January
1, 1992
REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL GOVERNMENT
CODE OF 1991
BOOK I
General Provisions
TITLE I.
Basic Principles
CHAPTER I
The Code: Policy and Application
SECTION
1. Title. — This Act shall be known and
cited as the "Local Government Code of 1991".
SECTION
2. Declaration of Policy. — (a) It is
hereby declared the policy of the State that the territorial and political
subdivisions of the State shall enjoy genuine and meaningful local autonomy to
enable them to attain their fullest development as self-reliant communities and
make them more effective partners in the attainment of national goals. Toward
this end, the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby
local government units shall be given more powers, authority, responsibilities,
and resources. The process of decentralization shall proceed from the national
government to the local government units.
(b) It is also the policy of the State to
ensure the accountability of local government units through the institution of
effective mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State
to require all national agencies and offices to conduct periodic consultations
with appropriate local government units, nongovernmental and people's
organizations, and other concerned sectors of the community before any project
or program is implemented in their respective jurisdictions.
SECTION
3. Operative Principles of
Decentralization. — The formulation and implementation of policies and measures
on local autonomy shall be guided by the following operative principles:
(a) There shall be an effective allocation
among the different local government units of their respective powers,
functions, responsibilities, and resources;
(b) There shall be established in every local
government unit an accountable, efficient, and dynamic organizational structure
and operating mechanism that will meet the priority needs and service
requirements of its communities;
(c) Subject to civil service law, rules and
regulations, local officials and employees paid wholly or mainly from local
funds shall be appointed or removed, according to merit and fitness, by the appropriate
appointing authority;
(d) The vesting of duty, responsibility, and
accountability in local government units shall be accompanied with provision
for reasonably adequate resources to discharge their powers and effectively
carry out their functions: hence, they shall have the power to create and
broaden their own sources of revenue and the right to a just share in national
taxes and an equitable share in the proceeds of the utilization and development
of the national wealth within their respective areas;
(e) Provinces with respect to component
cities and municipalities, and cities and municipalities with respect to
component barangays, shall ensure that the acts of their component units are
within the scope of their prescribed powers and functions;
(f) Local government units may group
themselves, consolidate or coordinate their efforts, services, and resources
commonly beneficial to them;
(g) The capabilities of local government
units, especially the municipalities and barangays, shall be enhanced by
providing them with opportunities to participate actively in the implementation
of national programs and projects;
(h) There shall be a continuing mechanism to
enhance local autonomy not only by legislative enabling acts but also by administrative
and organizational reforms;
(i) Local government units shall share with
the national government the responsibility in the management and maintenance of
ecological balance within their territorial jurisdiction, subject to the
provisions of this Code and national policies;
(j) Effective mechanisms for ensuring the
accountability of local government units to their respective constituents shall
be strengthened in order to upgrade continually the quality of local
leadership;
(k) The realization of local autonomy shall
be facilitated through improved coordination of national government policies
and programs an extension of adequate technical and material assistance to less
developed and deserving local government units;
(l) The participation of the private sector
in local governance, particularly in the delivery of basic services, shall be
encouraged to ensure the viability of local autonomy as an alternative strategy
for sustainable development; and
(m) The national government shall ensure that
decentralization contributes to the continuing improvement of the performance
of local government units and the quality of community life.
SECTION
4. Scope of Application. — This Code
shall apply to all provinces, cities, municipalities, barangays, and other
political subdivisions as may be created by law, and, to the extent herein
provided, to officials, offices, or agencies of the national government.
SECTION
5. Rules of Interpretation. — In the
interpretation of the provisions of this Code, the following rules shall apply:
(a) Any provision on a power of a local
government unit shall be liberally interpreted in its favor, and in case of
doubt, any question thereon shall be resolved in favor of devolution of powers
and of the lower local government unit. Any fair and reasonable doubt as to the
existence of the power shall be interpreted in favor of the local government
unit concerned;
(b) In case of doubt, any tax ordinance or
revenue measure shall be construed strictly against the local government unit
enacting it, and liberally in favor of the taxpayer. Any tax exemption,
incentive or relief granted by any local government unit pursuant to the
provisions of this Code shall be construed strictly against the person claiming
it.
(c) The general welfare provisions in this
Code shall be liberally interpreted to give more powers to local government
units in accelerating economic development and upgrading the quality of life
for the people in the community;
(d) Rights and obligations existing on the
date of effectivity of this Code and arising out of contracts or any other
source of presentation involving a local government unit shall be governed by
the original terms and conditions of said contracts or the law in force at the
time such rights were vested; and
(e) In the resolution of controversies
arising under this Code where no legal provision or jurisprudence applies,
resort may be had to the customs and traditions in the place where the
controversies take place.
CHAPTER II
General Powers and Attributes of Local Government
Units
SECTION
6. Authority to Create Local Government
Units. — A local government unit may be created, divided, merged, abolished, or
its boundaries substantially altered either by law enacted by Congress in the
case of a province, city, municipality, or any other political subdivision, or
by ordinance passed by the sangguniang panlalawigan or sangguniang panlungsod
concerned in the case of a barangay located within its territorial
jurisdiction, subject to such limitations and requirements prescribed in this
Code.
SECTION
7. Creation and Conversion. — As a
general rule, the creation of a local government unit or its conversion from
one level to another level shall be based on verifiable indicators of viability
and projected capacity to provide services, to wit:
(a) Income. — It must be sufficient, based on
acceptable standards, to provide for all essential government facilities and
services and special functions commensurate with the size of its population, as
expected of the local government unit concerned;
(b) Population. — It shall be determined as
the total number of inhabitants within the territorial jurisdiction of the
local government unit concerned; and
(c) Land Area. — It must be contiguous,
unless it comprises two or more islands or is separated by a local government
unit independent of the others; properly identified by metes and bounds with
technical descriptions; and sufficient to provide for such basic services and
facilities to meet the requirements of its populace.
Compliance
with the foregoing indicators shall be attested to by the Department of Finance
(DOF), the National Statistics Office (NSO), and the Lands Management Bureau
(LMB) of the Department of Environment and Natural Resources (DENR).
SECTION
8. Division and Merger. — Division and
merger of existing local government units shall comply with the same
requirements herein prescribed for their creation: Provided, however, That such
division shall not reduce the income, population, or land area of the local
government unit or units concerned to less than the minimum requirements
prescribed in this Code: Provided, further, That the income classification of
the original local government unit or units shall not fall below its current
classification prior to such division.
The
income classification of local government units shall be updated within six (6)
months from the effectivity of this Code to reflect the changes in their
financial position resulting from the increased revenues as provided herein.
SECTION
9. Abolition of Local Government Units.
— A local government unit may be abolished when its income, population, or land
area has been irreversibly reduced to less than the minimum standards
prescribed for its creation under Book III of this Code, as certified by the
national agencies mentioned in Section 7 hereof to Congress or to the
sangguniang concerned, as the case may be.
The
law or ordinance abolishing a local government unit shall specify the province,
city, municipality, or barangay with which the local government unit sought to
be abolished will be incorporated or merged.
SECTION
10. Plebiscite Requirement. —
No creation, division, merger, abolition, or substantial alteration of
boundaries of local government units shall take effect unless approved by a
majority of the votes cast in a plebiscite called for the purpose in the
political unit or units directly affected. Said plebiscite shall be conducted
by the Commission on Elections (COMELEC) within one hundred twenty (120) days
from the date of effectivity of the law or ordinance effecting such action,
unless said law or ordinance fixes another date.
SECTION
11. Selection and Transfer of
Local Government Site, Offices and Facilities. — (a) The law or ordinance
creating or merging local government units shall specify the seat of government
from where governmental and corporate services shall be delivered. In selecting
said site, factors relating to geographical centrality, accessibility,
availability of transportation and communication facilities, drainage and
sanitation, development and economic progress, and other relevant
considerations shall be taken into account.
(b) When conditions and developments in the
local government unit concerned have significantly changed subsequent to the
establishment of the seat of government, its sanggunian may, after public
hearing and by a vote of two-thirds (2/3) of all its members, transfer the same
to a site better suited to its needs. Provided, however, That no such transfer
shall be made outside the territorial boundaries of the local government unit
concerned.
The
old site, together with the improvements thereon, may be disposed of by the
sale or lease or converted to such other use as the sangguniang concerned may
deem beneficial to the local government unit concerned and its inhabitants.
(c) Local government offices and facilities
shall not be transferred, relocated, or converted to other uses unless public
hearings are first conducted for the purpose and the concurrence of the
majority of all the members of the sanggunian concerned is obtained.
SECTION
12. Government Centers. —
Provinces, cities, and municipalities shall endeavor to establish a government
center where offices, agencies, or branches of the national government, local
government units, or government-owned or controlled corporations may, as far as
practicable, be located. In designating such a center, the local government
unit concerned shall take into account the existing facilities of national and
local agencies and offices which may serve as the government center as
contemplated under this Section. The national government, local government unit
or government-owned or controlled corporation concerned shall bear the expenses
for the construction of its buildings and facilities in the government
center.
SECTION
13. Naming of Local Government
Units and Public Places, Streets and Structures. — (a) The sangguniang
panlalawigan may, in consultation with the Philippine Historical Commission
(PHC), change the name of the following within its territorial jurisdiction:
(1) Component
cities and municipalities, upon the recommendation of the sanggunian concerned;
(2) Provincial
roads, avenues, boulevards, thoroughfares, and bridges; cd
(3) Public
vocational or technical schools and other post-secondary and tertiary schools;
(4) Provincial
hospitals, health centers, and other health facilities; and
(5) Any
other public place or building owned by the provincial government.
(b) The sanggunian of highly urbanized cities
and of component cities whose charters prohibit their voters from voting for
provincial elective officials, hereinafter referred to in this Code as
independent component cities, may, in consultation with the Philippine
Historical Commission, change the name of the following within its territorial
jurisdiction:
(1) City
barangays, upon the recommendation of the sangguniang barangay concerned;
(2) City
roads, avenues, boulevards, thoroughfares, and bridges;
(3) Public
elementary, secondary and vocational or technical schools, community colleges
and non-chartered colleges;
(4) City
hospitals, health centers and other health facilities; and
(5) Any
other public place or building owned by the city government.
(c) The sanggunians of component cities and
municipalities may, in consultation with the Philippine Historical Commission,
change the name of the following within its territorial jurisdiction:
(1) City
and municipal barangays, upon recommendation of the sangguniang barangay
concerned;
(2) City,
municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges;
(3) City
and municipal public elementary, secondary and vocational or technical schools,
post- secondary and other tertiary schools;
(4) City
and municipal hospitals, health centers and other health facilities; and
(5) Any
other public place or building owned by the municipal government.
(d) None of the foregoing local government
units, institutions, places, or buildings shall be named after a living person,
nor may a change of name be made unless for a justifiable reason and, in any
case, not oftener than once every ten (10) years. The name of a local
government unit or a public place, street or structure with historical,
cultural, or ethnic significance shall not be changed, unless by a unanimous
vote of the sanggunian concerned and in consultation with the PHC.
(e) A change of name of a public school shall
be made only upon the recommendation of the local school board concerned.
(f) A change of name of public hospitals,
health centers, and other health facilities shall be made only upon the
recommendation of the local health board concerned.
(g) The change of name of any local
government unit shall be effective only upon ratification in a plebiscite
conducted for the purpose in the political unit directly affected.
(h) In any change of name, the Office of the
President, the representative of the legislative district concerned, and the
Bureau of Posts shall be notified.
SECTION
14. Beginning of Corporate Existence.
— When a new local government unit is created, its corporate existence shall
commence upon the election and qualification of its chief executive and a
majority of the members of its sanggunian, unless some other time is fixed
therefor by the law or ordinance creating it.
SECTION
15. Political and Corporate
Nature of Local Government Units. — Every local government unit created or
recognized under this Code is a body politic and corporate endowed with powers
to be exercised by it in conformity with law. As such, it shall exercise powers
as a political subdivision of the national government and as a corporate entity
representing the inhabitants of its territory.
SECTION
16. General Welfare. — Every
local government unit shall exercise the powers expressly granted, those
necessarily implied therefrom, as well as powers necessary, appropriate, or
incidental for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their respective territorial
jurisdictions, local government units shall ensure and support, among other
things, the preservation and enrichment of culture, promote health and safety,
enhance the right of the people to a balanced ecology, encourage and support
the development of appropriate and self-reliant scientific and technological
capabilities, improve public morals, enhance economic prosperity and social
justice, promote full employment among their residents, maintain peace and
order, and preserve the comfort and convenience of their inhabitants.
SECTION
17. Basic Services and
Facilities. — (a) Local government units shall endeavor to be self-reliant and
shall continue exercising the powers and discharging the duties and functions
currently vested upon them. They shall also discharge the functions and
responsibilities of national agencies and offices devolved to them pursuant to
this Code. Local government units shall likewise exercise such other powers and
discharge such other functions and responsibilities as are necessary,
appropriate, or incidental to efficient and effective provisions of the basic
services and facilities enumerated herein.
(b) Such
basic services and facilities include, but are not limited to, the following:
(1) For
Barangay:
(i) Agricultural
support services which include planting materials distribution system and
operation of farm produce collection and buying stations;
(ii) Health
and social welfare services which include maintenance of barangay health center
and day-care center;
(iii) Services
and facilities related to general hygiene and sanitation, beautification, and
solid waste collection;
(iv) Maintenance
of katarungang pambarangay;
(v) Maintenance
of barangay roads and bridges and water supply systems;
(vi) Infrastructure
facilities such as multi-purpose hall, multipurpose pavement, plaza, sports
center, and other similar facilities;
(vii) Information
and reading center; and
(viii) Satellite
or public market, where viable;
(2) For a
Municipality:
(i) Extension
and on-site research services and facilities related to agriculture and fishery
activities which include dispersal of livestock and poultry, fingerlings, and
other seedling materials for aquaculture; palay, corn, and vegetable seed
farms; medicinal plant gardens; fruit tree, coconut, and other kinds of
seedling nurseries; demonstration farms; quality control of copra and
improvement and development of local distribution channels, preferably through
cooperatives; interbarangay irrigation system; water and soil resource utilization
and conservation projects; and enforcement of fishery laws in municipal waters
including the conservation of mangroves;
(ii) Pursuant
to national policies and subject to supervision, control and review of the
DENR, implementation of community-based forestry projects which include
integrated social forestry programs and similar projects; management and
control of communal forests with an area not exceeding fifty (50) square
kilometers; establishment of tree parks, greenbelts, and similar forest development
projects;
(iii) Subject
to the provisions of Title Five, Book I of this Code, health services which
include the implementation of programs and projects on primary health care,
maternal and child care, and communicable and non-communicable disease control
services, access to secondary and tertiary health services; purchase of
medicines, medical supplies, and equipment needed to carry out the services
herein enumerated;
(iv) Social
welfare services which include programs and projects on child and youth
welfare, family and community welfare, women's welfare, welfare of the elderly
and disabled persons; community-based rehabilitation programs for vagrants,
beggars, street children, scavengers, juvenile delinquents, and victims of drug
abuse; livelihood and other pro-poor projects; nutrition services; and family
planning services;
(v) Information
services which include investments and job placement information systems, tax
and marketing information systems, and maintenance of a public library;
(vi) Solid
waste disposal system or environmental management system and services or
facilities related to general hygiene and sanitation;
(vii) Municipal
buildings, cultural centers, public parks including freedom parks, playgrounds,
and other sports facilities and equipment, and other similar facilities;
(viii) Infrastructure
facilities intended primarily to service the needs of the residents of the
municipality and which are funded out of municipal funds including but not
limited to, municipal roads and bridges; school buildings and other facilities
for public elementary and secondary schools; clinics, health centers and other
health facilities necessary to carry out health services; communal irrigation,
small water impounding projects and other similar projects; fish ports;
artesian wells, spring development, rainwater collectors and water supply
systems; seawalls, dikes, drainage and sewerage, and flood control; traffic
signals and road signs; and similar facilities;
(ix) Public
markets, slaughterhouses and other municipal enterprises;
(x) Public
cemetery;
(xi) Tourism
facilities and other tourist attractions, including the acquisition of
equipment, regulation and supervision of business concessions, and security
services for such facilities; and
(xii) Sites
for police and fire stations and substations and municipal jail;
(3) For a
Province:
(i) Agricultural
extension and on-site research services and facilities which include the
prevention and control of plant and animal pests and diseases; dairy farms,
livestock markets, animal breeding stations, and artificial insemination
centers; and assistance in the organization of farmers and fishermen's
cooperatives, and other collective organizations, as well as the transfer of
appropriate technology;
(ii) Industrial
research and development services, as well as the transfer of appropriate
technology;
(iii) Pursuant
to national policies and subject to supervision, control and review of the
DENR, enforcement of forestry laws limited to community-based forestry
projects, pollution control law, small-scale mining law, and other laws on the
protection of the environment; and mini-hydroelectric projects for local
purposes;
(iv) Subject
to the provisions of Title Five, Book I of this Code, health services which
include hospitals and other tertiary health services;
(v) Social
welfare services which include programs and projects on rebel returnees and
evacuees; relief operations; and population development services;
(vi) Provincial
buildings, provincial jails, freedom parks and other public assembly areas and
similar facilities;
(vii) Infrastructure
facilities intended to service the needs of the residence of the province and
which are funded out of provincial funds including, but not limited to,
provincial roads and bridges; inter-municipal waterworks, drainage and
sewerage, flood control, and irrigation systems; reclamation projects; and
similar facilities;
(viii) Programs
and projects for low-cost housing and other mass dwellings, except those funded
by the Social Security System (SSS), Government Service Insurance System p. 172
(GSIS), and the Home Development Mutual Fund (HDMF): Provided, That national
funds for these programs and projects shall be equitably allocated among the
regions in proportion to the ratio of the homeless to the population;
(ix) Investment
support services, including access to credit financing;
(x) Upgrading
and modernization of tax information and collection services through the use of
computer hardware and software and other means;
(xi) Inter-municipal
telecommunications services, subject to national policy guidelines; and
(xii) Tourism development and promotion programs;
(4) For a
City:
All the services and facilities of the municipality
and province, and in addition thereto, the following:
(i) Adequate communication and
transportation facilities;
(c) Notwithstanding the provisions of
subsection (b) hereof, public works and infrastructure projects and other
facilities, programs and services funded by the national government under the
annual General Appropriations Act, other special laws, pertinent executive
orders, and those wholly or partially funded from foreign sources, are not
covered under this Section, except in those cases where the local government
unit concerned is duly designated as the implementing agency for such projects,
facilities, programs, and services. acd
(d) The designs, plans, specifications,
testing of materials, and the procurement of equipment and materials at P170
from both foreign and local sources necessary for the provision of the
foregoing services and facilities shall be undertaken by the local government
unit concerned, based on national policies, standards and guidelines.
(e) National agencies or offices concerned
shall devolve to local government units the responsibility for the provision of
basic services and facilities enumerated in this Section within six (6) months
after the effectivity of this Code.
As
used in this Code, the term "devolution" refers to the act by which
the national government confers power and authority upon the various local
government units to perform specific functions and responsibilities.
(f) The national government or the next
higher level of local government unit may provide or augment the basic services
and facilities assigned to a lower level of local government unit when such
services or facilities are not made available or, if made available, are
inadequate to meet the requirements of its inhabitants. casia
(g) The basic services and facilities hereinabove
enumerated shall be funded from the share of local government units in the
proceeds of national taxes and other local revenues and funding support from
the national government, its instrumentalities and government-owned or
controlled corporations which are tasked by law to establish and maintain such
services or facilities. Any fund or resource available for the use of local
government units shall be first allocated for the provision of basic services
or facilities enumerated in subsection (b) hereof before applying the same for
other purposes, unless otherwise provided in this Code.
(h) Regional offices of national agencies or
offices whose functions are devolved to local government units as provided
herein shall be phased out within one (1) year from the approval of this Code.
Said national agencies and offices may establish such field units as may be
necessary for monitoring purposes and providing technical assistance to local
government units. The properties, equipment, and other assets of these regional
offices shall be distributed to the local government units in the region in
accordance with the rules and regulations issued by the oversight committee
created under this Code. acd
(i) The devolution contemplated in this
Code shall include the transfer to local government units of the records,
equipment, and other assets and personnel of national agencies and offices
corresponding to the devolved powers, functions, and responsibilities.
Personnel
of said national agencies or offices shall be absorbed by the local government
units to which they belong or in whose areas they are assigned to the extent
that it is administratively viable as determined by the said oversight
committee: Provided, That the rights accorded to such personnel pursuant to civil
service law, rules and regulations shall not be impaired: Provided, further,
That regional directors who are career executive service officers and other
officers of similar rank in the said regional offices who cannot be absorbed by
the local government unit shall be retained by the national government, without
any diminution of rank, salary or tenure.
cdasia
(j) To ensure the active participation of
the private sector in local governance, local government units may, by
ordinance, sell, lease, encumber, or otherwise dispose of public economic
enterprises owned by them in their proprietary capacity.
Costs
may also be charged for the delivery of basic services or facilities enumerated
in this Section. cdtai
SECTION
18. Power to Generate and Apply
Resources. — Local government units shall have the power and authority to
establish an organization that shall be responsible for the efficient and
effective implementation of their development plans, program objectives and
priorities; to create their own sources of revenues and to levy taxes, fees,
and charges which shall accrue exclusively for their use and disposition and
which shall be retained by them; to have a just share in national taxes which
shall be automatically and directly released to them without need of any
further action; to have an equitable share in the proceeds from the utilization
and development of the national wealth and resources within their respective
territorial jurisdictions including sharing the same with the inhabitants by
way of direct benefits; to acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property held by them in their
proprietary capacity and to apply their resources and assets for productive,
developmental, or welfare purposes, in the exercise or furtherance of their
governmental or proprietary powers and functions and thereby ensure their
development into self-reliant communities and active participants in the
attainment of national goals.
SECTION
19. Eminent Domain. — A local
government unit may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, or purpose or
welfare for the benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and pertinent
laws: Provided, however, That the power of eminent domain may not be exercised
unless a valid and definite offer has been previously made to the owner, and
such offer was not accepted: Provided, further, That the local government unit
may immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the proper court of at
least fifteen percent (15%) of the fair market value of the property based on
the current tax declaration of the property to be expropriated: Provided,
finally, That, the amount to be paid for the expropriated property shall be
determined by the proper court, based on the fair market value at the time of
the taking of the property. cdt
SECTION
20. Reclassification of Lands.
— (a) A city or municipality may, through an ordinance passed by the sanggunian
after conducting public hearings for the purpose, authorize the
reclassification of agricultural lands and provide for the manner of their utilization
or disposition in the following cases: (1) when the land ceases to be
economically feasible and sound for agricultural purposes as determined by the
Department of Agriculture or (2) where the land shall have substantially
greater economic value for residential, commercial, or industrial purposes, as
determined by the sanggunian concerned: Provided, That such reclassification
shall be limited to the following percentage of the total agricultural land
area at the time of the passage of the ordinance:
(1) For highly urbanized and independent
component cities, fifteen percent (15%);
(2) For component cities and first to the
third class municipalities, ten percent (10%); and acd
(3) For fourth to sixth class municipalities,
five percent (5%): Provided, further, That agricultural lands distributed to
agrarian reform beneficiaries pursuant to Republic Act Numbered Sixty-six
hundred fifty-seven (R.A. No. 6657). otherwise known as "The Comprehensive
Agrarian Reform Law", shall not be affected by the said reclassification
and the conversion of such lands into other purposes shall be governed by
Section 65 of said Act.
(b) The President may, when public interest
so requires and upon recommendation of the National Economic and Development
Authority, authorize a city or municipality to reclassify lands in excess of
the limits set in the next preceding paragraph.
(c) The local government units shall, in
conformity with existing laws, continue to prepare their respective
comprehensive land use plans enacted through zoning ordinances which shall be
the primary and dominant bases for the future use of land resources: Provided.
That the requirements for food production, human settlements, and industrial
expansion shall be taken into consideration in the preparation of such
plans. aisa dc
(d) Where approval by a national agency is
required for reclassification, such approval shall not be unreasonably
withheld. Failure to act on a proper and complete application for
reclassification within three (3) months from receipt of the same shall be
deemed as approval thereof.
(e) Nothing in this Section shall be
construed as repealing, amending, or modifying in any manner the provisions of
R.A. No. 6657.
SECTION
21. Closure and Opening of
Roads. — (a) A local government unit may, pursuant to an ordinance, permanently
or temporarily close or open any local road, alley, park, or square falling
within its jurisdiction: Provided, however, That in case of permanent closure,
such ordinance must be approved by at least two-thirds (2/3) of all the members
of the sanggunian, and when necessary, an adequate substitute for the public
facility that is subject to closure is provided. casia
(b) No such way or place or any part thereof
shall be permanently closed without making provisions for the maintenance of
public safety therein. A property thus permanently withdrawn from public use
may be used or conveyed for any purpose for which other real property belonging
to the local government unit concerned may be lawfully used or conveyed: Provided,
however, That no freedom park shall be closed permanently without provision for
its transfer or relocation to a new site.
(c) Any national or local road, alley, park,
or square may be temporarily closed during an actual emergency, or fiesta
celebrations, public rallies, agricultural or industrial fairs, or an
undertaking of public works and highways, telecommunications, and waterworks
projects, the duration of which shall be specified by the local chief executive
concerned in a written order: Provided, however, That no national or local
road, alley, park, or square shall be temporarily closed for athletic,
cultural, or civic activities not officially sponsored, recognized, or approved
by the local government unit concerned.
cda
(d) Any city, municipality, or barangay may,
by a duly enacted ordinance, temporarily close and regulate the use of any
local street, road, thoroughfare, or any other public place where shopping
malls, Sunday, flea or night markets, or shopping areas may be established and
where goods, merchandise, foodstuffs, commodities, or articles of commerce may
be sold and dispensed to the general public.
SECTION
22. Corporate Powers. — (a)
Every local government unit, as a corporation, shall have the following powers:
(1) To have continuous succession in its
corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal
property;
(5) To enter into contracts; and cdt
(6)
To exercise such other powers as are
granted to corporations, subject to the limitations provided in this Code and
other laws.
(b) Local government units may continue
using, modify, or change their existing corporate seals: Provided, That newly
established local government units or those without corporate seals may create
their own corporate seals which shall be registered with the Department of the
Interior and Local Government: Provided, further, That any change of corporate
seal shall also be registered as provided hereon.
(c) Unless otherwise provided in this Code,
no contract may be entered into by the local chief executive in behalf of the
local government unit without prior authorization by the sanggunian concerned.
A legible copy of such contract shall be posted at a conspicuous place in the
provincial capitol or the city, municipal or barangay hall. cdt
(d) Local government units shall enjoy full
autonomy in the exercise of their proprietary functions and in the limitations
provided in this Code and other applicable laws,
SECTION
23. Authority to Negotiate and
Secure Grants. — Local chief executives may, upon authority of the sanggunian,
negotiate and secure financial grants or donations in kind, in support of the
basic services or facilities enumerated under Section 17 hereof, from local and
foreign assistance agencies without necessity of securing clearance or approval
therefor from any department, agency, or office of the national government of
from any higher local government unit: Provided, That projects financed by such
grants or assistance with national security implications shall be approved by
the national agency concerned: Provided, further, That when such national
agency fails to act on the request for approval within thirty (30) days from
receipt thereof, the same shall be deemed approved. cdasia
The
local chief executive shall, within thirty (30) days upon signing of such grant
agreement or deed of donation, report the nature, amount, and terms of such
assistance to both Houses of Congress and the President.
SECTION
24. Liability for Damages. —
Local government units and their officials are not exempt from liability for
death or injury to persons or damage to property.
CHAPTER
III
Intergovernmental
Relations
ARTICLE
I
National
Government and Local Government Units
SECTION
25. National Supervision over
Local Government Units. — (a) Consistent with the basic policy on local
autonomy, the President shall exercise general supervision over local
government units to ensure that their acts are within the scope of their
prescribed powers and functions. cd
The
President shall exercise supervisory authority directly over provinces, highly
urbanized cities, and independent component cities; through the province with
respect to component cities and municipalities; and through the city and municipality
with respect to barangays.
(b) National agencies and offices with
project implementation functions shall coordinate with one another and with the
local government units concerned in the discharge of these functions. They
shall ensure the participation of local government units both in the planning
and implementation of said national projects.
(c) The President may, upon request of the
local government unit concerned, direct the appropriate national agency to
provide financial, technical, or other forms of assistance to the local
government unit. Such assistance shall be extended at no extra cost to the
local government unit concerned. aisa
dc
(d) National agencies and offices including
government-owned or controlled corporations with field units or branches in a
province, city, or municipality shall furnish the local chief executive
concerned, for his information and guidance, monthly reports including duly
certified budgetary allocations and expenditures.
