FIFTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

“1904

House Bill No.

Introduced by Representative Ben P. Evardone

EXPLANATORY NOTE

As the basic unit in our political structure, our barangays, provide the
first level of government assistance to our people when they are in need of one
This assistance comes in all forms — from settling disputes between neighbors to
maintenance of local infrastructures to delivery of health services, etc. Needless
to say, the barangay has to be fiscally independent and stable to be able to carry
out these functions.

Although the Local Government Code (LGC) of 1991 provides specific
sources of income for the barangay, some of the provisions with regards to these
are quite vague. For instance, Section 164 stipulates that the barangay is
entitled to half (or 50%) of its community tax collection. However, the provision
does not contain further details as to when (or how) the barangay can claim its
share. In practice, the barangay does not get its share until a request for its
release is made upon the city or municipality, thereby causing delay in the
delivery of basic services to the constituents.

This bill secks to correct the situation. As proposed, Section 164 (c) (2)
will be amended so that the barangay treasurer shall automatically retain the
50% of the barangay's share in the community tax it has collected and remit the
share of its respective city/municipality within ten (10) days after the end of
each month,

Thus, approval of this bill is earnestly sought.

BEN P. EVARDONE
Representative, Lone District of Eastern Samar


FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1901

House Bill No.__>

Introduced by Representative Ben P. Evardone

AN ACT
PROVIDING FOR THE AUTOMATIC RETENTION BY THE BARANGAY
OF ITS FIFTY PERCENT (50%) SHARE IN THE COMMUNITY TAX
COLLECTED BY SAID BARANGAY, AMENDING SECTION 164 OF THE
LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and the Hlouse of Representatives of the Republic of the Pilippines in
Congress assembled:

SECTION 1. Section 164 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991 is hereby amended to read as follows:

“SEC. 164, Printing of Community Tax Certificate and Distribution of
Proceeds - (a) The Bureau of Internal Revenue shall cause the printing of
community tax certificate and distribute the same to the cities and
municipalities through the city and municipal treasurers in accordance with
prescribed regulations.

The proceeds of the tax shall accrue to the general funds of the cities,
municipalities and barangays except a portion thereof which shall accrue to
the general fund of the National Government to cover the actual cost of
printing and distribution of the forms and other related expenses.

The city or municipality treasurer the said share of the National
Government in the proceeds of the tax within ten (10) days after the end of
each quarter. The city or municipality treasurer shall deputize the barangay
treasurer to collect the community tax in their respective jurisdictions:
Provided, however, that said barangay treasurer shall be bonded in accordance
with existing laws.

‘The proceeds of tlie community tax actually and directly collected by
the city or municipal treasurer shall accrue entirely to the general fund of the
city or municipality concerned.

However, proceeds of the community tax collected through the
barangay treasurers shall be apportioned as follows:

Fifty percent (50%) shall accrue to the general fund of the city or
municipality concerned; and 4

Fifty percent (50%) shall accrue to the barangay [where tax is
collected] WHICH COLLECTED TAX.


BIRAEGHI Seer] Haun

THE BARANGAY TREASURER CONCERNED SHALL.
AUTOMATICALLY RETAIN THE SHARE OF THE BARANGAY AND
REMIT THE SHARE OF THE CITY OR MUNICIPALITY, CONCERNED
WITHIN TEN (10) DAYS AFTER THE END OF THE MONTH.

SECTION. 2. Repealing Clause. All laws, executive orders, rules and
regulations contrary to the provisions of this Act are hereby repealed or modified
accordingly.

SECTION. 3. Separability Clause. If any provision of this Act is declared
unconstitutional or invalid, the other provisions not affected shall remain in full force
and effect,

SECTION. 4. Effectivity Clause. This Act shall take effect immediately
following its publication in the Official Gazette or in two (2) newspapers of general
circulation, whichever come first.

Approved