Ordinance amending certain provision of
Ordinance No. 169, S-1997 known as
"An Ordinance Adopting the Revised Business Tax Code of Mandaluyong City"

Chapter 2
Taxes on Business

Section 3. Imposition of Tax

There is hereby imposed on the following persons who establish, operate, conduct, or maintain their respective businesses within the City of Mandaluyong a graduated business tax in the amount hereafter prescribed.

Section 4. Newly Operated Business

For a newly started business falling under paragraph (a), (b), (c), (d), (e), (f), (g), (h) above, the tax shall be fixed by the quarter. The initial tax for the quarter in which the business starts to operate shall be one half (1/2) of one-tenth (1/10) of one (1%) percent of the capital investment, but in no case shall it be less than the minimum provided therefor by the pertinent schedule. However, in succeeding quarter or quarters, in case the business opens before the last quarter of the year, the tax shall be based on the gross sales/receipts for the preceding quarter at the rate of one-fourth (1/4) of the annual rates fixed in the pertinent schedule of paragraphs (a), (b), (c), (d), (e), (f), (g), or (h) as the case may be. In the succeeding years, regardless of when the business started to operate, the tax shall be based on the gross sales/receipts for the preceding calendar year, or any fraction thereof, as provided in the pertinent schedule.

Section 5. Payment of Business

A. The taxes imposed under Section 3 shall be payable for every separate or distinct establishment or place where business subject to the tax is conducted and one line of business does not become exempt by being conducted with some other businesses for which such tax has been paid. The tax on a business must be paid by the person conducting the same.

B. In cases where a person conducts or operates two (2) or more of the businesses mentioned in Section 3 of this Code which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses.

C. In cases where a person conducts or operates two (2) or more businesses mentioned in Section 3 of this Code which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported for the purpose of computing the tax due from each business.

Section 6. Situs of the Tax

A. For purposes of collection of the taxes under Section 3 of this Code, manufacturers, assemblers, repackers, brewers, distillers, rectifiers and compounders of liquor, distilled spirits and wines, millers, producers, exporters, wholesalers, distributors, dealers, contractors, banks and other financial institutions, and other businesses, maintaining or operating branch or sales outlet elsewhere shall record the sale in the branch or sales outlet making the sale or transaction, and the tax thereon shall accrue and shall be paid to the City where such branch or sales outlet is located. In cases where there is no such branch or sales outlet in the city or municipality where the sale or transaction is made, the sale shall be duly recorded in the principal office and the taxes due shall accrue and shall be paid to such city or municipality.

B. The following sales allocation shall apply to manufacturers, assemblers, contractors, producers, and exporters with factories, project offices, plants, and plantations in the pursuit of their business:

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Article 4. Fixed Tax Rates on Business

Section 7. Imposition of Tax

There is hereby imposed, as herein below specified, taxes on the following businesses in the city;

F. On owners or operators of the following establishments:[tax table]

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Article 5. Administrative Provisions

Section 9. Accrual of Tax

Unless otherwise provided in this Code, all local taxes, fees, and charges shall accrue on the first (lst) day of January of each year. However, new taxes, fees or charges, or changes in the rates thereof, shall accrue on the first (lst) day of the quarter next following the effectivity of the ordinance imposing such new levies or rates.

Section 10. Time of Payment

Unless otherwise provided in this Code, all local taxes, fees, and charges 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 11. Surcharges and Penalties on Unpaid Taxes, Fees or Charges

The Sanggunian may impose a surcharge not exceeding twenty-five percent (25%) of the amount of taxes, fees or charges not paid on time and an interest at the rate not exceeding two percent (2%) per month of the unpaid taxes, fees or charges including surcharges, until such amount is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 12. Interest on Other Unpaid Revenues

Where the amount of any other revenue due a local government unit, except voluntary contributions or donations, is not paid on the date fixed in the ordinance, or in the contract, expressed or implied, or upon the occurrence of the event which has given rise to its collection, there shall be collected as part of that amount an interest thereon at the rate not exceeding two percent (2%) per month from the date it is due until it is paid, but in no case shall the total interest on the unpaid amount or a portion thereof exceed thirty-six (36) months.

Section 13. Collection of Local Revenues by Treasurer

All local taxes, fees, and charges shall be collected by the provincial, city, municipal, or barangay treasurer, or their duly authorized deputies.