SECTION
26. Duty of National Government
Agencies in the Maintenance of Ecological Balance. — It shall be the duty of
every national agency or government-owned or controlled corporation authorizing
or involved in the planning and implementation of any project or program that
may cause pollution, climatic change, depletion of non-renewable resources,
loss of crop land, rangeland, or forest cover, and extinction of animal or
plant species, to consult with the local government units, nongovernmental
organizations, and other sectors concerned and explain the goals and objectives
of the project or program, its impact upon the people and the community in
terms of environmental or ecological balance, and the measures that will be
undertaken to prevent or minimize the adverse effects thereof. aisa dc
SECTION
27. Prior Consultations
Required. — No project or program shall be implemented by government
authorities unless the consultations mentioned in Sections 2 (c) and 26 hereof
are complied with, and prior approval of the sanggunian concerned is obtained:
Provided, That occupants in areas where such projects are to be implemented
shall not be evicted unless appropriate relocation sites have been provided, in
accordance with the provisions of the Constitution.
ARTICLE
II
Relations
with the Philippine National Police
SECTION
28. Powers of Local Chief
Executives over the Units of the Philippine National Police. — The extent of
operational supervision and control of local chief executives over the police
force, fire protection unit, and jail management personnel assigned in their
respective jurisdictions shall be governed by the provisions of Republic Act
Numbered Sixty-nine hundred seventy-five (R.A. No. 6975), otherwise known as
"The Department of the Interior and Local Government Act of 1990",
and the rules and regulations issued pursuant thereto. aisa dc
ARTICLE
III
Inter-Local
Government Relations
SECTION
29. Provincial Relations with
SECTION
30. Review of Executive Orders.
— (a) Except as otherwise provided under the Constitution and special statutes,
the governor shall review all executive orders promulgated by the component
city or municipal mayor within his jurisdiction. The city or municipal mayor
shall review all executive orders promulgated by the punong barangay within his
jurisdiction. Copies of such orders shall be forwarded to the governor or the
city or municipal mayor, as the case may be, within three (3) days from their
issuance. In all instances of review, the local chief executive concerned shall
ensure that such executive orders are within the powers granted by law and in
conformity with provincial, city, or municipal ordinances.
(b) If the governor or the city or municipal
mayor fails to act on said executive orders within thirty (30) days after their
submission, the same shall be deemed consistent with law and therefore
valid. cd
SECTION
31. Submission of Municipal
Questions to the Provincial Legal Officer or Prosecutor. — In the absence of a
municipal legal officer, the municipal government may secure the opinion of the
provincial legal officer, and in the absence of the latter, that of the
provincial prosecutor on any legal question affecting the municipality.
SECTION
32. City and Municipal
Supervision over Their Respective Barangays. — The city or municipality,
through the city or municipal mayor concerned, shall exercise general
supervision over component barangays to ensure that said barangays act within
the scope of their prescribed powers and functions.
SECTION
33. Cooperative Undertakings
Among Local Government Units. — Local government units may, through appropriate
ordinances, group themselves, consolidate, or coordinate their efforts,
services, and resources for purposes commonly beneficial to them. In support of
such undertakings, the local government units involved may, upon approval by
the sanggunian concerned after a public hearing conducted for the purpose,
contribute funds, real estate, equipment, and other kinds of property and
appoint or assign personnel under such terms and conditions as may be agreed
upon by the participating local units through Memoranda of Agreement. cdtai
CHAPTER
IV
Relations
With People's and Non-Governmental Organizations
SECTION
34. Role of People's and
Non-governmental Organizations. — Local government units shall promote the
establishment and operation of people's and non-governmental organizations to
become active partners in the pursuit of local autonomy.
SECTION
35. Linkages with People's and
Non-governmental Organizations. — Local government units may enter into joint
ventures and such other cooperative arrangements with people's and
non-governmental organizations to engage in the delivery of certain basic
services, capability-building and livelihood projects, and to develop local
enterprises designed to improve productivity and income, diversity agriculture,
spur rural industrialization, promote ecological balance, and enhance the
economic and social well-being of the people.
cdt
SECTION
36. Assistance to People's and
Non-governmental Organizations. — A local government unit may, through its
local chief executive and with the concurrence of the sanggunian concerned,
provide assistance, financial or otherwise, to such people's and
non-governmental organizations for economic, socially-oriented, environmental,
or cultural projects to be implemented within its territorial jurisdiction.
CHAPTER
V
Local
Prequalification, Bids and Awards Committee
SECTION
37. Local Prequalification,
Bids and Awards Committee (Local PBAC). — (a) There is hereby created a local
prequalification, bids and awards committee in every province, city, and
municipality, which shall be primarily responsible for the conduct of
prequalification of contractors, bidding, evaluation of bids, and the
recommendation of awards concerning local infrastructure projects. The governor
or the city or municipal mayor shall act as the chairman with the following as
members:
(1) The chairman of the appropriations
committee of the sanggunian concerned;
(2) A representative of the minority party in
the sanggunian concerned, if any, or if there be none, one (1) chosen by said
sanggunian from among its members;
(3) The local treasurer; acd
(4) Two (2) representatives of
non-governmental organizations that are represented in the local development
council concerned, to be chosen by the organizations themselves; and
(5) Any practicing certified public
accountant from the private sector, to be designated by the local chapter of
the Philippine Institute of Certified Public Accountants, if any.
Representatives
of the Commission on Audit shall observe the proceedings of such committee and
shall certify that the rules and procedures for prequalification, bids and
awards have been complied with.
(b) The agenda and other information relevant
to the meetings of such committee shall be deliberated upon by the committee at
least one (1) week before the holding of such meetings. casia
(c) All meetings of the committee shall be
held in the provincial capitol or the city or municipal hall. The minutes of
such meetings of the committee and any decision made therein shall be duly
recorded, posted at a prominent place in the provincial capitol or the city or
municipal hall, and delivered by the most expedient means to elective local
officials concerned.
SECTION
38. Local Technical Committee.
— (a) There is hereby created a local technical committee in every province,
city and municipality to provide technical assistance to the local
prequalification, bids and awards committees. It shall be composed of the
provincial, city or municipal engineer, the local planning and development
coordinator, and such other officials designated by the local prequalification,
bids and awards committee. aisa dc
(b) The chairman of the local technical
committee shall be designated by the local prequalification, bids and awards
committee and shall attend its meeting in order to present the reports and
recommendations of the local technical committee.
TITLE
II.
Elective
Officials
CHAPTER
I
Qualifications
and Election
SECTION
39. Qualifications. — (a) An
elective local official must be a citizen of the Philippines; a registered
voter in the barangay, municipality, city, or province or, in the case of a
member of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang
bayan, the district where he intends to be elected; a resident therein for at
least one (1) year immediately preceding the day of the election; and able to
read and write Filipino or any other local language or dialect. aisa dc
(b) Candidates for the position of governor,
vice-governor, or member of the sangguniang panlalawigan, or mayor, vice-mayor
or member of the sangguniang panlungsod of highly urbanized cities must be at
least twenty-one (21) years of age on election day.
(c) Candidates for the position of mayor or
vice-mayor of independent component cities, component cities, or municipalities
must be at least twenty-one (21) years of age on election day.
(d) Candidates for the position of member of
the sangguniang panlungsod or sangguniang bayan must be at least eighteen (18)
years of age on election day.
(e) Candidates for the position of punong
barangay or member of the sangguniang barangay must be at least eighteen (18)
years of age on election day.
(f) Candidates for the sangguniang kabataan
must be at least fifteen (15) years of age but not more than twenty-one (21)
years of age on election day. cdasia
SECTION
40. Disqualifications. — The
following persons are disqualified from running for any elective local
position:
(a) Those sentenced by final judgment for an
offense involving moral turpitude or for an offense punishable by one (1) year
or more of imprisonment, within two (2) years after serving sentence;
(b) Those removed from office as a result of
an administrative case;
(c) Those convicted by final judgment for
violating the oath of allegiance to the Republic; cdasia
(d) Those with dual citizenship;
(e) Fugitives from justice in criminal or
non-political cases here or abroad;
(f) Permanent residents in a foreign country
or those who have acquired the right to reside abroad and continue to avail of
the same right after the effectivity of this Code; and
(g) The insane or feeble-minded.
SECTION
41. Manner of Election. — (a)
The governor, vice-governor, city mayor, city vice-mayor, municipal mayor,
municipal vice-mayor, and punong barangay shall be elected at large in their
respective units by the qualified voters therein. However, the sangguniang
kabataan chairman for each barangay shall be elected by the registered voters
of the katipunan ng kabataan, as provided in this Code. casia
(b) The regular members of the sangguniang
panlalawigan, sangguniang panlungsod, and sangguniang bayan shall be elected by
district, as may be provided for by law. Sangguniang barangay members shall be
elected at large. The presidents of the leagues of sanggunian members of
component cities and municipalities shall serve as ex officio members of the
sangguniang panlalawigan concerned. The presidents of the "liga ng mga
barangay and the pederasyon ng mga sangguniang kabataan" elected by their
respective chapters, as provided in this Code, shall serve as ex officio
members of the sangguniang panlalawigan, sangguniang panlungsod, and
sangguniang bayan. IHaSED
(c) In addition thereto, there shall be one
(1) sectoral representative from the women, one (1) from the workers, and one
(1) from any of the following sectors: the urban poor, indigenous cultural
communities, disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of the next
local elections as may be provided for by law. The COMELEC shall promulgate the
rules and regulations to effectively provide for the election of such sectoral
representatives. cdt
SECTION
42. Date of Election. — Unless
otherwise provided by law, the elections for local officials shall be held
every three (3) years on the second Monday of May.
SECTION
43. Term of Office. — (a) The
term of office of all local elective officials elected after the effectivity of
this Code shall be three (3) years, starting from noon of June 30, 1992 or such
date as may be provided for by law, except that of elective barangay officials:
Provided, That all local officials first elected during the local elections
immediately following the ratification of the 1987 Constitution shall serve
until noon of June 30, 1992. cda
(b) No local elective official shall serve
for more than three (3) consecutive terms in the same position. Voluntary
renunciation of the office for any length of time shall not be considered as an
interruption in the continuity of service for the full term for which the
elective official concerned was elected.
(c) The term of office of barangay officials
and members of the sangguniang kabataan shall be for three (3) years, which
shall begin after the regular election of barangay officials on the second
Monday of May 1994.
CHAPTER
II
Vacancies
and Succession
SECTION
44. Permanent Vacancies in the
Offices of the Governor, Vice-Governor, Mayor, and Vice-Mayor. — If a permanent
vacancy occurs in the office of the governor or mayor, the vice-governor or
vice-mayor concerned shall become the governor or mayor. If a permanent vacancy
occurs in the offices of the governor, vice-governor, mayor, or vice-mayor, the
highest ranking sanggunian member or, in case of his permanent inability, the
second highest ranking sanggunian member, shall become the governor,
vice-governor, mayor or vice-mayor, as the case may be. Subsequent vacancies in
the said office shall be filled automatically by the other sanggunian members
according to their ranking as defined herein.
cdtai
(b) If a permanent vacancy occurs in the
office of the punong barangay, the highest ranking sanggunian barangay member
or, in case of his permanent inability, the second highest ranking sanggunian
member, shall become the punong barangay.
(c) A tie between or among the highest
ranking sanggunian members shall be resolved by the drawing of lots.
(d) The successors as defined herein shall
serve only the unexpired terms of their predecessors. cd i
For
purposes of this Chapter, a permanent vacancy arises when an elective local
official fills a higher vacant office, refuses to assume office, fails to
qualify, dies, is removed from office, voluntarily resigns, or is otherwise
permanently incapacitated to discharge the functions of his office.
For
purposes of succession as provided in the Chapter, ranking in the sanggunian
shall be determined on the basis of the proportion of votes obtained by each winning
candidate to the total number of registered voters in each district in the
immediately preceding local election.
SECTION
45. Permanent Vacancies in the
Sanggunian. — (a) Permanent vacancies in the sanggunian where automatic
succession provided above do not apply shall be filled by appointment in the
following manner: cda
(1) The President, through the Executive
Secretary, in the case of the sangguniang panlalawigan and the sangguniang
panlungsod of highly urbanized cities and independent component cities;
(2) The governor, in the case of the
sangguniang panlungsod of component cities and the sangguniang bayan;
(3) The city or municipal mayor, in the case
of sangguniang barangay, upon recommendation of the sangguniang barangay
concerned.
(b) Except for the sangguniang barangay, only
the nominee of the political party under which the sanggunian member concerned
had been elected and whose elevation to the position next higher in rank
created the last vacancy in the sanggunian shall be appointed in the manner
hereinabove provided. The appointee shall come from the same political party as
that of the sanggunian member who caused the vacancy and shall serve the
unexpired term of the vacant office. In the appointment herein mentioned, a
nomination and a certificate of membership of the appointee from the highest
official of the political party concerned are conditions sine qua non, and any
appointment without such nomination and certification shall be null and void ab
initio and shall be a ground for administrative action against the official
responsible therefore.
(c) In case or permanent vacancy is caused
by a sanggunian member who does not belong to any political party, the local
chief executive shall, upon recommendation of the sanggunian concerned, appoint
a qualified person to fill the vacancy.
(d) In case of vacancy in the representation
of the youth and the barangay in the sanggunian, said vacancy shall be filled
automatically by the official next in rank of the organization concerned. cda
SECTION
46. Temporary Vacancy in the
Office of the Local Chief Executive. — (a) When the governor, city or municipal
mayor, or punong barangay is temporarily incapacitated to perform his duties
for physical or legal reasons such as, but not limited to, leave of absence,
travel abroad, and suspension from office, the vice-governor, city or municipal
vice-mayor, or the highest ranking sangguniang barangay member shall
automatically exercise the powers and perform the duties and functions of the
local chief executive concerned, except the power to appoint, suspend, or
dismiss employees which can only be exercised if the period of temporary
incapacity exceeds thirty (30) working days.
(b) Said temporary incapacity shall terminate
upon submission to the appropriate sanggunian of a written declaration by the
local chief executive concerned that he has reported back to office. In cases
where the temporary incapacity is due to legal causes, the local chief
executive concerned shall also submit necessary documents showing that said
legal causes no longer exist. aisa dc
(c) When the incumbent local chief executive
is traveling within the country but outside his territorial jurisdiction for a
period not exceeding three (3) consecutive days, he may designate in writing
the officer-in-charge of the said office. Such authorization shall specify the
powers and functions that the local official concerned shall exercise in the
absence of the local chief executive except the power to appoint, suspend, or
dismiss employees.
(d) In the event, however, that the local
chief executive concerned fails or refuses to issue such authorization, the
vice-governor, the city or municipal vice-mayor, or the highest ranking
sangguniang barangay member, as the case may be, shall have the right to assume
the powers, duties, and functions of the said office on the fourth (4th) day of
absence of the said local chief executive, subject to the limitations provided
in subsection (c) hereof. cd i
(e) Except as provided above, the local chief
executive shall in no case authorize any local official to assume the powers,
duties, and functions of the office, other than the vice-governor, the city or
municipal vice-mayor, or the highest ranking sangguniang barangay member, as
the case may be.
SECTION
47. Approval of Leaves of
Absence. — (a) Leaves of absence of local elective officials shall be approved
as follows:
(1) Leaves of absence of the governor and the
mayor of a highly urbanized city or an independent component city shall be
approved by the President or his duly authorized representative;
(2) Leaves of absence of vice-governor or a
city or municipal vice-mayor shall be approved by the local chief executive
concerned: Provided, That the leaves of absence of the members of the
sanggunian and its employees shall be approved by the vice-governor or city or
municipal vice-mayor concerned; cdtai
(3) Leaves of absence of the component city
or municipal mayor shall be approved by the governor; and
(4) Leaves of absence of a punong barangay
shall be approved by the city or municipal mayor: Provided, That leaves of
absence of sangguniang barangay members shall be approved by the punong
barangay.
(b) Whenever the application for leave of
absence hereinabove specified is not acted upon within five (5) working days
after receipt thereof, the application for leave of absence shall be deemed
approved.
CHAPTER
III
Local
Legislation
SECTION
48. Local Legislative Power. —
Local legislative power shall be exercised by the sangguniang panlalawigan for
the province; the sangguniang panlungsod for the city; the sangguniang bayan
for the municipality; and the sangguniang barangay for the barangay. cdtai
SECTION
49. Presiding Officer. — (a)
The vice-governor shall be the presiding officer of the sangguniang
panlalawigan; the city vice-mayor, of the sangguniang panlungsod; the municipal
vice-mayor, of the sangguniang bayan; and the punong barangay, of the
sangguniang barangay. The presiding officer shall vote only to break a tie.
(b) In the event of the inability of the regular
presiding officer to preside at a sanggunian session, the members present and
constituting a quorum shall elect from among themselves a temporary presiding
officer. He shall certify within ten (10) days from the passage of ordinances
enacted and resolutions adopted by the sanggunian in the session over which he
temporarily presided. cda
SECTION
50. Internal Rules of
Procedure. — (a) On the first regular session following the election of its
members and within ninety (90) days thereafter, the sanggunian concerned shall
adopt or update its existing rules of procedure.
(b) The rules of procedure shall provided for
the following:
(1) The organization of the sanggunian and
the election of its officers as well as the creation of standing committees which
shall include, but shall not be limited to, the committees on appropriations,
women and family, human rights, youth and sports development, environmental
protection, and cooperatives; the general jurisdiction of each committee; and
the election of the chairman and members of each committee;
(2) The order and calendar of business for
each session; cdtai
(3) The legislative process;
(4) The parliamentary procedures which
include the conduct of members during sessions;
(5) The discipline of members for disorderly
behavior and absences without justifiable cause for four (4) consecutive
sessions, for which they may be censured, reprimanded, or excluded from the
session, suspended for not more than sixty (60) days, or expelled: Provided,
That the penalty of suspension or expulsion shall require the concurrence of at
least two-thirds (2/3) vote of all the sanggunian members: Provided, further,
That a member convicted by final judgment to imprisonment of at least one (1)
year for any crime involving moral turpitude shall be automatically expelled
from the sanggunian; and cdasia
(6) Such other rules as the sanggunian may
adopt.
SECTION
51. Full Disclosure of
Financial and Business Interests of Sanggunian Members. — (a) Every sanggunian
member shall, upon assumption to office, make a full disclosure of his business
and financial interests, or professional relationship or any relation by
affinity or consanguinity within the fourth civil degree, which he may have
with any person, firm, or entity affected by any ordinance or resolution under
consideration by the sanggunian of which he is a member, which relationship may
result in conflict of interest. Such relationship shall include:
(1) Ownership of stock or capital, or
investment, in the entity or firm to which the ordinance or resolution may
apply; and
(2) Contracts or agreements with any person
or entity which the ordinance or resolution under consideration may affect.
In
the absence of a specific constitutional or statutory provision applicable to
this situation, "conflict of interest" refers in general to one where
it may be reasonably deduced that a member of a sanggunian may not act in the
public interest due to some private, pecuniary, or other personal
considerations that may tend to affect his judgment to the prejudice of the
service or the public.
(b) The disclosure required under this Act
shall be made in writing and submitted to the secretary of the sanggunian or
the secretary of the committee of which he is a member. The disclosure shall,
in all cases, form part of the record of the proceedings and shall be made in
the following manner: cd
(1) Disclosure shall be made before the
member participates in the deliberations on the ordinance or resolution under
consideration: Provided, That, if the member did not participate during the
deliberations, the disclosure shall be made before voting on the ordinance or
resolution on second and third readings; and
(2) Disclosure shall be made when a member
takes a position or makes a privilege speech on a matter that may affect the
business interest, financial connection, or professional relationship described
herein.
SECTION
52. Sessions. — (a) On the
first day of the session immediately following the election of its members, the
sanggunian shall, by resolution, fix the day, time, and place of its regular
sessions. The minimum numbers of regular sessions shall be once a week for the
sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bayan, and
twice a month for the sangguniang barangay.
(b) When public interest so demands, special
sessions may be called by the local chief executive or by a majority of the
members of the sanggunian.
(c) All sanggunian sessions shall be open to
the public unless a closed-door session is ordered by an affirmative vote of a
majority of the members present, there being a quorum, in the public interest
or for reasons of security, decency, or morality. No two (2) sessions, regular
or special, may be held in a single day.
(d) In the case of special sessions of the
sanggunian, a written notice to the members shall be served personally at the
member's usual place of residence at least twenty-four (24) hours before the
special session is held.
Unless
otherwise concurred in by two-thirds (2/3) vote of the sanggunian members
present, there being a quorum, no other matters may be considered at a special
session except those stated in the notice.
(e) Each sanggunian shall keep a journal and
record of its proceedings which may be published upon resolution of the
sanggunian concerned. cd
SECTION
53. Quorum. — (a) A majority of
all the members of the sanggunian who have been elected and qualified shall
constitute a quorum to transact official business. Should a question of quorum
be raised during a session, the presiding officer shall immediately proceed to
call the roll of the members and thereafter announce the results.
(b) Where there is no quorum, the presiding
officer may declare a recess until such time as a quorum is constituted, or a
majority of the members present may adjourn from day to day and may compel the
immediate attendance of any member absent without justifiable cause by
designating a member of the sanggunian to be assisted by a member or members of
the police force assigned in the territorial jurisdiction of the local
government unit concerned, to arrest the absent member and present him at the
session. aisa dc
(c) If there is still no quorum despite the
enforcement of the immediately preceding subsection, no business shall be
transacted. The presiding officer, upon proper motion duly approved by the
members present, shall then declare the session adjourned for lack of quorum.
SECTION
54. Approval of Ordinances. —
(a) Every ordinance enacted by the sangguniang panlalawigan, sangguniang
panlungsod, or sangguniang bayan shall be presented to the provincial governor
or city or municipal mayor, as the case may be. If the local chief executive
concerned approves the same, he shall affix his signature on each and every
page thereof; otherwise, he shall veto it and return the same with his
objections to the sanggunian, which may proceed to reconsider the same. The
sanggunian concerned may override the veto of the local chief executive by
two-thirds (2/3) vote of all its members, thereby making the ordinance or
resolution effective for all legal intents and purposes.
(b) The veto shall be communicated by the
local chief executive concerned to the sanggunian within fifteen (15) days in
the case of a province, and ten (10) days in the case of a city or a
municipality; otherwise, the ordinance shall be deemed approved as if he had
signed it.
(c) Ordinances enacted by the sangguniang
barangay shall, upon approval by the majority of all its members, be signed by
the punong barangay.
SECTION
55. Veto Power of the Local
Chief Executive. — (a) The local chief executive may veto any ordinance of the
sanggunian panlalawigan, sangguniang panlungsod, or sanggunian bayan on the
ground that it is ultra vires or prejudicial to the public welfare, stating his
reasons therefor in writing.
(b) The local chief executive, except the
punong barangay, shall have the power to veto any particular item or items of
an appropriations ordinance, an ordinance or resolution adopting a local
development plan and public investment program, or an ordinance directing the
payment of money or creating liability. In such a case, the veto shall not
affect the item or items which are not objected to. The vetoed item or items
shall not take effect unless the sanggunian overrides the veto in the manner
herein provided; otherwise, the item or items in the appropriations ordinance
of the previous year corresponding to those vetoed, if any, shall be deemed
reenacted. cd
(c) The local chief executive may veto an
ordinance or resolution only once. The sanggunian may override the veto of the
local chief executive concerned by two-thirds (2/3) vote of all its members,
thereby making the ordinance effective even without the approval of the local
chief executive concerned.
SECTION
56. Review of
(b) Within thirty (30) days after the receipt
of copies of such ordinances and resolutions, the sangguniang panlalawigan
shall examine the documents or transmit them to the provincial attorney, or if
there be none, to the provincial prosecutor for prompt examination. The
provincial attorney or provincial prosecutor shall, within a period of ten (10)
days from receipt of the documents, inform the sangguniang panlalawigan in
writing of his comments or recommendations, which may be considered by the
sangguniang panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds
that such an ordinance or resolution is beyond the power conferred upon the
sangguniang panlungsod or sangguniang bayan concerned, it shall declare such
ordinance or resolution invalid in whole or in part. The sangguniang
panlalawigan shall enter its action in the minutes and shall advise the
corresponding city or municipal authorities of the action it has taken. aisa dc
(d) If no action has been taken by the
sangguniang panlalawigan within thirty (30) days after submission of such an
ordinance or resolution, the same shall be presumed consistent with law and
therefore valid.
SECTION
57. Review of Barangay
Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. — (a) Within ten
(10) days after its enactment, the sangguniang barangay shall furnish copies of
all barangay ordinances to the sangguniang panlungsod or sangguniang bayan
concerned for review as to whether the ordinance is consistent with law and
city or municipal ordinances.
(b) If the sangguniang panlungsod or
sangguniang bayan, as the case may be, fails to take action on barangay
ordinances within thirty (30) days from receipt thereof, the same shall be
deemed approved. casia
(c) If the sangguniang panlungsod or
sangguniang bayan, as the case may be, finds the barangay ordinances
inconsistent with law or city or municipal ordinances, the sanggunian concerned
shall, within thirty (30) days from receipt thereof, return the same with its
comments and recommendations to the sangguniang barangay concerned for
adjustment, amendment, or modification; in which case, the effectivity of the
barangay ordinance is suspended until such time as the revision called for is
effected.
SECTION
58. Enforcement of Disapproved
Ordinances or Resolutions. — Any attempt to enforce any ordinance or any
resolution approving the local development plan and public investment program,
after the disapproval thereof, shall be sufficient ground for the suspension or
dismissal of the official or employee concerned.
SECTION
59. Effectivity of Ordinances
or Resolutions. — (a) Unless otherwise stated in the ordinance or the
resolution approving the local development plan and public investment program,
the same shall take effect after ten (10) days from the date a copy thereof is
posted in a bulletin board at the entrance of the provincial capitol or city,
municipal, or barangay hall, as the case may be, and in at least two (2) other
conspicuous places in the local government unit concerned. cd
(b) The secretary to the sanggunian concerned
shall cause the posting of an ordinance or resolution in the bulletin board at
the entrance of the provincial capitol and the city, municipal, or barangay
hall in at least two (2) conspicuous places in the local government unit
concerned not later than five (5) days after approval thereof.
The
text of the ordinance or resolution shall be disseminated and posted in
Filipino or English and in the language understood by the majority of the
people in the local government unit concerned, and the secretary to the
sanggunian shall record such fact in a book kept for the purpose, stating the
dates of approval and posting.
(c) The gist of all ordinances with penal
sanctions shall be published in a newspaper of general circulation within the
province where the local legislative body concerned belongs. In the absence of
any newspaper of general circulation within the province, posting of such
ordinances shall be made in all municipalities and cities of the province where
the sanggunian of origin is situated.
cda
(d) In the case of highly urbanized and
independent component cities, the main features of the ordinance or resolution
duly enacted or adopted shall, in addition to being posted, be published once
in a local newspaper of general circulation within the city: Provided, That in
the absence thereof the ordinance or resolution shall be published in any
newspaper of general circulation.
CHAPTER
IV
Disciplinary
Actions
SECTION
60. Grounds for Disciplinary
Actions. — An elective local official may be disciplined, suspended, or removed
from office on any of the following grounds:
(a) Disloyalty to the Republic of the
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in
office, gross negligence, or dereliction of duty;
(d) Commission of any offense involving moral
turpitude or an offense punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15)
consecutive working days, except in the case of members of the sangguniang
panlalawigan, sangguniang panlungsod, sangguniang bayan, and sangguniang
barangay; cdtai
(g) Application for, or acquisition of,
foreign citizenship or residence or the status of an immigrant of another
country; and
(h) Such other grounds as may be provided in
this Code and other laws.
An
elective local official may be removed from office on the grounds enumerated
above by order of the proper court.
SECTION
61. Form and Filing of
Administrative Complaints. — A verified complaint against any erring local
elective official shall be prepared as follows:
(a) A complaint against any elective official
of a province, a highly urbanized city, an independent component city or
component city shall be filed before the Office of the President; cd
(b) A complaint against any elective official
of a municipality shall be filed before the sangguniang panlalawigan whose
decision may be appealed to the Office of the President; and
(c) A complaint against any elective
barangay official shall be filed before the sangguniang panlungsod or
sangguniang bayan concerned whose decision shall be final and executory.
SECTION
62. Notice of hearing. — (a)
Within seven (7) days after the administrative complaint is filed, the Office
of the President or the sanggunian concerned, as the case may be, shall require
the respondent to submit his verified answer within fifteen (15) days from
receipt thereof, and commence the investigation of the case within ten (10)
days after receipt of such answer of the respondent.
(b) When the respondent is an elective
official of a province or highly urbanized city, such hearing and investigation
shall be conducted in the place where he renders or holds office. For all other
local elective officials, the venue shall be the place where the sanggunian
concerned is located. cda
(c) However, no investigation shall be held
within ninety (90) days immediately prior to any local election, and no
preventive suspension shall be imposed within the said period. If preventive
suspension has been imposed prior to the 90-day period immediately preceding
local election, it shall be deemed automatically lifted upon the start of
aforesaid period.
