all+ in t'rn+ e$$ect t#e remittance to t#e National Treas'rer as re4'ire(.

ARTICLE 2:. Collection o$ Comm'nit* Tax )* t#e 6aran&a* Treas'rer. " T#e tax or(inancelev*in& t#e comm'nit* tax s#all a't#ori=e t#e cit* or m'nici!al treas'rer to (e!'ti=e t#e )aran&a*

treas'rers to collect t#e comm'nit* tax in t#eir res!ective 'ris(ictions. 'c# (e!'tation s#all )e

limite( to t#e comm'nit* tax !a*a)le )* in(ivi('al tax!a*ers an( s#all )e exten(e( onl* to )aran&a*

treas'rers %#o are !ro!erl* )on(e( in accor(ance %it# a!!lica)le la%s.ARTICLE 21. Allocation o$ Procee(s o$ Comm'nit* Tax. " T#e !rocee(s o$ comm'nit* tax

act'all* an( (irectl* collecte( )* t#e cit* or m'nici!al treas'rer s#all accr'e entirel* to t#e &eneral

$'n( o$ t#e cit* or m'nici!alit* concerne(. T#e !rocee(s o$ comm'nit* tax collecte( t#ro'&# t#e )aran&a* treas'rers s#all )e a!!ortione( as $ollo%s

a3 0i$t* !ercent :F3 s#all accr'e to t#e &eneral $'n( o$ t#e cit* or m'nici!alit* concerne(5 an(

)3 0i$t* !ercent :F3 s#all accr'e to t#e )aran&a* %#ere t#e tax is collecte(.ARTICLE 22. A't#orit* to Use 6lan< 0orms o$ Resi(ence Certi$icates. " T#e cit* an(

m'nici!al treas'rers s#all )e a't#ori=e( to 'se $or t#e *ear 1//2 )lan< $orms o$ resi(ence certi$icates

still in t#eir stoc<+ !en(in& t#e (istri)'tion )* t#e 6IR o$ t#e ne% $orm $or t#e comm'nit* tax

certi$icate !rovi(e( t#ata3 T#e %or( resi(ence s#all )e cancelle( an( in its !lace+ t#e %or( comm'nit* s#all )e

s'!erim!ose(5 ac(

)3 T#e maxim'm amo'nt o$ a((itional tax !a*a)le )* in(ivi('al an( cor!orate tax!a*ers s#all )ec#an&e( $rom P8+:::.:: to P+:::.:: an( $rom P>+:::.:: to P1:+:::.::+ res!ectivel*+ in accor(ance

%it# t#e sc#e('le !rovi(e( in Article 29> o$ t#is R'le.

c3 Corres!on(in& re!orts as to 4'antit* an( serial n'm)ers o$ ol( )lan< $orms 'se( ('rin&Calen(ar ear 1//2 s#all )e s')mitte( )* t#e cit* an( m'nici!al treas'rers to t#e 6IR !'rs'ant to

a!!lica)le r'les an( re&'lations.

PART NINECollection o$ Taxes

ARTICLE 28. Tax Perio( an( ?anner o$ Pa*ment. " Unless ot#er%ise !rovi(e( in t#is R'le+

t#e tax !erio( o$ all local taxes+ $ees+ an( c#ar&es s#all )e t#e calen(ar *ear. 'c# taxes+ $ees+ an(

c#ar&es ma* )e !ai( in 4'arterl* installments as ma* )e !rovi(e( in t#e tax or(inance.ARTICLE 29. Accr'al o$ Tax. " Unless ot#er%ise !rovi(e( #erein+ local taxes+ $ees+ an(

c#ar&es s#all accr'e on t#e $irst 1st3 (a* o$ Han'ar* o$ eac# *ear as re&ar(s tax s')ects t#en lia)le

t#ere$or+ )'t an entirel* ne% tax+ $ee or c#ar&e+ or c#ar&es in t#e rates o$ existin& taxes+ $ees+ or c#ar&es+s#all accr'e on t#e $irst (a* o$ t#e 4'arter next $ollo%in& t#e e$$ectivit* o$ t#e or(inance im!osin& s'c#

ne% levies or rates.

ARTICLE 2. Time o$ Pa*ment. " Unless ot#er%ise s!eci$icall* !rovi(e( in t#is R'le+ alllocal taxes+ $ees+ an( c#ar&es ('e an( accr'in& to t#e LGUs s#all )e !ai( %it#in t#e $irst t%ent* 2:3

(a*s o$ Han'ar* or o$ eac# s')se4'ent 4'arter+ as t#e case ma* )e. T#e san&&'nian concerne( ma*+ $or

a 'sti$ia)le reason or ca'se+ exten( t#e time $or !a*ment o$ s'c# taxes+ $ees+ or c#ar&es %it#o't

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s'rc#ar&es or !enalties+ )'t onl* $or a !erio( not excee(in& six >3 mont#s.

ARTICLE 2>. 'rc#ar&es an( Penalties on Un!ai( Taxes+ 0ees+ or C#ar&es. " T#e san&&'nian

ma* im!ose a s'rc#ar&e not excee(in& t%ent*,$ive !ercent 2F3 o$ t#e amo'nt o$ taxes+ $ees+ or

c#ar&es not !ai( on time an( an interest at t#e rate not excee(in& t%o !ercent 2F3 !er mont# o$ t#e'n!ai( taxes+ $ees+ or c#ar&es incl'(in& s'rc#ar&es+ 'ntil s'c# amo'nt is $'ll* !ai( )'t in no case s#all

t#e total interest on t#e 'n!ai( amo'nt or !ortion t#ereo$ excee( t#irt*,six 8>3 mont#s.

ARTICLE 27. Interests on Ot#er Un!ai( Reven'es. " D#ere t#e amo'nt o$ an* ot#er reven'e('e an LGU+ exce!t vol'ntar* contri)'tions or (onations+ is not !ai( on t#e (ate $ixe( in t#e or(inance+

or in t#e contract+ ex!resse( or im!lie(+ or '!on t#e occ'rrence o$ t#e event %#ic# #as &iven rise to its

collection+ t#ere s#all )e collecte( as !art o$ t#at amo'nt an interest t#ereon at t#e rate not excee(in&t%o !ercent 2F3 !er mont# $rom t#e (ate it is ('e 'ntil it is !ai(+ )'t in no case s#all t#e total interest

on t#e 'n!ai( amo'nt or a !ortion t#ereo$ excee( t#irt*,six 8>3 mont#s.

ARTICLE 2-. Collection o$ Local Reven'es. " All local taxes+ $ees+ an( c#ar&es s#all )ecollecte( )* t#e !rovincial+ cit*+ m'nici!al+ or )aran&a* treas'rer+ or t#eir ('l* a't#ori=e( (e!'ties.

