FERRER VS. MAYOR BAUTISTA OF QUEZON CITY (QC) G.R. No.

210551

FACTS:

The LGU of QC enacted two ordinances. One imposes socialized housing tax (SHT) based on the assessed
value of realty, to be paid by landowners. The other imposes a garbage fee (GF) to be paid by landowners
based on the floor area or land area of their property.

Ferrer, a landowner in QC, want to question the validity of these two (2) ordinances.

ISSUE & RULING:

1. Is the SHT tantamount to penalty on realty owners?

No, it does not. Property ownership bears a social function. Also, the SHT will improve the status of property
owners by increasing investment, raising land value, etc., after the relocation of informal settlers. The
foundation is police power.

2. Does the SHT violate equal protection, considering that those who occupy land illegally or informally do not
pay while legitimate owners of land are made to pay?

No, equal protection admits of exception. As long as there is real and substantial distinction, which is germane
to the purpose of the law, it does not violate. The difference between informal settlers and property owners is
very clear and unmistakable. Again, the foundation is police power, that power which allows the State to
regulate life, liberty and property in order to promote the welfare of the people.

3. Does the LGC allow the imposition of SHT, considering there is already property tax?

Yes, the LGC allows this. The LGC, under the general welfare clause, provides local governments the power to
enact measure that will benefit the people. Moreover, SHT has another basis in law: RA 7279 or the Urban
Development and Housing Act. Again, the foundation is police power.

4. Is GF a tax or a fee?

It is a fee, not a tax. The main purpose is to regulate, not to raise revenue. The power of LGUs to collect fees in
order to manage wastes is recognized and conferred by RA 9003. How can LGUs do something without the
means to do it?

5. Is GF valid, considering that it imposes a fee based on land or floor area?

No, GF in not valid. Substantive due process requires reasonable means and reasonable purpose. Although the
purpose of the GF is reasonable and admirable, the means employed is unreasonable and oppressive. Rather
than basis on actual waste output or estimate garbage use, the ordinance uses as a yardstick the people’s land
or floor area which has nothing to do with how much waste they produce.