Question & AnswerQ&A (Act No. 740)
The main purpose of Act No. 740 is to correct an error in Act Numbered Six hundred and fifty-five regarding the exemption from payment of the cedula tax for persons who pay taxes on real estate or industrial taxes exceeding one peso.
Act No. 740 repealed Section 2 of Act No. 655 and the provision in paragraph (f) of Section 1 of Act No. 320 related to exemptions from the cedula tax for payment of real estate or industrial taxes more than one peso.
Persons who paid to the province and municipality together taxes on real estate or industrial taxes exceeding one peso were exempted from paying the cedula tax.
Act No. 740 abolished the exemption from the cedula tax that was previously granted to persons paying real estate or industrial taxes in excess of one peso; such persons are no longer exempt and must pay the cedula tax.
A cedula tax is a community tax that individuals are required to pay, used as a form of identification and to avoid disqualification to testify, execute instruments, vote, or hold office.
The legislative intent was to ensure that all persons, regardless of paying taxes on real estate or industrial tax in excess of one peso, still contribute to the cedula tax, ensuring uniform enforcement and collection.
Yes, previously, the land tax receipt could serve as identification and avoid disqualification for certain acts. However, with the repeal, payment of cedula tax is still obligatory regardless of real estate or industrial tax payment.
Section 2 provides that all laws or parts of laws inconsistent with the provisions of Act No. 740, including section thirty-four of the Provincial Government Act, are repealed.
Act No. 740 took effect immediately upon its passage on April 8, 1903.