Republic of the Philippines

PROVINCE OF CAGAYAN
Tuguegarao City

OFFICE OF THE SANGGUNIANG PANLALAWIGAN

COMMITTEE REPORT

COMMITTEE ON TAXATION, REVENUE AND PROPERTIES

SUBJECT:

Camalanuigan, Cagayan

RESOLUTION REQUESTING THE SANGGUNIANG PANLALAWIGAN THROUGH HON.

MELVIN K. VARGAS, VICE GOVERNOR, PROVINCE OF CAGAYAN TO GRANT REAL
PROPERTY TAX PENALTY AMNESTY IN THE MUNICIPALITY OF CAMALANUIGAN,
CAGAYAN.

Before this committee is a Resolution approved by the Sangguniang Bayan of

Camalanuigan, Cagayan, requesting the Sangguniang Panlalawigan to grant real
property tax amnesty in said municipality. Accordingly, the Local Government of
Camalanuigan has been deprived of its ability to reach its goal in the aspect of
revenue collection due to high level of realty tax delinquency. Hence, the grant of
tax amnesty to certain delinquent real property taxpayers would not only encourage
settlement of the unpaid real property taxes but also accelerate the collection
thereof.

The Local Government Code of 1991 gives the power to local government units to
create their own sources of revenues and levy taxes, fees and charges. Corollary
thereto, the power of the local government unit to grant tax amnesty is provided
under the same Code. Section 192 provides:

“Section 192. 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.”

Howver, while this provision of the Local Government Code gives power to the local
government to grant tax exemptions, incentives, or reliefs, such power is not absolute.
It is a principle in taxation that the exception contained in tax statutes must be strictly
construed against the one claiming the exemption. Section 5(b) of the Local
Government Code is very explicit in saying, thus:

Section 5. (b) In case of doubt, any tax ordinance or revenue measure

shall be construed strictly against the local government unit enacting it,
and liberally in favor of the taxpayer. Any tax exemption, incentive or
relief granted by any local government unit pursuant to the provisions of
this Code shall be construed strictly against the person claiming it.
(emphasis supplied)

The authority therefore of the local government to grant tax amnesty must be
correlated with Section 276 of the Local Government Code which provides for the
criteria in declaring tax amnesty:
 Republic of the Philippines
PROVINCE OF CAGAYAN
Tuguegarao City

OFFICE OF THE SANGGUNIANG PANLALAWIGAN

Section 276. Condonation or Reduction of Real Property Tax and Interest. -
In case of a general failure of crops or substantial decrease in the price of
agricultural or agri-based products, or calamity in any province, city or
municipality, the sanggunian concerned, by ordinance passed prior to
the first (1st) day of January of any year and upon recommendation of
the Local Disaster Coordinating Council, may condone or reduce, wholly
or partially, the taxes and interest thereon for the succeeding year or years
in the city or municipality affected by the calamity.

Henceforth, therefore, before a condonation or reduction of real property tax may

be had, the following requirements must concur:

1. There must be a general failure of crops or substantial decrease in the price

of agricultural or agri-based products, or calamity in any province, city, or
municipality
2. There must be a recommendation from the Local Disaster Coordinating
Council
3. There must be an ordinance passed prior to the first day of January

In the resolution approved by the Sangguniang Bayan of municipality of

Camalanuigan, there was no showing that first and second requirements have been
complied with. Indeed, there would be no basis for the Sangguniang Panlalawigan
to enact an ordinance granting tax exemption, incentive, or relief.

Recommendation:

In view of the foregoing, this Committee is restricted to recommend for the passage
of an ordinance declaring tax amnesty in the municipality of Camalanuigan,
Cagayan. Nevertheless, this Committee may reconsider the same, upon the
compliance with the requirements as set forth in this Report.

COMMITTEE ON TAXATION, REVENUE AND PROPERTIES

HON. CRISTOPHER T. BARCENA

Chairman

HON. PERLA C. TUMALIUAN HON. VILMER V. VILORIA

Vice Chairman Member

HON. ROSAURO RODRIGO G. RESUELLO HON. MAILA ROSARIO S. TING-QUE

Member Member