T#e !rovincial+ cit*+ or m'nici!al treas'rer ma* (esi&nate t#e )aran&a* treas'rer as #is (e!'t* to

collect local taxes+ $ees+ or c#ar&es. In case a )on( is re4'ire( $or t#e !'r!ose+ t#e !rovincial+ cit*+ or

m'nici!al &overnment s#all !a* t#e !remi'm t#ereon in a((ition to t#e !remi'ms o$ )on( t#at ma* )ere4'ire( 'n(er t#ese R'les.

ARTICLE 2/. Examination o$ 6oo<s o$ Acco'nts an( Pertinent Recor(s o$ 6'sinessmen. " a3

0or !'r!oses o$ im!lementin& t#is Article+ onl* t#e treas'rer o$ t#e LGU im!osin& t#e tax+ $ee+ orc#ar&e+ ma* examine t#e )oo<s o$ acco'nts an( !ertinent recor(s o$ )'sinessmen in or(er to ascertain+

assess+ an( collect t#e correct amo'nt o$ taxes+ $ees+ an( c#ar&es.

)3 T#e !rovincial+ cit*+ m'nici!al+ or )aran&a* treas'rer ma*+ )* #imsel$ or t#ro'&# an* o$ #is(e!'ties ('l* a't#ori=e( in %ritin&+ examine t#e )oo<s+ acco'nts+ an( ot#er !ertinent recor(s o$ an*

 !erson+ !artners#i!+ cor!oration+ or association s')ect to local taxes+ $ees+ an( c#ar&es.

c3 T#e examination s#all )e ma(e ('rin& re&'lar )'siness #o'rs not o$tener t#an once a *ear $or

ever* tax !erio(+ %#ic# s#all )e t#e *ear imme(iatel* !rece(in& t#e examination+ an( s#all )e certi$ie( )* t#e examinin& o$$icial. 'c# certi$ication s#all )e ma(e o$ recor( in t#e )oo<s o$ acco'nts o$ t#e

tax!a*er examine(.

(3 In case t#e examination is ma(e )* a ('l* a't#ori=e( (e!'t* o$ t#e local treas'rer+ t#e %rittena't#orit* o$ t#e (e!'t* concerne( s#all s!eci$icall* state t#e name+ a((ress+ an( )'siness o$ t#e

tax!a*er %#ose )oo<s+ acco'nts+ an( !ertinent recor(s are to )e examine(+ t#e (ate an( !lace o$ s'c#

examination+ an( t#e !roce('re to )e $ollo%e( in con('ctin& t#e same.e3 0or t#is !'r!ose+ t#e recor(s o$ t#e reven'e (istrict o$$ice o$ t#e 6IR s#all )e ma(e availa)le to

t#e local treas'rer+ #is (e!'t* or ('l* a't#ori=e( re!resentative.

$3 T#e ecretar* o$ 0inance s#all !rescri)e t#e necessar* $orms to )e 'se( an( s'c# &'i(elines%#ic# ma* )e (eeme( necessar* $or t#e !ro!er an( e$$ective im!lementation o$ t#is Article.

PART TEN

Civil Reme(ies $or Collection o$ Reven'es

ARTICLE 2>:. A!!lication. " T#e !rovisions o$ Part Ten o$ t#is R'le an( t#e reme(ies #erein !rovi(e( ma* )e availe( o$ $or t#e collection o$ an* (elin4'ent local tax+ $ee+ c#ar&e+ or ot#er reven'es.

ARTICLE 2>1. Local Governments Lien. " Local taxes+ $ees+ c#ar&es+ an( ot#er reven'es

constit'te a lien+ s'!erior to all liens+ c#ar&es or enc'm)rances in $avor o$ an* !erson+ en$orcea)le )*a!!ro!riate a(ministrative or '(icial action+ not onl* '!on an* !ro!ert* or ri&#ts t#erein %#ic# ma* )e

s')ect to t#e lien )'t also '!on !ro!ert* 'se( in )'siness+ occ'!ation+ !ractice o$ !ro$ession or callin&+

or exercise o$ !rivile&e %it# res!ect to %#ic# t#e lien is im!ose(. T#e lien ma* onl* )e extin&'is#e('!on $'ll !a*ment o$ t#e (elin4'ent local taxes+ $ees+ an( c#ar&es incl'(in& relate( s'rc#ar&es an(

interests.

ARTICLE 2>2. Civil Reme(ies. " T#e civil reme(ies $or t#e collection o$ local taxes+ $ees+ or

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c#ar&es+ an( relate( s'rc#ar&es an( interests res'ltin& $rom (elin4'encies s#all )e

a3 6* a(ministrative action t#ro'&# (istraint o$ &oo(s+ c#attels+ or e$$ects+ an( ot#er !ersonal

 !ro!ert* o$ %#atever c#aracter+ incl'(in& stoc<s an( ot#er sec'rities+ (e)ts+ cre(its+ )an< acco'nts+ an(

interest in an( ri&#ts to !ersonal !ro!ert*+ an( )* lev* '!on real !ro!ert* an( interest in or ri&#ts to real !ro!ert*5 an(

)3 6* '(icial action.

Eit#er o$ t#ese t%o 23 reme(ies or )ot# ma* )e !'rs'e( conc'rrentl* or sim'ltaneo'sl*at t#e (iscretion o$ t#e LGU concerne(.

ARTICLE 2>8. ;istraint o$ Personal Pro!ert*. " T#e reme(* )* (istraint s#all !rocee( as

$ollo%sa3 ei='re " U!on $ail're o$ t#e !erson o%in& an* local tax+ $ee+ or c#ar&e to !a* t#e same at t#e

time re4'ire(+ t#e local treas'rer or #is (e!'t* ma*+ '!on %ritten notice+ sei=e or con$iscate an*

 !ersonal !ro!ert* )elon&in& to t#at !erson or an* !ersonal !ro!ert* s')ect to t#e lien in s'$$icient4'antit* to satis$* t#e tax+ $ee+ or c#ar&e in 4'estion+ to&et#er %it# an* increment t#ereto inci(ent to

(elin4'enc* an( t#e ex!enses o$ sei='re. In s'c# case+ t#e local treas'rer or #is (e!'t* s#all iss'e a

('l* a't#enticate( certi$icate )ase( '!on t#e recor(s o$ #is o$$ice s#o%in& t#e $act o$ (elin4'enc* an(

t#e amo'nts o$ t#e tax+ $ee+ or c#ar&e an( !enalt* ('e. 'c# certi$icate s#all serve as s'$$icient %arrant$or t#e (istraint o$ !ersonal !ro!ert* a$orementione(+ s')ect to t#e tax!a*ers ri&#t to claim exem!tion

