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ORDINANCE NO. 207
Series
of 1998
AN
ORDINANCE APPROVING THE BACOLOD CITY INVESTMENT INCENTIVES CODE.
Be it ordained by the
Sangguniang Panlungsod of Bacolod City in session assemble, that:
Chapter I
Title.
Declaration of Policy and Purpose
Section 1. Short
Title- This Act shall be known as the Bacolod Investment Code.
Section 2. Declaration
of Policy- It is hereby declared a policy of the City Government to
attract investors, both local and
foreign, to invest in Bacolod City by
providing investors the incentives as means for the development, income
generation and employment of the people of Bacolod.
Section 3. Purpose,
Intent and Objective- It
is the purpose, intent and objective of this Act:
1.To lay down the legal
framework and mechanism of integrating the investment incentives' law of
the National
Government to the local development initiative.
2.To
spread the development of Bacolod City from highly developed to
undeveloped and under develop areas.
3.To promote the flow of investors both foreign and local into Bacolod
City which would generate employment
opportunities and provide backward and forward linkages among industries
in City Province and the Country.
4.To transform selected areas of Bacolod City into highly developed
Agro-Industrial, Industrial, Commercial,
Tourist,
Investment and Financial Center of the Province and the
Region.
5.To promote balance development in the City where land use shall be
rational as to promote the general welfare of
the people of Bacolod.
Chapter II
Definition of Terms
Section 4.Definition of Terms- For
purposes of this Act, the following shall apply to the following terms:
BOI
refers to Board of Investment under Executive Order No. 226 or
the Omnibus Investment Code.
CAPITALIZATION
refers to total project cost.
CENTER
refers to One-Stop-Shop Center.
COUNCIL refers to Local Investment Council.
EXISTING FIRMS
refers to those firms whose places of operation are presently
located in Bacolod City.
FIRMS UNDER EXPANSION
refers to existing firms that are expanding their operations in
the City of Bacolod.
FIRMS UNDER DIVERSIFICATION
refers to existing firms that are investing in other products or
services.
FOREIGN INVESTMENT
shall mean equity investments owned by a non-Philippine national.
LOCAL INVESTMENT CODE
refers to the Bacolod City Investment Incentive Code created
under this Act.
INVESTMENT
expenditures
for future benefits.
NATIONAL LAWS refers to
Omnibus Investment Code of 1987, RA 7844, RA 7716 and RA 7718.
OIC
refers to Omnibus
Investment Code of 1987.
PREFERRED AREAS OF
INVESTMENT" refers
to the investments identified by the council in consultation with other
sectors to be given preference.
PROJECT STUDY refers to
the profile of the project which presents the marketing, technical
,financial and socio-economic aspects of the project.
RA 7718refers to
Build-Operate Transfer Law or BOT Law which was enacted on May 5, 1994
RA 7916 refers to
Special Economic Zone of 1995.
RA 7844 refers to the
Export Development Act of 1991.
REGISTERED ENTERPRISE
shall mean any individual, partnership, cooperative, corporation or
other entity incorporated and /or organized and existing under
Philippine Laws; and registered with the Board of Investment (BOI),
OIC of 1987. RA 7844. RA 7916 and RA 7718.
Chapter III
The Local Investment Council
Section 5.
Local
Investment Council There shall be created a Local Investment
Council (LIC ) for the purpose of overseeing the implementation of this
Local Investment Code.
Section 6. Composition
of the Local Investment Council-
The Council shall be composed of the following:
a) City Mayor- Chairman
and Presiding Officer
b) City Treasurer
c) City Administrator
d) City Assessor
e) City Planning and Development Officer
f) Provincial Director- Department of Trade and Industry.
g)
Four (4) representatives
from the private sector to be appointed by the Mayor with a term of two
(2) years.
h)
Chairman,
SP Committee on Ways and Means.
Section 7. Meeting
of the Council- The
Council shall meet at least once a month of the Chairman may convene the
Council
anytime whenever he deems it necessary.
Section 8. Powers
and Duties of the Local Investment Council-
The Council shall be responsible for the regulation and
promotion of investments in the City. The majority members
of the LIC shall constitute a quorum for it
to exercise its
powers and perform its duties which shall be as follows:
1. Prepare the list of preferred areas of investment in consultation
with the public and private sector.
2. Promulgate the implementing rules and regulations of this Act as may
be necessary to implement the provisions of this Act subject to the
approval of Sangguniang Panlungsod.
3. Grant availment of incentives to qualified investors.
4. Process and approve application for incentive availment with the
Council.
