TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B.

Aban
(PROF. CABANEIRO) A2011 1

LOCAL TAXATION

Local taxation as decentralization

The principles of local taxation under the 1987

Consititution simply means Decentralization. It does
not mean that local governments are sovereigns within
the state or imperium in imperio.

IN GENERAL
Two aspects of local taxation
1. Levy of taxes, fees, charges and other impositions
2. Real property taxation
POWER TO LEVY TAXES, FEES, CHARGES AND OTHER
IMPOSITIONS

Each local government unit shall have the power to

create its own sources of revenues and to levy taxes fees
and charges subject to such guidelines are limitations as
the Congress may provide, consistent with the basic
policy of local autonomy. Such taxes, fees, and charges
shall accrue exclusively to the local governments.
[Section 5, Article X, Constitution]

The power of local taxation is not inherent and is

conferred on local government units by the Constitution.
This is reiterated in Section 129 of the Local Government
Code of 1991.

Power is not plenary and absolute as it is subject to

guidelines and limitations as may be provided by
Congress.

Basco v. PAGCOR; A municipal corporation has no

inherent right to impose taxes. The power to tax must
always yield to a legislative act which is superior for
having been passed by the State itself which has the
inherent
power
to
tax.
LGU
cannot
tax
instrumentalities of the National Government, in this
case, PAGCOR.

Authority to prescribe penalties for tax violations and

limitations

Limited as to the amount of fine that they may impose as

well as the length or period of imprisonment that they
may provide.

Fees and charges

Fees means a charge fixed by law or ordinance for the

regulation or inspection of a business or activity. [Section
131(i), Local Government Code]

Charges refer to pecuniary liability, as rents or fees

against persons or property.
[Section 131(g), Local
Government Code]

POWER OF LOCAL TAXATION

Power of local taxation not inherent

JUICY NOTES

Authority to grant tax exemption privileges

With the grant of the power of taxation, local government

units have also been given the power to grant tax
exemptions corresponding to its taxing powers.

Local government units may, through ordinances duly

approved, grant tax exemptions, incentives or reliefs
under such terms and conditions as they may deem
necessary.

Guidelines of Sanggunians
On the grant of tax exemptions or tax reliefs
1. May be granted in cases of natural calamities, civil
disturbance, general failure of crops, or adverse

Chapter 10: LOCAL TAXATION. Page 1 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 2
economic conditions such as substantial decrease
in prices of agricultural or agri-based products.
2. Shall be through ordinance.
3. Shall take effect only during the next calendar
year for a period not exceeding 12 months.
4. Any exemption or relief granted to a type or kind
of business shall apply to all businesses similarly
situated.

On the grant of tax incentives

1. Shall be granted only to new investments.
2. Shall be for a definite period not exceeding one
calendar year
3. Shall be by ordinance passed prior to the first day of
January of any year.
4. Any tax incentive granted to a type or kind of
business shall apply to all businesses similarly
situated.

Local Governments can also impose those taxes, fees and

charges which do not fall within the scope of taxes which
are enumerated under the LGC, as well as those which
are levied on subject or bases which are not taxed under
the NIRC or other applicable laws.

Limitations:
1. Constitutional Limitation
2. Common limitations on the taxing power of LGU
as prescribed in Sec. 133 of the LGC.
3. Fundamental principles governing the exercise of
the taxing power by local governments as
prescribed under Sec. 130 of LGC.
4. The requirement prescribed in Sec. 186 of the LGC
which direct that the ordinance levying such
residual taxes shall not be enacted without any
prior public hearing conducted for the purpose.
5. The principle of pre-emption.

Withdrawal of tax exemption privileges

Unless otherwise provided in the Local Government Code,

tax exemptions or incentives granted to, or presently
enjoyed by all persons, whether natural or juridical,
including government-owned or controlled corporations,
except local water districts, cooperatives duly registered
under Republic Act No. 6938, non-stock and non-profit
hospitals and educational institutions, are hereby
withdrawn upon the effectivity of the Code.

Preemption or exclusionary rule

Authority of LGUs to adjust rates of tax ordinances

Local government units shall have the authority to adjust

the tax rates as prescribed in the Local Government Code
not oftener than once every five (5) years, but in no case
shall such adjustment exceed 10% of the rates fixed
under the Code.