SECTION
63. Preventive Suspension. —
(a) Preventive suspension may be imposed:
cdt
(1) By the President, if the respondent is an
elective official of a province, a highly urbanized or an independent component
city;
(2) By the governor, if the respondent is an
elective official of a component city or municipality; or
(3) By the mayor, if the respondent is an
elective official of the barangay.
(b) Preventive suspension may be imposed at
any time after the issues are joined, when the evidence of guilt is strong, and
given the gravity of the offense, there is great probability that the
continuance in office of the respondent could influence the witnesses or pose a
threat to the safety and integrity of the records and other evidence: Provided,
That, any single preventive suspension of local elective officials shall not
extend beyond sixty (60) days: Provided, further, That in the event that
several administrative cases are filed against an elective official, he cannot
be preventively suspended for more than ninety (90) days within a single year
on the same ground or grounds existing and known at the time of the first
suspension. cdtai
(c) Upon expiration of the preventive
suspension, the suspended elective official shall be deemed reinstated in
office without prejudice to the continuation of the proceedings against him,
which shall be terminated within one hundred twenty (120) days from the time he
was formally notified of the case against him. However, if the delay in the
proceedings of the case is due to his fault, neglect, or request, other than
the appeal duly filed, the duration of such delay shall not be counted in
computing the time of termination of the case.
(d) Any abuse of the exercise of the power of
preventive suspension shall be penalized as abuse of authority. cd i
SECTION
64. Salary of Respondent
Pending Suspension. — The respondent official preventively suspended from
office shall receive no salary or compensation during such suspension; but upon
subsequent exoneration and reinstatement, he shall be paid full salary or
compensation including such emoluments accruing during such suspension.
SECTION
65. Rights of Respondent. — The
respondent shall be accorded full opportunity to appear and defend himself in
person or by counsel, to confront and cross-examine the witnesses against him,
and to require the attendance of witnesses and the production of documentary
process of subpoena or subpoena duces tecum.
SECTION
66. Form and Notice of
Decision. — (a) The investigation of the case shall be terminated within ninety
(90) days from the start thereof. Within thirty (30) days after the end of the
investigation, the Office of the President or the sanggunian concerned shall
render a decision in writing stating clearly and distinctly the facts and the
reasons for such decision. Copies of said decision shall immediately be
furnished the respondent and all interested parties.
(b) The penalty of suspension shall not
exceed the unexpired term of the respondent or a period of six (6) months for
every administrative offense, nor shall said penalty be a bar to the candidacy
of the respondent so suspended as long as he meets the qualifications required
for the office. casia
(c) The penalty of removal from office as a
result of an administrative investigation shall be considered a bar to the
candidacy of the respondent for any elective position.
SECTION
67. Administrative Appeals. —
Decisions in administrative cases may, within thirty (30) days from receipt
thereof, be appealed to the following:
(a) The sangguniang panlalawigan, in the case
of decisions of the sangguniang panlungsod of component cities and the
sangguniang bayan; and
(b) The Office of the President, in the case
of decisions of the sangguniang panlalawigan and the sangguniang panlungsod of
highly urbanized cities and independent component cities.
Decisions
of the Office of the President shall be final and executory.
SECTION
68. Execution Pending Appeal. —
An appeal shall not prevent a decision from becoming final or executory. The
respondent shall be considered as having been placed under preventive
suspension during the pendency of an appeal in the event he wins such appeal.
In the event the appeal results in an exoneration, he shall be paid his salary
and such other emoluments during the pendency of the appeal.
CHAPTER
V
Recall
SECTION
69. By Whom Exercised. — The
power of recall for loss of confidence shall be exercised by the registered
voters of a local government unit to which the local elective official subject
to such recall belongs. cdt
SECTION
70. Initiation of the Recall
Process. — (a) Recall may be initiated by a preparatory recall assembly or by
the registered voters of the local government unit to which the local elective
official subject to such recall belongs.
(b) There shall be a preparatory recall
assembly in every province, city, district, and municipality which shall be
composed of the following:
(1) Provincial level. — All mayors,
vice-mayors, and sanggunian members of the municipalities and component cities;
(2) City level. — All punong barangay and
sanggunian barangay members in the city;
(3) Legislative District level. — In case
where sangguniang panlalawigan members are elected by district, all elective
municipal officials in the district; and in cases where sangguniang panlungsod
members are elected by district, all elective barangay officials in the
district; and cda
(4) Municipal level. — All punong barangay
and sangguniang barangay members in the municipality.
(c) A majority of all the preparatory recall
assembly members may convene in session in a public place and initiate a recall
proceedings against any elective official in the local government unit
concerned. Recall of provincial, city, or municipal officials shall be validly
initiated through a resolution adopted by a majority of all the members of the
preparatory recall assembly concerned during its session called for the
purpose.
(d) Recall of any elective provincial, city,
municipal, or barangay official may also be validly initiated upon petition of
at least twenty-five percent (25%) of the total number of registered voters in
the local government unit concerned during the election in which the local
official sought to be recalled was elected.
casia
(1) A written petition for recall duly signed
before the election registrar or his representative, and in the presence of a
representative of the petitioner and a representative of the official sought to
be recalled and, and in a public place in the province, city, municipality, or
barangay, as the case may be, shall be filed with the COMELEC through its
office in the local government unit concerned. The COMELEC or its duly
authorized representative shall cause the publication of the petition in a
public and conspicuous place for a period of not less than ten (10) days nor
more than twenty (20) days, for the purpose of verifying the authenticity and
genuineness of the petition and the required percentage of voters.
(2) Upon the lapse of the aforesaid period,
the COMELEC or its duly authorized representative shall announce the acceptance
of candidates to the position and thereafter prepare the list of candidates
which shall include the name of the official sought to be recalled. cdt
SECTION
71. Election on Recall. — Upon
the filing of a valid resolution or petition for recall with the appropriate
local office of the COMELEC, the Commission or its duly authorized
representative shall set the date of the election on recall, which shall not be
later than thirty (30) days after the filing of the resolution or petition for
recall in the case of the barangay, city, or municipal officials. and
forty-five (45) days in the case of provincial officials. The official or
officials sought to be recalled shall automatically be considered as duly
registered candidate or candidates to the pertinent positions and, like other
candidates, shall be entitled to be voted upon.
SECTION
72. Effectivity of Recall. —
The recall of an elective local official shall be effective only upon the
election and proclamation of a successor in the person of the candidate
receiving the highest number of votes cast during the election on recall.
Should the official sought to be recalled receive the highest number of votes,
confidence in him is thereby affirmed, and he shall continue in office. IHaSED
SECTION
73. Prohibition from
Resignation. — The elective local official sought to be recalled shall not be
allowed to resign while the recall process is in progress.
SECTION
74. Limitations on Recall. —
(a) Any elective local official may be the subject of a recall election only
once during his term of office for loss of confidence.
(b) No recall shall take place within one (1)
year from the date of the official's assumption to office or one (1) year
immediately preceding a regular local election. cdasia
SECTION
75. Expenses Incident to Recall
Elections. — All expenses incident to recall elections shall be borne by the
COMELEC. For this purpose, there shall be included in the annual General
Appropriations Act a contingency fund at the disposal of the COMELEC for the
conduct of recall elections.
TITLE
III.
Human
Resources and Development
SECTION
76. Organizational Structure
and Staffing Pattern. — Every local government unit shall design and implement
its own organizational structure and staffing pattern taking into consideration
its service requirements and financial capability, subject to the minimum
standards and guidelines prescribed by the Civil Service Commission. aisa dc
SECTION
77. Responsibility for Human
Resources and Development. — The chief executive of every local government unit
shall be responsible for human resources and development in his unit and shall
take all personnel actions in accordance with the Constitutional provisions on
civil service, pertinent laws, and rules and regulations thereon, including
such policies, guidelines and standards as the Civil Service Commission may
establish: Provided, That the local chief executive may employ emergency or
casual employees or laborers paid on a daily wage or piecework basis and hired
through job orders for local projects authorized by the sanggunian concerned,
without need of approval or attestation by the Civil Service Commission:
Provided, further, That the period of employment of emergency or casual
laborers as provided in this Section shall not exceed six (6) months.
The
Joint Commission on Local Government Personnel Administration organized
pursuant to Presidential Decree Numbered Eleven Hundred thirty-six (P.D. No.
1136) is hereby abolished and its personnel, records, equipment and other
assets transferred to the appropriate office in the Civil Service Commission.
SECTION
78. Civil Service Law, Rules
and Regulations, and Other Related Issuances. — All matters pertinent to human
resources and development in local government units shall be governed by the
civil service law and such rules and regulations and other issuances
promulgated pursuant thereto, unless otherwise specified in this Code. cdasia
SECTION
79. Limitation to Appointments.
— No person shall be appointed in the career service of the local government if
he is related within the fourth civil degree of consanguinity or affinity to
the appointing or recommending authority.
SECTION
80. Public Notice of Vacancy;
Personnel Selection Board. — (a) Whenever a local executive decides to fill a
vacant career position, there shall be posted notices of the vacancy in at
least three (3) conspicuous public places in the local government unit
concerned for a period of not less than fifteen (15) days.
(b) There shall be established in every
province, city or municipality a personnel selection board to assist the local
chief executive in the judicious and objective selection or personnel for
employment as well as for promotion, and in the formulation of such policies as
would contribute to employee welfare.
cdasia
(c) The personnel selection board shall be
headed by the local chief executive, and its members shall be determined by
resolution of the sanggunian concerned. A representative of the Civil Service
Commission, if any, and the personnel officer of the local government unit
concerned shall be ex officio members of the board.
SECTION
81. Compensation of Local
Officials and Employees. — The compensation of local officials and personnel
shall be determined by the sanggunian concerned: Provided, That the increase in
compensation of elective local officials shall take effect only after the terms
of office of those approving such increase shall have expired: Provided,
further, That the increase in compensation of the appointive officials and
employees shall take effect as provided in the ordinance authorizing such
increase: Provided, however, That said increases shall not exceed the
limitations on budgetary allocations for personal services provided under Title
Five, Book II of this Code: Provided, finally, That such compensation may be
based upon the pertinent provisions of Republic Act Numbered Sixty-seven
fifty-eight (R.A. No 6758), otherwise known as the "Compensation and
Position Classification Act of 1989".
The
punong barangay, the sangguniang barangay member, the sangguniang kabataan
chairman, the barangay treasurer, and the barangay secretary shall be entitled
to such compensation, allowances, emoluments, and such other privileges as
provided under Title One Book III of this Code.
Elective
local officials shall be entitled to the same leave privileges as those enjoyed
by appointive local officials, including the cumulation and commutation
thereof.
SECTION
82. Resignation of Elective
Local Officials. — (a) Resignations by elective local officials shall be deemed
effective only upon acceptance by the following authorities:
(1) The President, in the case of governors,
vice-governors, and mayors and vice-mayors of highly urbanized cities and
independent component cities; casia
(2) The governor, in the case of municipal
mayors, municipal vice-mayors, city mayors and city vice-mayors of component
cities;
(3) The sanggunian concerned, in the case of
sanggunian members; and
(4) The city or municipal mayor, in the case
of barangay officials.
(b) Copies of the resignation letters of
elective local officials, together with the action taken by the aforesaid
authorities, shall be furnished the Department of the Interior and Local
Government.
(c) The resignation shall be deemed accepted
if not acted upon by the authority concerned within fifteen (15) days from
receipt thereof. cdasia
(d) Irrevocable resignations by sanggunian
members shall be deemed accepted upon presentation before an open session of
the sanggunian concerned and duly entered in its records: Provided, however,
That this subsection does not apply to sanggunian members who are subject to
recall elections or to cases where existing laws prescribed the manner of
acting upon such resignations.
SECTION
83. Grievance Procedure. — In
every local government unit, the local chief executive shall establish a
procedure to inquire into, act upon, resolve or settle complaints and
grievances presented by local government employees.
SECTION
84. Administrative Discipline.
— Investigation and adjudication of administrative complaints against
appointive local officials and employees as well as their suspension and
removal shall be in accordance with the civil service law and rules and other
pertinent laws. The results of such administrative investigations shall be
reported to the Civil Service Commission.
SECTION
85. Preventive Suspension of
Appointive Local Officials and Employees. — (a) The local chief executives may
preventively suspend for a period not exceeding sixty (60) days and subordinate
official or employee under his authority pending investigation if the charge
against such official or employee involves dishonesty, oppression or grave
misconduct or neglect in the performance of duty, or if there is reason to
believe that the respondent is guilty of the charges which would warrant his
removal from the service.
(b) Upon expiration of the preventive
suspension, the suspended official or employee shall be automatically
reinstated in office without prejudice to the continuation of the
administrative proceedings against him until its termination. If the delay in
the proceedings of the case is due to the fault, neglect or request of the
respondent, the time of the delay shall not be counted in computing the period
of suspension herein provided. cd i
SECTION
86. Administrative
Investigation. — In any local government unit, administrative investigation may
be conducted by a person or a committee duly authorized by the local chief
executive. Said person or committee shall conduct hearings on the cases brought
against appointive local officials and employees and submit their findings and
recommendations to the local chief executive concerned within fifteen (15) days
from the conclusion of the hearings. The administrative cases herein mentioned
shall be decided within ninety (90) days from the time the respondent is
formally notified of the charges.
SECTION
87. Disciplinary Jurisdiction.
— Except as otherwise provided by law, the local chief executive may impose the
penalty of removal from service, demotion in rank, suspension for not more than
one (1) year without pay, fine in an amount not exceeding six (6) months
salary, or reprimand and otherwise discipline subordinate officials and
employees under his jurisdiction. If the penalty imposed is suspension without
pay for not more than thirty (30) days, his decision shall be final. If the
penalty imposed is heavier than suspension of thirty (30) days, the decision
shall be appealable to the Civil Service Commission, which shall decide the
appeal within thirty (30) days from receipt thereof. acd
SECTION
88. Execution Pending Appeal. —
An appeal shall not prevent the execution of a decision of removal or
suspension of a respondent-appellant. In case the respondent-appellant is
exonerated, he shall be reinstated to his position with all the rights and
privileges appurtenant thereto from the time he had been deprived thereof.
SECTION
89. Prohibited Business and
Pecuniary Interest. — (a) It shall be unlawful for any local government
official or employee, directly or indirectly, to:
(1) Engage in any business transaction with
the local government unit in which he is an official or employee or over which
he has the power of supervision, or with any of its authorized boards,
officials, agents, or attorneys, whereby money is to be paid, or property or
any other thing of value is to be transferred, directly or indirectly, out of
the resources of the local government unit to such person or firm; cda
(2) Hold such interests in any cockpit or
other games licensed by a local government unit;
(3) Purchase any real estate or other
property forfeited in favor of such local government unit for unpaid taxes or
assessment, or by virtue of a legal process at the instance of the said local
government unit;
(4) Be a surety for any person contracting or
doing business with the local government unit for which a surety is required;
and
(5) Possess or use any public property of the
local government unit for private purposes.
cda
(b) All other prohibitions governing the
conduct of national public officers relating to prohibited business and
pecuniary interest so provided for under Republic Act Numbered Sixty-seven
thirteen (R.A. No. 6713) otherwise known as the "Code of Conduct and
Ethical Standards for Public Officials and Employees" and other laws shall
also be applicable to local government officials and employees.
SECTION
90. Practice of Profession. —
(a) All governors, city and municipal mayors are prohibited from practicing
their profession or engaging in any occupation other than the exercise of their
functions as local chief executives.
(b) Sanggunian members may practice their
professions, engage in any occupation, or teach in schools except during
session hours: Provided, That sanggunian members who are also members of the
Bar shall not: aisa dc
(1) Appear as counsel before any court in any
civil case wherein a local government unit or any office, agency, or
instrumentality of the government is the adverse party;
(2) Appear as counsel in any criminal case
wherein an officer or employee of the national or local government is accused
of an offense committed in relation to his office.
(3) Collect any fee for their appearance in
administrative proceedings involving the local government unit of which he is
an official; and
(4) Use property and personnel of the
government except when the sanggunian member concerned is defending the
interest of the government.
(c) Doctors of medicine may practice their
profession even during official hours of work only on occasions of emergency:
Provided, That the officials concerned do not derive monetary compensation
therefrom. aisa dc
SECTION
91. Statement of Assets and
Liabilities. — (a) Officials and employees of local government units shall file
sworn statements of assets, liabilities and net worth, lists of relatives
within the fourth civil degree of consanguinity or affinity in government
service, financial and business interests, and personnel data sheets as
required by law.
SECTION
92. Oath of Office. — (a) All
elective and appointive local officials and employees shall, upon assumption to
office, subscribe to an oath or affirmation of office in the prescribed form.
The oath or affirmation of office shall be filed with the office of the local
chief executive concerned. A copy of the oath or affirmation of office of all
elective and appointive local officials and employees shall be preserved in the
individual personal records file under the custody of the personnel office,
division, or section of the local government unit concerned. aisa dc
SECTION
93. Partisan Political
Activity. — No local official or employee in the career civil service shall
engage directly or indirectly in any partisan political activity or take part
in any election, initiative, referendum, plebiscite, or recall, except to vote,
nor shall he use his official authority or influence to cause the performance
of any political activity by any person or body. He may, however, express his
views on current issues, or mention the names of certain candidates for public
office whom he supports. Elective local officials may take part in partisan
political and electoral activities, but it shall be unlawful for them to
solicit contributions from their subordinates or subject these subordinates to
any of the prohibited acts under the Omnibus Election Code.
SECTION
94. Appointment of Elective and
Appointive Local Officials; Candidates Who Lost in an Election. — (a) No
elective or appointive local official shall be eligible for appointment or
designation in any capacity to any public office or position during his
tenure. cdt
Unless
otherwise allowed by law or by the primary functions of his position, no
elective or appointive local official shall hold any other office or employment
in the government or any subdivision, agency or instrumentality thereof,
including government-owned or controlled corporations or their subsidiaries.
SECTION
95. Additional or Double
Compensation. — No elective or appointive local official or employee shall
receive additional, double, or indirect compensation, unless specifically
authorized by law, nor accept without the consent of Congress, any present,
emoluments, office, or title of any kind from any foreign government. Pensions
or gratuities shall not be considered as additional, double, or indirect
compensation.
SECTION
96. Permission to Leave
Station. — (a) Provincial, city, municipal, and barangay appointive officials
going on official travel shall apply and secure written permission from their
respective local chief executives before departure. The application shall
specify the reasons for such travel, and the permission shall be given or
withheld based on considerations of public interest, financial capability of
the local government unit concerned and urgency of the travel. cd i
Should
the local chief executive concerned fall to act upon such application within
four (4) working days from receipt thereof, it shall be deemed approved.
(b) Mayors of component cities and
municipalities shall secure the permission of the governor concerned for any
travel outside the province.
(c) Local government officials traveling
abroad shall notify their respective sanggunian: Provided, That when the period
of travel extends to more than three (3) months, during periods of emergency or
crisis or when the travel involves the use of public funds, permission from the
Office of the President shall be secured.
(d) Field officers of national agencies or
offices assigned in provinces, cities, and municipalities shall not leave their
official stations without giving prior written notice to the local chief
executive concerned. Such notice shall state the duration of travel and the
name of the officer whom he shall designate to act for and in his behalf during
his absence. cd
SECTION
97. Annual Report. — On or
before March 31 of each year, every local chief executive shall submit an
annual report to the sanggunian concerned on the socio-economic, political and
peace and order conditions, and other matters concerning the local government
unit, which shall cover the immediately preceding calendar year. A copy of the
report shall be forwarded to the Department of the Interior and Local
Government. Component cities and municipalities shall likewise provide the
sangguniang panlalawigan copies of their respective annual reports.
TITLE
IV.
Local
School Boards
SECTION
98. Creation, Composition, and
Compensation. — (a) There shall be established in every province, city, or
municipality a provincial, city, or municipal school board, respectively. cdt
(b) The composition of local school boards
shall be as follows:
(1) The provincial school board shall be
composed of the governor and the division superintendent of schools as
co-chairman; the chairman of the education committee of the sangguniang
panlalawigan, the provincial treasurer, the representative of the
"pederasyon ng mga sangguniang kabataan" in the sangguniang
panlalawigan, the duly elected president of the provincial federation of
parents-teachers associations, the duly elected representative of the teachers'
organizations in the province, and the duly elected representative of the
non-academic personnel of public schools in the province, as members; cd i
(2) The city school board shall be composed
of the city mayor and the city superintendent of schools as co-chairmen; the
chairman of the education committee of the sangguniang panlungsod, the city
treasurer, the representative of the "pederasyon ng mga sangguniang
kabataan" in the sangguniang panlungsod, the duly elected president of the
city federation of parents- teachers associations, the duly elected
representative of the teachers' organizations in the city, and the duly elected
representative of the non-academic personnel of public schools in the city, as
members; and casia
(3) The municipal school board shall be
composed of the municipal mayor and the district supervisor of schools as
co-chairmen; the chairman of the education committee of the sangguniang bayan,
the municipal treasurer, the representative of the "pederasyon ng mga
sangguniang kabataan" in the sangguniang bayan, the duly elected president
of the municipal federation of parent-teacher associations, the duly elected
representative of the teachers' organizations in the municipality, and the duly
elected representative of the non-academic personnel of public schools in the
municipality, as members.
(c) In the event that a province or city has
two (2) or more school superintendents, and in the event that a municipality has
two (2) or more district supervisors, the co-chairman of the local school board
shall be determined as follows:
(1) The Department of Education, Culture and
Sports shall designate the co-chairman for the provincial and city school
boards; and cda
(2) The division superintendent of schools
shall designate the district supervisor who shall serve as co-chairman of the
municipal school board.
(d) The performance of the duties and
responsibilities of the abovementioned officials in their respective local school
boards shall not be delegated.
SECTION
99. Functions of Local School
Boards. — The provincial, city or municipal school board shall:
(a) Determine, in accordance with the
criteria set by the Department of Education, Culture and Sports, the annual supplementary
budgetary needs for the operation and maintenance of public schools within the
province, city, or municipality, as the case may be, and the supplementary
local cost of meeting such as needs, which shall be reflected in the form of an
annual school board budget corresponding to its share of the proceeds of the
special levy on real property constituting the Special Education Fund and such
other sources of revenue as this Code and other laws or ordinances may provide; cd i
(b) Authorize the provincial, city or
municipal treasurer, as the case may be, to disburse funds from the Special
Education Fund pursuant to the budget prepared and in accordance with existing
rules and regulations;
(c) Serve as an advisory committee to the
sanggunian concerned on educational matters such as, but not limited to, the
necessity for and the uses of local appropriations for educational purposes;
and
(d) Recommend changes in the names of public
schools within the territorial jurisdiction of the local government unit for
enactment by the sanggunian concerned.
The
Department of Education, Culture and Sports shall consult the local school
board on the appointment of division superintendents, district supervisors,
school principals, and other school officials.
cdasia
SECTION
100. Meetings and Quorum; Budget.
— (a) The local school board shall meet at least once a month or as often as
may be necessary.
(b) Any of the co-chairmen may call a
meeting. A majority of all its members shall constitute a quorum. However, when
both co-chairmen are present in a meeting, the local chief executive concerned,
as a matter of protocol, shall be given preference to preside over the meeting.
The division superintendent, city superintendent or district supervisor, as the
case may be, shall prepare the budget of the school board concerned. Such
budget shall be supported by programs, projects, and activities of the school
board for the ensuing fiscal year. The affirmative vote of the majority of all
the members shall be necessary to approve the budget.
(c) The annual school board budget shall
give priority to the following:
(1) Construction, repair, and maintenance of
school buildings and other facilities of public elementary and secondary
schools;
(2) Establishment and maintenance of extension
classes where necessary; and cdasia
(3) Sports activities at the division,
district, municipal, and barangay levels.
SECTION
101. Compensation and
Remuneration. — The co-chairmen and members of the provincial, city or
municipal school board shall perform their duties as such without compensation
or remuneration. Members thereof who are not government officials or employees
shall be entitled to necessary traveling expenses and allowances chargeable
against the funds of the local school board concerned, subject to existing
accounting and auditing rules and regulations.
TITLE
V.
Local
Health Boards
SECTION
102. Creation and Composition. —
(a) There shall be established a local health board in every province, city, or
municipality. The composition of the local health boards shall be as
follows: acd
(1) The provincial health board shall be
headed by the governor as chairman, the provincial health officer as
vice-chairman, and the chairman of the committee on health of the sangguniang
panlalawigan, a representative from the private sector or non-governmental
organizations involved in health services, and a representative of the
Department of Health in the province, as members;
(2) The city health board shall be headed by
the city mayor as chairman, the city health officer as vice-chairman, and the
chairman of the committee on health of the sangguniang panlungsod, a
representative from the private sector or non-governmental organizations
involved in health services, and a representative of the Department of Health
in the city, as members; and acd
(3) The municipal health board shall be
headed by the municipal mayor as chairman, the municipal health officer as
vice-chairman, and the chairman of the committee on health of the sangguniang
bayan, a representative from the private sector or non-governmental
organizations involved in health services, and a representative of the
Department of Health in the municipality, as members.
(b) The functions of the local health board
shall be:
(1) To propose to the sanggunian concerned,
in accordance with standards and criteria set by the Department of Health,
annual budgetary allocations for the operation and maintenance of health
facilities and services within the municipality, city or province, as the case
may be;
(2) To serve as an advisory committee to the
sanggunian concerned on health matters such as, but not limited to, the
necessity for, and application of local appropriations for public health
purposes; and cdasia
(3) Consistent with the technical and administrative
standards of the Department of Health, create committees which shall advise
local health agencies on matters such as, but not limited to, personnel
selection and promotion, bids and awards, grievance and complaints, personnel
discipline, budget review, operations review and similar functions.
SECTION
103. Meetings and Quorum. — (a)
The board shall meet at least once a month or as may be necessary.
(b) A majority of the members of the board
shall constitute a quorum, but the chairman or the vice- chairman must be
present during meetings where budgetary proposals are being prepared or
considered. The affirmative vote of all the majority of the members shall be
necessary to approve such proposals.
SECTION
104. Compensation and
Remuneration. — The chairman, vice-chairman, and members of the provincial,
city or municipal health board shall perform their duties as such without
compensation or remuneration. Members thereof who are not government officials
or employees shall be entitled to necessary traveling expenses and allowances
chargeable against the funds of the local health board concerned, subject to
existing accounting and auditing rules and regulations. cdtai
SECTION
105. Direct National Supervision
and Control by the Secretary of Health. — In cases of epidemics, pestilence,
and other widespread public health dangers, the Secretary of Health may, upon
the direction of the President and in consultation with the local government
unit concerned, temporarily assume direct supervision and control over health
operations in any local government unit for the duration of the emergency, but
in no case exceeding a cumulative period of six (6) months. With the
concurrence of the government unit concerned, the period for such direct
national control and supervision may be further extended.
TITLE
VI.
Local
Development Councils
SECTION
106. Local Development Councils.
— (a) Each local government unit shall have a comprehensive multi-sectoral
development plan to be initiated by its development council and approved by its
sanggunian. For this purpose, the development council at the provincial, city,
municipal, or barangay level, shall assist the corresponding sanggunian in
setting the direction of economic and social development, and coordinating
development efforts within its territorial jurisdiction.
SECTION
107. Composition of Local
Development Councils. — The composition of the local development council shall
be as follows: cda
(1) Members of the sangguniang barangay;
(2) Representatives of non-governmental
organizations operating in the barangay who shall constitute not less than one
fourth (¼) of the members of the fully organized council;
(3) A representative of the congressman.
(b) The city or municipal development council
shall be headed by the mayor and shall be composed of the following
members: aisa dc
(1) All punong barangays in the city or
municipality;
(2) The chairman of the committee on
appropriations of the sangguniang panlungsod or sangguniang bayan concerned;
(3) The congressman or his representative;
and
(4) Representatives of non-governmental
organizations operating in the city or municipality, as the case may be, who
shall constitute not less than one-fourth (¼) of the members of the fully
organized council.
(c) The provincial development council shall
be headed by the governor and shall be composed of the following members: acd
(1) All mayors of component cities and
municipalities;
(2) The chairman of the committee on
appropriations of the sangguniang panlalawigan;
(3) The congressman or his representative;
and
(4) Representatives of non-governmental
organizations operating in the province, who shall constitute not less than
one-fourth (¼) of the members of the fully organized council.
(d) The local development councils may call
upon any local official concerned or any official of national agencies or
offices in the local government unit to assist in the formulation of their
respective development plans and public investment programs. cdt
SECTION
108. Representation of Non-governmental
Organizations. — Within a period of sixty (60) days from the start of
organization of local development councils, the non-governmental organizations
shall choose from among themselves their representatives to said councils. The
local sanggunian concerned shall accredit non-governmental organizations
subject to such criteria as may be provided by law.
SECTION
109. Functions of Local
Development Councils. — (a) The provincial, city, and municipal development
councils shall exercise the following functions:
(1) Formulate long-term, medium-term, and
annual socio-economic development plans and policies;
(2) Formulate the medium-term and annual
public investment programs;
(3) Appraise and prioritize socio-economic
development programs and projects; acd
(4) Formulate local investment incentives to
promote the inflow and direction of private investment capital;
(5) Coordinate, monitor, and evaluate the
implementation of development programs and projects; and
(6) Perform such other functions as may be
provided by law or component authority.