5. Decide controversies concerning the implementation of this Act.
6. Check and verify the compliance by registered enterprises.
7. Cancel or suspend the enjoyment of incentive benefits by the act
and/or require refund of incentives enjoyed by such investor for
violating the provisions of this Act.
8. Exercise all power necessary or incidental to attain the purpose of
this Code.
Section
9. Powers of the Chairman
1.
To
preside over the meetings of the Council.
2.
To act as liaison between investors seeking collaboration in
particular area of investment
3. Generally,
to exercise such other powers and perform such other
duties
as may be directed by the LIC from time to time.
Chapter IV
Areas of Investment Eligible for Investors
Section
10. Investors Enjoying Incentives under the National Laws.
Investors enjoying incentives under OIC of 1987, RA
7844,
RA 7916, and RA 7718 .
Section 11.
Investors Under Preferred Areas of Investment.
Investors engaged in business identified by the Council to be
Preferred Areas of Investment are eligible for incentives under this
code:
Section 12. Investors Who Are Investing Under Site Development Priority Plan-
Promulgated by the Council pursuant to
the Zoning Ordinance of the City
are eligible for incentives under this code.
Section 13. Investors Under Expansion and Diversification.
Investors who are expanding their existing business and/or
diversifying to the preferred areas of investment identified by the
Council are eligible for incentives.
Section 14. Investors Under Non-Preferred Areas of Investment. Investors
who are not covered by Sections 10, 11, 12 and
13 of this code can still
avail of incentives provided that:
a) That the investment shall have a capitalization ranging from P25
M to over P100 M and employ at least 10 to over 100 persons.
Chapter V
Incentives
Section
15. Incentives Given to
Investors Enjoying Incentives Under the National Laws.
a)
Investors
enjoying incentives under RA 7844, RA 7916, and RA 7718 shall be
exempted from payment of Business Tax for a
period of five (5) years
from the date of issuance of Business permit. Investors enjoying
incentives under OIC of 1987 shall be
exempted from payment of Business
Taxes within a period of four (4) years for non-pioneer
and sic (6) years for pioneer industries from the date of issuance of business permits.
b)
Investors enjoying incentives under RA 7874,
RA 7916, and RA 7718 shall be exempted from payment of Real
Property Tax
on improvement for a period of five (5) years from
the date of issuance of Business permit.
Investors enjoying incentives under OIC of 1987 shall
be exempted from payment of Real Property Taxes within a period of
four (4) years for non-pioneer and (6) years for pioneer
industries from the date of
issuance of business permits.
Section 16.Incentives
Given to New Investors Under Preferred Areas of Investment.
Investors enjoying incentives under
this provision shall be exempted from:
a) Payment of Business Tax for a period of five (5) years from date of
issuance of Business permit.
b) Payment of Real property Tax on improvement for a period of five (5)
years from the date of issuance of Business permit.
Section 17.Incentives
Given to Investors Under the Site Development Plan. Investors
enjoying incentives under this
provision shall be exempted from:
a) Payment
of Business Tax for a period of five (5) years from the date of issuance
of Business permit.
b)
Payment
of Real Property Tax on improvement for a period of five (5) years from
the date of issuance of Business permit.
Section 18. Incentives
Given to Investors Under Expansion and Diversification.
Investors enjoying incentives
under this
provision shall be
exempted from:
a)
Payment of Business Tax for a period of five (5) years from the
date of issuance of Business permit.
b)
Payment of Real Property Tax on improvement for a period of five
(5) years from the date of issuance of Business permit.
Section 19. Incentives Given
to Investors Under Non-Preferred Areas of Investments.
Investors under non-preferred areas of investment shall be exempt from
payment of Business and Real Property Taxes under the following
conditions:
| CAPITALIZATION |
EMPLOYMENT
GENERATED |
NO.
OF YEARS OF EXEMPTION |
| P
25 M- 50 M |
at
least 10 workers |
2 |
| P
51 M- 75 M |
at
least 20 workers |
3 |
| P
76 M- 100 M |
at
least 50 workers |
4 |
| P101M-
and above |
at
least 100 workers |
5 |
Provided
that the investment is pursuant to the purpose,
Intent and objective enunciated in Section 3 of this Code.
Chapter VI
Other Incentives
Section 20. Tax
Credit to Persons Donating Property to the City. Persons donating land or property or money to the City
for the priority projects of the City shall be entitled to tax credit
which can be used by the taxpayer to pay his tax
obligations with the City Government.
Section 21. Basis of Tax
Credit. The
amount of tax credit shall correspond to 70% of the fair market value of the
property as
determined by the offices of the City Assessor,
City Engineer and City Treasurer or 70% of the money donated.