Residual Taxing Powers of Local Governments

JUICY NOTES

Preemption in taxation refers to an instance wherein the

National Government elects to tax a particular area,
impliedly withholding from the local government the
delegated power to tax the same field. (Victorias Milling
Co. Vs Municipality of Victorias Negros Occidental, Sept
27, 1968)
Principally rests upon the intentions of the Congress.
Inapplicability of the Doctrine:
1. When congress allows municipal corporation to cover
fields of taxation it already occupies.
2. Beyond certain level of sales or receipts for the
preceding year.

Chapter 10: LOCAL TAXATION. Page 2 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 3
3. If the subjects of the taxes levied by the National and
Local Governments are different from each other.
Double taxation

Double taxation is not prohibited, except those between:

1. Provinces and municipalities;
2. Barangay and Cities, municipalities or provinces.

JUICY NOTES

The procedure for approval of local tax ordinances and

revenue measures shall be in accordance with the provisions of
the Local Government Code. [Section 187, Local Government
Code]
2. Mandatory public hearings
Public hearings shall be conducted for the purpose prior
to the enactment thereof. [Section 187, Local Government
Code]
3. Publication requirements

SCOPES AND EXERCISE OF LOCAL TAXING POWER

Local authority that shall exercise taxing power

The power shall be exercised by the appropriate

sanggunian or the sangguniang panlalawigan in the case
of provinces, the sangguniang panglungsod in the case of
cities, the sangguniang bayan in the case of
municipalities or the sangguniang barangay in the case
of barangays, through an appropriate ordinance.
[Section 132, Local Government Code]
The exercise of the power to tax by the local legislative
assembly is subject to the veto power of the local chief
executive.
1. Ultra Vires
2. Prejudicial to the public welfare

However, the sanguniang may override the veto by a 2/3 vote of

all its members.
Procedure for approval and effectivity of tax ordinances
and revenue measures

Within ten (10) days after their approval, certified true

copies of all provincial, city and municipal tax ordinances or
revenue measures shall be published in full for three (3)
consecutive days in a newspaper of local publication or, in the
absence of newspapers of local publication, posted in at least
two (2) conspicuous and publicly accessible places. [Section
188, Local Government Code]
4. Furnishing of copies to local treasurer
Copies of all provincial, city and municipal tax ordinances
or revenue measures shall be furnished to the respective local
treasurers for public dissemination.
[Section 189, Local
Government Code]
Procedure for protest of tax ordinances

Any question on the constitutionality of tax ordinances or

revenue measures may be raised on appeal within 30
days from the effectivity thereof to the Sec. of Justice.
[Sec. 187, Local Government Code].

After the lapse of 30 days and declaratory relief before

assessment; before payment

1. Enactment and approval by sanggunian.

Chapter 10: LOCAL TAXATION. Page 3 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 4
Note: Appeal from where? The provision is not really clear but
presumably after going through the same process of appealing
legality of ordinances, i.e. from municipal to provincial
sanggunian before going to the Secretary of Justice. Otherwise,
direct appeal to the Secretary may be made.

The Secretary of Justice shall render a decision within

sixty (60) days from the date of receipt of appeal.
[Section 187, Local Government Code]
Such appeal shall not have the effect of suspending the
effectivity of the ordinance and the accrual and payment
of the tax, fee, or charge levied therein. [Section 187,
Local Government Code]

Within thirty (30) days after receipt of the decision or the

lapse of the 60-day period without the Secretary of
Justice acting upon the appeal, the aggrieved party may
file appropriate proceedings with a court of competent
jurisdiction. [Section 187, Local Government Code]
Prescription for filing of review

Barangay ordinance file petition for review to

municipal/city sangunian within 10 days from enactment.

Municipal or Component city ordinance file with

Provincial sanggunian within 3 days from approval.

Chartered City/Provincial sanggunian file with Sec. of

Justice within 30 days from effectivity.

Review powers, of local treasurers and the Sec. of

Finance, on the validity of revenue ordianances have
been abrogated by the Local Government Code.

