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DeLeon
CITYOFBAGUIOvs.DELEON
25SCRA938
GRNo.L24756,October31,1968
"Thereisnodoubletaxationwhereonetaxisimposedbythestateandthe
otherisimposedbythecity."
FACTS:TheCityofBaguiopassedanordinanceimposingalicensefeeon
anyperson,entityorcorporationdoingbusinessintheCity.Theordinance
sourceditsauthorityfromRANo.329,therebyamendingthecitycharter
empowering it to fix the license fee and regulate businesses, trades and
occupationsasmaybeestablishedorpracticedintheCity.DeLeonwas
assessedforP50annualfeeitbeingshownthathewasengagedinproperty
rentalandderivingincometherefrom.Thelatterassailedthevalidityofthe
ordinancearguingthatitisultraviresforthereisnostaturyauthoritywhich
expressly grants the City of Baguio to levy such tax, and that there it
imposeddoubletaxation,andviolatestherequirementofuniformity.
ISSUE:Arethecontentionsofthedefendantappellanttenable?
HELD: No. First, RA 329 was enacted amending Section 2553 of the
Revised Administrative Code empowering the City Council not only to
imposealicensefeebuttolevyataxfor purposesof revenue,thusthe
ordinance cannot be considered ultra vires for there is more than ample
staturyauthorityfortheenactmentthereof.
Second,anargumentagainstdoubletaxationmaynotbeinvokedwhere
onetaxisimposedbythestateandtheotherisimposedbythecity,sothat
where,ashere,Congresshasclearlyexpresseditsintention,thestatutemust
besustainedeventhoughdoubletaxationresults.
Andthird,violationofuniformityisoutofplaceitbeingwidely
recognizedthatthereisnothinginherentlyobnoxiousintherequirementthat
licensefeesortaxesbeexactedwithrespecttothesameoccupation,calling
oractivitybyboththestateandthepoliticalsubdivisionsthereof.
Reyesvs.Almanzor
REYESv.ALMANZOR
GRNos.L4983946,April26,1991
196SCRA322
FACTS:PetitionersJBLReyesetal.ownedaparceloflandinTondowhich
areLEASED andoccupiedasdwelling
unitsbytenantswhowerepayingmonthlyrentalsofnotexceedingP300.
Sometimesin1971theRental
FreezingLawwaspassedprohibitingforoneyearfromitseffectivity,an
increaseinmonthlyrentalsofdwelling
unitswhererentalsdonotexceedthreehundredpesos(P300.00),sothatthe
Reyeseswereprecludedfrom
raisingtherentsandfromejectingthetenants.In1973,respondentCity
AssessorofManilareclassifiedand
reassessed the value of the subject properties based on the schedule of
marketvalues,whichentailedan
increase in the corresponding tax rates prompting petitioners to file a
MemorandumofDisagreementaverring
that the reassessments made were "excessive, unwarranted, inequitable,
confiscatoryandunconstitutional"
consideringthatthetaxesimposeduponthemgreatlyexceededtheannual
incomederivedfromtheir
properties.Theyarguedthattheincomeapproachshouldhavebeenusedin
determiningthelandvaluesinstead
ofthecomparablesalesapproachwhichtheCityAssessoradopted.
ISSUE: Is the approach on tax assessment used by the City Assessor
reasonable?
HELD:No.Thetaxingpowerhastheauthoritytomakeareasonableand
naturalclassificationforpurposesof
taxation but the government's act must not be prompted by a spirit of
hostility,orattheveryleastdiscrimination
thatfindsnosupportinreason.Itsufficesthenthatthelawsoperateequally
anduniformlyonallpersonsunder
similarcircumstancesorthatallpersonsmustbetreatedinthesamemanner,
theconditionsnotbeingdifferent
bothintheprivilegesconferredandtheliabilitiesimposed.
Consequently,itstandstoreasonthatpetitionerswhoareburdenedbythe
governmentbyitsRentalFreezing
Laws(thenR.A.No.6359andP.D.20)undertheprincipleofsocialjustice
shouldnotnowbepenalizedbythe
samegovernmentbytheimpositionofexcessivetaxespetitionerscanill
affordandeventuallyresultinthe
forfeitureoftheirproperties.