NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 1^63
^ruaic
of fltf Srrrct.117
23 FEB-9 P3:19
RECEIVED BV:
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
AMENDING SECTIONS 59, 187, 188, 195, 196, 226, 229 AND 252 OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE "LOCAL 
GOVERNMENT CODE OF 1991"
EXPLANATORY NOTE
The power of the local government units (LGUs) to levy taxes, fees and charges 
is provided in the 1987 Constitution, Section 5, Article X of the Constitution, which 
specifically provides:
Section 5. Each local government unit shall have the power to create 
its own sources of revenues and to levy taxes, fees and charges 
subject to such guidelines and limitations as the Congress may 
provide, consistent with the basic policy of local autonomy. Such taxes, 
fees and charges shall accrue exclusively to the local governments.
Consequentially, the abovementioned guidelines and limitations are spelled out 
in Book II of Republic Act (R.A.) No. 7160, otherwise known as the Local Government 
Code of 1991. Book II provides the legal basis and parameters for the taxing and 
revenue-raising powers of local governments. However, Sections 59, 187, 188, 195, 
196, 226, 229 and 252 of the same lacks procedural details in upholding the taxpayers' 
right to due process in the administration and collection of taxes. It should be guided 
by certain philosophical framework and economic principles to ensure equity, 
efficiency, fairness and acceptability.


Thus, this proposed measure seeks to introduce amendments to the R.A. No. 
7160. This is to specifically strengthen the remedies available to taxpayers by clarifying 
publication, posting and public hearing requirements in the passage of tax ordinances; 
and institutionalizing procedures in the exercise of taxpayer's remedies such as 
appeals, dispute of assessments and claims for refund.
Hence, the immediate approval of this bill is earnestly sought.
JOSEPH VICTOR G. E3ERCITO


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1863
miinir
of file ifer.Tftnrp
23 FEB “9 P3:19
RECEIVED BY.
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
AMENDING SECTIONS 59, 187, 188, 195, 196, 226, 229 AND 252 OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE "LOCAL 
GOVERNMENT CODE OF 1991"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 59 of Republic Act No. 7160, otherwise known as the Local
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Government Code of 1991, hereinafter referred to as the "Code" is hereby amended
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to read as follows:
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"Sec. 59. Effectivity of Ordinances or Resolutions, -(a) Unless otherwise
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stated in the ordinance or the resolution approving the local development plan
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and public investment program, the same shall take effect after [ten (10)]
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FIFTEEN (15) days from the date a copy thereof is posted in a bulletin board
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at the entrance of the provincial capital or city, municipal, or barangay hall, as
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the case may be, and in at least two (2) other conspicuous places in the local
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government unit concerned, AS WELL AS THE POSTING OF A DIGITAL
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COPY THEREOF THROUGH THE USE OF THE INTERNET.
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THE PERIOD FOR POSTING SHALL BE SIMULTANEOUS WITH
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THE REQUIREMENT FOR PUBLICATION IN A NEWSPAPER OF
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GENERAL OR LOCAL CIRCULATION.
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(b) X X X
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XXX."
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Sec. 2. Section 187 of the Code shall be amended to read as follows:


