G.R. No. L-30159 – 233 Phil. 26 – Taxation Law – Local Taxation – Taxes Levied By a Province – Sand and Gravel Fee
In 1968, the Municipality of San Fernando, La Union, undertook road constructions. It sent its trucks to the nearby Municipality of Luna, La Union, to gather sand and gravel. But Luna, La Union, imposed fees on each truck. Mayor Lorenzo Dacanay of San Fernando filed an injunction case against the mayor of Luna (Timoteo Sta. Romana), its treasurer and their agents to enjoin them from collecting said fees. Sta. Romana et al., in their defense, averred that the collection of said fees is pursuant to an ordinance duly approved by the Municipal Council of Luna in consonance with its power to tax, and that the fees collected are reasonable, fair and legal.
ISSUE: Whether or not the Municipality of Luna is validly exacting the assailed fees on the hauling of gravel and sand.
HELD: No. Pursuant to the then Local Tax Code, a municipality like Luna is not authorized to exact fees for the hauling of gravel and sand within it. Such power is lodged only in the province, in this case, the province of La Union. Only La Union has the authority to exact taxes for sand and gravel extracted within its jurisdiction. The tax ordinance of Luna providing for such power to the municipality is therefore void. Corollary, San Fernando cannot extract sand and gravel from the Municipality of Luna without paying the corresponding taxes or fees that may be imposed by the province of La Union.