(b) The barangay development council shall
exercise the following functions:
(1) Mobilize people's participation in local
development efforts;
(2) Prepare barangay development plans based
on local requirements;
(3) Monitor and evaluate the implementation
of national or local programs and projects; and cd
(4) Perform such other functions as may be
provided by law or competent authority.
SECTION
110. Meetings and Quorum. — The
local development council shall meet at least once every six (6) months or as
often as may be necessary.
SECTION
111. Executive Committee. — The
local development council shall create an executive committee to represent it
and act in its behalf when it is not in session. The composition of the
executive committee shall be as follows:
(1) The executive committee of the provincial
development council shall be composed of the governor as chairman, the
representative of component city and municipal mayors to be chosen from among
themselves, the chairman of the committee on appropriations of the sangguniang
panlalawigan, the president of the provincial league of barangays, and a
representative of non-governmental organizations that are represented in the
council, as members;
(2) The executive committee of the city or
municipal development council shall be composed of the mayor as chairman, the
chairman of the committee on appropriations of the sangguniang panlalawigan,
the president of the city or municipal league of barangays, and a representative
of non-governmental organizations that are represented in the council, as
members; and aisa dc
(3) The executive committee of the barangay
development council shall be composed of the punong barangay as chairman, a
representative of the sangguniang barangay to be chosen from among its members,
and a representative of non-governmental organizations that are represented in
the council, as members.
(b) The executive committee shall exercise
the following powers and functions: cdt
(1) Ensure that the decision of the council
are faithfully carried out and implemented;
(2) Act on matters requiring immediate
attention or action by the council;
(3) Formulate policies, plans, and programs
based on the general principles laid down by the council; and
(4) Act on other matters that may be
authorized by the council.
SECTION
112. Sectoral or Functional
Committees. — The local development councils may form sectoral or functional
committees to assist them in the performance of their functions. cd i
SECTION
113. Secretariat. — There is
hereby constituted for each local development council a secretariat which shall
be responsible for providing technical support, documentation of proceedings,
preparation of reports and such other assistance as may be required in the
discharge of its functions. The local development council may avail of the
services of any non-governmental organization or educational or research
institution for this purpose.
The
secretariats of the provincial, city, and municipal development councils shall
be headed by their respective planning and development coordinators. The
secretariat of the barangay development council shall be headed by the barangay
secretary who shall be assisted by the city or municipal planning and
development coordinator concerned.
SECTION
114. Relation of Local
Development Councils to the Sanggunian and the Regional Development Council. —
(a) The policies, programs, and projects proposed by local development councils
shall be submitted to the sanggunian concerned for appropriate action. aisa dc
(b) The approved development plans of
provinces, highly-urbanized cities, and independent component cities shall be
submitted to the regional development council, which shall be integrated into
the regional development plan for submission to the National Economic and
Development Authority, in accordance with existing laws.
SECTION
115. Budget Information. — The
Department of Budget and Management shall furnish the various local development
councils information on financial resources and budgetary allocations
applicable to their respective jurisdictions to guide them in their planning
functions.
TITLE
VII.
Local
Peace and Order Council
SECTION
116. Organization. — There is
hereby established in every province, city and municipality a local peace and
order council, pursuant to Executive Order Numbered Three hundred nine (E.O.
No. 309), as amended, Series of 1988. The local peace and order councils shall
have the same composition and functions as those prescribed by said executive
order.
TITLE
VIII.
Autonomous
Special Economic Zones
SECTION
117. Establishment of Autonomous
Special Economic Zones. — The establishment by law of autonomous special
economic zones in selected areas of the country shall be subject to concurrence
by the local government units included therein.
TITLE
IX.
Other
Provisions Applicable to Local Government Units
CHAPTER
I
Settlement
of Boundary Disputes
SECTION
118. Jurisdictional
Responsibility for Settlement of Boundary Dispute. — Boundary disputes between and
among local government units shall, as much as possible, be settled amicably.
To this end:
(a) Boundary disputes involving two (2) or
more barangays in the same city or municipality shall be referred for
settlement to the sangguniang panlungsod or sangguniang bayan concerned.
(b) Boundary disputes involving two (2) or
more municipalities within the same province shall be referred for settlement
to the sangguniang panlalawigan concerned. cdt
(c) Boundary disputes involving
municipalities or component cities of different provinces shall be jointly
referred for settlement to the sanggunians of the province concerned.
(d) Boundary disputes involving a component
city or municipality on the one hand and a highly urbanized city on the other,
or two (2) or more highly urbanized cities, shall be jointly referred for
settlement to the respective sanggunians of the parties.
(e) In the event the sanggunian fails to
effect an amicable settlement within sixty (60) days from the date the dispute
was referred thereto, it shall issue a certification to that effect.
Thereafter, the dispute shall be formally tried by the sanggunian concerned
which shall decide the issue within sixty (60) days from the date of the
certification referred to above. cdasia
SECTION
119. Appeal. — Within the time
and manner prescribed by the Rules of Court, any party may elevate the decision
of the sanggunian concerned to the proper Regional Trial Court having
jurisdiction over the area in dispute. The Regional Trial Court shall decide
the appeal within one (1) year from the filing thereof. Pending final
resolution of the disputed area prior to the dispute shall be maintained and
continued for all legal purposes.
CHAPTER
II
Local
Initiative and Referendum
SECTION
120. Local Initiative Defined. —
Local initiative is the legal process whereby the registered voters of a local
government unit may directly propose, enact, or amend any ordinance. aisa dc
SECTION
121. Who May Exercise. — The
power of local initiative and referendum may be exercised by all registered
voters of the provinces, cities, municipalities, and barangays.
SECTION
122. Procedure in Local
Initiative. — (a) Not less than one thousand (1,000) registered voters in case
of provinces and cities, one hundred (100) in case of municipalities, and fifty
(50) in case of barangays, may file a petition with the sanggunian concerned
proposing the adoption, enactment, repeal, or amendment of an ordinance.
(b) If no favorable action thereon is taken
by the sanggunian concerned within thirty (30) days from its presentation, the
proponents, through their duly authorized and registered representatives, may
invoke their power of initiative, giving notice thereof to the sanggunian
concerned. aisa dc
(c) The proposition shall be numbered
serially starting from Roman numeral I. The COMELEC or its designated
representative shall extend assistance in the formulation of the proposition.
(d) Two (2) or more propositions may be
submitted in an initiative.
(e) Proponents shall have ninety (90) days in
case of provinces and cities, sixty (60) days in case of municipalities, and
thirty (30) days in case of barangays, from notice mentioned in subsection (b)
hereof to collect the required number of signatures.
(f) The petition shall be signed before the
election registrar. or his designated representatives, in the presence of a
representative of the proponent, and a representative of the sanggunian
concerned in a public place in the local government unit, as the case may be.
Stations for collecting signatures may be established in as many places as may
be warranted. cd
(g) Upon the lapse of the period herein
provided, the COMELEC, through its office in the local government unit
concerned, shall certify as to whether or not the required number of signatures
has been obtained. Failure to obtain the required number defeats the
proposition.
(h) If the required number of signatures is
obtained, the COMELEC shall then set a date for the initiative during which the
proposition shall be submitted to the registered voters in the local government
unit concerned for their approval within sixty (60) days from the date of
certification by the COMELEC, as provided in subsection (g) hereof, in case of
provinces and cities, forty-five (45) days in case of municipalities, and
thirty (30) days in case of barangays. The initiative shall then be held on the
date set, after which the results thereof shall be certified and proclaimed by
the COMELEC.
SECTION
123. Effectivity of Local
Propositions. — If the proposition is approved by a majority of the votes cast,
it shall take effect fifteen (15) days after certification by the COMELEC as if
affirmative action thereon had been made by the sanggunian and local chief
executive concerned. If it fails to obtain said number of votes, the
proposition is considered defeated. acd
SECTION
124. Limitations on Local
Initiative. — (a) The power of local initiative shall not be exercised more
than once a year.
(b) Initiative shall extend only to subjects
or matters which are within the legal powers of the sanggunian to enact.
(c) If at any time before the initiative is
held, the sanggunian concerned adopts in toto the proposition presented and the
local chief executive approves the same, the initiative shall be cancelled.
However, those against such action may, if they so desire, apply for initiative
in the manner herein provided. IcSADC
SECTION
125. Limitations upon
Sanggunians. — Any proposition or ordinance approved through the system of
initiative and referendum as herein provided shall not be repealed, modified or
amended by the sanggunian concerned within six (6) months from the date of the
approval thereof, and may be amended, modified or repealed by the sanggunian
within three (3) years thereafter by a vote of three-fourths (3/4) of all its
members: Provided, That in case of barangays, the period shall be eighteen (18)
months after the approval thereof. aisa
dc
SECTION
126. Local Referendum Defined. —
Local referendum is the legal process whereby the registered voters of the
local government units may approve, amend or reject any ordinance enacted by
the sanggunian.
The
local referendum shall be held under the control and direction of the COMELEC
within sixty (60) days in case of provinces and cities, forty-five (45) days in
case of municipalities and thirty (30) days in case of barangays.
The
COMELEC shall certify and proclaim the results of the said referendum.
SECTION
127. Authority of Courts. —
Nothing in this Chapter shall prevent or preclude the proper courts from
declaring null and void any proposition approved pursuant to this Chapter for
violation of the Constitution or want of capacity of the sanggunian concerned
to enact the said measure.
BOOK
II
Local
Taxation and Fiscal Matters
TITLE
I.
Local
Government Taxation
CHAPTER
I
General
Provisions
SECTION
128. Scope. — The provisions
herein shall govern the exercise by provinces, cities, municipalities, and
barangays of their taxing and other revenue-raising powers. cd i
SECTION
129. Power to Create Sources of
Revenue. — Each local government unit shall exercise its power to create its
own sources of revenue and to levy taxes, fees, and charges subject to the
provisions herein, consistent with the basic policy of local autonomy. Such
taxes, fees, and charges shall accrue exclusively to the local government
units.
SECTION
130. Fundamental Principles. —
The following fundamental principles shall govern the exercise of the taxing
and other revenue-raising powers of local government units:
(a) Taxation shall be uniform in each local
government unit;
(b) Taxes, fees, charges and other
impositions shall:
(1) be equitable and based as far as
practicable on the taxpayer's ability to pay;
(2) be levied and collected only for public
purposes;
(3) not be unjust, excessive, oppressive, or
confiscatory;
(4) not be contrary to law, public policy,
national economic policy, or in the restraint of trade; cd
(c) The collection of local taxes, fees,
charges and other impositions shall in no case be let to any private person;
(d) The revenue collected pursuant to the
provisions of this Code shall inure solely to the benefit of, and be subject to
the disposition by, the local government unit levying the tax, fee, charge or
other imposition unless otherwise specifically provided herein; and,
(e) Each local government unit shall, as far
as practicable, evolve a progressive system of taxation.
SECTION
131. Definition of Terms. — When
used in this Title, the term:
(a) "Agricultural Product" includes
the yield of the soil, such as corn, rice, wheat, rye, hay. coconuts,
sugarcane, tobacco, root crops, vegetables, fruits, flowers, and their
by-products; ordinary salt; all kinds of fish; poultry; and livestock and
animal products, whether in their original form or not. cda
The
phrase "whether in their original form or not" refers to the
transformation of said products by the farmer, fisherman, producer or owner
through the application of processes to preserve or otherwise to prepare said
products for market such as freezing, drying, salting, smoking, or stripping
for purposes of preserving or otherwise preparing said products for market;
(b) "Amusement" is a pleasurable
diversion and entertainment. It is synonymous to relaxation, avocation,
pastime, or fun;
(c) "Amusement Places" include
theaters, cinemas, concert halls, circuses and other places of amusement where
one seeks admission to entertain oneself by seeing or viewing the show or
performances; cdt
(d) "Business" means trade or
commercial activity regularly engaged in as a means of livelihood or with a
view to profit;
(e) "Banks and other financial
institutions" include non-bank financial intermediaries, lending
investors, finance and investment companies, pawnshops, money shops, insurance
companies, stock markets, stock brokers and dealers in securities and foreign
exchange, as defined under applicable laws, or rules and regulations
thereunder;
(f) "Capital Investment" is the
capital which a person employs in any undertaking, or which he contributes to
the capital of a partnership, corporation, or any other juridical entity or
association in a particular taxing jurisdiction;
(g) "Charges" refers to pecuniary
liability, as rents or fees against persons or property; cd
(h) "Contractor" includes persons,
natural or juridical, not subject to professional tax under Section 139 of this
Code, whose activity consists essentially of the sale of all kinds of services
for a fee, regardless of whether or not the performance of the service calls
for the exercise or use of the physical or mental faculties of such contractor
or his employees.
As
used in this Section, the term "contractor" shall include general
engineering, general building and specialty contractors as defined under
applicable laws; filling, demolition and salvage works contractors; proprietors
or operators of mine drilling apparatus; proprietors or operators of dockyards;
persons engaged in the installation of water system, and gas or electric light,
heat, or power; proprietors or operators of smelting plants, engraving,
plating, and plastic lamination establishments; proprietors or operators of
establishments for repairing, repainting, upholstering, washing or greasing of
vehicles, heavy equipment, vulcanizing, recapping and battery charging;
proprietors or operators of furniture shops and establishments for planing or
surfacing and recutting of lumber, and sawmills under contract to saw or cut
logs belonging to others; proprietors or operators of dry cleaning or dyeing
establishments, steam laundries, and laundries using washing machines;
proprietors or owners of shops for the repair of any kind of mechanical and
electrical devices, instruments, apparatus, or furniture and shoe repairing by
machine or any mechanical contrivance; proprietors or operators of
establishments or lots for parking purposes; proprietors or operators of tailor
shops, dress shops, milliners and hatters, beauty parlors, barbershops, massage
clinics, sauna, Turkish and Swedish baths, slenderizing and building salons and
similar establishments; photographic studios; funeral parlors; proprietors or
operators of hotels, motels, and lodging houses; proprietors or operators of
arrastre and stevedoring, warehousing, or forwarding establishments; master
plumbers, smiths, and house or sign painters; printers, bookbinders,
lithographers; publishers except those engaged in the publication or printing
of any newspaper, magazine, review or bulletin which appears at regular
intervals with fixed prices for subscription and sale and which is not devoted
principally to the publication and advertisements; business agents, private
detective or watchman agencies, commercial and immigration brokers, and
cinematographic film owners, lessors and distributors. cd
(i) "Corporation" includes
partnerships, no matter how created or organized, joint-stock companies, joint
accounts (cuentas en participacion), associations or insurance companies but
does not include general professional partnerships and a joint venture or
consortium formed for the purpose of undertaking construction projects or
engaging in petroleum, coal, geothermal, and other energy operations pursuant
to an operating or consortium agreement under a service contract with the
government. General professional partnership are partnerships formed by persons
for the sole purpose of exercising their common profession, no part of the
income of which is derived from engaging in any trade or business.
The
term "resident foreign" when applied to a corporation means a foreign
corporation not otherwise organized under the laws of the Philippines but
engaged in trade or business within the Philippines; cdasia
(j) "Countryside and Barangay Business
Enterprise" refers to any business entity, association, or cooperative
registered under the provisions of Republic Act Numbered Sixty-eight hundred
ten (R.A. No. 6810), otherwise known as "Magna Carta For Countryside And
Barangay Business Enterprises (Kalakalan 20)";
(k) "Dealer" means one whose
business is to buy and sell merchandise, goods, and chattels as a merchant. He
stands immediately between the producer or manufacturer and the consumer and
depends for his profit not upon the labor he bestows upon his commodities but
upon the skill and foresight with which he watches the market;
(l) "Fee" means a charge fixed by
law or ordinance for the regulation or inspection of a business or activity;
(m) "Franchise" is a right or
privilege, affected with public interest which is conferred upon private
persons or corporations, under such terms and conditions as the government and
its political subdivisions may impose in the interest of public welfare,
security, and safety;
(n) "Gross Sales or Receipts"
include the total amount of money or its equivalent representing the contract
price, compensation or service fee, including the amount charged or materials
supplied with the services and deposits or advance payments actually or
constructively received during the taxable quarter for the services performed
or to be performed for another person excluding discounts if determinable at
the time of sales, sales return, excise tax, and value-added tax (VAT); cd
(o) "Manufacturer" includes every
person who, by physical or chemical process, alters the exterior texture or
form or inner substance of any raw material or manufactured or partially
manufactured product in such manner as to have been put in its original
condition, or who by any such process alters the quality of any such raw
material or manufactured or partially manufactured products so as to reduce it
to marketable shape or prepare it for any of the use of industry, or who by any
such process combines any such raw material or manufactured or partially
manufactured products with other materials or products of the same or of
different kinds and in such manner that the finished products of such process or
manufacture can be put to a special use or uses to which such raw material or
manufactured or partially manufactured products in their original condition
could not have been put, and who in addition alters such raw material or
manufactured or partially manufactured products, or combines the same to
produce such finished products for the purpose of their sale or distribution to
others and not for his own use or consumption;
(p) "Marginal Farmer or Fisherman"
refers to an individual engaged in subsistence farming or fishing which shall
be limited to the sale, barter or exchange of agricultural or marine products
produced by himself and his immediate family;
(q) "Motor Vehicle" means any
vehicle propelled by any power other than muscular power using the public
roads, but excluding road rollers, trolley cars, street-sweepers, sprinklers,
lawn mowers, bulldozers, graders, fork-lifts, amphibian trucks, and cranes if
not used on public roads, vehicles which run only on rails or tracks, and
tractors, trailers, and traction engines of all kinds used exclusively for
agricultural purposes; acd
(r) "Municipal Waters" includes
not only streams, lakes, and tidal waters within the municipality, not being
the subject of private ownership and not comprised within the national parks,
public forest, timber lands, forest reserves or fishery reserves, but also
marine waters included between two lines drawn perpendicularly to the general
coastline from points where the boundary lines of the municipality or city
touch the sea at low tide and a third line parallel with the general coastline
and fifteen (15) kilometers from it. Where two (2) municipalities are so
situated on the opposite shores that there is less than fifteen (15) kilometers
of marine waters between them, the third line shall be equally distant from
opposite shores of their respective municipalities;
(s) "Operator" includes the owner,
manager, administrator, or any other person who operates or is responsible for
the operation of a business establishment or undertaking;
(t) "Peddler" means any person
who, either for himself or on commission, travels from place to place and sells
his goods or offers to sell and deliver the same. Whether a peddler is a
wholesale peddler or a retail peddler of a particular commodity shall be
determined from the definition of wholesale dealer or retail dealer as provided
in this Title; cd i
(u) "Persons" means every natural
or juridical being, susceptible of rights and obligations or of being the
subject of legal relations;
(v) "Residents" refer to natural
persons who have their habitual residence in the province, city, or
municipality where they exercise their civil rights and fulfill their civil
obligations, and to juridical persons for which the law or any other provisions
creating or recognizing them fixes their residence in a particular province,
city, or municipality. In the absence of such law, juridical persons are
residents of the province, city, or municipality where they have their legal
residence or principal place of business or where they conduct their principal
business or occupation;
(w) "Retail" means a sale where the
purchaser buys the commodity for his own consumption, irrespective of the
quantity of the commodity sold;
(x) "Vessel" includes every type
of boat, craft, or other artificial contrivance used, or capable of being used,
as a means of transportation on water;
(y) "Wharfage" means a fee
assessed against the cargo of a vessel engaged in foreign or domestic trade
based on quantity, weight, or measure received and/or discharged by vessel; and
(z) "Wholesale" means a sale where
the purchaser buys or imports the commodities for resale to persons other than
the end user regardless of the quantity of the transaction.
SECTION
132. Local Taxing Authority. —
The power to impose a tax, fee, or charge or to generate revenue under this
Code shall be exercised by the sanggunian of the local government unit
concerned through an appropriate ordinance.
SECTION
133. Common Limitations on the
Taxing Powers of Local Government Units. — Unless otherwise provided herein,
the exercise of the taxing powers of provinces, cities, municipalities, and
barangays shall not extend to the levy of the following: casia
(a) Income tax, except when levied on banks
and other financial institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts,
legacies and other acquisitions mortis causa, except as otherwise provided
herein;
(d) Customs duties, registration fees of
vessel and wharfage on wharves, tonnage dues, and all other kinds of customs
fees, charges and dues except wharfage on wharves constructed and maintained by
the local government unit concerned;
(e) Taxes, fees, and charges and other
impositions upon goods carried into or out of, or passing through, the territorial
jurisdictions of local government units in the guise of charges for wharfage,
tolls for bridges or otherwise, or other taxes, fees, or charges in any form
whatsoever upon such goods or merchandise;
cdasia
(f) Taxes, fees or charges on agricultural
and aquatic products when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified
to by the Board of Investments as pioneer or non-pioneer for a period of six
(6) and four (4) years, respectively from the date of registration;
(h) Excise taxes on articles enumerated
under the National Internal Revenue Code, as amended, and taxes, fees or
charges on petroleum products; casia
(i) Percentage or value-added tax (VAT) on
sales, barters or exchanges or similar transactions on goods or services except
as otherwise provided herein;
(j) Taxes on the gross receipts of
transportation contractors and persons engaged in the transportation of
passengers or freight by hire and common carriers by air, land or water, except
as provided in this Code;
(k) Taxes on premiums paid by way or
reinsurance or retrocession;
(l) Taxes, fees or charges for the
registration of motor vehicles and for the issuance of all kinds of licenses or
permits for the driving thereof, except tricycles;
(m) Taxes, fees, or other charges on
Philippine products actually exported, except as otherwise provided
herein; cd i
(n) Taxes, fees, or charges, on Countryside
and Barangay Business Enterprises and cooperatives duly registered under R.A.
No. 6810 and Republic Act Numbered Sixty-nine hundred thirty-eight (R.A. No.
6938) otherwise known as the "Cooperative Code of the Philippines"
respectively; and
(o) Taxes, fees or charges of any kind on the
National Government, its agencies and instrumentalities, and local government
units.
CHAPTER
II
Specific
Provisions on the Taxing and Other Revenue-Raising Powers of Local Government
Units
ARTICLE
I
Provinces
SECTION
134. Scope of Taxing Powers. —
Except as otherwise provided in this Code, the province may levy only the
taxes, fees, and charges as provided in this Article. cdasia
SECTION
135. Tax on Transfer of Real
Property Ownership. (a) The province may impose a tax on the sale , donation,
barter, or on any other mode of transferring ownership or title of real
property at the rate of not more than fifty percent (50%) of the one percent
(1%) of the total consideration involved in the acquisition of the property or
of the fair market value in case the monetary consideration involved in the
transfer is not substantial, whichever is higher. The sale, transfer or other
disposition of real property pursuant to R.A. No. 6657 shall be exempt from
this tax.
(b) For this purpose, the Register of Deeds
of the province concerned shall, before registering any deed, require the
presentation of the evidence of payment of this tax. The provincial assessor
shall likewise make the same requirement before cancelling an old tax
declaration and issuing a new one in place thereof, Notaries public shall
furnish the provincial treasurer with a copy of any deed transferring ownership
or title to any real property within thirty (30) days from the date of
notarization. cdt
It
shall be the duty of the seller, donor, transferor, executor or administrator
to pay the tax herein imposed within sixty (60) days from the date of the
execution of the deed or from the date of the decedent's death.
SECTION
136. Tax on Business of Printing
and Publication. — The province may impose a tax on the business of persons
engaged in the printing and/or publication of books, cards, posters, leaflets,
handbills, certificates, receipts, pamphlets, and others of similar nature, at
a rate not exceeding fifty percent (50%) of one percent (1%) of the gross
annual receipts for the preceding calendar year.
In
the case of a newly started business, the tax shall not exceed one-twentieth
(1/20) of one percent (1%) of the capital investment. In the succeeding
calendar year, regardless of when the business started to operate, the tax
shall be based on the gross receipts for the preceding calendar year, or any
fraction thereof, as provided herein.
The
receipts from the printing and/or publishing of books or other reading
materials prescribed by the Department of Education, Culture and Sports as
school texts or references shall be exempt from the tax herein imposed.
SECTION
137. Franchise Tax. —
Notwithstanding any exemption granted by any law or other special law, the
province may impose a tax on businesses enjoying a franchise, at the rate not
exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts
for the preceding calendar year based on the incoming receipt, or realized,
within its territorial jurisdiction.
cdasia
In
the case of a newly started business, the tax shall not exceed one-twentieth
(1/20) of one percent (1%) of the capital investment. In the succeeding
calendar year, regardless of when the business started to operate, the tax
shall be based on the gross receipts for the preceding calendar year, or any
fraction thereon, as provided herein.
SECTION
138. Tax on Sand, Gravel and
Other Quarry Resources. — The province may levy and collect not more than ten
percent (10%) of fair market value in the locality per cubic meter of ordinary
stones, sand, gravel, earth, and other quarry resources, as defined under the
National Internal Revenue Code, as amended, extracted from public lands or from
the beds of seas, lakes, rivers, streams, creeks, and other public waters
within its territorial jurisdiction.
The
permit to extract sand, gravel and other quarry resources shall be issued
exclusively by the provincial governor, pursuant to the ordinance of the
sangguniang panlalawigan. cd
The
proceeds of the tax on sand, gravel and other quarry resources shall be
distributed as follows:
(1) Province — Thirty percent (30%);
(2)
(3) Barangay where the sand, gravel, and
other quarry resources are extracted — Forty percent (40%).
SECTION
139. Professional Tax. — (a) The
province may levy an annual professional tax on each person engaged in the
exercise or practice of his profession requiring government examination at such
amount and reasonable classification as the sangguniang panlalawigan may determine
but shall in no case exceed Three hundred pesos (P300.00). cd i
(b) Every person legally authorized to
practice his profession shall pay the professional tax to the province where he
practices his profession or where he maintains his principal office in case he
practices his profession in several places: Provided, however, That such person
who has paid the corresponding professional tax shall be entitled to practice
his profession in any part of the Philippines without being subjected to any
other national or local tax, license, or fee for the practice of such
profession.
(c) Any individual or corporation employing
a person subject to professional tax shall require payment by that person of
the tax on his profession before employment and annually thereafter. cd
(d) The professional tax shall be payable
annually, on or before the thirty-first (31st) day of January. Any person first
beginning to practice a profession after the month of January must, however,
pay the full tax before engaging therein. A line of profession does not become
exempt even if conducted with some other profession for which the tax has been
paid. Professionals exclusively employed in the government shall be exempt from
the payment of this tax.
(e) Any person subject to the professional
tax shall write in deeds, receipts, prescriptions, reports, books of account,
plans and designs, surveys and maps, as the case may be, the number of the
official receipt issued to him.
SECTION
140. Amusement Tax. — (a) The
province may levy an amusement tax to be collected from the proprietors,
lessees, or operators of theaters, cinemas, concert halls, circuses, boxing
stadia, and other places of amusement at a rate of not more than thirty percent
(30%) of the gross receipts from admission fees. cdtai
(b) In the case of theaters or cinemas, the
tax shall first be deducted and withheld by their proprietors, lessees, or
operators and paid to the provincial treasurer before the gross receipts are
divided between said proprietors, lessees, or operators and the distributors of
the cinematographic films.
(c) The holding of operas, concerts, dramas,
recitals, painting and art exhibitions, flower shows, musical programs,
literary and oratorical presentations, except pop, rock, or similar concerts
shall be exempt from the payment of the tax hereon imposed.
(d) The sangguniang panlalawigan may
prescribe the time, manner, terms and conditions for the payment of tax. In
case of fraud or failure to pay the tax, the sangguniang panlalawigan may
impose such surcharges, interest and penalties as it may deem appropriate. cdt
(e) The proceeds from the amusement tax shall
be shared equally by the province and the municipality where such amusement
places are located.
SECTION
141. Annual Fixed Tax For Every
Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers,
or Retailers in, Certain Products. — (a) The province may levy an annual fixed
tax for every truck, van or any vehicle used by manufacturers, producers,
wholesalers, dealers or retailers in the delivery or distribution of distilled
spirits, fermented liquors, soft drinks, cigars and cigarettes, and other
products as may be determined by the sangguniang panlalawigan, to sales
outlets, or consumers, whether directly or indirectly, within the province in
an amount not exceeding Five hundred pesos (P500.00).
(b) The manufacturers, producers,
wholesalers, dealers and retailers referred to in the immediately foregoing
paragraph shall be exempt from the tax on peddlers prescribed elsewhere in this
Code.
