Title
City of Naga vs. Agna
Case
G.R. No. L-36049
Decision Date
May 31, 1976
The Supreme Court upheld the enforceability of an ordinance mandating the City of Naga to refund taxes with accrued interest, favoring the private respondents based on statutory interpretation.
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Case Digest (G.R. No. L-36049)

Facts:

  • The case involves the City of Naga, represented by Mayor Vicente P. Sibulo and City Treasurer Joaquin C. Cleope, as petitioners against private respondents Catalino Agna, Felipe Agna, and Salud Velasco.
  • On June 15, 1970, the City of Naga enacted Ordinance No. 360, amending the graduated tax on quarterly gross sales of merchants as prescribed in Ordinance No. 4.
  • The ordinance aimed to implement a percentage tax on gross sales.
  • The private respondents paid taxes based on this ordinance for the quarter from July 1, 1970, to September 30, 1970:
    • Catalino Agna: P1,805.17
    • Felipe Agna: P625.00
    • Salud Velasco: P129.81
  • On February 13, 1971, the private respondents filed a claim for a refund, arguing that Ordinance No. 360 did not take effect until 1971, making their 1970 tax payments illegal.
  • The City Treasurer denied the claim, leading the private respondents to file a complaint in the Court of First Instance of Camarines Sur (Civil Case No. 7084).
  • They sought a declaration that the ordinance was enforceable only in 1971, requested a tax refund, and aimed to have certain sections declared null and void.
  • The petitioners argued that the payments were voluntary and that the ordinance was published according to the law, asserting it took effect in 1970.
  • The trial court ruled in favor of the private respondents, declaring the ordinance enforceable only in 1971 and ordering a refund along with attorney's fees and costs.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court ruled that Ordinance No. 360 took effect in 1971, the year following its approval.
  • The private respondents are entitled to a refund of the taxes paid under Ordinance No. 360.
  • ...(Unlock)

Ratio:

  • The Supreme Court's decision focused on the interpretation of the effectivity of Ordinance No. 360 concerning existing laws.
  • The Court examined Section 14 of Republic Act No. 305, which states that an ordinance takes effect ten days after its passage unless specified otherwise.
  • The ordinance was deemed approved on July 6, 1970, as it was neither vetoed nor approved by the Mayor within the stipulated time.
  • The Court also considered Section 2309 of the Revised Administrative Code, indicating that a tax ordinance changing an existing tax shoul...continue reading

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