Chapter VII
Requirements for Availment of Incentives
Section 22. Requirements
for Firms Enjoying Incentives Under National Laws.
For firms to enjoy the incentives under this provision, they must comply with the following:
a)
Submit the Certificate of Registration issued by the concerned
national agencies:
b)
The investors place of business or operation must be located
in Bacolod City:
c) That
the investment has no delinquency with the national agencies:
d)
Shall submit incorporation papers.
Section 23. Requirements
for Firms Under Preferred Areas of Investment.
For firms to enjoy the incentives under this
provision, they must comply with the following:
1.
The preferred area of
investment shall be included in the list approved by the Council.
2.The investors shall submit a copy of the project study.
3.The investors shall have no outstanding obligation with the City
government.
4.Shall submit incorporation papers.
Section 24. Requirements
for Firms Under the Site Development Plan.
1.
The site shall be included as growth point area under the new
zoning ordinance.
2.
The investor shall submit a copy of the project study to be
approved by the Council.
3.
The investor shall have no outstanding obligation with the City
government.
4. Shall submit incorporation papers.
Section 25. Requirements
for Firms Under Expansion and Diversification.
1.The investors shall be investing in preferred area of investment
approved by Council.
2.The investor shall submit a
copy of the project study to be approved by the Council.
3.The
investor has no outstanding obligation with the city.
4.Shall submit incorporation papers.
Section 26. Requirements
for Firms Under Non-Preferred Areas of Investment.
1.
Investors shall submit a copy of the project study
2. Investors shall have no existing obligation with the City.
3. Investors must comply with the provisions of Section 19 of this code.
4. Shall submit incorporation papers.
Chapter VIII
One-Stop-Shop
Section 27. On-Stop-Shop
Center.
The LIC shall establish one-stop-shop center for the purpose of
facilitating the Registration
and Issuance of Business permit to the enterprises covered under
this Act.
Chapter IX
Appropriations
Section 28. Appropriations.
The city shall appropriate the funding requirements which is
necessary for the implementation of
the provisions of this Act based on the budget presented by the Council.
Chapter X
Transitory Provision
Section 29. Transitory
Provision. Business establishments already enjoying the
benefits under the existing National Laws
prior to the enactment of this Code may apply with the Local Investment
Council for incentives availment. Provided
that they are still within five (5) years from the date of registration
and said firms are only qualified to avail of the
incentives for the remaining years of
their eligibility. Furthermore,
establishments that are included under Chapter
V. Section 19 of the Code shall still enjoy the full incentive
starting from the time of approval of this code provided
that they have started operation in 1996 which was the time of the filing
of this code.
Chapter XI
Final Provisions
Section 30. Penal
Clause. Any
violation of the provisions of this Act, Ordinances, Rules and
Regulations, shall be ground for
the cancellation of the registration of the business, withdrawal of all
incentives granted under this Code and refund of
the fiscal incentives
granted.
Section 31. Separability
Clause. The
provisions of this Act are hereby declared separable. The invalidity of one or more
provisions shall not affect the validity of the other provisions
thereof.
Section 32. Repealing
Clause.
All ordinances, Executive Orders and Rules and Regulations inconsistent
with the provisions of
this Act are hereby repealed.
Section 33. Effectivity. This Code shall take effect upon its approval.
CARRIED BY THE VOTE OF:
Affirmative:
Councilors:
Renecito S. Novero, Lorendo K. Dilag, Rolando V. Villamor, Juanito S.
Amihan, Jr., Napoleon A. Cordova, Constancio G. Legaspi, Archie S
Baribar, Celia R. Flor, Joaquin L. Torre, Juan Ramon R. Guanzon, Ricardo
L. Tan, Pepito T. Malapitan.
Negative: N o n e
MAIN PROPONENTS: Councilor Lorendo K. Dilag
Councilor Juan Ramon R. Guanzon
Absent: N o n e.
Official Travel: Councilor Christine Angelie V. Matus
Passed: January 28, 1998 (Special Session)
Comments: P a
s s e d
Councilor Luzviminda S. Valdez was out of the Session Hall when this
ordinance was passed.
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(Sgd.)
WILMAR L. DRILON
Vice Mayor
Presiding Officer
ATTESTED:
ATTY. NILO T. ALEJANDRINO
Secretary to the Sanggunian
BY:
(Sgd.) HELEN P. LEGASPI
Stenographic Reporter IV
Acting Board Secretary
APPROVED: __February 11,_1998 (Sgd.)
EVELIO R. LEONARDIA
City Mayor
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