ARTICLE
II
Municipalities
SECTION
142. Scope of Taxing Powers. —
Except as otherwise provided in this Code, municipalities may levy taxes, fees,
and charges not otherwise levied by provinces.
cdasia
SECTION
143. Tax on Business. — The
municipality may impose taxes on the following businesses: (a) On
manufacturers, assemblers, repackers, processors, brewers, distillers,
rectifiers, and compounders of liquors, distilled spirits, and wines or
manufacturers of any article of commerce of whatever kind or nature, in
accordance with the following schedule:
With
gross sales or receipts for the Amount
of Tax
preceding
calendar year in the amount of: Per Annum
Less
than 10,000.00 165.00
P 10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 202.00
20,000.00 or more but less than 30,000.00 440.00
30,000.00 or more but less than 40,000.00 660.00
40,000.00 or more but less than 50,000.00 825.00
50,000.00 or more but less than 75,000.00 1,320.00
75,000.00 or more but less than 100,000.00 1,650.00
100,000.00 or more but less than 150,000.00 2,200.00
150,000.00 or more but less than 200,000.00 2,750.00
200,000.00 or more but less than 300,000.00 3,850.00
300,000.00 or more but less than 500,000.00 5,500.00
500,000.00 or more but less than 750,000.00 8,000.00
750,000.00 or more but less than 1,000,000.00 10,000.00
1,000,000.00
or more but less than 2,000,000.00 13,750.00
2,000,000.00
or more but less than 3,000,000.00 16,500.00
3,000,000.00
or more but less than 4,000,000.00 19,000.00
4,000,000.00
or more but less than 5,000,000.00 23,100.00
5,000,000.00
or more but less than 6,500,000.00 24,375.00
6,000,000.00
or more at a rate not exceeding
thirty-seven and a half percent
(37½%) of one percent (1%)
(b) On wholesalers, distributors, or dealers
in any article of commerce of whatever kind or nature in accordance with the
following schedule: cdasia
With
gross sales or receipts for the Amount
of Tax
preceding
calendar year in the amount of: Per Annum
Less
than 1,000.00 18.00
P 1,000.00 or more but less than P2,000.00 33.00
2,000.00 or more but less than 3,000.00 50.00
3,000.00 or more but less than 4,000.00 72.00
4,000.00 or more but less than 5,000.00 100.00
5,000.00 or more but less than 6,000.00 121.00
6,000.00 or more but less than 7,000.00 143.00
7,000.00 or more but less than 8,000.00 165.00
8,000.00 or more but less than 10,000.00 187.00
10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 275.00
20,000.00 or more but less than 30,000.00 330.00
30,000.00 or more but less than 40,000.00 440.00
40,000.00 or more but less than 50,000.00 660.00
50,000.00 or more but less than 75,000.00 990.00
75,000.00 or more but less than 100,000.00 1,320.00
100,000.00 or more but less than 150,000.00 1,870.00
150,000.00 or more but less than 200,000.00 2,420.00
200,000.00 or more but less than 300,000.00 3,300.00
300,000.00 or more but less than 500,000.00 4,400.00
500,000.00 or more but less than 750,000.00 6,600.00
750,000.00 or more but less than 1,000,000.00 8,800.00
1,000,000.00
or more but less than 2,000,000.00 10,000.00
2,000,000.00
or more at a rate not
exceeding
fifty percent
(50%) of one
percent (1%).
(c) On exporters, and on manufacturers ,
millers, producers, wholesalers, distributors, dealers or retailers of
essential commodities enumerated hereunder at a rate not exceeding one-half (½)
of the rates prescribed under subsection (a), (b) and (d) of this Section: cda
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy
products, locally manufactured, processed or preserved food, sugar, salt and
other agricultural, marine, and fresh water products, whether in their original
state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicine;
(5) Agricultural implements. equipment and
post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and
other farm inputs; cdt
(6) Poultry feeds and other animal feeds;
(7) School supplies; and
(8) Cement.
(d) On retailers.
With
gross sales or receipts Rate of
Tax
for
the preceding calendar year of: per annum
P400,000.00
or less 2%
more
than P400,000.00 1%
Provided,
however, That barangays shall have the exclusive power to levy taxes, as
provided under Section 152 hereof, on gross sales or receipts of the preceding
calendar year of Fifty thousand pesos (P50,000.00) or less, in the case of
cities, and Thirty thousand pesos (P30,000.00) or less, in the case of
municipalities.
(e) On contractors and other independent
contractors, in accordance with the following schedule: cdt
With
gross receipts for the Amount of Tax
preceding
calendar year in the amount of: Per Annum
Less
than 5,000.00 27.50
P 5,000.00 or more but less than P10,000.00 61.60
10,000.00 or more but less than 15,000.00 104.50
15,000.00 or more but less than 20,000.00 165.00
20,000.00 or more but less than 30,000.00 275.00
30,000.00 or more but less than 40,000.00 385.00
40,000.00 or more but less than 50,000.00 550.00
50,000.00 or more but less than 75,000.00 880.00
75,000.00 or more but less than 100,000.00 1,320.00
100,000.00 or more but less than 150,000.00 1,980.00
150,000.00 or more but less than 200,000.00 2,640.00
200,000.00 or more but less than 250,000.00 3,630.00
250,000.00 or more but less than 300,000.00 4,620.00
300,000.00 or more but less than 400,000.00 6,160.00
400,000.00 or more but less than 500,000.00 8,250.00
500,000.00 or more but less than 750,000.00 9,250.00
750,000.00 or more but less than 1,000,000.00 10,250.00
1,000,000.00
or more but less than 2,000,000.00 11,500.00
2,000,000.00
or more at a rate
not exceeding
fifty percent
(50%) of one
percent (1%)
(f) On banks and other financial
institutions, at a rate not exceeding fifty percent (50%) of one percent (1%)
on the gross receipts of the preceding calendar year derived from interest,
commissions and discounts from lending activities, income from financial
leasing, dividends, rentals on property and profit from exchange or sale of
property, insurance premium. cdtai
(g) On peddlers engaged in the sale of any
merchandise or article of commerce, at a rate not exceeding Fifty pesos
(P50.00) per peddler annually.
(h) On any business, not otherwise specified
in the preceding paragraphs, which the sanggunian concerned may deem proper to
tax: Provided, That on any business subject to the excise, value-added or
percentage tax under the National Internal Revenue Code, as amended, the rate
of tax shall not exceed two percent (2%) of gross sales or receipts of the
preceding calendar year.
The
sanggunian concerned may prescribe a schedule of graduated tax rates but in no
case to exceed the rates prescribed herein.
SECTION
144. Rates of Tax within the
Metropolitan
SECTION
145. Retirement of Business. — A
business subject to tax pursuant to the preceding sections shall, upon
termination thereof, submit a sworn statement of its gross sales or receipts
for the current year. If the tax paid during the year be less than the tax due
on said gross sales or receipts of the current year, the difference shall be
paid before the business is considered officially retired.
SECTION
146. Payment of Business Taxes. —
(a) The taxes imposed under Section 143 shall be payable for every separate or
distinct establishment or place where business subject to the tax is conducted
and one line of business does not become exempt by being conducted with some
other business for which such tax has been paid. The tax on a business must be
paid by the person conducting the same.
(b) In cases where a person conducts or
operates two (2) or more of the businesses mentioned in Section 143 of this
Code which are subject to the same rate of tax, the tax shall be computed on
the combined total gross sales or receipts of the said two (2) or more related
businesses. cdtai
(c) In cases where a person conducts or
operates two (2) or more businesses mentioned in Section 143 of this Code which
are subject to different rates of tax, the gross sales or receipts of each
business shall be separately reported for the purpose of computing the tax due
from each business.
SECTION
147. Fees and Charges. — The
municipality may impose and collect such reasonable fees and charges on
business and occupation and, except as reserved to the province in Section 139
of this Code, on the practice of any profession or calling, commensurate with
the cost of regulation, inspection and licensing before any person may engage
in such business or occupation, or practice such profession or calling.
SECTION
148. Fees for Sealing and
Licensing of Weights and Measures. — (a) The municipality may levy fees for the
sealing and licensing of weights and measures at such reasonable rates as shall
be prescribed by the sangguniang bayan.
casia
(b) The sangguniang bayan shall prescribe the
necessary regulations for the use of such weights and measures, subject to such
guidelines as shall be prescribed by the Department of Science and Technology.
The sanggunian concerned shall, by appropriate ordinance, penalize fraudulent
practices and unlawful possession or use of instruments of weights and measures
and prescribe the criminal penalty therefor in accordance with the provisions
of this Code. Provided, however, That the sanggunian concerned may authorize
the municipal treasurer to settle an offense not involving the commission of
fraud before a case therefor is filed in court, upon payment of a compromise
penalty of not less than Two hundred pesos (P200.00).
SECTION
149. Fishery Rentals, Fees and
Charges. — (a) Municipalities shall have the exclusive authority to grant
fishery privileges in the municipal waters and impose rentals, fees or charges
therefor in accordance with the provisions of this Section. casia
(b) The sangguniang bayan may:
(1) Grant fishery privileges to erect fish
corrals, oysters, mussels or other aquatic beds or bangus fry areas, within a
definite zone of the municipal waters, as determined by it: Provided, however,
That duly registered organizations and cooperatives of marginal fishermen shall
have the preferential right to such fishery privileges: Provided, further, That
the sangguniang bayan may require a public bidding in conformity with and
pursuant to an ordinance for the grant of such privileges: Provided, finally,
That in the absence of such organizations and cooperatives or their failure to
exercise their preferential right, other parties may participate in the public
bidding in conformity with the above cited procedure. cdasia
(2) Grant the privilege to gather, take or
catch bangus fry, prawn fry or kawag-kawag or fry of other species and fish
from the municipal waters by nets, traps or other fishing gears to marginal
fishermen free of any rental, fee, charge or any other imposition whatsoever.
(3) Issue licenses for the operation of
fishing vessels of three (3) tons or less for which purpose the sangguniang
bayan shall promulgate rules and regulations regarding the issuances of such
licenses to qualified applicants under existing laws.
Provided,
however, That the sanggunian concerned shall, by appropriate ordinance,
penalize the use of explosives, noxious or poisonous substances, electricity,
muro-ami, and other deleterious methods of fishing and prescribe a criminal
penalty therefor in accordance with the provisions of this Code: Provided,
finally, That the sanggunian concerned shall have the authority to prosecute
any violation of the provisions of applicable fishery laws. acd
SECTION
150. Situs of the Tax. — (a) For
purposes of collection of the taxes under Section 143 of this Code,
manufacturers, assemblers, repackers, brewers, distillers, rectifiers and
compounders of liquor, distilled spirits and wines, millers, producers,
exporters, wholesalers, distributors, dealers, contractors, banks and other
financial institutions, and other businesses, maintaining or operating branch
or sales outlet elsewhere shall record the sale in the branch or sales outlet
making the sale or transaction, and the tax thereon shall accrue and shall be
paid to the municipality where such branch or sales outlet is located. In cases
where there is no such branch or sales outlet in the city or municipality where
the sale or transaction is made, the sale shall be duly recorded in the principal
office and the taxes due shall accrue and shall be paid to such city or
municipality.
(b) The following sales allocation shall
apply to manufacturers, assemblers, contractors, producers, and exporters with
factories, project offices, plants, and plantations in the pursuit of their
business: cd
(1) Thirty percent (30%) of all sales
recorded in the principal office shall be taxable by the city or municipality
where the principal office is located; and
(2) Seventy percent (70%) of all sales
recorded in the principal office shall be taxable by the city or municipality
where the factory, project office, plant, or plantation is located.
(c) In case of a plantation located at a
place other than the place where the factory is located, said seventy percent
(70%) mentioned in subparagraph (b) of subsection (2) above shall be divided as
follows:
(1) Sixty percent (60%) to the city or
municipality where the factory is located; and
(2) Forty percent (40%) to the city or
municipality where the plantation is located.
casia
(d) In cases where a manufacturer, assembler,
producer, exporter or contractor has two (2) or more factories, project
offices, plants, or plantations located in different localities, the seventy
percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2)
above shall be prorated among the localities where the factories, project
offices, plants, and plantations are located in proportion to their respective
volumes of production during the period for which the tax is due.
(e) The foregoing sales allocation shall be
applied irrespective of whether or not sales are made in the locality where the
factory, project office, plant, or plantation is located. cda
ARTICLE
III
Cities
SECTION
151. Scope of Taxing Powers. —
Except as otherwise provided in this Code, the city, may levy the taxes, fees,
and charges which the province or municipality may impose: Provided, however,
That the taxes, fees and charges levied and collected by highly urbanized and
independent component cities shall accrue to them and distributed in accordance
with the provisions of this Code.
The
rates of taxes that the city may levy may exceed the maximum rates allowed for
the province or municipality by not more than fifty percent (50%) except the
rates of professional and amusement taxes.
ARTICLE
IV
Barangays
SECTION
152. Scope of Taxing Powers. —
The barangays may levy taxes, fees, and charges, as provided in this Article,
which shall exclusively accrue to them:
(a) Taxes — On stores or retailers with fixed
business establishments with gross sales of receipts of the preceding calendar
year of Fifty thousand pesos (P50,000.00) or less, in the case of cities and
Thirty thousand pesos (P30,000.00) or less, in the case of municipalities, at a
rate not exceeding one percent (1%) on such gross sales or receipts. cda
(b) Service Fees or Charges. — Barangays may
collect reasonable fees or charges for services rendered in connection with the
regulations or the use of barangay-owned properties or service facilities such
as palay, copra, or tobacco dryers.
(c) Barangay Clearance. — No city or
municipality may issue any license or permit for any business or activity
unless a clearance is first obtained from the barangay where such business or
activity is located or conducted. For such clearance, the sangguniang barangay
may impose a reasonable fee. The application for clearance shall be acted upon
within seven (7) working days from the filing thereof. In the event that the
clearance is not issued within the said period, the city or municipality may
issue the said license or permit. aisa
dc
(d) Other fees and Charges. — The barangay
may levy reasonable fees and charges:
(1) On commercial breeding of fighting cocks,
cockfights and cockpits;
(2) On places of recreation which charge
admission fees; and
(3) On billboards, signboards, neon signs,
and outdoor advertisements. IcSADC
ARTICLE
V
Common
Revenue-Raising Powers
SECTION
153. Service Fees and Charges. —
Local government units may impose and collect such reasonable fees and charges
for services rendered. cdt
SECTION
154. Public Utility Charges. —
Local government units may fix the rates for the operation of public utilities
owned, operated and maintained by them within their jurisdiction.
SECTION
155. Toll Fees or Charges. — The
sanggunian concerned may prescribe the terms and conditions and fix the rates
for the imposition of toll fees or charges for the use of any public road,
pier, or wharf, waterway, bridge, ferry or telecommunication system funded and
constructed by the local government unit concerned: Provided, That no such toll
fees or charges shall be collected from officers and enlisted men of the Armed
Forces of the Philippines and members of the Philippine National Police on
mission, post office personnel delivering mail, physically-handicapped, and
disabled citizens who are sixty-five (65) years or older.
When
public safety and welfare so requires, the sanggunian concerned may discontinue
the collection of the tolls, and thereafter the said facility shall be free and
open for public use. cdtai
ARTICLE
VI
Community
Tax
SECTION
156. Community Tax. — Cities or
municipalities may levy a community tax in accordance with the provisions of
this Article.
SECTION
157. Individuals Liable to
Community Tax. — Every inhabitant of the Philippines eighteen (18) years of age
or over who has been regularly employed on a wage or salary basis for at least
thirty (30) consecutive working days during any calendar year, or who is
engaged in business or occupation, or who owns real property with an aggregate
assessed value of One thousand pesos (P1,000.00) or more, or who is required by
law to file an income tax return shall pay an annual additional tax of Five
pesos (P5.00) and an annual additional tax of One peso (P1.00) for every One
thousand pesos (P1,000.00) of income regardless of whether from business,
exercise of profession or from property which in no case shall exceed Five
thousand pesos (P5,000.00). cd
In
the case of husband and wife, the additional tax herein imposed shall be based
upon the total property owned by them and the total gross receipts or earnings
derived by them.
SECTION
158. Juridical Persons Liable to
Community Tax. — Every corporation no matter how created or organized, whether
domestic or resident foreign, engaged in or doing business in the Philippines
shall pay an annual community tax of Five hundred pesos (P500.00) and an annual
additional tax, which, in no case, shall exceed Ten thousand pesos (P10,000.00)
in accordance with the following schedule:
(1) For every Five thousand pesos (P5,000.00)
worth of real property in the Philippines owned by it during the preceding year
based on the valuation used for the payment of real property tax under existing
laws, found in the assessment rolls of the city or municipality where the real
property is situated — Two pesos (P2.00); and
(2) For every Five thousand pesos (P5,000.00)
of gross receipts or earnings derived by it from its business in the
The
dividends received by a corporation from another corporation however shall, for
the purpose of the additional tax, be considered as part of the gross receipts
or earnings of said corporation.
SECTION
159. Exemptions. — The following
are exempt from the community tax:
(1) Diplomatic and consular representatives;
and acd
(2) Transient visitors when their stay in the
SECTION
160. Place of Payment. — The
community tax shall be paid in the place of residence of the individual, or in
the place where the principal office of the juridical entity is located.
SECTION
161. Time for Payment; Penalties
for Delinquency. — (a) The community tax shall accrue on the first (1st) day of
January of each year which shall be paid not later than the last day of
February of each year. If a person reaches the age of eighteen (18) years or
otherwise loses the benefit of exemption on or before the last day of June, he
shall be liable for the community tax on the day he reaches such age or upon
the day the exemption ends. However, if a person reaches the age of eighteen
(18) years or loses the benefit of exemption on or before the last day of
March, he shall have twenty (20) days to pay the community tax without becoming
delinquent. cda
Persons
who come to reside in the Philippines or reach the age of eighteen (18) years
on or after the first (1st) day of July of any year, or who cease to belong to
an exempt class or after the same date, shall not be subject to the community
tax for that year.
(b) Corporations established and organized on
or before the last day of June shall be liable for the community tax for that
year. But corporations established and organized on or before the last day of
March shall have twenty (20) days within which to pay the community tax without
becoming delinquent. Corporations established and organized on or after the
first day of July shall not be subject to the community tax for that year. cd i
If
the tax is not paid within the time prescribed above, there shall be added to
the unpaid amount an interest of twenty-four percent (24%) per annum from the
due date until it is paid.
SECTION
162. Community Tax Certificate. —
A community tax certificate shall be issued to every person or corporation upon
payment of the community tax. A community tax certificate may also be issued to
any person or corporation not subject to the community tax upon payment of One
peso (P1.00).
SECTION
163. Presentation of Community
Tax Certificate On Certain Occasions. — (a) When an individual subject to the
community tax acknowledges any document before a notary public, takes the oath
of office upon election or appointment to any position in the government
service; receives any license, certificate. or permit from any public
authority; pays any tax or free; receives any money from any public fund;
transacts other official business; or receives any salary or wage from any
person or corporation with whom such transaction is made or business done or
from whom any salary or wage is received to require such individual to exhibit
the community tax certificate. cdtai
The
presentation of community tax certificate shall not be required in connection
with the registration of a voter.
(b) When, through its authorized officers,
any corporation subject to the community tax receives any license, certificate,
or permit from any public authority, pays any tax or fee, receives money from
public funds, or transacts other official business, it shall be the duty of the
public official with whom such transaction is made or business done, to require
such corporation to exhibit the community tax certificate.
(c) The community tax certificate required
in the two preceding paragraphs shall be the one issued for the current year,
except for the period from January until the fifteenth (15th) of April each
year, in which case, the certificate issued for the preceding year shall
suffice. acd
SECTION
164. Printing of Community Tax
Certificates and Distribution of Proceeds. — (a) The Bureau of Internal Revenue
shall cause the printing of community tax certificates and distribute the same
to the cities and municipalities through the city and municipal treasurers in
accordance with prescribed regulations.
The
proceeds of the tax shall accrue to the general funds of the cities,
municipalities and barangays except a portion thereof which shall accrue to the
general fund of the national government to cover the actual cost of printing
and distribution of the forms and other related expenses. The city or municipal
treasurer concerned shall remit to the national treasurer the said share of the
national government in the proceeds of the tax within ten (10) days after the
end of each quarter. cdtai
(b) The city or municipal treasurer shall
deputize the barangay treasurer to collect the community tax in their
respective jurisdictions: Provided, however, That said barangay treasurer shall
be bonded in accordance with existing laws.
(c) The proceeds of the community tax
actually and directly collected by the city or municipal treasurer shall accrue
entirely to the general fund of the city or municipality concerned. However,
proceeds of the community tax collected through the barangay treasurers shall
be apportioned as follows:
(1) Fifty percent (50%) shall accrue to the
general fund of the city or municipality concerned; and
(2) Fifty percent (50%) shall accrue to the
barangay where the tax is collected.
aisa dc
CHAPTER
III
Collection
of Taxes
SECTION
165. Tax Period and Manner of
Payment. — Unless otherwise provided in this Code, the tax period of all local
taxes, fees and charges shall be the calendar year. Such taxes, fees and
charges may be paid in quarterly installments.
SECTION
166. Accrual of Tax. — Unless
otherwise provided in this Code, all local taxes, fees, and charges shall
accrue on the first (1st) day of January of each year. However, new taxes, fees
or charges, or changes in the rates thereof, shall accrue on the first (1st)
day of the quarter next following the effectivity of the ordinance imposing
such new levies or rates.
SECTION
167. Time of Payment. — Unless
otherwise provided in this Code, all local taxes, fees, and charges shall be
paid within the first twenty (20) days of January or of each subsequent
quarter, as the case may be. The sanggunian concerned may, for a justifiable
reason or cause, extend the time for payment of such taxes, fees, or charges
without surcharges or penalties, but only for a period not exceeding six (6)
months.
SECTION
168. Surcharges and Penalties on
Unpaid Taxes, Fees, or Charges. — The sanggunian may impose a surcharge not
exceeding twenty-five (25%) of the amount of taxes, fees or charges not paid on
time and an interest at the rate not exceeding two percent (2%) per month of
the unpaid taxes, fees or charges including surcharges, until such amount is
fully paid but in no case shall the total thirty-six (36%) months. cd
SECTION
169. Interests on Other Unpaid
Revenues. — Where the amount of any other revenue due a local government unit,
except voluntary contributions or donations, is not paid on the date fixed in
the ordinance, or in the contract, expressed or implied, or upon the occurrence
of the event which has given rise to its collection, there shall be collected
as part of that amount an interest thereon at the rate not exceeding two
percent (2%) per month from the date it is due until it is paid, but in no case
shall the total interest on the unpaid amount or a portion thereof exceed
thirty-six (36) months.
SECTION
170. Collection of Local Revenue
by Treasurer. — All local taxes, fees, and charges shall be collected by the
provincial, city, municipal, or barangay treasurer, or their duly authorized
deputies.
The
provincial, city or municipal treasurer may designate the barangay treasurer as
his deputy to collect local taxes, fees, or charges. In case a bond is required
for the purpose, the provincial, city or municipal government shall pay the
premiums thereon in addition to the premiums of bond that may be required under
this Code.
SECTION
171. Examination of Books of
Accounts and Pertinent Records of Businessmen by Local Treasurer. — The
provincial, city, municipal or barangay treasurer may, by himself or through
any of his deputies duly authorized in writing, examine the books, accounts,
and other pertinent records of any person, partnership, corporation, or
association subject to local taxes, fees and charges in order to ascertain.
assess, and collect the correct amount of the tax, fee, or charge. Such
examination shall be made during regular business hours, only once for every
tax period, and shall be certified to by the examining official. Such
certificate shall be made of record in the books of accounts of the taxpayer
examined. casia
In
case the examination herein authorized is made by a duly authorized deputy of
the local treasurer, the written authority of the deputy concerned shall
specifically state the name, address, and business of the taxpayer whose books,
accounts, and pertinent records are to be examined, the date and place of such
examination and the procedure to be followed in conducting the same.
For
this purpose, the records of the revenue district office of the Bureau of
Internal Revenue shall be made available to the local treasurer, his deputy or
duly authorized representative. cdtai
CHAPTER
IV
Civil
Remedies for Collection of Revenues
SECTION
172. Application of Chapter. —
The provisions of this Chapter and the remedies provided hereon may be availed
of for the collection of any delinquent local tax, fee, charge, or other
revenue.
SECTION
173. Local Government's Lien. —
Local taxes, fees, charges and other revenues constitute a lien, superior to
all liens, charges or encumbrances in favor of any person, enforceable by
appropriate administrative or judicial action, not only upon any property or
rights therein which may be subject to the lien but also upon property used in
business, occupation, practice of profession or calling, or exercise of
privilege with respect to which the lien is imposed. The lien may only be
extinguished upon full payment of the delinquent local taxes fees and charges
including related surcharges and interest.
cdtai
SECTION
174. Civil Remedies. — The civil
remedies for the collection of local taxes, fees, or charges, and related
surcharges and interest resulting from delinquency shall be:
(a) By administrative action thru distraint
of goods, chattels, or effects, and other personal property of whatever
character, including stocks and other securities, debts, credits, bank
accounts, and interest in and rights to personal property, and by levy upon
real property and interest in or rights to real property; and acd
(b) By judicial action.
Either
of these remedies or all may be pursued concurrently or simultaneously at the
discretion of the local government unit concerned.
SECTION
175. Distraint of Personal
Property. — The remedy by distraint shall proceed as follows:
(a) Seizure — Upon failure of the person
owing any local tax, fee, or charge to pay the same at the time required, the
local treasurer or his deputy may, upon written notice, seize or confiscate any
personal property belonging to that person or any personal property subject to
the lien in sufficient quantity to satisfy the tax, fee, or charge in question,
together with any increment thereto incident to delinquency and the expenses of
seizure. In such case, the local treasurer or his deputy shall issue a duly
authenticated certificate based upon the records of his office showing the fact
of delinquency and the amounts of the tax, fee, or charge and penalty due. Such
certificate shall serve as sufficient warrant for the distraint of personal
property aforementioned, subject to the taxpayer's right to claim exemption
under the provisions of existing laws. Distrained personal property shall be
sold at public auction in the manner hereon provided for. aisa dc
(b) Accounting of distrained goods. — The
officer executing the distraint shall make or cause to be made an account of
the goods, chattels or effects distrained, a copy of which signed by himself
shall be left either with the owner or person from whose possession the goods,
chattels or effects are taken, or at the dwelling or place or business of that
person and with someone of suitable age and discretion, to which list shall be
added a statement of the sum demanded and a note of the time and place of sale.
(c) Publication — The officer shall
forthwith cause a notification to be exhibited in not less than three (3)
public and conspicuous places in the territory of the local government unit
where the distraint is made, specifying the time and place of sale, and the
articles distrained. The time of sale shall not be less than twenty (20) days
after the notice to the owner or possessor of the property as above specified
and the publication or posting of the notice. One place for the posting of the
notice shall be at the office of the chief executive of the local government
unit in which the property is distrained.
acd
(d) Release of distrained property upon
payment prior to sale — If at any time prior to the consummation of the sale,
all the proper charges are paid to the officer conducting the sale, the goods
or effects distrained shall be restored to the owner.
(e) Procedure of sale — At the time and place
fixed in the notice, the officer conducting the sale shall sell the goods or
effects so distrained at public auction to the highest bidder for cash. Within
five (5) days after the sale, the local treasurer shall make a report of the
proceedings in writing to the local chief executive concerned.
Should
the property distrained be not disposed of within one hundred and twenty (120)
days from the date of distraint, the same shall be considered as sold to the
local government unit concerned for the amount of the assessment made thereon
by the Committee on Appraisal and to the extent of the same amount, the tax
delinquencies shall be cancelled. cd i
Said
Committee on Appraisal shall be composed of the city or municipal treasurer as
chairman, with a representative of the Commission on Audit and the city or municipal
assessor as members.
(f) Disposition of proceeds — The proceeds
of the sale shall be applied to satisfy the tax, including the surcharges,
interest, and other penalties incident to delinquency, and the expenses of the
distraint and sale. The balance over and above what is required to pay the
entire claim shall be returned to the owner of the property sold. The expenses
chargeable upon the seizure and sale shall embrace only the actual expenses of
seizure and preservation of the property pending the sale, and no charge shall
be imposed for the services of the local officer or his deputy. Where the
proceeds of the sale are insufficient to satisfy the claim, other property may,
in like manner, be distrained until the full amount due, including all expenses,
is collected. cd i
SECTION
176. Levy on Real Property. —
After the expiration of the time required to pay the delinquent tax, fee, or
charge, real property may be levied on before, simultaneously, or after the
distraint of personal property belonging to the delinquent taxpayer. To this
end, the provincial, city or municipal treasurer, as the case may be, shall
prepare a duly authenticated certificate showing the name of the taxpayer and
the amount of the tax, fee, or charge, and penalty due from him. Said
certificate shall operate with the force of a legal execution throughout the
In
case the levy on real property is not issued before or simultaneously with the
warrant of distraint on personal property, and the personal property of the
taxpayer is not sufficient to satisfy his delinquency, the provincial, city or
municipal treasurer, as the case may be, shall within thirty (30) days after
execution of the distraint, proceed with the levy on the taxpayer's real
property.
A
report on any levy shall, within ten (10) days after receipt of the warrant, be
submitted by the levying officer to the sanggunian concerned.
