39.

Villanueva vs city of iloilo

FACTS:

Relying on the passage of RA 2264 or the Local Autonomy Act, Iloilo enacted Ordinance 11 Series of 1960,
imposing a municipal license tax on tenement houses in accordance with the schedule of payment provided by
therein. Villanueva and the other appellees are apartment owners from whom the city collected license taxes
by virtue of Ordinance 11. Appellees aver that the said ordinance is unconstitutional for RA 2264 does not
empower cities to impose apartment taxes; that the same is oppressive and unreasonable for it penalizes those
who fail to pay the apartment taxes; that it constitutes not only double taxation but treble taxation; and, that it
violates uniformity of taxation.

Issue: Does the ordinance impose double taxation?

Ruling: No. While it is true that appellees are taxable under the NIRC as real estate dealers, and taxable under
Ordinance 11, double taxation may not be invoked. This is because the same tax may be imposed by the national
government as well as by the local government. The contention that appellees are doubly taxed because they
are paying real estate taxes and the tenement tax is also devoid of merit. A license tax may be levied upon a
business or occupation although the land or property used in connection therewith is subject to property tax.
In order to constitute double taxation, both taxes must be the same kind or character. Real estate taxes and
tenement taxes are not of the same character.