'n(er t#e !rovisions o$ a!!lica)le la%s. ;istraine( !ersonal !ro!ert* s#all )e sol( at !')lic a'ction in

t#e manner !rovi(e( in t#is R'le.)3 Acco'ntin& o$ (istraine( &oo(s " T#e o$$icer exec'tin& t#e (istraint s#all ma<e or ca'se to )e

ma(e an acco'nt o$ t#e &oo(s+ c#attels+ or e$$ects (istraine(+ a co!* o$ %#ic# si&ne( )* #imsel$ s#all )e

le$t eit#er %it# t#e o%ner or !erson $rom %#ose !ossession t#e &oo(s+ c#attels+ or e$$ects are ta<en+ orat t#e (%ellin& or !lace o$ )'siness o$ t#at !erson an( %it# someone o$ s'ita)le a&e an( (iscretion+ to

%#ic# list s#all )e a((e( a statement o$ t#e s'm (eman(e( an( a note o$ t#e time an( !lace o$ sale.

c3 P')lication " T#e o$$icer s#all $ort#%it# ca'se a noti$ication to )e ex#i)ite( in not less t#an

t#ree 83 !')lic an( cons!ic'o's !laces in t#e territor* o$ t#e LGU %#ere t#e (istraint is ma(e+s!eci$*in& t#e time an( !lace o$ sale+ an( t#e articles (istraine(. T#e time o$ sale s#all not )e less t#an

t%ent* 2:3 (a*s a$ter notice to t#e o%ner or !ossessor o$ t#e !ro!ert* as a)ove s!eci$ie( an( t#e

 !')lication or !ostin& o$ t#e notice. One !lace $or t#e !ostin& o$ t#e notice s#all )e at t#e o$$ice o$ t#ec#ie$ exec'tive o$ t#e LGU in %#ic# t#e !ro!ert* is (istraine(.

(3 Release o$ (istraine( !ro!ert* '!on !a*ment !rior to sale " I$ at an* time !rior to t#e

cons'mmation o$ t#e sale+ all t#e !ro!er c#ar&es are !ai( to t#e o$$icer con('ctin& t#e sale+ t#e &oo(sor e$$ects (istraine( s#all )e restore( to t#e o%ner.

e3 Proce('re o$ sale " At t#e time an( !lace $ixe( in t#e notice+ t#e o$$icer con('ctin& t#e sale

s#all sell t#e &oo(s or e$$ects so (istraine( at !')lic a'ction to t#e #i&#est )i((er $or cas#. Dit#in $ive3 (a*s a$ter t#e sale+ t#e local treas'rer s#all ma<e a re!ort o$ t#e !rocee(in&s in %ritin& to t#e local

c#ie$ exec'tive concerne(.

#o'l( t#e !ro!ert* (istraine( )e not (is!ose( o$ %it#in one #'n(re( an( t%ent* 12:3

(a*s $rom t#e (ate o$ (istraint+ t#e same s#all )e consi(ere( as sol( to t#e LGU concerne( $or t#eamo'nt o$ t#e assessment ma(e t#ereon )* t#e committee on a!!raisal an( to t#e extent o$ t#e same

amo'nt+ t#e tax (elin4'encies s#all )e cancelle(.

T#e committee on a!!raisal s#all )e com!ose( o$ t#e cit* or m'nici!al treas'rer asc#airman+ %it# a re!resentative o$ COA an( t#e cit* or m'nici!al assessor+ as mem)ers.

$3 ;is!osition o$ !rocee(s " T#e !rocee(s o$ t#e sale s#all )e a!!lie( to satis$* t#e tax+ incl'(in&

t#e s'rc#ar&es+ interests+ an( ot#er !enalties inci(ent to (elin4'enc*+ an( t#e ex!enses o$ t#e (istraintan( sale. T#e )alance over an( a)ove %#at is re4'ire( to !a* t#e entire claim s#all )e ret'rne( to t#e

o%ner o$ t#e !ro!ert* sol(. T#e ex!enses c#ar&ea)le '!on t#e sei='re an( sale s#all em)race onl* t#e

act'al ex!enses o$ sei='re an( !reservation o$ t#e !ro!ert* !en(in& t#e sale+ an( no c#ar&e s#all )e

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im!ose( $or t#e services o$ t#e local o$$icer or #is (e!'t*. D#ere t#e !rocee(s o$ t#e sale are

ins'$$icient to satis$* t#e claim+ ot#er !ro!ert* ma*+ in li<e manner+ )e (istraine( 'ntil t#e $'ll amo'nt

('e+ incl'(in& all ex!enses+ is collecte(.

ARTICLE 2>9. Lev* on Real Pro!ert*. " A$ter t#e ex!iration o$ t#e time re4'ire( to !a* t#e(elin4'ent tax+ $ee+ or c#ar&e+ real !ro!ert* ma* )e levie( on+ )e$ore+ sim'ltaneo'sl*+ or a$ter t#e

(istraint o$ !ersonal !ro!ert* )elon&in& to t#e (elin4'ent tax!a*er. T#e !rovincial+ cit* or m'nici!al

treas'rer+ as t#e case ma* )e+ s#all !re!are a ('l* a't#enticate( certi$icate s#o%in& t#e name o$ t#etax!a*er an( t#e amo'nt o$ t#e tax+ $ee+ or c#ar&e+ an( !enalt* ('e $rom #im. 'c# certi$icate s#all

o!erate %it# t#e $orce o$ a le&al exec'tion t#ro'&#o't t#e P#ili!!ines. Lev* s#all )e e$$ecte( )* %ritin&

'!on sai( certi$icate t#e (escri!tion o$ t#e !ro!ert* '!on %#ic# lev* is ma(e. At t#e same time+ %rittennotice o$ t#e lev* s#all )e maile( to or serve( '!on t#e local assessor an( re&istrar o$ (ee(s o$ t#e

 !rovince or cit* %#ere t#e !ro!ert* is locate( %#o s#all annotate t#e lev* on t#e tax (eclaration an(

certi$icate o$ title o$ t#e !ro!ert*+ res!ectivel*+ an( t#e (elin4'ent tax!a*er or+ i$ #e )e a)sent $rom t#eP#ili!!ines+ to #is a&ent or t#e mana&er o$ t#e )'siness in res!ect to %#ic# t#e lia)ilit* arose+ or i$ t#ere

 )e none+ to t#e occ'!ant o$ t#e !ro!ert* in 4'estion.

In case t#e lev* on real !ro!ert* is not iss'e( )e$ore or sim'ltaneo'sl* %it# t#e %arrant o$ (istraint on

 !ersonal !ro!ert*+ an( t#e !ersonal !ro!ert* o$ t#e tax!a*er is not s'$$icient to satis$* #is (elin4'enc*+t#e !rovincial+ cit* or m'nici!al treas'rer+ as t#e case ma* )e+ s#all %it#in t#irt* 8:3 (a*s a$ter

exec'tion o$ t#e (istraint+ !rocee( %it# t#e lev* on t#e tax!a*ers real !ro!ert*.

A re!ort on an* lev* s#all+ %it#in ten 1:3 (a*s a$ter recei!t o$ t#e %arrant+ )e s')mitte( )* t#e lev*in&o$$icer to t#e san&&'nian concerne(.

