Councilor Van Dicang has proposed an ordinance that would exempt all legitimate cooperatives registered and operating within the city from paying local taxes, fees, and other government-imposed charges.
This measure aims to align local policies with national cooperative laws, remove administrative burdens, and strengthen support for cooperatives as drives of inclusive economic growth and community development.
The proposed ordinance covers all legitimate cooperatives duly registered with the Cooperative Development Authority (CDA) and operating within the territorial jurisdiction of Baguio City. To qualify for the exemption, cooperatives must possess a valid Certificate of Registration and Certificate of Good Standing issued by the CDA. The measure seeks to ensure that only compliant and lawfully operating cooperatives benefit from the fiscal privileges granted under national and local law.
Under the ordinance, exempted cooperatives will no longer be required to pay local business taxes, mayor’s permit fees, community tax certificates, franchise taxes, real property taxes on properties used for cooperative operations, regulatory and inspection fees, and other similar local impositions. However, the exemption does not extend to payments for specific services actually rendered by the City Government such as utilities and waste collection, nor does it cover fines and penalties arising from violations of city ordinances unrelated to taxation.
To operationalize the exemption, cooperatives must annually submit to the City Treasurer’s Office and the Baguio City Cooperative and Development Council (BCCDC) certified copies of their CDA registration, Certificate of Compliance and Good Standing, and latest audited financial statements, if applicable. The BCCDC will verify the authenticity of the documents and maintain an official registry of qualified cooperatives, endorsing them to the City Treasurer’s Office for proper recording and implementation of the exemption.
The ordinance also establishes monitoring and accountability mechanisms. The BCCDC, in coordination with the CDA and the City Treasurer’s Office, will conduct periodic reviews to ensure continued compliance with cooperative principles and eligibility requirements. Cooperatives that fail to submit the required documents within the prescribed period will be temporarily ineligible for the exemption and may be required to pay local taxes and fees incurred during the period of non-compliance.
Any city official or employee who knowingly imposes or collects prohibited local taxes or fees from qualified cooperatives may face administrative sanctions under Civil Service rules and be required to refund improperly collected amounts.
Disputes regarding imposition or collection of fees will be resolved administratively within a specified period, with persistent violations subject to further legal action.
The proposed ordinance has been approved on first reading by the Baguio City Council and referred to the Committee on Appropriations on Finance Cluster B for review.**Jordan G. Habbiling
