, 
THIRTEENTH CONGRESS OF THE REPUBLIC 
} 
@Q/J <& 
30 P 5 :I 0 
OF THE PHILIPPINE§ 
1 
First Regular Session 
1 
S E N A T E  
Introduced by Senator S. R. Osmeiia Ill 
EXPLANATORY NOTE 
The 1987 Constitution recognizes the importance of local governments. It 
provides as a policy that “The State shall guarantee and promote the autonomy 
of the local government units-especially the barangays- to ensure their fullest 
development as self-reliant communities.” 
The transfer of resources from the national government to local 
government units to carry out the constitutional mandate was done through the 
enactment of the Local Government Code in 1991. However, while the law 
identified the sources of revenue for the barangay, some of the provisions were 
vague as to when the barangays shall enjoy the revenue due to it. A case in point 
is the 50% share of the barangay in its community tax collection. This situation 
has invariably led to the delay in the collection of this revenue by our barangays. 
This bill seeks to remedy the situation by amending Section 164 0 
(2) of 
the LGC to allow the barangay treasurer concerned to automatically retain the 
50% barangay share in the community tax collection and remit the share of the 
city or municipality within ten ( I O )  days after the end of each month. 
n/ 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
"04 &[.j 30 p5 :I 0 
OF THE PHILIPPINES 
B 
First Regular Session 
1 
S E N A T  
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
PROVIDING FOR THE AUTOMATIC RETENTION BY THE BARANGAY OF 
ITS SHARE OF FIFTY PERCENT (50%) IN THE COMMUNITY TAX 
COLLECTED BY SAID BARANGAY, AMENDING FOR THE PURPOSE 
SECTION 164 OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS THE 
LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Section 164 of Republic Act No. 7160, otherwise known as 
2 the Local Government Code of 1991, is hereby amended to read as follows: 
3 
"SECTION 164. Printing of Community Tax Certificates and Distribution of 
4 
Proceeds- (a) The Bureau of Internal Revenue shall cause the printing of 
5 
community tax certificates and distribute the same to the cities and municipalities 
6 
through the city and municipal treasurers in accordance with prescribed 
7 
regulations. 
8 
The proceeds of the tax shall accrue to the general funds of the cities, 
9 
municipalities and barangays except a portion thereof which shall accrue to the 
10 
general fun of the national government to cover the actual cost of printing and 
1 I 
distribution of the forms and other related expenses. The city or municipal 
12 
treasurer concerned shall remit to the national treasurer the said share of 
13 
national government in the proceeds of the tax within ten (IO) days after the end 
14 
of each quarter. 
1 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
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: 
I) 
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] WHICH COLLECTED THE TAX. 
THE 
BARANGAY 
TREASURER 
CONCERNED 
SHALL 
AUTOMATICALLY RETAIN THE SHARE OF THE BARANGAY AND REMIT 
THE SHARE OF THE CITY OR MUNICIPALITY CONCERNED WITHIN TEN 
( I O )  DAYS AFTER THE END OF THE MONTH.” 
SEC. 
2. 
Repealing Clause. - All laws, decrees, executive orders, 
memorandum orders, memorandum circulars, administrative orders, ordinances 
or nay part thereof, inconsistent herewith are hereby deemed repealed or 
modified accordingly. 
SEC. 3. Effectivity Clause. - This Act shall take effect (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved, 
2