Case Digest (G.R. No. L-36081)
Case Digest (G.R. No. L-36081)
Facts:
Progressive Development Corporation v. Quezon City, G.R. No. L-36081, April 24, 1989, the Supreme Court Third Division, Feliciano, J., writing for the Court.Petitioner Progressive Development Corporation owned and operated the privately owned public market known as the Farmers Market & Shopping Center in Quezon City. On December 24, 1969, respondent Quezon City enacted Ordinance No. 7997 (Market Code of Quezon City), Section 3 of which required privately owned public-market operators to submit monthly certified lists of stallholders and to pay a 10% supervision fee measured on gross stall-rental receipts. On March 23, 1972, the City amended the Market Code by Ordinance No. 9236, imposing a five percent (5%) tax on gross receipts from rentals or leases of space in privately owned public markets and prescribing monthly reporting and penalties including permit revocation for consistent failure to pay.
On July 15, 1972, petitioner filed a Petition for Prohibition with Preliminary Injunction in the then Court of First Instance of Rizal (Branch 18), contending that the supervision fee/license tax was, in substance, a tax on income prohibited by Section 2(g) of Republic Act No. 2264 (Local Autonomy Act), and therefore beyond Quezon City’s power. Quezon City, through its City Fiscal, answered asserting authority to enact and collect the fee and that it was not an income tax. The Solicitor General also answered, arguing petitioner lacked personality and was estopped from attacking the ordinance for failing to pay the earlier 10% fee.
Petitioner filed a Supplemental Petition (September 23, 1972) alleging that it had paid under protest the 5% tax for June–September 1972, and then moved for judgment on the pleadings (September 25, 1972). The Court of First Instance dismissed the petition on October 21, 1972, holding the imposition to be a privilege or license tax within the City’s power. Petitioner sought review in the Supreme Court by a Petition for Review; no separate concurring or dissenting opinions appear in the record. The Third Division resolved the appeal on April 24, 1989, with Justice Feliciano as ponente.
Issues:
- Whether the gross-receipts charge imposed by Quezon City on stall rentals is an impermissible tax on income (prohibited by Section 2(g) of R.A. 2264) or a valid license fee/privilege tax imposed pursuant to the City’s police and taxing powers.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)