Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

COMMITTEE REPORT No. 803 a

Submitted by the Conimittee on Local Government on __ 94 wap ong?
Re: House Bill No._ 4410

Recommending its approval in substitution of House Bill Nos. 110, 442, 586, 635, 910,
1491,1831, 1887, 2361, 2671 and 2763

Sponsors: Representatives George P. Amnaiz, Neptali M. Gonzales II, Ronald M. Cosalan,
George P. Amnaiz, Rufus B. Rodriguez, Maximo B. Rodriguez, Juan Edgardo M. Angara,
Mel Senen S. Sarmiento, Bernardo M. Vergara, Ben P. Evardone, Ronald V. Singson,
Teodoro T. Haresco, Jr, Roy M. Loyola, Justin Mare SB Chipeco, Florencio “Bem” G.
Noel, Florencio C. Garay, Antonio A. Ferrer, Jerry P. Trefias, Danilo Ramon S.
Femandez, Edgar S. San Luis, Manuel S. Agyao, Jesus Crispin C. Remulla and Josefina
M. Joson

Mr. Speaker:

The Commitiee on Local Government to which were referred House Bill Nos.
110 introduced by Representative Neptali M. Gonzales Il, entitled:

“AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE GROSS
COLLECTION DERIVED BY THE NATIONAL GOVERNMENT FROM
NATIONAL WEALTH TAXES, AMENDING FOR THE PURPOSE SECTION
293 OF REPUBLIC ACT No. 7160 OTHERWISE KNOWN AS THE LOCAL.
GOVERNMENT CODE OF 1991”

House Bill No. 442 introduced by Representative Juan Edgardo M. Angara, entitled:

“AN ACT
MANDATING THE AUTOMATIC RELEASE OF THE SHARE OF THE
BARANGAY IN THE PROCEEDS OF TIONAL TAXES AND TAXES ON
THE UTILIZATION AND DEVELOPMENT OF THENATIONAL WEALTH,
AMENDING FOR THIS PURPOSE SECTION 286, CHAPTER 1 AND SECTION



No. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE
OF 1991"

House Bill No. 586 introduced by Representatives Rufus B. Rodriguez and Maximo B.
Rodriguez, entitled:

“AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE GROSS
COLLECTION DERIVED BY THE NATIONAL GOVERNMENT FROM
NATIONAL WEALTH TAXES, AMENDING FOR THE PURPOSE SECTION
293 OF REPUBLIC ACT No. 7160 OTHERWISE KNOWN AS THE LOCAL.
GOVERNMENT CODE OF 1991

House Bill No, 635 introduced by Representative Juan Edgardo M. Angara, entitled:

“AN ACT
AMENDING SECTIONS 290 AND 291 OF REPUBLIC ACT No. 7160
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991”

House Bill No. 910 introduced by Representative Ronald M. Cosalan, entitled:

“AN ACT
MANDATING THE DIRECT REMITTANCE OF THE RESPECTIVE SHARES
OF HOST LOCAL GOVERNMENT FROM THE PROCEEDS IN THE
AND UTILIZATION OF THE NATIONAL WEALTH,
SCTION 293, CHAPTER 2, TITLE Ll, BOOK Il OF REPUBLIC
ACT No. 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE.
OF 1991 AND FOR OTHER PURPOSES”

House Bill No. 1491 introduced by Representative Mel Senen S. Sarmiento, entitled:

“AN ACT
AMENDING SECTIONS 290 AND 291 OF REPUBLIC ACT No. 7160
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991”

House Bill No. 1831 introduced by Representative Bernardo M. Vergara, entitled:

“AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE GROSS
COLLECTION DERIVED FROM NATIONAL WEALTH TAXES, AMENDING
SECTION 290 OF REPUBLIC ACT No. 7160 OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991”

We

IVELY, OF THE REPUBLIC


House Bill No. 1887 introduced by Representative Ben P. Evardone, entitled:

“AN ACT
AMENDING 290 AND 291 OF REPUBLIC ACT No. 7160, OTHERWISE KNOWN |
AS THE LOCAL GOVERNMENT CODE OF 1991”

House Bill No. 2361 introduced by Representative Ronald V. Singson, entitled:

“AN ACT

PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE GROSS
TAX COLLECTION FROM THE UTILIZATION AND DEVLOPMENT OF THE
NATIONAL WEALTH WITHIN ITS TERRITORIAL JURISDICTION,
AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT
No. 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF
1991”

House Bill No. 2671 introduced by Representative Teodoro T. Haresco, Jr., entitled:

“AN ACT
AMENDING 290 AND 291 OF REPUBLIC ACT No. 7160, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE OF 1991”

House Bill No, 2763 introduced by Representative George P. Amnaiz, entitled:

“AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE GROSS
TAX COLLECTION FROM THE UTILIZATION AND DEVLOPMENT OF THE
NATIONAL WEALTH WITHIN ITS TERRITORIAL JURISDICTION,
AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT
No. 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF

1991”

has considered the same and recommends that the attached House Bil! No. 4410
entitled:

“AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE PROCEEDS
DERIVED FROM THE UTILIZATION AND DEVELOPMENT OF NATIONAL
WEALTH, AMENDING FOR THE PURPOSE SECTION 293 OF REPUBLIC
ACT No. 7160 AS AMENDED OTHERWISE KNOWN AS THE LOCAL

