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HOUSE OF REPRESENTATIVES RECH JUL 2016
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SEVENTEENTH CONGRESS
First Regular Session

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House Bill No, L632 praisTPATON UNIT

SL SAND INDEX SERVICE
INTRODUCED BY: HON. GWENDOLYN F. GARCIA

EXPLANATORY NOTE

Taxation without representation, it is said, is tyranny. But no less
inequitable is representation without taxation.

Under the Local Government Code of 1991, however, this situation
obtains in the case of component cities of provinces, which, while retaining
the right to vote for elective provincial positions, are not required to share in
the burden of government by way of taxation. Under the Section 271 of
Republic Act No. 7160, otherwise known as the Local Government Code of
1991, component cities - unlike municipalities - are not required to share the
proceeds of real property taxes with the province.

This is onerous for a number of reasons. First, a local government unit's
being, or conversion into, a component city does not relieve the province of
its obligation fo maintain provincial infrastructure such as roads and bridges
within that component city, and its mandatory assistance to its barangays.

Second, a province is, under Section 16 of the same Code, mandated
to protect and uphold the general welfare of all ils inhabitants, including
those residing in component cities, which do not, under present laws, share in
the burden of government.

Third, it is onerous to municipalities, which, more often than not, are
smaller and less financially capable than component cities, and are ironically
mandated to exclusively share the burden of government within the
province.

Clearly, Section 271 of the Local Government Code should be
amended to correct this onerous situation, by making component cities
share, as they must, the proceeds of real property taxes with the province.

Thus, early passage of this bill is earnestly sought.

HON, LYN F. GARCIA

ENTATIVES


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

SEVENTEENTH CONGRESS
First Regular Session

1632

House Bill No.

INTRODUCED BY: HON. GWENDOLYN F. GARCIA

“AN ACT GRANTING PROVINCES A SHARE IN THE PROCEEDS OF REAL PROPERTY
TAXES IMPOSED BY COMPONENT CITIES, AMENDING SECTION 271 OF REPUBLIC
ACT NUMBER 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:

SECTION 1. Section 271 of the Local Government Code is hereby
amended to read as follows:

SEC. 271.Distribution of Proceeds. - The proceeds of basic real
property tax, including interest thereon, and proceeds from the
Use, lease or disposition, sale or redemption of property acquired
at a public auction in accordance with the provision of this Title
by the province or city or a municipality within the Metropolitan
Manila Area shall be distributed as follows:

{a)In the case of provinces:

(1) Province ~ thirty-five (35%) shall accrue to the general
fund;

(2) Municipality - forty percent (40%) to the general fund of
the municipality where the property is located; and

(3) Barangay - twenty-five(25%) shall accrue to the barangay
where the property is located.

{(b) In the case of cities:


(1) City - seventy percent (70%) shall accrue to the general
fund of the city; and

(2) Barangay ~ thirty percent (30%) shall be distributed among
the component barangays of the cities where the property is
located in the following manner:

(i) Fifty percent (50%) shall accrue to the barangay
where the property is located;

(ii) Fifty percent (50%) shall accrue equally to all
component barangays of the city; and]

(b) IN THE CASE OF COMPONENT CITIES AND CITIES WHOSE
INHABITANTS RETAIN THE RIGHT TO VOTE FOR ELECTIVE PROVINCIAL
OFFICIALS:

(1) PROVINCE = THIRTY PERCENT (30%)SHALL ACCRUE TO THE
PROVINCE;

(2) CITY - FORTY PERCENT (40%) TO The GENERAL FUND OF THE
CITY; AND

(3) BARANGAY — THIRTY PERCENT (30%) SHALL BE DISTRIBUTED
AMONG THE COMPONENT BARANGAY WHERE THE PROPERTY IS
LOCATED IN THE FOLLOWING MANNER:

(i) FIFTY PERCENT (50%) SHALL ACCRUE TO THE
BARANGAY WHERE THE PROPERTY IS LOCATED;

(ii) FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO ALL
COMPONENT BARANGAYS OF THE CITY;

(c) IN THE CASE OF HIGHLY-URBANIZED CITIES AND
INDEPENDENT COMPONENT CITIES WHOSE INHABITANTS DO NOT RETAIN
THE RIGHT TO VOTE FOR ELECTIVE PROVINCIAL OFFICIALS:

(1) CITY - SEVENTY PERCENT (70%) SHALL ACCRUE TO THE
GENERAL FUND OF THE CITY;

(2) BARANGAY = THIRTY PERCENT (30%) SHALL BE DISTRIBUTED
AMONG THE COMPONENT BARANGAY WHERE The PROPERTY IS
LOCATED IN THE FOLLOWNG MANNER:

{i) FIFTY PERCENT (50%) SHALL ACCRUE TO THE
BARANGAY WHERE THE PROPERTY IS LOCATED;


(i) FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO ALL
COMPONENT BARANGAYS OF THE CITY;

[lc}I{d) In the case of a municipality within the Metropolitan
Manila Area:

(1) Metropolitan Manila Authority -thirty-five percent (35%)
shall accrue to the general fund of the authority;

(2) Municipality -thirty-five percent (35%) shall accrue to the
general fund of the municipality where the property is located;

(3) Barangays - thirty percent (30%) shall be distributed
among the component barangays of the municipality where the
property is located in the following manner:

(i) Fifty percent (50%) shall accrue to the barangay
where the propery is located;

(i) Fifty percent (50%) shall accrue equally to all
component barangays of the municipality

[(d)] (e)The share of each barangay shall be released, without
need of any further action, directly to the barangay treasurer on a
quarterly basis within five (5) days after the end of each quarter and
shall not be subject to any lien or holdback for whatever purpose.

SECTION 2. Repealing Clause. - All other laws or parts thereof, decrees,

executive orders, rules and regulations, issuances or parts thereof inconsistent
with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 3. Separability Clause. - If any provision of this Act is declared

invalid, the remainder of this Act or any provision not affected thereby shall
remain in full force and effect.

SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15)

days after its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved.