Dilg Law

LOCAL GOVERNMENT CODE OF 1991
Republic Act No. 7160 October 10, 1991
Setion 41(b) Amended by RA 8553
Setion 43 Amended by RA 8553
AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991
Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled::
BOOK I
GENERAL PROVISIONS
TITLE I
BASIC PRINCIPLES
CHAPTER I
The Code: Policy and Application
Section 1. Title. - This Act shall be known and cited as the "Local
Government Code of 1991".
Section 2. Declaration of Policy. -
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(a) It is hereby declared the policy of the State that the territorial
and political subdivisions of the State shall enjoy genuine and
meaningful local autonomy to enable them to attain their fullest
development as self-reliant communities and make them more
effective partners in the attainment of national goals. Toward
this end, the State shall provide for a more responsive and
accountable local government structure instituted through a
system of decentralization whereby local government units
shall be given more powers, authority, responsibilities, and
resources. The process of decentralization shall proceed from
the national government to the local government units.
(b) It is also the policy of the State to ensure the accountability
of local government units through the institution of effective
mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national
agencies and offices to conduct periodic consultations with
appropriate local government units, nongovernmental and
people's organizations, and other concerned sectors of the
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community before any project or program is implemented in
their respective jurisdictions.1awphil.net
Section 3. Operative Principles of Decentralization. - The formulation
and implementation of policies and measures on local autonomy
shall be guided by the following operative principles:
(a) There shall be an effective allocation among the different
local government units of their respective powers, functions,
responsibilities, and resources;
(b) There shall be established in every local government unit an
accountable, efficient, and dynamic organizational structure
and operating mechanism that will meet the priority needs and
service requirements of its communities;
(c) Subject to civil service law, rules and regulations, local
officials and employees paid wholly or mainly from local funds
shall be appointed or removed, according to merit and fitness,
by the appropriate appointing authority;
(d) The vesting of duty, responsibility, and accountability in
local government units shall be accompanied with provision for

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reasonably adequate resources to discharge their powers and
effectively carry out their functions: hence, they shall have the
power to create and broaden their own sources of revenue and
the right to a just share in national taxes and an equitable share
in the proceeds of the utilization and development of the
national wealth within their respective areas;
(e) Provinces with respect to component cities and
municipalities, and cities and municipalities with respect to
component barangays, shall ensure that the acts of their
component units are within the scope of their prescribed
powers and functions;
(f) Local government units may group themselves, consolidate
or coordinate their efforts, services, and resources commonly
beneficial to them;
(g) The capabilities of local government units, especially the
municipalities and barangays, shall be enhanced by providing
them with opportunities to participate actively in the
implementation of national programs and projects;
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(h) There shall be a continuing mechanism to enhance local
autonomy not only by legislative enabling acts but also by
administrative and organizational reforms;
(i) Local government units shall share with the national
government the responsibility in the management and
maintenance of ecological balance within their territorial
jurisdiction, subject to the provisions of this Code and national
policies;
(j) Effective mechanisms for ensuring the accountability of local
government units to their respective constituents shall be
strengthened in order to upgrade continually the quality of local
leadership;
(k) The realization of local autonomy shall be facilitated through
improved coordination of national government policies and
programs an extension of adequate technical and material
assistance to less developed and deserving local government
units;
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(l) The participation of the private sector in local governance,
particularly in the delivery of basic services, shall be
encouraged to ensure the viability of local autonomy as an
alternative strategy for sustainable development; and
(m) The national government shall ensure that decentralization
contributes to the continuing improvement of the performance
of local government units and the quality of community life.
Section 4. Scope of Application. - This Code shall apply to all
provinces, cities, municipalities, barangays, and other political
subdivisions as may be created by law, and, to the extent herein
provided, to officials, offices, or agencies of the national
government.
Section 5. Rules of Interpretation. - In the interpretation of the
provisions of this Code, the following rules shall apply:
(a) Any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any
question thereon shall be resolved in favor of devolution of
powers and of the lower local government unit. Any fair and
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reasonable doubt as to the existence of the power shall be
interpreted in favor of the local government unit concerned;
(b) In case of doubt, any tax ordinance or revenue measure
shall be construed strictly against the local government unit
enacting it, and liberally in favor of the taxpayer. Any tax
exemption, incentive or relief granted by any local government
unit pursuant to the provisions of this Code shall be construed
strictly against the person claiming it.
(c) The general welfare provisions in this Code shall be liberally
interpreted to give more powers to local government units in
accelerating economic development and upgrading the quality
of life for the people in the community;
(d) Rights and obligations existing on the date of effectivity of
this Code and arising out of contracts or any other source of
presentation involving a local government unit shall be
governed by the original terms and conditions of said contracts
or the law in force at the time such rights were vested; and
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(e) In the resolution of controversies arising under this Code
where no legal provision or jurisprudence applies, resort may
be had to the customs and traditions in the place where the
controversies take place.
CHAPTER II
General Powers and Attributes of Local Government Units
Section 6. Authority to Create Local Government Units. - A local
government unit may be created, divided, merged, abolished, or its
boundaries substantially altered either by law enacted by Congress
in the case of a province, city, municipality, or any other political
subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned in the case of
a barangay located within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this Code.
Section 7. Creation and Conversion. - As a general rule, the creation
of a local government unit or its conversion from one level to
another level shall be based on verifiable indicators of viability and
projected capacity to provide services, to wit:
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(a) Income. - It must be sufficient, based on acceptable
standards, to provide for all essential government facilities and
services and special functions commensurate with the size of
its population, as expected of the local government unit
concerned;
(b) Population. - It shall be determined as the total number of
inhabitants within the territorial jurisdiction of the local
government unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises two
or more islands or is separated by a local government unit
independent of the others; properly identified by metes and
bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the requirements
of its populace.
Compliance with the foregoing indicators shall be attested to by
the Department of Finance (DOF), the National Statistics Office
(NSO), and the Lands Management Bureau (LMB) of the
Department of Environment and Natural Resources (DENR).
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Section 8. Division and Merger. - Division and merger of existing
local government units shall comply with the same requirements
herein prescribed for their creation: Provided, however, That such
division shall not reduce the income, population, or land area of the
local government unit or units concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the
income classification of the original local government unit or units
shall not fall below its current classification prior to such division.
The income classification of local government units shall be
updated within six (6) months from the effectivity of this Code to
reflect the changes in their financial position resulting from the
increased revenues as provided herein.
Section 9. Abolition of Local Government Units. - A local
government unit may be abolished when its income, population, or
land area has been irreversibly reduced to less than the minimum
standards prescribed for its creation under Book III of this Code, as
certified by the national agencies mentioned in Section 7 hereof to
Congress or to the sangguniang concerned, as the case may be.
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The law or ordinance abolishing a local government unit shall
specify the province, city, municipality, or barangay with which the
local government unit sought to be abolished will be incorporated or
merged.
Section 10. Plebiscite Requirement. - No creation, division, merger,
abolition, or substantial alteration of boundaries of local
government units shall take effect unless approved by a majority of
the votes cast in a plebiscite called for the purpose in the political
unit or units directly affected. Said plebiscite shall be conducted by
the Commission on Elections (COMELEC) within one hundred
twenty (120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another
date.
Section 11. Selection and Transfer of Local Government Site, Offices
and Facilities. -
(a) The law or ordinance creating or merging local government
units shall specify the seat of government from where
governmental and corporate services shall be delivered. In
selecting said site, factors relating to geographical centrality,

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accessibility, availability of transportation and communication
facilities, drainage and sanitation, development and economic
progress, and other relevant considerations shall be taken into
account.
(b) When conditions and developments in the local government
unit concerned have significantly changed subsequent to the
establishment of the seat of government, its sanggunian may,
after public hearing and by a vote of two-thirds (2/3) of all its
members, transfer the same to a site better suited to its needs.
Provided, however, That no such transfer shall be made outside
the territorial boundaries of the local government unit
concerned.
The old site, together with the improvements thereon, may be
disposed of by the sale or lease or converted to such other use
as the sangguniang concerned may deem beneficial to the local
government unit concerned and its inhabitants.
(c) Local government offices and facilities shall not be
transferred, relocated, or converted to other uses unless public
hearings are first conducted for the purpose and the

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concurrence of the majority of all the members of the
sanggunian concerned is obtained.
Section 12. Government Centers. - Provinces, cities, and
municipalities shall endeavor to establish a government center
where offices, agencies, or branches of the national government,
local government units, or government-owned or controlled
corporations may, as far as practicable, be located. In designating
such a center, the local government unit concerned shall take into
account the existing facilities of national and local agencies and
offices which may serve as the government center as contemplated
under this Section. The national government, local government unit
or government-owned or controlled corporation concerned shall
bear the expenses for the construction of its buildings and facilities
in the government center.
Section 13. Naming of Local Government Units and Public Places,
Streets and Structures. -
(a) The sangguniang panlalawigan may, in consultation with the
Philippine Historical Commission (PHC), change the name of
the following within its territorial jurisdiction:

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(1) Component cities and municipalities, upon the
recommendation of the sanggunian concerned;
(2) Provincial roads, avenues, boulevards, thoroughfares,
and bridges;
(3) Public vocational or technical schools and other post-
secondary and tertiary schools;
(4) Provincial hospitals, health centers, and other health
facilities; and
(5) Any other public place or building owned by the
provincial government.
(b) The sanggunian of highly urbanized cities and of component
cities whose charters prohibit their voters from voting for
provincial elective officials, hereinafter referred to in this Code
as independent component cities, may, in consultation with the
Philippine Historical Commission, change the name of the
following within its territorial jurisdiction:
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(1) City barangays, upon the recommendation of the
sangguniang barangay concerned;
(2) City roads, avenues, boulevards, thoroughfares, and
bridges;
(3) Public elementary, secondary and vocational or
technical schools, community colleges and non-chartered
colleges;
(4) City hospitals, health centers and other health facilities;
and
(5) Any other public place or building owned by the city
government.
(c) The sanggunians of component cities and municipalities
may, in consultation with the Philippine Historical Commission,
change the name of the following within its territorial
jurisdiction:
(1) City and municipal barangays, upon recommendation
of the sangguniang barangay concerned;
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(2) City, municipal and barangay roads, avenues,
boulevards, thoroughfares, and bridges;
(3) City and municipal public elementary, secondary and
vocational or technical schools, post- secondary and other
tertiary schools;
(4) City and municipal hospitals, health centers and other
health facilities; and
(5) Any other public place or building owned by the
municipal government.
(d) None of the foregoing local government units, institutions,
places, or buildings shall be named after a living person, nor
may a change of name be made unless for a justifiable reason
and, in any case, not oftener than once every ten (10) years. The
name of a local government unit or a public place, street or
structure with historical, cultural, or ethnic significance shall
not be changed, unless by a unanimous vote of the sanggunian
concerned and in consultation with the PHC.
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(e) A change of name of a public school shall be made only
upon the recommendation of the local school board concerned.
(f) A change of name of public hospitals, health centers, and
other health facilities shall be made only upon the
recommendation of the local health board concerned.
(g) The change of name of any local government unit shall be
effective only upon ratification in a plebiscite conducted for the
purpose in the political unit directly affected.
(h) In any change of name, the Office of the President, the
representative of the legislative district concerned, and the
Bureau of Posts shall be notified.
Section 14. Beginning of Corporate Existence. - When a new local
government unit is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a
majority of the members of its sanggunian, unless some other time
is fixed therefor by the law or ordinance creating it.
Section 15. Political and Corporate Nature of Local Government
Units. - Every local government unit created or recognized under

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this Code is a body politic and corporate endowed with powers to be
exercised by it in conformity with law. As such, it shall exercise
powers as a political subdivision of the national government and as
a corporate entity representing the inhabitants of its territory.
Section 16. General Welfare. - Every local government unit shall
exercise the powers expressly granted, those necessarily implied
therefrom, as well as powers necessary, appropriate, or incidental
for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their
respective territorial jurisdictions, local government units shall
ensure and support, among other things, the preservation and
enrichment of culture, promote health and safety, enhance the right
of the people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and
technological capabilities, improve public morals, enhance
economic prosperity and social justice, promote full employment
among their residents, maintain peace and order, and preserve the
comfort and convenience of their inhabitants.
Section 17. Basic Services and Facilities. -

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(a) Local government units shall endeavor to be self-reliant and
shall continue exercising the powers and discharging the
duties and functions currently vested upon them. They shall
also discharge the functions and responsibilities of national
agencies and offices devolved to them pursuant to this Code.
Local government units shall likewise exercise such other
powers and discharge such other functions and responsibilities
as are necessary, appropriate, or incidental to efficient and
effective provisions of the basic services and facilities
enumerated herein.
(b) Such basic services and facilities include, but are not limited
to, the following:
(1) For Barangay:
(i) Agricultural support services which include
planting materials distribution system and operation
of farm produce collection and buying stations;
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(ii) Health and social welfare services which include
maintenance of barangay health center and day-care
center;
(iii) Services and facilities related to general hygiene
and sanitation, beautification, and solid waste
collection;
(iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges and
water supply systems;
(vi) Infrastructure facilities such as multi-purpose hall,
multipurpose pavement, plaza, sports center, and
other similar facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
(2) For a Municipality:
(i) Extension and on-site research services and
facilities related to agriculture and fishery activities

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which include dispersal of livestock and poultry,
fingerlings, and other seedling materials for
aquaculture; palay, corn, and vegetable seed farms;
medicinal plant gardens; fruit tree, coconut, and other
kinds of seedling nurseries; demonstration farms;
quality control of copra and improvement and
development of local distribution channels, preferably
through cooperatives; interbarangay irrigation
system; water and soil resource utilization and
conservation projects; and enforcement of fishery
laws in municipal waters including the conservation of
mangroves;
(ii) Pursuant to national policies and subject to
supervision, control and review of the DENR,
implementation of community-based forestry projects
which include integrated social forestry programs and
similar projects; management and control of
communal forests with an area not exceeding fifty (50)
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square kilometers; establishment of tree parks,
greenbelts, and similar forest development projects;
(iii) Subject to the provisions of Title Five, Book I of
this Code, health services which include the
implementation of programs and projects on primary
health care, maternal and child care, and
communicable and non-communicable disease
control services, access to secondary and tertiary
health services; purchase of medicines, medical
supplies, and equipment needed to carry out the
services herein enumerated;
(iv) Social welfare services which include programs
and projects on child and youth welfare, family and
community welfare, women's welfare, welfare of the
elderly and disabled persons; community-based
rehabilitation programs for vagrants, beggars, street
children, scavengers, juvenile delinquents, and
victims of drug abuse; livelihood and other pro-poor
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projects; nutrition services; and family planning
services;
(v) Information services which include investments
and job placement information systems, tax and
marketing information systems, and maintenance of a
public library;
(vi) Solid waste disposal system or environmental
management system and services or facilities related
to general hygiene and sanitation;
(vii) Municipal buildings, cultural centers, public parks
including freedom parks, playgrounds, and other
sports facilities and equipment, and other similar
facilities;
(viii) Infrastructure facilities intended primarily to
service the needs of the residents of the municipality
and which are funded out of municipal funds
including but not limited to, municipal roads and
bridges; school buildings and other facilities for
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public elementary and secondary schools; clinics,
health centers and other health facilities necessary to
carry out health services; communal irrigation, small
water impounding projects and other similar projects;
fish ports; artesian wells, spring development,
rainwater collectors and water supply systems;
seawalls, dikes, drainage and sewerage, and flood
control; traffic signals and road signs; and similar
facilities;
(ix) Public markets, slaughterhouses and other
municipal enterprises;
(x) Public cemetery;
(xi) Tourism facilities and other tourist attractions,
including the acquisition of equipment, regulation and
supervision of business concessions, and security
services for such facilities; and
(xii) Sites for police and fire stations and substations
and municipal jail;
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(3) For a Province:
(i) Agricultural extension and on-site research
services and facilities which include the prevention
and control of plant and animal pests and diseases;
dairy farms, livestock markets, animal breeding
stations, and artificial insemination centers; and
assistance in the organization of farmers and
fishermen's cooperatives, and other collective
organizations, as well as the transfer of appropriate
technology;
(ii) Industrial research and development services, as
well as the transfer of appropriate technology;
(iii) Pursuant to national policies and subject to
supervision, control and review of the DENR,
enforcement of forestry laws limited to community-
based forestry projects, pollution control law, small-
scale mining law, and other laws on the protection of
the environment; and mini-hydroelectric projects for
local purposes;
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(iv) Subject to the provisions of Title Five, Book I of
this Code, health services which include hospitals and
other tertiary health services;
(v) Social welfare services which include programs
and projects on rebel returnees and evacuees; relief
operations; and population development services;
(vi) Provincial buildings, provincial jails, freedom
parks and other public assembly areas and similar
facilities;
(vii) Infrastructure facilities intended to service the
needs of the residence of the province and which are
funded out of provincial funds including, but not
limited to, provincial roads and bridges; inter-
municipal waterworks, drainage and sewerage, flood
control, and irrigation systems; reclamation projects;
and similar facilities;
(viii) Programs and projects for low-cost housing and
other mass dwellings, except those funded by the
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Social Security System (SSS), Government Service
Insurance System p. 172 (GSIS), and the Home
Development Mutual Fund (HDMF): Provided, That
national funds for these programs and projects shall
be equitably allocated among the regions in
proportion to the ratio of the homeless to the
population;
(ix) Investment support services, including access to
credit financing;
(x) Upgrading and modernization of tax information
and collection services through the use of computer
hardware and software and other means;
(xi) Inter-municipal telecommunications services,
subject to national policy guidelines; and
(xii) Tourism development and promotion programs;
(4) For a City:
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All the services and facilities of the municipality and
province, and in addition thereto, the following:
(1) Adequate communication and transportation
facilities;
(c) Notwithstanding the provisions of subsection (b) hereof,
public works and infrastructure projects and other facilities,
programs and services funded by the national government
under the annual General Appropriations Act, other special
laws, pertinent executive orders, and those wholly or partially
funded from foreign sources, are not covered under this
Section, except in those cases where the local government unit
concerned is duly designated as the implementing agency for
such projects, facilities, programs, and services.
(d) The designs, plans, specifications, testing of materials, and
the procurement of equipment and materials at P170 from both
foreign and local sources necessary for the provision of the
foregoing services and facilities shall be undertaken by the
local government unit concerned, based on national policies,
standards and guidelines.

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(e) National agencies or offices concerned shall devolve to local
government units the responsibility for the provision of basic
services and facilities enumerated in this Section within six (6)
months after the effectivity of this Code.
As used in this Code, the term "devolution" refers to the act by
which the national government confers power and authority
upon the various local government units to perform specific
functions and responsibilities.
(f) The national government or the next higher level of local
government unit may provide or augment the basic services
and facilities assigned to a lower level of local government unit
when such services or facilities are not made available or, if
made available, are inadequate to meet the requirements of its
inhabitants.
(g) The basic services and facilities hereinabove enumerated
shall be funded from the share of local government units in the
proceeds of national taxes and other local revenues and
funding support from the national government, its
instrumentalities and government-owned or controlled

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corporations which are tasked by law to establish and maintain
such services or facilities. Any fund or resource available for
the use of local government units shall be first allocated for the
provision of basic services or facilities enumerated in
subsection (b) hereof before applying the same for other
purposes, unless otherwise provided in this Code.
(h) Regional offices of national agencies or offices whose
functions are devolved to local government units as provided
herein shall be phased out within one (1) year from the approval
of this Code. Said national agencies and offices may establish
such field units as may be necessary for monitoring purposes
and providing technical assistance to local government units.
The properties, equipment, and other assets of these regional
offices shall be distributed to the local government units in the
region in accordance with the rules and regulations issued by
the oversight committee created under this Code.
(i) The devolution contemplated in this Code shall include the
transfer to local government units of the records, equipment,
and other assets and personnel of national agencies and

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offices corresponding to the devolved powers, functions, and
responsibilities.
Personnel of said national agencies or offices shall be
absorbed by the local government units to which they belong or
in whose areas they are assigned to the extent that it is
administratively viable as determined by the said oversight
committee: Provided, That the rights accorded to such
personnel pursuant to civil service law, rules and regulations
shall not be impaired: Provided, further, That regional directors
who are career executive service officers and other officers of
similar rank in the said regional offices who cannot be
absorbed by the local government unit shall be retained by the
national government, without any diminution of rank, salary or
tenure.
(j) To ensure the active participation of the private sector in
local governance, local government units may, by ordinance,
sell, lease, encumber, or otherwise dispose of public economic
enterprises owned by them in their proprietary capacity.
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Costs may also be charged for the delivery of basic services or
facilities enumerated in this Section.
Section 18. Power to Generate and Apply Resources. - Local
government units shall have the power and authority to establish an
organization that shall be responsible for the efficient and effective
implementation of their development plans, program objectives and
priorities; to create their own sources of revenues and to levy taxes,
fees, and charges which shall accrue exclusively for their use and
disposition and which shall be retained by them; to have a just
share in national taxes which shall be automatically and directly
released to them without need of any further action; to have an
equitable share in the proceeds from the utilization and
development of the national wealth and resources within their
respective territorial jurisdictions including sharing the same with
the inhabitants by way of direct benefits; to acquire, develop, lease,
encumber, alienate, or otherwise dispose of real or personal
property held by them in their proprietary capacity and to apply their
resources and assets for productive, developmental, or welfare
purposes, in the exercise or furtherance of their governmental or
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proprietary powers and functions and thereby ensure their
development into self-reliant communities and active participants in
the attainment of national goals.
Section 19. Eminent Domain. - A local government unit may, through
its chief executive and acting pursuant to an ordinance, exercise the
power of eminent domain for public use, or purpose or welfare for
the benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and
pertinent laws: Provided, however, That the power of eminent
domain may not be exercised unless a valid and definite offer has
been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may
immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the
proper court of at least fifteen percent (15%) of the fair market value
of the property based on the current tax declaration of the property
to be expropriated: Provided, finally, That, the amount to be paid for
the expropriated property shall be determined by the proper court,
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based on the fair market value at the time of the taking of the
property.
Section 20. Reclassification of Lands. -
(a) A city or municipality may, through an ordinance passed by
the sanggunian after conducting public hearings for the
purpose, authorize the reclassification of agricultural lands and
provide for the manner of their utilization or disposition in the
following cases: (1) when the land ceases to be economically
feasible and sound for agricultural purposes as determined by
the Department of Agriculture or (2) where the land shall have
substantially greater economic value for residential,
commercial, or industrial purposes, as determined by the
sanggunian concerned: Provided, That such reclassification
shall be limited to the following percentage of the total
agricultural land area at the time of the passage of the
ordinance:
(1) For highly urbanized and independent component
cities, fifteen percent (15%);
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(2) For component cities and first to the third class
municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent
(5%): Provided, further, That agricultural lands distributed
to agrarian reform beneficiaries pursuant to Republic Act
Numbered Sixty-six hundred fifty-seven (R.A. No. 6657).
otherwise known as "The Comprehensive Agrarian Reform
Law", shall not be affected by the said reclassification and
the conversion of such lands into other purposes shall be
governed by Section 65 of said Act.
(b) The President may, when public interest so requires and
upon recommendation of the National Economic and
Development Authority, authorize a city or municipality to
reclassify lands in excess of the limits set in the next preceding
paragraph.
(c) The local government units shall, in conformity with existing
laws, continue to prepare their respective comprehensive land
use plans enacted through zoning ordinances which shall be
the primary and dominant bases for the future use of land
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resources: Provided. That the requirements for food
production, human settlements, and industrial expansion shall
be taken into consideration in the preparation of such plans.
(d) Where approval by a national agency is required for
reclassification, such approval shall not be unreasonably
withheld. Failure to act on a proper and complete application
for reclassification within three (3) months from receipt of the
same shall be deemed as approval thereof.
(e) Nothing in this Section shall be construed as repealing,
amending, or modifying in any manner the provisions of R.A.
No. 6657.
Section 21. Closure and Opening of Roads. -
(a) A local government unit may, pursuant to an ordinance,
permanently or temporarily close or open any local road, alley,
park, or square falling within its jurisdiction: Provided,
however, That in case of permanent closure, such ordinance
must be approved by at least two-thirds (2/3) of all the members
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of the sanggunian, and when necessary, an adequate substitute
for the public facility that is subject to closure is provided.
(b) No such way or place or any part thereof shall be
permanently closed without making provisions for the
maintenance of public safety therein. A property thus
permanently withdrawn from public use may be used or
conveyed for any purpose for which other real property
belonging to the local government unit concerned may be
lawfully used or conveyed: Provided, however, That no freedom
park shall be closed permanently without provision for its
transfer or relocation to a new site.
(c) Any national or local road, alley, park, or square may be
temporarily closed during an actual emergency, or fiesta
celebrations, public rallies, agricultural or industrial fairs, or an
undertaking of public works and highways,
telecommunications, and waterworks projects, the duration of
which shall be specified by the local chief executive concerned
in a written order: Provided, however, That no national or local
road, alley, park, or square shall be temporarily closed for

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athletic, cultural, or civic activities not officially sponsored,
recognized, or approved by the local government unit
concerned.
(d) Any city, municipality, or barangay may, by a duly enacted
ordinance, temporarily close and regulate the use of any local
street, road, thoroughfare, or any other public place where
shopping malls, Sunday, flea or night markets, or shopping
areas may be established and where goods, merchandise,
foodstuffs, commodities, or articles of commerce may be sold
and dispensed to the general public.
Section 22. Corporate Powers. -
(a) Every local government unit, as a corporation, shall have the
following powers:
(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
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(5) To enter into contracts; and
(6) To exercise such other powers as are granted to
corporations, subject to the limitations provided in this
Code and other laws.
(b) Local government units may continue using, modify, or
change their existing corporate seals: Provided, That newly
established local government units or those without corporate
seals may create their own corporate seals which shall be
registered with the Department of the Interior and Local
Government: Provided, further, That any change of corporate
seal shall also be registered as provided hereon.
(c) Unless otherwise provided in this Code, no contract may be
entered into by the local chief executive in behalf of the local
government unit without prior authorization by the sanggunian
concerned. A legible copy of such contract shall be posted at a
conspicuous place in the provincial capitol or the city,
municipal or barangay hall.
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(d) Local government units shall enjoy full autonomy in the
exercise of their proprietary functions and in the limitations
provided in this Code and other applicable laws,
Section 23. Authority to Negotiate and Secure Grants. - Local chief
executives may, upon authority of the sanggunian, negotiate and
secure financial grants or donations in kind, in support of the basic
services or facilities enumerated under Section 17 hereof, from local
and foreign assistance agencies without necessity of securing
clearance or approval therefor from any department, agency, or
office of the national government of from any higher local
government unit: Provided, That projects financed by such grants or
assistance with national security implications shall be approved by
the national agency concerned: Provided, further, That when such
national agency fails to act on the request for approval within thirty
(30) days from receipt thereof, the same shall be deemed approved.
The local chief executive shall, within thirty (30) days upon signing
of such grant agreement or deed of donation, report the nature,
amount, and terms of such assistance to both Houses of Congress
and the President.

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Section 24. Liability for Damages. - Local government units and their
officials are not exempt from liability for death or injury to persons
or damage to property.
CHAPTER III
Intergovernmental Relations
ARTICLE I
National Government and Local Government Units
Section 25. National Supervision over Local Government Units. -
(a) Consistent with the basic policy on local autonomy, the
President shall exercise general supervision over local
government units to ensure that their acts are within the scope
of their prescribed powers and functions.
The President shall exercise supervisory authority directly over
provinces, highly urbanized cities, and independent component
cities; through the province with respect to component cities
and municipalities; and through the city and municipality with
respect to barangays.
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(b) National agencies and offices with project implementation
functions shall coordinate with one another and with the local
government units concerned in the discharge of these
functions. They shall ensure the participation of local
government units both in the planning and implementation of
said national projects.
(c) The President may, upon request of the local government
unit concerned, direct the appropriate national agency to
provide financial, technical, or other forms of assistance to the
local government unit. Such assistance shall be extended at no
extra cost to the local government unit concerned.
(d) National agencies and offices including government-owned
or controlled corporations with field units or branches in a
province, city, or municipality shall furnish the local chief
executive concerned, for his information and guidance, monthly
reports including duly certified budgetary allocations and
expenditures.
Section 26. Duty of National Government Agencies in the
Maintenance of Ecological Balance. - It shall be the duty of every

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national agency or government-owned or controlled corporation
authorizing or involved in the planning and implementation of any
project or program that may cause pollution, climatic change,
depletion of non-renewable resources, loss of crop land, rangeland,
or forest cover, and extinction of animal or plant species, to consult
with the local government units, nongovernmental organizations,
and other sectors concerned and explain the goals and objectives of
the project or program, its impact upon the people and the
community in terms of environmental or ecological balance, and the
measures that will be undertaken to prevent or minimize the adverse
effects thereof.
Section 27. Prior Consultations Required. - No project or program
shall be implemented by government authorities unless the
consultations mentioned in Sections 2 (c) and 26 hereof are
complied with, and prior approval of the sanggunian concerned is
obtained: Provided, That occupants in areas where such projects
are to be implemented shall not be evicted unless appropriate
relocation sites have been provided, in accordance with the
provisions of the Constitution.
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ARTICLE II
Relations with the Philippine National Police
Section 28. Powers of Local Chief Executives over the Units of the
Philippine National Police. - The extent of operational supervision
and control of local chief executives over the police force, fire
protection unit, and jail management personnel assigned in their
respective jurisdictions shall be governed by the provisions of
Republic Act Numbered Sixty-nine hundred seventy-five (R.A. No.
6975), otherwise known as "The Department of the Interior and Local
Government Act of 1990", and the rules and regulations issued
pursuant thereto.
ARTICLE III
Inter-Local Government Relations
Section 29. Provincial Relations with Component Cities and
Municipalities. - The province, through the governor, shall ensure
that every component city and municipality within its territorial
jurisdiction acts within the scope of its prescribed powers and
functions. Highly urbanized cities and independent component
cities shall be independent of the province.