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"Sec. 187. Procedure for Approval and Effectivity of Tax Ordinances and 
Revenue Measures; Mandatory Public Hearings. -
(A) 
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.
(B) 
THE CONDUCT OF PUBLIC HEARINGS SHALL BE GOVERNED BY 
THE FOLLOWING PROCEDURE:
(1) 
WITHIN TEN (10) DAYS FROM FILING OF ANY PROPOSED 
TAX ORDINANCE OR REVENUE MEASURE, THE SAME SHALL 
FIRST BE PUBLISHED FOR THREE (3) CONSECUTIVE DAYS IN 
A NEWSPAPER OF LOCAL CIRCULATION AND SHALL BE 
POSTED SIMULTANEOUSLY IN AT LEAST FOUR (4) 
CONSPICUOUS PUBLIC PLACES WITHIN THE TERRITORIAL 
JURISDICTION OF THE LGU CONCERNED.
(2) 
IN ADDITION TO THE REQUIREMENT FOR PUBLICATION 
AND POSTING, THE SANGGUNIAN CONCERNED SHALL CAUSE 
THE SENDING OF WRITTEN NOTICES OF THE PROPOSED 
ORDINANCE, ENCLOSING A COPY THEREOF, TO THE 
INTERESTED OR AFFECTED PARTIES OPERATING OR DOING 
BUSINESS WITHIN THE TERRITORIAL JURISDICTION OF THE 
LGU CONCERNED.
(3) 
THE NOTICE OR NOTICES SHALL SPECIFY THE DATE OR 
DATES AND VENUE OF THE PUBLIC HEARING. THE INITIAL 
PUBLIC HEARING SHALL BE HELD NOT EARLIER THAN TEN 
(10) DAYS FROM THE SENDING OUT OF NOTICE OR NOTICES, 
OR THE LAST DAY OF PUBLICATION AND DATE OF POSTING 
THEREOF, WHICHEVER IS LATER.
(4) 
AT THE PUBLIC HEARING, ALL AFFECTED OR 
INTERESTED PARTIES SHALL BE ACCORDED AN 
OPPORTUNITY TO APPEAR AND PRESENT OR EXPRESS THEIR 
VIEWS, COMMENTS AND RECOMMENDATIONS, AND SUCH


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PUBLIC HEARING SHALL CONTINUE UNTIL ALL ISSUES HAVE 
BEEN PRESENTED AND FULLY DELIBERATED UPON AND/OR 
CONSENSUS IS OBTAINED, WHETHER FOR OR AGAINST THE 
ENACTMENT OF THE PROPOSED TAX ORDINANCE OR 
REVENUE MEASURE: PROVIDED, FURTHER, THAT TAXPAYERS 
ARE ALLOWED A SUFFICIENT PERIOD OF TIME TO SUBMIT 
POSITION PAPERS.
(5) THE SECRETARY OF THE SANGGUNIAN CONCERNED 
SHALL PREPARE THE MINUTES OF SUCH PUBLIC HEARING 
AND SHALL ATTACH TO THE MINUTES THE POSITION PAPERS, 
MEMORANDA, AND OTHER DOCUMENTS SUBMITTED BY 
THOSE WHO PARTICIPATED.
(C) 
NO TAX ORDINANCE OR REVENUE MEASURE SHALL BE 
ENACTED OR APPROVED IN THE ABSENCE OF A PUBLIC HEARING 
DULY CONDUCTED IN THE MANNER PROVIDED IN THIS SECTION.
(D) 
ANY QUESTION ON NON-COMPLIANCE WITH THE PROCEDURE 
OF PASSING AN ORDINANCE MAY BE RAISED ON APPEAL WITHIN 
THIRTY (30) DAYS FROM THE EFFECTIVITY THEREOF: Provided, 
[further,'] That any [question on the] VIOLATION OF THE COMMON 
LIMITATIONS ON THE TAXING POWERS OF LOCAL GOVERNMENT 
UNITS AS PROVIDED UNDER SECTION 133 OF THE CODE OR OF 
THE constitutionality or legality of tax ordinances or revenue measures may 
be raised on appeal [within-thfrty (30) days from the effectivity thereof] 
ANYTIME to the Secretary of Justice, who shall render a decision within 
[sixty (60)] ONE HUNDRED TWENTY (120) 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, UNLESS OTHERWISE 
PROVIDED BY THE ORDER OF THE SECRETARY OF JUSTICE: 
Provided, finaiiy. That within thirty (30) days after receipt of the decision or 
the lapse of the [{60)] ONE HUNDRED TWENTY (120)-day period 
without the Secretary of Justice acting [upon the] ON SUCH appeal


