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What is Butuan Sawmill Taxation Dispute about?

The Butuan Sawmill company was granted a legislative franchise to operate an electric system in Butuan and Cabadbaran under RA 399. However, the City of Butuan issued tax ordinances imposing a 2% tax on the gross sales of any business in the city. Butuan Sawmill questioned the validity of this tax, arguing it impaired their contract and deprived them of property rights. The court held that the city did not have the power to tax Butuan Sawmill

Author

blessaraynes

Language

EN