No power of control by Secretary of Justice over LGUs

Section 187 of the Local Government Code, which

authorizes the Secretary of Justice to review the

JUICY NOTES

constitutionally or legality of a tax ordinance and, if

warranted, to revoke it on either or both grounds is
valid, and does not confer the power of control over local
government units in the Secretary of Justice; as even if
the latter can set aside a tax ordinance he cannot
substitute his own judgment for that of the local
government units. [Drillon v. Lim, 253 SCRA 135]
Fundamental principles governing local taxation
1. Taxation shall be uniform in each local government unit.
2. Taxes, fees, charges and other impositions shall be
equitable and based as much as possible on the
taxpayers ability to pay.
3. They shall be levied and collected only for public
purposes.
4. They shall not be unjust, excessive, oppressive or
confiscatory.
5. They shall not be contrary to law, public policy, national
economic policy, or in restraint of trade.
6. The collection of local taxes, fees, charges, and other
impositions shall, in no case, be let to any person. Note:
This overrules the Bagatsing ruling [Bagatsing v.
Ramirez 7 SCRA 306]

Asiatic v. Alikpala The mere collection of market

stall fees may be let to a private entity, the same not
being taxes.

This is a doubtful decision since Sec. 130 of the LGC

covers not only the collection of taxes but likewise all
other impositions under the LGC.

7. The revenue collected under the local Government Code

shall inure solely to the benefit of, and subject to

Chapter 10: LOCAL TAXATION. Page 4 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 5
disposition by, the local government unit levying the tax,
fee, charge or other imposition unless specifically
provided therein.
8.

Each local government unit shall, as far as practicable,

evolve a progressive system of taxation. [Section 130,
Local Government Code]

9. The interpretation of laws on the grant of taxing power to

LGUs shall be liberally interpreted in favor of the LGU,
But, doubts on the liability of the taxpayer under a valid
tax ordinance is construed strictly against the LGU,
except as regards to tax exemptions, incentives or reliefs.
10. The National Government cannot deprive LGUs of their
taxing power as this power is expressly granted and
mandated by the Constitution. The laws may provide
limitations, but they cannot totally abrogate the taxing
power of the LGUs
11. Congress cannot enact local tax law, only guidelines and
limitations.

JUICY NOTES

constitutes a valid license tax or fee for the

regulation of the business rather than as
Income tax.
2. documentary stamp tax;
3. taxes or estates, inheritance, gifts, legacies and other
acquisitions mortis causa, except as otherwise
provided herein;
4. Customs duties, registration fees of vessels and
wharfage on wharves, tonnage dues, and all other
kinds of customs fees, charges and due, except
wharfage on wharves constructed and maintained by
the LGU concerned;
5. Taxes, fees and charges and other impositions upon
goods carried into or out of, or passing through, the
territorial jurisdictions of LGUs in the guise of charges
for wharfage, tolls for bridges or otherwise, or other
taxes, fees or charges in any form whatsoever upon
such goods or merchandise;
6. Taxes, fees or charges on agricultural and aquatic
products when sold by marginal farmers or fishermen;

Common limitations on the taxing powers of LGUs

7. Taxes or business enterprises certified to by the Board

of Investments as pioneer or non-pioneer for a period
of six (6) and four (4) years, respectively from the
date of registration;

Unless otherwise provided therein, the exercise of the

taxing powers of provinces, citites, municipalities, and
barangays shall not extend to the levy of the following:

8. Excise taxes on articles enumerated in the NIRC, as

amended, and taxes, fees or charges on petroleum
products;

1. Income tax, except when levied on banks and other

financial institutions;

9. Percentage or value-added tax on sales, barters or

exchanges or similar transactions on goods or
services except as otherwise provided herein;

A 5% tax on gross receipts of rentals or lease

of spaces in a privately owned public market

Chapter 10: LOCAL TAXATION. Page 5 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 6
10. Taxes on the gross receipts of transportation
contractors
and
persons
engaged
in
the
transportation of passengers of freight by hire and
common carriers by air, land or water, except as
provided in this Code;
11. Taxes on premiums paid by way of
retrocession;

