THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Republic Act No. 7160, a.k.a. 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 quarry operators. This will result not only in efficient monitoring of quarry activities 
but also in higher revenues for all local government units. 
MIRIAM DEFE&SOR SANTIAG~ 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPEWS 
1 
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AUTHORIZING CITIES AND MUNICIPALITIES TO LEVY TAXES ON SAND, GRAVEL 
AND OTHER QUARRY RESOURCES AMENDING FOR THE PURPOSE SECTION 138 OF 
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 
SECTION 1. Section 138 of Republic Act No. 7160, entitled “An Act Providing For a 
Local Government Code of 1991” is hereby amended to read as follows: 
“Sec. 138 Tax on Sand, Gravel and Other Quarry Resources - The CITY and 
MUNICIPALITY may levy and collect not more than ten percent (10%) of fair 
market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, 
and other quarry resources, as defined under the National Internal Revenue Code, 
as amended, extracted from public lands of from the beds of seas, lakes rivers, 
streams, creeks and other waters within its territorial jurisdiction. 
The permit to extract sand, gravel and other quarry resources shall be 
issued exclusive BY THE CITY OR MUNICIPAL MAYOR AS THE CASE 
MAY BE PURSUANT TO THE ORDINANCE OF THE SANGGUNIAN 
CONCERNED AND SHALL BE CLOSELY MONITORED BY THE 
BARANGAY OFFICIALS WHERE THE ACTUAL QUARRYING IS T
m
G
 
PLACE. 
The proceeds of the tax on sand, gravel and other quarry resources shall be 
distributed as follows: 
(1) Province - Thirty percent (30%) 
(2) Component City or Municipality where the sand , gravel and other 
quarry resources are extracted - Thirty percent (30%); and 


... 
.
-
 
., 
, 
- 
(3) Barangay where the sand, gravel, and other quarry resources are 
extracted - Forty percent (40%). 
SECTION 2. Repealing Clause. - All laws, executive orders, rules and regulations 
or parts hereof which may be inconsistent with the provisions of this Act are hereby 
repealed or amended accordingly. 
SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved. 
I327