3Repuhlic of the flbilippineg
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FIFTEENTH CONGRESS
1ST Regular Session
HOUSEBILLNO.
4 98
Introduced by:
REP.FRANCISCOT.MATUGAS
1ST DistrictSurigao del Norte (Siargao Island)
EXPLANATORY
NOTE
Thisbill seeks to provide for the automatic
retention by the host
local government
unit of its forty percent
(40%) share of the gross
collection
derived
by the
national
government
from the
national
wealth taxes. The automatic
retention applies to such taxes actually
collected
by each local government
unit and shall be distributed in
accordance
with the allocation of sharesas provided for under Section
292 of the Local Government Code of 1991. The allocation of shares
shall be made and distributed by the host local government unit that
actually collected such taxes.
Section 6, Article X of the 1987 Philippine Constitution provides
that:
"Local
government
units shall have a just share, as
determined
by law, in the national
taxes which
shall be
automatically
released to them."
Thismeasure will allow the host local government units to directly
receive its just share from the national wealth taxes, thereby helping
our local executives in their operational
expenses in delivering basic
services to their constituents.
Moreover,
this bill will also resolve the
present bureaucratic
intricacies where funds are first remitted to the national government
before they are apportioned to the local government units. Here, local
legislative
bodies
will
benefit
from
automatic
retention
of
their
respective shares so they could immediately appropriate funds to their
priority development
projects.


Our local executives are the first to respond to the needs of their
people, it is but logical that they are empowered
to serve their citizens
well.
Thisis just one of the measures that seek to broaden the local
fiscal resource generation
of the local
government
units.
Hence,
immediate approval of this bill isearnestly sought.
2


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Fifteenth
Congress
1ST Regular Session
HOUSE BILL NO. __
98
Introduced
by:
HON. FRANCISCO T. MATUGAS
1st District, Surigao del Norte (Siargao Island)
1
AN ACT
2
PROVIDING
FOR THE AUTOMATIC
RETENTION BY THE HOST LOCAL GOVERNMENT
3
UNIT OF ITS FORTY PERCENT (40%) SHARE OF THE GROSS COLLECTION DERIVED BY
4
THE NATIONAL
GOVERNMENT
FROM NATIONAL
WEALTH TAXES AND
FOR OTHER
5
PURPOSES
6
7
Be it enacted
by the Senate and House of Representatives
of the Philippines in
8
Congress assembled:
9
10
SECTION1. The forty percent (40%)share of the local government units
11
from the gross collection
derived by the national government
from national
12
wealth taxes as mandated
by Republic Act No. 7160, otherwise known as the
13
"Local
Government
Code
of 1991" shall be automatically
retained
by the
14
provincial, city, municipal or barangay treasurer of the local government unit
15
which actually collected the national wealth tax.
16
17
For purposes of this Act, the term "national
wealth
taxes" shall refer to
18
mining taxes, royalties, forestry and fisherycharges, and such other taxes, fees, or
19
charges, including related surcharges, interests, or fines, and shall also include


shares in any eo-production.
joint venture or production
sharing agreement
in
2
the utilization and
development
of the national wealth
within the territorial
3
jurisdiction that may be collected by the local government unit.
4
SEC.2. The forty percent (40%)share of the local government units shall be
5
distributed as follows:
6
(a)
Where the natural resources are located in the province:
7
(1)
Province - Twenty percent (20%);
8
(2)
Component City/Municipality - Forty-five percent (45%);and
9
(3)
Barangay - Thirty-fivepercent (35%):
10
Provided,
however,
That where the natural resources are located in two (2)
11
or more provinces, or in two (2) or more component
cities or municipalities or in
12
two (2) or more barangays, their respective shares shall be computed
on the
13
basisof:
14
(1)
Population - Seventy percent (70%);and
15
(2)
Land area - Thirtypercent (30%).
16
(b)
Where the natural resources are located
in a highly urbanized or
17
independent
component city:
18
(1)
City - Sixty-fivepercent (65%);and
19
(2)
Barangay - Thirty-fivepercent (35%):
20
Provided,
however,
That where the natural resources are located in such
21
two (2) or more cities, the allocation of shares shall be based on the formula on
22
population and land area as specified in paragraph (a) of thisSection.
23
SEC.3. The allocation of sharesas provided for in Section 2 hereof shall be
24
made and distributed by the host local government unit that actually collected
25
such taxes.
2


SEC.4. All laws, acts, decrees, executive orders, issuances and rules and
2
regulations, or parts thereof inconsistent with this Act are hereby repealed,
3
amended or modified accordingly.
4
SEC.5. ThisAct shall take effect fifteen (15) days after its publication in the
5
Official Gazette or in two (2) national newspapers of general circulation.
6
Approved,
3