Local Taxation Flashcards
(30 cards)
What is the basis for the fiscal autonomy of local government units (LGUs)?
a. Decentralization of local governance
b. Delegation of taxing powers by the national government
c. Exclusive authority to collect income taxes
d. Shared responsibility in maintaining public order
b. Delegation of taxing powers by the national government
Which of the following is a tax exclusively imposed by barangays?
a. Real property tax
b. Business tax
c. Community tax (cedula)
d. Barangay clearance fees
d. Barangay clearance fees
Cities may impose business taxes at a rate:
a. 25% higher than municipalities
b. Equal to municipalities
c. 50% higher than municipalities
d. Double the rate of municipalities
c. 50% higher than municipalities
Real properties that are exempt from taxation include:
a. Properties used exclusively for educational purposes by private entities
b. Real properties owned by the government and used for proprietary functions
c. Real properties owned by the government and used for public purposes
d. Properties used by charitable institutions for investment purposes
c. Real properties owned by the government and used for public purposes
The fair market value of a real property is determined by:
a. The owner’s declaration in their tax return
b. A government-appointed assessor using the schedule of market values
c. The LGU’s discretion based on prior tax assessments
d. The latest real estate market trends
b. A government-appointed assessor using the schedule of market values
The Internal Revenue Allotment (IRA) is distributed among LGUs based on:
a. Population, land area, and equal sharing
b. Income classification and geographic location
c. Tax collections and economic growth
d. Equal sharing regardless of classification
a. Population, land area, and equal sharing
What percentage of the proceeds from the community tax is retained by the barangay?
a. 30%
b. 40%
c. 50%
d. 60%
c. 50%
Which of the following is NOT subject to a special levy under the Local Government Code?
a. Real properties benefited by public infrastructure projects
b. Agricultural lands within urban development areas
c. Commercial properties along improved roads
d. Government-owned properties used for public purposes
d. Government-owned properties used for public purposes
When real property taxes become delinquent, the LGU may:
a. Automatically sell the property without prior notice
b. Auction the property after proper notice of delinquency
c. Seize and appropriate the property without compensation
d. Waive the unpaid taxes through administrative action
b. Auction the property after proper notice of delinquency
A taxpayer who disagrees with a real property tax assessment must file an appeal with:
a. The Municipal Treasurer
b. The Bureau of Internal Revenue
c. The Local Board of Assessment Appeals
d. The Court of Tax Appeals
c. The Local Board of Assessment Appeals
The maximum real property tax rate imposed by provinces is:
a. 2% of the assessed value
b. 1.5% of the assessed value
c. 1% of the assessed value
d. 0.5% of the assessed value
c. 1% of the assessed value
What is the share of barangays in real property tax collections?
a. 10%
b. 15%
c. 20%
d. 25%
d. 25%
Special education funds (SEF) from real property tax collections are earmarked for:
a. Public education purposes
b. Health programs
c. Infrastructure projects
d. Environmental programs
a. Public education purposes
A special levy on real property may be imposed for:
a. Road maintenance costs
b. Public works or improvement projects that benefit the property
c. Health care services
d. Community events and programs
b. Public works or improvement projects that benefit the property
What is the maximum rate of additional ad valorem tax for the Special Education Fund (SEF)?
a. 0.5%
b. 0.75%
c. 1%
d. 1.5%
c. 1%
Who has the authority to impose a tax on sand, gravel, and other quarry resources?
a. Provincial governments
b. City governments
c. Barangay governments
d. Municipal governments
a. Provincial governments
Community tax is levied on:
a. Corporations only
b. Individuals and corporations residing or operating in the LGU
c. Local and foreign businesses operating in the LGU
d. Only residents of the LGU
b. Individuals and corporations residing or operating in the LGU
What is the deadline for payment of real property tax without penalty?
a. January 31 of the current year
b. February 28 of the current year
c. March 15 of the current year
d. March 31 of the current year
d. March 31 of the current year
What is the basic tax rate for amusement tax on admission fees in provinces?
a. 5%
b. 10%
c. 12%
d. 15%
b. 10%
Which LGU is authorized to impose a franchise tax?
a. Barangays only
b. Municipalities and barangays
c. Provinces and cities
d. Cities only
c. Provinces and cities
The Local Government Code mandates that local taxes must be:
a. Uniform and equitable
b. Imposed on a progressive basis
c. Limited to specific national policies
d. Determined by barangays
a. Uniform and equitable
Who has the authority to grant tax exemptions under the Local Government Code?
a. Municipal Mayor
b. Local Chief Executive
c. Bureau of Internal Revenue
d. Sangguniang Panlalawigan or Sangguniang Panlungsod
d. Sangguniang Panlalawigan or Sangguniang Panlungsod
When are tax ordinances or revenue measures effective?
a. Immediately upon approval
b. After review by the Bureau of Local Government Finance
c. After publication and posting in a conspicuous place
d. After approval by the President
c. After publication and posting in a conspicuous place
Which LGU may impose a professional tax on individuals practicing a profession?
a. Barangays and municipalities
b. Provinces and cities
c. Cities only
d. Provinces only
b. Provinces and cities