13. Taxes, fees, or other charges on Philippine products

actually exported, except as otherwise provided
herein;
14. Taxes, fees or charges on Countryside and Barangay
Business Enterprises and cooperatives duly registered
under Republic Act No. 6810 and Republic Act No.
6938, otherwise known as the Cooperative Code of
the Philippines;
15. Taxes, fees or charges of any kind of the National
Government, its agencies and instrumentalities, and
local government units.
[Section 133, Local
Government Code]
Common limitations may be classified into the following
categories
1. Taxes which are levied by the NIRC
2. Taxes, fees and charges which are imposed under the
Tariff and Customs Code and other custom laws
3. Taxes, fees and charges the imposition of which
contravenes existing governmental policies or which are
violative of the fundamental principles of taxation
4. Taxes, fees and charges imposed under special laws
Scope of taxing power of provinces

1. Tax on the transfer of real property ownership or 1%

within 60 days
2. Tax on the business of printing and publication
3. Franchise tax

reinsurance or

12. Taxes, fees or charges for the registration of motor

vehicles and for the issuance of all kinds of licenses or
permits for the driving thereof, except tricycles;

JUICY NOTES

A local franchise tax may only be imposed on

companies with legislative franchises that do not
have the In lieu of all taxes proviso.

4. Tax on sand, gravel and other quarry resources

5. Professional tax P300

Professional exclusively employed in the government

shall be exempt from the payment of tax.

6. Amusement tax 30% of gross receipts

7. Annual fixed tax per delivery truck or van of
manufacturers or producers and wholesalers of, or
dealers in certain products. [Section 134-141, Local
Government Code]
Scope of taxing power of municipalities
1. Taxes, fees and charges not otherwise levied by
provinces
2. Fees and charges on business and occupation and
practice of any profession or calling
3. Fees for sealing and licensing of weights and measures
4. Fishery rentals, fees and charges [Section 142-149, Local
government Code]
Business

Business means trade or commercial activity regularly

engaged in as a means of livelihood or with a view to
profit.

A manufacturer or producer which sells its products

through a broker, is subject to excise tax (business tax) in

Chapter 10: LOCAL TAXATION. Page 6 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 7
the city or municipality where the broker conducts its
business.

A broker is an agent of the company, a dealer is not.

A city can validly tax the sales to customers outside the

city as long as the orders were booked and paid for in the
companys branch office in the city.

Scope of taxing power of cities

1. The city may levy the taxes, fees and charges which the
province or municipality may impose. [Section 151, Local
Government Code]
Note: The rates of taxes that the city may levy may exceed the
maximum rates allowed for the province of municipality by not
more than fifty percent (50%) except the rates of professional
and amusement taxes.
Scope of taxing power of barangays
1. Taxes on stores or retailers are fixed business
establishments with gross sales or receipts of the
preceding calendar year of P50,000 or less for barangays
in the cities and P30,000 of less for barangays in
municipalities
2. Service fees or charges for services rendered or use of
barangay-owned properties or service facilities
3. Barangay clearance
4. Other fees and charges [Section 152, Local Government
Code]
Other fees and charges by barangays

The barangay may levy reasonable fees and charges:

1. On commercial breeding of fighting cocks, cockfights
and cockpits;

JUICY NOTES

2. On places of recreation which charge admission fees;

and
3. On billboards, signboards, neon signs, and outdoor
advertisements.
Common revenue-raising powers of LGUs
1. Service fees and charges
2. Public utility charges
3. Toll fees or charges [Section 153-155, Local Government
Code]
SITUS OF LOCAL TAXATION
Situs according to the cases
Excise or privilege tax is not dependent on the domicile
of the taxpayer, but on the place in which the act is
performed or the occupation is engaged in; not upon the
location of the office, but the place where the sale is
perfected. (Allied Thread Co vs City Mayor of Manila,
November 21, 1984).
It is the place of consummation of the sale, associated
with the delivery of the things which are the subject
matter of the contract that determines the situs of the
contract for purposes of taxation, and not merely the
place of perfection of the contract. (Shell Co. V
Municipality of Sipocot Camarines Sur, 105 Phil 1263)
The city of Cebu can validly tax the sale of matches and
paid for the companys branch office in the city. The
matches can be regarded as sold in the city because the
matches were delivered to the carrier in Cebu City (Phil.
Match Co. Vs City Of Cebu, January 18, 1978)
Situs according to the LGC, Sec. 150
For manufacturers, assemblers, packers, brewers,
distillers, rectifiers, and compounders of liquor,
distilled spirit and wines, millers, producers,
exporters, wholesalers, distributors, dealers,
contractors, banks and other financial institutions,

Chapter 10: LOCAL TAXATION. Page 7 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 8
and other businesses maintaining or operating
branch or sales outlet elsewhere.

