Cooperatives headquartered in Bislig City now have a clear local rule exempting them from the taxes, fees and charges the city collects from regular businesses. Under the new guidelines, a qualified cooperative pays the city only a P1,000 business permit fee and a P500 community tax certificate.

City Ordinance No. 2026-15, known as the "Cooperatives Tax Exemption Ordinance," was enacted by the Sangguniang Panlungsod on June 30, 2026, during its 50th regular session. Mayor Florencio C. Garay approved it on July 14, 2026. It took effect immediately. It was authored by Councilor Winston Y. Sia.

Which cooperatives qualify

The exemption covers cooperatives that meet all of these conditions:

  • Registered with the Cooperative Development Authority (CDA)
  • Principal office in Bislig City, as shown in their CDA documents
  • Accumulated reserves and undivided net savings of not more than P10 million
  • Transact business with both members and non-members

Qualified cooperatives are exempt from the applicable taxes, fees and charges the city imposes on regular business enterprises.

What you still have to get and pay

The exemption is not a free pass on permits. A cooperative must still obtain:

  • A barangay business clearance from the barangay where its principal office is located
  • A Fire Inspection Clearance from the Bureau of Fire Protection
  • City clearances: zoning, CENRO, annual inspection, sanitary and health

The cost of those city clearances is already counted inside the business permit fee. The cooperative then pays two charges, which the ordinance says represent the city's cost of regulating and inspecting the business:

  • Mayor's Permit or Business Permit Fee: P1,000
  • Community Tax Certificate: P500

Documents for the City Treasury

To claim the exemption, the cooperative submits these to the City Treasury:

  1. Certified true copy of its CDA Certificate of Registration
  2. Certified true copy of its updated CDA Certificate of Compliance
  3. Certified true copy of the previous year's audited financial statements
  4. Certified true copy of its BIR Certificate of Tax Exemption

Why the city did this

The exemption itself is not new. The Philippine Cooperative Code of 2008 (RA 9520) already says cooperatives with accumulated reserves and undivided net savings of P10 million or less are exempt from national, city, provincial, municipal and barangay taxes. Section 133(n) of the Local Government Code also bars cities from taxing duly registered cooperatives. The Department of Finance's Bureau of Local Government Finance reminded local governments of this in Memorandum Circular No. 11-001-2016.

What Bislig's ordinance adds is a clear local procedure. Its preamble says the city already recognized the exemption, capped at a regulatory fee of up to P1,000 matching the cost of inspection, but needed written guidelines to apply it consistently. The ordinance now spells out the required clearances, the exact fees, and the documents the Treasury will ask for.

What it means for members

Many Bisliganon belong to credit, multi-purpose, transport, agriculture or fisherfolk cooperatives. For smaller cooperatives, lower and predictable local costs mean more of their surplus can stay with members as patronage refunds, interest on share capital, or savings for future services.

Cooperatives with reserves and undivided net savings above P10 million are not covered by this ordinance. Officers who are unsure where their cooperative falls should check their latest audited financial statements and ask the City Treasury before permit renewal.

Source: City of Bislig, Sangguniang Panlungsod Ordinance No. 2026-15 (enacted June 30, 2026; approved July 14, 2026), published on bislig.gov.ph.