Section 14. Examination of Books of Accounts and Pertinent Records of Businessmen by Local Treasurer

The provincial, city, municipal or barangay treasurer may, by himself or through any of his deputies duly authorized in writing, examine the books, accounts, and other pertinent records of any person, partnership, corporation, or association subject to local taxes, fees and charges in order to ascertain, assess, and collect the correct amount of the tax, fee or charge. Such examination shall be made during regular business hours, only once for every tax period, and shall be certified to by the examining official. Such certificate shall be made of record in the books of accounts of the taxpayer examined.

In case the examination herein authorized is made by a duly authorized deputy of the local treasurer, the written authority of the deputy concerned shall specifically state the name, address, and business of the taxpayer whose books, accounts, and pertinent records are to be examined, the date and place of such examination, and the procedure to be followed in conducting the same.

For this purpose, the records of the revenue district office of the Bureau of Internal Revenue shall be made available to the local treasurer, his deputy or duly authorized representative.

Section 15. Application of Chapter

The provisions of this Chapter and the remedies provided herein may be availed of for the collection of any delinquent local tax, fee, charge, or other revenue.

Section 16. Local Government's 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 may be subject to the lien but also upon property used in business, occupation, practice of profession or calling, or exercise of privilege with respect to which the lien is imposed. The lien may only be extinguished upon full payment of the delinquent local taxes, fees and charges including related surcharges and interest.

Section 17. Civil Remedies

The civil remedies for the collection of local taxes, fees, or charges, and related surcharges and interest resulting from delinquency shall be:

B. By judicial action.

Either of these remedies or all may be pursued concurrently or simultaneously at the discretion of the local government unit concerned.

Section 18. Distraint of Personal Property

The remedy by distraint shall proceed as follows:

A. SEIZURE. Upon failure of the person owing any local tax, fee, or charge to pay the same at the time required, the local treasurer or his deputy may, upon written notice, seize or confiscate any personal property belonging to that person or any personal property subject to the lien in sufficient quantity to satisfy the tax, fee, or charge in question, together with any increment thereto incident to delinquency and the expenses of seizure. In such case, the local treasurer or his deputy shall issue a duly authenticated certificate based upon the records of his office showing the fact of delinquency and the amounts of the tax, fee or charge and penalty due. Such certificate shall serve as sufficient warrant for the distraint of personal property aforementioned, subject to the taxpayer's right to claim exemption under the provisions of existing laws. Distrained personal property shall be sold at public auction in the manner herein provided for.

B. ACCOUNTING OF DISTRAINED GOODS. The officer executing the distraint shall make or cause to be made an account of the goods, chattels or effects distrained, a copy of which signed by himself shall be left either with the owner or person from whose possession the goods, chattels or effects are taken, or at the dwelling or place of business of that person and with someone of suitable age and discretion, to which list shall be added a statement of the sum demanded and a note of the time and place of sale.

F. DISPOSITION OF PROCEEDS. The proceeds of the sale shall be applied to satisfy the tax, including the surcharges, interest, and other penalties incident to delinquency, and the expenses of the distraint and sale. The balance over the above what is required to pay the entire claim shall be returned to the owner of the property sold. The expenses chargeable upon the seizure and sale shall embrace only the actual expenses of seizure and preservation of the property pending the sale and no charge shall be imposed for the services of the local officer or his deputy where the proceeds of the sale are insufficient to satisfy the claim, other property may in like manner be distrained until the full amount due including all expenses is collected.

Section 19. Levy on Real Property

After the expiration of the time required to pay the delinquent tax, fee, or charge, real property may be levied on before, simultaneously, or after the distraint of personal property belonging to the delinquent taxpayer. To this end, the Provincial, City or Municipal Treasurer, as the case may be, shall prepare a duly authenticated certificate showing the name of the taxpayer and the amount of the tax, fee, or charge, and penalty due from him. Said certificate shall operate with the force of a legal execution throughout the Philippines. Levy shall be effected by writing upon said certificate the description of the property upon which levy is made. At the same time, written notice of the levy shall be mailed to or served upon the Assessor and the Registrar of Deeds of the province or city where the property is located who shall annotate the levy on the tax declaration and certificate of title of the property, respectively, and the delinquent taxpayer or, if he be absent in respect to which the liability arose, or if there be none, to the occupant of the property in question.

