Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Ip x
S REC B\
ome: APR ES 2017 WH

SEVENTEENTH CONGRESS
1* Regular Session

House Bill No. 54 89

Introduced by Rep. CESAR V. SARMIENTO

EXPLANATORY NOTE

There are at least 2.5 million registered cars in Metro Manila, and more in
other metropolitan areas such as Metro Cebu and Davao.

This bill recognizes the need to provide parking for such cars which cause
unnecessary congestion if parked on the street. One such way to achieve this is to
encourage owners to construct or convert their buildings for the purpose of parking
This is done through the granting of certain tax exemptions.

The ultimate goal is to achieve intermodal transportation. Car owners should
be able to park near trains, airports, and seaports and then take such other means of
transportation to go to other areas.

In view of the foregoing, the passage of this bill is earnestly sought.

aor, G

CESAR V. SARMIENTO.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
1* Regular Session

5489

House Bill No.

Introduced by Rep. CESAR V. SARMIENTO

PARKING BUILDING TAX EXEMPTION ACT OF 2017

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section 1. Ti
Exemption Act of 2017.”

— This Act shall be known as the “Parking Building Tax

Section 2. Declaration of Policy. — It is the policy of the State to provide a
sustainable, organized, predictable, accessible and safe transportation system
Towards this end, adequate parking buildings must be provided as to reduce the
number of cars parked on the road and encourage such users to take advantage of
public transportation by allowing for the parking of cars before riding the commute

Section 3. Definition of terms — The following terms are defined as:

(a) Construction — All on-site work done in the site preparation, excavation,
foundation, assembly of all the components and installation of utilities,
machineries, and equipment of buildings/ structures.

(b) Conversion — A change in the use or occupancy of buildings/structures or any
portion/s thereof, which has different requirements.

(c) Exclusive Use — Predominant or primary use as opposed to incidental use.

(d) Idle lands - Non-agricultural lands in urban and urbanized areas on which no
improvements, as herein defined, have been made by the owner, as certified
by the city, municipal or provincial assessor.

(e) Vehicle - refers to any self-propelled, four (4) wheeled road vehicle designed
to carry passengers including, but not limited to, sedans, coupes, station
wagons, convertibles, pick-ups, vans, sports utility vehicles (SUVs) and Asian
Utility Vehicles (AUVs) but excluding motorcycles, delivery trucks, dump
trucks, buses, road rollers, trolley cars, street sweepers, sprinklers, lawn
mowers and heavy equipment such as, but not limited to, bulldozers,
payloaders, graders, forklifts, amphibian trucks, cranes, and vehicles which
Tun only on rails or tracks, and tractors, trailers and traction engines of all


kinds used exclusively for agricultural purposes. Trailers having any number
of wheels, when propelled or intended by attachment to a motor vehicle, shall
be classified as separate motor vehicle with no power rating;

(f) Public — Use that is not limited to privileged individuals but is open to the
indefinite community whether for a fee or not.

(g) Renovation — Any physical change made on buildings/structures to increase
the value/quality and/or to improve the aesthetic.

Section 4. Coverage - This law shall be applicable to all the cities and
municipalities comprising Metro Manila, Cebu, and Davao.

The only buildings, structures, and spaces that can apply for said tax
exemption are:

a. Idle lands

b. Buildings that are used for an exclusive purpose other than parking

The tax exemption is not applicable to buildings that are required to provide
parking as required by the National Building Code and other applicable national
laws.

Section 5. Tax Exemption — The following buildings, structures, and other
spaces that meet the following requisites shall be exempt from taxation:

1) It must actually be used and occupied to carry out parking operations;

2) At least 80% of total land area is exclusively used for parking vehicles;

3) Parking spaces are available to the general public; and

4) Constructed or converted to a new parking building during the effectivity of
this Act

This tax exemption shall apply to those taxes imposed on the parking building
property. The owner of the parking building shall only be exempted from taxes
involving said parking building and shall still be liable for taxes due to non-parking
properties or operations.

Such tax exemption shall include but shall not be limited to all real property,
income, and other business taxes so long as such taxes involve and are derived
from the parking building, structure, or space

Such tax exemption shall be automatically terminated if:

(1) The building ceases to be exclusively used for parking operations.
(2) The building is converted to a non-parking use.

The tax exemption shall last for a period of three (3) years beginning from the
date when construction of the parking building begins, which period is extendible for
another three (3) years upon determination by the Department of Transportation and
Department of Finance that the need to alleviate land traffic congestion in the
covered metropolitan areas through this tax exemption still exists.


Section 6. Registration — All persons owning such parking building,
structure, and space may apply for the tax exemption. The Department of Interior
and Local Government (DILG) shall conduct an investigation and certification upon
request by the owner that such building, structure, and space complies with the tax
exemption requirements. This certification from the DILG shall be completed and
released within 5 days upon request by the owner. Such certification shall be
submitted to the Bureau of Internal Revenue (BIR) upon application for the tax
exemption

Section 7. Government Support — The DILG shall issue guidelines on
promoting the conversion of idle lands towards parking buildings within ninety (90)
days after the effectivity of this Act.

The Business Process and Licensing Office (BPLO) and the Engineering Unit
of each local government unit shall provide express lanes for businesses whose
primary purpose is parking. Upon compliance with the stated requirements, these
offices shall release the corresponding permits within 5 days of request by the
parking building applicant

Section 8. Duty of the Parking Building Owner and Operator — The
parking building owner and the parking operator shall be responsible for the security
of the parking premises and the vehicles therein. All contractual provisions absolving
the parking building owner and operator from liability for failure to provide adequate
security shall be null and void

Section 9. Duty of the Government — The Department of Transportation
(DOTr) shall issue guidelines to ensure that parking building owners do not set
exorbitant parking fees within thirty (30) days from promulgation of this Act.

The Department of Interior and Local Government, in consultation with the
Bureau of Internal Revenue, Department of Finance and appropriate government
agencies, within one hundred twenty (120) days from the effectivity of this Act, shall
promulgate the rules and regulations necessary to effectively implement the
provisions of this Act.

Section 10. Separability. - In the event that any provision of this Act is
declared unconstitutional, invalid, or illegal, the constitutionality, validity, or legality of
the remaining provisions of this Act shall not be affected thereby.

Section 11. Repealing — All laws, decrees, executive orders, implementing
rules and regulations, issuances, or any part thereof inconsistent with the provisions
of this act are deemed replied and/or modified accordingly.

Section 12. Effectivity — This act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a national newspaper of general circulation
and shall be effective for 3 years.

Approved,