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Section 30. Review of Executive Orders. -
(a) Except as otherwise provided under the Constitution and
special statutes, the governor shall review all executive orders
promulgated by the component city or municipal mayor within
his jurisdiction. The city or municipal mayor shall review all
executive orders promulgated by the punong barangay within
his jurisdiction. Copies of such orders shall be forwarded to the
governor or the city or municipal mayor, as the case may be,
within three (3) days from their issuance. In all instances of
review, the local chief executive concerned shall ensure that
such executive orders are within the powers granted by law and
in conformity with provincial, city, or municipal ordinances.
(b) If the governor or the city or municipal mayor fails to act on
said executive orders within thirty (30) days after their
submission, the same shall be deemed consistent with law and
therefore valid.
Section 31. Submission of Municipal Questions to the Provincial
Legal Officer or Prosecutor. - In the absence of a municipal legal
officer, the municipal government may secure the opinion of the

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provincial legal officer, and in the absence of the latter, that of the
provincial prosecutor on any legal question affecting the
municipality.
Section 32. City and Municipal Supervision over Their Respective
Barangays. - The city or municipality, through the city or municipal
mayor concerned, shall exercise general supervision over
component barangays to ensure that said barangays act within the
scope of their prescribed powers and functions.
Section 33. Cooperative Undertakings Among Local Government
Units. - Local government units may, through appropriate
ordinances, group themselves, consolidate, or coordinate their
efforts, services, and resources for purposes commonly beneficial
to them. In support of such undertakings, the local government
units involved may, upon approval by the sanggunian concerned
after a public hearing conducted for the purpose, contribute funds,
real estate, equipment, and other kinds of property and appoint or
assign personnel under such terms and conditions as may be
agreed upon by the participating local units through Memoranda of
Agreement.
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CHAPTER IV
Relations With People's and Non-Governmental Organizations
Section 34. Role of People's and Non-governmental Organizations. -
Local government units shall promote the establishment and
operation of people's and non-governmental organizations to
become active partners in the pursuit of local autonomy.
Section 35. Linkages with People's and Non-governmental
Organizations. - Local government units may enter into joint
ventures and such other cooperative arrangements with people's
and non-governmental organizations to engage in the delivery of
certain basic services, capability-building and livelihood projects,
and to develop local enterprises designed to improve productivity
and income, diversity agriculture, spur rural industrialization,
promote ecological balance, and enhance the economic and social
well-being of the people.
Section 36. Assistance to People's and Non-governmental
Organizations. - A local government unit may, through its local chief
executive and with the concurrence of the sanggunian concerned,
provide assistance, financial or otherwise, to such people's and

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non-governmental organizations for economic, socially-oriented,
environmental, or cultural projects to be implemented within its
territorial jurisdiction.
CHAPTER V
Local Prequalification, Bids and Awards Committee
Section 37. Local Prequalification, Bids and Awards Committee
(Local PBAC). -
(a) There is hereby created a local prequalification, bids and
awards committee in every province, city, and municipality,
which shall be primarily responsible for the conduct of
prequalification of contractors, bidding, evaluation of bids, and
the recommendation of awards concerning local infrastructure
projects. The governor or the city or municipal mayor shall act
as the chairman with the following as members:
(1) The chairman of the appropriations committee of the
sanggunian concerned;
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(2) A representative of the minority party in the sanggunian
concerned, if any, or if there be none, one (1) chosen by
said sanggunian from among its members;
(3) The local treasurer;
(4) Two (2) representatives of non-governmental
organizations that are represented in the local
development council concerned, to be chosen by the
organizations themselves; and
(5) Any practicing certified public accountant from the
private sector, to be designated by the local chapter of the
Philippine Institute of Certified Public Accountants, if any.
Representatives of the Commission on Audit shall observe
the proceedings of such committee and shall certify that
the rules and procedures for prequalification, bids and
awards have been complied with.
(b) The agenda and other information relevant to the meetings
of such committee shall be deliberated upon by the committee
at least one (1) week before the holding of such meetings.

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(c) All meetings of the committee shall be held in the provincial
capitol or the city or municipal hall. The minutes of such
meetings of the committee and any decision made therein shall
be duly recorded, posted at a prominent place in the provincial
capitol or the city or municipal hall, and delivered by the most
expedient means to elective local officials concerned.
Section 38. Local Technical Committee. -
(a) There is hereby created a local technical committee in every
province, city and municipality to provide technical assistance
to the local prequalification, bids and awards committees. It
shall be composed of the provincial, city or municipal engineer,
the local planning and development coordinator, and such
other officials designated by the local prequalification, bids and
awards committee.
(b) The chairman of the local technical committee shall be
designated by the local prequalification, bids and awards
committee and shall attend its meeting in order to present the
reports and recommendations of the local technical committee.
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TITLE II
ELECTIVE OFFICIALS
CHAPTER I
Qualifications and Election
Section 39. Qualifications. -
(a) An elective local official must be a citizen of the Philippines;
a registered voter in the barangay, municipality, city, or
province or, in the case of a member of the sangguniang
panlalawigan, sangguniang panlungsod, or sangguniang
bayan, the district where he intends to be elected; a resident
therein for at least one (1) year immediately preceding the day
of the election; and able to read and write Filipino or any other
local language or dialect.
(b) Candidates for the position of governor, vice-governor, or
member of the sangguniang panlalawigan, or mayor, vice-
mayor or member of the sangguniang panlungsod of highly
urbanized cities must be at least twenty-one (21) years of age
on election day.
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(c) Candidates for the position of mayor or vice-mayor of
independent component cities, component cities, or
municipalities must be at least twenty-one (21) years of age on
election day.
(d) Candidates for the position of member of the sangguniang
panlungsod or sangguniang bayan must be at least eighteen
(18) years of age on election day.
(e) Candidates for the position of punong barangay or member
of the sangguniang barangay must be at least eighteen (18)
years of age on election day.
(f) Candidates for the sangguniang kabataan must be at least
fifteen (15) years of age but not more than twenty-one (21) years
of age on election day.
Section 40. Disqualifications. - The following persons are
disqualified from running for any elective local position:
(a) Those sentenced by final judgment for an offense involving
moral turpitude or for an offense punishable by one (1) year or
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more of imprisonment, within two (2) years after serving
sentence;
(b) Those removed from office as a result of an administrative
case;
(c) Those convicted by final judgment for violating the oath of
allegiance to the Republic;
(d) Those with dual citizenship;
(e) Fugitives from justice in criminal or non-political cases here
or abroad;
(f) Permanent residents in a foreign country or those who have
acquired the right to reside abroad and continue to avail of the
same right after the effectivity of this Code; and
(g) The insane or feeble-minded.
Section 41. Manner of Election. -
(a) The governor, vice-governor, city mayor, city vice-mayor,
municipal mayor, municipal vice-mayor, and punong barangay
shall be elected at large in their respective units by the qualified

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voters therein. However, the sangguniang kabataan chairman
for each barangay shall be elected by the registered voters of
the katipunan ng kabataan, as provided in this Code.
(b) The regular members of the sangguniang panlalawigan,
sangguniang panlungsod, and sangguniang bayan shall be
elected by district, as may be provided for by law. Sangguniang
barangay members shall be elected at large. The presidents of
the leagues of sanggunian members of component cities and
municipalities shall serve as ex officio members of the
sangguniang panlalawigan concerned. The presidents of the
"liga ng mga barangay and the pederasyon ng mga
sangguniang kabataan" elected by their respective chapters, as
provided in this Code, shall serve as ex officio members of the
sangguniang panlalawigan, sangguniang panlungsod, and
sangguniang bayan.
(c) In addition thereto, there shall be one (1) sectoral
representative from the women, one (1) from the workers, and
one (1) from any of the following sectors: the urban poor,
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other sector as may be determined by the sanggunian
concerned within ninety (90) days prior to the holding of the
next local elections as may be provided for by law. The
COMELEC shall promulgate the rules and regulations to
effectively provide for the election of such sectoral
representatives.
Section 42. Date of Election. - Unless otherwise provided by law, the
elections for local officials shall be held every three (3) years on the
second Monday of May.
Section 43. Term of Office. -
(a) The term of office of all local elective officials elected after
the effectivity of this Code shall be three (3) years, starting from
noon of June 30, 1992 or such date as may be provided for by
law, except that of elective barangay officials: Provided, That all
local officials first elected during the local elections
immediately following the ratification of the 1987 Constitution
shall serve until noon of June 30, 1992.
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(b) No local elective official shall serve for more than three (3)
consecutive terms in the same position. Voluntary renunciation
of the office for any length of time shall not be considered as an
interruption in the continuity of service for the full term for
which the elective official concerned was elected.
(c) The term of office of barangay officials and members of the
sangguniang kabataan shall be for three (3) years, which shall
begin after the regular election of barangay officials on the
second Monday of May 1994.
CHAPTER II
Vacancies and Succession
Section 44. Permanent Vacancies in the Offices of the Governor,
Vice-Governor, Mayor, and Vice-Mayor. - If a permanent vacancy
occurs in the office of the governor or mayor, the vice-governor or
vice-mayor concerned shall become the governor or mayor. If a
permanent vacancy occurs in the offices of the governor, vice-
governor, mayor, or vice-mayor, the highest ranking sanggunian
member or, in case of his permanent inability, the second highest
ranking sanggunian member, shall become the governor, vice-

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governor, mayor or vice-mayor, as the case may be. Subsequent
vacancies in the said office shall be filled automatically by the other
sanggunian members according to their ranking as defined herein.
(b) If a permanent vacancy occurs in the office of the punong
barangay, the highest ranking sanggunian barangay member
or, in case of his permanent inability, the second highest
ranking sanggunian member, shall become the punong
barangay.
(c) A tie between or among the highest ranking sanggunian
members shall be resolved by the drawing of lots.
(d) The successors as defined herein shall serve only the
unexpired terms of their predecessors.
For purposes of this Chapter, a permanent vacancy arises when
an elective local official fills a higher vacant office, refuses to
assume office, fails to qualify, dies, is removed from office,
voluntarily resigns, or is otherwise permanently incapacitated
to discharge the functions of his office.
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For purposes of succession as provided in the Chapter, ranking in
the sanggunian shall be determined on the basis of the proportion
of votes obtained by each winning candidate to the total number of
registered voters in each district in the immediately preceding local
election.
Section 45. Permanent Vacancies in the Sanggunian. -
(a) Permanent vacancies in the sanggunian where automatic
succession provided above do not apply shall be filled by
appointment in the following manner:
(1) The President, through the Executive Secretary, in the
case of the sangguniang panlalawigan and the
sangguniang panlungsod of highly urbanized cities and
independent component cities;
(2) The governor, in the case of the sangguniang
panlungsod of component cities and the sangguniang
bayan;
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(3) The city or municipal mayor, in the case of
sangguniang barangay, upon recommendation of the
sangguniang barangay concerned.
(b) Except for the sangguniang barangay, only the nominee of
the political party under which the sanggunian member
concerned had been elected and whose elevation to the
position next higher in rank created the last vacancy in the
sanggunian shall be appointed in the manner hereinabove
provided. The appointee shall come from the same political
party as that of the sanggunian member who caused the
vacancy and shall serve the unexpired term of the vacant office.
In the appointment herein mentioned, a nomination and a
certificate of membership of the appointee from the highest
official of the political party concerned are conditions sine qua
non, and any appointment without such nomination and
certification shall be null and void ab initio and shall be a
ground for administrative action against the official responsible
therefore.
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(c) In case or permanent vacancy is caused by a sanggunian
member who does not belong to any political party, the local
chief executive shall, upon recommendation of the sanggunian
concerned, appoint a qualified person to fill the vacancy.
(d) In case of vacancy in the representation of the youth and the
barangay in the sanggunian, said vacancy shall be filled
automatically by the official next in rank of the organization
concerned.
Section 46. Temporary Vacancy in the Office of the Local Chief
Executive. -
(a) When the governor, city or municipal mayor, or punong
barangay is temporarily incapacitated to perform his duties for
physical or legal reasons such as, but not limited to, leave of
absence, travel abroad, and suspension from office, the vice-
governor, city or municipal vice-mayor, or the highest ranking
sangguniang barangay member shall automatically exercise the
powers and perform the duties and functions of the local chief
executive concerned, except the power to appoint, suspend, or
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dismiss employees which can only be exercised if the period of
temporary incapacity exceeds thirty (30) working days.
(b) Said temporary incapacity shall terminate upon submission
to the appropriate sanggunian of a written declaration by the
local chief executive concerned that he has reported back to
office. In cases where the temporary incapacity is due to legal
causes, the local chief executive concerned shall also submit
necessary documents showing that said legal causes no longer
exist.
(c) When the incumbent local chief executive is traveling within
the country but outside his territorial jurisdiction for a period
not exceeding three (3) consecutive days, he may designate in
writing the officer-in-charge of the said office. Such
authorization shall specify the powers and functions that the
local official concerned shall exercise in the absence of the
local chief executive except the power to appoint, suspend, or
dismiss employees.
(d) In the event, however, that the local chief executive
concerned fails or refuses to issue such authorization, the vice-

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governor, the city or municipal vice-mayor, or the highest
ranking sangguniang barangay member, as the case may be,
shall have the right to assume the powers, duties, and
functions of the said office on the fourth (4th) day of absence of
the said local chief executive, subject to the limitations
provided in subsection (c) hereof.
(e) Except as provided above, the local chief executive shall in
no case authorize any local official to assume the powers,
duties, and functions of the office, other than the vice-governor,
the city or municipal vice-mayor, or the highest ranking
sangguniang barangay member, as the case may be.
Section 47. Approval of Leaves of Absence. -
(a) Leaves of absence of local elective officials shall be
approved as follows:
(1) Leaves of absence of the governor and the mayor of a
highly urbanized city or an independent component city
shall be approved by the President or his duly authorized
representative;
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(2) Leaves of absence of vice-governor or a city or
municipal vice-mayor shall be approved by the local chief
executive concerned: Provided, That the leaves of absence
of the members of the sanggunian and its employees shall
be approved by the vice-governor or city or municipal vice-
mayor concerned;
(3) Leaves of absence of the component city or municipal
mayor shall be approved by the governor; and
(4) Leaves of absence of a punong barangay shall be
approved by the city or municipal mayor: Provided, That
leaves of absence of sangguniang barangay members
shall be approved by the punong barangay.
(b) Whenever the application for leave of absence hereinabove
specified is not acted upon within five (5) working days after
receipt thereof, the application for leave of absence shall be
deemed approved.
CHAPTER III
Local Legislation
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Section 48. Local Legislative Power. - Local legislative power shall
be exercised by the sangguniang panlalawigan for the province; the
sangguniang panlungsod for the city; the sangguniang bayan for
the municipality; and the sangguniang barangay for the barangay.
Section 49. Presiding Officer. -
(a) The vice-governor shall be the presiding officer of the
sangguniang panlalawigan; the city vice-mayor, of the
sangguniang panlungsod; the municipal vice-mayor, of the
sangguniang bayan; and the punong barangay, of the
sangguniang barangay. The presiding officer shall vote only to
break a tie.
(b) In the event of the inability of the regular presiding officer to
preside at a sanggunian session, the members present and
constituting a quorum shall elect from among themselves a
temporary presiding officer. He shall certify within ten (10) days
from the passage of ordinances enacted and resolutions
adopted by the sanggunian in the session over which he
temporarily presided.
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Section 50. Internal Rules of Procedure. -
(a) On the first regular session following the election of its
members and within ninety (90) days thereafter, the sanggunian
concerned shall adopt or update its existing rules of procedure.
(b) The rules of procedure shall provided for the following:
(1) The organization of the sanggunian and the election of
its officers as well as the creation of standing committees
which shall include, but shall not be limited to, the
committees on appropriations, women and family, human
rights, youth and sports development, environmental
protection, and cooperatives; the general jurisdiction of
each committee; and the election of the chairman and
members of each committee;
(2) The order and calendar of business for each session;
(3) The legislative process;
(4) The parliamentary procedures which include the
conduct of members during sessions;
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(5) The discipline of members for disorderly behavior and
absences without justifiable cause for four (4) consecutive
sessions, for which they may be censured, reprimanded,
or excluded from the session, suspended for not more
than sixty (60) days, or expelled: Provided, That the
penalty of suspension or expulsion shall require the
concurrence of at least two-thirds (2/3) vote of all the
sanggunian members: Provided, further, That a member
convicted by final judgment to imprisonment of at least
one (1) year for any crime involving moral turpitude shall
be automatically expelled from the sanggunian; and
(6) Such other rules as the sanggunian may
adopt.lawphil
Section 51. Full Disclosure of Financial and Business Interests of
Sanggunian Members. -
(a) Every sanggunian member shall, upon assumption to office,
make a full disclosure of his business and financial interests, or
professional relationship or any relation by affinity or
consanguinity within the fourth civil degree, which he may have

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with any person, firm, or entity affected by any ordinance or
resolution under consideration by the sanggunian of which he
is a member, which relationship may result in conflict of
interest. Such relationship shall include:
(1) Ownership of stock or capital, or investment, in the
entity or firm to which the ordinance or resolution may
apply; and
(2) Contracts or agreements with any person or entity
which the ordinance or resolution under consideration
may affect.
In the absence of a specific constitutional or statutory
provision applicable to this situation, "conflict of interest"
refers in general to one where it may be reasonably
deduced that a member of a sanggunian may not act in the
public interest due to some private, pecuniary, or other
personal considerations that may tend to affect his
judgment to the prejudice of the service or the public.
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(b) The disclosure required under this Act shall be made in
writing and submitted to the secretary of the sanggunian or the
secretary of the committee of which he is a member. The
disclosure shall, in all cases, form part of the record of the
proceedings and shall be made in the following manner:
(1) Disclosure shall be made before the member
participates in the deliberations on the ordinance or
resolution under consideration: Provided, That, if the
member did not participate during the deliberations, the
disclosure shall be made before voting on the ordinance or
resolution on second and third readings; and
(2) Disclosure shall be made when a member takes a
position or makes a privilege speech on a matter that may
affect the business interest, financial connection, or
professional relationship described herein.
Section 52. Sessions. -
(a) On the first day of the session immediately following the
election of its members, the sanggunian shall, by resolution, fix
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the day, time, and place of its regular sessions. The minimum
numbers of regular sessions shall be once a week for the
sangguniang panlalawigan, sangguniang panlungsod, and
sangguniang bayan, and twice a month for the sangguniang
barangay.
(b) When public interest so demands, special sessions may be
called by the local chief executive or by a majority of the
members of the sanggunian.
(c) All sanggunian sessions shall be open to the public unless a
closed-door session is ordered by an affirmative vote of a
majority of the members present, there being a quorum, in the
public interest or for reasons of security, decency, or morality.
No two (2) sessions, regular or special, may be held in a single
day.
(d) In the case of special sessions of the sanggunian, a written
notice to the members shall be served personally at the
member's usual place of residence at least twenty-four (24)
hours before the special session is held.
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Unless otherwise concurred in by two-thirds (2/3) vote of the
sanggunian members present, there being a quorum, no other
matters may be considered at a special session except those
stated in the notice.
(e) Each sanggunian shall keep a journal and record of its
proceedings which may be published upon resolution of the
sanggunian concerned.
Section 53. Quorum. -
(a) A majority of all the members of the sanggunian who have
been elected and qualified shall constitute a quorum to transact
official business. Should a question of quorum be raised during
a session, the presiding officer shall immediately proceed to
call the roll of the members and thereafter announce the
results.
(b) Where there is no quorum, the presiding officer may declare
a recess until such time as a quorum is constituted, or a
majority of the members present may adjourn from day to day
and may compel the immediate attendance of any member
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absent without justifiable cause by designating a member of the
sanggunian to be assisted by a member or members of the
police force assigned in the territorial jurisdiction of the local
government unit concerned, to arrest the absent member and
present him at the session.
(c) If there is still no quorum despite the enforcement of the
immediately preceding subsection, no business shall be
transacted. The presiding officer, upon proper motion duly
approved by the members present, shall then declare the
session adjourned for lack of quorum.
Section 54. Approval of Ordinances. -
(a) Every ordinance enacted by the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan shall be
presented to the provincial governor or city or municipal mayor,
as the case may be. If the local chief executive concerned
approves the same, he shall affix his signature on each and
every page thereof; otherwise, he shall veto it and return the
same with his objections to the sanggunian, which may
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may override the veto of the local chief executive by two-thirds
(2/3) vote of all its members, thereby making the ordinance or
resolution effective for all legal intents and purposes.
(b) The veto shall be communicated by the local chief executive
concerned to the sanggunian within fifteen (15) days in the case
of a province, and ten (10) days in the case of a city or a
municipality; otherwise, the ordinance shall be deemed
approved as if he had signed it.
(c) Ordinances enacted by the sangguniang barangay shall,
upon approval by the majority of all its members, be signed by
the punong barangay.
Section 55. Veto Power of the Local Chief Executive. -
(a) The local chief executive may veto any ordinance of the
sanggunian panlalawigan, sangguniang panlungsod, or
sanggunian bayan on the ground that it is ultra vires or
prejudicial to the public welfare, stating his reasons therefor in
writing.
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(b) The local chief executive, except the punong barangay, shall
have the power to veto any particular item or items of an
appropriations ordinance, an ordinance or resolution adopting
a local development plan and public investment program, or an
ordinance directing the payment of money or creating liability.
In such a case, the veto shall not affect the item or items which
are not objected to. The vetoed item or items shall not take
effect unless the sanggunian overrides the veto in the manner
herein provided; otherwise, the item or items in the
appropriations ordinance of the previous year corresponding to
those vetoed, if any, shall be deemed reenacted.
(c) The local chief executive may veto an ordinance or
resolution only once. The sanggunian may override the veto of
the local chief executive concerned by two-thirds (2/3) vote of
all its members, thereby making the ordinance effective even
without the approval of the local chief executive concerned.
Section 56. Review of Component City and Municipal Ordinances or
Resolutions by the Sangguniang Panlalawigan.
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(a) Within three (3) days after approval, the secretary to the
sanggunian panlungsod or sangguniang bayan shall forward to
the sangguniang panlalawigan for review, copies of approved
ordinances and the resolutions approving the local
development plans and public investment programs formulated
by the local development councils.
(b) Within thirty (30) days after the receipt of copies of such
ordinances and resolutions, the sangguniang panlalawigan
shall examine the documents or transmit them to the provincial
attorney, or if there be none, to the provincial prosecutor for
prompt examination. The provincial attorney or provincial
prosecutor shall, within a period of ten (10) days from receipt of
the documents, inform the sangguniang panlalawigan in writing
of his comments or recommendations, which may be
considered by the sangguniang panlalawigan in making its
decision.
(c) If the sangguniang panlalawigan finds that such an
ordinance or resolution is beyond the power conferred upon
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concerned, it shall declare such ordinance or resolution invalid
in whole or in part. The sangguniang panlalawigan shall enter
its action in the minutes and shall advise the corresponding
city or municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang
panlalawigan within thirty (30) days after submission of such an
ordinance or resolution, the same shall be presumed consistent
with law and therefore valid.
Section 57. Review of Barangay Ordinances by the Sangguniang
Panlungsod or Sangguniang Bayan. -
(a) Within ten (10) days after its enactment, the sangguniang
barangay shall furnish copies of all barangay ordinances to the
sangguniang panlungsod or sangguniang bayan concerned for
review as to whether the ordinance is consistent with law and
city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as
the case may be, fails to take action on barangay ordinances
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within thirty (30) days from receipt thereof, the same shall be
deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as
the case may be, finds the barangay ordinances inconsistent
with law or city or municipal ordinances, the sanggunian
concerned shall, within thirty (30) days from receipt thereof,
return the same with its comments and recommendations to the
sangguniang barangay concerned for adjustment, amendment,
or modification; in which case, the effectivity of the barangay
ordinance is suspended until such time as the revision called
for is effected.
Section 58. Enforcement of Disapproved Ordinances or Resolutions.
- Any attempt to enforce any ordinance or any resolution approving
the local development plan and public investment program, after the
disapproval thereof, shall be sufficient ground for the suspension or
dismissal of the official or employee concerned.
Section 59. Effectivity of Ordinances or Resolutions. -
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(a) Unless otherwise stated in the ordinance or the resolution
approving the local development plan and public investment
program, the same shall take effect after ten (10) days from the
date a copy thereof is 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) other conspicuous
places in the local government unit concerned.
(b) The secretary to the sanggunian concerned shall cause the
posting of an ordinance or resolution in the bulletin board at
the entrance of the provincial capitol and the city, municipal, or
barangay hall in at least two (2) conspicuous places in the local
government unit concerned not later than five (5) days after
approval thereof.
The text of the ordinance or resolution shall be disseminated
and posted in Filipino or English and in the language
understood by the majority of the people in the local
government unit concerned, and the secretary to the
sanggunian shall record such fact in a book kept for the
purpose, stating the dates of approval and posting.

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(c) The gist of all ordinances with penal sanctions shall be
published in a newspaper of general circulation within the
province where the local legislative body concerned belongs. In
the absence of any newspaper of general circulation within the
province, posting of such ordinances shall be made in all
municipalities and cities of the province where the sanggunian
of origin is situated.
(d) In the case of highly urbanized and independent component
cities, the main features of the ordinance or resolution duly
enacted or adopted shall, in addition to being posted, be
published once in a local newspaper of general circulation
within the city: Provided, That in the absence thereof the
ordinance or resolution shall be published in any newspaper of
general circulation.
CHAPTER IV
Disciplinary Actions
Section 60. Grounds for Disciplinary Actions. - An elective local
official may be disciplined, suspended, or removed from office on
any of the following grounds:

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(a) Disloyalty to the Republic of the Philippines;
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in office, gross
negligence, or dereliction of duty;
(d) Commission of any offense involving moral turpitude or an
offense punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15) consecutive working
days, except in the case of members of the sangguniang
panlalawigan, sangguniang panlungsod, sangguniang bayan,
and sangguniang barangay;
(g) Application for, or acquisition of, foreign citizenship or
residence or the status of an immigrant of another country; and
(h) Such other grounds as may be provided in this Code and
other laws.
An elective local official may be removed from office on the grounds
enumerated above by order of the proper court.

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Section 61. Form and Filing of Administrative Complaints. - A
verified complaint against any erring local elective official shall be
prepared as follows:
(a) A complaint against any elective official of a province, a
highly urbanized city, an independent component city or
component city shall be filed before the Office of the President;
(b) A complaint against any elective official of a municipality
shall be filed before the sangguniang panlalawigan whose
decision may be appealed to the Office of the President; and
(c) A complaint against any elective barangay official shall be
filed before the sangguniang panlungsod or sangguniang
bayan concerned whose decision shall be final and executory.
Section 62. Notice of hearing. -
(a) Within seven (7) days after the administrative complaint is
filed, the Office of the President or the sanggunian concerned,
as the case may be, shall require the respondent to submit his
verified answer within fifteen (15) days from receipt thereof, and
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commence the investigation of the case within ten (10) days
after receipt of such answer of the respondent.
(b) When the respondent is an elective official of a province or
highly urbanized city, such hearing and investigation shall be
conducted in the place where he renders or holds office. For all
other local elective officials, the venue shall be the place where
the sanggunian concerned is located.
(c) However, no investigation shall be held within ninety (90)
days immediately prior to any local election, and no preventive
suspension shall be imposed within the said period. If
preventive suspension has been imposed prior to the 90-day
period immediately preceding local election, it shall be deemed
automatically lifted upon the start of aforesaid period.
Section 63. Preventive Suspension. -
(a) Preventive suspension may be imposed:
(1) By the President, if the respondent is an elective official
of a province, a highly urbanized or an independent
component city;
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(2) By the governor, if the respondent is an elective official
of a component city or municipality; or
(3) By the mayor, if the respondent is an elective official of
the barangay.
(b) Preventive suspension may be imposed at any time after the
issues are joined, when the evidence of guilt is strong, and
given the gravity of the offense, there is great probability that
the continuance in office of the respondent could influence the
witnesses or pose a threat to the safety and integrity of the
records and other evidence: Provided, That, any single
preventive suspension of local elective officials shall not
extend beyond sixty (60) days: Provided, further, That in the
event that several administrative cases are filed against an
elective official, he cannot be preventively suspended for more
than ninety (90) days within a single year on the same ground
or grounds existing and known at the time of the first
suspension.
(c) Upon expiration of the preventive suspension, the
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without prejudice to the continuation of the proceedings
against him, which shall be terminated within one hundred
twenty (120) days from the time he was formally notified of the
case against him. However, if the delay in the proceedings of
the case is due to his fault, neglect, or request, other than the
appeal duly filed, the duration of such delay shall not be
counted in computing the time of termination of the case.
(d) Any abuse of the exercise of the power of preventive
suspension shall be penalized as abuse of authority.
Section 64. Salary of Respondent Pending Suspension. - The
respondent official preventively suspended from office shall receive
no salary or compensation during such suspension; but upon
subsequent exoneration and reinstatement, he shall be paid full
salary or compensation including such emoluments accruing during
such suspension.
Section 65. Rights of Respondent. - The respondent shall be
accorded full opportunity to appear and defend himself in person or
by counsel, to confront and cross-examine the witnesses against
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him, and to require the attendance of witnesses and the production
of documentary process of subpoena or subpoena duces tecum.
Section 66. Form and Notice of Decision. -
(a) The investigation of the case shall be terminated within
ninety (90) days from the start thereof. Within thirty (30) days
after the end of the investigation, the Office of the President or
the sanggunian concerned shall render a decision in writing
stating clearly and distinctly the facts and the reasons for such
decision. Copies of said decision shall immediately be
furnished the respondent and all interested parties.
(b) The penalty of suspension shall not exceed the unexpired
term of the respondent or a period of six (6) months for every
administrative offense, nor shall said penalty be a bar to the
candidacy of the respondent so suspended as long as he meets
the qualifications required for the office.
(c) The penalty of removal from office as a result of an
administrative investigation shall be considered a bar to the
candidacy of the respondent for any elective position.
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Section 67. Administrative Appeals. - Decisions in administrative
cases may, within thirty (30) days from receipt thereof, be appealed
to the following:
(a) The sangguniang panlalawigan, in the case of decisions of
the sangguniang panlungsod of component cities and the
sangguniang bayan; and
(b) The Office of the President, in the case of decisions of the
sangguniang panlalawigan and the sangguniang panlungsod of
highly urbanized cities and independent component cities.
Decisions of the Office of the President shall be final and executory.
Section 68. Execution Pending Appeal. - An appeal shall not prevent
a decision from becoming final or executory. The respondent shall
be considered as having been placed under preventive suspension
during the pendency of an appeal in the event he wins such appeal.
In the event the appeal results in an exoneration, he shall be paid his
salary and such other emoluments during the pendency of the
appeal.
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CHAPTER V
Recall
Section 69. By Whom Exercised. - The power of recall for loss of
confidence shall be exercised by the registered voters of a local
government unit to which the local elective official subject to such
recall belongs.
Section 70. Initiation of the Recall Process. -
(a) Recall may be initiated by a preparatory recall assembly or
by the registered voters of the local government unit to which
the local elective official subject to such recall belongs.
(b) There shall be a preparatory recall assembly in every
province, city, district, and municipality which shall be
composed of the following:
(1) Provincial level. - All mayors, vice-mayors, and
sanggunian members of the municipalities and component
cities;
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(2) City level. - All punong barangay and sanggunian
barangay members in the city;
(3) Legislative District level. - In case where sangguniang
panlalawigan members are elected by district, all elective
municipal officials in the district; and in cases where
sangguniang panlungsod members are elected by district,
all elective barangay officials in the district; and
(4) Municipal level. - All punong barangay and
sangguniang barangay members in the municipality.
(c) A majority of all the preparatory recall assembly members
may convene in session in a public place and initiate a recall
proceedings against any elective official in the local
government unit concerned. Recall of provincial, city, or
municipal officials shall be validly initiated through a resolution
adopted by a majority of all the members of the preparatory
recall assembly concerned during its session called for the
purpose.
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(d) Recall of any elective provincial, city, municipal, or barangay
official may also be validly initiated upon petition of at least
twenty-five percent (25%) of the total number of registered
voters in the local government unit concerned during the
election in which the local official sought to be recalled was
elected.
(1) A written petition for recall duly signed before the
election registrar or his representative, and in the presence
of a representative of the petitioner and a representative of
the official sought to be recalled and, and in a public place
in the province, city, municipality, or barangay, as the case
may be, shall be filed with the COMELEC through its office
in the local government unit concerned. The COMELEC or
its duly authorized representative shall cause the
publication of the petition in a public and conspicuous
place for a period of not less than ten (10) days nor more
than twenty (20) days, for the purpose of verifying the
authenticity and genuineness of the petition and the
required percentage of voters.
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(2) Upon the lapse of the aforesaid period, the COMELEC
or its duly authorized representative shall announce the
acceptance of candidates to the position and thereafter
prepare the list of candidates which shall include the name
of the official sought to be recalled.
Section 71. Election on Recall. - Upon the filing of a valid resolution
or petition for recall with the appropriate local office of the
COMELEC, the Commission or its duly authorized representative
shall set the date of the election on recall, which shall not be later
than thirty (30) days after the filing of the resolution or petition for
recall in the case of the barangay, city, or municipal officials. and
forty-five (45) days in the case of provincial officials. The official or
officials sought to be recalled shall automatically be considered as
duly registered candidate or candidates to the pertinent positions
and, like other candidates, shall be entitled to be voted upon.
Section 72. Effectivity of Recall. - The recall of an elective local
official shall be effective only upon the election and proclamation of
a successor in the person of the candidate receiving the highest
number of votes cast during the election on recall. Should the

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official sought to be recalled receive the highest number of votes,
confidence in him is thereby affirmed, and he shall continue in
office.
Section 73. Prohibition from Resignation. - The elective local official
sought to be recalled shall not be allowed to resign while the recall
process is in progress.
Section 74. Limitations on Recall. -
(a) Any elective local official may be the subject of a recall
election only once during his term of office for loss of
confidence.
(b) No recall shall take place within one (1) year from the date of
the official's assumption to office or one (1) year immediately
preceding a regular local election.
Section 75. Expenses Incident to Recall Elections. - All expenses
incident to recall elections shall be borne by the COMELEC. For this
purpose, there shall be included in the annual General
Appropriations Act a contingency fund at the disposal of the
COMELEC for the conduct of recall elections.