In case the levy on real property is not issued before or simultaneously with the warrant of distraint on personal property, and the personal property of the taxpayer is not sufficient to satisfy his delinquency, the provincial, city or municipal treasurer, as the case may be, shall within thirty (30) days after execution of the distraint, proceed with the levy on the taxpayer's real property.

A report on any levy shall, within ten (10) days after receipt of the warrant be submitted by the levying officer to the Sanggunian concerned.

Section 20. Penalty for Failure to Issue and Execute Warrant

Without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, any local treasurer who fails to issue or execute the warrant of distraint or levy after the expiration of the time prescribed, or who is found guilty of abusing the exercise thereof by competent authority shall be automatically dismissed from the service after due notice and hearing.

Section 21. Advertisement and Sale

Within thirty (30) days after levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the claim and cost of sale; and such advertisement shall cover a period of at least thirty (30) days. It shall be effected by posting a notice at the main entrance of the municipal building or city hall, and in a public and conspicuous place in the barangay where the real property is located, and by publication once a week for three (3) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall contain the amount of taxes, fees or charges, and penalties due thereon, and the time and place of sale, the name of the taxpayer against whom property to be sold. At any time before the date fixed for the sale, the taxpayer may stay the proceedings by paying the taxes, fees, charges, penalties and interests. If he fails to do so, the sale shall proceed and shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as determined by the local treasurer conducting the sale and specified in the notice of sale.

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the Sanggunian concerned, and which shall form part of his records. After consultation with the Sanggunian, the local treasurer shall make and deliver to the purchaser a certificate of sale, showing the proceedings of the sale, describing the property sold, stating the name of the purchaser and setting out the exact amount of all taxes, fees, charges, and related surcharges, interests, or penalties: Provided, however, that any excess in the proceeds of the sale over the claim and cost of sales shall be turned over to the owner of the property. The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection by means of the remedies provided for in this Title, including the preservation or transportation in case of personal property, and the advertisement and subsequent sale, in cases of personal and real property including improvements thereon.

Section 22. Redemption of Property Sold

Within one (1) year from the date of sale, the delinquent taxpayer or his representative shall have the right to redeem the property upon payment to the local treasurer of the total amount of taxes, fees, or charges, and related surcharges, interests, or penalties from the date of delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase price from the date of purchase to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner shall be entitled to a certificate of redemption from the provincial, city or municipal treasurer or his deputy.

The provincial, city or municipal treasurer or his deputy, upon surrender by the purchaser of the certificate of sale previously issued to him, shall forthwith return to the latter the entire purchase price paid by him plus the interest of not more than two percent (2%) per month herein provided for, the portion of the cost of sale and other legitimate expenses incurred by him, and said property thereafter shall be free from the lien of such taxes, fees, or charges, related surcharges, interests, and penalties.

The owner shall not, however, be deprived of the possession of said property and shall be entitled to the rentals and other income thereof until the expiration of the time allowed for its redemption.

Section 23. Final Deed to Purchaser

In case the taxpayer fails to redeem the property as provided herein, the local treasurer shall execute a deed conveying to the purchaser so much of the property as has been sold, free from liens of any taxes, fees, charges, related surcharges, interests, and penalties. The deed shall succinctly recite all the proceedings upon which the validity of the sale depends.

Section 24. Purchase of Property by the Local Government Units for Want of Bidder

In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the taxes, fees, or charges, related surcharges, interests, penalties and costs, the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court.

Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the taxes, fees, charges, and related surcharges, interests, or penalties, and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the local government unit concerned.

Section 25. Resale of real Estate taken for taxes, Fees or Charges

The Sanggunian concerned may, by ordinance duly approved, and upon notice of not less than twenty (20) days, sell and dispose of the real property acquired under the preceding Section at public auction. The proceeds of the sale shall accrue to the general fund of the local government unit concerned.

Section 26. Collection of Delinquent Taxes, Fees, Charges or Other Revenues through Judicial Action

The local government unit concerned may enforce the collection of delinquent taxes, fees, charges or other revenues by civil action in any court of competent jurisdiction. The civil action shall be filed by the local treasurer within the period prescribed in Section 36 of this Code.

Section 27. Further Distraint or Levy

The remedies by distraint and levy may be repeated if necessary until the full amount due, including all expenses, is collected.