ARTICLE 2>. Penalt* $or $ail're to Iss'e an( Exec'te Darrant. " Dit#o't !re'(ice to

criminal !rosec'tion 'n(er t#e Revise( Penal Co(e an( ot#er a!!lica)le la%s+ an* local treas'rer %#o$ails to iss'e or exec'te t#e %arrant o$ (istraint or lev* a$ter t#e ex!iration o$ t#e time !rescri)e(+ or

%#o is $o'n( &'ilt* o$ a)'sin& t#e exercise t#ereo$ )* com!etent a't#orit*+ s#all )e a'tomaticall*

(ismisse( $rom t#e service a$ter ('e notice an( #earin&.

ARTICLE 2>>. A(vertisement an( ale. " Dit#in t#irt* 8:3 (a*s a$ter lev*+ t#e local treas'rers#all !rocee( to !')licl* a(vertise $or sale or a'ction t#e !ro!ert* or a 'sa)le !ortion t#ereo$ as ma* )e

necessar* to satis$* t#e claim an( cost o$ sale5 an( s'c# a(vertisement s#all cover a !erio( o$ at least

t#irt* 8:3 (a*s. It s#all )e e$$ecte( )* !ostin& a notice at t#e main entrance o$ t#e cit* or m'nici!al#all+ an( in !')lic an( cons!ic'o's !laces in t#e )aran&a* %#ere t#e real !ro!ert* is locate(+ an( )*

 !')lication once a %ee< $or t#ree 83 %ee<s in a ne%s!a!er o$ &eneral circ'lation in t#e !rovince+ cit*

or m'nici!alit* %#ere t#e !ro!ert* is locate(. T#e a(vertisement s#all contain t#e amo'nt o$ taxes+ $eesor c#ar&es+ an( !enalties ('e t#ereon+ an( t#e time an( !lace o$ sale+ t#e name o$ t#e tax!a*er a&ainst

%#om t#e taxes+ $ees+ or c#ar&es are levie(+ an( a s#ort (escri!tion o$ t#e !ro!ert* to )e sol(. At an*

time )e$ore t#e (ate $ixe( $or t#e sale+ t#e tax!a*er ma* sta* t#e !rocee(in&s )* !a*in& t#e taxes+ $ees+c#ar&es+ !enalties+ an( interests. I$ #e $ails to (o so+ t#e sale s#all !rocee( an( s#all )e #el( eit#er at t#e

main entrance o$ t#e !rovincial ca!itol+ cit* or m'nici!al #all+ or on t#e !ro!ert* to )e sol(+ or at an*

ot#er !lace as (etermine( )* t#e local treas'rer con('ctin& t#e sale an( s!eci$ie( in t#e notice o$ sale.

Dit#in t#irt* 8:3 (a*s a$ter t#e sale+ t#e local treas'rer or #is (e!'t* s#all ma<e a re!ort o$ t#e sale tot#e san&&'nian concerne(+ an( %#ic# s#all $orm !art o$ #is recor(s. A$ter cons'ltation %it# t#e

san&&'nian+ t#e local treas'rer s#all ma<e an( (eliver to t#e !'rc#aser a certi$icate o$ sale+ s#o%in& t#e

 !rocee(in&s o$ t#e sale+ (escri)in& t#e !ro!ert* sol(+ statin& t#e name o$ t#e !'rc#aser an( settin& o'tt#e exact amo'nt o$ all taxes+ $ees+ c#ar&es+ an( relate( s'rc#ar&es+ interests+ or !enalties !rovi(e( t#at

an* excess in t#e !rocee(s o$ t#e sale over t#e claim an( cost o$ sales s#all )e t'rne( over to t#e o%ner

o$ t#e !ro!ert*. T#e local treas'rer ma*+ )* a ('l* a!!rove( or(inance+ a(vance an amo'nt s'$$icient to(e$ra* t#e costs o$ collection )* means o$ t#e reme(ies !rovi(e( in t#is R'le+ incl'(in& t#e

 !reservation or trans!ortation+ in case o$ !ersonal !ro!ert*+ an( t#e a(vertisement an( s')se4'ent sale+

in cases o$ !ersonal an( real !ro!ert* incl'(in& im!rovements t#ereon.

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ARTICLE 2>7. Re(em!tion o$ Pro!ert* ol(. " Dit#in one 13 *ear $rom t#e (ate o$ sale+ t#e

(elin4'ent tax!a*er or #is re!resentative s#all #ave t#e ri&#t to re(eem t#e !ro!ert* '!on !a*ment to

t#e local treas'rer o$ t#e total amo'nt o$ taxes+ $ees+ or c#ar&es+ an( relate( s'rc#ar&es+ interest+ or

 !enalties $rom t#e (ate o$ (elin4'enc* to t#e (ate o$ sale+ !l's interest o$ not more t#an t%o !ercent2F3 !er mont# on t#e !'rc#ase !rice $rom t#e (ate o$ !'rc#ase to t#e (ate o$ re(em!tion. 'c#

 !a*ment s#all invali(ate t#e certi$icate o$ sale iss'e( to t#e !'rc#aser an( t#e o%ner s#all )e entitle( to

a certi$icate o$ re(em!tion $rom t#e !rovincial+ cit*+ or m'nici!al treas'rer or #is (e!'t*.T#e !rovincial+ cit*+ or m'nici!al treas'rer or #is (e!'t*+ '!on s'rren(er )* t#e !'rc#aser o$ t#e

certi$icate o$ sale !revio'sl* iss'e( to #im+ s#all $ort#%it# ret'rn to t#e latter t#e entire !'rc#ase !rice

 !ai( )* #im !l's t#e interest o$ not more t#an t%o !ercent 2F3 !er mont# #erein !rovi(e( $or+ t#e !ortion o$ t#e cost o$ sale an( ot#er le&itimate ex!enses inc'rre( )* #im+ an( sai( !ro!ert* t#erea$ter

s#all )e $ree $rom t#e lien o$ s'c# taxes+ $ees+ or c#ar&es+ relate( s'rc#ar&es+ interests+ an( !enalties.

T#e o%ner s#all not )e (e!rive( o$ t#e !ossession o$ sai( !ro!ert* an( s#all )e entitle( to t#e rentalsan( ot#er income t#ereo$ 'ntil t#e ex!iration o$ t#e time allo%e( $or its re(em!tion.

ARTICLE 2>-. 0inal ;ee( o$ Conve*ance to P'rc#aser. " In case t#e tax!a*er $ails to re(eem

t#e !ro!ert* as !rovi(e( #erein+ t#e local treas'rer s#all exec'te a (ee( conve*in& to t#e !'rc#aser so

m'c# o$ t#e !ro!ert* as #as )een sol(+ $ree $rom liens o$ an* taxes+ $ees+ c#ar&es+ relate( s'rc#ar&es+interests+ an( !enalties. T#e (ee( s#all s'ccinctl* recite all t#e !rocee(in&s '!on %#ic# t#e vali(it* o$

t#e sale (e!en(s.