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TITLE III.
HUMAN RESOURCES AND DEVELOPMENT
Section 76. Organizational Structure and Staffing Pattern. - Every
local government unit shall design and implement its own
organizational structure and staffing pattern taking into
consideration its service requirements and financial capability,
subject to the minimum standards and guidelines prescribed by the
Civil Service Commission.
Section 77. Responsibility for Human Resources and Development. -
The chief executive of every local government unit shall be
responsible for human resources and development in his unit and
shall take all personnel actions in accordance with the
Constitutional provisions on civil service, pertinent laws, and rules
and regulations thereon, including such policies, guidelines and
standards as the Civil Service Commission may establish: Provided,
That the local chief executive may employ emergency or casual
employees or laborers paid on a daily wage or piecework basis and
hired through job orders for local projects authorized by the
sanggunian concerned, without need of approval or attestation by

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the Civil Service Commission: Provided, further, That the period of
employment of emergency or casual laborers as provided in this
Section shall not exceed six (6) months.
The Joint Commission on Local Government Personnel
Administration organized pursuant to Presidential Decree Numbered
Eleven Hundred thirty-six (P.D. No. 1136) is hereby abolished and its
personnel, records, equipment and other assets transferred to the
appropriate office in the Civil Service Commission.
Section 78. Civil Service Law, Rules and Regulations, and Other
Related Issuances. - All matters pertinent to human resources and
development in local government units shall be governed by the
civil service law and such rules and regulations and other issuances
promulgated pursuant thereto, unless otherwise specified in this
Code.
Section 79. Limitation to Appointments. - No person shall be
appointed in the career service of the local government if he is
related within the fourth civil degree of consanguinity or affinity to
the appointing or recommending authority.
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Section 80. Public Notice of Vacancy; Personnel Selection Board. -
(a) Whenever a local executive decides to fill a vacant career
position, there shall be posted notices of the vacancy in at least
three (3) conspicuous public places in the local government
unit concerned for a period of not less than fifteen (15) days.
(b) There shall be established in every province, city or
municipality a personnel selection board to assist the local
chief executive in the judicious and objective selection or
personnel for employment as well as for promotion, and in the
formulation of such policies as would contribute to employee
welfare.
(c) The personnel selection board shall be headed by the local
chief executive, and its members shall be determined by
resolution of the sanggunian concerned. A representative of the
Civil Service Commission, if any, and the personnel officer of
the local government unit concerned shall be ex officio
members of the board.
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Section 81. Compensation of Local Officials and Employees. - The
compensation of local officials and personnel shall be determined
by the sanggunian concerned: Provided, That the increase in
compensation of elective local officials shall take effect only after
the terms of office of those approving such increase shall have
expired: Provided, further, That the increase in compensation of the
appointive officials and employees shall take effect as provided in
the ordinance authorizing such increase: Provided, however, That
said increases shall not exceed the limitations on budgetary
allocations for personal services provided under Title Five, Book II
of this Code: Provided, finally, That such compensation may be
based upon the pertinent provisions of Republic Act Numbered
Sixty-seven fifty-eight (R.A. No 6758), otherwise known as the
"Compensation and Position Classification Act of 1989".
The punong barangay, the sangguniang barangay member, the
sangguniang kabataan chairman, the barangay treasurer, and the
barangay secretary shall be entitled to such compensation,
allowances, emoluments, and such other privileges as provided
under Title One Book III of this Code.
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Elective local officials shall be entitled to the same leave privileges
as those enjoyed by appointive local officials, including the
cumulation and commutation thereof.
Section 82. Resignation of Elective Local Officials. -
(a) Resignations by elective local officials shall be deemed
effective only upon acceptance by the following authorities:
(1) The President, in the case of governors, vice-
governors, and mayors and vice-mayors of highly
urbanized cities and independent component cities;
(2) The governor, in the case of municipal mayors,
municipal vice-mayors, city mayors and city vice-mayors
of component cities;
(3) The sanggunian concerned, in the case of sanggunian
members; and
(4) The city or municipal mayor, in the case of barangay
officials.
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(b) Copies of the resignation letters of elective local officials,
together with the action taken by the aforesaid authorities, shall
be furnished the Department of the Interior and Local
Government.
(c) The resignation shall be deemed accepted if not acted upon
by the authority concerned within fifteen (15) days from receipt
thereof.
(d) Irrevocable resignations by sanggunian members shall be
deemed accepted upon presentation before an open session of
the sanggunian concerned and duly entered in its records:
Provided, however, That this subsection does not apply to
sanggunian members who are subject to recall elections or to
cases where existing laws prescribed the manner of acting
upon such resignations.
Section 83. Grievance Procedure. - In every local government unit,
the local chief executive shall establish a procedure to inquire into,
act upon, resolve or settle complaints and grievances presented by
local government employees.
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Section 84. Administrative Discipline. - Investigation and
adjudication of administrative complaints against appointive local
officials and employees as well as their suspension and removal
shall be in accordance with the civil service law and rules and other
pertinent laws. The results of such administrative investigations
shall be reported to the Civil Service Commission.
Section 85. Preventive Suspension of Appointive Local Officials and
Employees. -
(a) The local chief executives may preventively suspend for a
period not exceeding sixty (60) days and subordinate official or
employee under his authority pending investigation if the
charge against such official or employee involves dishonesty,
oppression or grave misconduct or neglect in the performance
of duty, or if there is reason to believe that the respondent is
guilty of the charges which would warrant his removal from the
service.
(b) Upon expiration of the preventive suspension, the
suspended official or employee shall be automatically
reinstated in office without prejudice to the continuation of the

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administrative proceedings against him until its termination. If
the delay in the proceedings of the case is due to the fault,
neglect or request of the respondent, the time of the delay shall
not be counted in computing the period of suspension herein
provided.
Section 86. Administrative Investigation. - In any local government
unit, administrative investigation may be conducted by a person or a
committee duly authorized by the local chief executive. Said person
or committee shall conduct hearings on the cases brought against
appointive local officials and employees and submit their findings
and recommendations to the local chief executive concerned within
fifteen (15) days from the conclusion of the hearings. The
administrative cases herein mentioned shall be decided within
ninety (90) days from the time the respondent is formally notified of
the charges.
Section 87. Disciplinary Jurisdiction. - Except as otherwise provided
by law, the local chief executive may impose the penalty of removal
from service, demotion in rank, suspension for not more than one
(1) year without pay, fine in an amount not exceeding six (6) months
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salary, or reprimand and otherwise discipline subordinate officials
and employees under his jurisdiction. If the penalty imposed is
suspension without pay for not more than thirty (30) days, his
decision shall be final. If the penalty imposed is heavier than
suspension of thirty (30) days, the decision shall be appealable to
the Civil Service Commission, which shall decide the appeal within
thirty (30) days from receipt thereof.
Section 88. Execution Pending Appeal. - An appeal shall not prevent
the execution of a decision of removal or suspension of a
respondent-appellant. In case the respondent-appellant is
exonerated, he shall be reinstated to his position with all the rights
and privileges appurtenant thereto from the time he had been
deprived thereof.
Section 89. Prohibited Business and Pecuniary Interest. -
(a) It shall be unlawful for any local government official or
employee, directly or indirectly, to:
(1) Engage in any business transaction with the local
government unit in which he is an official or employee or
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over which he has the power of supervision, or with any of
its authorized boards, officials, agents, or attorneys,
whereby money is to be paid, or property or any other
thing of value is to be transferred, directly or indirectly, out
of the resources of the local government unit to such
person or firm;
(2) Hold such interests in any cockpit or other games
licensed by a local government unit;
(3) Purchase any real estate or other property forfeited in
favor of such local government unit for unpaid taxes or
assessment, or by virtue of a legal process at the instance
of the said local government unit;
(4) Be a surety for any person contracting or doing
business with the local government unit for which a surety
is required; and
(5) Possess or use any public property of the local
government unit for private purposes.
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(b) All other prohibitions governing the conduct of national
public officers relating to prohibited business and pecuniary
interest so provided for under Republic Act Numbered Sixty-
seven thirteen (R.A. No. 6713) otherwise known as the "Code of
Conduct and Ethical Standards for Public Officials and
Employees" and other laws shall also be applicable to local
government officials and employees.
Section 90. Practice of Profession. -
(a) All governors, city and municipal mayors are prohibited
from practicing their profession or engaging in any occupation
other than the exercise of their functions as local chief
executives.
(b) Sanggunian members may practice their professions,
engage in any occupation, or teach in schools except during
session hours: Provided, That sanggunian members who are
also members of the Bar shall not:
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(1) Appear as counsel before any court in any civil case
wherein a local government unit or any office, agency, or
instrumentality of the government is the adverse party;
(2) Appear as counsel in any criminal case wherein an
officer or employee of the national or local government is
accused of an offense committed in relation to his office.
(3) Collect any fee for their appearance in administrative
proceedings involving the local government unit of which
he is an official; and
(4) Use property and personnel of the government except
when the sanggunian member concerned is defending the
interest of the government.
(c) Doctors of medicine may practice their profession even
during official hours of work only on occasions of emergency:
Provided, That the officials concerned do not derive monetary
compensation therefrom.
Section 91. Statement of Assets and Liabilities. - (a) Officials and
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assets, liabilities and net worth, lists of relatives within the fourth
civil degree of consanguinity or affinity in government service,
financial and business interests, and personnel data sheets as
required by law.
Section 92. Oath of Office. - (a) All elective and appointive local
officials and employees shall, upon assumption to office, subscribe
to an oath or affirmation of office in the prescribed form. The oath or
affirmation of office shall be filed with the office of the local chief
executive concerned. A copy of the oath or affirmation of office of all
elective and appointive local officials and employees shall be
preserved in the individual personal records file under the custody
of the personnel office, division, or section of the local government
unit concerned.
Section 93. Partisan Political Activity. - No local official or employee
in the career civil service shall engage directly or indirectly in any
partisan political activity or take part in any election, initiative,
referendum, plebiscite, or recall, except to vote, nor shall he use his
official authority or influence to cause the performance of any
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his views on current issues, or mention the names of certain
candidates for public office whom he supports. Elective local
officials may take part in partisan political and electoral activities,
but it shall be unlawful for them to solicit contributions from their
subordinates or subject these subordinates to any of the prohibited
acts under the Omnibus Election Code.
Section 94. Appointment of Elective and Appointive Local Officials;
Candidates Who Lost in an Election. - (a) No elective or appointive
local official shall be eligible for appointment or designation in any
capacity to any public office or position during his tenure.
Unless otherwise allowed by law or by the primary functions of his
position, no elective or appointive local official shall hold any other
office or employment in the government or any subdivision, agency
or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries.
Section 95. Additional or Double Compensation. - No elective or
appointive local official or employee shall receive additional, double,
or indirect compensation, unless specifically authorized by law, nor
accept without the consent of Congress, any present, emoluments,

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office, or title of any kind from any foreign government. Pensions or
gratuities shall not be considered as additional, double, or indirect
compensation.
Section 96. Permission to Leave Station. -
(a) Provincial, city, municipal, and barangay appointive officials
going on official travel shall apply and secure written
permission from their respective local chief executives before
departure. The application shall specify the reasons for such
travel, and the permission shall be given or withheld based on
considerations of public interest, financial capability of the
local government unit concerned and urgency of the travel.
Should the local chief executive concerned fall to act upon
such application within four (4) working days from receipt
thereof, it shall be deemed approved.
(b) Mayors of component cities and municipalities shall secure
the permission of the governor concerned for any travel outside
the province.
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(c) Local government officials traveling abroad shall notify their
respective sanggunian: Provided, That when the period of
travel extends to more than three (3) months, during periods of
emergency or crisis or when the travel involves the use of
public funds, permission from the Office of the President shall
be secured.
(d) Field officers of national agencies or offices assigned in
provinces, cities, and municipalities shall not leave their official
stations without giving prior written notice to the local chief
executive concerned. Such notice shall state the duration of
travel and the name of the officer whom he shall designate to
act for and in his behalf during his absence.
Section 97. Annual Report. - On or before March 31 of each year,
every local chief executive shall submit an annual report to the
sanggunian concerned on the socio-economic, political and peace
and order conditions, and other matters concerning the local
government unit, which shall cover the immediately preceding
calendar year. A copy of the report shall be forwarded to the
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and municipalities shall likewise provide the sangguniang
panlalawigan copies of their respective annual reports.
TITLE IV
LOCAL SCHOOL BOARDS
Section 98. Creation, Composition, and Compensation. -
(a) There shall be established in every province, city, or
municipality a provincial, city, or municipal school board,
respectively.
(b) The composition of local school boards shall be as follows:
(1) The provincial school board shall be composed of the
governor and the division superintendent of schools as co-
chairman; the chairman of the education committee of the
sangguniang panlalawigan, the provincial treasurer, the
representative of the "pederasyon ng mga sangguniang
kabataan" in the sangguniang panlalawigan, the duly
elected president of the provincial federation of parents-
teachers associations, the duly elected representative of
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elected representative of the non-academic personnel of
public schools in the province, as members;
(2) The city school board shall be composed of the city
mayor and the city superintendent of schools as co-
chairmen; the chairman of the education committee of the
sangguniang panlungsod, the city treasurer, the
kabataan" in the sangguniang panlungsod, the duly
elected president of the city federation of parents- teachers
associations, the duly elected representative of the
teachers' organizations in the city, and the duly elected
representative of the non-academic personnel of public
schools in the city, as members; and
(3) The municipal school board shall be composed of the
municipal mayor and the district supervisor of schools as
co-chairmen; the chairman of the education committee of
the sangguniang bayan, the municipal treasurer, the
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president of the municipal federation of parent-teacher
associations, the duly elected representative of the
teachers' organizations in the municipality, and the duly
elected representative of the non-academic personnel of
public schools in the municipality, as members.
(c) In the event that a province or city has two (2) or more
school superintendents, and in the event that a municipality
has two (2) or more district supervisors, the co-chairman of the
local school board shall be determined as follows:
(1) The Department of Education, Culture and Sports shall
designate the co-chairman for the provincial and city school
boards; and
(2) The division superintendent of schools shall designate the
district supervisor who shall serve as co-chairman of the
municipal school board.
(d) The performance of the duties and responsibilities of the
abovementioned officials in their respective local school
boards shall not be delegated.
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Section 99. Functions of Local School Boards. - The provincial, city
or municipal school board shall:
(a) Determine, in accordance with the criteria set by the
Department of Education, Culture and Sports, the annual
supplementary budgetary needs for the operation and
maintenance of public schools within the province, city, or
municipality, as the case may be, and the supplementary local
cost of meeting such as needs, which shall be reflected in the
form of an annual school board budget corresponding to its
share of the proceeds of the special levy on real property
constituting the Special Education Fund and such other
sources of revenue as this Code and other laws or ordinances
may provide;
(b) Authorize the provincial, city or municipal treasurer, as the
case may be, to disburse funds from the Special Education
Fund pursuant to the budget prepared and in accordance with
existing rules and regulations;
(c) Serve as an advisory committee to the sanggunian
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the necessity for and the uses of local appropriations for
educational purposes; and
(d) Recommend changes in the names of public schools within
the territorial jurisdiction of the local government unit for
enactment by the sanggunian concerned.
The Department of Education, Culture and Sports shall consult the
local school board on the appointment of division superintendents,
district supervisors, school principals, and other school officials.
Section 100. Meetings and Quorum; Budget. -
(a) The local school board shall meet at least once a month or
as often as may be necessary.
(b) Any of the co-chairmen may call a meeting. A majority of all
its members shall constitute a quorum. However, when both co-
chairmen are present in a meeting, the local chief executive
concerned, as a matter of protocol, shall be given preference to
preside over the meeting. The division superintendent, city
superintendent or district supervisor, as the case may be, shall
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budget shall be supported by programs, projects, and activities
of the school board for the ensuing fiscal year. The affirmative
vote of the majority of all the members shall be necessary to
approve the budget.
(c) The annual school board budget shall give priority to the
following:
(1) Construction, repair, and maintenance of school
buildings and other facilities of public elementary and
secondary schools;
(2) Establishment and maintenance of extension classes
where necessary; and
(3) Sports activities at the division, district, municipal, and
barangay levels.
Section 101. Compensation and Remuneration. - The co-chairmen
and members of the provincial, city or municipal school board shall
perform their duties as such without compensation or remuneration.
Members thereof who are not government officials or employees
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chargeable against the funds of the local school board concerned,
subject to existing accounting and auditing rules and regulations.
TITLE V
LOCAL HEALTH BOARDS
Section 102. Creation and Composition. -
(a) There shall be established a local health board in every
province, city, or municipality. The composition of the local
health boards shall be as follows:
(1) The provincial health board shall be headed by the
governor as chairman, the provincial health officer as vice-
chairman, and the chairman of the committee on health of
the sangguniang panlalawigan, a representative from the
private sector or non-governmental organizations involved
in health services, and a representative of the Department
of Health in the province, as members;
(2) The city health board shall be headed by the city mayor
as chairman, the city health officer as vice-chairman, and
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sangguniang panlungsod, a representative from the
of Health in the city, as members; and
(3) The municipal health board shall be headed by the
municipal mayor as chairman, the municipal health officer
as vice-chairman, and the chairman of the committee on
health of the sangguniang bayan, a representative from the
of Health in the municipality, as members.
(b) The functions of the local health board shall be:
(1) To propose to the sanggunian concerned, in
accordance with standards and criteria set by the
Department of Health, annual budgetary allocations for the
operation and maintenance of health facilities and services
within the municipality, city or province, as the case may
be;
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(2) To serve as an advisory committee to the sanggunian
concerned on health matters such as, but not limited to,
the necessity for, and application of local appropriations
for public health purposes; and
(3) Consistent with the technical and administrative
standards of the Department of Health, create committees
which shall advise local health agencies on matters such
as, but not limited to, personnel selection and promotion,
bids and awards, grievance and complaints, personnel
discipline, budget review, operations review and similar
functions.
Section 103. Meetings and Quorum. -
(a) The board shall meet at least once a month or as may be
necessary.
(b) A majority of the members of the board shall constitute a
quorum, but the chairman or the vice- chairman must be
present during meetings where budgetary proposals are being
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prepared or considered. The affirmative vote of all the majority
of the members shall be necessary to approve such proposals.
Section 104. Compensation and Remuneration. - The chairman, vice-
chairman, and members of the provincial, city or municipal health
board shall perform their duties as such without compensation or
remuneration. Members thereof who are not government officials or
employees shall be entitled to necessary traveling expenses and
allowances chargeable against the funds of the local health board
concerned, subject to existing accounting and auditing rules and
regulations.
Section 105. Direct National Supervision and Control by the
Secretary of Health. - In cases of epidemics, pestilence, and other
widespread public health dangers, the Secretary of Health may,
upon the direction of the President and in consultation with the local
government unit concerned, temporarily assume direct supervision
and control over health operations in any local government unit for
the duration of the emergency, but in no case exceeding a
cumulative period of six (6) months. With the concurrence of the
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government unit concerned, the period for such direct national
control and supervision may be further extended.
TITLE VI
LOCAL DEVELOPMENT COUNCILS
Section 106. Local Development Councils. - (a) Each local
government unit shall have a comprehensive multi-sectoral
development plan to be initiated by its development council and
approved by its sanggunian. For this purpose, the development
council at the provincial, city, municipal, or barangay level, shall
assist the corresponding sanggunian in setting the direction of
economic and social development, and coordinating development
efforts within its territorial jurisdiction.
Section 107. Composition of Local Development Councils. - The
composition of the local development council shall be as follows:
(1) Members of the sangguniang barangay;
(2) Representatives of non-governmental organizations
operating in the barangay who shall constitute not less
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than one fourth () of the members of the fully organized
council;
(3) A representative of the congressman.
(b) The city or municipal development council shall be headed
by the mayor and shall be composed of the following members:
(1) All punong barangays in the city or municipality;
(2) The chairman of the committee on appropriations of the
sangguniang panlungsod or sangguniang bayan
concerned;
(3) The congressman or his representative; and
operating in the city or municipality, as the case may be,
who shall constitute not less than one-fourth () of the
members of the fully organized council.
(c) The provincial development council shall be headed by the
governor and shall be composed of the following members:
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(2) The chairman of the committee on appropriations of the
sangguniang panlalawigan;
(3) The congressman or his representative; and
operating in the province, who shall constitute not less
than one-fourth () of the members of the fully organized
council.
(d) The local development councils may call upon any local
official concerned or any official of national agencies or offices
in the local government unit to assist in the formulation of their
respective development plans and public investment programs.
Section 108. Representation of Non-governmental Organizations. -
Within a period of sixty (60) days from the start of organization of
local development councils, the non-governmental organizations
shall choose from among themselves their representatives to said
councils. The local sanggunian concerned shall accredit non-
governmental organizations subject to such criteria as may be
provided by law.
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Section 109. Functions of Local Development Councils. -
(a) The provincial, city, and municipal development councils
shall exercise the following functions:
(1) Formulate long-term, medium-term, and annual socio-
economic development plans and policies;
(2) Formulate the medium-term and annual public
investment programs;
(3) Appraise and prioritize socio-economic development
programs and projects;
(4) Formulate local investment incentives to promote the
inflow and direction of private investment capital;
(5) Coordinate, monitor, and evaluate the implementation
of development programs and projects; and
(6) Perform such other functions as may be provided by
law or component authority.
(b) The barangay development council shall exercise the
following functions:
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(1) Mobilize people's participation in local development
efforts;
(2) Prepare barangay development plans based on local
requirements;
(3) Monitor and evaluate the implementation of national or
local programs and projects; and
(4) Perform such other functions as may be provided by
law or competent authority.
Section 110. Meetings and Quorum. - The local development council
shall meet at least once every six (6) months or as often as may be
necessary.
Section 111. Executive Committee. - The local development council
shall create an executive committee to represent it and act in its
behalf when it is not in session. The composition of the executive
committee shall be as follows:
(1) The executive committee of the provincial development
council shall be composed of the governor as chairman,
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the representative of component city and municipal
mayors to be chosen from among themselves, the
chairman of the committee on appropriations of the
sangguniang panlalawigan, the president of the provincial
league of barangays, and a representative of non-
governmental organizations that are represented in the
council, as members;
(2) The executive committee of the city or municipal
development council shall be composed of the mayor as
chairman, the chairman of the committee on
appropriations of the sangguniang panlalawigan, the
president of the city or municipal league of barangays, and
a representative of non-governmental organizations that
are represented in the council, as members; and
(3) The executive committee of the barangay development
council shall be composed of the punong barangay as
chairman, a representative of the sangguniang barangay to
be chosen from among its members, and a representative
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of non-governmental organizations that are represented in
the council, as members.
(b) The executive committee shall exercise the following
powers and functions:
(1) Ensure that the decision of the council are faithfully
carried out and implemented;
(2) Act on matters requiring immediate attention or action
by the council;
(3) Formulate policies, plans, and programs based on the
general principles laid down by the council; and
(4) Act on other matters that may be authorized by the
council.
Section 112. Sectoral or Functional Committees. - The local
development councils may form sectoral or functional committees
to assist them in the performance of their functions.
Section 113. Secretariat. - There is hereby constituted for each local
development council a secretariat which shall be responsible for
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providing technical support, documentation of proceedings,
preparation of reports and such other assistance as may be required
in the discharge of its functions. The local development council may
avail of the services of any non-governmental organization or
educational or research institution for this purpose.
The secretariats of the provincial, city, and municipal development
councils shall be headed by their respective planning and
development coordinators. The secretariat of the barangay
development council shall be headed by the barangay secretary who
shall be assisted by the city or municipal planning and development
coordinator concerned.
Section 114. Relation of Local Development Councils to the
Sanggunian and the Regional Development Council. -
(a) The policies, programs, and projects proposed by local
development councils shall be submitted to the sanggunian
concerned for appropriate action.
(b) The approved development plans of provinces, highly-
urbanized cities, and independent component cities shall be
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submitted to the regional development council, which shall be
integrated into the regional development plan for submission to
the National Economic and Development Authority, in
accordance with existing laws.
Section 115. Budget Information. - The Department of Budget and
Management shall furnish the various local development councils
information on financial resources and budgetary allocations
applicable to their respective jurisdictions to guide them in their
planning functions.
TITLE VII
LOCAL PEACE AND ORDER COUNCIL
Section 116. Organization. - There is hereby established in every
province, city and municipality a local peace and order council,
pursuant to Executive Order Numbered Three hundred nine (E.O.
No. 309), as amended, Series of 1988. The local peace and order
councils shall have the same composition and functions as those
prescribed by said executive order.
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TITLE VIII
AUTONOMOUS SPECIAL ECONOMIC ZONES
Section 117. Establishment of Autonomous Special Economic
Zones. - The establishment by law of autonomous special economic
zones in selected areas of the country shall be subject to
concurrence by the local government units included therein.
TITLE IX
OTHER PROVISIONS APPLICABLE TO LOCAL GOVERNMENT
UNITS
CHAPTER I
Settlement of Boundary Disputes
Section 118. Jurisdictional Responsibility for Settlement of
Boundary Dispute. - Boundary disputes between and among local
government units shall, as much as possible, be settled amicably.
To this end:
(a) Boundary disputes involving two (2) or more barangays in
the same city or municipality shall be referred for settlement to
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the sangguniang panlungsod or sangguniang bayan
concerned.
(b) Boundary disputes involving two (2) or more municipalities
within the same province shall be referred for settlement to the
sangguniang panlalawigan concerned.
(c) Boundary disputes involving municipalities or component
cities of different provinces shall be jointly referred for
settlement to the sanggunians of the province concerned.
(d) Boundary disputes involving a component city or
municipality on the one hand and a highly urbanized city on the
other, or two (2) or more highly urbanized cities, shall be jointly
referred for settlement to the respective sanggunians of the
parties.
(e) In the event the sanggunian fails to effect an amicable
settlement within sixty (60) days from the date the dispute was
referred thereto, it shall issue a certification to that effect.
Thereafter, the dispute shall be formally tried by the
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sanggunian concerned which shall decide the issue within sixty
(60) days from the date of the certification referred to above.
Section 119. Appeal. - Within the time and manner prescribed by the
Rules of Court, any party may elevate the decision of the
sanggunian concerned to the proper Regional Trial Court having
jurisdiction over the area in dispute. The Regional Trial Court shall
decide the appeal within one (1) year from the filing thereof. Pending
final resolution of the disputed area prior to the dispute shall be
maintained and continued for all legal purposes.
CHAPTER II
Local Initiative and Referendum
Section 120. Local Initiative Defined. - Local initiative is the legal
process whereby the registered voters of a local government unit
may directly propose, enact, or amend any ordinance.
Section 121. Who May Exercise. - The power of local initiative and
referendum may be exercised by all registered voters of the
provinces, cities, municipalities, and barangays.
Section 122. Procedure in Local Initiative. -

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(a) Not less than one thousand (1,000) registered voters in case
of provinces and cities, one hundred (100) in case of
municipalities, and fifty (50) in case of barangays, may file a
petition with the sanggunian concerned proposing the
adoption, enactment, repeal, or amendment of an ordinance.
(b) If no favorable action thereon is taken by the sanggunian
concerned within thirty (30) days from its presentation, the
proponents, through their duly authorized and registered
representatives, may invoke their power of initiative, giving
notice thereof to the sanggunian concerned.
(c) The proposition shall be numbered serially starting from
Roman numeral I. The COMELEC or its designated
representative shall extend assistance in the formulation of the
proposition.
(d) Two (2) or more propositions may be submitted in an
initiative.
(e) Proponents shall have ninety (90) days in case of provinces
and cities, sixty (60) days in case of municipalities, and thirty
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(30) days in case of barangays, from notice mentioned in
subsection (b) hereof to collect the required number of
signatures. (f) The petition shall be signed before the election
registrar. or his designated representatives, in the presence of
a representative of the proponent, and a representative of the
sanggunian concerned in a public place in the local
government unit, as the case may be. Stations for collecting
signatures may be established in as many places as may be
warranted.
(g) Upon the lapse of the period herein provided, the COMELEC,
through its office in the local government unit concerned, shall
certify as to whether or not the required number of signatures
has been obtained. Failure to obtain the required number
defeats the proposition.
(h) If the required number of signatures is obtained, the
COMELEC shall then set a date for the initiative during which
the proposition shall be submitted to the registered voters in
the local government unit concerned for their approval within
sixty (60) days from the date of certification by the COMELEC,

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as provided in subsection (g) hereof, in case of provinces and
cities, forty-five (45) days in case of municipalities, and thirty
(30) days in case of barangays. The initiative shall then be held
on the date set, after which the results thereof shall be certified
and proclaimed by the COMELEC.
Section 123. Effectivity of Local Propositions. - If the proposition is
approved by a majority of the votes cast, it shall take effect fifteen
(15) days after certification by the COMELEC as if affirmative action
thereon had been made by the sanggunian and local chief executive
concerned. If it fails to obtain said number of votes, the proposition
is considered defeated.
Section 124. Limitations on Local Initiative. -
(a) The power of local initiative shall not be exercised more than
once a year.
(b) Initiative shall extend only to subjects or matters which are
within the legal powers of the sanggunian to enact.
(c) If at any time before the initiative is held, the sanggunian
concerned adopts in toto the proposition presented and the

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local chief executive approves the same, the initiative shall be
cancelled. However, those against such action may, if they so
desire, apply for initiative in the manner herein provided.
Section 125. Limitations upon Sanggunians. - Any proposition or
ordinance approved through the system of initiative and referendum
as herein provided shall not be repealed, modified or amended by
the sanggunian concerned within six (6) months from the date of the
approval thereof, and may be amended, modified or repealed by the
sanggunian within three (3) years thereafter by a vote of three-
fourths (3/4) of all its members: Provided, That in case of barangays,
the period shall be eighteen (18) months after the approval thereof.
Section 126. Local Referendum Defined. - Local referendum is the
legal process whereby the registered voters of the local government
units may approve, amend or reject any ordinance enacted by the
sanggunian.
The local referendum shall be held under the control and direction
of the COMELEC within sixty (60) days in case of provinces and
cities, forty-five (45) days in case of municipalities and thirty (30)
days in case of barangays.

