LOCAL TAXATION AND FISCAL MATTERS
TITLE ONE. – LOCAL GOVERNMENT TAXATION CHAPTER 1. – GENERAL PROVISIONS
SECTION 128. Scope − The provision herein shall govern the exercise by provinces, cities, municipalities, and Barangays of their taxing and other revenue−raising powers.
SECTION 129. Power to Create Source of Revenue − Each local government unit shall exercise its power to create its own sources of revenue and to levy taxes, fees, and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local government units.
SECTION 130. Fundamental Principles. − The following fundamental principles shall govern the exercise of the taxing and other revenue−raising powers of local government units:
Taxation shall be uniform in each local government unit;
Taxes, fees, charges and other impositions shall:
be equitable and based as far as practicable on the taxpayer's ability to pay;
be levied and collected only for public purposes;
not be adjust, excessive, oppressive, or confiscatory;
not be contrary to law, public policy, national economic policy, or in restraint of trade;
(3) The collection of local taxes, fees, charges and other impositions shall in no case be let to any private person;
(4) The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be subject to disposition by, the local government unit levying the tax, fee, charge or other imposition unless otherwise specifically provided herein; and,
Each local government unit shall, as far as practicable, evolve a progressive system of taxation.
SECTION 131. Definition of Terms. − When used in this Title, the term:
(6) "Agricultural Product" includes the yield of the soil, such as corn, rice wheat, rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, and their by−products; ordinary salt; all kinds of fish; poultry; and livestock and animal products, whether in their original form or not.
The phrase "whether in their original form or not" refers to the transfers to the transformation of said products by the farmer, fisherman, producer or owner through the application of processes to preserve or otherwise to prepare said products for the market such as freezing, drying salting, smoking, or stripping for purposes of preserving or otherwise preparing said product s for market;
(7) "Amusement" is a pleasurable diversion and entertainment. It is synonymous to relaxation, avocation, pastime, or fun;
(8) "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;
(9) "Business" means trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit;
(10) "Banks and other financial institutions" include non−bank financial intermediaries, lending investors, finance and investment companies, pawnshops, money shops, insurance companies, stock markets, stockbrokers and dealers in securities and foreign exchange, as defined under applicable laws, or rules and regulations thereunder;
(11) "Capital Investment" is the capital which a person employees in any undertaking, or which he contributes to the capital of a partnership, corporation, or any other juridical entity or association in a particular taxing jurisdiction
"Charges" refer to pecuniary liability, as rents or fees against persons or property;
(13) "Contractor" includes persons, natural or juridical, not subject to professional tax under Section 139 of this Code, whose activity consists essentially of the sale of kinds of services for a fee, regardless of whether or not the performance of the service calls for the exercise...