Legislative History
| House Bill/Resolution NO. House Bill No. 2225, 12th Congress of the Republic |
| FULL TITLE : AN ACT EXEMPTING RURAL ELECTRIC COOPERATIVES FROM THE COVERAGE OF THE REAL PROPERTY TAX, AMENDING FOR THE PURPOSE SECTION TWO HUNDRED AND THIRTY-FOUR OF REPUBLIC ACT NUMBERED SEVENTY-ONE HUNDRED AND SIXTY, OTHERWISE KNOWN AS THE `LOCAL GOVERNMENT CODE OF 1991,' AND FOR OTHER PURPOSES |
| ABSTRACT : Rationale: Under PD No. 269, Rural Electric Coppratives (RECs) are exempted from paying all forms of taxes. However, with the advent of the R.A. No.7160 and the Cooperative Code, the various Local Government Units (LGUs) have strated imposing localtaxes, especially real property taxes, on the RECs who have not registered with the Cooperative Development Authority (CDA). The assessment almost often runs into the millions of pesos annually. Hence, the RECs have no choice but to pass on the sameto their consumers. The practice therefore, is eventually reflected on the power rates the consumers pay every month. Hence the consumers are obliged to pay a great deal more.> The bill seeks to amend the Local Government Code by exempting the RECs ffrom the coverage of real property taxes. True, the LGUs will be deprived of income, but this deprivation will in the long term spare the consumers from paying higher power rates and redound to the benefit of everyone concerned. |
| PRINCIPAL AUTHOR/S : LOCSIN, MA. VICTORIA L. |
| DATE FILED : 2001-08-08 |
| SIGNIFICANCE: NATIONAL |
| ADMINISTRATION BILL? No |
| URGENT BILL? No |
| ACTIONS TAKEN BY THE COMMITTEE ON RULES |
| REFERRAL TO THE COMMITTEE ON LOCAL GOVERNMENT ON 2001-08-14 |
| SECONDARILY REFERRED TO THE COMMITTEE(S) ON WAYS AND MEANS |
Abstract
Rationale: Under PD No. 269, Rural Electric Coppratives (RECs) are exempted from paying all forms of taxes. However, with the advent of the R.A. No.7160 and the Cooperative Code, the various Local Government Units (LGUs) have strated imposing localtaxes, especially real property taxes, on the RECs who have not registered with the Cooperative Development Authority (CDA). The assessment almost often runs into the millions of pesos annually. Hence, the RECs have no choice but to pass on the sameto their consumers. The practice therefore, is eventually reflected on the power rates the consumers pay every month. Hence the consumers are obliged to pay a great deal more.> The bill seeks to amend the Local Government Code by exempting the RECs ffrom the coverage of real property taxes. True, the LGUs will be deprived of income, but this deprivation will in the long term spare the consumers from paying higher power rates and redound to the benefit of everyone concerned.
Disclaimer
Note: Legislative history and other information accessed from Congress Legis. Information as of April 20, 2022.