Land Transportation Office, represented by Assistant Secretary Manuel Bruan, LTO Regional Office, RegionXrepresentedbyitsRegional Director,TimoteoA. arcia, andLTOButuanrepresentedbyRosita.Sadiaga, its Registrar, petitioners !s."ity of Butuan, represented in t#is case by Democrito D. $la%a &&, "ity Mayor, respondent'anuary (), ()))'. *itugNature: $etition for Re!ie+Summary:T#e"ityof Butuanissuedanordinance+ic#pro!idedfor t#epayment of franc#isefees,registration fees, and fees for issuance of dri!er,s permit. T#e "ity of Butuan issued t#e ordinance belie!ingt#at tall t#e po+ers of t#e DOT" #a!e been transferred to t#e L-s. On t#e ot#er #and, t#e LTO .uestionedsaid Ordinance and argued t#at t#e aut#ority to register #as not been transferred by t#e L" to t#e L-,s.T#e S" #eld t#at only t#e franc#ising po+er #as been transferred to L-s, but not t#e po+er to register. Doctrine: T#e ne+ly delegated po+ers pertain to t#e franc#ising and regulatory po+ers t#eretofore e/ercisedby t#e LT0RB and not to t#e functions of t#e LTO relati!e to t#e registration of motor !e#icles andissuance of licenses for t#e dri!ing t#ereof. $olice po+er and ta/ation, along +it# eminent domain, are in#erent po+ers of so!ereignty +#ic#t#e State mig#t s#are +it# local go!ernment units by delegation gi!en under a constitutional or astatutory fiat. Alt#oug# t#e po+er of ta/ation and police po+er are correlati!e, t#e grant of one doesnot necessarily carry +it# it t#e grant of t#e ot#erFacts: T#e Sangguniang $anglungsod ng Butuan passed an Ordinance entitled 1An Ordinance Regulatingt#e Operation of Tricycle2for23ire, pro!iding mec#anism for t#e issuance of 0ranc#ise, Registrationand $ermit, and &mposing $enalties for *iolations t#ereof and for ot#er $urposes4o T#e said ordinance pro!ided for t#e follo+ing5 $ayment of franc#ise fees for t#e grant of t#e franc#ise of tricycles2for2#ire 0ees for t#e registration of t#e !e#icle 0ees for t#e issuance of a permit for t#e dri!ing t#ereof 6of tricycles7 LTO t#en .uestioned suc# Ordinance. LTO e/plains t#at alt#oug# t#e franc#ising aut#ority o!ertricycles2for2#ire of t#e LT0RB #as been trasferred to local go!ernment units, it does not mean t#att#e aut#ority of t#e LTO to register all motor !e#icles and to issue to .ualified persons of liceses todr!e suc# !e#icles are also trasferred. On t#e ot#er #and, t#e "ity of Butuan argued t#at one of t#e salient features of t#e L" is in t#earea of local ta/ation +#ic# allo+s L-s to collect registration fees or c#arges along +it#, in its!ie+, t#e corresponding issuance of all 8inds of licenses or permit for t#e dri!ing of tricycles.o T#e respondent "ity uses t#e follo+ing as legal bases5 Sec. 9, Art. X, :;