Flashcards Studio

City of Luntangan passes Ordinance No. 202X-77 imposing a graduated gross receipts tax on businesses within the city: 0.6% for businesses with 1-20 employees, 1.8% for 21-100 employees, and 3.0% for more than 100 employees. The classification is based solely on the number of employees and is not tied to actual local service consumption or traffic generation. A large manufacturer with 150 employees challenges the ordinance, arguing it violates equal protection and due process. (a) Identify the central constitutional doctrine tested. (b) Distinguish the controlling rule on taxation classifications and due process applicable to this scenario. (c) Apply the doctrine: Does the ordinance violate equal protection and due process? Why or why not?