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The COMELEC shall certify and proclaim the results of the said
referendum.
Section 127. Authority of Courts. - Nothing in this Chapter shall
prevent or preclude the proper courts from declaring null and void
any proposition approved pursuant to this Chapter for violation of
the Constitution or want of capacity of the sanggunian concerned to
enact the said measure.
BOOK II
LOCAL TAXATION AND FISCAL MATTERS
TITLE I
LOCAL GOVERNMENT TAXATION
CHAPTER I
General Provisions
Section 128. Scope. - The provisions herein shall govern the
exercise by provinces, cities, municipalities, and barangays of their
taxing and other revenue-raising powers.
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Section 129. Power to Create Sources of Revenue. - Each local
government unit shall exercise its power to create its own sources
of revenue and to levy taxes, fees, and charges subject to the
provisions herein, consistent with the basic policy of local
autonomy. Such taxes, fees, and charges shall accrue exclusively to
the local government units.
Section 130. Fundamental Principles. - The following fundamental
principles shall govern the exercise of the taxing and other revenue-
raising powers of local government units:
(a) Taxation shall be uniform in each local government unit;
(b) Taxes, fees, charges and other impositions shall:
(1) be equitable and based as far as practicable on the
taxpayer's ability to pay;
(2) be levied and collected only for public purposes;
(3) not be unjust, excessive, oppressive, or confiscatory;
(4) not be contrary to law, public policy, national economic
policy, or in the restraint of trade;
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(c) The collection of local taxes, fees, charges and other
impositions shall in no case be let to any private person;
(d) The revenue collected pursuant to the provisions of this
Code shall inure solely to the benefit of, and be subject to the
disposition by, the local government unit levying the tax, fee,
charge or other imposition unless otherwise specifically
provided herein; and,
(e) Each local government unit shall, as far as practicable,
evolve a progressive system of taxation.
Section 131. Definition of Terms. - When used in this Title, the term:
(a) "Agricultural Product" includes the yield of the soil, such as
corn, rice, wheat, rye, hay. coconuts, sugarcane, tobacco, root
crops, vegetables, fruits, flowers, and their by-products;
ordinary salt; all kinds of fish; poultry; and livestock and animal
products, whether in their original form or not.
The phrase "whether in their original form or not" refers to the
transformation of said products by the farmer, fisherman,
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preserve or otherwise to prepare said products for market such
as freezing, drying, salting, smoking, or stripping for purposes
of preserving or otherwise preparing said products for market;
(b) "Amusement" is a pleasurable diversion and entertainment.
It is synonymous to relaxation, avocation, pastime, or fun;
(c) "Amusement Places" include theaters, cinemas, concert
halls, circuses and other places of amusement where one seeks
admission to entertain oneself by seeing or viewing the show or
performances;
(d) "Business" means trade or commercial activity regularly
engaged in as a means of livelihood or with a view to profit;
(e) "Banks and other financial institutions" include non-bank
financial intermediaries, lending investors, finance and
investment companies, pawnshops, money shops, insurance
companies, stock markets, stock brokers and dealers in
securities and foreign exchange, as defined under applicable
laws, or rules and regulations thereunder;
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(f) "Capital Investment" is the capital which a person employs
in any undertaking, or which he contributes to the capital of a
partnership, corporation, or any other juridical entity or
association in a particular taxing jurisdiction;
(g) "Charges" refers to pecuniary liability, as rents or fees
against persons or property;
(h) "Contractor" includes persons, natural or juridical, not
subject to professional tax under Section 139 of this Code,
whose activity consists essentially of the sale of all kinds of
services for a fee, regardless of whether or not the performance
of the service calls for the exercise or use of the physical or
mental faculties of such contractor or his employees.
As used in this Section, the term "contractor" shall include
general engineering, general building and specialty contractors
as defined under applicable laws; filling, demolition and
salvage works contractors; proprietors or operators of mine
drilling apparatus; proprietors or operators of dockyards;
persons engaged in the installation of water system, and gas or
electric light, heat, or power; proprietors or operators of

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smelting plants, engraving, plating, and plastic lamination
establishments; proprietors or operators of establishments for
repairing, repainting, upholstering, washing or greasing of
vehicles, heavy equipment, vulcanizing, recapping and battery
charging; proprietors or operators of furniture shops and
establishments for planing or surfacing and recutting of
lumber, and sawmills under contract to saw or cut logs
belonging to others; proprietors or operators of dry cleaning or
dyeing establishments, steam laundries, and laundries using
washing machines; proprietors or owners of shops for the
repair of any kind of mechanical and electrical devices,
instruments, apparatus, or furniture and shoe repairing by
machine or any mechanical contrivance; proprietors or
operators of establishments or lots for parking purposes;
proprietors or operators of tailor shops, dress shops, milliners
and hatters, beauty parlors, barbershops, massage clinics,
sauna, Turkish and Swedish baths, slenderizing and building
salons and similar establishments; photographic studios;
funeral parlors; proprietors or operators of hotels, motels, and
lodging houses; proprietors or operators of arrastre and

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stevedoring, warehousing, or forwarding establishments;
master plumbers, smiths, and house or sign painters; printers,
bookbinders, lithographers; publishers except those engaged
in the publication or printing of any newspaper, magazine,
review or bulletin which appears at regular intervals with fixed
prices for subscription and sale and which is not devoted
principally to the publication and advertisements; business
agents, private detective or watchman agencies, commercial
and immigration brokers, and cinematographic film owners,
lessors and distributors.
(i) "Corporation" includes partnerships, no matter how created
or organized, joint-stock companies, joint accounts (cuentas en
participacion), associations or insurance companies but does
not include general professional partnerships and a joint
venture or consortium formed for the purpose of undertaking
construction projects or engaging in petroleum, coal,
geothermal, and other energy operations pursuant to an
operating or consortium agreement under a service contract
with the government. General professional partnership are
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partnerships formed by persons for the sole purpose of
exercising their common profession, no part of the income of
which is derived from engaging in any trade or business.
The term "resident foreign" when applied to a corporation
means a foreign corporation not otherwise organized under the
laws of the Philippines but engaged in trade or business within
the Philippines;
(j) "Countryside and Barangay Business Enterprise" refers to
any business entity, association, or cooperative registered
under the provisions of Republic Act Numbered Sixty-eight
hundred ten (R.A. No. 6810), otherwise known as "Magna Carta
For Countryside And Barangay Business Enterprises
(Kalakalan 20)";
(k) "Dealer" means one whose business is to buy and sell
merchandise, goods, and chattels as a merchant. He stands
immediately between the producer or manufacturer and the
consumer and depends for his profit not upon the labor he
bestows upon his commodities but upon the skill and foresight
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(l) "Fee" means a charge fixed by law or ordinance for the
regulation or inspection of a business or activity;
(m) "Franchise" is a right or privilege, affected with public
interest which is conferred upon private persons or
corporations, under such terms and conditions as the
government and its political subdivisions may impose in the
interest of public welfare, security, and safety;
(n) "Gross Sales or Receipts" include the total amount of
money or its equivalent representing the contract price,
compensation or service fee, including the amount charged or
materials supplied with the services and deposits or advance
payments actually or constructively received during the taxable
quarter for the services performed or to be performed for
another person excluding discounts if determinable at the time
of sales, sales return, excise tax, and value-added tax (VAT);
(o) "Manufacturer" includes every person who, by physical or
chemical process, alters the exterior texture or form or inner
substance of any raw material or manufactured or partially
manufactured product in such manner as to have been put in

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its original condition, or who by any such process alters the
quality of any such raw material or manufactured or partially
manufactured products so as to reduce it to marketable shape
or prepare it for any of the use of industry, or who by any such
process combines any such raw material or manufactured or
partially manufactured products with other materials or
products of the same or of different kinds and in such manner
that the finished products of such process or manufacture can
be put to a special use or uses to which such raw material or
manufactured or partially manufactured products in their
original condition could not have been put, and who in addition
alters such raw material or manufactured or partially
manufactured products, or combines the same to produce such
finished products for the purpose of their sale or distribution to
others and not for his own use or consumption;
(p) "Marginal Farmer or Fisherman" refers to an individual
engaged in subsistence farming or fishing which shall be
limited to the sale, barter or exchange of agricultural or marine
products produced by himself and his immediate family;
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(q) "Motor Vehicle" means any vehicle propelled by any power
other than muscular power using the public roads, but
excluding road rollers, trolley cars, street-sweepers, sprinklers,
lawn mowers, bulldozers, graders, fork-lifts, amphibian trucks,
and cranes if not used on public roads, vehicles which run only
on rails or tracks, and tractors, trailers, and traction engines of
all kinds used exclusively for agricultural purposes;
(r) "Municipal Waters" includes not only streams, lakes, and
tidal waters within the municipality, not being the subject of
private ownership and not comprised within the national parks,
public forest, timber lands, forest reserves or fishery reserves,
but also marine waters included between two lines drawn
perpendicularly to the general coastline from points where the
boundary lines of the municipality or city touch the sea at low
tide and a third line parallel with the general coastline and
fifteen (15) kilometers from it. Where two (2) municipalities are
so situated on the opposite shores that there is less than fifteen
(15) kilometers of marine waters between them, the third line
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shall be equally distant from opposite shores of their respective
municipalities;
(s) "Operator" includes the owner, manager, administrator, or
any other person who operates or is responsible for the
operation of a business establishment or undertaking;
(t) "Peddler" means any person who, either for himself or on
commission, travels from place to place and sells his goods or
offers to sell and deliver the same. Whether a peddler is a
wholesale peddler or a retail peddler of a particular commodity
shall be determined from the definition of wholesale dealer or
retail dealer as provided in this Title;
(u) "Persons" means every natural or juridical being,
susceptible of rights and obligations or of being the subject of
legal relations;
(v) "Residents" refer to natural persons who have their habitual
residence in the province, city, or municipality where they
exercise their civil rights and fulfill their civil obligations, and to
juridical persons for which the law or any other provisions
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creating or recognizing them fixes their residence in a
particular province, city, or municipality. In the absence of such
law, juridical persons are residents of the province, city, or
municipality where they have their legal residence or principal
place of business or where they conduct their principal
business or occupation;
(w) "Retail" means a sale where the purchaser buys the
commodity for his own consumption, irrespective of the
quantity of the commodity sold;
(x) "Vessel" includes every type of boat, craft, or other artificial
contrivance used, or capable of being used, as a means of
transportation on water;
(y) "Wharfage" means a fee assessed against the cargo of a
vessel engaged in foreign or domestic trade based on quantity,
weight, or measure received and/or discharged by vessel; and
(z) "Wholesale" means a sale where the purchaser buys or
imports the commodities for resale to persons other than the
end user regardless of the quantity of the transaction.
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Section 132. Local Taxing Authority. - The power to impose a tax,
fee, or charge or to generate revenue under this Code shall be
exercised by the sanggunian of the local government unit
concerned through an appropriate ordinance.
Section 133. Common Limitations on the Taxing Powers of Local
Government Units. - Unless otherwise provided herein, the exercise
of the taxing powers of provinces, cities, municipalities, and
barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial
institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies and other
acquisitions mortis causa, except as otherwise provided herein;
(d) Customs duties, registration fees of vessel and wharfage on
wharves, tonnage dues, and all other kinds of customs fees,
charges and dues except wharfage on wharves constructed and
maintained by the local government unit concerned;
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(e) Taxes, fees, and charges and other impositions upon goods
carried into or out of, or passing through, the territorial
jurisdictions of local government units in the guise of charges
for wharfage, tolls for bridges or otherwise, or other taxes, fees,
or charges in any form whatsoever upon such goods or
merchandise;
(f) Taxes, fees or charges on agricultural and aquatic products
when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified to by the Board of
Investments as pioneer or non-pioneer for a period of six (6)
and four (4) years, respectively from the date of registration;
(h) Excise taxes on articles enumerated under the national
Internal Revenue Code, as amended, and taxes, fees or charges
on petroleum products;
(i) Percentage or value-added tax (VAT) on sales, barters or
exchanges or similar transactions on goods or services except
as otherwise provided herein;
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(j) Taxes on the gross receipts of transportation contractors
and persons engaged in the transportation of passengers or
freight by hire and common carriers by air, land or water,
except as provided in this Code;
(k) Taxes on premiums paid by way or reinsurance or
retrocession;
(l) Taxes, fees or charges for the registration of motor vehicles
and for the issuance of all kinds of licenses or permits for the
driving thereof, except tricycles;
(m) Taxes, fees, or other charges on Philippine products
actually exported, except as otherwise provided herein;
(n) Taxes, fees, or charges, on Countryside and Barangay
Business Enterprises and cooperatives duly registered under
R.A. No. 6810 and Republic Act Numbered Sixty-nine hundred
thirty-eight (R.A. No. 6938) otherwise known as the
"Cooperative Code of the Philippines" respectively; and
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(o) Taxes, fees or charges of any kind on the National
Government, its agencies and instrumentalities, and local
government units.
CHAPTER II
Specific Provisions on the Taxing and Other Revenue-Raising
Powers of Local Government Units
ARTICLE I
Provinces
Section 134. Scope of Taxing Powers. - Except as otherwise
provided in this Code, the province may levy only the taxes, fees,
and charges as provided in this Article.
Section 135. Tax on Transfer of Real Property Ownership.
(a) The province may impose a tax on the sale , donation,
barter, or on any other mode of transferring ownership or title
of real property at the rate of not more than fifty percent (50%)
of the one percent (1%) of the total consideration involved in
the acquisition of the property or of the fair market value in
case the monetary consideration involved in the transfer is not

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substantial, whichever is higher. The sale, transfer or other
disposition of real property pursuant to R.A. No. 6657 shall be
exempt from this tax.
(b) For this purpose, the Register of Deeds of the province
concerned shall, before registering any deed, require the
presentation of the evidence of payment of this tax. The
provincial assessor shall likewise make the same requirement
before cancelling an old tax declaration and issuing a new one
in place thereof, Notaries public shall furnish the provincial
treasurer with a copy of any deed transferring ownership or title
to any real property within thirty (30) days from the date of
notarization.
It shall be the duty of the seller, donor, transferor, executor or
administrator to pay the tax herein imposed within sixty (60) days
from the date of the execution of the deed or from the date of the
decedent's death.
Section 136. Tax on Business of Printing and Publication. - The
province may impose a tax on the business of persons engaged in
the printing and/or publication of books, cards, posters, leaflets,

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handbills, certificates, receipts, pamphlets, and others of similar
nature, at a rate not exceeding fifty percent (50%) of one percent
(1%) of the gross annual receipts for the preceding calendar year.
In the case of a newly started business, the tax shall not exceed
one-twentieth (1/20) of one percent (1%) of the capital investment. In
the succeeding calendar year, regardless of when the business
started to operate, the tax shall be based on the gross receipts for
the preceding calendar year, or any fraction thereof, as provided
herein.
The receipts from the printing and/or publishing of books or other
reading materials prescribed by the Department of Education,
Culture and Sports as school texts or references shall be exempt
from the tax herein imposed.
Section 137. Franchise Tax. - Notwithstanding any exemption
granted by any law or other special law, the province may impose a
tax on businesses enjoying a franchise, at the rate not exceeding
fifty percent (50%) of one percent (1%) of the gross annual receipts
for the preceding calendar year based on the incoming receipt, or
realized, within its territorial jurisdiction.

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In the case of a newly started business, the tax shall not exceed
one-twentieth (1/20) of one percent (1%) of the capital investment. In
the succeeding calendar year, regardless of when the business
started to operate, the tax shall be based on the gross receipts for
the preceding calendar year, or any fraction thereon, as provided
herein.
Section 138. Tax on Sand, Gravel and Other Quarry Resources. - The
province 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 or from the beds of seas, lakes, rivers, streams, creeks,
and other public waters within its territorial jurisdiction.
The permit to extract sand, gravel and other quarry resources shall
be issued exclusively by the provincial governor, pursuant to the
ordinance of the sangguniang panlalawigan.
The proceeds of the tax on sand, gravel and other quarry resources
shall be distributed as follows:
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(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 139. Professional Tax. -
(a) The province may levy an annual professional tax on each
person engaged in the exercise or practice of his profession
requiring government examination at such amount and
reasonable classification as the sangguniang panlalawigan may
determine but shall in no case exceed Three hundred pesos
(P300.00).
(b) Every person legally authorized to practice his profession
shall pay the professional tax to the province where he
practices his profession or where he maintains his principal
office in case he practices his profession in several places:
Provided, however, That such person who has paid the
corresponding professional tax shall be entitled to practice his

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profession in any part of the Philippines without being
subjected to any other national or local tax, license, or fee for
the practice of such profession.
(c) Any individual or corporation employing a person subject to
professional tax shall require payment by that person of the tax
on his profession before employment and annually thereafter.
(d) The professional tax shall be payable annually, on or before
the thirty-first (31st) day of January. Any person first beginning
to practice a profession after the month of January must,
however, pay the full tax before engaging therein. A line of
profession does not become exempt even if conducted with
some other profession for which the tax has been paid.
Professionals exclusively employed in the government shall be
exempt from the payment of this tax.
(e) Any person subject to the professional tax shall write in
deeds, receipts, prescriptions, reports, books of account, plans
and designs, surveys and maps, as the case may be, the
number of the official receipt issued to him.
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Section 140. Amusement Tax. -
(a) The province may levy an amusement tax to be collected
from the proprietors, lessees, or operators of theaters, cinemas,
concert halls, circuses, boxing stadia, and other places of
amusement at a rate of not more than thirty percent (30%) of the
gross receipts from admission fees.
(b) In the case of theaters or cinemas, the tax shall first be
deducted and withheld by their proprietors, lessees, or
operators and paid to the provincial treasurer before the gross
receipts are divided between said proprietors, lessees, or
operators and the distributors of the cinematographic films.
(c) The holding of operas, concerts, dramas, recitals, painting
and art exhibitions, flower shows, musical programs, literary
and oratorical presentations, except pop, rock, or similar
concerts shall be exempt from the payment of the tax hereon
imposed.
(d) The sangguniang panlalawigan may prescribe the time,
manner, terms and conditions for the payment of tax. In case of
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fraud or failure to pay the tax, the sangguniang panlalawigan
may impose such surcharges, interest and penalties as it may
deem appropriate.
(e) The proceeds from the amusement tax shall be shared
equally by the province and the municipality where such
amusement places are located.
Section 141. Annual Fixed Tax For Every Delivery Truck or Van of
Manufacturers or Producers, Wholesalers of, Dealers, or Retailers
in, Certain Products. -
(a) The province may levy an annual fixed tax for every truck,
van or any vehicle used by manufacturers, producers,
wholesalers, dealers or retailers in the delivery or distribution
of distilled spirits, fermented liquors, soft drinks, cigars and
cigarettes, and other products as may be determined by the
sangguniang panlalawigan, to sales outlets, or consumers,
whether directly or indirectly, within the province in an amount
not exceeding Five hundred pesos (P500.00).
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(b) The manufacturers, producers, wholesalers, dealers and
retailers referred to in the immediately foregoing paragraph
shall be exempt from the tax on peddlers prescribed elsewhere
in this Code.
ARTICLE II
Municipalities
provided in this Code, municipalities may levy taxes, fees, and
charges not otherwise levied by provinces.
Section 143. Tax on Business. - The municipality may impose taxes
on the following businesses:
(a) On manufacturers, assemblers, repackers, processors,
brewers, distillers, rectifiers, and compounders of liquors,
distilled spirits, and wines or manufacturers of any article of
commerce of whatever kind or nature, in accordance with the
following schedule:
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With gross sales or
Amount of
receipts for the
Tax Per
preceding calendar year
Annum
in the amount of:
Less than 10,000.00 165.00
P 10,000.00 or more but 220.00
less than 15,000.00
15,000.00 or more but 202.00
less than 20,000.00
20,000.00 or more but 440.00
less than 30,000.00
30,000.00 or more but 660.00
less than 40,000.00
40,000.00 or more but 825.00
less than 50,000.00
50,000.00 or more but 1,320.00
less than 75,000.00
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75,000.00 or more but 1,650.00
less than 100,000.00
100,000.00 or more but 2,200.00
150,000.00 or more but 2,750.00
200,000.00 or more but 3,850.00
300,000.00 or more but 5,500.00
500,000.00 or more but 8,000.00
750,000.00 or more but 10,000.00
less than 1,000,000.00
1,000,000.00 or more but 13,750.00
less than 2,000,000.00
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2,000,000.00 or more but 16,500.00
less than 3,000,000.00
3,000,000.00 or more but 19,000.00
less than 4,000,000.00
4,000,000.00 or more but 23,100.00
less than 5,000,000.00
5,000,000.00 or more but 24,375.00
less than 6,500,000.00
6,000,000.00 or more at a rate not
exceeding thirty-seven and a half
percent (37%) of one percent (1%)
(b) On wholesalers, distributors, or dealers in any article of
commerce of whatever kind or nature in accordance with the
following schedule:
With gross sales or Amount of
receipts for the Tax Per
Annum
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in the amount of:
Less than 1,000.00 18.00
P 1,000.00 or more but 33.00
less than 2,000.00
2,000.00 or more but 50.00
less than 3,000.00
3,000.00 or more but 72.00
less than 4,000.00
4,000.00 or more but 100.00
less than 5,000.00
5,000.00 or more but 121.00
less than 6,000.00
6,000.00 or more but 143.00
less than 7,000.00
7,000.00 or more but 165.00
less than 8,000.00
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8,000.00 or more but 187.00
less than 10,000.00
10,000.00 or more but 220.00
less than 15,000.00
15,000.00 or more but 275.00
less than 20,000.00
20,000.00 or more but 330.00
less than 30,000.00
30,000.00 or more but 440.00
less than 40,000.00
40,000.00 or more but 660.00
less than 50,000.00
50,000.00 or more but 990.00
less than 75,000.00
75,000.00 or more but 1,320.00
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100,000.00 or more but 1,870.00
150,000.00 or more but 2,420.00
200,000.00 or more but 3,300.00
300,000.00 or more but 4,400.00
500,000.00 or more but 6,600.00
750,000.00 or more but 8,800.00
less than 1,000,000.00
1,000,000.00 or more but 10,000.00
less than 2,000,000.00
exceeding fifty percent (50%) of one
percent (1%).
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(c) On exporters, and on manufacturers , millers, producers,
wholesalers, distributors, dealers or retailers of essential
commodities enumerated hereunder at a rate not exceeding
one-half () of the rates prescribed under subsection (a), (b)
and (d) of this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy products, locally
manufactured, processed or preserved food, sugar, salt
and other agricultural, marine, and fresh water products,
whether in their original state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicine;
(5) Agricultural implements. equipment and post-harvest
facilities, fertilizers, pesticides, insecticides, herbicides
and other farm inputs;
(6) Poultry feeds and other animal feeds;
(7) School supplies; and
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(8) Cement.
(d) On retailers.
With gross sales or Rate of
receipts for the preceding Tax Per
calendar year in the Annum
amount of:
P400,000.00 or less 2%
more than P400,000.00 1%
Provided, however, That barangays shall have the exclusive
power to levy taxes, as provided under Section 152 hereof, on
gross sales or receipts of the preceding calendar year of Fifty
thousand pesos (P50,000.00) or less, in the case of cities, and
Thirty thousand pesos (P30,000.00) or less, in the case of
municipalities.
(e) On contractors and other independent contractors, in
accordance with the following schedule:
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With gross sales or
Amount of
receipts for the
Tax Per
Annum
in the amount of:
Less than 5,000.00 27.50
P 5,000.00 or more but 61.60
less than P 10,000.00
10,000.00 or more but 104.50
less than 15,000.00
15,000.00 or more but 165.00
less than 20,000.00
20,000.00 or more but 275.00
less than 30,000.00
30,000.00 or more but 385.00
less than 40,000.00
40,000.00 or more but 550.00
less than 50,000.00
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50,000.00 or more but 880.00
less than 75,000.00
75,000.00 or more but 1,320.00
100,000.00 or more but 1,980.00
150,000.00 or more but 2,640.00
200,000.00 or more but 3,630.00
250,000.00 or more but 4,620.00
300,000.00 or more but 6,160.00
400,000.00 or more but 8,250.00
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500,000.00 or more but 9,250.00
750,000.00 or more but 10,250.00
less than 1,000,000.00
1,000,000.00 or more but 11,500.00
less than 2,000,000.00
exceeding fifty percent (50%) of one
percent (1%)
(f) On banks and other financial institutions, at a rate not
exceeding fifty percent (50%) of one percent (1%) on the gross
receipts of the preceding calendar year derived from interest,
commissions and discounts from lending activities, income
from financial leasing, dividends, rentals on property and profit
from exchange or sale of property, insurance premium.
(g) On peddlers engaged in the sale of any merchandise or
article of commerce, at a rate not exceeding Fifty pesos
(P50.00) per peddler annually.
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(h) On any business, not otherwise specified in the preceding
paragraphs, which the sanggunian concerned may deem proper
to tax: Provided, That on any business subject to the excise,
value-added or percentage tax under the National Internal
Revenue Code, as amended, the rate of tax shall not exceed two
percent (2%) of gross sales or receipts of the preceding
calendar year.
The sanggunian concerned may prescribe a schedule of graduated
tax rates but in no case to exceed the rates prescribed herein.
Section 144. Rates of Tax within the Metropolitan Manila Area. - The
municipalities within the Metropolitan Manila Area may levy taxes at
rates which shall not exceed by fifty percent (50%) the maximum
rates prescribed in the preceding Section.
Section 145. Retirement of Business. - A business subject to tax
pursuant to the preceding sections shall, upon termination thereof,
submit a sworn statement of its gross sales or receipts for the
current year. If the tax paid during the year be less than the tax due
on said gross sales or receipts of the current year, the difference
shall be paid before the business is considered officially retired.

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Section 146. Payment of Business Taxes. -
(a) The taxes imposed under Section 143 shall be payable for
every separate or distinct establishment or place where
business subject to the tax is conducted and one line of
business does not become exempt by being conducted with
some other business for which such tax has been paid. The tax
on a business must be paid by the person conducting the
same.
(b) In cases where a person conducts or operates two (2) or
more of the businesses mentioned in Section 143 of this Code
which are subject to the same rate of tax, the tax shall be
computed on the combined total gross sales or receipts of the
said two (2) or more related businesses.
(c) In cases where a person conducts or operates two (2) or
more businesses mentioned in Section 143 of this Code which
are subject to different rates of tax, the gross sales or receipts
of each business shall be separately reported for the purpose
of computing the tax due from each business.
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Section 147. Fees and Charges. - The municipality may impose and
collect such reasonable fees and charges on business and
occupation and, except as reserved to the province in Section 139 of
this Code, on the practice of any profession or calling,
commensurate with the cost of regulation, inspection and licensing
before any person may engage in such business or occupation, or
practice such profession or calling.
Section 148. Fees for Sealing and Licensing of Weights and
Measures. -
(a) The municipality may levy fees for the sealing and licensing
of weights and measures at such reasonable rates as shall be
prescribed by the sangguniang bayan.
(b) The sangguniang bayan shall prescribe the necessary
regulations for the use of such weights and measures, subject
to such guidelines as shall be prescribed by the Department of
Science and Technology. The sanggunian concerned shall, by
appropriate ordinance, penalize fraudulent practices and
unlawful possession or use of instruments of weights and
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accordance with the provisions of this Code. Provided,
however, That the sanggunian concerned may authorize the
municipal treasurer to settle an offense not involving the
commission of fraud before a case therefor is filed in court,
upon payment of a compromise penalty of not less than Two
hundred pesos (P200.00).
Section 149. Fishery Rentals, Fees and Charges. -
(a) Municipalities shall have the exclusive authority to grant
fishery privileges in the municipal waters and impose rentals,
fees or charges therefor in accordance with the provisions of
this Section.
(b) The sangguniang bayan may:
(1) Grant fishery privileges to erect fish corrals, oysters,
mussels or other aquatic beds or bangus fry areas, within
a definite zone of the municipal waters, as determined by
it: Provided, however, That duly registered organizations
and cooperatives of marginal fishermen shall have the
preferential right to such fishery privileges: Provided,
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further, That the sangguniang bayan may require a public
bidding in conformity with and pursuant to an ordinance
for the grant of such privileges: Provided, finally, That in
the absence of such organizations and cooperatives or
their failure to exercise their preferential right, other
parties may participate in the public bidding in conformity
with the above cited procedure.
(2) Grant the privilege to gather, take or catch bangus fry,
prawn fry or kawag-kawag or fry of other species and fish
from the municipal waters by nets, traps or other fishing
gears to marginal fishermen free of any rental, fee, charge
or any other imposition whatsoever.
(3) Issue licenses for the operation of fishing vessels of
three (3) tons or less for which purpose the sangguniang
bayan shall promulgate rules and regulations regarding
the issuances of such licenses to qualified applicants
under existing laws.
Provided, however, That the sanggunian concerned shall,
by appropriate ordinance, penalize the use of explosives,

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noxious or poisonous substances, electricity, muro-ami,
and other deleterious methods of fishing and prescribe a
criminal penalty therefor in accordance with the provisions
of this Code: Provided, finally, That the sanggunian
concerned shall have the authority to prosecute any
violation of the provisions of applicable fishery laws.
Section 150. Situs of the Tax. -
(a) For purposes of collection of the taxes under Section 143 of
this Code, manufacturers, assemblers, repackers, brewers,
distillers, rectifiers and compounders of liquor, distilled spirits
and wines, millers, producers, exporters, wholesalers,
distributors, dealers, contractors, banks and other financial
institutions, and other businesses, maintaining or operating
branch or sales outlet elsewhere shall record the sale in the
branch or sales outlet making the sale or transaction, and the
tax thereon shall accrue and shall be paid to the municipality
where such branch or sales outlet is located. In cases where
there is no such branch or sales outlet in the city or
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shall be duly recorded in the principal office and the taxes due
shall accrue and shall be paid to such city or municipality.
(b) The following sales allocation shall apply to manufacturers,
assemblers, contractors, producers, and exporters with
factories, project offices, plants, and plantations in the pursuit
of their business:
(1) Thirty percent (30%) of all sales recorded in the
principal office shall be taxable by the city or municipality
where the principal office is located; and
(2) Seventy percent (70%) of all sales recorded in the
principal office shall be taxable by the city or municipality
where the factory, project office, plant, or plantation is
located.
(c) In case of a plantation located at a place other than the place
where the factory is located, said seventy percent (70%)
mentioned in subparagraph (b) of subsection (2) above shall be
divided as follows:
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(1) Sixty percent (60%) to the city or municipality where the
factory is located; and
(2) Forty percent (40%) to the city or municipality where the
plantation is located.
(d) In cases where a manufacturer, assembler, producer,
exporter or contractor has two (2) or more factories, project
offices, plants, or plantations located in different localities, the
seventy percent (70%) sales allocation mentioned in
subparagraph (b) of subsection (2) above shall be prorated
among the localities where the factories, project offices, plants,
and plantations are located in proportion to their respective
volumes of production during the period for which the tax is
due.
(e) The foregoing sales allocation shall be applied irrespective
of whether or not sales are made in the locality where the
factory, project office, plant, or plantation is located.
ARTICLE III
Cities
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provided in this Code, the city, may levy the taxes, fees, and charges
which the province or municipality may impose: Provided, however,
That the taxes, fees and charges levied and collected by highly
urbanized and independent component cities shall accrue to them
and distributed in accordance with the provisions of this Code.
The rates of taxes that the city may levy may exceed the maximum
rates allowed for the province or municipality by not more than fifty
percent (50%) except the rates of professional and amusement
taxes.
ARTICLE IV
Barangays
Section 152. Scope of Taxing Powers. - The barangays may levy
taxes, fees, and charges, as provided in this Article, which shall
exclusively accrue to them:
(a) Taxes - On stores or retailers with fixed business
establishments with gross sales of receipts of the preceding
calendar year of Fifty thousand pesos (P50,000.00) or less, in
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the case of cities and Thirty thousand pesos (P30,000.00) or
less, in the case of municipalities, at a rate not exceeding one
percent (1%) on such gross sales or receipts.
(b) Service Fees or Charges. - Barangays may collect
reasonable fees or charges for services rendered in connection
with the regulations or the use of barangay-owned properties or
service facilities such as palay, copra, or tobacco dryers.
(c) Barangay Clearance. - No city or municipality may issue any
license or permit for any business or activity unless a clearance
is first obtained from the barangay where such business or
activity is located or conducted. For such clearance, the
sangguniang barangay may impose a reasonable fee. The
application for clearance shall be acted upon within seven (7)
working days from the filing thereof. In the event that the
clearance is not issued within the said period, the city or
municipality may issue the said license or permit.
(d) Other fees and Charges. - The barangay may levy
reasonable fees and charges:
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(1) On commercial breeding of fighting cocks, cockfights
and cockpits;
(2) On places of recreation which charge admission fees;
and
(3) On billboards, signboards, neon signs, and outdoor
advertisements.
ARTICLE V
Common Revenue-Raising Powers
Section 153. Service Fees and Charges. - Local government units
may impose and collect such reasonable fees and charges for
services rendered.
Section 154. Public Utility Charges. - Local government units may fix
the rates for the operation of public utilities owned, operated and
maintained by them within their jurisdiction.
Section 155. Toll Fees or Charges. - The sanggunian concerned may
prescribe the terms and conditions and fix the rates for the
imposition of toll fees or charges for the use of any public road, pier,
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or wharf, waterway, bridge, ferry or telecommunication system
funded and constructed by the local government unit concerned:
Provided, That no such toll fees or charges shall be collected from
officers and enlisted men of the Armed Forces of the Philippines
and members of the Philippine National Police on mission, post
office personnel delivering mail, physically-handicapped, and
disabled citizens who are sixty-five (65) years or older.
When public safety and welfare so requires, the sanggunian
concerned may discontinue the collection of the tolls, and thereafter
the said facility shall be free and open for public use.
ARTICLE VI
Community Tax
Section 156. Community Tax. - Cities or municipalities may levy a
community tax in accordance with the provisions of this Article.
Section 157. Individuals Liable to Community Tax. - Every inhabitant
of the Philippines eighteen (18) years of age or over who has been
regularly employed on a wage or salary basis for at least thirty (30)
consecutive working days during any calendar year, or who is
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engaged in business or occupation, or who owns real property with
an aggregate assessed value of One thousand pesos (P1,000.00) or
more, or who is required by law to file an income tax return shall pay
an annual additional tax of Five pesos (P5.00) and an annual
additional tax of One peso (P1.00) for every One thousand pesos
(P1,000.00) of income regardless of whether from business, exercise
of profession or from property which in no case shall exceed Five
thousand pesos (P5,000.00).
In the case of husband and wife, the additional tax herein imposed
shall be based upon the total property owned by them and the total
gross receipts or earnings derived by them.
Section 158. Juridical Persons Liable to Community Tax. - Every
corporation no matter how created or organized, whether domestic
or resident foreign, engaged in or doing business in the Philippines
shall pay an annual community tax of Five hundred pesos (P500.00)
and an annual additional tax, which, in no case, shall exceed Ten
thousand pesos (P10,000.00) in accordance with the following
schedule:
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(1) For every Five thousand pesos (P5,000.00) worth of real
property in the Philippines owned by it during the preceding
year based on the valuation used for the payment of real
property tax under existing laws, found in the assessment rolls
of the city or municipality where the real property is situated -
Two pesos (P2.00); and
(2) For every Five thousand pesos (P5,000.00) of gross receipts
or earnings derived by it from its business in the Philippines
during the preceding year - Two pesos (P2.00).
The dividends received by a corporation from another
corporation however shall, for the purpose of the additional tax,
be considered as part of the gross receipts or earnings of said
corporation.
Section 159. Exemptions. - The following are exempt from the
community tax:
(1) Diplomatic and consular representatives; and
(2) Transient visitors when their stay in the Philippines does not
exceed three (3) months.

