Pelizloy Realty Corporation v. Province of Benguet, G.R. No. 183137, April 10, 2013

 CASE DIGEST

Pelizloy Realty Corporation v. Province of Benguet

G.R. No. 183137, April 10, 2013

 

Subject: Taxation Law

Principle: Municipal corporations, unlike a sovereign state, have no inherent power of taxation.

 

Facts: Pelizloy, an owner of a resort, questioned the legality of the ordinance and contended that it is not within the local taxing power of Benguet. Pelizloy posits that said amusement tax is an ultra vires act. However, the province claimed that the amusement tax imposed is already provided under the LGC falling under ‘other places of amusement.’

 

Issue: Whether or not provinces are authorized to impose amusement taxes on admission fees to resorts, swimming pools, bath houses, hot springs, and tourist spots for being "amusement places" under the LGC.

 

Ruling: No.

Resorts, swimming pools, bath houses, hot springs, and tourist spots are not among those places expressly mentioned in Sec. 140 of the LGC. Thus, the determination of whether it is a valid imposition hinges on whether the phrase ‘other places of amusement’ encompasses resorts, swimming pools, bath houses, hot springs, and tourist spots.

 

Section 131 (c) of the LGC already provides a clear definition: "Amusement Places" include theaters, cinemas, concert halls, circuses and other places of amusement where one seeks admission to entertain oneself by seeing or viewing the show or performances. It is clear that resorts, swimming pools, bath houses, hot springs and tourist spots cannot be considered venues primarily "where one seeks admission to entertain oneself by seeing or viewing the show or performances".

 

While it is true that they may be venues where people are visually engaged, they are not primarily venues for their proprietors or operators to actively display, stage or present shows and/or performances.

 

Thus, subject amusement tax imposed was declared null and void.