FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S.ENATE 
S.No. 1869 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
10 .U 22 A9 :33 
Republic Act No. 7160, otherwise known as Local Government Code, Sec. 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 qllarry 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 Regula~ Session. 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 
JUL 22 /\9 :33 
SENAIF... 
S. N~. ltlt>9 
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 Hause af Representatives af 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 is hereby amended to read as follows: 
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"Sec. 138 Tax on Sand, Gravel and Other Quarry Resources. - The CITY 
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and MUNICIPALITY may levy and collect not more than ten percent (10%) of 
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air market value in the locality per cubic meter of ordinary stones, sand, gravel, 
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earth, and other quarry resources, as defined under the National Internal Revenue 
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Code, as amended, extracted from public lands of from the beds of seas, lakes 
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rivers, streams, creeks and other waters within its territorial jurisdiction. 
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The permit to extract sand, gravel and other quarry resources shall be 
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issued exclusive 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. 
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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, executive orders, rules and regulations or 
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parts hereof which may be inconsistent with the provisions of this Act are hereby repealed or 
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amended accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (IS) days after its 
, 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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