SECTION
177. Penalty for Failure to Issue
and Execute Warrant. — Without prejudice to criminal prosecution under the
Revised Penal Code and other applicable laws, any local treasurer who fails to
issue or execute the warrant of distraint or levy after the expiration of the time
prescribed, or who is found guilty of abusing the exercise thereof by competent
authority shall be automatically dismissed from the service after due notice
and hearing. casia
SECTION
178. Advertisement and
Within
thirty (30) days after the sale, the local treasurer or his deputy shall make a
report of the sale to the sanggunian concerned, and which shall form part of
his records. After consultation with the sanggunian, the local treasurer shall
make and deliver to the purchaser a certificate of sale, showing the proceeding
of the sale, describing the property sold, stating the name of the purchaser
and setting out the exact amount of all taxes, fees, charges, and related
surcharges, interests, or penalties: Provided, however, That any excess in the
proceeds of the sale over the claim and cost of sales shall be turned over to
the owner of the property. cd i
The
local treasurer may, by ordinance duly approved, advance an amount sufficient
to defray the costs of collection by means of the remedies provided for in this
Title, including the preservation or transportation in case of personal
property, and the advertisement and subsequent sale, in cases of personal and
real property including improvements thereon.
SECTION
179. Redemption of Property Sold.
— Within one (1) year from the date of sale, the delinquent taxpayer or his
representative shall have the right to redeem the property upon payment to the
local treasurer of the total amount of taxes, fees, or charges, and related
surcharges, interests or penalties from the date of delinquency to the date of
sale, plus interest of not more than two percent (2%) per month on the purchase
price from the date of purchase to the date of redemption. Such payment shall
invalidate the certificate of sale issued to the purchaser and the owner shall
be entitled to a certificate of redemption from the provincial, city or
municipal treasurer or his deputy.
casia
The
provincial, city or municipal treasurer or his deputy, upon surrender by the
purchaser of the certificate of sale previously issued to him, shall forthwith
return to the latter the entire purchase price paid by him plus the interest of
not more than two percent (2%) per month herein provided for, the portion of
the cost of sale and other legitimate expenses incurred by him, and said
property thereafter shall be free from the lien of such taxes, fees, or
charges, related surcharges, interests, and penalties.
The
owner shall not, however, be deprived of the possession of said property and
shall be entitled to the rentals and other income thereof until the expiration
of the time allowed for its redemption.
SECTION
180. Final Deed to Purchaser. —
In case the taxpayer fails to redeem the property as provided herein, the local
treasurer shall execute a deed conveying to the purchaser so much of the
property as has been sold, free from liens of any taxes, fees, charges, related
surcharges, interests, and penalties. The deed shall succinctly recite all the
proceedings upon which the validity of the sale depends. casia
SECTION
181. Purchase of Property By the
Local Government Units for Want of Bidder. — In case there is no bidder for the
real property advertised for sale as provided herein, or if the highest bid is
for an amount insufficient to pay the taxes, fees, or charges, related
surcharges, interests, penalties and costs, the local treasurer conducting the
sale shall purchase the property in behalf of the local government unit
concerned to satisfy the claim and within two (2) days thereafter shall make a
report of his proceedings which shall be reflected upon the records of his
office. It shall be the duty of the Registrar of Deeds concerned upon
registration with his office of any such declaration of forfeiture to transfer
the title of the forfeited property to the local government unit concerned
without the necessity of an order from a competent court.
Within
one (1) year from the date of such forfeiture, the taxpayer or any of his
representative, may redeem the property by paying to the local treasurer the
full amount of the taxes, fees, charges, and related surcharges, interests, or
penalties, and the costs of sale. If the property is not redeemed as provided
herein, the ownership thereof shall be fully vested on the local government
unit concerned.
SECTION
182. Resale of Real Estate Taken
for Taxes, Fees, or Charges. — The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell and dispose of
the real property acquired under the preceding section at public auction. The
proceeds of the sale shall accrue to the general fund of the local government
unit concerned.
SECTION
183. Collection of Delinquent
Taxes, Fees, Charges or other Revenues through Judicial Action. — The local
government unit concerned may enforce the collection of delinquent taxes, fees,
charges or other revenues by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local treasurer within the
period prescribed in Section 194 of this Code.
SECTION
184. Further Distraint or Levy. —
The remedies by distraint and levy may be repeated if necessary until the full
amount due, including all expenses, is collected. acd
SECTION
185. Personal Property Exempt
from Distraint or Levy. — The following property shall be exempt from distraint
and the levy, attachment or execution thereof for delinquency in the payment of
any local tax, fee or charge, including the related surcharge and interest:
(a) Tools and implements necessarily used by
the delinquent taxpayer in his trade or employment; acd
(b) One (1) horse, cow, carabao, or other
beast of burden, such as the delinquent taxpayer may select, and necessarily
used by him in his ordinary occupation;
(c) His necessary clothing, and that of all
his family;
(d) Household furniture and utensils
necessary for housekeeping and used for that purpose by the delinquent
taxpayer, such as he may select, of a value not exceeding Ten thousand pesos
(P10,000.00);
(e) Provisions, including crops, actually
provided for individual or family use sufficient for four (4) months;
(f) The professional libraries of doctors,
engineers, lawyers and judges;
(g) One fishing boat and net, not exceeding
the total value of Ten thousand pesos (P10,000.00), by the lawful use of which
a fisherman earns his livelihood; and
(h) Any material or article forming part of
a house or improvement of any real property.
cd i
CHAPTER
V
Miscellaneous
Provisions
SECTION
186. Power To Levy Other Taxes,
Fees or Charges. — Local government units may exercise the power to levy taxes,
fees or charges on any base or subject not otherwise specifically enumerated
herein or taxed under the provisions of the National Internal Revenue Code, as
amended, or other applicable laws: Provided, That the taxes, fees, or charges
shall not be unjust, excessive, oppressive, confiscatory or contrary to
declared national policy: Provided, further, That the ordinance levying such
taxes, fees or charges shall not be enacted without any prior public hearing
conducted for the purpose. cd
SECTION
187. Procedure for Approval and
Effectivity of Tax, Ordinances and Revenue Measures; Mandatory Public Hearings.
— The procedure for approval of local tax ordinances and revenue measures shall
be in accordance with the provisions of this Code: Provided, That public
hearings shall be conducted for the purpose prior to the enactment thereof:
Provided, further, That any question on the constitutionality or legality of
tax ordinances or revenue measures may be raised on appeal within thirty (30)
days from the effectivity thereof to the Secretary of Justice who shall render
a decision within sixty (60) days from the date of receipt of the appeal:
Provided, however, That such appeal shall not have the effect of suspending the
effectivity of the ordinance and the accrual and payment of the tax, fee, or
charge levied therein: Provided, finally, That within thirty (30) days after
receipt of the decision or the lapse of the sixty-day period without the
Secretary of Justice acting upon the appeal, the aggrieved party may file
appropriate proceedings with a court of competent jurisdiction.
SECTION
188. Publication of Tax
Ordinances and Revenue Measures. — Within ten (10) days after their approval,
certified true copies of all provincial, city, and municipal tax ordinances or
revenue measures shall be published in full for three (3) consecutive days in a
newspaper of local circulation: Provided, however, That in provinces, cities
and municipalities where there are no newspapers of local circulation, the same
may be posted in at least two (2) conspicuous and publicly accessible places.
SECTION
189. Furnishing of Copies of Tax
Ordinances and Revenue Measures. — Copies of all provincial, city, and municipal
and barangay tax ordinances and revenue measures shall be furnished the
respective local treasurers for public dissemination. casia
SECTION
190. Attempt to Enforce Void or
Suspended Tax Ordinances and revenue measures. — The enforcement of any tax
ordinance or revenue measure after due notice of the disapproval or suspension
thereof shall be sufficient ground for administrative disciplinary action
against the local officials and employees responsible therefor.
SECTION
191. Authority of Local Government
Units to Adjust Rates of Tax Ordinances. — Local government units shall have
the authority to adjust the tax rates as prescribed herein not oftener than
once every five (5) years, but in no case shall such adjustment exceed ten
percent (10%) of the rates fixed under this Code.
SECTION
192. Authority to Grant Tax
Exemption Privileges. — Local government units may, through ordinances duly
approved, grant tax exemptions, incentives or reliefs under such terms and
conditions as they may deem necessary.
SECTION
193. Withdrawal of Tax Exemption
Privileges. — Unless otherwise provided in this Code, tax exemptions or
incentives granted to, or presently enjoyed by all persons, whether natural or
juridical, including government-owned or controlled corporations, except local
water districts, cooperatives duly registered under R.A. No. 6938, non-stock
and non-profit hospitals and educational institutions, are hereby withdrawn
upon the effectivity of this Code.
casia
CHAPTER
VI
Taxpayer's
Remedies
SECTION
194. Periods of Assessment and
Collection. — (a) Local taxes, fees, or charges shall be assessed within five
(5) years from the date they became due. No action for the collection of such
taxes, fees, or charges, whether administrative or judicial, shall be instituted
after the expiration of such period: Provided, That. taxes, fees or charges
which have accrued before the effectivity of this Code may be assessed within a
period of three (3) years from the date they became due. acd
(b) In case of fraud or intent to evade the
payment of taxes, fees, or charges, the same may be assessed within ten (10)
years from discovery of the fraud or intent to evade payment.
(c) Local taxes, fees, or charges may be
collected within five (5) years from the date of assessment by administrative
or judicial action. No such action shall be instituted after the expiration of
said period: Provided, however, That, taxes, fees or charges assessed before
the effectivity of this Code may be collected within a period of three (3)
years from the date of assessment.
(d) The running of the periods of
prescription provided in the preceding paragraphs shall be suspended for the
time during which:
(1) The treasurer is legally prevented from
making the assessment of collection;
casia
(2) The taxpayer requests for a
reinvestigation and executes a waiver in writing before expiration of the
period within which to assess or collect; and
(3) The taxpayer is out of the country or
otherwise cannot be located.
SECTION
195. Protest of Assessment. — When
the local treasurer or his duly authorized representative finds that correct
taxes, fees, or charges have not been paid, he shall issue a notice of
assessment stating the nature of the tax, fee, or charge, the amount of
deficiency, the surcharges, interests and penalties. Within sixty (60) days
from the receipt of the notice of assessment, the taxpayer may file a written
protest with the local treasurer contesting the assessment; otherwise, the
assessment shall become final and executory. The local treasurer shall decide
the protest within sixty (60) days from the time of its filing. If the local
treasurer finds the protest to be wholly or partly meritorious, he shall issue
a notice cancelling wholly or partially the assessment. However, if the local treasurer
finds the assessment to be wholly or partly correct, he shall deny the protest
wholly or partly with notice to the taxpayer. The taxpayer shall have thirty
(30) days from the receipt of the denial of the protest or from the lapse of
the sixty (60) day period prescribed herein within which to appeal with the
court of competent jurisdiction otherwise the assessment becomes conclusive and
unappealable.
SECTION
196. Claim for Refund of Tax
Credit. — No case or proceeding shall be maintained in any court for the
recovery of any tax, fee, or charge erroneously or illegally collected until a
written claim for refund or credit has been filed with the local treasurer. No
case or proceeding shall be entertained in any court after the expiration of
two (2) years from the date of the payment of such tax, fee, or charge, or from
the date the taxpayer is entitled to a refund or credit.
TITLE
II.
Real
Property Taxation
CHAPTER
I
General
Provisions
SECTION
197. Scope. — This Title shall
govern the administration, appraisal, assessment, levy and collection of real
property tax.
SECTION
198. Fundamental Principles. —
The appraisal, assessment, levy and collection of real property tax shall be
guided by the following fundamental principles:
(a) Real property shall be appraised at its
current and fair market value;
(b) Real property shall be classified for
assessment purposes on the basis of its actual use; casia
(c) Real property shall be assessed on the
basis of a uniform classification within each local government unit;
(d) The appraisal, assessment, levy and
collection of real property tax shall not be let to any private person; and
(e) The appraisal and assessment of real
property shall be equitable.
SECTION
199. Definitions. — When used in
this Title:
(a) "Acquisition Cost" for
newly-acquired machinery not yet depreciated and appraised within the year of
its purchase, refers to the actual cost of the machinery to its present owner,
plus the cost of transportation, handling, and installation at the present site; acd
(b) "Actual Use" refers to the
purpose for which the property is principally or predominantly utilized by the
person in possession thereof;
(c) "Ad Valorem Tax" is a levy on
real property determined on the basis of a fixed proportion of the value of the
property;
(d) "Agricultural Land" is land
devoted principally to the planting of trees, raising of crops, livestock and
poultry, dairying, salt making, inland fishing and similar aquacultural
activities, and other agricultural activities, and is not classified as
mineral, timber, residential, commercial or industrial land;
(e) "Appraisal" is the act or
process of determining the value of property as of a specified date for a
specific purpose; cd i
(f) "Assessment" is the act or
process of determining the value of a property, or proportion thereof subject
to tax, including the discovery, listing, classification, and appraisal of
properties;
(g) "Assessment Level" is the
percentage applied to the fair market value to determine the taxable value of
the property;
(h) "Assessed Value" is the fair
market value of the real property multiplied by the assessment level. It is
synonymous to taxable value;
(i) "
(j) "Depreciated Value" is the
value remaining after deducting depreciation from the acquisition cost; cdt
(k) "Economic Life" is the
estimated period over which it is anticipated that a machinery or equipment may
be profitably utilized;
(l) "Fair Market Value" is the
price at which a property may be sold by a seller who is not compelled to sell
and bought by a buyer who is not compelled to buy;
(m) "Improvement" is a valuable
addition made to a property or an amelioration in its condition, amounting to
more than a mere repair or replacement of parts involving capital expenditures
and labor, which is intended to enhance its value, beauty or utility or to
adapt it for new or further purposes;
(n) "Industrial Land" is land
devoted principally to industrial activity as capital investment and is not
classified as agricultural, commercial, timber, mineral or residential
land; cdtai
(o) "Machinery" embraces machines,
equipment, mechanical contrivances, instruments, appliances or apparatus which
may or may not be attached, permanently or temporarily, to the real property.
It includes the physical facilities for production, the installations and
appurtenant service facilities, those which are mobile, self-powered or
self-propelled, and those not permanently attached to the real property which
are actually, directly, and exclusively used to meet the needs of the
particular industry, business or activity and which by their very nature and
purpose are designed for, or necessary to its manufacturing, mining, logging,
commercial, industrial or agricultural purposes;
(p) "Mineral Lands" are lands in
which minerals, metallic or non-metallic, exist in sufficient quantity or grade
to justify the necessary expenditures to extract and utilize such
materials; cdt
(q) "Reassessment" is the assigning
of new assessed values to property, particularly real estate, as the result of
a general, partial, or individual reappraisal of the property;
(r) "Remaining Economic Life" is
the period of time expressed in years from the date of appraisal to the date
when the machinery becomes valueless;
(s) "Remaining Value" is the value
corresponding to the remaining useful life of the machinery;
(t) "Replacement or Reproduction
Cost" is the cost that would be incurred on the basis of current prices,
in acquiring an equally desirable substitute property, or the cost of
reproducing a new replica of the property on the basis of current prices with
the same or closely similar material; and
acd
(u) "
SECTION
200. Administration of the Real
Property Tax. — The provinces and cities, including the municipalities within
the Metropolitan Manila Area, shall be primarily responsible for the proper,
efficient and effective administration of the real property tax.
CHAPTER
II
Appraisal
and Assessment of Real Property
SECTION
201. Appraisal of Real Property.
— All real property, whether taxable or exempt, shall be appraised at the current
and fair market value prevailing in the locality where the property is
situated. The Department of Finance shall promulgate the necessary rules and
regulations for the classification, appraisal, and assessment of real property
pursuant to the provisions of this Code.
cdasia
SECTION
202. Declaration of real Property
by the Owner or Administrator. — It shall be the duty of all persons, natural
or juridical, owning or administering real property, including the improvements
therein, within a city or municipality, or their duly authorized
representative, to prepare, or cause to be prepared, and file with the
provincial, city or municipal assessor, a sworn statement declaring the true
value of their property, whether previously declared or undeclared, taxable or
exempt, which shall be the current and fair market value of the property, as
determined by the declarant. Such declaration shall contain a description of
the property sufficient in detail to enable the assessor or his deputy to
identify the same for assessment purposes. The sworn declaration of real
property herein referred to shall be filed with the assessor concerned once
every three (3) years during the period from January first (1st) to June
thirtieth (30th) commencing with the calendar year 1992. cda
SECTION
203. Duty of Person Acquiring
Real Property or Making Improvement Thereon. — It shall also be the duty of any
person, or his authorized representative, acquiring at any time real property
in any municipality or city or making any improvement on real property, to
prepare, or cause to be prepared, and file with the provincial, city or
municipal assessor, a sworn statement declaring the true value of subject
property, within sixty (60) days after the acquisition of such property or upon
completion or occupancy of the improvement, whichever comes earlier.
SECTION
204. Declaration of Real Property
by the Assessor. — When any person, natural or juridical, by whom real property
is required to be declared under Section 202 hereof, refuses or fails for any
reason to make such declaration within the time prescribed, the provincial,
city or municipal assessor shall himself declare the property in the name of
the defaulting owner, if known, or against an unknown owner, as the case may
be, and shall assess the property for taxation in accordance with the provision
of this Title. No oath shall be required of a declaration thus made by the
provincial, city or municipal assessor.
SECTION
205. Listing of Real Property in
the Assessment Rolls. — (a) In every province and city, including the
municipalities within the Metropolitan Manila Area, there shall be prepared and
maintained by the provincial, city or municipal assessor an assessment roll
wherein shall be listed all real property, whether taxable or exempt, located
within the territorial jurisdiction of the local government unit concerned.
Real property shall be listed, valued and assessed in the name of the owner or
administrator, or anyone having legal interest in the property. cdasia
(b) The undivided real property of a deceased
person may be listed, valued and assessed in the name of the estate or of the
heirs and devisees without designating them individually; and undivided real
property other than that owned by a deceased may be listed, valued and assessed
in the name of one or more co-owners: Provided, however, That such heir,
devisee, or co-owner shall be liable severally and proportionately for all
obligations imposed by this Title and the payment of the real property tax with
respect to the undivided property.
casia
(c) The real property of a corporation,
partnership, or association shall be listed, valued and assessed in the same
manner as that of an individual.
(d) Real property owned by the Republic of
the Philippines, its instrumentalities and political subdivisions, the
beneficial use of which has been granted, for consideration or otherwise, to a
taxable person, shall be listed, valued and assessed in the name of the
possessor, grantee or of the public entity if such property has been acquired
or held for resale or lease.
SECTION
206. Proof of Exemption of Real
Property from Taxation. — Every person by or for whom real property is
declared, who shall claim tax exemption for such property under this Title
shall file with the provincial, city or municipal assessor within thirty (30)
days from the date of the declaration of real property sufficient documentary
evidence in support of such claim including corporate charters, title of
ownership, articles of incorporation, by-laws, contracts, affidavits,
certifications and mortgage deeds, and similar documents.
If
the required evidence is not submitted within the period herein prescribed, the
property shall be listed as taxable in the assessment roll. However, if the
property shall be proven to be tax exempt, the same shall be dropped from the
assessment roll. aisa dc
SECTION
207. Real Property Identification
System. — All declarations of real property made under the provisions of this
Title shall be kept and filed under a uniform classification system to be
established by the provincial, city or municipal assessor.
SECTION
208. Notification of Transfer of
Real Property Ownership. — Any person who shall transfer real property
ownership to another shall notify the provincial, city or municipal assessor
concerned within sixty (60) days from the date of such transfer. The
notification shall include the mode of transfer, the description of the
property alienated, the name and address of the transferee.
SECTION
209. Duty of Registrar of Deeds
to Appraise Assessor of Real Property Listed in Registry. — (a) To ascertain
whether or not any real property entered in the Registry of Property has
escaped discovery and listing for the purpose of taxation, the Registrar of
Deeds shall prepare and submit to the provincial, city or municipal assessor,
within six (6) months from the date of effectivity of this Code and every year
thereafter, an abstract of his registry, which shall include brief but
sufficient description of the real properties entered therein, their present
owners, and the dates of their most recent transfer or alienation accompanied
by copies of corresponding deeds of sale, donation, or partition or other forms
of alienation. cdtai
(b) It shall also be the duty of the
Registrar of Deeds to require every person who shall present for registration a
document of transfer, alienation, or encumbrance of real property to accompany
the same with a certificate to the effect that the real property subject of the
transfer, alienation, or encumbrance, as the case may be, has been fully paid
of all real property taxes due thereon. Failure to provide such certificate
shall be a valid cause for the Registrar of Deeds to refuse the registration of
the document.
SECTION
210. Duty of Official Issuing
Building Permit or Certificate of Registration of Machinery to Transmit Copy to
Assessor. — Any public official or employee who may now or hereafter be
required by law or regulation to issue to any person a permit for the
construction, addition, repair, or renovation of a building, or permanent
improvement on land, or a certificate of registration for any machinery,
including machines, mechanical contrivances, and apparatus attached or affixed
on land or to another real property, shall transmit a copy of such permit or
certificate within thirty (30) days of its issuance, to the assessor of the
province, city or municipality where the property is situated.
SECTION
211. Duty of Geodetic Engineers
to Furnish Copy of Plans to Assessor. — It shall be the duty of all geodetic
engineers, public or private, to furnish free of charge to the assessor of the
province, city or municipality where the land is located with a white or blue
print copy of each of all approved original or subdivision plans or maps of
surveys executed by them within thirty (30) days from receipt of such plans
from the Lands Management Bureau, the Land Registration Authority, or the
Housing and Land Use Regulatory Board, as the case may be. cda
SECTION
212. Preparation of Schedule of
Fair Market Values. — Before any general revision of property assessment is
made pursuant to the provisions of this Title, there shall be prepared a
schedule of fair market values by the provincial, city and municipal assessor
of the municipalities within the Metropolitan Manila Area for the different
classes of real property situated in their respective local government units
for enactment by ordinance of the sanggunian concerned. The schedule of fair
market values shall be published in a newspaper of general circulation in the
province, city or municipality concerned or in the absence thereof, shall be
posted in the provincial capitol, city or municipal hall and in two other
conspicuous public places therein.
SECTION
213. Authority of Assessor to
Take Evidence. — For the purpose of obtaining information on which to base the
market value of any real property, the assessor of the province, city or
municipality or his deputy may summon the owners of the properties to be
affected or persons having legal interest therein and witnesses, administer
oaths, and take deposition concerning the property, its ownership, amount,
nature, and value. aisa dc
SECTION
214. Amendment of Schedule of
Fair Market Values. — The provincial, city or municipal assessor may recommend
to the sanggunian concerned amendments to correct errors in valuation in the
schedule of fair market values. The sanggunian concerned shall, by ordinance,
act upon the recommendation within ninety (90) days from receipt thereof.
SECTION
215. Classes of Real Property for
Assessment Purposes. — For purposes of assessment, real property shall be
classified as residential, agricultural, commercial, industrial, mineral,
timberland or special. cd
The
city or municipality within the Metropolitan Manila Area, through their
respective sanggunian, shall have the power to classify lands as residential,
agricultural, commercial, industrial, mineral, timberland, or special in
accordance with their zoning ordinances.
SECTION
216. Special Classes of Real
Property. — All lands, buildings, and other improvements thereon actually,
directly and exclusively used for hospitals, cultural, or scientific purposes,
and those owned and used by local water districts, and government-owned or
controlled corporations rendering essential public services in the supply and
distribution of water and/or generation and transmission of electric power
shall be classified as special.
SECTION
217. Actual Use of Real Property
as Basis for Assessment. — Real property shall be classified, valued and
assessed on the basis of its actual use regardless of where located, whoever
owns it, and whoever uses it.
SECTION
218. Assessment Levels. — The
assessment levels to be applied to the fair market value of real property to
determine its assessed value shall be fixed by ordinances of the sangguniang
panlalawigan, sangguniang panlungsod or sangguniang bayan of a municipality
within the Metropolitan Manila Area, at the rates not exceeding the
following: cdt
(a) On Lands:
CLASS ASSESSMENT LEVELS
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%
(b) On Buildings and Other Structures: cd i
(1) Residential
Fair
market Value
Over Not
Over Assessment Levels
P175,000.00 0%
P175,000.00 300,000.00 10%
300,000.00 500,000.00 20%
500,000.00 750,000.00 25%
750,000.00 1,000,000.00 30%
1,000,000.00 2,000,000.00 35%
2,000,000.00 5,000,000.00 40%
5,000,000.00 10,000,000.00 50%
10,000,000.00 60%
(2) Agricultural cdasia
Fair
Market Value
Over Not
Over Assessment Levels
P300,000.00 25%
P300,000.00 500,000.00 30%
500,000.00 750,000.00 35%
750,000.00 1,000,000.00 40%
1,000,000.00 2,000,000.00 45%
2,000,000.00 50%
(3) Commercial / Industrial cdtai
Fair
Market Value
Over Not
Over Assessment Levels
P300,000.00 30%
P300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
750,000.00 1,000,000.00 50%
1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
5,000,000.00 10,000,000.00 75%
10,000,000.00 80%
(4) Timberland
Fair
Market Value
Over Not
Over Assessment Levels
P300,000.00 45%
P300,000.00 500,000.00 50%
500,000.00 750,000.00 55%
750,000.00 1,000,000.00 60%
5,000,000.00 2,000,000.00 65%
2,000,000.00 70%
(c) On Machineries
Class Assessment Levels
Agricultural 40%
Residential 50%
Commercial 80%
Industrial 80%
(d) On Special Classes: The assessment levels
for all lands buildings, machineries and other improvements;
Actual Use Assessment Level
Cultural 15%
Scientific 15%
Hospital 15%
Local water districts 10%
Government-owned or
controlled corporations
engaged in the supply
and distribution of water
and/or generation and
transmission of
electric power 10%
SECTION
219. General Revision of
Assessment and Property Classification. — The provincial, city or municipal
assessor shall undertake a general revision of real property assessments within
two (2) years after the effectivity of this Code and every three (3) years
thereafter. cd i
SECTION
220. Valuation of Real Property.
— In cases where (a) real property is declared and listed for taxation purposes
for the first time; (b) there is an ongoing general revision of property
classification and assessment; or (c) a request is made by the person in whose
name the property is declared, the provincial, city or municipal assessor or
his duly authorized deputy shall, in accordance with the provisions of this
Chapter, make a classification, appraisal and assessment or taxpayer's
valuation thereon: Provided, however, That the assessment of real property
shall not be increased oftener than once every three (3) years except in case
of new improvements substantially increasing the value of said property or of
any change in its actual use.
SECTION
221. Date of Effectivity of
Assessment or Reassessment. — All assessments or reassessments made after the
first (1st) day of January of any year shall take effect on the first (1st) day
of January of the succeeding year: Provided, however, That the reassessment of
real property due to its partial or total destruction, or to a major change in
its actual use, or to any great and sudden inflation or deflation of real
property values, or to the gross illegality of the assessment when made or to
any other abnormal cause, shall be made within ninety (90) days from the date
any such cause or causes occurred, and shall take effect at the beginning of
the quarter next following the reassessment.
cd i
SECTION
222. Assessment of Property
Subject to Back Taxes. — Real property declared for the first time shall be
assessed for taxes for the period during which it would have been liable but in
no case of more than ten (10) years prior to the date of initial assessment:
Provided, however, That such taxes shall be computed on the basis of the
applicable schedule of values in force during the corresponding period.
If
such taxes are paid on or before the end of the quarter following the date the
notice of assessment was received by the owner or his representative, no
interest for delinquency shall be imposed thereon; otherwise, such taxes shall
be subject to an interest at the rate of two percent (2%) per month or a
fraction thereof from the date of the receipt of the assessment until such
taxes are fully paid. casia
SECTION
223. Notification of New or
Revised Assessment. — When real property is assessed for the first time or when
an existing assessment is increased or decreased, the provincial, city or
municipal assessor shall within thirty (30) days give written notice of such
new or revised assessment to the person in whose name the property is declared.
The notice may be delivered personally or by registered mail or through the
assistance of the punong barangay to the last known address of the person to be
served.
SECTION
224. Appraisal and Assessment of
Machinery. — (a) The fair market value of a brand-new machinery shall be the
acquisition cost. In all other cases, the fair market value shall be determined
by dividing the remaining economic life of the machinery by its estimated
economic life and multiplied by the replacement or reproduction cost. cdtai
(b) If the machinery is imported, the
acquisition cost includes freight, insurance, bank and other charges,
brokerage, arrastre and handling, duties and taxes, plus charges at the present
site. The cost in foreign currency of imported machinery shall be converted to
peso cost on the basis of foreign currency exchange rates as fixed by the
Central Bank.