ARTICLE 2>/. P'rc#ase o$ Pro!ert* )* t#e Local Government Units $or Dant o$ 6i((er. " Incase t#ere is no )i((er $or t#e real !ro!ert* a(vertise( $or sale as !rovi(e( #erein+ or i$ t#e #i&#est )i(

is $or an amo'nt ins'$$icient to !a* t#e taxes+ $ees+ or c#ar&es+ relate( s'rc#ar&es+ interests+ !enalties+

an( costs+ t#e local treas'rer con('ctin& t#e sale s#all !'rc#ase t#e !ro!ert* in )e#al$ o$ t#e LGUconcerne( to satis$* t#e claim an( %it#in t%o 23 (a*s t#erea$ter s#all ma<e a re!ort o$ #is !rocee(in&s

%#ic# s#all )e re$lecte( '!on t#e recor(s o$ #is o$$ice. It s#all )e t#e ('t* o$ t#e re&istrar o$ (ee(s

concerne( '!on re&istration %it# #is o$$ice o$ an* s'c# (eclaration o$ $or$eit're to trans$er t#e title o$

t#e $or$eite( !ro!ert* to t#e LGU concerne( %it#o't t#e necessit* o$ an or(er $rom a com!etent co'rt.Dit#in one 13 *ear $rom t#e (ate o$ s'c# $or$eit're+ t#e tax!a*er or an* o$ #is re!resentative+ ma*

re(eem t#e !ro!ert* )* !a*in& to t#e local treas'rer t#e $'ll amo'nt o$ t#e taxes+ $ees+ c#ar&es+ an(

relate( s'rc#ar&es+ interests+ or !enalties+ an( t#e costs o$ sale. I$ t#e !ro!ert* is not re(eeme( as !rovi(e( #erein+ t#e o%ners#i! t#ereo$ s#all )e $'ll* veste( on t#e LGU concerne(.

ARTICLE 27:. Resale o$ Real Estate Ac4'ire( $or Pa*ment o$ Taxes+ 0ees+ or C#ar&es. " T#e

san&&'nian concerne( ma*+ )* a ('l* a!!rove( or(inance+ an( '!on notice o$ not less t#an t%ent* 2:3(a*s+ sell an( (is!ose o$ t#e real !ro!ert* ac4'ire( 'n(er t#e !rece(in& Article at !')lic a'ction. T#e

 !rocee(s o$ t#e sale s#all accr'e to t#e &eneral $'n( o$ t#e LGU concerne(.

ARTICLE 271. Collection o$ ;elin4'ent Taxes+ 0ees+ C#ar&es+ or Ot#er Im!ositions t#ro'&#H'(icial Action. " T#e LGU concerne( ma* en$orce t#e collection o$ (elin4'ent taxes+ $ees+ c#ar&es+

or ot#er im!ositions )* civil action in an* co'rt o$ com!etent 'ris(iction. T#e civil action s#all )e $ile(

 )* t#e local treas'rer %it#in t#e !erio( !rescri)e( in Article 2-9 o$ t#is R'le.

ARTICLE 272. 0'rt#er ;istraint or Lev*. " T#e reme(ies )* (istraint an( lev* ma* )e re!eate(i$ necessar* 'ntil t#e $'ll amo'nt ('e+ incl'(in& all ex!enses+ is collecte(. ac(

ARTICLE 278. Personal Pro!ert* Exem!t $rom ;istraint or Lev*. " T#e $ollo%in& !ro!ert*

s#all )e exem!t $rom (istraint an( t#e lev*+ attac#ment or exec'tion t#ereo$ $or (elin4'enc* in t#e !a*ment o$ an* local tax+ $ee+ or c#ar&e+ incl'(in& relate( s'rc#ar&es an( interests

a3 Tools an( im!lements necessaril* 'se( )* t#e (elin4'ent tax!a*er in #is tra(e or em!lo*ment5

)3 One 13 #orse+ co%+ cara)ao+ or ot#er )east o$ )'r(en+ s'c# as t#e (elin4'ent tax!a*er ma*select+ an( necessaril* 'se( )* #im in #is or(inar* occ'!ation5

c3 is necessar* clot#in&+ an( t#at o$ all #is $amil*5

(3 o'se#ol( $'rnit're an( 'tensils necessar* $or #o'se<ee!in& an( 'se( $or t#at !'r!ose )* t#e

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(elin4'ent tax!a*er+ s'c# as #e ma* select+ o$ a val'e not excee(in& Ten T#o'san( Pesos P1:+:::.::35

e3 Provisions+ incl'(in& cro!s+ act'all* !rovi(e( $or in(ivi('al or $amil* 'se s'$$icient $or $o'r 93

mont#s5

$3 T#e !ro$essional li)raries o$ (octors+ en&ineers+ la%*ers an( '(&es5&3 One 13 $is#in& )oat an( net+ not excee(in& t#e total val'e o$ Ten T#o'san( Pesos P1:+:::.::3+

 )* t#e la%$'l 'se o$ %#ic# a $is#erman earns #is liveli#oo(5 an(

#3 An* material or article $ormin& !art o$ a #o'se or im!rovement o$ an* real !ro!ert*.PART ELEBEN

?iscellaneo's Provisions

ARTICLE 279. Po%er to Lev* Ot#er Taxes+ 0ees+ or C#ar&es. " LGUs ma* exercise t#e !o%erto lev* taxes+ $ees+ or c#ar&es on an* )ase or s')ect not ot#er%ise s!eci$icall* en'merate( in t#is R'le

or taxe( 'n(er t#e !rovisions o$ t#e NIRC+ as amen(e(+ or ot#er a!!lica)le la%s !rovi(e( t#at t#e

taxes+ $ees+ or c#ar&es s#all not )e 'n'st+ excessive+ o!!ressive+ con$iscator*+ or contrar* to (eclare(national !olic* !rovi(e( $'rt#er t#at t#e or(inance lev*in& s'c# taxes+ $ees+ or c#ar&es s#all not )e

enacte( %it#o't an* !rior !')lic #earin& con('cte( $or t#e !'r!ose.