Section 28. Personal Property Exempt from Distraint or Levy

The following property shall be exempt from distraint and the levy attachment or execution thereof for delinquency in the payment of any local tax, fee or charge, including the related surcharge and interest:

A. Tools and the implements necessarily used by the delinquent taxpayer in his trade or employment;

E. Provisions, including crops, actually provided for individual or family use sufficient for four (4) months;

Section 29. Power to Levy Other taxes, Fees or Charges

Local government units may exercise the power to levy taxes, fees or charges on any base or subject not otherwise specifically enumerated herein or taxed under the provisions of the National Internal Revenue Code, as amended, or other applicable laws:

Provided, that the taxes, fees, or charges shall not be unjust, excessive, oppressive, confiscatory or contrary to declared national policy: Provided, further, that the ordinance levying such taxes, fees or charges shall not be enacted without any prior public hearing conducted for the purpose.

Section 30. Procedure for Approval and Effectivity of Tax Ordinances and revenue Measures; Mandatory Public Hearings

The procedure for approval of local tax ordinances and revenue measures shall be in accordance with the provisions of this Code: Provided, that public hearings shall be conducted for the purpose prior to the enactment thereof: Provided, further, that any question on the constitutionality or legality of tax ordinances or revenue measures may be raised on appeal within thirty (30) days from the effectivity thereof to the Secretary of Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal: Provided, however, that such appeal shall not have the effect of suspending the effectivity of the ordinance and the accrual and the payment of the tax, fee, or charge levied therein: Provided, finally, that within thirty (30) days after receipt of the decision of the lapse of the sixty-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 31. Publication 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 circulation: Provided, however, that in provinces, cities and municipalities where there are no newspaper of local circulation, the same may be posted in at least two (2) conspicuous and publicly accessible places.

Section 32. Furnishing of Copies of Tax Ordinances and revenue Measures

Copies of all provincial, city, and municipal and barangay tax ordinances and revenue measures shall be furnished the respective local treasurers for public dissemination.

Section 33. Attempt to Enforce Void or Suspended Tax Ordinances and revenue Measures

The enforcement of any tax ordinance or revenue measure after due notice of the disapproval or suspension thereof shall be sufficient ground for administrative disciplinary action against the local officials and employees responsible therefor.

Section 34. Authority of Local Government Units to Adjust Rates of Tax Ordinances

Local government units shall have the authority to adjust the tax rates as prescribed herein not oftener than once every five (5) years, but in no case shall such adjustment exceed ten percent (10%) of the rates fixed under this Code.

Section 35. Authority to Grant Tax Exemption Privileges

Local government units may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary.

Section 36. Withdrawal of tax Exemption Privileges

Unless otherwise provided in this 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 R.A. No. 6938, non-stock and non-profit hospitals and educational institutions, are hereby withdrawn upon the effectivity of this Code.

Local taxes, fees, or charges shall be assessed within five (5) years from the date they became due. No action for the collection of such taxes, fees, or charges, whether administrative or judicial, shall be instituted after the expiration of such period: Provided, that, taxes, fees or charges which have accrued before the effectivity of this Code may be assessed within a period of three (3) years from the date they became due.

Section 38. Protest 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 nature of the tax, fee or charge, the amount of deficiency, the surcharges, interests and penalties. Within sixty (60) days from the receipt 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. The local treasurer shall decide the protest within sixty (60) days from the time of its filing. If the local treasurer finds the protest to be wholly or partly meritorious, he shall issue a notice canceling wholly or partly 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. 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 herein within which to appeal with the court of competent jurisdiction, otherwise, the assessment becomes conclusive and unappealable.

Section 39. Claim for Refund of Tax Credit

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 the local treasurer. No case or proceeding shall be entertained in any court after the expiration of two (2) years from the date of the payment of such tax, fee, or charge, or from the date the taxpayer is entitled to a refund or credit.

Section 40. Penalties for Vio;ation of Tax Ordinances

The Sanggunian of a local government unit is authorized to prescribe fines or other penalties for violation of tax ordinances but in no case shall such fines be less than ONE THOUSAND PESOS (P1,000.00) nor more than FIVE THOUSAND PESOS (P5,000.00), nor shall imprisonment be less than one (1) month nor more than six (6) months. Such fine or other penalty, or both, shall be imposed at the discretion of the court. The Sangguniang barangay may prescribe a fine of not less than ONE HUNDRED PESOS (P100.00) nor more than ONE THOUSAND PESOS (P1,000.00).