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WITHOUT NECESSARILY RENDERING A DECISION THEREON, the 
aggrieved party may file appropriate proceedings with [a court of competent 
jufisdietioft] THE REGIONAL TRIAL COURT, THE DECISION OF 
WHICH MAY FURTHER BE APPEALED TO THE COURT OF TAX 
APPEALS.
Sec. 3. Section 188 of the Code shall be amended to read as follows:
"Sec. 188. Publication AND POSTING of Tax Ordinances and Revenue 
Measures. -Within [ten (10)] FIFTEEN (15) days after their approval, certified 
true copies of all provincial, city, and municipal tax ordinances and revenue 
measures shall be published in full for three (3) consecutive days in a 
newspaper of GENERAL OR local circulation, AS WELL AS THE POSTING 
OF A DIGITAL COPY THEREOF THROUGH THE USE OF THE INTERNET, 
AND: Provided, however, That in provinces, cities and municipalities whore
there are no newspapers of local circulation, the same may be 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) conspicuous and publicly accessible places WITHIN 
THE LOCAL GOVERNMENT UNIT CONCERNED: PROVIDED, FURTHER, 
THAT NOTWITHSTANDING ANY PROVISION IN THE TAX ORDINANCE 
OR REVENUE MEASURE PROVIDING FOR THE EFFECTIVITY THEREOF, 
NO TAX ORDINANCE OR REVENUE MEASURES SHALL BE VALID 
WITHOUT COMPLYING WITH THE PROVISIONS OF THIS SECTION." 
Sec. 4. Section 195 of the Code shall be amended to read as follows:
"Sec. 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 WITHIN THE PERIOD FOR 
ASSESSMENT AND COLLECTION OF TAXES UNDER SECTION 194 OF 
THIS CODE stating the nature of the tax, fee, or charge, the amount of 
deficiency, the surcharges, interests, [af»d] penalties, AND THE FACTS AND 
LAW UPON WHICH SUCH ASSESSMENT IS BASED, OTHERWISE, THE 
ASSESSMENT SHALL BE VOID. Within sixty (60) days from the receipt of 
the notice of assessment, the taxpayer may file a written protest with the local


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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 sixty (60) day period prescribed 
herein within which to appeal with the [court of competent jurisdiction] 
SECRETARY OF FINANCE, WHO SHALL RENDER A DECISION ON SUCH 
APPEAL WITHIN SIXTY (60) DAYS FROM RECEIPT THEREOF otherwise 
the assessment becomes conclusive and unappealable. WITHIN 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 DECIDE, THE AGGRIEVED PARTY MAY 
FILE APPROPRIATE PROCEEDINGS WITH THE COURT OF TAX 
APPEALS.
THE NOTICE OF ASSESSMENT REFERRED TO IN THIS SECTION 
PERTAINS TO THE ASSESSMENT FOR THE PAYMENT OF DEFICIENCY 
TAXES, FEES OR CHARGES PURSUANT TO SECTION 171 OF THE CODE.
UNDER NO CIRCUMSTANCES SHALL THE LOCAL TREASURER 
REQUIRE THE PAYMENT AS A PRECONDITION FOR ENTERTAINING A 
PROTEST. NEITHER SHALL THE LOCAL TREASURER WITHHOLD THE 
ISSUANCE OF BUSINESS PERMIT ON ACCOUNT OF THE PENDING 
PROTEST."
Sec. 5. Section 196 of the Code shall be amended to read as follows:
"Section 196. Claim for Refund [of] OR 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 WITHIN TWO (2) YEARS FROM THE 
DATE OF PAYMENT OF SUCH TAX, FEE, OR CHARGE OR FROM THE