GOVERNMENT CODE OF 1991

3



be approved in substitution of House Bill Nos. 110, 442, 586, 635, 910, 1491,1831, 1887,

2361, 2671 and 2763 389, 742, 1250, 2183, 2625, 3505 and 4367 with Representatives
Neptali M. Gonzales I, Ronald M. Cosalan, George P. Amaiz, Rufus B. Rodriguez,
Maximo B. Rodriguez, Juan Edgardo M. Angara, Mel Senen S. Sarmiento, Bernardo M.
Vergara, Ben P. Evardone, Ronald V. Singson, Teodoro T. Haresco, Jr., Roy M. Loyola,
Justin Mare SB Chipeco, Florencio “Bem” G. Noel, Florencio C. Garay, Antonio A.
Ferrer, Jerry P. Trefias, Danilo Ramon S. Fernandez, Edgar S. San Luis, Manuel S.
Agyao, Jesus Crispin C. Remulla and Josefina M. Joson as authors thereof.

Committee on Local Government

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES


i

WOyHUS w

Republic of the Philippines
—_-______ HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4410

Introduced by: Representatives Neptali M. Gonzales II, Ronald M. Cosalan, George P.
Amaiz, Rufus B. Rodriguez, Maximo B. Rodriguez, Juan Edgardo M. Angara, Mel
Senen S. Sarmiento, Bernardo M. Vergara, Ben P. Evardone, Ronald V. Singson,
Teodoro T. Haresco, Jr., Roy M. Loyola, Justin Mare SB Chipeco, Florencio “Bem” G.
Noel, Florencio C. Garay, Antonio A. Ferrer, Jerry P. Trefias, Danilo Ramon S.
Fernandez, Edgar S. San Luis, Manuel S. Agyao, Jesus Crispin C. Remulla, Josefina M.
Joson,Romeo M. Acop and Francisco T. Matugas

AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT OF ITS FORTY PERCENT SHARE (40%) OF THE PROCEEDS
DERIVED FROM THE UTILIZATION AND DEVELOPMENT OF NATIONAL
WEALTH, AMENDING FOR THE PURPOSE SECTION 293 OF REPUBLIC
ACT No. 7160 AS AMENDED OTHERWISE 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:

SECTION 1. Section 293 of Republic Act No. 7160 as amended otherwise
known as the Local Government Code of 1991 is hereby amended to read as follows:

“SECTION 293. Remittance of the Share of Local Government
Units. — The share of local goverment units from the utilization and
development of national wealth shall be remitted in accordance with
Section 286 of this Code: Provided, That ANY PERSON, NATURAL OR
JURIDICAL, INCLUDING fin 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


—

1 remit[ted] to the provincial, city, municipal or barangay treasurer, OF
—2___FHE-HOST-LO€AL- GOVENRMENT-GNFF concerned 4P3-FORPY—

3 PERCENT (40%) SHARE DERIVED FROM NATIONAL WEALTH
4 TAXES UNDER SECTION 290 OF THIS CODE AND THE

5 REMAINING SIXTY PERCENT (60%) TO THE NATIONAL

6 GOVERNMENT [, within five (5) days after the end of each quarter]. “

7 SEC. 2. All laws, decrees, orders, rules and regulations or parts thereof

8 _ inconsistent with the provisions of this Act are hereby amended or modified accordingly.

9 SEC. 3. This Act shall take effect (15) days after its publication in any newspaper

10 of general circulation.

i Approved,


FACT SHEET

eae | House Bill Nos. 110, 442, 586, 635, 910, 1491, 1831, 1887, 2361,
2671 and 2763
(As approved by the Committee on February 9, 2011)

PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT UNIT OF ITS 40% SHARE OF THE OF THE PROCEEDS
DERIVED FROM THE UTILIZATION AND DEVELOPMENT OF NATIONAL
WEALTH
Introduced by Representatives Neptali M. Gonzales I, Ronald M. Cosalan,
George P. Amaiz, Rufus B. Rodriguez, Maximo B. Rodriguez, Jr., Juan
Edgardo M. Angara, Mei Senen S. Sarmiento, Bernardo M. Vergara, Ben P.
Evardone, Ronald V. Singson, Teodorico T. Haresco, Jr., Roy M. Loyola,
Justin Marc SB Chipeco, Florencio “Bem G. Noel, Florencio C. Garay,
Antonio A. Ferrer, Jerry P. Trefias, Danilo Ramon S. Fernandez, Edgar S.
San Luis, Manuel S. Agyao, Jesus Crispin C. Remulla, Josefina M. Joson,
Romeo M. Acop and Francisco T. Matugas

Committee Referral : Committee on Local Government
Committee Chairperson: Rep. George P. Arnaiz

OBJECTIVE

+ To allow the host local government unit to directly receive its just share
from the collections of the national government from national wealth
taxes, thereby improving the delivery of basic services to the public.

SALIENT PROVISIONS
* Mandates any individual or entity engaged in the utilization and
development of the national wealth shall directly remit to the local
government unit (Igu) treasurer its share in said taxes; and
* Entities the host local government unit to forty percent (40%) share
derived from the national wealth taxes and the remaining sixty percent
(60%) shall be remitted to the national government
RELATED LAW

© Sections 286 and 290, 291 and 293 of Republic Act 7160 or the Local
Government Code Of 1991