G.R. No. 19861 ; April 4, 1923
ROSARIO J. DE LIÑAN and JUAN PIMENTEL, plaintiffs-appellants, vs. THE MUNICIPAL COUNCIL and THE MUNICIPAL TREASURER OF DAET, CAMARINES NORTE, defendants-appellees.

FACTS

The Municipal Council of Daet, Camarines Norte, enacted Ordinance No. 94, which imposed a tax on cinematograph theaters and required owners to secure a permit and pay specific fees for exhibitions. The plaintiffs, owners of cinematograph theaters in Daet, paid the taxes under protest. They filed an action alleging the ordinance was illegal and that the municipal council lacked the legal authority to impose such taxes, seeking a refund of the amounts paid.

ISSUE

Whether the Municipal Council of Daet was authorized under the Administrative Code to impose a tax on cinematograph theaters through Ordinance No. 94.

RULING

Yes. The Supreme Court affirmed the trial court’s judgment dismissing the complaint. The Court held that under Section 2307 of the Administrative Code, municipal councils are authorized to tax persons engaged in business or exercising privileges, including those operating “theaters.” The term “theaters” in the law should be construed to include cinematographs, as both involve public exhibitions for profit where an admission fee is charged. The tax imposed by the ordinance was on the business of giving cinematographic exhibitions, not on the building itself, which falls within the municipal taxing authority. Therefore, Ordinance No. 94 was validly enacted.