Case Name JOSE J. FERRER, JR. VS.
CITY MAYOR HERBERT BAUTISTA
Topic
Case No. | Date G.R. No. 210551|June 30, 2015
Ponente
Doctrine (main lesson being taught by the case)
RELEVANT FACTS
• Petitioner, Jose J. Ferrer Jr., is a Quezon City property owner and assails the constitutionality
of two Quezon City ordinances, namely Ordinance No. SP-2095, S-2011 or the Socialized
Housing Tax of Quezon City and Ordinance No. SP-2235, S-2013 on garbage collection fees.
• Quezon City Council enacted an ordinance, Socialized Housing Tax of Quezon City, which will
collect 0.5% on the assessed value of land in excess of Php 100,000.00. This shall accrue to the
Socialized Housing Programs of the Quezon City Government. The special assessment shall go
to the General Fund under a special account to be established for the purpose.
• On the other hand, Ordinance No. SP-2235, S-2013 was enacted collecting garbage fees on
residential properties which shall be deposited solely and exclusively in an earmarked special
account under the general fund to be utilized for garbage collections.
ISSUE:
1. WON the Socialized Housing Tax (SHT) is Valid
2. WON the ordinance on Garbage Fees violates the rule on double taxation
3. WON the ordinance on Garbage Fees violates the rule on equality.
RULING:
1. Yes. The SHT charged by the QC Government is a tax which is within its power to impose. Cities are allowed to
exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or
incidental to efficient and effective provision of the basic services and facilities which include, among others,
programs and projects for low-cost housing and other mass dwellings. The collections made accrue to its socialized
housing programs and projects. The tax is not a pure
exercise of taxing power or merely to raise revenue; it is levied with a regulatory purpose. The levy is primarily in the
exercise of the police power for the general welfare of the entire city. It is greatly imbued with public interest.
2. No, The fee imposed for garbage collections under Ordinance No. SP-2235 is a charge fixed for the regulation of
an activity. In Progressive Development Corporation v. Quezon City, the Court declared that “if the generating of
revenue is the primary purpose and regulation is merely incidental, the imposition is a tax; but if regulation is the
primary purpose, the fact that incidentally revenue is also obtained does not make the imposition a tax.” In a U.S.
case, the garbage fee was considered as a "service charge" rather than a taxas it was actually a fee for a service
given by the city which had previously been provided at no cost to its citizens.Hence, not being a tax, the contention
that the garbage fee under Ordinance No. SP-2235 violates the rule on double taxation must necessarily fail.
3. Yes, the ordinance on Garbage Fees violates the rule on equality, The rates being charged by the ordinance are
unjust and inequitable: a resident of a 200 sq. m. unit in a condominium or socialized housing project has to pay
twice the amount than a resident of a lot similar in size; unlike unit occupants, all occupants of a lot with an area of
200 sq. m. and less have to pay a fixed rate of Php100.00; and the same amount of garbage fee is imposed
regardless of whether the resident is from a condominium or from a socialized housing project.
RULING
WHEREFORE, the petition is PARTIALLY GRANTED. The constitutionality and legality of Ordinance No.
SP-2095, S-2011, or the “Socialized Housing Tax of Quezon City,” is SUSTAINED for being consistent with
Section 43 of Republic Act No. 7279. On the other hand, Ordinance No. SP-2235, S-2013, which collects
an annual garbage fee on all domestic households in Quezon City, is hereby declared as
UNCONSTITUTIONAL AND ILLEGAL. Respondents are DIRECTED to REFUND with reasonable dispatch
the sums of money collected relative to its enforcement.
SEPARATE OPINIONS
(optional)
NOTES
long case, full text for better understanding