SECTION
225. Depreciation Allowance for
Machinery. — For purposes of assessment, a depreciation allowance shall be made
for machinery at a rate not exceeding five percent (5%) of its original cost or
its replacement or reproduction cost, as the case may be, for each year of use:
Provided, however, That the remaining value for all kinds of machinery shall be
fixed at not less than twenty percent (20%) of such original, replacement, or
reproduction cost for so long as the machinery is useful and in operation. acd
CHAPTER
III
Assessment
Appeals
SECTION
226. Local Board of Assessment
Appeals. — Any owner or person having legal interest in the property who is not
satisfied with the action of the provincial, city or municipal assessor in the
assessment of his property may, within sixty (60) days from the date of receipt
of the written notice of assessment, appeal to the Board of Assessment Appeals
of the provincial or city by filing a petition under oath in the form
prescribed for the purpose, together with copies of the tax declarations and
such affidavits or documents submitted in support of the appeal. cdtai
SECTION
227. Organization, Powers, Duties,
and Functions of the Local Board of Assessment Appeals. — (a) The Board of
Assessment Appeals of the province or city shall be composed of the Registrar
of Deeds, as Chairman, the provincial or city prosecutor and the provincial, or
city engineer as members, who shall serve as such in an ex officio capacity
without additional compensation.
(b) The chairman of the Board shall have the
power to designate any employee of the province or city to serve as secretary
to the Board also without additional compensation.
(c) The chairman and members of the Board of
Assessment Appeals of the province or city shall assume their respective
positions without need of further appointment or special designations
immediately upon effectivity of this Code. They shall take oath or affirmation
of office in the prescribed form.
(d) In provinces and cities without a
provincial or city engineer, the district engineer shall serve as member of the
Board. In the absence of the Registrar of Deeds, or the provincial or city prosecutor,
or the provincial or city engineer, or the district engineer, the persons
performing their duties, whether in an acting capacity or as a duly designated
officer-in-charge, shall automatically become the chairman or member,
respectively, of the said Board, as the case may be. acd
SECTION
228. Meetings and Expenses of the
Local Board of Assessment Appeals. — (a) The Board of Assessment Appeals of the
province or city shall meet once a month and as often as may be necessary for
the prompt disposition of appealed cases. No member of the Board shall be
entitled to per diems or traveling expenses for his attendance in Board
meetings, except when conducting an ocular inspection in connection with a case
under appeal.
(b) All expenses of the Board shall be
charged against the general fund of the province or city, as the case may be.
The sanggunian concerned shall appropriate the necessary funds to enable the
Board in their respective localities to operate effectively.
SECTION
229. Action by the Local Board of
Assessment Appeals. — (a) The Board shall decide the appeal within one hundred
twenty (120) days from the date of receipt of such appeal. The Board, after
hearing, shall render its decision based on substantial evidence or such
relevant evidence on record as a reasonable mind might accept as adequate to
support the conclusion. cda
(b) In the exercise of its appellate
jurisdiction, the Board shall have the power to summon witnesses, administer
oaths, conduct ocular inspection, take depositions, and issue subpoena and
subpoena duces tecum. The proceedings of the Board shall be conducted solely
for the purpose of ascertaining the facts without necessarily adhering to
technical rules applicable in judicial proceedings.
(c) The secretary of the Board shall furnish
the owner of the property or the person having legal interest therein and the
provincial or city assessor with a copy of the decision of the Board. In case
the provincial or city assessor concurs in the revision or the assessment, it
shall be his duty to notify the owner of the property or the person having
legal interest therein of such fact using the form prescribed for the purpose.
The owner of the property or the person having legal interest therein or the
assessor who is not satisfied with the decision of the Board, may, within
thirty (30) days after receipt of the decision of said Board, appeal to the
Central Board of Assessment Appeals, as herein provided. The decision of the
Central Board shall be final and executory.
SECTION
230. Central Board of Assessment
Appeals. — The Central Board of Assessment Appeals shall be composed of a
chairman, and two (2) members to be appointed by the President, who shall serve
for a term of seven (7) years, without reappointment. Of those first appointed,
the chairman shall hold office for seven (7) years, one member for five (5)
years, and the other member for three (3) years. Appointment to any vacancy
shall be only for the unexpired portion of the term of the predecessor. In no
case shall any member be appointed or designated in a temporary or acting
capacity. The chairman and the members of the Board shall be Filipino citizens,
at least forty (40) years old at the time of their appointment, and members of
the Bar or Certified Public Accountants for at least ten (10) years immediately
preceding their appointment. The chairman of the Board of Assessment Appeals
shall have the salary grade equivalent to the rank of Director III under the
Salary Standardization Law exclusive of allowances and other emoluments. The
members of the Board shall have the salary grade equivalent to the rank of
Director II under the Salary Standardization Law exclusive of allowances and
other emoluments. The Board shall have appellate jurisdiction over all
assessment cases decided by the Local Board of Assessment Appeals. aisa dc
There
shall be Hearing Officers to be appointed by the Central Board of Assessment
Appeals pursuant to civil service laws, rules and regulations, one each for
Luzon, Visayas and Mindanao, who shall hold office in Manila, Cebu City and
Cagayan de Oro City, respectively, and who shall serve for a term of six (6)
years, without reappointment until their successors have been appointed and
qualified. The Hearing Officers shall have the same qualifications as that of
the Judges of the Municipal Trial Courts.
cdasia
The
Central Board Assessment Appeals, in the performance of its powers and duties,
may establish and organize staffs, offices, units, prescribe the titles,
functions and duties of their members and adopt its own rules and regulations.
Unless
otherwise provided by law, the annual appropriations for the Central Board of
Assessment Appeals shall be included in the budget of the Department of Finance
in the corresponding General Appropriations Act.
SECTION
231. Effect of Appeal on the
Payment of Real Property Tax. — Appeal on assessments of real property made
under the provisions of this Code shall, in no case, suspend the collection of
the corresponding realty taxes on the property involved as assessed by the
provincial or city assessor, without prejudice to subsequent adjustment
depending upon the final outcome of the appeal. cdt
CHAPTER
IV
Imposition
of Real Property Tax
SECTION
232. Power to Levy Real Property
Tax. — A province or city or a municipality within the Metropolitan Manila Area
my levy an annual ad valorem tax on real property such as land, building,
machinery, and other improvement not hereinafter specifically exempted.
SECTION
233. Rates of Levy. — A province
or city or a municipality within the Metropolitan Manila Area shall fix a
uniform rate of basic real property tax applicable to their respective
localities as follows:
(a) In the case of a province, at the rate
not exceeding one percent (1%) of the assessed value of real property; and acd
(b) In the case of a city or a municipality
within the Metropolitan Manila Area, at the rate not exceeding two percent (2%)
of the assessed value of real property.
SECTION
234. Exemptions from Real
Property Tax. — The following are exempted from payment of the real property
tax:
(a) Real property owned by the Republic of
the Philippines or any of its political subdivisions except when the beneficial
use thereof has been granted, for consideration or otherwise, to a taxable
person;
(b) Charitable institutions, churches,
parsonages or convents appurtenant thereto, mosques, non-profit or religious
cemeteries and all lands, buildings, and improvements actually, directly, and
exclusively used for religious, charitable or educational purposes; cda
(c) All machineries and equipment that are
actually, directly and exclusively used by local water districts and government
owned or controlled corporations engaged in the supply and distribution of
water and/or generation and transmission of electric power;
(d) All real property owned by duly
registered cooperatives as provided for under R.A. No. 6938; and
(e) Machinery and equipment used for
pollution control and environmental protection.
Except
as provided herein, any exemption from payment of real property tax previously
granted to, or presently enjoyed by, all persons, whether natural or juridical,
including all government-owned or controlled corporations are hereby withdrawn
upon the effectivity of this Code. cdtai
CHAPTER
V
Special
Levies on Real Property
SECTION
235. Additional Levy on Real
Property for the Special Education Fund. — A province or city, or a
municipality within the Metropolitan Manila Area, may levy and collect an
annual tax of one percent (1%) on the assessed value of real property which
shall be in addition to the basic real property tax. The proceeds thereof shall
exclusively accrue to the Special Education Fund (SEF).
SECTION
236. Additional Ad Valorem Tax on
Idle Lands. — A province or city, or a municipality within the Metropolitan
Manila Area, may levy an annual tax on idle lands at the rate not exceeding
five percent (5%) of the assessed value of the property which shall be in
addition to the basic real property tax.
aisa dc
SECTION
237. Idle Lands, Coverage. — For
purposes of real property taxation, idle lands shall include the following: (a)
Agricultural lands, more than one (1) hectare in area, suitable for
cultivation, dairying, inland fishery, and other agricultural uses, one-half
(1/2) of which remain uncultivated or unimproved by the owner of the property
or person having legal interest therein. Agricultural lands planted to
permanent or perennial crops with at least fifty (50) trees to a hectare shall
not be considered idle lands. Lands actually used for grazing purposes shall
likewise not be considered idle lands.
(b) Lands, other than agricultural, located
in a city or municipality, more than one thousand (1,000) square meters in area
one-half (1/2) of which remain unutilized or unimproved by the owner of the
property or person having legal interest therein.
Regardless
of land area, this Section shall likewise apply to residential lots in
subdivisions duly approved by proper authorities, the ownership of which has
been transferred to individual owners, who shall be liable for the additional
tax: Provided, however, That individual lots of such subdivisions, the
ownership of which has not been transferred to the buyer shall be considered as
part of the subdivision, and shall be subject to the additional tax payable by subdivision
owner or operator. aisa dc
SECTION
238. Idle Lands Exempt from Tax.
— A province or city or a municipality within the Metropolitan Manila Area may
exempt idle lands from the additional levy by reason of force majeure, civil
disturbance, natural calamity or any cause or circumstance which physically or
legally prevents the owner of the property or person having legal interest
therein from improving, utilizing or cultivating the same.
SECTION
239. Listing of Idle Lands by the
Assessor. — The provincial, city or municipal assessor shall make and keep an
updated record of all idle lands located within his area of jurisdiction. For
purposes of collection, the provincial, city or municipal assessor shall
furnish a copy thereof to the provincial or city treasurer who shall notify, on
the basis of such record, the owner of the property or person having legal
interest therein of the imposition of the additional tax.
SECTION
240. Special Levy by Local
Government Units. — A province, city or municipality may impose a special levy
on the lands comprised within its territorial jurisdiction specially benefited
by public works projects or improvements funded by the local government unit
concerned: Provided, however, That the special levy shall not exceed sixty percent
(60%) of the actual cost of such projects and improvements, including the costs
of acquiring land and such other real property in connection therewith:
Provided, further, That the special levy shall not apply to lands exempt from
basic real property tax and the remainder of the land portions of which have
been donated to the local government unit concerned for the construction of
such projects or improvements. cdasia
SECTION
241. Ordinance Imposing a Special
Levy. — A tax ordinance imposing a special levy shall describe with reasonable
accuracy the nature, extent, and location of the public works projects or
improvements to be undertaken, state the estimated cost thereof, specify the
metes and bounds by monuments and lines and the number of annual installments
for the payment of the special levy which in no case shall be less than five
(5) nor more than ten (10) years. The sanggunian concerned shall not be
obliged, in the apportionment and computation of the special levy, to establish
a uniform percentage of all lands subject to the payment of the tax for the
entire district, but it may fix different rates for different parts or sections
thereof, depending on whether such land is more or less benefited by proposed
work.
SECTION
242. Publication of Proposed
Ordinance Imposing a Special Levy. — Before the enactment of an ordinance
imposing a special levy, the sanggunian concerned shall conduct a public
hearing thereon; notify in writing the owners of the real property to be
affected or the persons having legal interest therein as to the date and place
thereof and afford the latter the opportunity to express their positions or
objections relative to the proposed ordinance.
SECTION
243. Fixing the Amount of Special
Levy. — The special levy authorized herein shall be apportioned, computed, and
assessed according to the assessed valuation of the lands affected as shown by
the books of the assessor concerned, or its current assessed value as fixed by
said assessor if the property does not appear of record in his books. Upon the
effectivity of the ordinance imposing special levy, the assessor concerned
shall forthwith proceed to determine the annual amount of special levy assessed
against each parcel of land comprised within the area especially benefited and
shall send to each landowner a written notice thereof by mail, personal service
or publication in appropriate cases. cd
SECTION
244. Taxpayer's Remedies Against
Special Levy. — Any owner of real property affected by a special levy or any
person having a legal interest therein may, upon receipt of the written notice
of assessment of the special levy, avail of the remedies provided for in
Chapter 3, Title Two, Book II of this Code.
SECTION
245. Accrual of Special Levy. —
The special levy shall accrue on the first day of the quarter next following
the effectivity of the ordinance imposing such levy.
CHAPTER
VI
Collection
of Real Property Tax
SECTION
246. Date of Accrual of Tax. —
The real property tax for any year shall accrue on the first day of January and
from that date it shall constitute a lien on the property which shall be
superior to any other lien, mortgage, or encumbrance of any kind whatsoever,
and shall be extinguished only upon the payment of the delinquent tax.
SECTION
247. Collection of Tax. — The
collection of the real property tax with interest thereon and related expenses,
and the enforcement of the remedies provided for in this Title or any
applicable laws, shall be the responsibility of the city or municipal treasurer
concerned.
The
city or municipal treasurer may deputize the barangay treasurer to collect all
taxes on real property located in the barangay: Provided, That the barangay
treasurer is properly bonded for the purpose: Provided, further, That the
premium on the bond shall be paid by the city or municipal government
concerned.
SECTION
248. Assessor to Furnish Local
Treasurer with Assessment Roll. — The provincial, city or municipal assessor
shall prepare and submit to the treasurer of the local government unit, on or
before the thirty-first (31st) day of December each year, an assessment roll
containing a list of all persons whose real properties have been newly assessed
or reassessed and the values of such properties. acd
SECTION
249. Notice of Time for
Collection of Tax. — The city or municipal treasurer shall, on or before the
thirty-first (31st) day of January each year, in the case of the basic real
property tax and the additional tax for the Special Education Fund (SEF) or any
other date to be prescribed by the sanggunian concerned in the case of any
other tax levied under this title, post the notice of the dates when the tax
may be paid without interest at a conspicuous and publicly accessible place at
the city or municipal hall. Said notice shall likewise be published in a
newspaper of general circulation in the locality once a week for two (2)
consecutive weeks.
SECTION
250. Payment of Real Property
Taxes in Installments. — The owner of the real property or the person having
legal interest therein may pay the basic real property tax and the additional
tax for Special Education Fund (SEF) due thereon without interest in four (4)
equal installments; the first installment to be due and payable on or before
March Thirty-first (31st); the second installment, on or before June Thirty
(30); the third installment, on or before September Thirty (30); and the last
installment on or before December Thirty-first (31st), except the special levy
the payment of which shall be governed by ordinance of the sanggunian
concerned.
The
date for the payment of any other tax imposed under this Title without interest
shall be prescribed by the sanggunian concerned.
Payments
of real property taxes shall first be applied to prior years delinquencies,
interests, and penalties, if any, and only after said delinquencies are settled
may tax payments be credited for the current period. cdasia
SECTION
251. Tax Discount for Advanced
Prompt Payment. — If the basic real property tax and the additional tax
accruing to the Special Education Fund (SEF) are paid in advance in accordance
with the prescribed schedule of payment as provided under Section 250, the
sanggunian concerned may grant a discount not exceeding twenty percent (20%) of
the annual tax due.
SECTION
252. Payment Under Protest. — (a)
No protest shall be entertained unless the taxpayer first pays the tax. There
shall be annotated on the tax receipts the words "paid under
protest". The protest in writing must be filed within thirty (30) days
from payment of the tax to the provincial, city treasurer or municipal
treasurer, in the case of a municipality within Metropolitan Manila Area, who
shall decide the protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under
protest, shall be held in trust by the treasurer concerned.
(c) In the event that the protest is finally
decided in favor of the taxpayer, the amount or portion of the tax protested
shall be refunded to the protestant, or applied as tax credit against his
existing or future tax liability.
(d) In the event that the protest is denied
or upon the lapse of the sixty day period prescribed in subparagraph (a), the
taxpayer may avail of the remedies as provided for in Chapter 3, Title II, Book
II of this Code.
SECTION
253. Repayment of Excessive
Collections. — When an assessment of basic real property tax, or any other tax
levied under this Title, is found to be illegal or erroneous and the tax is
accordingly reduced or adjusted, the taxpayer may file a written claim for
refund or credit for taxes and interests with the provincial or city treasurer
within two (2) years from the date the taxpayer is entitled to such reduction
or adjustment.
The
provincial or city treasurer shall decide the claim for tax refund or credit
within sixty (60) days from receipt thereof. In case the claim for tax refund
or credit is denied, the taxpayer may avail of the remedies as provided in
Chapter 3, Title II, Book II of this Code.
aisa dc
SECTION
254. Notice of Delinquency in the
Payment of the Real Property Tax. — (a) When the real property tax or any other
tax imposed under this Title becomes delinquent, the provincial, city or
municipal treasurer shall immediately cause a notice of the delinquency to be
posted at the main hall and in a publicly accessible and conspicuous place in each
barangay of the local government unit concerned. The notice of delinquency
shall also be published once a week for two (2) consecutive weeks, in a
newspaper of general circulation in the province, city, or municipality.
(b) Such notice shall specify the date upon
which the tax became delinquent and shall state that personal property may be
distrained to effect payment. It shall likewise state that any time before the
distraint of personal property, payment of the tax with surcharges, interests
and penalties may be made in accordance with the next following Section, and
unless the tax, surcharges and penalties are paid before the expiration of the
year for which the tax is due except when the notice of assessment or special
levy is contested administratively or judicially pursuant to the provisions of
Chapter 3, Title II, Book II of this Code, the delinquent real property will be
sold at public auction, and the title to the property will be vested in the
purchaser, subject, however, to the right of the delinquent owner of the
property or any person having legal interest therein to redeem the property
within one (1) year from the date of sale.
SECTION
255. Interests on Unpaid Real
Property Tax. — In case of failure to pay the basic real property tax or any other
tax levied under this Title upon the expiration of the periods as provided in
Section 250, or when due, as the case may be, shall subject the taxpayer to the
payment of interest at the rate of two percent (2%) per month on the unpaid
amount or a fraction thereof, until the delinquent tax shall have been fully
paid: Provided, however, That in no case shall the total interest on the unpaid
tax or portion thereof exceed thirty-six (36) months. cd i
SECTION
256. Remedies For The Collection
Of Real Property Tax. — For the collection of the basic real property tax and
any other tax levied under this Title, the local government unit concerned may
avail of the remedies by administrative action thru levy on real property or by
judicial action.
SECTION
257. Local Governments Lien. —
The basic real property tax and any other tax levied under this Title
constitutes a lien on the property subject to tax, superior to all liens,
charges or encumbrances in favor of any person, irrespective of the owner or
possessor thereof, enforceable by administrative or judicial action, and may
only be extinguished upon payment of the tax and the related interests and
expenses. IcSADC
SECTION
258. Levy on Real Property. —
After the expiration of the time required to pay the basic real property tax or
any other tax levied under this Title, real property subject to such tax may be
levied upon through the issuance of a warrant on or before, or simultaneously
with, the institution of the civil action for the collection of the delinquent
tax. The provincial or city treasurer, or a treasurer of a municipality within
the Metropolitan Manila Area, as the case may be, when issuing a warrant of
levy shall prepare a duly authenticated certificate showing the name of the
delinquent owner of the property or person having legal interest therein, the
description of the property, the amount of the tax due and the interest
thereon. The warrant shall operate with the force of a legal execution
throughout the province, city or a municipality, within the Metropolitan Manila
Area. The warrant shall be mailed to or served upon the delinquent owner of the
real property or person having legal interest therein, or in case he is out of
the country or cannot be located, the administrator or occupant of the property.
At the same time, written notice of the levy with the attached warrant shall be
mailed to or served upon the assessor and the Registrar of Deeds of the
province, city or municipality within the Metropolitan Manila Area where the
property is located, who shall annotate the levy on the tax declaration and
certificate of title of the property, respectively. cd i
The
levying officer shall submit a report on the levy to the sanggunian concerned
within ten (10) days after receipt of the warrant by the owner of the property
or person having legal interest therein.
SECTION
259. Penalty for Failure to Issue
and Execute Warrant. — Without prejudice to criminal prosecution under the
Revised Penal Code and other applicable laws, any local treasurer or his deputy
who fails to issue or execute the warrant of levy within one (1) year from the
time the tax becomes delinquent or within thirty (30) days from the date of the
issuance thereof, or who is found guilty of abusing the exercise thereof in an
administrative or judicial proceeding shall be dismissed from the service.
SECTION
260. Advertisement and
Within
thirty (30) days after the sale, the local treasurer or his deputy shall make a
report of the sale to the sanggunian concerned, and which shall form part of
his records. The local treasurer shall likewise prepare and deliver to the
purchaser a certificate of sale which shall contain the name of the purchaser,
a description of the property sold, the amount of the delinquent tax, the
interest due thereon, the expenses of sale and a brief description of the
proceedings: Provided, however, That proceeds of the sale in excess of the
delinquent tax, the interest due thereon, and the expenses of sale shall be remitted
to the owner of the real property or person having legal interest therein.
The
local treasurer may, by ordinance duly approved, advance an amount sufficient
to defray the costs of collection thru the remedies provided for in this Title,
including the expenses of advertisement and sale. cdtai
SECTION
261. Redemption of Property Sold.
— Within one (1) year from the date of sale, the owner of the delinquent real
property or person having legal interest therein, or his representative, shall
have the right to redeem the property upon payment to the local treasurer of
the amount of the delinquent tax, including the interest due thereon, and the
expenses of sale from the date of delinquency to the date of sale, plus
interest of not more than two percent (2%) per month on the purchase price from
the date of sale to the date of redemption. Such payment shall invalidate the
certificate of sale issued to the purchaser and the owner of the delinquent
real property or person having legal interest therein shall be entitled to a
certificate of redemption which shall be issued by the local treasurer or his
deputy.
From
the date of sale until the expiration of the period of redemption, the
delinquent real property shall remain in possession of the owner or person having
legal interest therein who shall be entitled to the income and other fruits
thereof.
The
local treasurer or his deputy, upon receipt from the purchaser of the
certificate of sale, shall forthwith return to the latter the entire amount
paid by him plus interest of not more than two percent (2%) per month.
Thereafter, the property shall be free from lien of such delinquent tax,
interest due thereon and expenses of sale.
casia
SECTION
262. Final Deed to Purchaser. —
In case the owner or person having legal interest fails to redeem the
delinquent property as provided herein, the local treasurer shall execute a
deed conveying to the purchaser said property, free from lien of the delinquent
tax, interest due thereon and expenses of sale. The deed shall briefly state
the proceedings upon which the validity of the sale rests.
SECTION
263. Purchase of Property By the
Local Government Units for Want of Bidder. — In case there is no bidder for the
real property advertised for sale as provided herein, the real property tax and
the related interest and costs of sale the local treasurer conducting the sale
shall purchase the property in behalf of the local government unit concerned to
satisfy the claim and within two (2) days thereafter shall make a report of his
proceedings which shall be reflected upon the records of his office. It shall
be the duty of the Registrar of Deeds concerned upon registration with his
office of any such declaration of forfeiture to transfer the title of the
forfeited property to the local government unit concerned without the necessity
of an order from a competent court. cd
i
Within
one (1) year from the date of such forfeiture, the taxpayer or any of his
representative, may redeem the property by paying to the local treasurer the
full amount of the real property tax and the related interest and the costs of
sale. If the property is not redeemed as provided herein, the ownership thereof
shall be vested on the local government unit concerned. casia
SECTION
264. Resale of Real Estate Taken
for Taxes, Fees, or Charges. — The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell and dispose
of the real property acquired under the preceding section at public auction.
The proceeds of the sale shall accrue to the general fund of the local
government unit concerned.
SECTION
265. Further Distraint or Levy. —
Levy may be repeated if necessary until the full amount due, including all
expenses, is collected.
SECTION
266. Collection of Real Property
Tax Through the Courts. — The local government unit concerned may enforce the
collection of the basic real property tax or any other tax levied under this
Title by civil action in any court of competent jurisdiction. The civil action
shall be filed by the local treasurer within the period prescribed in Section
270 of this Code.
SECTION
267. Action Assailing Validity of
Tax
Neither
shall any court declare a sale at public auction invalid by reason or
irregularities or informalities in the proceedings unless the substantive
rights of the delinquent owner of the real property or the person having legal
interest therein have been impaired.
SECTION
268. Payment of Delinquent Taxes
on Property Subject of Controversy. — In any action involving the ownership or
possession of, or succession to, real property, the court may, motu propio or
upon representation of the provincial, city, or municipal treasurer or his
deputy, award such ownership, possession, or succession to any party to the
action upon payment to the court of the taxes with interest due on the property
and all other costs that may have accrued, subject to the final outcome of the
action. cdtai
SECTION
269. Treasurer to Certify
Delinquencies Remaining Uncollected. — The provincial, city or municipal
treasurer or their deputies shall prepare a certified list of all real property
tax delinquencies which remained uncollected or unpaid for at least one (1)
year in his jurisdiction, and a statement of the reason or reasons for such
non-collection or non-payment, and shall submit the same to the sanggunian
concerned on or before December thirty-first (31st) of the year immediately
succeeding the year in which the delinquencies were incurred, with a request
for assistance in the enforcement of the remedies for collection provided
herein.
SECTION
270. Periods Within Which To
Collect Real Property Taxes. — The basic real property tax and any other tax
levied under this Title shall be collected within five (5) years from the date
they become due. No action for the collection of the tax, whether
administrative or judicial, shall be instituted after the expiration of such
period. In case of fraud or intent to evade payment of the tax, such action may
be instituted for the collection of the same within ten (10) years from the
discovery of such fraud or intent to evade payment. cd
The
period of prescription within which to collect shall be suspended for the time
during which:
(1) The local treasurer is legally prevented
from collecting the tax;
(2) The owner of the property or the person
having legal interest therein requests for reinvestigation and executes a
waiver in writing before the expiration of the period within which to collect;
and
(3) The owner of the property or the person
having legal interest therein is out of the country or otherwise cannot be
located.
CHAPTER
VII
Disposition
of Proceeds
SECTION
271. Distribution of Proceeds. —
The proceeds of the basic real property tax, including interest thereon, and
proceeds from the use, lease or disposition, sale or redemption of property
acquired at a public auction in accordance with the provisions of this Title by
the province or city or a municipality within the Metropolitan Manila Area
shall be distributed as follows:
(a) In the case of provinces:
(1) Province — Thirty-five percent (35%)
shall accrue to the general fund;
(2) Municipality — Forty percent (40%) to the
general fund of the municipality where the property is located; and
(3) Barangay — Twenty-five percent (25%)
shall accrue to the barangay where the property is located.
(b) In the case of cities:
(1) City — Seventy percent (70%) shall accrue
to the general fund of the city; and
(2) Thirty percent (30%) shall be distributed
among the component barangays of the cities where the property is located in
the following manner: casia
(i) Fifty percent (50%) shall accrue to the
barangay where the property is located;
(ii) Fifty percent (50%) shall accrue equally
to all component barangays of the city; and
(c) In the case of a municipality within the
Metropolitan Manila Area:
(1) Metropolitan Manila Authority —
Thirty-five percent (35%) shall accrue to the general fund of the authority;
(2) Municipality — Thirty-five percent (35%
shall accrue to the general fund of the municipality where the property is
located; cd i
(3) Barangays — Thirty percent (30%) shall be
distributed among the component barangays of the municipality where the
property is located in the following manner:
(i) Fifty percent (50%) shall accrue to the
barangay where the property is located;
(ii) Fifty percent (50%) shall accrue equally
to all component barangays of the municipality.
(d) The share of each barangay shall be
released, without need of any further action, directly to the barangay
treasurer on a quarterly basis within five (5) days after the end of each
quarter and shall not be subject to any lien or holdback for whatever purpose.
SECTION
272. Application of Proceeds of
the Additional One Percent SEF Tax. — The proceeds from the additional one
percent (1%) tax on real property accruing to the Special Education Fund (SEF)
shall be automatically released to the local school boards: Provided, That, in
case of provinces, the proceeds shall be divided equally between the provincial
and municipal school boards: Provided, however, That the proceeds shall be
allocated for the operation and maintenance of public schools, construction and
repair of school buildings, facilities and equipment, educational research,
purchase of books and periodicals, and sports development as determined and
approved by the Local School Board.
casia
SECTION
273. Proceeds of the Tax on Idle
Lands. — The proceeds of the additional real property tax on idle lands shall
accrue to the respective general fund of the province or city where the land is
located. In the case of a municipality within the Metropolitan Manila Area, the
proceeds shall accrue equally to the Metropolitan Manila Authority and the
municipality where the land is located. cdasia
SECTION
274. Proceeds of the Special
Levy. — The proceeds of the special levy on lands benefited by public works,
projects and other improvements shall accrue to the general fund of the local
government unit which financed such public works, projects or other improvements.