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Article 6. Tax on Occupation

Section 41. Imposition of Tax

There is hereby imposed an annual occupational tax on all persons engaged in the exercise or practice of their profession or calling within Mandaluyong as follows:

Section 42. Payment of Tax

Every person legally authorized to practice his profession or calling shall pay the tax to the City Government of Mandaluyong or its duly authorized deputies if he practices his profession or pursues his calling or maintains his principal office in Mandaluyong:

Provided, that such person who has paid the corresponding occupation tax herein fixed shall be entitled to practice his profession or calling within Metropolitan Manila and in all parts of the Philippines without being subject to any other local tax, license or fee of whatever nature, for the practice of such profession or calling.

Section 43. Time of Payment

The occupation tax shall be payable annually, on or before the thirty-first day of January of each year. Any person first beginning to exercise an occupation or calling after the month of January must, however, pay the full tax before engaging therein. One line of occupation or calling does not become exempt by being conducted with some other occupation or calling for which the tax has been paid. Professionals exclusively employed in the government shall be exempt from the payment of this tax.

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Article 7. Taxes on Peddlers, Delivery Trucks or Vans

Section 44. Peddlers

Any person who, either for himself or on commission, travels from place to place and sells any merchandise or article of commerce shall pay the tax at a rate not exceeding ONE HUNDRED PESOS (P100.00) annually.

Section 45. Imposition of Tax on Delivery Trucks or Vans

There is hereby imposed on the following persons an annual fixed tax per truck or van, as follows:

Section 46. Payment of Taxes

The taxes prescribed in this Article shall be paid to the City Treasurer or its duly authorized deputies on or before the twentieth day of January each year.

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Article 8. Tax on Printing and Publications Business

Section 47. Imposition of Tax

There is hereby imposed on any person engaged in the business of printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets and others of similar nature, at a rate not exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year.

In the case of newly started business tax rate shall be as follows:

Printer .... P 100.00
Publisher .... P 50.00
Both printer and publisher... P 150.00

Section 48. Exemption from Tax

The receipts from the printing and/or publishing of books or other reading materials prescribed by the Department of Education, Culture and Sports as school texts or references shall be exempt from the tax imposed.

Section 49. Payment of Tax

The tax shall be paid to the City Treasurer or its duly authorized deputies on or before the twentieth day of January each year.

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Article 9. Amusement Tax on Admission

Section 50. Imposition of Tax

There is hereby imposed a tax on admission to theaters, cinematographs, concert halls, bowling alleys, green fees, basketball gyms, circuses and other places of amusement at the following rates:

Duckpin . . . P 10.00 per player

Tenpin. . . . . P15.00 per player

Section 51. Exemption

The holding of operas, concerts, dramas, recitals, painting and art exhibitions shall be exempt from the payment of the amusement tax imposed in this Code. However, film exhibition, pop and rock and similar concerts, and launching of new records/albums are not exempted.

Section 52. Deduction and Withholding Tax

In the case of theaters or cinematographs and other amusement places, the amusement tax on admission shall first be deducted and withheld by the proprietor, lessee, or operator of the theater or cinematograph and paid to the City Treasurer concerned before the gross receipts are divided between the proprietor, lessee or operator of the theater or cinematograph and the distributor of the cinematograph film.

Section 53. Payment of Tax

The tax shall be due and payable within the first twenty (20) days of the month next following that for which it is due by the proprietor, lessee or operator concerned, the tax shall be determined on the basis of a true and complete return of the amount of gross receipts derived during the month.

Section 54. Penalties

If the tax is not paid within the time fixed herein above, the taxpayer shall be subject to the surcharges, interests and penalties prescribed by this Code. In case of willful neglect to file the return and pay the tax within the time required or in case a fraudulent return is filed or a false return is willfully made, the taxpayer shall be subject to a surcharge of fifty (50%) per cent of the correct amount of the tax due in addition to the interest and penalties provided by this Code.

Section 55. Proceeds

The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be subject to disposition by the City Government of Mandaluyong levying the tax, fee, charge or other imposition.