ARTICLE 27. Proce('re $or A!!roval an( E$$ectivit* o$ Tax Or(inances an( Reven'e

?eas'res. " T#e !roce('re $or a!!roval o$ local tax or(inances an( reven'e meas'res s#all )e inaccor(ance %it# t#e !rovisions o$ t#is R'le !rovi(e( t#at !')lic #earin&s s#all )e con('cte( $or t#e

 !'r!ose !rior to t#e enactment t#ereo$ !rovi(e( $'rt#er t#at an* 4'estion on t#e constit'tionalit* or

le&alit* o$ tax or(inances or reven'e meas'res ma* )e raise( on a!!eal %it#in t#irt* 8:3 (a*s $rom t#ee$$ectivit* t#ereo$ to t#e ecretar* o$ H'stice %#o s#all ren(er a (ecision %it#in sixt* >:3 (a*s $rom

t#e (ate o$ recei!t o$ t#e a!!eal !rovi(e( $'rt#ermore t#at s'c# a!!eal s#all not #ave t#e e$$ect o$

s's!en(in& t#e e$$ectivit* o$ t#e or(inance an( t#e accr'al an( !a*ment o$ t#e tax+ $ee+ or c#ar&e levie(t#erein an( !rovi(e( $inall* t#at %it#in t#irt* 8:3 (a*s a$ter recei!t o$ t#e (ecision or t#e la!se o$ t#e

sixt*,(a* !erio( %it#o't t#e ecretar* o$ H'stice actin& '!on t#e a!!eal+ t#e a&&rieve( !art* ma* $ile

a!!ro!riate !rocee(in&s %it# a co'rt o$ com!etent 'ris(iction.

All tax or(inances or reven'e meas'res s#all )e n'm)ere( consec'tivel* t#ro'&#o't t#e calen(ar *earan( contin'o'sl* $rom *ear to *ear+ 'sin& t#e last t%o 23 (i&its o$ t#e calen(ar *ear in %#ic# it is

enacte(+ $ollo%e( )* its (enominate( n'm)er. 0or exam!le+ an or(inance is !asse( in Han'ar*+ 1//2+

an( it is t#e $irst or(inance $or t#at *ear. T#e or(inance s#all )e (enominate( an( n'm)ere( as TaxOr(inance No. /2,::1. T#e next s#all )e Tax Or(inance No. /2,::2+ Tax Or(inance No. /2,::8+ an( so

$ort#.

ARTICLE 27>. P')lication o$ Tax Or(inances an( Reven'e ?eas'res. " a3 Dit#in ten 1:3(a*s a$ter t#eir a!!roval+ certi$ie( tr'e co!ies o$ all !rovincial+ cit*+ an( m'nici!al tax or(inances or

reven'e meas'res s#all )e !')lis#e( in $'ll $or t#ree 83 consec'tive (a*s in a ne%s!a!er o$ local

circ'lation !rovi(e( t#at in !rovinces+ cities+ an( m'nici!alities %#ere t#ere are no ne%s!a!ers o$ localcirc'lation+ t#e same ma* )e !oste( in at least t%o 23 cons!ic'o's an( !')licl* accessi)le !laces.

I$ t#e tax or(inance or reven'e meas're contains !enal !rovisions as a't#ori=e( in Article 27/ o$ t#is

R'le+ t#e &ist o$ s'c# tax or(inance or reven'e meas're s#all )e !')lis#e( in a ne%s!a!er o$ &eneral

circ'lation %it#in t#e !rovince %#ere t#e san&&'nian concerne( )elon&s. In t#e a)sence o$ an*ne%s!a!er o$ &eneral circ'lation %it#in t#e !rovince+ !ostin& o$ s'c# or(inance or meas're s#all )e

ma(e in accessi)le an( cons!ic'o's !')lic !laces in all m'nici!alities an( cities o$ t#e !rovince to

%#ic# t#e san&&'nian enactin& t#e or(inance or reven'e meas're )elon&s.In case t#e e$$ectivit* o$ an* tax or(inance or reven'e meas're $alls on an* (ate ot#er t#an t#e

 )e&innin& o$ t#e 4'arter+ t#e same s#all )e consi(ere( as $allin& at t#e )e&innin& o$ t#e next ens'in&

4'arter an( t#e taxes+ $ees+ or c#ar&es ('e s#all )e&in to accr'e t#ere$rom.)3 T#e con('ct o$ !')lic #earin&s s#all )e &overne( )* t#e $ollo%in& !roce('re

13 Dit#in ten 1:3 (a*s $rom $ilin& o$ an* !ro!ose( tax or(inance or reven'e meas're+ t#e same

s#all $irst )e !')lis#e( $or t#ree 83 consec'tive (a*s in a ne%s!a!er o$ local circ'lation or s#all )e

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 !oste( sim'ltaneo'sl* in at least $o'r 93 cons!ic'o's !')lic !laces %it#in t#e territorial 'ris(iction o$

t#e LGU concerne(.

23 In a((ition to t#e re4'irement $or !')lication or !ostin&+ t#e san&&'nian concerne( s#all ca'se

t#e sen(in& o$ %ritten notices o$ t#e !ro!ose( or(inance+ enclosin& a co!* t#ereo$+ to t#e intereste( ora$$ecte( !arties o!eratin& or (oin& )'siness %it#in t#e territorial 'ris(iction o$ t#e LGU concerne(.

83 T#e notice or notices s#all s!eci$* t#e (ate or (ates an( ven'e o$ t#e !')lic #earin& or #earin&s.

T#e initial !')lic #earin& s#all )e #el( not earlier t#an ten 1:3 (a*s $rom t#e sen(in& o't o$ t#e noticeor notices+ or t#e last (a* o$ !')lication+ or (ate o$ !ostin& t#ereo$+ %#ic#ever is later.

93 At t#e !')lic #earin& or #earin&s+ all a$$ecte( or intereste( !arties s#all )e accor(e( an

o!!ort'nit* to a!!ear an( !resent or ex!ress t#eir vie%s+ comments an( recommen(ations+ an( s'c# !')lic #earin& or #earin&s s#all contin'e 'ntil all iss'es #ave )een !resente( an( $'ll* (eli)erate( '!on

an(or a consens's is o)taine(+ %#et#er $or or a&ainst t#e enactment o$ t#e !ro!ose( tax or(inance or

reven'e meas're.3 T#e secretar* o$ t#e san&&'nian concerne( s#all !re!are t#e min'tes o$ s'c# !')lic #earin& an(

s#all attac# to t#e min'tes t#e !osition !a!ers+ memoran(a+ an( ot#er (oc'ments s')mitte( )* t#ose

%#o !artici!ate(.

c3 No tax or(inance or reven'e meas're s#all )e enacte( or a!!rove( in t#e a)sence o$ a !')lic#earin& ('l* con('cte( in t#e manner !rovi(e( in t#is Article.

