On 22 January 2004, the City Treasurer issued a Notice of Assessment on respondent for payment of business tax, license fee and other charges for the period 1993 to 2004. The latter seasonably protested but was denied by the City Treasurer for lack of merit. On 05 April 2004, the City Treasurer levied on respondent’s real properties and a notice was published and posted announcing a public auction of the said properties. The electric corporation filed an Urgent Motion for Issuance of Temporary Restraining Order and/or Write of Preliminary Injunction to enjoin petitioner and its City Treasurer from levying, annotating the levy, seizing, confiscating, garnishing, selling and disposing at public auction its properties.
Whether or not local government units may be enjoined from collecting taxes.
YES. Unlike the National Internal Revenue Code, the Local Government Code does not contain any specific provision prohibiting courts from enjoining the collection of taxes. However, the procedural rules and requirements under Rule 58 of the Rules of Court must still be complied with.