General Rule: Tax shall accrue and shall be paid to the

municipality where such branch or sales outlet is located.

JUICY NOTES

Sales allocation shall be applied irrespective whether or

not sales are made in the locality where the factory,
project office, plant or plantation is located.

Exception: To the municipality of the principal office if

there is no such branch or sales outlet in the city or
municipality where the transaction was made.

For
manufacturers,
assemblers,
contractors,
producers, and exporters with factories, project
offices, palnts and plantations in pursuit of their
business.

Sales Allocation
Prorated
among the
municipalit
ies when
factories
or
plantation
be more
than one

70%30%
for for
the city
the city
where
where
the the
factory
principal
or
plantation
office is
is located
located.

60% to the city

where the factory
is located when
location of
plantation is
diferrent

COMMUNITY TAX
Community tax

The community tax, which replaced the residence tax is

essentially a poll or capitation tax. It is of a fixed amount
imposed upon certain inhabitants of the Philippines
without regard to their property or the occupation in
which they may be engaged.

It is imposed both on individuals and juridical persons.

Individuals liable to community tax

Every inhabitant of the Philippines, 18 years of age or
over:

40 % to the city
where the
plantation is
located when
location of
factory is
diferrent

1.

who has been regularly employed on a wage or

salary basis for at least 30 consecutive working days
during any calendar year; or

2.

who is engaged in any business or occupation; or

3.

who owns real property with an aggregate assessed

value of P1,000 or more; or

4.

who is required by law to file an income tax return.

Annual community tax for individuals is P5.00 and an

annual additional tax of P1.00 for every P1,000 of income

Chapter 10: LOCAL TAXATION. Page 8 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 9
or from property wichi in no case shall exceed P5,000.
[Section 157, Local Government Code]
Inhabitant

Means any person, irrespective of his or her citizenship or

nationality, who dwells or resides in the Philippines for a
period exceeding three (3) months.

TAX REMEDIES AND ADMINISTRATIVE MATTERS IN

LOCAL TAXATION
Accrual of taxes

Unless otherwise provided in the Code, all local taxes,

fees and charges shall accrue on the first day of January
of each year.

New taxes, fees or charges, or charges in the rates

thereof, shall accrue on the first day of the quarter of the
next following the effectivity of the ordinance imposing
such new levies or rates.
[Section 166, Local
Government Code]

Juridical persons liable to community tax

Every corporation, no matter how created or organized,

whether domestic or resident foreign, engaged in or
doing business in the Philippines, shall pay an annual
community tax of P500.

An annual additional ax of P2.00 shall be imposed for

every P5,000 worth of real property in the Philippines
owned by it or for every P5,000 of gross receipts or
earnings received by it form its business in the
Philippines in the preceding year, but total amount must
not exceed P10,000. [Section 158, Local Government
Code]

Who are exempt from community tax?

Tax period and time of payment

Calendar year unless otherwise provided

Taxes shall be paid within the first twenty (20) days of

January or of each subsequent quarter, as the case may
be.

The sanggunian concerned may, for a justifiable reason

or cause, extend the time for payment of such taxes,
fees, or charges without surcharges or penalties, but
only for a period not exceeding six (6) months. [Section
165 and 167, Local Government Code]

1. Diplomatic and consular representatives

2. Transient visitors when their stay in the Philippines does
not exceed three (3) months.
[Section 159, Local
Government Code]
Accrual and payment of community tax
Community tax shall accrue on the first day of January
which shall be paid not later than the last day of February
each year.

JUICY NOTES

Local government lien

Local taxes, fees, charges and other revenues constitute

a lien, superior to all liens, charges or encumbrances in
favor of any person, enforceable by appropriate
administrative or judicial action, not only upon any
property or rights therein which maybe subject to the lien

Chapter 10: LOCAL TAXATION. Page 9 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 10

JUICY NOTES

but also upon property used in business, occupation or

calling, or exercise of privilege with respect to which the
lien is imposed.

1. The treasurer is legally prevented from making the

assessment or collection.

