DR. HERMENEGILDO SERAFICA, plaintiff-appellant, vs. THE TREASRER OF ORMOC CIT!, THE MNICI"AL #OARD OF ORMOC CIT!, HON. ESTE#AN C. CONE$OS, %& M%'or o( Or)o* Ci+' %,- ORMOC CIT!, defendants- appellees. Cleto P. Evangelista for plaintiff-appellant. The City Fiscal of Ormoc City for defendant-appellees. CONCE"CION, C.J.: Direct appeal from a decision of the Court of First Instance of Leyte dismissing plaintiff's complaint, without pronouncement as to costs. Plaintiff, Dr. ermenegildo !erafica, see"s a declaration of nullity of #rdinance $o. %&, !eries of %'(), of #rmoc City, imposing a *ta+ of five pesos ,P-.../ for every one thousand ,%,.../ 0oard feet of lum0er sold at #rmoc City 0y any person, partnership, firm, association, corporation, or entities*, pursuant to which the 1reasurer of said City levied on and collected from said plaintiff, as owner of the !erafica !awmill, the aggregate sum of P%,2&3.2), as ta+ on &(3,-(2 0oard feet of lum0er sold, in said City, during the third 4uarter of %'(). 5fter appropriate proceedings, the lower court rendered 6udgment upholding the validity of said ordinance and denying the relief prayed for 0y Dr. !erafica. ence, this appeal 0y the latter. 1he contested ordinance reads7 #8DI$5$C9 $#. %& 5$ #8DI$5$C9 I:P#!I$; 5 15< #F FI=9 P9!#! ,P-.../ F#8 9=98> #$9 1#?!5$D @#58D F991 #F L?:@98 !#LD 51 #8:#C CI1> 5$D F#8 #198 P?8P#!9!. @9 I1 #8D5I$9D, 0y authority of the :unicipal @oard of #rmoc City, Philippines, pursuant to the provisions of 8epu0lic 5ct %3', as amended 0y 85 )A', otherwise "nown as the Charter of #rmoc City, 1hat7 !9C1I#$ %. City tax. B 1here shall 0e paid to the City 1reasurer a city ta+ of five pesos ,P-.../ for every one thousand ,%,.../ 0oard feet of lum0er sold at #rmoc City 0y any person, partnership, firm, association, corporation or entity. !9C1I#$ A. Time and manner of payment and penalty for delinquency. B 1he city ta+ herein prescri0ed shall 0e paya0le without penalty within twenty ,A./ days after the close of every 4uarter for which the ta+ is due. Failure to pay the ta+ within the prescri0ed time shall render the ta+payer su06ect to a surcharge of fifty percentum ,-.C/ for the first offense and one hundred percentum ,%..C/ for su0se4uent failures to pay within the prescri0ed period. !9C1I#$ &. Payment to be rendered by taxpayer. B 1he ta+payer is here0y o0liged to include the ta+ due in every invoice issued for the sale of lum0er which ta+ shall 0e su0mitted for payment to the City 1reasurer within twenty ,A./ days after the close of every 4uarter. !9C1I#$ ). nspection of taxpayer!s boo"s and records. B For the purpose of enforcing the provisions of this #rdinance, the City 1reasurer or any of his deputies specifically authoriDed in writing for the purpose, shall have authority to e+amine the 0oo"s and records of any person, partnership, firm, association, corporation or entity su06ect to the ta+ herein imposed, P8#=ID9D, #E9=98, 1hat such e+amination shall 0e made only during regular 0usiness hours, unless the person, partnership, firm, association, corporation or entity concerned shall consent otherwise. !9C. -. Penalty for violation. B 5ny violation of the provisions of the #rdinance shall 0e punisha0le 0y a fine of not more than five hundred ,P-...../ pesos and an imprisonment of not more than three ,&/ months. !9C. (. Construction of this Ordinance. B If any part or section of this #rdinance shall 0e declared unconstitutional or ultra vires, such part or section shall not invalidate any other provision hereof. !9C. 3. Effectivity. B 1his #rdinance shall ta"e effect immediately upon approval. 9$5C19D, Fune %3, %'().la#phi$.n%t 89!#L=9D, F?8198, to authoriDe the City 1reasurer to copies of this #rdinance for issuance to all concernedG 89!