Tax 2 - Quiz 5 (Local Government Taxation)

Explanation
The Sangguniang Panlalawigan is a legislative body at the provincial level in the Philippines. According to the Local Government Code, it is their responsibility to review the ordinances passed by municipalities within their jurisdiction. This review must be done within 3 days of the ordinance being approved by the municipal Local Chief Executive. Therefore, the statement is true.

Explanation
Barangay Ordinances do not need the approval of the Local Chief Executive. The Local Chief Executive may have the power to veto or reject proposed ordinances, but ultimately, the approval of the Local Chief Executive is not required for the ordinances to be enacted. The Barangay Council, composed of barangay officials, has the authority to pass ordinances and make decisions for the barangay without the direct approval of the Local Chief Executive. Therefore, the statement is false.

Explanation
An ordinance does not necessarily take effect within 15 days from the date of posting and publication. The statement in the question is incorrect. The effective date of an ordinance can be specified within the ordinance or resolution itself, and it may differ from the default 15-day period. Therefore, the correct answer is False.

Explanation
The statement is false because an approved ordinance by the Local Government Unit (LGU) cannot be appealed with the Department of Justice. Once an ordinance is approved by the LGU, it becomes effective and enforceable. If someone disagrees with the ordinance, they may challenge its validity through other legal means such as filing a lawsuit or seeking judicial review, but the Department of Justice is not the appropriate authority for such appeals.

Explanation
The statement is true because the 30-day period to appeal with the Secretary of Justice is a mandatory requirement. This means that if someone wants to challenge the legality or constitutionality of an ordinance, they must file an appeal within 30 days of the ordinance being enacted. Failure to do so within the specified timeframe may result in the appeal being dismissed or considered invalid.

Explanation
The explanation for the given correct answer is that in the case of CEPALCO v. City of Cagayan, the Supreme Court ruled that CEPALCO did not exhaust administrative remedies because it did not file an appeal to the Secretary of Justice (SOJ) within the 30-day period required by the Local Government Code. This means that CEPALCO failed to follow the proper procedure for resolving the dispute and seeking a remedy, leading to the court's decision that the statement is true.

Explanation
Provinces have the authority to levy taxes, while municipalities do not have the power to levy local taxes that are specifically allowed for provinces. Therefore, it is true that a local tax allowable to provinces cannot be levied by municipalities.

Explanation
Provinces and component cities in the context of local taxation have different powers and authorities. While provinces are allowed to levy certain taxes, component cities are also granted the same authority to impose taxes. Therefore, the statement that component cities are not allowed to levy taxes that provinces can is incorrect.

Explanation
The statement is true because provinces have the authority to impose local transfer taxes on the transfer of real property ownership. However, the maximum rate of this tax is typically set at 0.05%, meaning that it cannot exceed this percentage. This ensures that the tax burden on property transfers remains relatively low and consistent across provinces.

Explanation
Transfers in favor of the National Government are not exempt from the local tax on transfer of real property ownership.

Explanation
The statement is true because the local tax on transfer of real property ownership needs to be paid within 60 days from either the date of execution of the deed or the decedent's death. This means that when a property is transferred from one owner to another, whether through a sale or inheritance, the local tax must be paid within the specified timeframe.

Explanation
A local franchise tax is not a tax on the person or entity exercising the franchise rights and privileges. It is actually a tax imposed on the local franchise itself, typically based on the revenue or profits generated by the franchise. This tax is usually paid by the franchise owner or operator, not the individual or entity exercising the franchise rights.

Explanation
The given statement is false. In the CASURECO v. City of Iriga case, it was ruled that the local franchise tax is payable not only in the place where the principal office of the person subject to such tax is located, but also in the place where the franchise is exercised. This means that the tax can be imposed in both the location of the principal office and the location where the franchise is being utilized.

Explanation
The statement is false because the tax is not levied against any persons who extract ordinary stones, sand, grave, earth, and other quarry resources from a public or private land.

Explanation
The statement is true because according to the given information, the permit to extract quarry resources can only be issued by the provincial governor, and this can only be done in accordance with the ordinance of the sangguniang panlalawigan. This means that no other authority or individual has the power to issue such permits, making the statement correct.

Explanation
The statement is true because the Barangay where the extraction of sand, gravel, and other quarry resources takes place is entitled to the largest share of the local tax revenue generated from these activities. This is because the Barangay is the local government unit closest to the source of the resources and is responsible for managing and overseeing the extraction process. Therefore, it is fair for the Barangay to receive a larger portion of the tax revenue to support local development and infrastructure projects.

Explanation
The statement is true because in many countries, the authority to collect local professional tax lies with the provincial or city governments. This tax is typically imposed on individuals who are engaged in certain professions or occupations within the jurisdiction. It is a way for local governments to generate revenue and fund local development projects. The collection of this tax is often regulated by specific laws and regulations, and individuals who fail to pay may be subject to penalties or legal consequences.

Explanation
The given statement states that the professional tax should be paid annually on or before the last day of January. This implies that individuals or professionals are required to pay their professional tax once a year, and the deadline for payment is the last day of January. Therefore, the statement is true.

Explanation
Government professionals are exempt from paying the local professional tax because they are considered to be serving the government in an official capacity. This exemption is given to acknowledge their contribution to public service and to ensure that their salaries are not burdened by additional taxes.

Explanation
The given statement is true because "other amusement places" refers to venues that are primarily designed for hosting performances or exhibitions that are meant to be viewed by a specific audience. This suggests that these places are distinct from general amusement venues and are focused on providing entertainment through performances or exhibitions. Therefore, the statement accurately defines the term "other amusement places" within the context of local amusement tax.