CHAPTER
VIII
Special
Provisions
SECTION
275. General Assessment Revision;
Expenses Incident Thereto. — The sanggunian of provinces, cities and
municipalities within the Metropolitan Manila Area shall provide the necessary
appropriations to defray the expenses incident to the general revision of real
property assessment. cdtai
All
expenses incident to a general revision of real property assessment shall, by
ordinance of the sangguniang panlalawigan, be apportioned between the province
and the municipality on the basis of the taxable area of the municipality
concerned.
SECTION
276. Condonation or Reduction of
Real Property Tax and Interest. — In case of a general failure of crops or
substantial decrease in the price of agricultural or agribased products, or
calamity in any province, city or municipality, the sanggunian concerned, by
ordinance passed prior to the first (1st) day of January of any year and upon
recommendation of the Local Disaster Coordinating Council, may condone or
reduce, wholly or partially, the taxes and interest thereon for the succeeding
year or years in the city or municipality affected by the calamity.
SECTION
277. Condonation or Reduction of
Tax by the President of the
SECTION
278. Duty of Registrar of Deeds
and Notaries Public to Assist the Provincial, City or Municipal Assessor. — It
shall be the duty of the Registrar of Deeds and notaries public to furnish the
provincial, city or municipal assessor with copies of all contracts selling,
transferring, or otherwise conveying, leasing, or mortgaging real property
received by, or acknowledged before them.
SECTION
279. Insurance Companies to
Furnish Information. — Insurance companies are hereby required to furnish the
provincial, city or municipal assessor copies of any contract or policy
insurance on buildings, structures, and improvements insured by them or such
other documents which may be necessary for the proper assessment thereof. IcSADC
SECTION
280. Fees in Court Actions. — All
court actions, criminal or civil, instituted at the instance of the provincial,
city or municipal treasurer or assessor under the provisions of this Code,
shall be exempt from the payment of court and sheriff's fees.
SECTION
281. Fees in Registration of
Papers or Documents on
SECTION
282. Real Property Assessment
Notices or Owner's Copies of Tax Declarations to be Exempt from Postal Charges
or Fees. — All real property assessment notices or owner's copies of tax
declaration sent through the mails by the assessor shall be exempt from the
payment of postal charges or fees.
SECTION
283.
TITLE
III.
Shares
of Local Government Units in the Proceeds of National Taxes
CHAPTER
I
Allotment
of Internal Revenue
SECTION
284. Allotment of Internal
Revenue Taxes. — Local government units shall have a share in the national
internal revenue taxes based on the collection of the third fiscal year
preceding the current fiscal year as follows:
(a) On the first year of the effectivity of
this Code, thirty percent (30%);
(b) On the second year, thirty-five percent
(35%); and cd i
(c) On the third year and thereafter, forty
percent (40%).
Provided,
That in the event that the national government incurs an unmanageable public
sector deficit, the President of the Philippines is hereby authorized, upon the
recommendation of Secretary of Finance, Secretary of Interior and Local
Government and Secretary of Budget and Management, and subject to consultation
with the presiding officers of both Houses of Congress and the presidents of
the "liga", to make the necessary adjustments in the internal revenue
allotment of local government units but in no case shall the allotment be less
than thirty percent (30%) of the collection of national internal revenue taxes
of the third fiscal year preceding the current fiscal year: Provided, further,
That in the first year of the effectivity of this Code, the local government
units shall, in addition to the thirty percent (30%) internal revenue allotment
which shall include the cost of devolved functions for essential public
services, be entitled to receive the amount equivalent to the cost of devolved
personal services.
SECTION
285. Allocation to Local
Government Units. — The share of local government units in the internal revenue
allotment shall be collected in the following manner: casia
(a) Provinces — Twenty-three percent (23%);
(b) Cities — Twenty-three percent (23%);
(c) Municipalities — Thirty-four percent
(34%); and
(d) Barangays — Twenty percent (20%)
Provided,
however, That the share of each province, city, and municipality shall be
determined on the basis of the following formula: aisa dc
(a) Population — Fifty percent (50%);
(b) Land Area — Twenty-five percent (25%);
and
(c) Equal sharing — Twenty-five percent
(25%)
Provided,
further, That the share of each barangay with a population of not less than one
hundred (100) inhabitants shall not be less than Eighty thousand (P80,000.00)
per annum chargeable against the twenty percent (20%) share of the barangay
from the internal revenue allotment, and the balance to be allocated on the
basis of the following formula: cdt
(a) On the first year of the effectivity of
this Code:
(1) Population — Forty percent (40%); and
(2) Equal sharing — Sixty percent (60%)
(b) On the second year:
(1) Population — Fifty percent (50%); and
(2) Equal sharing — Fifty percent (50%)
(c) On the third year and thereafter:
(1) Population — Sixty percent (60%); and
(2) Equal sharing — Forty percent (40%).
Provided,
finally, That the financial requirements of barangays created by local
government units after the effectivity of this Code shall be the responsibility
of the local government unit concerned.
aisa dc
SECTION
286. Automatic Release of Shares.
— (a) The share of each local government unit shall be released, without need
of any further action, directly to the provincial, city, municipal or barangay
treasurer, as the case may be, on a quarterly basis within five (5) days after
the end of each quarter, and which shall not be subject to any lien or holdback
that may be imposed by the national government for whatever purpose.
(b) Nothing in this Chapter shall be
understood to diminish the share of local government units under existing
laws. cda
SECTION
287. Local Development Projects.
— Each local government unit shall appropriate in its annual budget no less
than twenty percent (20%) of its annual internal revenue allotment for
development projects. Copies of the development plans of local government units
shall be furnished the Department of Interior and Local Government.
SECTION
288. Rules and Regulations. — The
Secretary of Finance, in consultation with the Secretary of Budget and
Management, shall promulgate the necessary rules and regulations for a
simplified disbursement scheme designed for the speedy and effective
enforcement of the provisions of this Chapter.
CHAPTER
II
Share
of Local Government Units in the National Wealth
SECTION
289. Share in the Proceeds from
the Development and Utilization of the National Wealth. — Local government
units shall have an equitable share in the proceeds derived from the
utilization and development of the national wealth within their respective
areas, including sharing the same with the inhabitants by way of direct
benefits. cd
SECTION
290. Amount of Share of Local
Government Units. — Local government units shall, in addition to the internal
revenue allotment, have a share of forty percent (40%) of the gross collection
derived by the national government from the preceding fiscal year from mining
taxes, royalties, forestry and fishery charges, and such other taxes, fees, or
charges, including related surcharges, interests, or fines, and from its share
in any co-production, joint venture or production sharing agreement in the
utilization and development of the national wealth within their territorial
jurisdiction.
SECTION
291. Share of the Local
Governments from any Government Agency or Owned or Controlled Corporation. —
Local government units shall have a share based on the preceding fiscal year
from the proceeds derived by any government agency or government-owned or
controlled corporation engaged in the utilization and development of the
national wealth based on the following formula whichever will produce a higher
share for the local government unit:
acd
(a) One percent (1%) of the gross sales or
receipts of the preceding calendar year; or
(b) Forty percent (40%) of the mining taxes,
royalties, forestry and fishery charges and such other taxes, fees or charges,
including related surcharges, interests, or fines the government agency or
government owned or controlled corporation would have paid if it were not
otherwise exempt.
SECTION
292. Allocation of Shares. — The
share in the preceding Section shall be distributed in the following
manner: cd
(a) Where the natural resources are located
in the province:
(1) Province — Twenty percent (20%);
(2) Component City/Municipality — Forty-five
percent (45%); and
(3) Barangay — Thirty-five percent (35%)
Provided,
however, That where the natural resources are located in two (2) or more
provinces, or in two (2) or more component cities or municipalities or in two
(2) or more barangays, their respective shares shall be computed on the basis
of: acd
(1) Population — Seventy percent (70%); and
(2) Land area — Thirty percent (30%)
(b) Where the natural resources are located
in a highly urbanized or independent component city:
(1) City — Sixty-five percent (65%); and
(2) Barangay — Thirty-five percent (35%)
Provided,
however, That where the natural resources are located in such two (2) or more
cities, the allocation of shares shall be based on the formula on population
and land area as specified in paragraph (a) of this Section.
SECTION
293. Remittance of the Share of
Local Government Units. — The share of local government units from the
utilization and development of national wealth shall be remitted in accordance
with Section 286 of this Code: Provided, however, That in the case of any
government agency or government-owned or controlled corporation engaged in the
utilization and development of the national wealth, such share shall be
directly remitted to the provincial, city, municipal or barangay treasurer
concerned within five (5) days after the end of each quarter. cd
SECTION
294. Development and Livelihood
Projects. — The proceeds from the share of local government units pursuant to
this chapter shall be appropriated by their respective sanggunian to finance
local government and livelihood projects: Provided, however, That at least
eighty percent (80%) of the proceeds derived from the development and
utilization of hydrothermal. geothermal, and other sources of energy shall be
applied solely to lower the cost of electricity in the local government unit
where such a source of energy is located.
TITLE
IV.
Credit
Financing
SECTION
295. Scope. — This Title shall
govern the power of local government units to create indebtedness and to enter
into credit and other financial transactions.
SECTION
296. General Policy. — (a) It
shall be the basic policy that any local government unit may create
indebtedness, and avail of credit facilities to finance local infrastructure
and other socio-economic development projects in accordance with the approved
local development plan and public investment program. cda
(b) A local government unit may avail of
credit lines from government or private banks and lending institutions for the
purpose of stabilizing local finances.
SECTION
297. Loans, Credits, and Other
Forms of Indebtedness of Local Government Units. — (a) A local government unit may
contract loans, credits, and other forms of indebtedness with any government or
domestic private bank and other lending institutions to finance the
construction, installation, improvement, expansion, operation, or maintenance
of public facilities, infrastructure facilities, housing projects, the
acquisition of real property, and the implementation of other capital
investment projects, subject to such terms and conditions as may be agreed upon
by the local government unit and the lender. The proceeds from such
transactions shall accrue directly to the local government unit concerned. cda
(b) A local government unit may likewise
secure from any government bank and lending institution short, medium and
long-term loans and advances against security of real estate or other
acceptable assets for the establishment, development, or expansion of
agricultural, industrial, commercial, house financing projects, livelihood
projects, and other economic enterprises.
(c) Government financial and other lending
institutions are hereby authorized to grant loans, credits, and other forms of
indebtedness out of their loanable funds to local government units for purposes
specified above.
SECTION
298. Deferred-Payment and other
Financial Schemes. — Provincial, city and municipal governments may likewise
acquire property, plant, machinery, equipment, and such necessary accessories
under a supplier's credit, deferred payment plan, or either financial
scheme. cda
SECTION
299. Bonds and Other Long-Term
Securities. — Subject to the rules and regulations of the Central Bank and the
Securities and Exchange Commission, provinces, cities, and municipalities are
hereby authorized to issue bonds, debentures, securities, collaterals, notes
and other obligations to finance self-liquidating, income-producing development
or livelihood projects pursuant to the priorities established in the approved
local development plan or the public investment program. The sanggunian
concerned shall, through an ordinance approved by a majority of all its members,
declare and state the terms and conditions of the bonds and the purpose for
which the proposed indebtedness is to be incurred.
SECTION
300. Inter-Local Government
Loans, Grants, and Subsidies. — Provinces, cities, and municipalities may, upon
approval of the majority of all members of the sanggunian concerned and in
amounts not exceeding their surplus funds, extend loans, grants, or subsidies
to other local government units under such terms and conditions as may be
agreed upon by the contracting parties.
Local
government units may, upon approval of their respective sanggunian, jointly or
severally contract loans, credits, and other forms of indebtedness for purposes
mutually beneficial to them. aisa dc
SECTION
301. Loans from Funds Secured by
the National Government from Foreign Sources. — (a) The President, or his duly
authorized representative, may, through any government financial or other
lending institution, relend to any province, city, municipality, or barangay,
the proceeds of loans contracted with foreign financial institutions or other
international funding agencies for the purpose of financing the construction,
installation, improvement, expansion, operation, or maintenance of public
utilities and facilities, infrastructure facilities, or housing projects, the
acquisition of real property, and the implementation of other capital
investment projects, subject to such terms and conditions as may be agreed upon
by the President and the local government unit. The proceeds from such loans
shall accrue directly to the local government concerned. acd
(b) The President may likewise authorize the
relending to local government units the proceeds of grants secured from foreign
sources, subject to the provisions of existing laws and the applicable grant
agreements. (c) Repayment or amortization of loans including accrued interest
thereon, may be financed partly from the income of the projects or services and
from the regular income of the local government unit, which must be provided
for and appropriated regularly in its annual budget until the loan and the
interest thereon shall have been fully paid.
SECTION
302. Financing, Construction,
Maintenance, Operation, and Management of Infrastructure Projects by the
Private Sector. — (a) Local government units may enter into contracts with any
duly prequalified individual contractor, for the financing, construction,
operation, and maintenance of any financially viable infrastructure facilities,
under the build-operate-transfer agreement, subject to the applicable
provisions of Republic Act Numbered Sixty-nine hundred fifty-seven (R.A. No.
6957) authorizing the financing, construction, operation and maintenance of
infrastructure projects by the private sector and the rules and regulations
issued thereunder and such terms and conditions provided in this Section. acd
(b) Local government units shall include in
their respective local development plans and public investment programs
priority projects that may be financed, constructed, operated and maintained by
the private sector under this Section. It shall be the duty of the local
government unit concerned to disclose to the public all projects eligible for
financing under this Section, including official notification of duly
registered contractors and publications in newspapers of general or local
circulation and in conspicuous and accessible public places. Local projects
under the build-operate-and-transfer agreement shall be confirmed by the local
development councils.
(c) Projects implemented under this Section
shall be subject to the following terms and conditions: cdtai
(1) The provincial, city or municipal
engineer, as the case may be, upon formal request in writing by the local chief
executive, shall prepare the plans and specifications for the proposed
projects, which shall be submitted to the sanggunian for approval.
(2) Upon approval by the sanggunian of the
project plans and specifications, the provincial, city, or municipal engineer
shall, as the case may be, cause to be published once every week, for two (2)
consecutive weeks in at least one (1) local newspaper which is circulated in
the region, province, city or municipality in which the project is to be
implemented, a notice inviting all duly qualified contractors to participate in
a public bidding for the projects so approved. The conduct of public bidding
and award of contracts for local government projects under this Section shall
be in accordance with this Code and other applicable laws, rules and
regulations.
In
the case of a build-operate-and-transfer agreement, the contract shall be
awarded to the lowest complying bidder whose offer is deemed most advantageous
to the local government and based on the present value of its proposed tolls,
fees, rentals, and charges over a fixed term for the facility to be
constructed, operated, and maintained according to the prescribed minimum
design and performance standards, plans, and specifications. For this purpose,
the winning contractor shall be automatically granted by the local government
unit concerned the franchise to operate and maintain the facility, including
the collection of tolls, fees, rentals, and charges in accordance with
subsection (c-4) hereof. cdtai
In
the case of a build-operate-and-transfer agreement, the contract shall be
awarded to the lowest complying bidder based on the present value of its
proposed schedule of amortization payments for the facility to be constructed
according to the prescribed minimum design and performance standards, plans,
and specifications.
(3) Any contractor who shall undertake the
prosecution of any project under this Section shall post the required bonds to
protect the interest of the province, city, or municipality, in such amounts as
may be fixed by the sanggunian concerned and the provincial, city or municipal
engineer shall not, as the case may be, allow any contractor to initiate the
prosecution of projects under this Section unless such contractor presents
proof or evidence that he has posted the required bond. cd i
(4) The contractor shall be entitled to a
reasonable return of its investment in accordance with its bid proposal as
accepted by the local government unit concerned.
In
the case of a build-operate-and-transfer agreement, the repayment shall be made
by authorizing the contractor to charge and collect reasonable tolls, fees,
rentals, and charges for the use of the project facility not exceeding those
proposed in the bid and incorporated in the contract: Provided, That the local
government unit concerned shall, based on reasonableness and equity, approve
the tolls, fees, rentals and charges: Provided, further, That the imposition
and collection of tolls, fees, rentals and charges shall be for a fixed period
as proposed in the bid and incorporated in the contract which shall in no case
exceed fifty (50) years: Provided, finally, That during the lifetime of the
contract, the contractor shall undertake the necessary maintenance and repair
of the facility in accordance with standards prescribed in the bidding
documents and in the contract. cd
In
the case of a build-operate-and-transfer agreement, the repayment shall be made
through amortization payments in accordance with the schedule proposed in the
bid and incorporated in the contract.
In
case of land reclamation or construction of industrial estates, the repayment
plan may consist of the grant of a portion or percentage of the reclaimed land
or the industrial estate constructed.
(5) Every infrastructure project undertaken
under this Section shall be constructed, operated, and maintained by the
contractor under the technical supervision of the local government unit and in
accordance with the plans, specifications, standards, and costs approved by
it. cda
(d) The provincial, city, or municipal legal
officer shall, as the case may be, review the contracts executed pursuant to
this Section to determine their legality, validity, enforceability and
correctness of form.
SECTION
303. Remedies and Sanctions. —
Local government unit shall appropriate in their respective annual budgets such
amounts as are sufficient to pay the loans and other indebtedness incurred or
redeem or retire bonds, debentures, securities, notes and other obligations
issued under this Title: Provided, That failure to provide the appropriations
herein required shall render their annual budgets inoperative.
TITLE
V.
Local
Fiscal Administration
CHAPTER
I
General
Provisions
SECTION
304. Scope. — This Title shall
govern the conduct and management of financial affairs, transactions, and
operations of provinces, cities, municipalities, and barangays. cda
SECTION
305. Fundamental Principles. —
The financial affairs, transactions, and operations of local government units
shall be governed by the following fundamental principles:
(a) No money shall be paid out of the local
treasury except in pursuance of an appropriations ordinance or law;
(b) Local government funds and monies shall
be spent solely for public purposes;
(c) Local revenue is generated only from
sources expressly authorized by law or ordinance, and collection thereof shall
at all times be acknowledged properly;
(d) All monies officially received by a local
government officer in any capacity or on any occasion shall be accounted for as
local funds, unless otherwise provided by law;
(e) Trust funds in the local treasury shall
not be paid out except in fulfillment of the purpose for which the trust was
created or the funds received;
(f) Every officer of the local government
unit whose duties permit or require the possession or custody of local funds
shall be properly bonded, and such officer shall be accountable and responsible
for said funds and for the safekeeping thereof in conformity with the
provisions of law;
(g) Local governments shall formulate sound
financial plans, and local budgets shall be based on functions, activities, and
projects, in terms of expected results;
(h) Local budget plans and goals shall, as
far as practicable, be harmonized with national development plans, goals, and
strategies in order to optimize the utilization of resources and to avoid duplication
in the use of fiscal and physical resources;
(i) Local budgets shall operationalize
approved local development plans;
(j) Local government units shall ensure
that their respective budgets incorporate the requirements of their component
units and provide for equitable allocation of resources among these component
units;
(k) National planning shall be based on
local planning to ensure that the needs and aspirations of the people as
articulated by the local government units in their respective local development
plans are considered in the formulation of budgets of national line agencies or
offices; cdt
(l) Fiscal responsibility shall be shared
by all those exercising authority over the financial affairs, transactions, and
operations of the local government units; and
(m) The local government unit shall endeavor
to have a balanced budget in each fiscal year of operation.
SECTION
306. Definitions. — When used in
this Title, the term — (a) "Annual Budget" refers to a financial plan
embodying the estimates of income and expenditures for one (1) fiscal year;
(b) "Appropriation" refers to an
authorization made by ordinance, directing the payment of goods and services
from local government funds under specified conditions or for specific
purposes;
(c) "Budget Document" refers to
the instrument used by the local chief executive to present a comprehensive
financial plan to the sanggunian concerned;
(d) "Capital Outlays" refers to
appropriations for the purchase of goods and services, the benefits of which extend
beyond the fiscal year and which add to the assets of the local government unit
concerned, including investments in public utilities such as public markets and
slaughterhouses; aisa dc
(e) "Continuing Appropriation"
refers to an appropriation available to support obligations for a specified
purpose or projects, such as those for the construction of physical structures
or for the acquisition of real property or equipment, even when these
obligations are incurred beyond the budget year;
(f) "Current Operating
Expenditures" refers to appropriations for the purchase of goods and
services for the conduct of normal local government operations within the
fiscal year, including goods and services that will be used or consumed during
the budget year; aisa dc
(g) "Expected Results" refers to
the services, products, or benefits that shall accrue to the public, estimated
in terms of performance measures or physical targets;
(h) "Fund" refers to a sum of
money, or other assets convertible to cash, set aside for the purpose of
carrying out specific activities or attaining certain objectives in accordance
with special regulations, restrictions, or limitations, and constitutes as
independent fiscal and accounting entity;
(i) "Income" refers to all
revenues and receipts collected or received forming the gross accretions of
funds of the local government unit;
(j) "Obligations" refers to an
amount committed to be paid by the local government unit for any lawful act
made by an accountable officer for and in behalf of the local unit
concerned; cdtai
(k) "Personal Services" refers to
appropriations for the payment of salaries, wages and other compensation of
permanent, temporary, contractual, and casual employees of the local government
unit;
(l) "Receipts" refers to income
realized from operations and activities of the local government or are received
by it in the exercise of its corporate functions, consisting of charges for
services rendered, conveniences furnished, or the price of a commodity sold, as
well as loans, contributions or aids from other entities, except provisional
advances for budgetary purposes; and
(m) "Revenue" refers to income
derived from the regular system of taxation enforced under authority of law or
ordinance, and, as such, accrue more or less regularly every year. cd i
CHAPTER
II
Local
and Other Special Funds
ARTICLE
I
Receipts,
Safekeeping Article and Disposition of Local Funds
SECTION
307. Remittance of Government
Monies to the Local Treasury. — Officers of local government authorized to receive
and collect monies arising from taxes, revenues, or receipts of any kind shall
remit the full amount received and collected to the treasury of such local
government unit which shall be credited to the particular account or accounts
to which the monies in question properly belong.
SECTION
308. Local Funds. — Every local
government unit shall maintain a General Fund which shall be used to account
for such monies and resources as may be received by and disbursed from the
local treasury. The General Fund shall consist of monies and resources of the
local government which are available for the payment of expenditures,
obligations or purposes not specifically declared by law as accruing and
chargeable to, or payable from, any other fund. cd i
SECTION
309. Special Funds. — There shall
be maintained in every provincial, city, or municipal treasury the following
special funds:
(a) Special Education Fund (SEF) shall
consist of the respective shares of provinces, cities, municipalities and
barangays in the proceeds of the additional tax on real property to be
appropriated for purposes prescribed in Section 272 of this Code; and
(b) Trust Funds shall consist of private and
public monies which have officially come into the possession of the local
government or of a local government official as trustee, agent or
administrator, or which have been received as a guaranty for the fulfillment of
some obligation. A trust fund shall only be used for the specific purpose for
which it was created or for which it came into the possession of the local
government unit. cdasia
SECTION
310. Separation of Books and
Depository Accounts. — Local accountants and treasurers shall maintain separate
books and depository accounts, respectively, for each fund in their custody or
administration under such rules and regulations as the Commission on Audit may
prescribe.
SECTION
311. Depository Accounts. — Local
treasurers shall maintain depository accounts in the name of their respective
local government units with banks, preferably government-owned, located in or
nearest to their respective areas of jurisdiction. Earnings of each depository
account shall accrue exclusively thereto.
SECTION
312. Separation of Personal Money
from Public Funds. — Local treasurers and other accountable officers shall keep
monies separate and distinct from local public funds in their custody and shall
not make profit out of public money or otherwise apply the same to any use not
authorized by law or ordinance. casia
ARTICLE
II
Special
Accounts
SECTION
313. Special Accounts to be
Maintained in the General Fund. — Local government units shall maintain special
accounts in the general fund for the following:
(a) Public utilities and other economic
enterprises;
(b) Loans, interests, bond issues, and other
contributions for specific purposes; and
cdtai
(c) Development projects funded from the
share of the local government unit concerned in the internal revenue allotment
and such other special accounts which may be created by law or ordinance.
Receipts,
transfers, and expenditures involving the foregoing special accounts shall be
properly taken up thereunder.
Profits
or income derived the operation of public utilities and other economic
enterprises, after deduction for the cost of improvement, repair and other
related expenses of the public utility or economic enterprise concerned, shall
first be applied for the return of the advances or loans made therefor. Any
excess shall form part of the general fund of the local government unit
concerned.
CHAPTER
III
Budgeting
ARTICLE
I
Local
Government Budgets
SECTION
314. Form and Content. — (a)
Local government budgets shall primarily consists of two (2) parts: aisa dc
(1) The estimates of income; and
(2) The total appropriations covering the
current operating expenditures and capital outlays.
(b) The budget document shall contain:
(1) A budget message of the local chief
executive setting forth in brief the significance of the executive budget,
particularly in relation to the approved local development plan; cdtai
(2) A brief summary of the functions,
projects, and activities to be accomplished in pursuit of the goals and
objectives of the local government unit for the ensuing fiscal year,
specifically the delivery of basic services or facilities enumerated under Section
17 of this Code;
(3) Summary of financial statements setting
forth:
(i) The actual income and expenditures
during the immediately preceding year;
(ii) The actual income and expenditures of
the first two (2) quarters and the estimates of income and expenditures for the
last two (2) quarters of the current fiscal year;
(iii) The estimates of income for the ensuing
fiscal year from ordinances and laws existing at the time the proposed budget
is transmitted, together with other proposals;
acd
(iv) The estimated expenditures necessary to
carry out the functions, projects, and activities of the local government unit
for the ensuing fiscal year;
(v) All essential facts regarding the bonded
and other long-term obligations and indebtedness of the local government unit,
if any;
(vi) Summary statement of all statutory and
contractual obligations due; and
(vii) Such other financial statements and data
as are deemed necessary or desirable in order to disclose in all practicable
detail the financial condition of the local government unit. cdtai
SECTION
315. Submission of Detailed
Statements of Income and Expenditures. — (a) On or before the fifteenth (15th)
day of July of each year, local treasurers shall submit to their respective
local chief executives a certified statement, covering the income and
expenditures of the preceding fiscal year, the actual income and expenditures
of the first two (2) quarters of the current year, and the estimated income and
expenditures for the last two (2) quarters of the current year.
SECTION
316. Local Finance Committee. —
There is hereby created in every province, city or municipality a local finance
committee to be composed of the local planning and development officer, the
local budget officer, and the local treasurer. It shall exercise the following
functions:
(a) Determine the income reasonably projected
as collectible for the ensuing fiscal year;
cdtai
(b) Recommend the appropriate tax and other
revenue measures or borrowings which may be appropriate to support the budget;
(c) Recommend to the local chief executive
concerned the level of the annual expenditures and the ceilings of spending for
economic, social, and general services based on the approved local development
plans;
(d) Recommend to the local chief executive
concerned the proper allocation of expenditures for each development activity
between current operating expenditures and capital outlays;
(e) Recommend to the local chief executive
concerned the amount to be allocated for capital outlay under each development
activity or infrastructure project;
(f) Assist the sangguniang panlalawigan in
the review and evaluation of budget of component cities and municipalities in
the case of provincial finance committee, the barangay budgets in the case of
city or municipal finance committee, and recommend the appropriate action
thereon; cd
(g) Assist the sanggunian concerned in the
analysis and review of annual regular and supplemental budgets of the
respective local government unit to determine compliance with statutory and
administrative requirements; and
(h) Conduct semi-annual review and general
examination of cost and accomplishments against performance standards applied
in undertaking development projects.
A
copy of this report shall be furnished the local chief executive and the
sanggunian concerned, and shall be posted in conspicuous and publicly
accessible places in the provinces, cities, municipalities and barangays. aisa dc
SECTION
317. Submission of Budget
Proposals by Heads or Departments or Offices. — (a) Each head of department or
office shall submit a budget proposal for his department or office to the local
chief executive on or before the fifteenth (15th) of July of each year:
Provided, That the budget proposal of each department of office shall be
categorized under either economic, social or general services: Provided,
further, That each service shall be covered by the budget of at least one (1)
department or office of the local government unit concerned.
The
said budget proposal shall be prepared in accordance with such policy and
program guidelines as the local chief executive concerned may issue in
conformity with the local development plan, the budgetary ceilings prescribed
by the local finance committee, and the general requirements prescribed in this
Title.
(b) Budget proposals of departments or
offices shall be divided into two (2) primary categories, namely: the current
operating expenditures and the capital outlays. Such budget proposals shall
contain the following information:
(1) Objectives, functions, and projects
showing the general character and relative importance of the work to be
accomplished or the services to be rendered, and the cost thereof;
(2) Organizational charts and staffing
patterns indicating the list of plantilla positions with their corresponding
salaries, and proposals for reclassification of positions and salary changes,
as well as the creation of new positions with their proposed salary grade, duly
supported by proper justification;
(3) Brief description of the functions,
projects and activities for the ensuing fiscal year, expected results for each
function, project and activity, and the nature of work to be performed,
including the objects of expenditures for each function, project and activity; acd
(4) Relation of t