Flashcards Studio

An ordinance enacted by the City of Portalia imposes a "Public Infrastructure Levy" on every person or business doing business within the city. The levy is fixed at 0.38% of gross annual receipts, due once a year, with penalties for late payment. The funds are earmarked for the city’s general road improvement program and other public works, with no specific service identified for the payer. A local business operator challenges the levy, claiming it is not a tax under the Philippine concept of taxation; the city treasurer contends that it is a valid tax. (a)Identify the primary doctrine governing whether such levy constitutes a tax. (b)Distinguish the controlling rule that determines whether a levy is a tax or another form of exaction. (c)Apply the doctrine to the facts and determine whether the levy qualifies as a tax; if not, explain the appropriate classification and the remedy.