Title
Municipal Tax Authority and Limitations Act
Law
Commonwealth Act No. 472
Decision Date
Jun 16, 1939
Commonwealth Act No. 472 grants municipal councils in the Philippines the authority to impose taxes on individuals engaged in businesses or occupations, while also outlining limitations and specific taxes that cannot be imposed.
A

Fixed Municipal License Tax Rates on Specific Businesses

  • Until revised, specified license taxes for the year include:
    • Retail dealers in tuba, basi, and tapuy: 5 pesos.
    • Proprietors of cockpits: 200 pesos; each cockfight (soltada) costs 25 centavos.
    • Proprietors of theaters, museums, cinematographs, and concert halls: 100 pesos annually or 10 pesos monthly.
    • Proprietors of circuses: 200 pesos annually or 20 pesos monthly.
    • Proprietors of billiard rooms: 10 pesos per table.
    • Pawnbrokers: 400 pesos annually.

Prohibited Taxes, Charges, and Fees

  • Municipal councils are prohibited from imposing various taxes and fees including:
    • Cedula tax and documentary stamp tax.
    • Taxes on printing and publication businesses not primarily for advertisements.
    • Taxes on telecommunication operators, utilities (light, heat, power).
    • Taxes on transportation businesses and common carriers.
    • Various wholesale dealers and manufacturers related to liquors and tobacco.
    • Taxes on professionals such as lawyers, doctors, engineers, nurses, etc.
    • Specific taxes on banks, insurance companies, and franchise taxpayers.
    • Charges on forest products and mining operations.
    • Taxes on estates, inheritances, gifts, and income.
    • Fees related to firearms, explosives, hunting permits, and marine resource gathering.
    • Taxes related to motor vehicle registration and licenses.
    • Customs duties and other customs-related fees.

Conditions Requiring Secretary of Finance Approval

  • Approval is mandatory when:
    • Municipal license taxes exceed national government internal revenue privilege rates on the same businesses, except for some exceptions (e.g., hotels, restaurants, retail dealers in liquors).
    • Fixed annual municipal license taxes on certain businesses exceed 50 pesos.
    • Any municipal license tax increase exceeds 50% for businesses without a fixed limit.
  • Licensed hawkers, peddlers, piano tuners, circus proprietors are exempt from obtaining additional licenses in other municipalities during the license period.

Repeal and Effectivity

  • This Act repeals earlier laws numbered 3422, 3700, 3790, 3833, and 4019.
  • The Act takes effect upon approval, June 16, 1939.

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