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Section 160. Place of Payment. - The community tax shall be paid in
the place of residence of the individual, or in the place where the
principal office of the juridical entity is located.
Section 161. Time for Payment; Penalties for Delinquency. -
(a) The community tax shall accrue on the first (1st) day of
January of each year which shall be paid not later than the last
day of February of each year. If a person reaches the age of
eighteen (18) years or otherwise loses the benefit of exemption
on or before the last day of June, he shall be liable for the
community tax on the day he reaches such age or upon the day
the exemption ends. However, if a person reaches the age of
eighteen (18) years or loses the benefit of exemption on or
before the last day of March, he shall have twenty (20) days to
pay the community tax without becoming delinquent.
Persons who come to reside in the Philippines or reach the age
of eighteen (18) years on or after the first (1st) day of July of
any year, or who cease to belong to an exempt class or after the
same date, shall not be subject to the community tax for that
year.
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(b) Corporations established and organized on or before the
last day of June shall be liable for the community tax for that
year. But corporations established and organized on or before
the last day of March shall have twenty (20) days within which
to pay the community tax without becoming delinquent.
Corporations established and organized on or after the first day
of July shall not be subject to the community tax for that year.
If the tax is not paid within the time prescribed above, there shall be
added to the unpaid amount an interest of twenty-four percent (24%)
per annum from the due date until it is paid.
Section 162. Community Tax Certificate. - A community tax
certificate shall be issued to every person or corporation upon
payment of the community tax. A community tax certificate may also
be issued to any person or corporation not subject to the
community tax upon payment of One peso (P1.00).
Section 163. Presentation of Community Tax Certificate On Certain
Occasions. -
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(a) When an individual subject to the community tax
acknowledges any document before a notary public, takes the
oath of office upon election or appointment to any position in
the government service; receives any license, certificate. or
permit from any public authority; pays any tax or free; receives
any money from any public fund; transacts other official
business; or receives any salary or wage from any person or
corporation with whom such transaction is made or business
done or from whom any salary or wage is received to require
such individual to exhibit the community tax certificate.
The presentation of community tax certificate shall not be
required in connection with the registration of a voter.
(b) When, through its authorized officers, any corporation
subject to the community tax receives any license, certificate,
or permit from any public authority, pays any tax or fee,
receives money from public funds, or transacts other official
business, it shall be the duty of the public official with whom
such transaction is made or business done, to require such
corporation to exhibit the community tax certificate.

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(c) The community tax certificate required in the two preceding
paragraphs shall be the one issued for the current year, except
for the period from January until the fifteenth (15th) of April
each year, in which case, the certificate issued for the
preceding year shall suffice.
Section 164. Printing of Community Tax Certificates and Distribution
of Proceeds. -
(a) The Bureau of Internal Revenue shall cause the printing of
community tax certificates 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 municipal
treasurer concerned shall remit to the national treasurer the
said share of the national government in the proceeds of the tax
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(b) The city or municipal 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.
(c) The proceeds of the 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:
(1) Fifty percent (50%) shall accrue to the general fund of
the city or municipality concerned; and
(2) Fifty percent (50%) shall accrue to the barangay where
the tax is collected.
CHAPTER III
Collection of Taxes
Section 165. Tax Period and Manner of Payment. - Unless otherwise
provided in this Code, the tax period of all local taxes, fees and
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charges shall be the calendar year. Such taxes, fees and charges
may be paid in quarterly installments.
Section 166. Accrual of Tax. - Unless otherwise provided in this
Code, all local taxes, fees, and charges shall accrue on the first (1st)
day of January of each year. However, new taxes, fees or charges,
or changes in the rates thereof, shall accrue on the first (1st) day of
the quarter next following the effectivity of the ordinance imposing
such new levies or rates.
Section 167. Time of Payment. - Unless otherwise provided in this
Code, all local taxes, fees, and charges shall be paid within the first
twenty (20) days of January or of each subsequent quarter, as the
case may be. The sanggunian concerned may, for a justifiable
reason or cause, extend the time for payment of such taxes, fees, or
charges without surcharges or penalties, but only for a period not
exceeding six (6) months.
Section 168. Surcharges and Penalties on Unpaid Taxes, Fees, or
Charges. - The sanggunian may impose a surcharge not exceeding
twenty-five (25%) of the amount of taxes, fees or charges not paid
on time and an interest at the rate not exceeding two percent (2%)
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per month of the unpaid taxes, fees or charges including
surcharges, until such amount is fully paid but in no case shall the
total thirty-six (36%) months.
Section 169. Interests on Other Unpaid Revenues. - Where the
amount of any other revenue due a local government unit, except
voluntary contributions or donations, is not paid on the date fixed in
the ordinance, or in the contract, expressed or implied, or upon the
occurrence of the event which has given rise to its collection, there
shall be collected as part of that amount an interest thereon at the
rate not exceeding two percent (2%) per month from the date it is
due until it is paid, but in no case shall the total interest on the
unpaid amount or a portion thereof exceed thirty-six (36) months.
Section 170. Collection of Local Revenue by Treasurer. - All local
taxes, fees, and charges shall be collected by the provincial, city,
municipal, or barangay treasurer, or their duly authorized deputies.
The provincial, city or municipal treasurer may designate the
barangay treasurer as his deputy to collect local taxes, fees, or
charges. In case a bond is required for the purpose, the provincial,
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addition to the premiums of bond that may be required under this
Code.
Section 171. Examination of Books of Accounts and Pertinent
Records of Businessmen by Local Treasurer. - The provincial, city,
municipal or barangay treasurer may, by himself or through any of
his deputies duly authorized in writing, examine the books,
accounts, and other pertinent records of any person, partnership,
corporation, or association subject to local taxes, fees and charges
in order to ascertain. assess, and collect the correct amount of the
tax, fee, or charge. Such examination shall be made during regular
business hours, only once for every tax period, and shall be certified
to by the examining official. Such certificate shall be made of record
in the books of accounts of the taxpayer examined.
In case the examination herein authorized is made by a duly
authorized deputy of the local treasurer, the written authority of the
deputy concerned shall specifically state the name, address, and
business of the taxpayer whose books, accounts, and pertinent
records are to be examined, the date and place of such examination
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For this purpose, the records of the revenue district office of the
Bureau of Internal Revenue shall be made available to the local
treasurer, his deputy or duly authorized representative.
CHAPTER IV
Civil Remedies for Collection of Revenues
Section 172. Application of Chapter. - The provisions of this Chapter
and the remedies provided hereon may be availed of for the
collection of any delinquent local tax, fee, charge, or other revenue.
Section 173. Local Government's Lien. - Local taxes, fees, charges
and other revenues constitute a lien, superior to all liens, charges or
encumbrances in favor of any person, enforceable by appropriate
administrative or judicial action, not only upon any property or
rights therein which may be subject to the lien but also upon
property used in business, occupation, practice of profession or
calling, or exercise of privilege with respect to which the lien is
imposed. The lien may only be extinguished upon full payment of
the delinquent local taxes fees and charges including related
surcharges and interest.
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Section 174. Civil Remedies. - The civil remedies for the collection of
local taxes, fees, or charges, and related surcharges and interest
resulting from delinquency shall be:
(a) By administrative action thru distraint of goods, chattels, or
effects, and other personal property of whatever character,
including stocks and other securities, debts, credits, bank
accounts, and interest in and rights to personal property, and
by levy upon real property and interest in or rights to real
property;
(b) By judicial action.
Either of these remedies or all may be pursued concurrently or
simultaneously at the discretion of the local government unit
concerned.
Section 175. Distraint of Personal Property. - The remedy by
distraint shall proceed as follows:
(a) Seizure - Upon failure of the person owing any local tax, fee,
or charge to pay the same at the time required, the local
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confiscate any personal property belonging to that person or
any personal property subject to the lien in sufficient quantity
to satisfy the tax, fee, or charge in question, together with any
increment thereto incident to delinquency and the expenses of
seizure. In such case, the local treasurer or his deputy shall
issue a duly authenticated certificate based upon the records of
his office showing the fact of delinquency and the amounts of
the tax, fee, or charge and penalty due. Such certificate shall
serve as sufficient warrant for the distraint of personal property
aforementioned, subject to the taxpayer's right to claim
exemption under the provisions of existing laws. Distrained
personal property shall be sold at public auction in the manner
hereon provided for.
(b) Accounting of distrained goods. - The officer executing the
distraint shall make or cause to be made an account of the
goods, chattels or effects distrained, a copy of which signed by
himself shall be left either with the owner or person from whose
possession the goods, chattels or effects are taken, or at the
dwelling or place or business of that person and with someone
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of suitable age and discretion, to which list shall be added a
statement of the sum demanded and a note of the time and
place of sale.
(c) Publication - The officer shall forthwith cause a notification
to be exhibited in not less than three (3) public and
conspicuous places in the territory of the local government unit
where the distraint is made, specifying the time and place of
sale, and the articles distrained. The time of sale shall not be
less than twenty (20) days after the notice to the owner or
possessor of the property as above specified and the
publication or posting of the notice. One place for the posting
of the notice shall be at the office of the chief executive of the
local government unit in which the property is distrained.
(d) Release of distrained property upon payment prior to sale -
If at any time prior to the consummation of the sale, all the
proper charges are paid to the officer conducting the sale, the
goods or effects distrained shall be restored to the owner.
(e) Procedure of sale - At the time and place fixed in the notice,
the officer conducting the sale shall sell the goods or effects so
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distrained at public auction to the highest bidder for cash.
Within five (5) days after the sale, the local treasurer shall make
a report of the proceedings in writing to the local chief
executive concerned.
Should the property distrained be not disposed of within one
hundred and twenty (120) days from the date of distraint, the
same shall be considered as sold to the local government unit
concerned for the amount of the assessment made thereon by
the Committee on Appraisal and to the extent of the same
amount, the tax delinquencies shall be cancelled.
Said Committee on Appraisal shall be composed of the city or
municipal treasurer as chairman, with a representative of the
Commission on Audit and the city or municipal assessor as
members.
(f) Disposition of proceeds - The proceeds of the sale shall be
applied to satisfy the tax, including the surcharges, interest,
and other penalties incident to delinquency, and the expenses
of the distraint and sale. The balance over and above what is
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of the property sold. The expenses chargeable upon the seizure
and sale shall embrace only the actual expenses of seizure and
preservation of the property pending the sale, and no charge
shall be imposed for the services of the local officer or his
deputy. Where the proceeds of the sale are insufficient to
satisfy the claim, other property may, in like manner, be
distrained until the full amount due, including all expenses, is
collected.
Section 176. Levy on Real Property. - After the expiration of the time
required to pay the delinquent tax, fee, or charge, real property may
be levied on before, simultaneously, or after the distraint of personal
property belonging to the delinquent taxpayer. To this end, the
provincial, city or municipal treasurer, as the case may be, shall
prepare a duly authenticated certificate showing the name of the
taxpayer and the amount of the tax, fee, or charge, and penalty due
from him. Said certificate shall operate with the force of a legal
execution throughout the Philippines. Levy shall be effected by
writing upon said certificate the description of the property upon
which levy is made. At the same time, written notice of the levy shall
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be mailed to or served upon the assessor and the Register of Deeds
of the province or city where the property is located who shall
annotate the levy on the tax declaration and certificate of title of the
property, respectively, and the delinquent taxpayer or, if he be
absent from the Philippines, to his agent or the manager of the
business in respect to which the liability arose, or if there be none,
to the occupant of the property in question.
In case the levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property,
and the personal property of the taxpayer is not sufficient to satisfy
his delinquency, the provincial, city or municipal treasurer, as the
case may be, shall within thirty (30) days after execution of the
distraint, proceed with the levy on the taxpayer's real property.
A report on any levy shall, within ten (10) days after receipt of the
warrant, be submitted by the levying officer to the sanggunian
concerned.
Section 177. Penalty for Failure to Issue and Execute Warrant. -
Without prejudice to criminal prosecution under the Revised Penal
Code and other applicable laws, any local treasurer who fails to
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issue or execute the warrant of distraint or levy after the expiration
of the time prescribed, or who is found guilty of abusing the
exercise thereof by competent authority shall be automatically
dismissed from the service after due notice and hearing.
Section 178. Advertisement and Sale. - Within thirty (30) days after
the levy, the local treasurer shall proceed to publicly advertise for
sale or auction the property or a usable portion thereof as may be
necessary to satisfy the claim and cost of sale; and such
advertisement shall cover a period of at least thirty (30) days. It shall
be effected by posting a notice at the main entrance of the municipal
building or city hall, and in a public and conspicuous place in the
barangay where the real property is located, and by publication once
a week for three (3) weeks in a newspaper of general circulation in
the province, city or municipality where the property is located. The
advertisement shall contain the amount of taxes, fees or charges,
and penalties due thereon, and the time and place of sale, the name
of the taxpayer against whom the taxes, fees, or charges are levied,
and a short description of the property to be sold. At any time before
the date fixed for the sale, the taxpayer may stay they proceedings
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by paying the taxes, fees, charges, penalties and interests. If he fails
to do so, the sale shall proceed and shall be held either at the main
entrance of the provincial, city or municipal building, or on the
property to be sold, or at any other place as determined by the local
treasurer conducting the sale and specified in the notice of sale.
Within thirty (30) days after the sale, the local treasurer or his deputy
shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. After consultation with the
sanggunian, the local treasurer shall make and deliver to the
purchaser a certificate of sale, showing the proceeding of the sale,
describing the property sold, stating the name of the purchaser and
setting out the exact amount of all taxes, fees, charges, and related
surcharges, interests, or penalties: Provided, however, That any
excess in the proceeds of the sale over the claim and cost of sales
shall be turned over to the owner of the property.
The local treasurer may, by ordinance duly approved, advance an
amount sufficient to defray the costs of collection by means of the
remedies provided for in this Title, including the preservation or
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and subsequent sale, in cases of personal and real property
including improvements thereon.
Section 179. Redemption of Property Sold. - Within one (1) year from
the date of sale, the delinquent taxpayer or his representative shall
have the right to redeem the property upon payment to the local
treasurer of the total amount of taxes, fees, or charges, and related
surcharges, interests or penalties from the date of delinquency to
the date of sale, plus interest of not more than two percent (2%) per
month on the purchase price from the date of purchase to the date
of redemption. Such payment shall invalidate the certificate of sale
issued to the purchaser and the owner shall be entitled to a
certificate of redemption from the provincial, city or municipal
treasurer or his deputy.
The provincial, city or municipal treasurer or his deputy, upon
surrender by the purchaser of the certificate of sale previously
issued to him, shall forthwith return to the latter the entire purchase
price paid by him plus the interest of not more than two percent (2%)
per month herein provided for, the portion of the cost of sale and
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thereafter shall be free from the lien of such taxes, fees, or charges,
related surcharges, interests, and penalties.
The owner shall not, however, be deprived of the possession of said
property and shall be entitled to the rentals and other income
thereof until the expiration of the time allowed for its redemption.
Section 180. Final Deed to Purchaser. - In case the taxpayer fails to
redeem the property as provided herein, the local treasurer shall
execute a deed conveying to the purchaser so much of the property
as has been sold, free from liens of any taxes, fees, charges, related
surcharges, interests, and penalties. The deed shall succinctly recite
all the proceedings upon which the validity of the sale depends.
Section 181. Purchase of Property By the Local Government Units
for Want of Bidder. - In case there is no bidder for the real property
advertised for sale as provided herein, or if the highest bid is for an
amount insufficient to pay the taxes, fees, or charges, related
surcharges, interests, penalties and costs, the local treasurer
conducting the sale shall purchase the property in behalf of the
local government unit concerned to satisfy the claim and within two
(2) days thereafter shall make a report of his proceedings which

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shall be reflected upon the records of his office. It shall be the duty
of the Registrar of Deeds concerned upon registration with his office
of any such declaration of forfeiture to transfer the title of the
forfeited property to the local government unit concerned without
the necessity of an order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or
any of his representative, may redeem the property by paying to the
local treasurer the full amount of the taxes, fees, charges, and
related surcharges, interests, or penalties, and the costs of sale. If
the property is not redeemed as provided herein, the ownership
thereof shall be fully vested on the local government unit
concerned.
Section 182. Resale of Real Estate Taken for Taxes, Fees, or
Charges. - The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell
and dispose of the real property acquired under the preceding
section at public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit concerned.
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Section 183. Collection of Delinquent Taxes, Fees, Charges or other
Revenues through Judicial Action. - The local government unit
concerned may enforce the collection of delinquent taxes, fees,
charges or other revenues by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local treasurer
within the period prescribed in Section 194 of this Code.
Section 184. Further Distraint or Levy. - The remedies by distraint
and levy may be repeated if necessary until the full amount due,
including all expenses, is collected.
Section 185. Personal Property Exempt from Distraint or Levy. - The
following property shall be exempt from distraint and the levy,
attachment or execution thereof for delinquency in the payment of
any local tax, fee or charge, including the related surcharge and
interest:
(a) Tools and implements necessarily used by the delinquent
taxpayer in his trade or employment;
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(b) One (1) horse, cow, carabao, or other beast of burden, such
as the delinquent taxpayer may select, and necessarily used by
him in his ordinary occupation;
(c) His necessary clothing, and that of all his family;
(d) Household furniture and utensils necessary for
housekeeping and used for that purpose by the delinquent
taxpayer, such as he may select, of a value not exceeding Ten
thousand pesos (P10,000.00);
(e) Provisions, including crops, actually provided for individual
or family use sufficient for four (4) months;
(f) The professional libraries of doctors, engineers, lawyers and
judges;
(g) One fishing boat and net, not exceeding the total value of
Ten thousand pesos (P10,000.00), by the lawful use of which a
fisherman earns his livelihood; and
(h) Any material or article forming part of a house or
improvement of any real property.
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CHAPTER V
Miscellaneous Provisions
Section 186. Power To Levy Other Taxes, Fees or Charges. - Local
government units may exercise the power to levy taxes, fees or
charges on any base or subject not otherwise specifically
enumerated herein or taxed under the provisions of the National
Internal Revenue Code, as amended, or other applicable laws:
Provided, That the taxes, fees, or charges shall not be unjust,
excessive, oppressive, confiscatory or contrary to declared national
policy: Provided, further, That the ordinance levying such taxes,
fees or charges shall not be enacted without any prior public
hearing conducted for the purpose.
Section 187. Procedure for Approval and Effectivity of Tax,
Ordinances and Revenue Measures; Mandatory Public Hearings. -
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: Provided, further, That any question
on the constitutionality or legality of tax ordinances or revenue

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measures may be raised on appeal within thirty (30) days from the
effectivity thereof to the Secretary of Justice who shall render a
decision within sixty (60) days from the date of receipt of the 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: Provided, finally,
That within thirty (30) days after receipt of the decision or the lapse
of the sixty-day period without the Secretary of Justice acting upon
the appeal, the aggrieved party may file appropriate proceedings
with a court of competent jurisdiction.
Section 188. Publication of Tax Ordinances and Revenue Measures.
- Within ten (10) 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 at least two (2)
conspicuous and publicly accessible places.
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Section 189. Furnishing of Copies of Tax Ordinances and Revenue
Measures. - Copies of all provincial, city, and municipal and
barangay tax ordinances and revenue measures shall be furnished
the respective local treasurers for public dissemination.
Section 190. Attempt to Enforce Void or Suspended Tax Ordinances
and revenue measures. - The enforcement of any tax ordinance or
revenue measure after due notice of the disapproval or suspension
thereof shall be sufficient ground for administrative disciplinary
action against the local officials and employees responsible
therefor.
Section 191. Authority of Local Government Units to Adjust Rates of
Tax Ordinances. - Local government units shall have the authority to
adjust the tax rates as prescribed herein not oftener than once every
five (5) years, but in no case shall such adjustment exceed ten
percent (10%) of the rates fixed under this Code.
Section 192. Authority to Grant Tax Exemption Privileges. - Local
government units may, through ordinances duly approved, grant tax
exemptions, incentives or reliefs under such terms and conditions
as they may deem necessary.

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Section 193. Withdrawal of Tax Exemption Privileges. - Unless
otherwise provided in this Code, tax exemptions or incentives
granted to, or presently enjoyed by all persons, whether natural or
juridical, including government-owned or controlled corporations,
except local water districts, cooperatives duly registered under R.A.
No. 6938, non-stock and non-profit hospitals and educational
institutions, are hereby withdrawn upon the effectivity of this Code.
CHAPTER VI
Taxpayer's Remedies
Section 194. Periods of Assessment and Collection. -
(a) Local taxes, fees, or charges shall be assessed within five
(5) years from the date they became due. No action for the
collection of such taxes, fees, or charges, whether
administrative or judicial, shall be instituted after the expiration
of such period: Provided, That. taxes, fees or charges which
have accrued before the effectivity of this Code may be
assessed within a period of three (3) years from the date they
became due.
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(b) In case of fraud or intent to evade the payment of taxes,
fees, or charges, the same may be assessed within ten (10)
years from discovery of the fraud or intent to evade payment.
(c) Local taxes, fees, or charges may be collected within five (5)
years from the date of assessment by administrative or judicial
action. No such action shall be instituted after the expiration of
said period: Provided, however, That, taxes, fees or charges
assessed before the effectivity of this Code may be collected
within a period of three (3) years from the date of assessment.
(d) The running of the periods of prescription provided in the
preceding paragraphs shall be suspended for the time during
which:
(1) The treasurer is legally prevented from making the
assessment of collection;
(2) The taxpayer requests for a reinvestigation and
executes a waiver in writing before expiration of the period
within which to assess or collect; and
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(3) The taxpayer is out of the country or otherwise cannot
be located.
Section 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
stating the nature of the tax, fee, or charge, the amount of
deficiency, the surcharges, interests and penalties. 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
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competent jurisdiction otherwise the assessment becomes
conclusive and unappealable.
Section 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. No case or
proceeding shall be entertained in any court after the expiration of
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.
TITLE II
REAL PROPERTY TAXATION
CHAPTER I
General Provisions
Section 197. Scope. - This Title shall govern the administration,
appraisal, assessment, levy and collection of real property tax.
Section 198. Fundamental Principles. - The appraisal, assessment,
levy and collection of real property tax shall be guided by the
following fundamental principles:

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(a) Real property shall be appraised at its current and fair
market value;
(b) Real property shall be classified for assessment purposes
on the basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform
classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real
property tax shall not be let to any private person; and
(e) The appraisal and assessment of real property shall be
equitable.
Section 199. Definitions. - When used in this Title:
(a) "Acquisition Cost" for newly-acquired machinery not yet
depreciated and appraised within the year of its purchase,
refers to the actual cost of the machinery to its present owner,
plus the cost of transportation, handling, and installation at the
present site;
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(b) "Actual Use" refers to the purpose for which the property is
principally or predominantly utilized by the person in
possession thereof;
(c) "Ad Valorem Tax" is a levy on real property determined on
the basis of a fixed proportion of the value of the property;
(d) "Agricultural Land" is land devoted principally to the
planting of trees, raising of crops, livestock and poultry,
dairying, salt making, inland fishing and similar aquacultural
activities, and other agricultural activities, and is not classified
as mineral, timber, residential, commercial or industrial land;
(e) "Appraisal" is the act or process of determining the value of
property as of a specified date for a specific purpose;
(f) "Assessment" is the act or process of determining the value
of a property, or proportion thereof subject to tax, including the
discovery, listing, classification, and appraisal of properties;
(g) "Assessment Level" is the percentage applied to the fair
market value to determine the taxable value of the property;
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(h) "Assessed Value" is the fair market value of the real
property multiplied by the assessment level. It is synonymous
to taxable value;
(i) "Commercial Land" is land devoted principally for the object
of profit and is not classified as agricultural, industrial, mineral,
timber, or residential land;
(j) "Depreciated Value" is the value remaining after deducting
depreciation from the acquisition cost;
(k) "Economic Life" is the estimated period over which it is
anticipated that a machinery or equipment may be profitably
utilized;
(l) "Fair Market Value" is the price at which a property may be
sold by a seller who is not compelled to sell and bought by a
buyer who is not compelled to buy;
(m) "Improvement" is a valuable addition made to a property or
an amelioration in its condition, amounting to more than a mere
repair or replacement of parts involving capital expenditures
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and labor, which is intended to enhance its value, beauty or
utility or to adapt it for new or further purposes;
(n) "Industrial Land" is land devoted principally to industrial
activity as capital investment and is not classified as
agricultural, commercial, timber, mineral or residential land;
(o) "Machinery" embraces machines, equipment, mechanical
contrivances, instruments, appliances or apparatus which may
or may not be attached, permanently or temporarily, to the real
property. It includes the physical facilities for production, the
installations and appurtenant service facilities, those which are
mobile, self-powered or self-propelled, and those not
permanently attached to the real property which are actually,
directly, and exclusively used to meet the needs of the
particular industry, business or activity and which by their very
nature and purpose are designed for, or necessary to its
manufacturing, mining, logging, commercial, industrial or
agricultural purposes;
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(p) "Mineral Lands" are lands in which minerals, metallic or
non-metallic, exist in sufficient quantity or grade to justify the
necessary expenditures to extract and utilize such materials;
(q) "Reassessment" is the assigning of new assessed values to
property, particularly real estate, as the result of a general,
partial, or individual reappraisal of the property;
(r) "Remaining Economic Life" is the period of time expressed
in years from the date of appraisal to the date when the
machinery becomes valueless;
(s) "Remaining Value" is the value corresponding to the
remaining useful life of the machinery;
(t) "Replacement or Reproduction Cost" is the cost that would
be incurred on the basis of current prices, in acquiring an
equally desirable substitute property, or the cost of
reproducing a new replica of the property on the basis of
current prices with the same or closely similar material; and
(u) "Residential Land" is land principally devoted to habitation.
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Section 200. Administration of the Real Property Tax. - The
provinces and cities, including the municipalities within the
Metropolitan Manila Area, shall be primarily responsible for the
proper, efficient and effective administration of the real property tax.
CHAPTER II
Appraisal and Assessment of Real Property
Section 201. Appraisal of Real Property. - All real property, whether
taxable or exempt, shall be appraised at the current and fair market
value prevailing in the locality where the property is situated. The
Department of Finance shall promulgate the necessary rules and
regulations for the classification, appraisal, and assessment of real
property pursuant to the provisions of this Code.
Section 202. Declaration of real Property by the Owner or
Administrator. - It shall be the duty of all persons, natural or
juridical, owning or administering real property, including the
improvements therein, within a city or municipality, or their duly
authorized representative, to prepare, or cause to be prepared, and
file with the provincial, city or municipal assessor, a sworn
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previously declared or undeclared, taxable or exempt, which shall
be the current and fair market value of the property, as determined
by the declarant. Such declaration shall contain a description of the
property sufficient in detail to enable the assessor or his deputy to
identify the same for assessment purposes. The sworn declaration
of real property herein referred to shall be filed with the assessor
concerned once every three (3) years during the period from
January first (1st) to June thirtieth (30th) commencing with the
calendar year 1992.
Section 203. Duty of Person Acquiring Real Property or Making
Improvement Thereon. - It shall also be the duty of any person, or
his authorized representative, acquiring at any time real property in
any municipality or city or making any improvement on real
property, to prepare, or cause to be prepared, and file with the
provincial, city or municipal assessor, a sworn statement declaring
the true value of subject property, within sixty (60) days after the
acquisition of such property or upon completion or occupancy of
the improvement, whichever comes earlier.
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Section 204. Declaration of Real Property by the Assessor. - When
any person, natural or juridical, by whom real property is required to
be declared under Section 202 hereof, refuses or fails for any reason
to make such declaration within the time prescribed, the provincial,
city or municipal assessor shall himself declare the property in the
name of the defaulting owner, if known, or against an unknown
owner, as the case may be, and shall assess the property for
taxation in accordance with the provision of this Title. No oath shall
be required of a declaration thus made by the provincial, city or
municipal assessor.
Section 205. Listing of Real Property in the Assessment Rolls. -
(a) In every province and city, including the municipalities
within the Metropolitan Manila Area, there shall be prepared and
maintained by the provincial, city or municipal assessor an
assessment roll wherein shall be listed all real property,
whether taxable or exempt, located within the territorial
jurisdiction of the local government unit concerned. Real
property shall be listed, valued and assessed in the name of the
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owner or administrator, or anyone having legal interest in the
property.
(b) The undivided real property of a deceased person may be
listed, valued and assessed in the name of the estate or of the
heirs and devisees without designating them individually; and
undivided real property other than that owned by a deceased
may be listed, valued and assessed in the name of one or more
co-owners: Provided, however, That such heir, devisee, or co-
owner shall be liable severally and proportionately for all
obligations imposed by this Title and the payment of the real
property tax with respect to the undivided property.
(c) The real property of a corporation, partnership, or
association shall be listed, valued and assessed in the same
manner as that of an individual.
(d) Real property owned by the Republic of the Philippines, its
instrumentalities and political subdivisions, the beneficial use
of which has been granted, for consideration or otherwise, to a
taxable person, shall be listed, valued and assessed in the
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name of the possessor, grantee or of the public entity if such
property has been acquired or held for resale or lease.
Section 206. Proof of Exemption of Real Property from Taxation. -
Every person by or for whom real property is declared, who shall
claim tax exemption for such property under this Title shall file with
the provincial, city or municipal assessor within thirty (30) days from
the date of the declaration of real property sufficient documentary
evidence in support of such claim including corporate charters, title
of ownership, articles of incorporation, by-laws, contracts,
affidavits, certifications and mortgage deeds, and similar
documents.
If the required evidence is not submitted within the period herein
prescribed, the property shall be listed as taxable in the assessment
roll. However, if the property shall be proven to be tax exempt, the
same shall be dropped from the assessment roll.
Section 207. Real Property Identification System. - All declarations
of real property made under the provisions of this Title shall be kept
and filed under a uniform classification system to be established by
the provincial, city or municipal assessor.

