Title
Clarification on Legal Research Fund Fee
Law
Lto Memorandum
Decision Date
Sep 30, 1992
The LTO Memorandum, dated September 30, 1992, mandates the collection of a Ten Pesos (P10.00) Legal Research Fund Fee for various motor vehicle transactions, amending the previous fee of Two Pesos (P2.00) while clarifying that the circular serves to announce this increase rather than amend existing law.
A

Questions (LTO MEMORANDUM)

It is based on Section 4d(1) of Republic Act No. 4136, as amended, in relation to Presidential Decree No. 200 and Batas Pambansa Blg. 395.

LTO Circular No. 46 dated August 16, 1973.

Ten Pesos (P10.00) is to be collected from each of the specified transactions.

Examples include: (1) application for registration of motor vehicles (new or renewal); (2) application for conduction permit of motor vehicles; (3) application for storage or return of motor vehicle plates; (4) change of status of motor vehicles (private to for-hire or vice versa); (5) application for change of passenger capacity. Others include rebuilt vehicle registration, change of ownership by modes recognized by law, operation of driving schools, and other LTO transactions connected with its quasi-judicial functions.

It indicates that beyond the enumerated items, any other LTO transactions that are connected to LTO’s quasi-judicial functions are also subject to the uniform P10.00 fee.

Yes. It directs the collection of Ten Pesos and expressly notes that the provisions are without prejudice to the collection of the Ten Pesos Legal Research Fund Fee required to be paid emanating from both quasi-judicial and purely administrative functions.

It states that the P10.00 collection is required for transactions connected with quasi-judicial functions, and also clarifies that the Legal Research Fund Fee is still collectible for both quasi-judicial and purely administrative functions.

The question is whether Circular No. 85-007 pertains to the collection of the Legal Research Fund Fee or the collection of an application fee. The opinion resolves that it relates to the Legal Research Fund Fee (specifically the increase from P2.00 to P10.00) rather than being a separate application fee.

Because it is an administrative issuance (a circular) and, under the Administrative Code, circulars typically prescribe policies, rules, regulations, or procedures to carry out a law—not amend substantive law.

A circular is an issuance prescribing policies, rules and regulations, and procedures promulgated pursuant to law, applicable to individuals/organizations outside government, and designed to supplement provisions of law or provide means for carrying them out.

It implies that administrative issuances cannot create new substantive obligations beyond the scope of the law that authorizes them; they must remain within the subject matter and authority of the law being implemented.

The Legal Research Fund Fee was increased from P2.00 to P10.00.

It described Circular No. 46 as dealing specifically with the Legal Research Fund, which Circular No. 85-007 merely continues/implements by increasing the fee.

It is a directive indicating that the addressees must follow the policy/procedure stated in the circular.

It could lead to incorrect fee collection practices, improper legal basis for imposing charges, and possible challenges to the validity or character of the collected amounts—contrary to the intended statutory implementation of the Legal Research Fund.

Administrative issuances must remain consistent with and limited by their enabling statutes; they supplement or provide implementation mechanisms, but cannot act as amendatory laws or introduce authority not granted by law.


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