#L=9D, FI$5LL>, to furnish a copy of this resolution-ordinance each to the City 1reasurer, the City 5uditor, the City Fiscal, the City Fudge, and all concernedG C588I9D. !i+ affirmative votes registered 0y Councilors 1ugonon, 5lfaro, Hierulf, 50as, @esa0ella, and DuG one a0stention registered 0y Councilor 5viles. + + + + + + + + + Plaintiff assails this ordinance as null and void upon the grounds that7 ,%/ the Charter of #rmoc City ,8epu0lic 5cts $os. %3' and )A'/ authoriDes the same to *regulate*, 0ut not to *ta+* lum0er yardsG ,A/ the ordinance in 4uestion imposes, in effect, dou0le ta+ation, 0ecause the 0usiness of lum0eryard is already regulated under said Charter and the sale of lum0er is *a mere incident to the 0usiness of lum0er yard*G ,&/ the ta+ imposed is *unfair, un6ust, ar0itrary, unreasona0le, oppressive and contrary to the principles of ta+ation*G and ,)/ *the pu0lic was not heard and given a chance to air its views* thereon. Eith respect to the first ground, Ee have held in Ormoc &ugar Co. v. 'unicipal (oard of Ormoc City, % that the ta+ing power of the City of #rmoc, under section A of the Local 5utonomy 5ct A is *0road* and *sufficiently plenary to cover everything, e+cepting those mentioned therein*. & It should 0e noted that in said case of #rmoc !ugar Co., Ee upheld the validity of a sales ta+. 5s regards the second ground, suffice it to say that regulation and ta+ation are two different things, the first 0eing an e+ercise of police power, whereas the latter is not, apart from the fact that dou0le ta+ation is not prohi0ited in the Philippines. ) 1he third o06ection is premised upon the fact that the ta+ in 4uestion is imposed regardless of the class of lum0er sold, although there are several categories thereof, commanding different prices. Plaintiff has not proven, however, or even alleged the prices corresponding to each category, so that, li"e the lower court, Ee have no means to ascertain the accuracy of the conclusion drawn 0y him, and must, accordingly, rely upon the presumption that the City Council had merely complied with its duty and that the ordinance is valid, unless and until the contrary has 0een duly esta0lished. - 1he last o06ection is 0ased upon Provincial Circular $o. A) of the Department of Finance, dated :arch &%, %'(., suggesting that, *in the enactment of ta+ ordinances .. under the Local 5utonomy 5ct ... #here practicable, pu0lic hearings 0e held wherein the views of the pu0lic ... may 0e heard.* 1his is, however, a mere suggestion, compliance with which is not o0ligatory, so that failure to act in accordance therewith can not and does not affect the validity of the ta+ ordinance. Indeed, since local governments are su06ect, not to the control, 0ut merely to the general supervision of the President, it is to say the least, dou0tful that the latter could have made compliance with said circular o0ligatory. ( Ee have not overloo"ed the fact that, pursuant to !ec. A of 8epu0lic 5ct $o. AA() as amended *no city, municipality or municipal district may levy or impose ... + + + + + + + + + ,e/ 1a+es on forest products or forest concessions.* 5lthough lum0er is a forest product, this imitation has no application to the case at 0ar, the ta+ in 4uestion 0eing imposed, not upon lum0er, 0ut upon its sale. !aid ta+ is not levied upon the lum0er in plaintiff's sawmill and does not 0ecome due until after the lum0er has 0een sold. ence, the case at 0ar is distinguisha0le from )olden *ibbon +umber Co., nc. v. City of (utuan 3 in that the ordinance involved therein provided that *every person, association or corporation operating a lum0er mill andIor lum0er yard within the territory of the City of @utuan shall pay to the City a ta+ of two-fifths ,P...)/ centavo for every board foot of lumber sa#n, manufactured and-or produced.* In short, the ta+ in that case was imposed upon the *lum0er* B a forest product, not su06ect to local ta+ation B whether sold or not. !imilarly, &antos +umber Co. v. City of Cebu 2 and .ose &. .ohnston / &ons v. *amon *egondola ' cited 0y the plaintiff, refer to situations arising before the enactment of 8epu0lic 5ct $o. AA(), %. and, hence, are inapplica0le to the present case. $either have Ee overloo"ed the proviso in !ec. A of said 5ct prohi0iting the imposition of *any percentage ta+ on sales or other ta+es in any form 0ased thereon,* for this in6unction is directed e+clusively to *municipalities and municipal districts,* and does not apply to cities. E989F#89, the decision appealed from should 0e, as it is here0y affirmed, with costs against plaintiff herein. It is so ordered.