Flashcards Studio

An ordinance enacted by the City of Aurora imposes a "City Climate Revenue Levy" on every person or business operating within the city. The levy is fixed at 0.6% of gross annual sales, due once a year, with penalties for late payment. The funds are earmarked for the city's general environmental program and related projects, with no specific benefit identified for the payer. A local bookstore operator challenges the levy, claiming it is not a tax under the Philippine concept of taxation; the city treasurer contends that it is a valid tax. (a) Identify the primary doctrine governing whether such levy constitutes a tax. (b) Distinguish the controlling rule that determines whether a levy is a tax or another form of exaction. (c) Apply the doctrine to the facts and determine whether the levy qualifies as a tax; if not, explain the appropriate classification and the remedy.