The lien is extinguished upon payment of the tax, fee or

charge, including the interest and surcharges. [Section
173, Local Government Code]

2. The taxpayer requests for a reinvestigation and executes

a waiver in writing before expiration of the period within
which to assess or collect.

Civil remedies for collection

3. The taxpayer is out of the country or otherwise cannot be

located. [Section 194(d), Local Government Code]

1. By administrative action
a. Distraint of personal property
b. Levy upon real property
2. By judicial action [Section 174, Local Government Code]

REMEDIES OF THE TAXPAYER IN LOCAL TAXATION

1. Protest by means of appeal to the secretary of
Justice.
2. Protest against the assessment
3. Claim for refund or tax credit

Period of assessment

Local taxes, fees, or charges shall be assessed within five

(5) years from the date they became due. [Section
194(a), Local Government Code]

In case of fraud or intent to evade the payment of taxes,

fees, or charges, the same may be assessed within ten
(10) years from discovery of the fraud or intent to evade
payment. [Section 194(b), Local Government Code]

Period of collection

Local taxes, fees, or charges may be collected within five

(5) years from the date of assessment of administrative
or judicial action. [Section 194 , Local Government
Code]

Suspension of period of assessment and collection

Protest against a newly enacted ordinance

May be raised on appeal within 30 days from the
effectivity thereof to the Secretary of Justice.
Shall NOT have the effect of suspending the effectivity of
the ordinance and the accrual and payment of the tax,
fee or charge levied therein.
Appeal from the decision of of the Sec of Justice is filed
with the regular court.
CTA has no jurisdiction over said appeal.
PROCEDURE FOR PROTEST OF ASSESSMENT
1. Notice of Assessment
When the local treasurer or his duly authorized
representative finds that correct taxes, fees, or charges have not
been paid, he shall issue a notice of assessment stating the

Chapter 10: LOCAL TAXATION. Page 10 of 11

TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban
(PROF. CABANEIRO) A2011 11
nature of the tax, fee or charge, the amount of deficiency, the
surcharge, interests and penalties.
[Section 195, Local
Government Code]
2. Written protest
Within sixty (60) days from the receipts of the notice of
assessment, the taxpayer may file a written protest with the
local treasurer contesting the assessment; otherwise, the
assessment shall become final and executory. [Section 195,
Local Government Code]

Remedy after payment in cases

erroneously or illegally collected.

No case or proceeding shall be maintained in any court

for the recovery of any tax, fee, or charge erroneously or
illegally collected until a written claim for refund or credit
has been filed with local treasurer. [Section 196, Local
Government Code]

Written claim for refund or credit must be filed with the

treasurer within two (2) years form the date of payment
of the tax, fee or charge or from the date the taxpayer is
entitled to a refund or credit (doctrine of supervening
cause therefore applies).
[Section 196, Local
Government Code]

3. Decision
The local treasurer shall decide the protest within sixty
(60) days from the time of its filing. If the treasurer finds the
protest to be wholly or partly meritorious, he shall issue a notice
canceling wholly or partially the assessment. However, if the
local treasurer finds the assessment to be wholly or partly
correct, he shall deny the protest wholly or partly with notice to
the taxpayer. [Section 195, Local Government Code]
4. Appeal
The taxpayer shall have thirty (30) days from the receipt
of the denial of the protest or from the lapse of the sixty-day
period prescribed within which to appeal with the court of
competent jurisdiction; otherwise, the assessment becomes
conclusive and unappealable. [Section 195, Local Government
Code]
Claim for refund or tax credit

JUICY NOTES
where

tax

was

Note: There is no provision governing the procedure in case the

claim for refund or credit is denied or not acted upon by the local
treasurer. The same procedure for protest of assessment may
be followed and, as such, the taxpayer may appeal with the
court of competent jurisdiction.
Injuction on the collection of local taxes

Unlike in the NIRC, the LGC does not specifically prohibit

the issuance of injunctions on the collection of local
taxes.

However, injunctions cannot be issued on the basis of the

alleged unconstitutionality of the tax ordinance. Until the
tax ordinance is declared to be unconstitutional, it is
presumed to be valid and constitutional.

Chapter 10: LOCAL TAXATION. Page 11 of 11