ARTICLE 277. 0'rnis#in& o$ Co!ies o$ Tax Or(inances an( Reven'e ?eas'res. " Co!ies o$ all

 !rovincial+ cit*+ m'nici!al+ an( )aran&a* tax or(inances an( reven'e meas'res s#all )e $'rnis#e( t#eres!ective local treas'rers concerne( $or !')lic (issemination. casia

ARTICLE 27-. Existin& Tax Or(inances or Reven'e ?eas'res. " a3 All existin& tax or(inances

or reven'e meas'res o$ !rovinces+ cities+ m'nici!alities+ an( )aran&a*s im!osin& taxes+ $ees+ or c#ar&ess#all contin'e to )e in $orce an( e$$ect a$ter t#e e$$ectivit* o$ t#e Co(e+ exce!t t#ose im!osin& levies on

tax )ases or tax s')ects %#ic# are no lon&er %it#in t#e taxin& an( reven'e,raisin& !o%ers o$ t#e LGU

concerne( an( %#ere t#e rates levie( in t#e tax or(inance are #i&#er t#an t#e taxes+ $ees+ or c#ar&es

 !rescri)e( in t#is R'le in %#ic# case+ t#e lo%er rates s#all )e collecte(.)3 In case o$ $ail're o$ t#e san&&'nian to amen( or revo<e tax or(inances or reven'e meas'res

inconsistent %it#+ or in violation o$ t#e !rovisions o$ t#is R'le+ t#e same s#all )e (eeme( rescin(e(

'!on t#e e$$ectivit* o$ t#e Co(e an( t#ese R'les.ARTICLE 27/. Penalties $or Biolation o$ Tax Or(inances. " T#e san&&'nian o$ an LGU is

a't#ori=e( to !rescri)e im!risonment or $ines or ot#er !enalties $or violation o$ tax or(inances )'t in

no case s#all s'c# im!risonment )e less t#an one 13 mont# nor more t#an six >3 mont#s or s'c# $ine )e less t#an One T#o'san( Pesos P1+:::.::3 nor more t#an 0ive T#o'san( Pesos P+:::.::3+ or )ot#

s'c# im!risonment or $ine+ at t#e (iscretion o$ t#e co'rt. T#e san&&'nian )aran&a* ma* !rescri)e a $ine

o$ not less t#an One 'n(re( Pesos P1::.::3 nor more t#an One T#o'san( Pesos P1+:::.::3.ARTICLE 2-:. Attem!t to En$orce Boi( or 's!en(e( Tax Or(inances an( Reven'e ?eas'res.

 " En$orcement o$ an* tax or(inance or reven'e meas're a$ter ('e notice o$ t#e (isa!!roval or

s's!ension t#ereo$ s#all )e a s'$$icient &ro'n( $or a(ministrative (isci!linar* action a&ainst t#e local

o$$icials an( em!lo*ees res!onsi)le t#ere$or. An* attem!t to en$orce an* tax or(inance or reven'emeas're (eeme( rescin(e( )* o!eration o$ la%+ or t#e e$$ectivit* o$ %#ic# #as )een s's!en(e(+ or t#e

 !assa&e o$ %#ic# #as )een (eclare( ille&al+ s#all s')ect t#e local o$$icials an( em!lo*ees res!onsi)le

t#ere$or to a(ministrative (isci!linar* action.ARTICLE 2-1. A't#orit* to A('st Rates o$ Taxes. " LGUs s#all )e a't#ori=e( to a('st t#e tax

rates !rescri)e( in t#is R'le not o$tener t#an once ever* $ive 3 *ears+ )'t in no case s#all s'c#

a('stments excee( ten !ercent 1:F3 o$ t#e rates $ixe( in t#is R'les.ARTICLE 2-2. A't#orit* to Grant Tax Exem!tion Privile&es or Incentives. " a3 D#ile

san&&'nians ma* &rant tax exem!tion+ tax incentive+ or tax relie$+ s'c# &rant s#all not a!!l* to

re&'lator* $ees %#ic# are levie( 'n(er t#e !olice !o%er o$ LGUs. Tax exem!tions s#all )e con$erre(

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t#ro'&# t#e iss'ance o$ a tax exem!tion certi$icate+ %#ic# s#all )e non,trans$era)le.

)3 T#e san&&'nians &rantin& tax exem!tions+ tax incentives an( tax relie$s ma* )e &'i(e( )* t#e

$ollo%in&

13 On t#e &rant o$ tax exem!tions or tax relie$si3 Tax exem!tion or tax relie$ ma* )e &rante( in cases o$ nat'ral calamities+ civil (ist'r)ance+

&eneral $ail're o$ cro!s+ or a(verse economic con(itions s'c# as s')stantial (ecrease in t#e !rices o$

a&ric'lt'ral or a&ri,)ase( !ro('cts5ii3 T#e &rant o$ exem!tion or relie$ s#all )e t#ro'&# an or(inance.

iii3 An* exem!tion or relie$ &rante( to a t*!e or <in( o$ )'siness s#all a!!l* to all )'sinesses

similarl* sit'ate(5 an(iv3 An* exem!tion or relie$ &rante( s#all ta<e e$$ect onl* ('rin& t#e next calen(ar *ear $or a !erio(

not excee(in& t%elve 123 mont#s as ma* )e !rovi(e( in t#e or(inance. In t#e case o$ s#are( reven'es+

t#e exem!tion or relie$ s#all onl* exten( to t#e LGU &rantin& s'c# exem!tion or relie$.23 On t#e &rant o$ tax incentives

i3 T#e tax incentive s#all )e &rante( onl* to ne% investments in t#e localit* an( t#e or(inance

s#all !rescri)e t#e terms an( con(itions t#ere$or5

ii3 T#e &rant o$ t#e tax incentive s#all )e $or a (e$inite !erio( not excee(in& one 13 calen(ar *ear5iii3 T#e &rant o$ tax incentives s#all )e )* or(inance !asse( !rior to t#e $irst 1st3 (a* o$ Han'ar* o$

an* *ear5 an(

iv3 An* tax incentive &rante( to a t*!e or <in( o$ )'siness s#all a!!l* to all )'sinesses similarl*sit'ate(.

ARTICLE 2-8. Dit#(ra%al o$ Tax Exem!tion Privile&es or Incentives. " Unless ot#er%ise

 !rovi(e( in t#is R'le+ )e&innin& Han'ar* 1+ 1//2+ all local tax exem!tion !rivile&es or incentives&rante( to an( !resentl* eno*e( )* an* !erson+ %#et#er nat'ral or 'ri(ical+ incl'(in& GOCCs+ are

consi(ere( %it#(ra%n+ exce!t t#e $ollo%in&

a3 Local %ater (istricts5

)3 Coo!eratives ('l* re&istere( 'n(er RA >/8-+ ot#er%ise <no%n as t#e Coo!erative Co(e o$ t#eP#ili!!ines5

c3 Non,stoc< an( non,!ro$it #os!itals an( e('cational instit'tions5

(3 6'siness enter!rises certi$ie( )* t#e 6oar( o$ Investments 6OI3 as !ioneer or non,!ioneer $or a !erio( o$ six >3 an( $o'r 93 *ears+ res!ectivel*+ $rom t#e (ate o$ re&istration5

e3 6'siness entit*+ association+ or coo!eratives re&istere( 'n(er RA >-1:5 an(

$3 Printer an(or !')lis#er o$ )oo<s or ot#er rea(in& materials !rescri)e( )* ;EC as sc#ool textsor re$erences+ inso$ar as recei!ts $rom t#e !rintin& an(or !')lis#in& t#ereo$ are concerne(.

