NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
•22 AUG 15 P5 :26
SENATE 
S. B. NO. mi
RECEIVED BV.
Introduced by Senator SONNY ANGARA
AN ACT
PROVIDING FOR BUSINESS-FRIENDLY TAX REMEDIES IN LOCAL 
GOVERNMENT UNITS BY AMENDING CERTAIN PROVISIONS IN BOOK II OF 
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE "LOCAL 
GOVERNMENT CODE OF 1991"
EXPLANATORY NOTE
Chief Justice Marshall has once said that the power to tax is the power to 
destroy as it allows State interference with the property rights of the people by taking 
a portion of their hard-earned income for the support of the government. This is true 
for both national and local taxes.
The power to tax, although plenary, is still subjected to certain limitations such 
as the constitutional emphasis on due process which requires that any tax ordinance 
be fair, just and reasonable and that there be notice and hearing. Specifically, Sections 
186 and 187 of Republic Act No. 7160 otherwise known as the Local Government Code 
of 1991 requires Sanggunians to conduct public hearings prior to the enactment of 
tax ordinances.
The proposed bill seeks to introduce amendments to the Local Government 
Code of 1991, to uphold the right of taxpayers to due process in the passage of tax 
ordinances; clarify publication, posting and public hearing requirements in the passage 
of tax ordinances; and institutionalize procedures in the exercise of taxpayer's 
remedies such as appeals, dispute of assessments and claims for refund.
In view of the foregoing, the immediate approval of this amendatory bill is 
earnestly sought.
SONNY ANGARA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
s. B. no.1171
of tijf feccvptarp
’22 AUG 15 P5 26
RtCEIVtD 3V:
Introduced by Senator SONNY ANGARA
AN ACT
PROVIDING FOR BUSINESS-FRIENDLY TAX REMEDIES IN LOCAL 
GOVERNMENT UNITS BY AMENDING CERTAIN PROVISIONS IN BOOK II 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
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development plan and public investment program, the same shall take
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effect after [ten (10) days from the date a copy thereof is posted in a
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bulletin board at the entrance of the provincial capital or cityrmwieipaly
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or-barangay hall/-as-the case may be^-and in at least two-(2)-other
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conspicuous places in the local-government unit concerned] FIFTEEN
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(15) DAYS FOLLOWING THE COMPLETION OF THEIR
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PUBLICATION IN A NEWSPAPER OF GENERAL OR LOCAL
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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 is hereby amended to read as follows: 
"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


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OPPORTUNITY TO APPEAR AND PRESENT OR EXPRESS 
THEIR VIEWS, COMMENTS AND RECOMMENDATIONS, AND 
SUCH 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, THAT 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 OR constitutionality or legality of 
tax ordinances or revenue measures may be raised on appeal [within 
thirty (30) days from the cffectivity 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 such


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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 [sixty] 120-day period without the 
Secretary of Justice acting [upon- the] ON SUCH appeal WITHOUT 
NECESSARILY RENDERING A DECISION THEREON, the aggrieved 
party may file appropriate proceedings with [a court-of competent 
jurisdiction] 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 is hereby amended to read as follows: 
"Sec. 188. Pubiication 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 
or revenue measures shall be published in full for three (3) consecutive 
days in a newspaper of local circulation: Provided, however. That in 
provinces, cities and municipalities where 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, 
FURTHERflHM, NOTWITHSTANDING ANY PROVISION IN THE 
TAX ORDINANCE OR REVENUE MEASURE PROVIDING FOR THE 
EFFECTIVITY THEREOF, NO TAX ORDINANCE OR REVENUE 
MEASURE SHALL BE VALID WITHOUT COMPLYING WITH THE 
PROVISIONS OF THIS SECTION."
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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 [aed] 
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 
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 the 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


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OF DEFICIENCY TAXES, FEES OR CHARGES PURSUANT TO 
SECTION 171.
UNDER NO CIRCUMSTANCE 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:
"Sec. 196. Claim for Refund of 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 THE PAYMENT OF SUCH TAX, FEE, OR 
CHARGE OR FROM THE 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 60-DAY PERIOD WITHOUT 
THE LOCAL TREASURER ACTING UPON THE 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 60-DAY PERIOD WITHIN WHICH 
TO DECIDE. [No case or proceeding shall be entertained in any court 
aftcr-tho-expiration of two (2) ycars-from the date of the-payment-ef
such tax, fee, or charge, or from the date the taxpayer is entitled to a
refund or credit.]


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Sec. 6. Section 226 of the Code shall be amended to read as follows:
"Sec. 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 OR THE LAPSE OF THE PERIOD GIVEN TO 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:
"Sec. 229. Action by the Local Board of Assessment Appeals. -
(a) The LOCAL Board shall decide the appeal within one hundred twenty 
(120) days from the date of receipt of such appeal. 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 appellate jurisdiction, the LOCAL Board shall 
have the power to summon witnesses, administer oaths, conduct ocular 
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.


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it shall be his duty to notify the owner of the property or the person 
having legal interest therein of such fact using the form prescribed for 
the purpose. 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 the 
decision of said LOCAL Board OR AFTER THE LAPSE OF THE 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 
APPEALS WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE 
DECISION OR AFTER THE LAPSE OF THE 120 DAY PERIOD 
GIVEN TO THE CENTRAL BOARD TO ACT ON SUCH APPEAL." 
Sec. 8. Section 252 of the Code is hereby amended to read as follows: 
"Sec. 252. Payment Under Protest - (a) No protest shall 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, [in the case of a 
municipality within Metropolitan Manila-Afea;] who shall decide the 
protest within sixty (60) days from receipt].
(b) x X X
(c) X X X
(d) X X X
(E) THE DECISION OR INACTION OF THE LOCAL TREASURER 
MAY BE APPEALED WITHIN THIRTY (30) DAYS TO THE 
SECRETARY OF FINANCE, WHO SHALL RENDER A DECISION ON 
SUCH APPEAL 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 LAPSE OF THE 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 of
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Justice shall issue the necessary rules and regulations to implement the provisions of
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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 OfTicial Gazette or in a newspaper of general circulation.
Approved,