Court dismisses civil case asking to void city tax law
November 26, 2006 | 12:00am
The Regional Trial Court has dismissed a civil case filed by seven schools and hospitals seeking to nullify the city tax ordinance that imposed an additional 2.5 percent on their gross receipts.
RTC judge Estella Alma Singco said the case was dismissed because the complainants withdrew their petition after failing to follow the proper procedure for seeking to nullify an ordinance through an administrative remedy.
The petitioners are the Cebu Doctors University Hospital, Cebu Institute of Technology, Southwestern University, Sacred Heart Hospital, Cebu North General Hospital, and Cebu Velez General Hospital.
They claimed that the tax ordinance should be declared null and void because the 2.5 percent hike in taxes over their gross receipts is excessive.
Lawyers of the city government earlier moved for the dismissal of the case citing the complainants' failure to exhaust the administrative remedy.
City attorney Rodolfo Golez argued that the petitioners, in immediately taking the matter to court, have violated the provisions of Section 187 of Republic Act 7160, or the Local Government Code.
Golez said the law mandates the exhaustion of administrative remedy against tax ordinances, based on the ruling of the Supreme Court in the case of Jardine Davies Insurance Brokers, Inc., versus Aliposa, among other rulings.
Under the law, anybody who questions the constitutionality or legality of a tax ordinance may make an appeal to the Justice Secretary within 30 days from the date of implementation of such ordinance.
Mayor Tomas Osmeña approved City Tax Ordinance 113 last September 13, which was later published in local dailies on October 3.
The law provides that if there is no opposition to the new law, it would take effect 15 days after its publication.
On October 18, exactly 15 days after the publication of the ordinance was published, the seven schools and hospitals filed in court a civil case asking to declare the ordinance null and void. - Fred P. Languido/RAE
RTC judge Estella Alma Singco said the case was dismissed because the complainants withdrew their petition after failing to follow the proper procedure for seeking to nullify an ordinance through an administrative remedy.
The petitioners are the Cebu Doctors University Hospital, Cebu Institute of Technology, Southwestern University, Sacred Heart Hospital, Cebu North General Hospital, and Cebu Velez General Hospital.
They claimed that the tax ordinance should be declared null and void because the 2.5 percent hike in taxes over their gross receipts is excessive.
Lawyers of the city government earlier moved for the dismissal of the case citing the complainants' failure to exhaust the administrative remedy.
City attorney Rodolfo Golez argued that the petitioners, in immediately taking the matter to court, have violated the provisions of Section 187 of Republic Act 7160, or the Local Government Code.
Golez said the law mandates the exhaustion of administrative remedy against tax ordinances, based on the ruling of the Supreme Court in the case of Jardine Davies Insurance Brokers, Inc., versus Aliposa, among other rulings.
Under the law, anybody who questions the constitutionality or legality of a tax ordinance may make an appeal to the Justice Secretary within 30 days from the date of implementation of such ordinance.
Mayor Tomas Osmeña approved City Tax Ordinance 113 last September 13, which was later published in local dailies on October 3.
The law provides that if there is no opposition to the new law, it would take effect 15 days after its publication.
On October 18, exactly 15 days after the publication of the ordinance was published, the seven schools and hospitals filed in court a civil case asking to declare the ordinance null and void. - Fred P. Languido/RAE
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