Case Study:

Case Study 2.1

GOING LOCO ON LOCAL

The Municipality of Santo Cristo, claiming that it can impose taxes under the Local

Government Code, imposed a tax on common carriers in addition to the 3% common carrier's tax imposed in the National Internal Revenue Code. The common carriers in the municipality objected on this ordinance stating that the power of taxation cannot be delegated and that this constitutes double taxation.

Is their contention tenable?