The Court of Appeals 20 th Division in Cebu City has affirmed the decision of the Regional Trial Court Branch 56 in Himamaylan City enjoining the municipal government of Hinigaran from collecting fees for parking, fire fund and fire clearance from tricycle operators in the town.

The CA, however, ordered the lifting of the injunction against collection of municipal license fees from the same tricycle operators.

The 14-page decision, signed by Associate Justice Antonio Villamor, was handed down on Jan. 15, 2008 , copy of which was furnished to the DAILY STAR by Councilman Freddie Vergara of Brgy. 3 Poblacion.

Vergara is a member of the United Tricycle Operators and Drivers of Hinigaranon Inc., whose officers are the plaintiffs-appellees on the case against then Mayor Caroll Guanco and the municipal government.

In 2000 when the Revised Revenue Code of the town was implemented, the tricycle operators were required to pay the following: municipal license, P120; Mayor's permit, P120; application fee, P20; franchise fee, P100; parking fee, P100; fire fund fee, P34.50; fire clearance, P25; and cost of plate, P25.

The plaintiffs-appellees, led by Garwel Moreno, however, discovered that municipal license, parking fee, fire fee and fire clearance were not among those authorized by the Revised Revenue Code, resulting to an overpayment by each tricycle operator of P279.50 every year from 2000 to 2004.

The group appealed to Guanco but their objections were ignored, prompting them to file a complaint for injunction and damages on Jan. 28, 2005 . Three days later on Jan. 31, the RTC granted the temporary restraining order against the defendants.

In its decision, the CA said the local government units have the power to impose taxes within its territorial jurisdiction derived from the Constitution, and it agrees that operating motorized tricycles are subject to annual tax whether categorized as municipal license or business tax.

“We do not agree with the court's (RTC) ruling that the imposition of both the mayor's permit and municipal license amounts to double taxation,” the CA said.

But for the payment of fire fund and clearance fees, supposedly based on the Fire Code of the Philippines , the Appellate Court said it only applies to buildings and structures, and tricycle operators and drivers do not belong to the classification of owners and occupants of buildings and structures.

The CA said: “It would be manifestly prejudicial to plaintiffs-appellees' (tricycle operators) interest if defendants-appellants (Guanco, municipal government) were allowed to continue collecting parking fee, fire fund fee, and fire clearance. Plaintiffs-appellees, however, are liable for the payment of municipal license.”*NLG

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