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Section 208. Notification of Transfer of Real Property Ownership. -
Any person who shall transfer real property ownership to another
shall notify the provincial, city or municipal assessor concerned
within sixty (60) days from the date of such transfer. The notification
shall include the mode of transfer, the description of the property
alienated, the name and address of the transferee.
Section 209. Duty of Registrar of Deeds to Appraise Assessor of
Real Property Listed in Registry. -
(a) To ascertain whether or not any real property entered in the
Registry of Property has escaped discovery and listing for the
purpose of taxation, the Registrar of Deeds shall prepare and
submit to the provincial, city or municipal assessor, within six
(6) months from the date of effectivity of this Code and every
year thereafter, an abstract of his registry, which shall include
brief but sufficient description of the real properties entered
therein, their present owners, and the dates of their most recent
transfer or alienation accompanied by copies of corresponding
deeds of sale, donation, or partition or other forms of
alienation.
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(b) It shall also be the duty of the Registrar of Deeds to require
every person who shall present for registration a document of
transfer, alienation, or encumbrance of real property to
accompany the same with a certificate to the effect that the real
property subject of the transfer, alienation, or encumbrance, as
the case may be, has been fully paid of all real property taxes
due thereon. Failure to provide such certificate shall be a valid
cause for the Registrar of Deeds to refuse the registration of the
document.
Section 210. Duty of Official Issuing Building Permit or Certificate of
Registration of Machinery to Transmit Copy to Assessor. - Any
public official or employee who may now or hereafter be required by
law or regulation to issue to any person a permit for the
construction, addition, repair, or renovation of a building, or
permanent improvement on land, or a certificate of registration for
any machinery, including machines, mechanical contrivances, and
apparatus attached or affixed on land or to another real property,
shall transmit a copy of such permit or certificate within thirty (30)
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days of its issuance, to the assessor of the province, city or
municipality where the property is situated.
Section 211. Duty of Geodetic Engineers to Furnish Copy of Plans to
Assessor. - It shall be the duty of all geodetic engineers, public or
private, to furnish free of charge to the assessor of the province, city
or municipality where the land is located with a white or blue print
copy of each of all approved original or subdivision plans or maps
of surveys executed by them within thirty (30) days from receipt of
such plans from the Lands Management Bureau, the Land
Registration Authority, or the Housing and Land Use Regulatory
Board, as the case may be.
Section 212. Preparation of Schedule of Fair Market Values. - Before
any general revision of property assessment is made pursuant to
the provisions of this Title, there shall be prepared a schedule of fair
market values by the provincial, city and municipal assessor of the
municipalities within the Metropolitan Manila Area for the different
classes of real property situated in their respective local
government units for enactment by ordinance of the sanggunian
concerned. The schedule of fair market values shall be published in

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a newspaper of general circulation in the province, city or
municipality concerned or in the absence thereof, shall be posted in
the provincial capitol, city or municipal hall and in two other
conspicuous public places therein.
Section 213. Authority of Assessor to Take Evidence. - For the
purpose of obtaining information on which to base the market value
of any real property, the assessor of the province, city or
municipality or his deputy may summon the owners of the
properties to be affected or persons having legal interest therein
and witnesses, administer oaths, and take deposition concerning
the property, its ownership, amount, nature, and value.
Section 214. Amendment of Schedule of Fair Market Values. - The
provincial, city or municipal assessor may recommend to the
sanggunian concerned amendments to correct errors in valuation in
the schedule of fair market values. The sanggunian concerned shall,
by ordinance, act upon the recommendation within ninety (90) days
from receipt thereof.
Section 215. Classes of Real Property for Assessment Purposes. -
For purposes of assessment, real property shall be classified as

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residential, agricultural, commercial, industrial, mineral, timberland
or special.
The city or municipality within the Metropolitan Manila Area, through
their respective sanggunian, shall have the power to classify lands
as residential, agricultural, commercial, industrial, mineral,
timberland, or special in accordance with their zoning ordinances.
Section 216. Special Classes of Real Property. - All lands, buildings,
and other improvements thereon actually, directly and exclusively
used for hospitals, cultural, or scientific purposes, and those owned
and used by local water districts, and government-owned or
controlled corporations rendering essential public services in the
supply and distribution of water and/or generation and transmission
of electric power shall be classified as special.
Section 217. Actual Use of Real Property as Basis for Assessment. -
Real property shall be classified, valued and assessed on the basis
of its actual use regardless of where located, whoever owns it, and
whoever uses it.
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Section 218. Assessment Levels. - The assessment levels to be
applied to the fair market value of real property to determine its
assessed value shall be fixed by ordinances of the sangguniang
panlalawigan, sangguniang panlungsod or sangguniang bayan of a
municipality within the Metropolitan Manila Area, at the rates not
exceeding the following:
(a) On Lands:
CLASS ASSESSMENT LEVELS
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%
(b) On Buildings and Other Structures:
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<td
</td
(1) Residential
Fair market Value
Over Not Over Assessment
Levels
P175,000.00 0%
P175,000.00 300,000.00 10%
300,000.00 500,000.00 20%
500,000.00 750,000.00 25%
750,000.00 1,000,000.00 30%
1,000,000.00 2,000,000.00 35%
2,000,000.00 5,000,000.00 40%
5,000,000.00 10,000,000.00 50%
10,000,000.00 60%
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(2) Agricultural
Fair Market Value
Levels
P300,000.00 25%
P300,000.00 500,000.00 30%
500,000.00 750,000.00 35%
750,000.00 1,000,000.00 40%
1,000,000.00 2,000,000.00 45%
2,000,000.00 50%
(3) Commercial / Industrial
Fair Market Value
Levels
P300,000.00 30%
P300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
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750,000.00 1,000,000.00 50%
1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
5,000,000.00 10,000,000.00 75%
10,000,000.00 80%
(4) Timberland
Fair Market Value
Levels
P300,000.00 45%
P300,000.00 500,000.00 50%
500,000.00 750,000.00 55%
750,000.00 1,000,000.00 60%
5,000,000.00 2,000,000.00 65%
2,000,000.00 70%
(c) On Machineries
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Class Assessment
Levels
Agricultural 40%
Residential 50%
Commercial 80%
Industrial 80%
(d) On Special Classes: The assessment levels for all lands
buildings, machineries and other improvements;
Actual Use Assessment
Level
Cultural 15%
Scientific 15%
Hospital 15%
Local water 10%
districts
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Government- 10%
owned or
controlled
corporations
engaged in the
supply and
distribution of
water and/or
generation and
transmission
of electric
power
Section 219. General Revision of Assessment and Property
Classification. - The provincial, city or municipal assessor shall
undertake a general revision of real property assessments within
two (2) years after the effectivity of this Code and every three (3)
years thereafter.
Section 220. Valuation of Real Property. - In cases where (a) real
property is declared and listed for taxation purposes for the first
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time; (b) there is an ongoing general revision of property
classification and assessment; or (c) a request is made by the
person in whose name the property is declared, the provincial, city
or municipal assessor or his duly authorized deputy shall, in
accordance with the provisions of this Chapter, make a
classification, appraisal and assessment or taxpayer's valuation
thereon: Provided, however, That the assessment of real property
shall not be increased oftener than once every three (3) years except
in case of new improvements substantially increasing the value of
said property or of any change in its actual use.
Section 221. Date of Effectivity of Assessment or Reassessment. -
All assessments or reassessments made after the first (1st) day of
January of any year shall take effect on the first (1st) day of January
of the succeeding year: Provided, however, That the reassessment
of real property due to its partial or total destruction, or to a major
change in its actual use, or to any great and sudden inflation or
deflation of real property values, or to the gross illegality of the
assessment when made or to any other abnormal cause, shall be
made within ninety (90) days from the date any such cause or
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causes occurred, and shall take effect at the beginning of the
quarter next following the reassessment.
Section 222. Assessment of Property Subject to Back Taxes. - Real
property declared for the first time shall be assessed for taxes for
the period during which it would have been liable but in no case of
more than ten (10) years prior to the date of initial assessment:
Provided, however, That such taxes shall be computed on the basis
of the applicable schedule of values in force during the
corresponding period.
If such taxes are paid on or before the end of the quarter following
the date the notice of assessment was received by the owner or his
representative, no interest for delinquency shall be imposed
thereon; otherwise, such taxes shall be subject to an interest at the
rate of two percent (2%) per month or a fraction thereof from the
date of the receipt of the assessment until such taxes are fully paid.
Section 223. Notification of New or Revised Assessment. - When real
property is assessed for the first time or when an existing
assessment is increased or decreased, the provincial, city or
municipal assessor shall within thirty (30) days give written notice of
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such new or revised assessment to the person in whose name the
property is declared. The notice may be delivered personally or by
registered mail or through the assistance of the punong barangay to
the last known address of the person to be served.
Section 224. Appraisal and Assessment of Machinery. -
(a) The fair market value of a brand-new machinery shall be the
acquisition cost. In all other cases, the fair market value shall
be determined by dividing the remaining economic life of the
machinery by its estimated economic life and multiplied by the
replacement or reproduction cost.
(b) If the machinery is imported, the acquisition cost includes
freight, insurance, bank and other charges, brokerage, arrastre
and handling, duties and taxes, plus charges at the present site.
The cost in foreign currency of imported machinery shall be
converted to peso cost on the basis of foreign currency
exchange rates as fixed by the Central Bank.
Section 225. Depreciation Allowance for Machinery. - For purposes
of assessment, a depreciation allowance shall be made for
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machinery at a rate not exceeding five percent (5%) of its original
cost or its replacement or reproduction cost, as the case may be, for
each year of use: Provided, however, That the remaining value for all
kinds of machinery shall be fixed at not less than twenty percent
(20%) of such original, replacement, or reproduction cost for so long
as the machinery is useful and in operation.
CHAPTER III
Assessment Appeals
Section 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, appeal to the Board of
Assessment Appeals of the provincial 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.
Section 227. Organization, Powers, Duties, and Functions of the
Local Board of Assessment Appeals. -

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(a) The Board of Assessment Appeals of the province or city
shall be composed of the Registrar of Deeds, as Chairman, the
provincial or city prosecutor and the provincial, or city engineer
as members, who shall serve as such in an ex officio capacity
without additional compensation.
(b) The chairman of the Board shall have the power to
designate any employee of the province or city to serve as
secretary to the Board also without additional compensation.
(c) The chairman and members of the Board of Assessment
Appeals of the province or city shall assume their respective
positions without need of further appointment or special
designations immediately upon effectivity of this Code. They
shall take oath or affirmation of office in the prescribed form.
(d) In provinces and cities without a provincial or city engineer,
the district engineer shall serve as member of the Board. In the
absence of the Registrar of Deeds, or the provincial or city
prosecutor, or the provincial or city engineer, or the district
engineer, the persons performing their duties, whether in an
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automatically become the chairman or member, respectively, of
the said Board, as the case may be.
Section 228. Meetings and Expenses of the Local Board of
Assessment Appeals. -
(a) The Board of Assessment Appeals of the province or city
shall meet once a month and as often as may be necessary for
the prompt disposition of appealed cases. No member of the
Board shall be entitled to per diems or traveling expenses for
his attendance in Board meetings, except when conducting an
ocular inspection in connection with a case under appeal.
(b) All expenses of the Board shall be charged against the
general fund of the province or city, as the case may be. The
sanggunian concerned shall appropriate the necessary funds to
enable the Board in their respective localities to operate
effectively.
Section 229. Action by the Local Board of Assessment Appeals. -
(a) The Board shall decide the appeal within one hundred
twenty (120) days from the date of receipt of such appeal. The
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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 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
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 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
Board. In case the provincial or city assessor concurs in the
revision or the assessment, 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.
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therein or the assessor who is not satisfied with the decision of
the Board, may, within thirty (30) days after receipt of the
decision of said Board, appeal to the Central Board of
Assessment Appeals, as herein provided. The decision of the
Central Board shall be final and executory.
Section 230. Central Board of Assessment Appeals. - The Central
Board of Assessment Appeals shall be composed of a chairman,
and two (2) members to be appointed by the President, who shall
serve for a term of seven (7) years, without reappointment. Of those
first appointed, the chairman shall hold office for seven (7) years,
one member for five (5) years, and the other member for three (3)
years. Appointment to any vacancy shall be only for the unexpired
portion of the term of the predecessor. In no case shall any member
be appointed or designated in a temporary or acting capacity. The
chairman and the members of the Board shall be Filipino citizens, at
least forty (40) years old at the time of their appointment, and
members of the Bar or Certified Public Accountants for at least ten
(10) years immediately preceding their appointment. The chairman
of the Board of Assessment Appeals shall have the salary grade
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equivalent to the rank of Director III under the Salary Standardization
Law exclusive of allowances and other emoluments. The members
of the Board shall have the salary grade equivalent to the rank of
Director II under the Salary Standardization Law exclusive of
allowances and other emoluments. The Board shall have appellate
jurisdiction over all assessment cases decided by the Local Board
of Assessment Appeals.
There shall be Hearing Officers to be appointed by the Central Board
of Assessment Appeals pursuant to civil service laws, rules and
regulations, one each for Luzon, Visayas and Mindanao, who shall
hold office in Manila, Cebu City and Cagayan de Oro City,
respectively, and who shall serve for a term of six (6) years, without
reappointment until their successors have been appointed and
qualified. The Hearing Officers shall have the same qualifications as
that of the Judges of the Municipal Trial Courts.
The Central Board Assessment Appeals, in the performance of its
powers and duties, may establish and organize staffs, offices, units,
prescribe the titles, functions and duties of their members and adopt
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Unless otherwise provided by law, the annual appropriations for the
Central Board of Assessment Appeals shall be included in the
budget of the Department of Finance in the corresponding General
Appropriations Act.
Section 231. Effect of Appeal on the Payment of Real Property Tax. -
Appeal on assessments of real property made under the provisions
of this Code shall, in no case, suspend the collection of the
corresponding realty taxes on the property involved as assessed by
the provincial or city assessor, without prejudice to subsequent
adjustment depending upon the final outcome of the appeal.
CHAPTER IV
Imposition of Real Property Tax
Section 232. Power to Levy Real Property Tax. - A province or city or
a municipality within the Metropolitan Manila Area my levy an annual
ad valorem tax on real property such as land, building, machinery,
and other improvement not hereinafter specifically exempted.
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Section 233. Rates of Levy. - A province or city or a municipality
within the Metropolitan Manila Area shall fix a uniform rate of basic
real property tax applicable to their respective localities as follows:
(a) In the case of a province, at the rate not exceeding one
percent (1%) of the assessed value of real property; and
(b) In the case of a city or a municipality within the Metropolitan
Manila Area, at the rate not exceeding two percent (2%) of the
assessed value of real property.
Section 234. Exemptions from Real Property Tax. - The following are
exempted from payment of the real property tax:
(a) Real property owned by the Republic of the Philippines or
any of its political subdivisions except when the beneficial use
thereof has been granted, for consideration or otherwise, to a
taxable person;
(b) Charitable institutions, churches, parsonages or convents
appurtenant thereto, mosques, non-profit or religious
cemeteries and all lands, buildings, and improvements actually,
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directly, and exclusively used for religious, charitable or
educational purposes;
(c) All machineries and equipment that are actually, directly and
exclusively used by local water districts and government
owned or controlled corporations engaged in the supply and
distribution of water and/or generation and transmission of
electric power;
(d) All real property owned by duly registered cooperatives as
provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and
environmental protection.
Except as provided herein, any exemption from payment of real
property tax previously granted to, or presently enjoyed by, all
persons, whether natural or juridical, including all government-
owned or controlled corporations are hereby withdrawn upon
the effectivity of this Code.
CHAPTER V
Special Levies on Real Property

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Section 235. Additional Levy on Real Property for the Special
Education Fund. - A province or city, or a municipality within the
Metropolitan Manila Area, may levy and collect an annual tax of one
percent (1%) on the assessed value of real property which shall be
in addition to the basic real property tax. The proceeds thereof shall
exclusively accrue to the Special Education Fund (SEF).
Section 236. Additional Ad Valorem Tax on Idle Lands. - A province
or city, or a municipality within the Metropolitan Manila Area, may
levy an annual tax on idle lands at the rate not exceeding five
percent (5%) of the assessed value of the property which shall be in
addition to the basic real property tax.
Section 237. Idle Lands, Coverage. - For purposes of real property
taxation, idle lands shall include the following:
(a) Agricultural lands, more than one (1) hectare in area,
suitable for cultivation, dairying, inland fishery, and other
agricultural uses, one-half (1/2) of which remain uncultivated or
unimproved by the owner of the property or person having legal
interest therein. Agricultural lands planted to permanent or
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not be considered idle lands. Lands actually used for grazing
purposes shall likewise not be considered idle lands.
(b) Lands, other than agricultural, located in a city or
municipality, more than one thousand (1,000) square meters in
area one-half (1/2) of which remain unutilized or unimproved by
the owner of the property or person having legal interest
therein.
Regardless of land area, this Section shall likewise apply to
residential lots in subdivisions duly approved by proper authorities,
the ownership of which has been transferred to individual owners,
who shall be liable for the additional tax: Provided, however, That
individual lots of such subdivisions, the ownership of which has not
been transferred to the buyer shall be considered as part of the
subdivision, and shall be subject to the additional tax payable by
subdivision owner or operator.
Section 238. Idle Lands Exempt from Tax. - A province or city or a
municipality within the Metropolitan Manila Area may exempt idle
lands from the additional levy by reason of force majeure, civil
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physically or legally prevents the owner of the property or person
having legal interest therein from improving, utilizing or cultivating
the same.
Section 239. Listing of Idle Lands by the Assessor. - The provincial,
city or municipal assessor shall make and keep an updated record
of all idle lands located within his area of jurisdiction. For purposes
of collection, the provincial, city or municipal assessor shall furnish
a copy thereof to the provincial or city treasurer who shall notify, on
the basis of such record, the owner of the property or person having
legal interest therein of the imposition of the additional tax.
Section 240. Special Levy by Local Government Units. - A province,
city or municipality may impose a special levy on the lands
comprised within its territorial jurisdiction specially benefited by
public works projects or improvements funded by the local
government unit concerned: Provided, however, That the special
levy shall not exceed sixty percent (60%) of the actual cost of such
projects and improvements, including the costs of acquiring land
and such other real property in connection therewith: Provided,
further, That the special levy shall not apply to lands exempt from
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basic real property tax and the remainder of the land portions of
which have been donated to the local government unit concerned
for the construction of such projects or improvements.
Section 241. Ordinance Imposing a Special Levy. - A tax ordinance
imposing a special levy shall describe with reasonable accuracy the
nature, extent, and location of the public works projects or
improvements to be undertaken, state the estimated cost thereof,
specify the metes and bounds by monuments and lines and the
number of annual installments for the payment of the special levy
which in no case shall be less than five (5) nor more than ten (10)
years. The sanggunian concerned shall not be obliged, in the
apportionment and computation of the special levy, to establish a
uniform percentage of all lands subject to the payment of the tax for
the entire district, but it may fix different rates for different parts or
sections thereof, depending on whether such land is more or less
benefited by proposed work.
Section 242. Publication of Proposed Ordinance Imposing a Special
Levy. - Before the enactment of an ordinance imposing a special
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thereon; notify in writing the owners of the real property to be
affected or the persons having legal interest therein as to the date
and place thereof and afford the latter the opportunity to express
their positions or objections relative to the proposed ordinance.
Section 243. Fixing the Amount of Special Levy. - The special levy
authorized herein shall be apportioned, computed, and assessed
according to the assessed valuation of the lands affected as shown
by the books of the assessor concerned, or its current assessed
value as fixed by said assessor if the property does not appear of
record in his books. Upon the effectivity of the ordinance imposing
special levy, the assessor concerned shall forthwith proceed to
determine the annual amount of special levy assessed against each
parcel of land comprised within the area especially benefited and
shall send to each landowner a written notice thereof by mail,
personal service or publication in appropriate cases.
Section 244. Taxpayer's Remedies Against Special Levy. - Any
owner of real property affected by a special levy or any person
having a legal interest therein may, upon receipt of the written
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notice of assessment of the special levy, avail of the remedies
provided for in Chapter 3, Title Two, Book II of this Code.
Section 245. Accrual of Special Levy. - The special levy shall accrue
on the first day of the quarter next following the effectivity of the
ordinance imposing such levy.lawphil.net
CHAPTER VI
Collection of Real Property Tax
Section 246. Date of Accrual of Tax. - The real property tax for any
year shall accrue on the first day of January and from that date it
shall constitute a lien on the property which shall be superior to any
other lien, mortgage, or encumbrance of any kind whatsoever, and
shall be extinguished only upon the payment of the delinquent tax.
Section 247. Collection of Tax. - The collection of the real property
tax with interest thereon and related expenses, and the enforcement
of the remedies provided for in this Title or any applicable laws,
shall be the responsibility of the city or municipal treasurer
concerned.
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The city or municipal treasurer may deputize the barangay treasurer
to collect all taxes on real property located in the barangay:
Provided, That the barangay treasurer is properly bonded for the
purpose: Provided, further, That the premium on the bond shall be
paid by the city or municipal government concerned.
Section 248. Assessor to Furnish Local Treasurer with Assessment
Roll. - The provincial, city or municipal assessor shall prepare and
submit to the treasurer of the local government unit, on or before
the thirty-first (31st) day of December each year, an assessment roll
containing a list of all persons whose real properties have been
newly assessed or reassessed and the values of such properties.
Section 249. Notice of Time for Collection of Tax. - The city or
municipal treasurer shall, on or before the thirty-first (31st) day of
January each year, in the case of the basic real property tax and the
additional tax for the Special Education Fund (SEF) or any other
date to be prescribed by the sanggunian concerned in the case of
any other tax levied under this title, post the notice of the dates
when the tax may be paid without interest at a conspicuous and
publicly accessible place at the city or municipal hall. Said notice

