Practice question
A municipal ordinance imposes a documentary stamp tax as such on the execution of private contracts. The municipality admits the imposition falls within the Section 133(b) prohibition and identifies no statutory exception. It invokes Section 186 as an unrestricted power to tax any new subject. Which answer is correct?
- The residual power does not override the admitted common limitation; a new label or revenue need cannot supply the missing authority
- Every residual-tax claim automatically repeals Section 133
- All taxes are valid whenever the sanggunian votes unanimously
- The mayor may declare Section 133 inapplicable by speech
- The prohibition applies only if taxpayers voluntarily consent
Legal references
- 1987 Constitution, Article X, Section 5, local revenue and taxation powers: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353
- Republic Act No. 7160, Local Government Code, Sections 129, 130, 132, 133, 186 and 187: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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