Unless ot#er%ise re!eale( )* la%+ )'siness an( economic enter!rises o!eratin& %it#in

ex!ort !rocessin& =ones a(ministere( )* t#e Ex!ort Processin& Jone A't#orit* s#all contin'e to eno*t#e tax exem!tion !rivile&es an( tax incentives &rante( in P; >>+ as amen(e(.

PART TDELBE

Tax!a*ers Reme(ies

ARTICLE 2-9. Perio( o$ Assessment an( Collection. " a3 Local taxes+ $ees+ or c#ar&es s#all )eassesse( %it#in $ive 3 *ears $rom t#e (ate t#e* )ecome ('e. No action $or t#e collection o$ s'c#

taxes+ $ees+ or c#ar&es+ %#et#er a(ministrative or '(icial+ s#all )e instit'te( a$ter t#e ex!iration o$ s'c#

 !erio( !rovi(e( t#at taxes+ $ees or c#ar&es %#ic# #ave accr'e( )e$ore t#e e$$ectivit* o$ t#e Co(e ma* )e assesse( %it#in a !erio( o$ t#ree 83 *ears $rom t#e (ate t#e* )ecame ('e.

)3 In case o$ $ra'( or intent to eva(e t#e !a*ment o$ taxes+ $ees+ or c#ar&es+ t#e same ma* )e

assesse( %it#in ten 1:3 *ears $rom (iscover* o$ t#e $ra'( or intent to eva(e !a*ment.c3 Local taxes+ $ees+ or c#ar&es ma* )e collecte( %it#in $ive 3 *ears $rom t#e (ate o$ assessment

 )* a(ministrative or '(icial action. No s'c# action s#all )e instit'te( a$ter t#e ex!iration o$ sai( !erio(

 !rovi(e( t#at taxes+ $ees+ or c#ar&es assesse( )e$ore t#e e$$ectivit* o$ t#e Co(e ma* )e collecte( %it#in

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a !erio( o$ t#ree 83 *ears $rom t#e (ate o$ assessment.

(3 T#e r'nnin& o$ t#e !erio(s o$ !rescri!tion !rovi(e( in t#e !rece(in& !ara&ra!#s s#all )e

s's!en(e( $or t#e time ('rin& %#ic#

13 T#e treas'rer is le&all* !revente( $rom ma<in& t#e assessment o$ collection523 T#e tax!a*er re4'ests re,investi&ation an( exec'tes a %aiver in %ritin& )e$ore ex!iration o$ t#e

 !erio( %it#in %#ic# to assess or collect5 an(

83 T#e tax!a*er is o't o$ t#e co'ntr* or ot#er%ise cannot )e locate(.ARTICLE 2-. Protest on Assessment. " D#en t#e local treas'rer or #is ('l* a't#ori=e(

re!resentative $in(s t#at correct taxes+ $ees+ or c#ar&es #ave not )een !ai(+ #e s#all iss'e a notice o$

assessment statin& t#e nat're o$ t#e tax+ $ee+ or c#ar&e t#e amo'nt o$ (e$icienc*+ t#e s'rc#ar&es+interests+ an( !enalties. Dit#in sixt* >:3 (a*s $rom recei!t o$ t#e notice o$ assessment+ t#e tax!a*er

ma* $ile a %ritten !rotest %it# t#e local treas'rer contestin& t#e assessment5 ot#er%ise+ t#e assessment

s#all )ecome $inal an( exec'tor*. T#e local treas'rer s#all (eci(e t#e !rotest %it#in sixt* >:3 (a*s$rom t#e time o$ its $ilin&. I$ t#e local treas'rer $in(s t#e !rotest to )e %#oll* or !artl* meritorio's+ #e

s#all iss'e a notice cancellin& %#oll* or !artiall* t#e assessment. I$ t#e local treas'rer $in(s t#e

assessment to )e %#oll* or !artl* correct+ #e s#all (en* t#e !rotest %#oll* or !artl* %it# notice to t#e

tax!a*er.T#e tax!a*er s#all #ave t#irt* 8:3 (a*s $rom recei!t o$ t#e (enial o$ t#e !rotest or $rom t#e la!se o$ t#e

sixt*,(a* !erio( !rescri)e( in t#is Article %it#in %#ic# to a!!eal %it# t#e co'rt o$ com!etent

 'ris(iction5 ot#er%ise+ t#e assessment )ecomes concl'sive an( 'na!!eala)le.ARTICLE 2->. Claim $or Re$'n( or Tax Cre(it. " All tax!a*ers entitle( to a re$'n( or tax cre(it

 !rovi(e( in t#is R'le s#all $ile %it# t#e local treas'rer a claim in %ritin& ('l* s'!!orte( )* evi(ence o$

 !a*ment e.&.+ o$$icial recei!ts+ tax clearance+ an( s'c# ot#er !roo$ evi(encin& over!a*ment3 %it#int%o 23 *ears $rom !a*ment o$ t#e tax+ $ee+ or c#ar&e. No case or !rocee(in& s#all )e entertaine( in an*

co'rt %it#o't t#is claim in %ritin&+ an( a$ter t#e ex!iration o$ t%o 23 *ears $rom t#e (ate o$ !a*ment o$ 

s'c# tax+ $ee+ or c#ar&e+ or $rom t#e (ate t#e tax!a*er is entitle( to a re$'n( or tax cre(it.

T#e tax cre(it &rante( a tax!a*er s#all not )e re$'n(a)le in cas# )'t s#all onl* )e a!!lie( to $'t're taxo)li&ations o$ t#e same tax!a*er $or t#e same )'siness. I$ a tax!a*er #as !ai( in $'ll t#e tax ('e $or t#e

entire *ear an( #e s#all #ave no ot#er tax o)li&ation !a*a)le to t#e LGU concerne( ('rin& t#e *ear+ #is

tax cre(its+ i$ an*+ s#all )e a!!lie( in $'ll ('rin& t#e $irst 4'arter o$ t#e next calen(ar *ear on t#e tax('e $rom #im $or t#e same )'siness o$ sai( calen(ar *ear.

An* 'na!!lie( )alance o$ t#e tax cre(it s#all )e re$'n(e( in cas# in t#e event t#at #e terminates

o!eration o$ t#e )'siness involve( %it#in t#e localit*.ARTICLE 2-7. A't#orit* o$ t#e ecretar* o$ 0inance. " T#e ecretar* o$ 0inance s#all+ in

cons'ltation %it# t#e lea&'es o$ LGUs+ $orm'late an( !rescri)e+ $rom time to time+ !roce('res an(

&'i(elines as ma* )e necessar* $or t#e !ro!er+ e$$icient+ an( e$$ective im!lementation o$ t#is R'le.