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    CITY OF BAGUIO Vs DE LEON

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    Vikki Mae Amorio
    The Supreme Court upheld the validity of an ordinance enacted by the City of Baguio imposing license fees on businesses. The Court ruled that: 1) The city council had authority under its charter to tax businesses and regulate occupations within the city. Thus, the ordinance imposing license fees was within its powers and was not ultra vires. 2) The ordinance did not violate the constitutional requirement of uniformity. It reasonably classified businesses based on the value of leased property and imposed proportional license fees, operating with equal force. This established uniformity under the law.

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    CITY OF BAGUIO Vs DE LEON

    Uploaded by

    Vikki Mae Amorio
    41 views1 page
    The Supreme Court upheld the validity of an ordinance enacted by the City of Baguio imposing license fees on businesses. The Court ruled that: 1) The city council had authority under its charter to tax businesses and regulate occupations within the city. Thus, the ordinance imposing license fees was within its powers and was not ultra vires. 2) The ordinance did not violate the constitutional requirement of uniformity. It reasonably classified businesses based on the value of leased property and imposed proportional license fees, operating with equal force. This established uniformity under the law.

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    The Supreme Court upheld the validity of an ordinance enacted by the City of Baguio imposing license fees on businesses. The Court ruled that: 1) The city council had authority under its charter to tax businesses and regulate occupations within the city. Thus, the ordinance imposing license fees was within its powers and was not ultra vires. 2) The ordinance did not violate the constitutional requirement of uniformity. It reasonably classified businesses based on the value of leased property and imposed proportional license fees, operating with equal force. This established uniformity under the law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views1 page

    CITY OF BAGUIO Vs DE LEON

    Uploaded by

    Vikki Mae Amorio
    The Supreme Court upheld the validity of an ordinance enacted by the City of Baguio imposing license fees on businesses. The Court ruled that: 1) The city council had authority under its charter to tax businesses and regulate occupations within the city. Thus, the ordinance imposing license fees was within its powers and was not ultra vires. 2) The ordinance did not violate the constitutional requirement of uniformity. It reasonably classified businesses based on the value of leased property and imposed proportional license fees, operating with equal force. This established uniformity under the law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CITY OF BAGUIO vs DE LEON

    G.R. No. L-24756, October 31, 1968

    FACTS:

    Defendant-appellant Fortunato de Leon questioned the validity of an ordinance enacted


    by the City of Baguio, imposing a license fee on any person, firm, entitiy, or corporation doing
    business in the city. He was also held liable as a real estate dealer and was obligated to pay P300
    as license fee covering the period from the first quarter of 1958 to the fourth quarter of 1962.

    The trial court declared the ordinance as amended, valid and subsisting and held De
    Leon liable for the fees prescribed as a real estate broker. Hence, this appeal.

    ISSUE:

    1. Whether the enactment of the ordinance is justified.


    2. Whether there is violation of the rule of uniformity established by the Constitution.

    RULING:

    1. Whether the enactment of the ordinance is justified.

    The source of authority for the challenged ordinance is supplied by Republic Act 329,
    amending the city charter of Baguio, empowering it to fix the license fee and regulate
    "businesses, trades, and occupations as may be established or practiced by the city."

    The city council of Baguio, therefore, has now the power to tax, to license and to regulate
    provided that the subjects affected be one of those included in the charter. In this sense, the
    ordinance under consideration cannot be considered ultra vires whether its purpose be to levy a
    tax or impose a license fee. The terminology used is of no conse-quence."

    2. Whether there is violation of the rule of uniformity established by the


    Constitution.

    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 their same force and effect in every
    place where the subject may be found."

    The equality and uniformity in taxation means that all taxable articles or kinds of
    property of the same class shall be taxed at the same rate. The taxing power has the authority to
    make reasonable and natural classifications for purposes of taxation.

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