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Philippine Bar review · Question

Practice question: Taxing Powers of Local Government Units (LGUs)

Multiple Choice Medium

Practice question

An LGU invokes Section 154 alone to set rates for a utility wholly privately owned and not operated or maintained by it. No other rate-setting grant is established. Which is best?
  1. Section 154 automatically gives every LGU power over every private utility nationwide.
  2. Private ownership necessarily eliminates all regulation under every law.
  3. The LGU may create any power merely by calling it a service fee.
  4. The utility becomes LGU-owned whenever its rates are discussed.
  5. The stated facts do not establish Section 154's particular ownership-and-operation basis.

Legal references

  • RA7160, Local Government Code, Sections130,151 and153-155: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html

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