Republic of the Philippines

First Regular Session

2000

House Bill No.

PABLO JOUN BE. GARCIA

A SHARE IN DS OF REAL,

PROPERTY TAXES IMPOSED BY COMPONE! IES, AMEND!

SCTION 271 OF REPUBLIC ACT NUMBER 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991”

EXPLANA

DRY NO’

Nation without representation, it is said, is ty
entation without taxation.

ny. But no less inequitable is
repr

Under the 1991 Local Government Code, 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 Section 271 of Republic Act. No. 7160, otherwise known as the 1
Government Code of 1991, component cities-—-unlike municipaliti e not required
1 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 to
maintain provincial infrastructure such as roads and bridges within that component city,
and its mandatory assistance to its barangays.

Second, a province is, under

, ction 16 of the same Code, mandated to protect
and uphold the general welfare of all its inhabitants, including those residing in
component cities, which do not, under present laws, share in the burden of the
government,

Third, its onerous to municipalities, which, more ofien that 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, Seetion 271 of the Local Governme
this onerous situation, by 1g component ci
real property taxes with the provinee

Code should be amended (0 correct
s they must, the proceeds of

Ss share,

Thus, early passage of this bill is earnestly sought,



Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon City, Metro Manila

First Regular Session

2000

House Bill No

Introduced by Hon. PABLO JOLIN F. GARCIA

“AN ACT GRANTING PROVINCES TARE IN THE PROCEEDS OF REAL
PROPERTY TAXES IMPOSED BY COMPONENT CI , AMENDING.
}CTION 271 OF REPUBLIC ACT NUMBER 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991”

Section 1, Section 271 of the Local Government Code is hereby amended to read
us follows;

eds of the basic real
¢ or disposition,

on 271. Distribution of Proceed:
1g

“Se
property tax, includ

The proc

pro
M

sions of this Title by the province or ci
a Area shall be distributed as follows:

“(a) In the case of provinces:

fi ral fined:

) shall accrue to the ge!

“(1) province - Thirty

fe percent (

“@) municipality ~ Forty percent (40%) to the general fund of the
municipality where the property is located; and

— Twenty-five percent (25%) shall accrue to the bi

) baranga
Where the property is located.

angay

inhabit the

mponent ci
provincial offi

“(b)
right to vote for elective

“() province ~ Thirty-* percent (36%) shall accrue to the province;

“(2) city ~ Forty percent (40%) to the general fund of the city: and

Yo) shall

~(ii) Fifty percent (:
l

ue equally fo all component barangays

ed cities and independent
ht 10 vote for elective provincial off

) Inthe case of highly w
inhabitants do not retain the

mponent

al fund of the city:

nt (70%) shall accrue to the gel

enty perce!



“(2)_Thirty_percent_ (30%) the component

barangays where the property li located in the following man

“(i) Fifiy pereent (5 all re the property is

located:

(ii) Fil
(the city: and

fly percent (50%) shall accrue equally to all component barangays

“(d) In the

¢ of a municipality within the Metro Manila Area;

(1) Metro Manila Authority
the general fund of the Authorit

Thirty-five percent (35%) shall accrue to

) municipality — Thirty-five percent (35%) shall accrue to the general
Tund 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) Pitty percent (50%) shall acerue to the baran w the property is
located :

ii) Fiy percent (50%) shall acerue equally to all component barangays
of the munieipality.

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

SECTION 2. All laws, executive orders, rules
deemed repealed or modified accordingly.

and regulations inconsistent herewith are

is publication in two.

SECTION 3. This Act shall take effect fifieen (15) days following
(2) newspapers of general circulation in the Philippines.”

APPROVED,