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shall likewise be published in a newspaper of general circulation in
the locality once a week for two (2) consecutive weeks.
Section 250. Payment of Real Property Taxes in Installments. - The
owner of the real property or the person having legal interest therein
may pay the basic real property tax and the additional tax for Special
Education Fund (SEF) due thereon without interest in four (4) equal
installments; the first installment to be due and payable on or before
March Thirty-first (31st); the second installment, on or before June
Thirty (30); the third installment, on or before September Thirty (30);
and the last installment on or before December Thirty-first (31st),
except the special levy the payment of which shall be governed by
ordinance of the sanggunian concerned.
The date for the payment of any other tax imposed under this Title
without interest shall be prescribed by the sanggunian concerned.
Payments of real property taxes shall first be applied to prior years
delinquencies, interests, and penalties, if any, and only after said
delinquencies are settled may tax payments be credited for the
current period.
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Section 251. Tax Discount for Advanced Prompt Payment. - If the
basic real property tax and the additional tax accruing to the Special
Education Fund (SEF) are paid in advance in accordance with the
prescribed schedule of payment as provided under Section 250, the
sanggunian concerned may grant a discount not exceeding twenty
percent (20%) of the annual tax due.
Section 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) days from payment of the tax to the provincial,
city treasurer or municipal treasurer, in the case of a
municipality within Metropolitan Manila Area, who shall decide
the protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under protest, shall be held
in trust by the treasurer concerned.
(c) In the event that the protest is finally decided in favor of the
taxpayer, the amount or portion of the tax protested shall be
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refunded to the protestant, or applied as tax credit against his
existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of
the sixty day period prescribed in subparagraph (a), the
taxpayer may avail of the remedies as provided for in Chapter 3,
Title II, Book II of this Code.
Section 253. Repayment of Excessive Collections. - When an
assessment of basic real property tax, or any other tax levied under
this Title, is found to be illegal or erroneous and the tax is
accordingly reduced or adjusted, the taxpayer may file a written
claim for refund or credit for taxes and interests with the provincial
or city treasurer within two (2) years from the date the taxpayer is
entitled to such reduction or adjustment.
The provincial or city treasurer shall decide the claim for tax refund
or credit within sixty (60) days from receipt thereof. In case the claim
for tax refund or credit is denied, the taxpayer may avail of the
remedies as provided in Chapter 3, Title II, Book II of this Code.
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Section 254. Notice of Delinquency in the Payment of the Real
Property Tax. -
(a) When the real property tax or any other tax imposed under
this Title becomes delinquent, the provincial, city or municipal
treasurer shall immediately cause a notice of the delinquency to
be posted at the main hall and in a publicly accessible and
conspicuous place in each barangay of the local government
unit concerned. The notice of delinquency shall also be
published once a week for two (2) consecutive weeks, in a
newspaper of general circulation in the province, city, or
municipality.
(b) Such notice shall specify the date upon which the tax
became delinquent and shall state that personal property may
be distrained to effect payment. It shall likewise state that any
time before the distraint of personal property, payment of the
tax with surcharges, interests and penalties may be made in
accordance with the next following Section, and unless the tax,
surcharges and penalties are paid before the expiration of the
year for which the tax is due except when the notice of
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assessment or special levy is contested administratively or
judicially pursuant to the provisions of Chapter 3, Title II, Book
II of this Code, the delinquent real property will be sold at public
auction, and the title to the property will be vested in the
purchaser, subject, however, to the right of the delinquent
owner of the property or any person having legal interest
therein to redeem the property within one (1) year from the date
of sale.
Section 255. Interests on Unpaid Real Property Tax. - In case of
failure to pay the basic real property tax or any other tax levied
under this Title upon the expiration of the periods as provided in
Section 250, or when due, as the case may be, shall subject the
taxpayer to the payment of interest at the rate of two percent (2%)
per month on the unpaid amount or a fraction thereof, until the
delinquent tax shall have been fully paid: Provided, however, That in
no case shall the total interest on the unpaid tax or portion thereof
exceed thirty-six (36) months.
Section 256. Remedies For The Collection Of Real Property Tax. -
For the collection of the basic real property tax and any other tax
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levied under this Title, the local government unit concerned may
avail of the remedies by administrative action thru levy on real
property or by judicial action.
Section 257. Local Governments Lien. - The basic real property tax
and any other tax levied under this Title constitutes a lien on the
property subject to tax, superior to all liens, charges or
encumbrances in favor of any person, irrespective of the owner or
possessor thereof, enforceable by administrative or judicial action,
and may only be extinguished upon payment of the tax and the
related interests and expenses.
Section 258. Levy on Real Property. - After the expiration of the time
required to pay the basic real property tax or any other tax levied
under this Title, real property subject to such tax may be levied
upon through the issuance of a warrant on or before, or
simultaneously with, the institution of the civil action for the
collection of the delinquent tax. The provincial or city treasurer, or a
treasurer of a municipality within the Metropolitan Manila Area, as
the case may be, when issuing a warrant of levy shall prepare a duly
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of the property or person having legal interest therein, the
description of the property, the amount of the tax due and the
interest thereon. The warrant shall operate with the force of a legal
execution throughout the province, city or a municipality, within the
Metropolitan Manila Area. The warrant shall be mailed to or served
upon the delinquent owner of the real property or person having
legal interest therein, or in case he is out of the country or cannot be
located, the administrator or occupant of the property. At the same
time, written notice of the levy with the attached warrant shall be
mailed to or served upon the assessor and the Registrar of Deeds of
the province, city or municipality within the Metropolitan Manila
Area where the property is located, who shall annotate the levy on
the tax declaration and certificate of title of the property,
respectively.
The levying officer shall submit a report on the levy to the
sanggunian concerned within ten (10) days after receipt of the
warrant by the owner of the property or person having legal interest
therein.
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Section 259. Penalty for Failure to Issue and Execute Warrant. -
Without prejudice to criminal prosecution under the Revised Penal
Code and other applicable laws, any local treasurer or his deputy
who fails to issue or execute the warrant of levy within one (1) year
from the time the tax becomes delinquent or within thirty (30) days
from the date of the issuance thereof, or who is found guilty of
abusing the exercise thereof in an administrative or judicial
proceeding shall be dismissed from the service.
Section 260. Advertisement and Sale. - Within thirty (30) days after
service of the warrant of levy, the local treasurer shall proceed to
publicly advertise for sale or auction the property or a usable
portion thereof as may be necessary to satisfy the tax delinquency
and expenses of sale. The advertisement shall be effected by
posting a notice at the main entrance of the provincial, city or
municipal building, and in a publicly accessible and conspicuous
place in the barangay where the real property is located, and by
publication once a week for two (2) weeks in a newspaper of general
circulation in the province, city or municipality where the property is
located. The advertisement shall specify the amount of the
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delinquent tax, the interest due thereon and expenses of sale, the
date and place of sale, the name of the owner of the real property or
person having legal interest therein, and a description of the
property to be sold. At any time before the date fixed for the sale,
the owner of the real property or person having legal interest therein
may stay the proceedings by paying the delinquent tax, the interest
due thereon and the expenses of sale. The sale shall be held either
at the main entrance of the provincial, city or municipal building, or
on the property to be sold, or at any other place as specified in the
notice of the sale.
Within thirty (30) days after the sale, the local treasurer or his deputy
shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. The local treasurer shall
likewise prepare and deliver to the purchaser a certificate of sale
which shall contain the name of the purchaser, a description of the
property sold, the amount of the delinquent tax, the interest due
thereon, the expenses of sale and a brief description of the
proceedings: Provided, however, That proceeds of the sale in
excess of the delinquent tax, the interest due thereon, and the
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expenses of sale shall be remitted to the owner of the real property
or person having legal interest therein.
The local treasurer may, by ordinance duly approved, advance an
amount sufficient to defray the costs of collection thru the remedies
provided for in this Title, including the expenses of advertisement
and sale.
Section 261. Redemption of Property Sold. - Within one (1) year from
the date of sale, the owner of the delinquent real property or person
having legal interest therein, or his representative, shall have the
right to redeem the property upon payment to the local treasurer of
the amount of the delinquent tax, including the interest due thereon,
and the expenses of sale from the date of delinquency to the date of
sale, plus interest of not more than two percent (2%) per month on
the purchase price from the date of sale to the date of redemption.
Such payment shall invalidate the certificate of sale issued to the
purchaser and the owner of the delinquent real property or person
having legal interest therein shall be entitled to a certificate of
redemption which shall be issued by the local treasurer or his
deputy.
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From the date of sale until the expiration of the period of
redemption, the delinquent real property shall remain in possession
of the owner or person having legal interest therein who shall be
entitled to the income and other fruits thereof.
The local treasurer or his deputy, upon receipt from the purchaser of
the certificate of sale, shall forthwith return to the latter the entire
amount paid by him plus interest of not more than two percent (2%)
per month. Thereafter, the property shall be free from lien of such
delinquent tax, interest due thereon and expenses of sale.
Section 262. Final Deed to Purchaser. - In case the owner or person
having legal interest fails to redeem the delinquent property as
provided herein, the local treasurer shall execute a deed conveying
to the purchaser said property, free from lien of the delinquent tax,
interest due thereon and expenses of sale. The deed shall briefly
state the proceedings upon which the validity of the sale rests.
Section 263. Purchase of Property By the Local Government Units
for Want of Bidder. - In case there is no bidder for the real property
advertised for sale as provided herein, the real property tax and the
related interest and costs of sale the local treasurer conducting the
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sale shall purchase the property in behalf of the local government
unit concerned to satisfy the claim and within two (2) days thereafter
shall make a report of his proceedings which shall be reflected upon
the records of his office. It shall be the duty of the Registrar of
Deeds concerned upon registration with his office of any such
declaration of forfeiture to transfer the title of the forfeited property
to the local government unit concerned without the necessity of an
order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or
any of his representative, may redeem the property by paying to the
local treasurer the full amount of the real property tax and the
related interest and the costs of sale. If the property is not redeemed
as provided herein, the ownership thereof shall be vested on the
local government unit concerned.
Section 264. Resale of Real Estate Taken for Taxes, Fees, or
Charges. - The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell
and dispose of the real property acquired under the preceding
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section at public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit concerned.
Section 265. Further Distraint or Levy. - Levy may be repeated if
necessary until the full amount due, including all expenses, is
collected.
Section 266. Collection of Real Property Tax Through the Courts. -
The local government unit concerned may enforce the collection of
the basic real property tax or any other tax levied under this Title by
civil action in any court of competent jurisdiction. The civil action
shall be filed by the local treasurer within the period prescribed in
Section 270 of this Code.
Section 267. Action Assailing Validity of Tax Sale. - No court shall
entertain any action assailing the validity or any sale at public
auction of real property or rights therein under this Title until the
taxpayer shall have deposited with the court the amount for which
the real property was sold, together with interest of two percent (2%)
per month from the date of sale to the time of the institution of the
action. The amount so deposited shall be paid to the purchaser at
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the auction sale if the deed is declared invalid but it shall be
returned to the depositor if the action fails.
Neither shall any court declare a sale at public auction invalid by
reason or irregularities or informalities in the proceedings unless
the substantive rights of the delinquent owner of the real property or
the person having legal interest therein have been impaired.
Section 268. Payment of Delinquent Taxes on Property Subject of
Controversy. - In any action involving the ownership or possession
of, or succession to, real property, the court may, motu propio or
upon representation of the provincial, city, or municipal treasurer or
his deputy, award such ownership, possession, or succession to
any party to the action upon payment to the court of the taxes with
interest due on the property and all other costs that may have
accrued, subject to the final outcome of the action.
Section 269. Treasurer to Certify Delinquencies Remaining
Uncollected. - The provincial, city or municipal treasurer or their
deputies shall prepare a certified list of all real property tax
delinquencies which remained uncollected or unpaid for at least one
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for such non-collection or non-payment, and shall submit the same
to the sanggunian concerned on or before December thirty-first
(31st) of the year immediately succeeding the year in which the
delinquencies were incurred, with a request for assistance in the
enforcement of the remedies for collection provided herein.
Section 270. Periods Within Which To Collect Real Property Taxes. -
The basic real property tax and any other tax levied under this Title
shall be collected within five (5) years from the date they become
due. No action for the collection of the tax, whether administrative or
judicial, shall be instituted after the expiration of such period. In
case of fraud or intent to evade payment of the tax, such action may
be instituted for the collection of the same within ten (10) years from
the discovery of such fraud or intent to evade payment.
The period of prescription within which to collect shall be
suspended for the time during which:
(1) The local treasurer is legally prevented from collecting the
tax;
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(2) The owner of the property or the person having legal interest
therein requests for reinvestigation and executes a waiver in
writing before the expiration of the period within which to
collect; and
(3) The owner of the property or the person having legal interest
therein is out of the country or otherwise cannot be located.
CHAPTER VII
Disposition of Proceeds
Section 271. Distribution of Proceeds. - The proceeds of the 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 provisions 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 percent (35%) shall accrue to the
general fund;
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(2) Municipality - Forty percent (40%) to the general fund of
the municipality where the property is located; and
(3) Barangay - Twenty-five percent (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) 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
(c) In the case of a municipality within the Metropolitan Manila
Area:
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(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 property is located;
(ii) Fifty percent (50%) shall accrue equally to all
component barangays of the municipality.
(d) 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.
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Section 272. Application of Proceeds of the Additional One Percent
SEF Tax. - The proceeds from the additional one percent (1%) tax on
real property accruing to the Special Education Fund (SEF) shall be
automatically released to the local school boards: Provided, That, in
case of provinces, the proceeds shall be divided equally between
the provincial and municipal school boards: Provided, however,
That the proceeds shall be allocated for the operation and
maintenance of public schools, construction and repair of school
buildings, facilities and equipment, educational research, purchase
of books and periodicals, and sports development as determined
and approved by the Local School Board.
Section 273. Proceeds of the Tax on Idle Lands. - The proceeds of
the additional real property tax on idle lands shall accrue to the
respective general fund of the province or city where the land is
located. In the case of a municipality within the Metropolitan Manila
Area, the proceeds shall accrue equally to the Metropolitan Manila
Authority and the municipality where the land is located.
Section 274. Proceeds of the Special Levy. - The proceeds of the
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improvements shall accrue to the general fund of the local
government unit which financed such public works, projects or
other improvements.
CHAPTER VIII
Special Provisions
Section 275. General Assessment Revision; Expenses Incident
Thereto. - The sanggunian of provinces, cities and municipalities
within the Metropolitan Manila Area shall provide the necessary
appropriations to defray the expenses incident to the general
revision of real property assessment.
All expenses incident to a general revision of real property
assessment shall, by ordinance of the sangguniang panlalawigan,
be apportioned between the province and the municipality on the
basis of the taxable area of the municipality concerned.
Section 276. Condonation or Reduction of Real Property Tax and
Interest. - In case of a general failure of crops or substantial
decrease in the price of agricultural or agribased products, or
calamity in any province, city or municipality, the sanggunian
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concerned, by ordinance passed prior to the first (1st) day of
January of any year and upon recommendation of the Local Disaster
Coordinating Council, may condone or reduce, wholly or partially,
the taxes and interest thereon for the succeeding year or years in
the city or municipality affected by the calamity.
Section 277. Condonation or Reduction of Tax by the President of
the Philippines. - The President of the Philippines may, when public
interest so requires, condone or reduce the real property tax and
interest for any year in any province or city or a municipality within
the Metropolitan Manila Area.
Section 278. Duty of Registrar of Deeds and Notaries Public to
Assist the Provincial, City or Municipal Assessor. - It shall be the
duty of the Registrar of Deeds and notaries public to furnish the
provincial, city or municipal assessor with copies of all contracts
selling, transferring, or otherwise conveying, leasing, or mortgaging
real property received by, or acknowledged before them.
Section 279. Insurance Companies to Furnish Information. -
Insurance companies are hereby required to furnish the provincial,
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insurance on buildings, structures, and improvements insured by
them or such other documents which may be necessary for the
proper assessment thereof.
Section 280. Fees in Court Actions. - All court actions, criminal or
civil, instituted at the instance of the provincial, city or municipal
treasurer or assessor under the provisions of this Code, shall be
exempt from the payment of court and sheriff's fees.
Section 281. Fees in Registration of Papers or Documents on Sale of
Delinquent Real Property to Province, City or Municipality. - All
certificates, documents, and papers covering the sale of delinquent
property to the province, city or municipality, if registered in the
Registry of Property, shall be exempt from the documentary stamp
tax and registration fees.
Section 282. Real Property Assessment Notices or Owner's Copies
of Tax Declarations to be Exempt from Postal Charges or Fees. - All
real property assessment notices or owner's copies of tax
declaration sent through the mails by the assessor shall be exempt
from the payment of postal charges or fees.
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Section 283. Sale and Forfeiture Before Effectivity of Code. - Tax
delinquencies incurred, and sales and forfeitures of delinquent real
property effected, before the effectivity of this Code shall be
governed by the provisions of applicable laws then in force.
TITLE III
SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS OF
NATIONAL TAXES
CHAPTER I
Allotment of Internal Revenue
Section 284. Allotment of Internal Revenue Taxes. - Local
government units shall have a share in the national internal revenue
taxes based on the collection of the third fiscal year preceding the
current fiscal year as follows:
(a) On the first year of the effectivity of this Code, thirty percent
(30%);
(b) On the second year, thirty-five percent (35%); and
(c) On the third year and thereafter, forty percent (40%).
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Provided, That in the event that the national government incurs an
unmanageable public sector deficit, the President of the Philippines
is hereby authorized, upon the recommendation of Secretary of
Finance, Secretary of Interior and Local Government and Secretary
of Budget and Management, and subject to consultation with the
presiding officers of both Houses of Congress and the presidents of
the "liga", to make the necessary adjustments in the internal
revenue allotment of local government units but in no case shall the
allotment be less than thirty percent (30%) of the collection of
national internal revenue taxes of the third fiscal year preceding the
current fiscal year: Provided, further, That in the first year of the
effectivity of this Code, the local government units shall, in addition
to the thirty percent (30%) internal revenue allotment which shall
include the cost of devolved functions for essential public services,
be entitled to receive the amount equivalent to the cost of devolved
personal services.
Section 285. Allocation to Local Government Units. - The share of
local government units in the internal revenue allotment shall be
collected in the following manner:
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(a) Provinces - Twenty-three percent (23%);
(b) Cities - Twenty-three percent (23%);
(c) Municipalities - Thirty-four percent (34%); and
(d) Barangays - Twenty percent (20%)
Provided, however, That the share of each province, city, and
municipality shall be determined on the basis of the following
formula:
(a) Population - Fifty percent (50%);
(b) Land Area - Twenty-five percent (25%); and
(c) Equal sharing - Twenty-five percent (25%)
Provided, further, That the share of each barangay with a population
of not less than one hundred (100) inhabitants shall not be less than
Eighty thousand (P80,000.00) per annum chargeable against the
twenty percent (20%) share of the barangay from the internal
revenue allotment, and the balance to be allocated on the basis of
the following formula:
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(a) On the first year of the effectivity of this Code:
(1) Population - Forty percent (40%); and
(2) Equal sharing - Sixty percent (60%)
(b) On the second year:
(1) Population - Fifty percent (50%); and
(2) Equal sharing - Fifty percent (50%)
(c) On the third year and thereafter:
(1) Population - Sixty percent (60%); and
(2) Equal sharing - Forty percent (40%).
Provided, finally, That the financial requirements of barangays
created by local government units after the effectivity of this Code
shall be the responsibility of the local government unit concerned.
Section 286. Automatic Release of Shares. -
(a) The share of each local government unit shall be released,
without need of any further action, directly to the provincial,
city, municipal or barangay treasurer, as the case may be, on a

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quarterly basis within five (5) days after the end of each quarter,
and which shall not be subject to any lien or holdback that may
be imposed by the national government for whatever purpose.
(b) Nothing in this Chapter shall be understood to diminish the
share of local government units under existing laws.
Section 287. Local Development Projects. - Each local government
unit shall appropriate in its annual budget no less than twenty
percent (20%) of its annual internal revenue allotment for
development projects. Copies of the development plans of local
government units shall be furnished the Department of Interior and
Local Government.
Section 288. Rules and Regulations. - The Secretary of Finance, in
consultation with the Secretary of Budget and Management, shall
promulgate the necessary rules and regulations for a simplified
disbursement scheme designed for the speedy and effective
enforcement of the provisions of this Chapter.
CHAPTER II
Share of Local Government Units in the National Wealth
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Section 289. Share in the Proceeds from the Development and
Utilization of the National Wealth. - Local government units shall
have an equitable share in the proceeds derived from the utilization
and development of the national wealth within their respective
areas, including sharing the same with the inhabitants by way of
direct benefits.
Section 290. Amount of Share of Local Government Units. - Local
government units shall, in addition to the internal revenue allotment,
have a share of forty percent (40%) of the gross collection derived
by the national government from the preceding fiscal year from
mining taxes, royalties, forestry and fishery charges, and such other
taxes, fees, or charges, including related surcharges, interests, or
fines, and from its share in any co-production, joint venture or
production sharing agreement in the utilization and development of
the national wealth within their territorial jurisdiction.
Section 291. Share of the Local Governments from any Government
Agency or Owned or Controlled Corporation. - Local government
units shall have a share based on the preceding fiscal year from the
proceeds derived by any government agency or government-owned

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or controlled corporation engaged in the utilization and
development of the national wealth based on the following formula
whichever will produce a higher share for the local government unit:
(a) One percent (1%) of the gross sales or receipts of the
preceding calendar year; or
(b) Forty percent (40%) of the mining taxes, royalties, forestry
and fishery charges and such other taxes, fees or charges,
including related surcharges, interests, or fines the government
agency or government owned or controlled corporation would
have paid if it were not otherwise exempt.
Section 292. Allocation of Shares. - The share in the preceding
Section shall be distributed in the following manner:
(a) Where the natural resources are located in the province:
(1) Province - Twenty percent (20%);
(2) Component City/Municipality - Forty-five percent (45%);
and
(3) Barangay - Thirty-five percent (35%)
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Provided, however, That where the natural resources are
located in two (2) or more provinces, or in two (2) or more
component cities or municipalities or in two (2) or more
barangays, their respective shares shall be computed on the
basis of:
(1) Population - Seventy percent (70%); and
(2) Land area - Thirty percent (30%)
(b) Where the natural resources are located in a highly
urbanized or independent component city:
(1) City - Sixty-five percent (65%); and
(2) Barangay - Thirty-five percent (35%)
Provided, however, That where the natural resources are
located in such two (2) or more cities, the allocation of shares
shall be based on the formula on population and land area as
specified in paragraph (a) of this Section.
Section 293. Remittance of the Share of Local Government Units. -
The share of local government units from the utilization and
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development of national wealth shall be remitted in accordance with
Section 286 of this Code: Provided, however, That in the case of any
government agency or government-owned or controlled corporation
engaged in the utilization and development of the national wealth,
such share shall be directly remitted to the provincial, city,
municipal or barangay treasurer concerned within five (5) days after
the end of each quarter.
Section 294. Development and Livelihood Projects. - The proceeds
from the share of local government units pursuant to this chapter
shall be appropriated by their respective sanggunian to finance local
government and livelihood projects: Provided, however, That at
least eighty percent (80%) of the proceeds derived from the
development and utilization of hydrothermal. geothermal, and other
sources of energy shall be applied solely to lower the cost of
electricity in the local government unit where such a source of
energy is located.
TITLE IV
Credit Financing
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Section 295. Scope. - This Title shall govern the power of local
government units to create indebtedness and to enter into credit
and other financial transactions.
Section 296. General Policy. -
(a) It shall be the basic policy that any local government unit
may create indebtedness, and avail of credit facilities to finance
local infrastructure and other socio-economic development
projects in accordance with the approved local development
plan and public investment program.
(b) A local government unit may avail of credit lines from
government or private banks and lending institutions for the
purpose of stabilizing local finances.
Section 297. Loans, Credits, and Other Forms of Indebtedness of
Local Government Units. -
(a) A local government unit may contract loans, credits, and
other forms of indebtedness with any government or domestic
private bank and other lending institutions to finance the
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or maintenance of public facilities, infrastructure facilities,
housing projects, the acquisition of real property, and the
implementation of other capital investment projects, subject to
such terms and conditions as may be agreed upon by the local
government unit and the lender. The proceeds from such
transactions shall accrue directly to the local government unit
concerned.
(b) A local government unit may likewise secure from any
government bank and lending institution short, medium and
long-term loans and advances against security of real estate or
other acceptable assets for the establishment, development, or
expansion of agricultural, industrial, commercial, house
financing projects, livelihood projects, and other economic
enterprises.
(c) Government financial and other lending institutions are
hereby authorized to grant loans, credits, and other forms of
indebtedness out of their loanable funds to local government
units for purposes specified above.
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Section 298. Deferred-Payment and other Financial Schemes. -
Provincial, city and municipal governments may likewise acquire
property, plant, machinery, equipment, and such necessary
accessories under a supplier's credit, deferred payment plan, or
either financial scheme.
Section 299. Bonds and Other Long-Term Securities. - Subject to the
rules and regulations of the Central Bank and the Securities and
Exchange Commission, provinces, cities, and municipalities are
hereby authorized to issue bonds, debentures, securities,
collaterals, notes and other obligations to finance self-liquidating,
income-producing development or livelihood projects pursuant to
the priorities established in the approved local development plan or
the public investment program. The sanggunian concerned shall,
through an ordinance approved by a majority of all its members,
declare and state the terms and conditions of the bonds and the
purpose for which the proposed indebtedness is to be incurred.
Section 300. Inter-Local Government Loans, Grants, and Subsidies. -
Provinces, cities, and municipalities may, upon approval of the
majority of all members of the sanggunian concerned and in

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amounts not exceeding their surplus funds, extend loans, grants, or
subsidies to other local government units under such terms and
conditions as may be agreed upon by the contracting parties.
Local government units may, upon approval of their respective
sanggunian, jointly or severally contract loans, credits, and other
forms of indebtedness for purposes mutually beneficial to them.
Section 301. Loans from Funds Secured by the National Government
from Foreign Sources. -
(a) The President, or his duly authorized representative, may,
through any government financial or other lending institution,
relend to any province, city, municipality, or barangay, the
proceeds of loans contracted with foreign financial institutions
or other international funding agencies for the purpose of
financing the construction, installation, improvement,
expansion, operation, or maintenance of public utilities and
facilities, infrastructure facilities, or housing projects, the
acquisition of real property, and the implementation of other
capital investment projects, subject to such terms and
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local government unit. The proceeds from such loans shall
accrue directly to the local government concerned.
(b) The President may likewise authorize the relending to local
government units the proceeds of grants secured from foreign
sources, subject to the provisions of existing laws and the
applicable grant agreements. (c) Repayment or amortization of
loans including accrued interest thereon, may be financed
partly from the income of the projects or services and from the
regular income of the local government unit, which must be
provided for and appropriated regularly in its annual budget
until the loan and the interest thereon shall have been fully
paid.
Section 302. Financing, Construction, Maintenance, Operation, and
Management of Infrastructure Projects by the Private Sector. -
(a) Local government units may enter into contracts with any
duly prequalified individual contractor, for the financing,
construction, operation, and maintenance of any financially
viable infrastructure facilities, under the build-operate-transfer
agreement, subject to the applicable provisions of Republic Act

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Numbered Sixty-nine hundred fifty-seven (R.A. No. 6957)
authorizing the financing, construction, operation and
maintenance of infrastructure projects by the private sector and
the rules and regulations issued thereunder and such terms
and conditions provided in this Section.
(b) Local government units shall include in their respective
local development plans and public investment programs
priority projects that may be financed, constructed, operated
and maintained by the private sector under this Section. It shall
be the duty of the local government unit concerned to disclose
to the public all projects eligible for financing under this
Section, including official notification of duly registered
contractors and publications in newspapers of general or local
circulation and in conspicuous and accessible public places.
Local projects under the build-operate-and-transfer agreement
shall be confirmed by the local development councils.
(c) Projects implemented under this Section shall be subject to
the following terms and conditions:
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(1) The provincial, city or municipal engineer, as the case
may be, upon formal request in writing by the local chief
executive, shall prepare the plans and specifications for
the proposed projects, which shall be submitted to the
sanggunian for approval.
(2) Upon approval by the sanggunian of the project plans
and specifications, the provincial, city, or municipal
engineer shall, as the case may be, cause to be published
once every week, for two (2) consecutive weeks in at least
one (1) local newspaper which is circulated in the region,
province, city or municipality in which the project is to be
implemented, a notice inviting all duly qualified
contractors to participate in a public bidding for the
projects so approved. The conduct of public bidding and
award of contracts for local government projects under
this Section shall be in accordance with this Code and
other applicable laws, rules and regulations.
In the case of a build-operate-and-transfer agreement, the
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whose offer is deemed most advantageous to the local
government and based on the present value of its
proposed tolls, fees, rentals, and charges over a fixed term
for the facility to be constructed, operated, and maintained
according to the prescribed minimum design and
performance standards, plans, and specifications. For this
purpose, the winning contractor shall be automatically
granted by the local government unit concerned the
franchise to operate and maintain the facility, including the
collection of tolls, fees, rentals, and charges in accordance
with subsection (c-4) hereof.
contract shall be awarded to the lowest complying bidder
based on the present value of its proposed schedule of
amortization payments for the facility to be constructed
according to the prescribed minimum design and
performance standards, plans, and specifications.
(3) Any contractor who shall undertake the prosecution of
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bonds to protect the interest of the province, city, or
municipality, in such amounts as may be fixed by the
sanggunian concerned and the provincial, city or
municipal engineer shall not, as the case may be, allow
any contractor to initiate the prosecution of projects under
this Section unless such contractor presents proof or
evidence that he has posted the required bond.
(4) The contractor shall be entitled to a reasonable return
of its investment in accordance with its bid proposal as
accepted by the local government unit concerned.
repayment shall be made by authorizing the contractor to
charge and collect reasonable tolls, fees, rentals, and
charges for the use of the project facility not exceeding
those proposed in the bid and incorporated in the contract:
Provided, That the local government unit concerned shall,
based on reasonableness and equity, approve the tolls,
fees, rentals and charges: Provided, further, That the
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shall be for a fixed period as proposed in the bid and
incorporated in the contract which shall in no case exceed
fifty (50) years: Provided, finally, That during the lifetime of
the contract, the contractor shall undertake the necessary
maintenance and repair of the facility in accordance with
standards prescribed in the bidding documents and in the
contract.
repayment shall be made through amortization payments
in accordance with the schedule proposed in the bid and
incorporated in the contract.
In case of land reclamation or construction of industrial
estates, the repayment plan may consist of the grant of a
portion or percentage of the reclaimed land or the
industrial estate constructed.
(5) Every infrastructure project undertaken under this
Section shall be constructed, operated, and maintained by
the contractor under the technical supervision of the local
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government unit and in accordance with the plans,
specifications, standards, and costs approved by it.
(d) The provincial, city, or municipal legal officer shall, as the
case may be, review the contracts executed pursuant to this
Section to determine their legality, validity, enforceability and
correctness of form.
Section 303. Remedies and Sanctions. - Local government unit shall
appropriate in their respective annual budgets such amounts as are
sufficient to pay the loans and other indebtedness incurred or
redeem or retire bonds, debentures, securities, notes and other
obligations issued under this Title: Provided, That failure to provide
the appropriations herein required shall render their annual budgets
inoperative.
TITLE V
Local Fiscal Administration
CHAPTER I
General Provisions
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Section 304. Scope. - This Title shall govern the conduct and
management of financial affairs, transactions, and operations of
provinces, cities, municipalities, and barangays.
Section 305. Fundamental Principles. - The financial affairs,
transactions, and operations of local government units shall be
governed by the following fundamental principles:
(a) No money shall be paid out of the local treasury except in
pursuance of an appropriations ordinance or law;
(b) Local government funds and monies shall be spent solely
for public purposes;
(c) Local revenue is generated only from sources expressly
authorized by law or ordinance, and collection thereof shall at
all times be acknowledged properly;
(d) All monies officially received by a local government officer
in any capacity or on any occasion shall be accounted for as
local funds, unless otherwise provided by law;
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(e) Trust funds in the local treasury shall not be paid out except
in fulfillment of the purpose for which the trust was created or
the funds received;
(f) Every officer of the local government unit whose duties
permit or require the possession or custody of local funds shall
be properly bonded, and such officer shall be accountable and
responsible for said funds and for the safekeeping thereof in
conformity with the provisions of law;
(g) Local governments shall formulate sound financial plans,
and local budgets shall be based on functions, activities, and
projects, in terms of expected results;
(h) Local budget plans and goals shall, as far as practicable, be
harmonized with national development plans, goals, and
strategies in order to optimize the utilization of resources and
to avoid duplication in the use of fiscal and physical resources;
(i) Local budgets shall operationalize approved local
development plans;
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(j) Local government units shall ensure that their respective
budgets incorporate the requirements of their component units
and provide for equitable allocation of resources among these
component units;
(k) National planning shall be based on local planning to ensure
that the needs and aspirations of the people as articulated by
the local government units in their respective local
development plans are considered in the formulation of
budgets of national line agencies or offices;
(l) Fiscal responsibility shall be shared by all those exercising
authority over the financial affairs, transactions, and operations
of the local government units; and
(m) The local government unit shall endeavor to have a
balanced budget in each fiscal year of operation.
Section 306. Definitions. - When used in this Title, the term -
(a) "Annual Budget" refers to a financial plan embodying the
estimates of income and expenditures for one (1) fiscal year;
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(b) "Appropriation" refers to an authorization made by
ordinance, directing the payment of goods and services from
local government funds under specified conditions or for
specific purposes;
(c) "Budget Document" refers to the instrument used by the
local chief executive to present a comprehensive financial plan
to the sanggunian concerned;
(d) "Capital Outlays" refers to appropriations for the purchase
of goods and services, the benefits of which extend beyond the
fiscal year and which add to the assets of the local government
unit concerned, including investments in public utilities such as
public markets and slaughterhouses;
(e) "Continuing Appropriation" refers to an appropriation
available to support obligations for a specified purpose or
projects, such as those for the construction of physical
structures or for the acquisition of real property or equipment,
even when these obligations are incurred beyond the budget
year;
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(f) "Current Operating Expenditures" refers to appropriations
for the purchase of goods and services for the conduct of
normal local government operations within the fiscal year,
including goods and services that will be used or consumed
during the budget year;
(g) "Expected Results" refers to the services, products, or
benefits that shall accrue to the public, estimated in terms of
performance measures or physical targets;
(h) "Fund" refers to a sum of money, or other assets convertible
to cash, set aside for the purpose of carrying out specific
activities or attaining certain objectives in accordance with
special regulations, restrictions, or limitations, and constitutes
as independent fiscal and accounting entity;
(i) "Income" refers to all revenues and receipts collected or
received forming the gross accretions of funds of the local
government unit;
(j) "Obligations" refers to an amount committed to be paid by
the local government unit for any lawful act made by an
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accountable officer for and in behalf of the local unit
concerned;
(k) "Personal Services" refers to appropriations for the payment
of salaries, wages and other compensation of permanent,
temporary, contractual, and casual employees of the local
government unit;
(l) "Receipts" refers to income realized from operations and
activities of the local government or are received by it in the
exercise of its corporate functions, consisting of charges for
services rendered, conveniences furnished, or the price of a
commodity sold, as well as loans, contributions or aids from
other entities, except provisional advances for budgetary
purposes; and
(m) "Revenue" refers to income derived from the regular
system of taxation enforced under authority of law or
ordinance, and, as such, accrue more or less regularly every
year.
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CHAPTER II
Local and Other Special Funds
ARTICLE I
Receipts, Safekeeping Article and Disposition of Local Funds
Section 307. Remittance of Government Monies to the Local
Treasury. - Officers of local government authorized to receive and
collect monies arising from taxes, revenues, or receipts of any kind
shall remit the full amount received and collected to the treasury of
such local government unit which shall be credited to the particular
account or accounts to which the monies in question properly
belong.
Section 308. Local Funds. - Every local government unit shall
maintain a General Fund which shall be used to account for such
monies and resources as may be received by and disbursed from
the local treasury. The General Fund shall consist of monies and
resources of the local government which are available for the
payment of expenditures, obligations or purposes not specifically
declared by law as accruing and chargeable to, or payable from, any
other fund.
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Section 309. Special Funds. - There shall be maintained in every
provincial, city, or municipal treasury the following special funds:
(a) Special Education Fund (SEF) shall consist of the respective
shares of provinces, cities, municipalities and barangays in the
proceeds of the additional tax on real property to be
appropriated for purposes prescribed in Section 272 of this
Code; and
(b) Trust Funds shall consist of private and public monies
which have officially come into the possession of the local
government or of a local government official as trustee, agent
or administrator, or which have been received as a guaranty for
the fulfillment of some obligation. A trust fund shall only be
used for the specific purpose for which it was created or for
which it came into the possession of the local government unit.
Section 310. Separation of Books and Depository Accounts. - Local
accountants and treasurers shall maintain separate books and
depository accounts, respectively, for each fund in their custody or
administration under such rules and regulations as the Commission
on Audit may prescribe.

