SC OKs QC housing tax, but not garbage fee

The Supreme Court has struck down as unconstitutional a Quezon City ordinance imposing garbage fees ranging from P100 to P500 on households, while sustaining the legality of another ordinance that imposes a socialized housing tax of 0.5 percent on land with an assessed value of P100,000.

 

Ordinance No. SP-2235, S-2013, enacted on December 16, 2013, violated the equal protection clause and the provisions of the Local Government Code that require an ordinance to be equitable and based on the taxpayer's ability to pay and not be unjust, excessive, oppressive and confiscatory, SC Public Information Office chief and spokesman Theodore Te said in a briefing on Tuesday.

 

The ordinance cited the volume of waste generated by each person in Quezon City at 0.66 kgs per day, presumably pertaining to the totality of wastes without distinction as to the type.

 

"This is inconsistent with the parameters set by Section 47 of RA 9003 (or Ecological Solid Waste Management Act of 2000), which limits the authority of the city to impose fees only to the collection and transport of non-recyclable and special wastes and for the disposal of these into the sanitary landfill," the SC ruled.

 

The SC also ordered the QC government to return with reasonable dispatch the sums of money collected since the ordinance was enforced.

 

However, the tribunal did not agree with the claim of petitioner Jose Ferrer Jr. that the garbage fee was tantamount to double taxation because garbage collection is a basic and essential public service that should be paid from the property tax, business tax, amusement tax, community tax certificate fees and other taxes and the Internal Revenue Allotment.

 

Ferrer insisted that the garbage fee should be covered by the city revenue collection, which he said amounted to P13.69 billion in 2012. A small portion of the city revenues could be spent for garbage collection and other essential services, the petitioner argued.

 

According to the high court, "there is no double taxation because the garbage fee is not a tax."

 

On Ordinance No. SP-2095, S-2011 or the "Socialized Housing Tax (SHT) of Quezon City," the SC deemed it consistent with Section 43 of Republic Act 7279 or the Urban Development and Housing Act of 1992.

 

Effective for five years, the SHT is to be used by the city government for the following projects: 

 

 

Under certain conditions, a tax credit shall to the taxpayers who regularly pay the special assessment. – VS, GMA News