DADS grant reprieve to non-operating businesses

The Baguio Council, during its regular session last Monday, passed a resolution granting reprieve to businesses in the city that were not issued business and occupancy permits due to their non-compliance with the National Building Code and the zoning ordinance, leading to non-operation of their business operations.

The reprieve shall cover all businesses that were forced to cease operations and whose applications are pending due to their violations.

The resolution principally authored by Vice Mayor Faustino Olowan and unanimously approved by all members of the city council was transmitted to the City Mayor’s Office for the approval of the chief executive.

The resolution stressed that, during the implementation of the reprieve, concerned lessors, lessees, and other independent business operators shall exert diligent efforts to perfect their possession and ownership over the lands and buildings where they conduct their business operations.

Bomogao said giving reprieve to these businesses is a “humanistic approach” to help the affected individuals in the business sector.

“This will give them an opportunity to recoup their lost income while at the same time contributing income to the coffers of the city government by means of fees and taxes. This will also help generate employment in the city,” Bomogao stated.

On several occasions, various residents in the city whose businesses were ordered closed sought the help of the city council. According to the business owners, they could not secure their business permits and permits to operate as they are situated in buildings or areas that are not compliant with the National Building Code and the zoning ordinance.

Bomogao said these affected individuals should not bear the brunt as these violations were a result of circumstances that were beyond their control and supposedly to be addressed by the concerned building owners and the government.

Previously, the city council also passed a resolution requesting the City Planning and Development Office, the City Buildings and Architecture Office (CBAO), and the Permits and Licensing Division of the City Mayor’s Office to implement Administrative Order No. 70, Series of 2009 in the processing of business permits in the city.

Issued by former City Mayor Reinaldo Bautista Jr., Administrative Order No. 70, Series of 2009 is intended for the issuance of business permits in special circumstances in order to “prevent reduction on collections of taxes, fees, and charges or loss of revenues for the city because of the non-issuance of business permits to business applicants who have not obtained building permits or operating on or within buildings/establishments not issued with building permits.”

The said AO stipulates that Baguio City Tax Ordinance 2000-001 does not strictly require a building permit in obtaining a business permit. It is stated further that among the purposes of requiring a building permit is to deter the construction of illegal structures, but not a condition sine qua non for the issuance of a business permit.

Likewise, under the said AO, the necessary approval of the building official when processing a business permit shall be discarded in the following special circumstances:

When the structure was built prior to the effectivity of Presidential Decree No. 1096 or the National Building Code; when there is a pending townsite application; when there is a pending application for a building permit; when the applicant’s business is a sari-sari store or a small-scale business; and when there is a proof of ownership or a right of possession over the place of business.

Furthermore, the AO also states that the purpose of the issuance of the same (AO) is for the efficient collection of taxes, fees or charges so as to “preserve the life of the city government through taxation, without prejudice to the other functions of the City Mayor in carrying out efficient and effective governance of the city.” –Jordan G. Habbiling