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CITY OF BAGUIO Vs DE LEON

The City of Baguio passed an ordinance imposing license fees on businesses operating in the city. De Leon, a real estate agent, was required to pay a P50 annual fee for renting out property worth over P10,000 but less than P50,000. He failed to pay the P300 fee for the period of 1958-1962. The Supreme Court ruled that: 1) the ordinance was within the city's authority granted by law; 2) double taxation was allowed because one tax was imposed by the city and one by the state; and 3) the ordinance did not violate uniformity requirements as the fees were applied consistently based on property value.

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Juancho Miguel Mendoza Lising
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87 views1 page

CITY OF BAGUIO Vs DE LEON

The City of Baguio passed an ordinance imposing license fees on businesses operating in the city. De Leon, a real estate agent, was required to pay a P50 annual fee for renting out property worth over P10,000 but less than P50,000. He failed to pay the P300 fee for the period of 1958-1962. The Supreme Court ruled that: 1) the ordinance was within the city's authority granted by law; 2) double taxation was allowed because one tax was imposed by the city and one by the state; and 3) the ordinance did not violate uniformity requirements as the fees were applied consistently based on property value.

Uploaded by

Juancho Miguel Mendoza Lising
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CITY OF BAGUIO vs.

DE LEON
GR No. L-24756, October 31, 1968

Facts:

The City of Baguio passed an ordinance imposing a license fee on any person, entity or
corporation doing business in the City. The ordinance sourced its authority from RA No. 329, thereby
amending the city charter empowering it to fix the license fee and regulate businesses, trades and
occupations as may be established or practiced in the City. De Leon, a real estate agent was held
liable with a property worth more than 10k but not in excess of 50k. He was obliged to pay 50 annual
fee. He further engaged in the rental of his property from 1958 to 1962. The city attorney of Baguio
then filed a complaint for His failure to pay 300 as license fee covering the period mentioned.

Issues:

1.Was the ordinance made ultra vires?

No. First, RA 329 was enacted amending Section 2553 of the Revised Administrative Code
empowering the City Council not only to impose a license fee but to levy a tax for purposes of
revenue, thus the ordinance cannot be considered ultra vires for there is more than ample statutory
authority for the enactment thereof.

2. Was the due process clause violated because of the alleged double taxation imposed?

No. an argument against double taxation may not be invoked where one tax is imposed by the state
and the other is imposed by the city, so that where, as here, Congress has clearly expressed its
intention, the statute must be sustained even though double taxation results.

3. Is there a violation of uniformity?

None. According to the challenged ordinance, a real estate dealer who leases property worth
P50,000 or above must pay an annual fee of P100. If the property is worth P10,000 but not over
P50,000, then he pays P50 and P24 if the value is less than P10,000. On its face, therefore, the
above ordinance cannot be assailed as violative of the constitutional requirement of uniformity.
In Philippine Trust Company v. Yatco, Justice Laurel, speaking for the Court, stated: "A tax is
considered uniform when it operates with the same force and effect in every place where the subject
may be found."

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