, , 
• 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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'13 
SEP -5 P 5 :37 
Republic Act No. 7160, otherwise known as the "Local Government Code of 1991," 
Section 138 authorizes provinces to levy taxes on sand, gravel, and other quarrying activities. It 
has been observed that a province is often cheated by unscrupulous operators as the local 
government units cannot monitor the actual number of cubic meters extracted on non-working 
days. Also, the quarries are situated far from provincial offices. City and municipal officials have 
also complained that the shares of the city, municipality, or barangay concerned in the taxes 
levied are not often remitted by the province. 
The bill shifts the power to levy taxes on sand, gravel, and other quarry resources from 
the province to the city or municipality concerned where the quarry is located. It also provides 
for efficient monitoring by authorizing barangay officials where the quarry is located to monitor 
the activities of quarry operators. This will result not only in efficient monitoring of quarry 
activities, but also in higher revenues for all local government units. * 
" 
• This bill was originally filed during the Thirteenth Congress, First Regular Session, 
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Senntr 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
((lU,;. "f HI' .>",.Iaf, 
OF THE PHILIPPINES 
. ) 
First Regular Session 
) 
'13 
SEP -5 P5 :31 
SENATE 
S. No. 1572 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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AUTHORIZING CITIES AND MUNICIPALITIES TO LEVY TAXES ON SAND, GRAVEL, 
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AND OTHER QUARRY RESOURCES, AMENDING FOR THE PURPOSE SECTION 138 OF 
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REPUBLIC ACT 7160, ALSO KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991" 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Section 138 of Republic Act No. 7160, otherwise known as the "Local 
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Government Code of 1991," is hereby amended to read as follows: 
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"SECTION 138. Tax on Sand, Gravel and Other Quarry Resources. - The 
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CITY AND MUNICIPALITY [province) may levy and collect not more than 
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ten percent (10%) of fair market value in the locality per cubic meter of ordinary 
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stones, sand, gravel, earth, and other quarry resources, as defined under the 
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National Internal Revenue Code, as amended, extracted from public lands or from 
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the beds of seas, lakes, rivers, streams, creeks, and other public waters within its 
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territorial jurisdiction. 
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The perrriit to extract sand, gravel and other quarry resources shall be 
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issued exclusively by the CITY OR MUNICIPAL MAYOR AS THE CASE 
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MAY BE, PURSUANT TO THE ORDINANCE OF THE SANGGUNIAN 
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CONCERNED AND SHALL BE CLOSELY MONITORED BY THE 
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BARANGAY OFFICIALS WHERE THE ACTUAL QUARRYING IS 
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TAKING PLACE [provincial governor, pursuant to the ordinance of the 
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sangguniang panlalawigan). 
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The proceeds of the tax on sand, gravel and other quarry resources shall be 
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distributed as follows: 
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(1) Province - Thirty percent (30%); 
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(2) Component City or Municipality where the sand, gravel, and other 
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quarry resources are extracted - Thirty percent (30%); and 
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(3) Barangay where the sand, gravel, and other quarry resources are 
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extracted - Forty percent (40%). 
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SECTION 2. Repealing Clause. - All laws, presidential decrees or issuances, executive 
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orders, letters of instruction, administrative orders, rules, and regulations or parts thereof 
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inconsistent with the provisions of this Act are hereby repealed, modified, or amended 
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accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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