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DATE THE TAXPAYER IS ENTITLED TO A REFUND OR CREDIT, 
WHICHEVER IS LATER. THE LOCAL TREASURER SHALL HAVE SIXTY 
(60) DAYS FROM THE DATE OF RECEIPT OF THE CLAIM WITHIN 
WHICH TO DECIDE THE CLAIM.
WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE DECISION 
OR THE LAPSE OF THE SIXTY (60)-DAY PERIOD WITHOUT THE LOCAL 
TREASURER ACTING UPON CLAIM, THE TAXPAYER MAY FILE AN 
APPEAL WITH THE SECRETARY OF FINANCE WHO SHALL RENDER A 
DECISION WITHIN SIXTY (60) DAYS FROM RECEIPT THEREOF. THE 
PARTY ADVERSELY AFFECTED BY THE DECISION OR INACTION OF 
THE SECRETARY OF FINANCE MAY APPEAL TO THE COURT OF TAX 
APPEALS WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE 
DECISION OR FROM THE LAPSE OF THE SIXTY (60)-DAY PERIOD 
WITHIN WHICH TO DECIDE. [No case or procGcding shall bo entertained 
in any court after the expiration of two (2) yoars-from the date-of payment of
such tax, foG, or chargoT-er from the dote the taxpayer iG Gntitlod to □ refund
or crodit.]
Sec. 6. Section 226 of the Code shall be amended to read as follows:
"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, FILE A WRITTEN PROTEST THEREOF WITH THE LOCAL 
ASSESSOR, WHO SHALL HAVE THIRTY (30) DAYS TO ACT ON SUCH 
PROTEST. WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE 
ADVERSE DECISION OF THE LOCAL ASSESSOR TO RENDER A 
DECISION, THE AGGRIEVED PARTY MAY appeal to the Board of 
Assessment Appeals of the province 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."
Sec. 7. Section 229 of the Code shall be amended to read as follows:


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"Section 229. Action by the Local Board Assessment Appeals. -
a. The LOCAL Board shall decide the appeal within one hundred twenty (120) 
days from the date of receipt of such appeai. The LOCAL 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.
b. In the exercise of its appeliate jurisdiction, the LOCAL Board shall have the 
power to summon witnesses, administer oaths, conduct ocuiar inspection, 
take depositions, and issue subpoena and subpoena duces tecum. The 
proceedings of the LOCAL 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 LOCAL 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 LOCAL 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 or the assessor who is not satisfied with the decision of the LOCAL 
Board, may, within thirty (30) days after receipt of LOCAL Board OR 
AFTER THE LAPSE OF ONE HUNDRED TWENTY (120)-DAY PERIOD 
FOR THE LOCAL BOARD TO ACT, appeal to the Central Board of 
Assessment appeals, as herein provided. The decision of the Central Board 
MAY BE APPEALED TO THE COURT OF TAX APEALS WITHIN THIRTY 
(30) DAYS FROM RECEIPT OF THE DECISION OR AFTER THE LAPSE 
OF THE ONE HUNDRED TWENTY DAY (120) DAY PERIOD GIVEN TO 
THE CENTRAL BOARD TO ACT ON SUCH APPEAL.
Sec. 8. Section 252 of the Code shall be amended to read as follows:
"Section 252. Payment Under Protest -
a. No protest shail 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)] SIXTY (60) days from 
payment of the tax to the provincial, city treasurer or municipal treasurer.


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[in the case of □ municipolity within-Motropolitan -Manila Afeaj] who shall
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decide the protest within sixty (60) days from receipt.
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b. X X X
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c. X X X
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d. X X X
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E. THE REASON OR INACTION OF THE LOCAL TREASURER MAY BE
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APPEALED WITHIN THIRTY (30) DAYS TO THE SECRETARY OF
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FINANCE, WHO SHALL RENDER A DECISION ON SUCH APPEAL
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WITHIN SIXTY (60) DAYS FROM RECEIPT THEREOF. THE PARTY
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ADVERSELY AFFECTED BY THE DECISION OR INACTION OF THE
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SECRETARY OF FINANCE MAY APPEAL TO THE COURT OF TAX
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APPEALS WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE
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DECISION OR LAPSE OF THE SIXTY (60)-DAY PERIOD TO DECIDE."
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Sec. 9. Implementing Rules and Regulations. -The Department of Interior and
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Local Government, in coordination with the Department of Finance and Department
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of Justice shall issue the necessary rules and regulations to implement the provisions
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of this Act within sixty (60) days from its effectivity.
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Sec. 10. Repealing Clause. - All general and special laws, acts, city charters,
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executive orders, presidential proclamations, issuances, rules and regulations, or parts
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thereof which are contrary to or inconsistent with any of the provisions of this Act are
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hereby repealed, amended, or modified accordingly.
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Sec. 11. Separability Clause. - If any portion or provision of this Act is
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subsequently declared invalid or unconstitutional, other provisions hereof which are
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not affected thereby shall remain in full force and effect.
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Sec. 12. Effectivity Clause. -This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,