TOPIC: Tax Distinguished from other Impositions; Tax v Police Power and Eminent Domain

CASE TITLE FACTS RULING/DOCTRINE

LAND  PARTIES:  NO, POWER OF LTO TO REGISTER AND TO ISSUE
TRANSPORTATION o Petitioner: LTO LICENSE HAS NOT DEVOLVED TO LGUS. ONLY THE
OFFICE [LTO], o Respondent: BUTUAN CITY FRANCHISING AUTHORITY OF LTFRB HAS DEVOLVED
represented by Ass.  1987 Const:"Each LGU shall have the power to TO LGU.
Sec Manuel F. Bruan, create its own sources of revenues and to levy taxes,  The DOTC , through the LTO and the LTFRB, has since been
LTO Regional Office, fees, and charges subject to such guidelines and tasked with implementing laws pertaining to land
Region X limitations as the Congress may provide, consistent transportation.
represented by its with the basic policy of local autonomy. Such taxes,  The LTO is a line agency under the DOTC whose powers,
Regional Director, fees, and charges shall accrue exclusively to the local pursuant to Land Transportation and Traffic Code, deal with
Timoteo A. Garcia; governments the registration of all motor vehicles and the licensing of
and LTO Butuan  Sec 129, Local Gov. Code: Each local government drivers thereof. (registration and licensing functions)
represented by unit shall exercise its power to create its own  The LTFRB is the governing body tasked by EO202 to
Rosita G. Sadiaga, its sources of revenue and to levy taxes, fees, and regulate the operation of public utility or "for hire" vehicles
Registrar vs. CITY charges subject to the provisions herein, consistent and to grant franchises or certificates of public
OF BUTUAN, with the basic policy of local autonomy. Such taxes, convenience. (franchising and regulatory responsibilities)
represented by fees, and charges shall accrue exclusively to the local  Functions of the DOTC were transferred to the LGUs by Sec
Democrito D. Plaza government units 458, Local Gov. Code: “Subject to the guidelines
II, City Mayor  Relying on the above provisions, Sangguniang prescribed by the Department of Transportation and
Panglungsod ("SP") of Butuan passed SP Ordinance Communications, regulate the operation of
Tricycle registration 916-92: payment of franchise fees for the grant of tricycles and grant franchises for the operation thereof
the franchise of tricycles-for-hire, fees for the within the territorial jurisdiction of the city.”
DOCTRINE registration of the vehicle, and fees for the issuance  The devolution of the functions of the DOTC is aimed at
The basic aim of of a permit for the driving thereof curbing accidents in national highways involving tricycles.
police power is public  PETITIONER’S ARGUMENT:  Nevertheless, under Article 458 (a)[3-VI] of the Local
good and welfare.  one of the functions of the national government has Government Code, the power of LGUs to regulate operation
Taxation focuses on been transferred to LGU is the franchising authority and to grant franchises for the operation of tricycles is still
the power of of the LTFRB but not the authority of LTO to register subject to the guidelines prescribed by the DOTC.
government to raise all motor vehicles and to issue to qualified persons  The reliance made by respondents on the broad taxing
revenue in order to of licenses to drive such vehicles. power of LGU’s under Sec 133 of the Local Government
support its existence  Respondent filed a pet w/ RTC for Code, is tangential.
and carry out its "prohibition, mandamus, injunction with a prayer for  Police power and taxation, along with eminent domain, are
legitimate objectives. preliminary restraining order ex-parte" seeking the inherent powers of sovereignty which the State might
declaration of the validity of SP Ordinance 962-93 share with LGU’s by delegation given under a constitutional
VOCABULARY and the prohibition of the registration of tricycles- or a statutory fiat. All these inherent powers are for a
 for-hire and the issuance of licenses for the driving public purpose and legislative in nature but the similarities
To regulate: to subject thereof by the LTO just about end there.
to governing  RTC: for respondent  The basic aim of police power is public good and welfare.
principles or laws 1. the authority to register tricycles  Taxation focuses on the power of government to raise
2. the grant of the corresponding franchise revenue in order to support its existence and carry out its
Franchise: a special 3. the issuance of tricycle drivers' license, and legitimate objectives.
privilege to do certain 4. the collection of fees therefor  Although correlative to each other in many respects, the
things conferred by a. ^had all been vested in LGUs grant of one does not necessarily carry with it the grant of
government on an b. decreed the issuance of a permanent the other. The two powers are, by tradition and
individual or writ of injunction against LTO, jurisprudence, separate and distinct powers.
corporation, and prohibiting LTO from (a) registering  To construe the tax provisions of Section 133(1)
which does not tricycles and (b) issuing licenses to indistinctively would result in the repeal to that extent of
belong to citizens drivers of tricycles. LTO's regulatory power which evidently has not been
generally of common  CA: affirmed RTC. intended.
right  LTO filed petition for review on certiorari w/ SC to  If it were otherwise, the law could have just said so in
annul CA Decision Section 447 and 458 of Book III of the Local Government
To register: to record Code in the same manner that the specific devolution of
ISSUE: LTFRB's power on franchising of tricycles has been
formally or to enter
precisely in a list or provided. Repeal by implication is not favoured
the like  WON the power of LTO to register tricycle as well as  The power over tricycles granted under Section
to issue licenses for the driving thereof, has likewise 458(a)(3)(VI) of the Local Government Code to LGUs is the
devolved to LGU power to regulate and to grant franchises.
Driver's license:
 The exclusionary clause contained in the tax provisions of
issued by the
Section 133(1) of the Local Government Code must not be
government which
held to have had the effect of withdrawing the express
authorizes a person to
power of LTO to cause the registration of all motor vehicles
operate a motor
and the issuance of licenses for the driving thereof.
vehicle
 These functions of the LTO are essentially regulatory in
nature, exercised pursuant to the police power of the State,
whose basic objectives are to achieve road safety by
insuring the road worthiness of these motor vehicles and
the competence of drivers prescribed by R. A. 4136.
 Not insignificant is the rule that a statute must not be
construed in isolation but must be taken in harmony with
the extant body of laws. miso
CA DECISION SET ASIDE.