Case Digest (G.R. No. 180235)
Facts:
In Alta Vista Golf and Country Club v. City of Cebu, decided on January 20, 2016 under the 1987 Constitution, petitioner Alta Vista Golf and Country Club, a non-stock, non-profit corporation operating a golf course in Cebu City, challenged the imposition of a twenty percent amusement tax on its green fees. The Sangguniang Panlungsod enacted the Revised Omnibus Tax Ordinance (City Tax Ordinance No. LXIX) on June 21, 1993, and amended Section 42 via Ordinances Nos. LXXXII (December 2, 1996) and LXXXIV (April 20, 1998) to impose a 20% tax on golf course receipts. In August 1998, the City Assessor issued an Assessment Sheet finding a P2,612,961.24 amusement tax deficiency for 1998. After refusing payment, petitioner received repeated demands and a final demand letter in October 2005. By December 28, 2005, Mayor Osmeña issued a Closure Order for operating without a permit and nonpayment of taxes. On January 13, 2006, petitioner filed with the Regional Trial Court (RTC), Cebu City, CiCase Digest (G.R. No. 180235)
Facts:
- Parties and Background
- Alta Vista Golf and Country Club (petitioner) is a non-stock, non-profit corporation operating a golf course in Cebu City.
- Respondents are the City of Cebu, its Mayor Tomas R. Osmeña, and City Treasurer Teresita C. Camarillo.
- Tax Ordinance and Amendments
- Cebu City enacted the Revised Omnibus Tax Ordinance (1993) with Section 42 imposing amusement tax: 30% on theaters, cinemas, etc., and 20% on golf courses.
- Section 42 was amended in 1996 (Ordinance LXXXII) and 1998 (Ordinance LXXXIV) to maintain these rates and conditions.
- Assessment and Petitioner’s Protest
- On August 6, 1998, the City Assessor issued a deficiency tax assessment for CY 1998, including P2,612,961.24 amusement tax on petitioner’s golf course.
- Petitioner disputed the amusement tax, citing the Local Government Code (LGC) definition of “amusement places” and PBA v. Court of Appeals. It filed letters of protest in 2005, which were denied by the City Treasurer.
- Closure Order and Court Proceedings
- On December 28, 2005, the Mayor issued a Closure Order for operating without a permit and nonpayment of taxes, including amusement tax.
- On January 13, 2006, petitioner filed a Petition for Injunction, Prohibition, Mandamus, and Nullity of the Closure Order, the tax assessment, and Section 42 of the Tax Ordinance in RTC Cebu City (Civil Case No. CEB-31988).
- RTC Resolution and Dismissal
- Respondents moved to dismiss for lack of jurisdiction, non-exhaustion of remedies, noncompliance with LGC Sec. 187, and failure to pay under protest.
- RTC denied injunctive relief (March 2006), and on March 14, 2007, dismissed the petition for failure to comply with Sec. 187. Its denial of reconsideration was issued October 3, 2007.
Issues:
- Procedural Issue
- Whether Section 187 of the Local Government Code restricts judicial review of the validity of a local tax ordinance when pure questions of law are involved.
- Substantive Issue
- Whether the City of Cebu or any local government unit can validly impose amusement tax on the act of playing golf by virtue of Section 42 of its Tax Ordinance.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)