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Section 311. Depository Accounts. - Local treasurers shall maintain
depository accounts in the name of their respective local
government units with banks, preferably government-owned,
located in or nearest to their respective areas of jurisdiction.
Earnings of each depository account shall accrue exclusively
thereto.
Section 312. Separation of Personal Money from Public Funds. -
Local treasurers and other accountable officers shall keep monies
separate and distinct from local public funds in their custody and
shall not make profit out of public money or otherwise apply the
same to any use not authorized by law or ordinance.
ARTICLE II
Special Accounts
Section 313. Special Accounts to be Maintained in the General Fund.
- Local government units shall maintain special accounts in the
general fund for the following:
(a) Public utilities and other economic enterprises;
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(b) Loans, interests, bond issues, and other contributions for
specific purposes; and
(c) Development projects funded from the share of the local
government unit concerned in the internal revenue allotment
and such other special accounts which may be created by law
or ordinance.
Receipts, transfers, and expenditures involving the foregoing
special accounts shall be properly taken up thereunder.
Profits or income derived the operation of public utilities and other
economic enterprises, after deduction for the cost of improvement,
repair and other related expenses of the public utility or economic
enterprise concerned, shall first be applied for the return of the
advances or loans made therefor. Any excess shall form part of the
general fund of the local government unit concerned.
CHAPTER III
Budgeting
ARTICLE I
Local Government Budgets

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Section 314. Form and Content. -
(a) Local government budgets shall primarily consists of two (2)
parts:
(1) The estimates of income; and
(2) The total appropriations covering the current operating
expenditures and capital outlays.
(b) The budget document shall contain:
(1) A budget message of the local chief executive setting
forth in brief the significance of the executive budget,
particularly in relation to the approved local development
plan;
(2) A brief summary of the functions, projects, and
activities to be accomplished in pursuit of the goals and
objectives of the local government unit for the ensuing
fiscal year, specifically the delivery of basic services or
facilities enumerated under Section 17 of this Code;
(3) Summary of financial statements setting forth:
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(i) The actual income and expenditures during the
immediately preceding year;
(ii) The actual income and expenditures of the first two
(2) quarters and the estimates of income and
expenditures for the last two (2) quarters of the
current fiscal year;
(iii) The estimates of income for the ensuing fiscal
year from ordinances and laws existing at the time the
proposed budget is transmitted, together with other
proposals;
(iv) The estimated expenditures necessary to carry out
the functions, projects, and activities of the local
government unit for the ensuing fiscal year;
(v) All essential facts regarding the bonded and other
long-term obligations and indebtedness of the local
government unit, if any;
(vi) Summary statement of all statutory and
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(vii) Such other financial statements and data as are
deemed necessary or desirable in order to disclose in
all practicable detail the financial condition of the
local government unit.
Section 315. Submission of Detailed Statements of Income and
Expenditures. - (a) On or before the fifteenth (15th) day of July of
each year, local treasurers shall submit to their respective local
chief executives a certified statement, covering the income and
expenditures of the preceding fiscal year, the actual income and
expenditures of the first two (2) quarters of the current year, and the
estimated income and expenditures for the last two (2) quarters of
the current year.
Section 316. Local Finance Committee. - There is hereby created in
every province, city or municipality a local finance committee to be
composed of the local planning and development officer, the local
budget officer, and the local treasurer. It shall exercise the following
functions:
(a) Determine the income reasonably projected as collectible for
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(b) Recommend the appropriate tax and other revenue
measures or borrowings which may be appropriate to support
the budget;
(c) Recommend to the local chief executive concerned the level
of the annual expenditures and the ceilings of spending for
economic, social, and general services based on the approved
local development plans;
(d) Recommend to the local chief executive concerned the
proper allocation of expenditures for each development activity
between current operating expenditures and capital outlays;
(e) Recommend to the local chief executive concerned the
amount to be allocated for capital outlay under each
development activity or infrastructure project;
(f) Assist the sangguniang panlalawigan in the review and
evaluation of budget of component cities and municipalities in
the case of provincial finance committee, the barangay budgets
in the case of city or municipal finance committee, and
recommend the appropriate action thereon;
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(g) Assist the sanggunian concerned in the analysis and review
of annual regular and supplemental budgets of the respective
local government unit to determine compliance with statutory
and administrative requirements; and
(h) Conduct semi-annual review and general examination of
cost and accomplishments against performance standards
applied in undertaking development projects.
A copy of this report shall be furnished the local chief executive and
the sanggunian concerned, and shall be posted in conspicuous and
publicly accessible places in the provinces, cities, municipalities
and barangays.
Section 317. Submission of Budget Proposals by Heads or
Departments or Offices. -
(a) Each head of department or office shall submit a budget
proposal for his department or office to the local chief
executive on or before the fifteenth (15th) of July of each year:
Provided, That the budget proposal of each department of
office shall be categorized under either economic, social or
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general services: Provided, further, That each service shall be
covered by the budget of at least one (1) department or office of
the local government unit concerned.
The said budget proposal shall be prepared in accordance with
such policy and program guidelines as the local chief executive
concerned may issue in conformity with the local development
plan, the budgetary ceilings prescribed by the local finance
committee, and the general requirements prescribed in this
Title.
(b) Budget proposals of departments or offices shall be divided
into two (2) primary categories, namely: the current operating
expenditures and the capital outlays. Such budget proposals
shall contain the following information:
(1) Objectives, functions, and projects showing the general
character and relative importance of the work to be
accomplished or the services to be rendered, and the cost
thereof;
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(2) Organizational charts and staffing patterns indicating
the list of plantilla positions with their corresponding
salaries, and proposals for reclassification of positions
and salary changes, as well as the creation of new
positions with their proposed salary grade, duly supported
by proper justification;
(3) Brief description of the functions, projects and
activities for the ensuing fiscal year, expected results for
each function, project and activity, and the nature of work
to be performed, including the objects of expenditures for
each function, project and activity;
(4) Relation of the work and financial proposals to
approved local development plans;
(5) Estimated current operating expenditures and capital
outlays with comparative data for the last two (2)
preceding, current, and ensuing fiscal years; and
(6) Accomplishment reports for the last two (2) preceding
and current fiscal years.
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Section 318. Preparation of the Budget by the Local Chief Executive.
- Upon receipt of the statements of income and expenditures from
the treasurer, the budget proposals of the heads of departments and
offices, and the estimates of income and budgetary ceilings from the
local finance committee, the local chief executive shall prepare the
executive budget for the ensuing fiscal year in accordance with the
provisions of this Title.
The local chief executive shall submit the said executive budget to
the sanggunian concerned not later than the sixteenth (16th) of
October of the current fiscal year. Failure to submit such budget on
the date prescribed herein shall subject the local chief executive to
such criminal and administrative penalties as provided for under
this Code and other applicable laws.
Section 319. Legislative Authorization of the Budget. - On or before
the end of the current fiscal year, the sanggunian concerned shall,
through an ordinance, the annual budget of the local government
unit for the ensuing fiscal year on the basis of the estimates of
income and expenditures submitted by the local chief executive.
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Section 320. Effectivity of Budgets. - The ordinance enacting the
annual budget shall take effect at the beginning of the ensuing
calendar year. An ordinance enacting a supplemental budget,
however, shall take effect upon its approval or on the date fixed
therein.
The responsibility for the execution of the annual and supplemental
budgets and the accountability therefor shall be vested primarily in
the local chief executive concerned.
Section 321. Changes in the Annual Budget. - All budgetary
proposals shall be included and considered in the budget
preparation process. After the local chief executive concerned shall
have submitted the executive budget to the sanggunian, no
ordinance providing for a supplemental budget shall be enacted,
except when supported by funds actually available as certified by
the local treasurer or by new revenue sources.
A supplemental budget may also be enacted in times of public
calamity by way of budgetary realignment to set aside
appropriations for the purchase of supplies and materials or the
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indispensable to prevent imminent danger to, or loss of, life or
property, in the jurisdiction of the local government unit or in other
areas declared by the President in a state of calamity. Such
ordinance shall clearly indicate the sources of funds available for
appropriations, as certified under oath by the local treasurer and
local accountant and attested by the local chief executive, and the
various items of appropriations affected and the reasons for the
change.
Section 322. Reversion of Unexpended Balances of Appropriations,
Continuing Appropriations. - Unexpended balances of
appropriations authorized in the annual appropriations ordinance
shall revert to the unappropriated surplus of the general fund at the
end of the fiscal year and shall not thereafter be available for the
expenditure except by subsequent enactment. However,
appropriations for capital outlays shall continue and remain valid
until fully spent, reverted or the project is completed. Reversions of
continuing appropriations shall not be allowed unless obligations
therefor have been fully paid or otherwise settled.
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The balances of continuing appropriations shall be reviewed as part
of the annual budget preparation and the sanggunian concerned
may approve, upon recommendation of the local chief executive, the
reversion of funds no longer needed in connection with the
activities funded by said continuing appropriations subject to the
provisions of this Section.
Section 323. Failure to Enact the Annual Appropriations. - In case
the sanggunian concerned fails to pass the ordinance authorizing
the annual appropriations at the beginning of the ensuing fiscal
year, it shall continue to hold sessions, without additional
remuneration for its members, until such ordinance is approved,
and no other business may be taken up during such sessions. If the
sanggunian still fails to enact such ordinance after ninety (90) days
from the beginning of the fiscal year, the ordinance authorizing the
appropriations of the preceding year shall be deemed reenacted and
shall remain in force and effect until the ordinance authorizing the
proposed appropriations is passed by the sanggunian concerned.
However, only the annual appropriations for salaries and wages of
existing positions, statutory and contractual obligations, and
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essential operating expenses authorized in the annual and
supplemental budgets for the preceding year shall be deemed
reenacted and disbursement of funds shall be in accordance
therewith.
In the implementation of such reenacted ordinance, the local
treasurer concerned shall exclude from the estimates of income for
the preceding fiscal year those realized from nonrecurring sources,
like national aids, proceeds from loans, sale of assets, prior year
adjustments, and other analogous sources of income. No ordinance
authorizing supplemental appropriations shall be passed in place of
the annual appropriations.
In case the revised income estimates be less than the aggregate
reenacted appropriations, the local treasurer concerned shall
accordingly advise the sanggunian concerned which shall, within
ten (10) days from the receipt of such advice, make the necessary
adjustments or reductions. The revised appropriations authorized
by the sanggunian concerned shall then be the basis for
disbursements.
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Section 324. Budgetary Requirements. - The budgets of local
government units for any fiscal year shall comply with the following
requirements:
(a) The aggregate amount appropriated shall not exceed the
estimates of income;
(b) Full provision shall be made for all statutory and contractual
obligations of the local government unit concerned: Provided,
however, That the amount of appropriations for debt servicing
shall not exceed twenty percent (20%) of the regular income of
the local government unit concerned;
(c) In the case of provinces, cities, and municipalities, aid to
component barangays shall be provided in amounts of not less
than One thousand pesos (P1,000.00) per barangay; and
(d) Five percent (5%) of the estimated revenue from regular
sources shall be set aside as an annual lump sum appropriation
for unforeseen expenditures arising from the occurrence of
calamities: Provided, however, That such appropriation shall be
used only in the area, or a portion thereof, of the local
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government unit or other areas declared by the President in a
state of calamity.
Section 325. General Limitations. - The use of the provincial, city,
and municipal funds shall be subject to the following limitations:
(a) The total appropriations, whether annual or supplemental,
for personal services of a local government unit for one (1)
fiscal year shall not exceed forty-five percent (45%) in the case
of first to third class provinces, cities and municipalities, and
fifty-five percent (55%) in the case of fourth class or lower, of
the total annual income from regular sources realized in the
next preceding fiscal year. The appropriations for salaries,
wages, representation and transportation allowances of
officials and employees of the public utilities and economic
enterprises owned, operated, and maintained by the local
government unit concerned shall not be included in the annual
budget or in the computation of the maximum amount for
personal services. The appropriations for the personal services
of such economic enterprises shall be charged to their
respective budgets;
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(b) No official or employee shall be entitled to a salary rate
higher than the maximum fixed for his position or other
positions of equivalent rank by applicable laws or rules and
regulations issued thereunder;
(c) No local fund shall be appropriated to increase or adjust
salaries or wages of officials and employees of the national
government, except as may be expressly authorized by law;
(d) In cases of abolition of positions and the creation of new
ones resulting from the abolition of existing positions in the
career service, such abolition or creation shall be made in
accordance with pertinent provisions of this code and the civil
service law, rules and regulations;
(e) Positions in the official plantilla for career positions which
are occupied by incumbents holding permanent appointments
shall be covered by adequate appropriations;
(f) No changes in designation or nomenclature of positions
resulting in a promotion or demotion in rank or increase or
decrease in compensation shall be allowed, except when the
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position is actually vacant, and the filling of such positions
shall be strictly made in accordance with the civil service law,
rules and regulations;
(g) The creation of new positions and salary increases or
adjustments shall in no case be made retroactive;
(h) The annual appropriations for discretionary purposes of the
local chief executive shall not exceed two percent (2%) of the
actual receipts derived from basic real property tax in the next
preceding calendar year. Discretionary funds shall be
disbursed only for public purposes to be supported by
appropriate vouchers and subject to such guidelines as may be
prescribed by law. No amount shall be appropriated for the
same purpose except as authorized under this Section.
Section 326. Review of Appropriation Ordinances of Provinces,
Highly-Urbanized Cities, Independent Component Cities, and
Municipalities within the Metropolitan Manila Area. - The Department
of Budget and Management shall review ordinances authorizing the
annual or supplemental appropriations of provinces, highly-
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within the Metropolitan Manila Area in accordance with the
immediately succeeding Section.
Section 327. Review of Appropriation Ordinances of Component
Cities and Municipalities. - The sangguniang panlalawigan shall
review the ordinance authorizing annual or supplemental
appropriations of component cities and municipalities in the same
manner and within the same period prescribed for the review of
other ordinances.
If within ninety (90) days from receipt of copies of such ordinance,
the sangguniang panlalawigan takes no action thereon, the same
shall be deemed to have been reviewed in accordance with law and
shall continue to be in full force and effect. If within the same period,
the sangguniang panlalawigan shall have ascertained that the
ordinance authorizing annual or supplemental appropriations has
not complied with the requirements set forth in this Title, the
sangguniang panlalawigan shall, within the ninety-day period
hereinabove prescribed declare such ordinance inoperative in its
entirety or in part. Items of appropriation contrary to limitations
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prescribed in this Title or in excess of the amounts prescribed
herein shall be disallowed or reduced accordingly.
The sangguniang panlalawigan shall within the same period advise
the sangguniang panlungsod or sangguniang bayan concerned
through the local chief executive of any action on the ordinance
under review. Upon receipt of such advice, the city or municipal
treasurer concerned shall not make further disbursements of funds
from any of the items of appropriation declared inoperative,
disallowed or reduced.
Section 328. Duration of Appropriation. - Appropriations for ordinary
administrative purposes not duly obligated shall terminate with the
fiscal year and all unexpended balances thereof shall be
automatically reverted on the thirty-first (31st) day of December of
each year to the general fund of the local government unit.
ARTICLE II
Barangay Budgets
Section 329. Barangay Funds. - Unless otherwise provided in this
Title, all the income of the barangay from whatever source shall
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accrue to its general fund and shall, at the option of the barangay
concerned, be kept as trust fund in the custody of the city or
municipal treasurer or be deposited in a bank, preferably
government-owned, situated in or nearest to its area of jurisdiction.
Such funds shall be disbursed in accordance with the provisions of
this Title. Ten percent (10%) of the general fund of the barangay
shall be set aside for the sangguniang kabataan.
Section 330. Submission of Detailed Statements of Income and
Expenditures for the Barangay Budgets. - On or before the fifteenth
(15th) day of September of each year, the barangay treasurer shall
submit to the punong barangay a statement covering the estimates
of income and expenditures for the ensuing fiscal year, based on a
certified statement issued by the city or municipal treasurer
covering the estimates of income from local sources for the
barangay concerned.
Section 331. Preparation of the Barangay Budget. -
(a) Upon receipt of the statement of income and expenditures
from the barangay treasurer, the punong barangay shall
prepare the barangay budget for the ensuing fiscal year in the
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manner and within the period prescribed in this Title and
submit the annual barangay budget to the sangguniang
barangay for legislative enactment.
(b) The total annual appropriations for personal services of a
barangay for one (1) fiscal year shall not exceed fifty-five
percent (55%) of the total annual income actually realized from
local sources during the next preceding fiscal year.
(c) The barangay budget shall likewise be subject to the same
budgetary requirements and limitations hereinabove
prescribed.
Section 332. Effectivity of Barangay Budgets. - The ordinance
enacting the annual budget shall take effect at the beginning of the
ensuing calendar year. An ordinance enacting a supplemental
budget, however, shall take effect upon its approval or on the date
fixed therein.
The responsibility for the execution of the annual and supplemental
budgets and the accountability therefor shall be vested primarily in
the punong barangay concerned.
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Section 333. Review of the Barangay Budget. -
(a) Within ten (10) days from its approval, copies of the
barangay ordinance authorizing the annual appropriations shall
be furnished the sangguniang panlungsod or the sangguniang
bayan, as the case may be, through the city or municipal
budget officer. The sanggunian concerned shall have the power
to review such ordinance in order to ensure that the provisions
of this Title are complied with. If within sixty (60) days after the
receipt of the ordinance, the sanggunian concerned takes no
action thereon, the same shall continue to be in full force and
effect. If within the same period, the sanggunian concerned
shall have ascertained that the ordinance contains
appropriations in excess of the estimates of the income duly
certified as collectible, or that the same has not complied with
the budgetary requirements set forth in this Title, the said
ordinance shall be declared inoperative in its entirety or in part.
Items of appropriation contrary to, or in excess of, any of the
general limitations or the maximum amount prescribed in this
Title shall be disallowed or reduced accordingly.
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(b) Within the period hereinabove fixed, the sangguniang
panlungsod or sangguniang bayan concerned shall return the
barangay ordinance, through the city or municipal budget
officer, to the punong barangay with the advice of action
thereon for proper adjustments, in which event, the barangay
shall operate on the ordinance authorizing annual
appropriations of the preceding fiscal year until such time that
the new ordinance authorizing annual appropriations shall have
met the objections raised. Upon receipt of such advice, the
barangay treasurer or the city or municipal treasurer who has
custody of the funds shall not make further disbursement from
any item of appropriation declared inoperative, disallowed, or
reduced.
Section 334. Barangay Financial Procedures. -
(a) The barangay treasurer shall collect all taxes, fees, and
other charges due and contributions accruing to the barangay
for which he shall issue official receipts, and shall deposit all
collections with the city or municipal treasury or in the
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within five (5) days after receipt thereof. He may collect real
property taxes and such other taxes as may be imposed by a
province, city or municipality that are due in his barangay only
after being deputized by the local treasurer concerned for the
purpose.
(b) The barangay treasurer may be authorized by the
sangguniang barangay to make direct purchases amounting to
not more than One thousand pesos (P1,000.00) at any time for
the ordinary and essential needs of the barangay. The petty
cash that the barangay treasurer may be authorized to hold for
the purpose shall not exceed twenty percent (20%) of the funds
available and to the credit of the barangay treasury.
(c) The financial records of the barangay shall be kept in the
office of the city or municipal accountant in simplified manner
as prescribed by the Commission on Audit. Representatives of
the Commission on Audit shall audit such accounts annually or
as often as may be necessary and make a report of the audit to
the sangguniang panlungsod or sangguniang bayan, as the
case may be. The Commission on Audit shall prescribe and put
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into effect simplified procedures for barangay finances within
six (6) months following the effectivity of this Code.
CHAPTER IV
Expenditures, Disbursements, Accounting and Accountability
Section 335. Prohibitions Against Expenditures for Religious or
Private Purposes. - No public money or property shall be
appropriated or applied for religious or private purposes.
Section 336. Use of Appropriated Funds and Savings. - Funds shall
be available exclusively for the specific purpose for which they have
been appropriated. No ordinance shall be passed authorizing any
transfer of appropriations from one item to another. However, the
local chief executive or the presiding officer of the sanggunian
concerned may, by ordinance, be authorized to augment any item in
the approved annual budget for their respective offices from savings
in other items within the same expense class of their respective
appropriations.
Section 337. Restriction Upon Limit of Disbursements. -
Disbursements in accordance with appropriations in the approved
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annual budget may be made from any local fund in the custody of
the treasurer, but the total disbursements from any local fund shall
in no case exceed fifty percent (50%) of the uncollected estimated
revenue accruing to such local fund in addition to the actual
collections: Provided, however, That no cash overdraft in any local
fund shall be incurred at the end of the fiscal year.
In case of emergency arising from a typhoon, earthquake, or any
other calamity, the sanggunian concerned may authorize the local
treasurer to continue making disbursements from any local fund in
his possession in excess of the limitations herein provided, but only
for such purposes and amounts included in the approved annual
budgets.
Any overdraft which may be incurred at the end of the year in any
local fund by virtue of the provisions hereof shall be covered with
the first collections of the immediately succeeding fiscal year
accruing to such local fund.
Section 338. Prohibitions Against Advance Payments. - No money
shall be paid on account of any contract under which no services
have been rendered or goods delivered.

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Section 339. Cash Advances. - No cash advance shall be granted to
any local official or employee, elective or appointive, unless made in
accordance with the rules and regulations as the Commission on
Audit may prescribe.
Section 340. Persons Accountable for Local Government Funds. -
Any officer of the local government unit whose duty permits or
requires the possession or custody of local government funds shall
be accountable and responsible for the safekeeping thereof in
conformity with the provisions of this Title. Other local officers who,
though not accountable by the nature of their duties, may likewise
be similarly held accountable and responsible for local government
funds through their participation in the use or application thereof.
Section 341. Prohibitions Against Pecuniary Interest. - Without
prejudice to criminal prosecution under applicable laws, any local
treasurer, accountant, budget officer, or other accountable local
officer having any pecuniary interest, direct or indirect, in any
contract, work or other business of the local government unit of
which he is an accountable officer shall be administratively liable
therefor.
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Section 342. Liability for Acts Done Upon Direction of Superior
Officer, or Upon Participation of Other Department Heads or Officers
of Equivalent Rank. - Unless he registers his objection in writing, the
local treasurer, accountant, budget officer, or other accountable
officer shall not be relieved of liability for illegal or improper use or
application or deposit of government funds or property by reason of
his having acted upon the direction of a superior officer, elective or
appointive, or upon participation of other department heads or
officers of equivalent rank. The superior officer directing, or the
department head participating in such illegal or improper use or
application or deposit of government funds or property, shall be
jointly and severally liable with the local treasurer, accountant,
budget officer, or other accountable officer for the sum or property
so illegally or improperly used, applied or deposited.
Section 343. Prohibition Against Expenses for Reception and
Entertainment. - No money shall be appropriated, used, or paid for
entertainment or reception except to the extent of the representation
allowances authorized by law or for the reception of visiting
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dignitaries of foreign governments or foreign missions, or when
expressly authorized by the President in specific cases.
Section 344. Certification, and Approval of, Vouchers. - No money
shall be disbursed unless the local budget officer certifies to the
existence of appropriation that has been legally made for the
purpose, the local accountant has obligated said appropriation, and
the local treasurer certifies to the availability of funds for the
purpose. Vouchers and payrolls shall be certified to and approved
by the head of the department or office who has administrative
control of the fund concerned, as to validity, propriety, and legality
of the claim involved. Except in cases of disbursements involving
regularly recurring administrative expenses such as payrolls for
regular or permanent employees, expenses for light, water,
telephone and telegraph services, remittances to government
creditor agencies such as GSIS, SSS, LDP, DBP, National Printing
Office, Procurement Service of the DBM and others, approval of the
disbursement voucher by the local chief executive himself shall be
required whenever local funds are disbursed.
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In cases of special or trust funds, disbursements shall be approved
by the administrator of the fund.
In case of temporary absence or incapacity of the department head
or chief of office, the officer next-in-rank shall automatically perform
his function and he shall be fully responsible therefor.
Section 345. Officials Authorized to Draw Checks in Settlement of
Obligations. - Checks in obligations shall be drawn by the local
treasurer and countersigned by the local administrator.
In case of temporary absence or incapacity of the foregoing
officials, these duties shall devolve upon their immediate assistants.
Section 346. Disbursements of Local Funds and Statement of
Accounts. - Disbursements shall be made in accordance with the
ordinance authorizing the annual or supplemental appropriations
without the prior approval of the sanggunian concerned. Within
thirty (30) days after the close of each month, the local accountant
shall furnish the sanggunian with such financial statements as may
be prescribed by the Commission on Audit. In the case of the year-
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end statement of accounts, the period shall be sixty (60) days after
the thirty-first (31st) of December.
Section 347. Rendition of Accounts. - Local treasurers, accountants
and other local accountable officers shall render their accounts
within such time, in such form, style, and content and under such
regulations as the Commission on Audit may prescribe.
Provincial, city, and municipal auditors shall certify the balances
arising in the accounts settled by them to the Chairman of the
Commission on Audit and to the local treasurer, accountant, and
other accountable officers. Copies of the certification shall be
prepared and furnished other local officers who may be held jointly
and severally liable for any loss or illegal, improper or unauthorized
use or misappropriation of local funds or property.
Section 348. Auditorial Visitation. - The books, accounts, papers,
and cash of local treasurer, accountant, budget officer, or other
accountable officers shall at all times be open for inspection of the
Commission on Audit or its duly authorized representative.
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In case an examination of the accounts of a local treasurer discloses
a shortage in cash which should be on hand, it shall be the duty of
the examining officer to seize the office and its contents, notify the
Commission on Audit, the local chief executive concerned, and the
local accountant. Thereupon, the examining officer shall
immediately turn over to the accountable officer next-in-rank in the
local treasury service, unless the said officer is likewise under
investigation, the office of the treasurer and its contents, and close
and render his accounts on the date of turnover. In case the
accountable officer next in rank is under investigation, the auditor
shall take full possession of the office and its contents, close and
render his accounts on the date of taking possession, and
temporarily continue the public business of such office until such
time that the local treasurer is restored or a successor has been
duly designated. The local treasurer or accountable officer found
with such shortage shall be automatically suspended from office.
Section 349. Accounting for Revenues. - Estimated revenues which
remain unrealized at the close of the fiscal year shall not be booked
or credited to the unappropriated surplus or any other account.
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Section 350. Accounting for Obligations. - All lawful expenditures
and obligations incurred during a fiscal year shall be taken up in the
accounts of that year.
Section 351. General Liability for Unlawful Expenditures. -
Expenditures of funds or use of property in violation of this Title and
other laws shall be a personal liability of the official or employee
responsible therefor.
Section 352. Posting of the Summary of Income and Expenditures. -
Local treasurers, accountants, budget officers, and other
accountable officers shall, within thirty (30) days from the end of the
fiscal year, post in at least three (3) publicly accessible and
conspicuous places in the local government unit a summary of all
revenues collected and funds received including the appropriations
and disbursements of such funds during the preceding fiscal year.
Section 353. The Official Fiscal Year. - The official fiscal year of local
government units shall be the period beginning with the first day of
January and ending with the thirty-first day of December of the same
year.
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Section 354. Administrative Issuances; Budget Operations Manual. -
The Secretary of Budget and Management jointly with the Chairman
of the Commission on Audit shall, within one (1) year from the
effectivity of this Code, promulgate a Budget Operations Manual for
local government units to improve and systematize methods,
techniques, and procedures employed in budget preparation,
authorization, execution, and accountability.
TITLE VI
Property and Supply Management in the Local Government Units
Section 355. Scope. - This Title shall govern the procurement, care,
utilization, custody, and disposal of supplies, as defined herein, by
local government units and the other aspects of supply
management at the local levels.
Section 356. General Rule in Procurement or Disposal. - Except as
otherwise provided herein, acquisition of supplies by local
government units shall be through competitive public bidding.
Supplies which have become unserviceable or no longer needed
shall be sold, whenever applicable, at public auction, subject to
applicable rules and regulations.

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Section 357. Definition of Terms. - When used in this Title, the term
(a) "Lowest Complying and Responsible Bid" refers to the
proposal of one who offers the lowest price, meets all the
technical specifications and requirements of the supplies
desired and, as a dealer in the line of supplies involved,
maintains a regular establishment, and has complied
consistently with previous commitments;
(b) "Suitable Substitute" refers to that kind of article which
would serve substantially the same purpose or produce
substantially the same results as the brand, type, or make of
article originally desired or requisitioned;
(c) "Supplies" includes everything, except real property, which
may be needed in the transaction of public business or in the
pursuit of any undertaking, project, or activity, whether in the
nature of equipment, furniture, stationary materials for
construction or personal property of any sort, including non-
personal or contractual services such as the repair and
maintenance of equipment and furniture, as well as trucking,
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(d) "Terms and Conditions" refer to other requirements not
affecting the technical specifications and requirements of the
required supplies desired such as bonding, terms of delivery
and payment, and related preferences.
Section 358. Requirement of Requisition. - Any order for supplies
shall be filled by the provincial or city general services officer or the
municipal or barangay treasurer concerned, as the case may be, for
any office or department of a local government unit only upon
written requisition as hereinafter provided.
Section 359. Officers Having Authority to Draw Requisitions. -
Requisitions shall be prepared by the head of office or department
needing the supplies, who shall certify as to their necessity for
official use and specify the project or activity where the supplies are
to be used.
Section 360. Certification by the Local Budget Officer, Accountant,
and Treasurer. - Every requisition must be accompanied by a
certificate signed by the local budget officer, the local accountant,
and the local treasurer showing that an appropriation therefor
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exists, the estimated amount of such expenditure has been
obligated, and the funds are available for the purpose, respectively.
Section 361. Approval of Requisitions. - Approval of the requisition
by the head of office or department concerned who has
administrative control of the appropriation against which the
proposed expenditure is chargeable is deemed sufficient, except in
case of requisition for supplies to be carried in stock which shall be
approved by the local chief executive concerned: Provided, That
such supplies are listed or included in the annual procurement plan
and the maximum quantity thereof does not exceed the estimated
consumption corresponding to a programmed three-month period:
Provided, further, That nothing herein contained shall be held as
authorizing the purchase of furniture and equipment for stock
purposes.
Section 362. Call for Bids. - When procurement is to be made by
local government units, the provincial or city general services
officer or the municipal or barangay treasurer shall call bids for
open public competition. The call for bids shall show the complete
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and shall embody all terms and conditions of participation and
award, terms of delivery and payment, and all other covenants
affecting the transaction. In all calls for bids, the right to waive any
defect in the tender as well as the right to accept the bid most
advantageous to the government shall be reserved. In no case,
however, shall failure to meet the specifications or technical
requirements of the supplies desired be awarded.
Section 363. Publication of Call for Bids. - The call for bids shall be
given the widest publicity possible, sending, by mail or otherwise,
any known prospective participant in the locality, of copies of the
call and by posting copies of the same in at least three (3) publicly
accessible and conspicuous places in the provincial capitol or city,
municipal, or barangay hall, as the case may be.
The notice of the bidding may likewise be published in a newspaper
of general circulation in the territorial jurisdiction of the local
government unit concerned when the provincial or city general
services officer or the municipal or barangay treasurer, as the case
may be, deems it necessary in order to obtain the lowest
responsible and complying bid.

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The opening of bids shall only be made in the presence of the
provincial or city auditor or his duly authorized representative who
shall initial and secure copies of the bids and certify the abstract of
the bidding.
Section 364. The Committee on Awards. - There shall be in every
province, city or municipality a committee on awards to decide the
winning bids and questions of awards on procurement and disposal
of property.
The Committee on Awards shall be composed of the local chief
executive as chairman, the local treasurer, the local accountant, the
local budget officer, the local general services officer, and the head
of office or department for whose use the supplies are being
procured, as members. In case a head of office or department would
sit in a dual capacity, a member of the sanggunian elected from
among its members shall sit as a member. The committee on awards
at the barangay level shall be the sangguniang barangay. No
national official shall sit as a member of the committee on awards.
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The results of the bidding shall be made public by conspicuously
posting the same in the provincial capitol or city, municipal, or
barangay hall.
Section 365. Rule on Awards. - Awards in the procurement of
supplies shall be given to the lowest complying and responsible bid
which meets all the terms and conditions of the contract or
undertaking.
Section 366. Procurement Without Public Bidding. - Procurement of
supplies may be made without the benefit of public bidding under
any of the following modes:
(a) Personal canvass of responsible merchants;
(b) Emergency purchase;
(c) Negotiated purchase;
(d) Direct purchase from manufacturers or exclusive
distributors; and
(e) Purchase from other government entities.
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Section 367. Procurement through Personal Canvass. - Upon
approval by the Committee on Awards, procurement of supplies
may be effected after personal canvass of at least three (3)
responsible suppliers in the locality by a committee of three (3)
composed of the local services officer or the municipal or barangay
treasurer, as the case may be, the local accountant, and the head of
office or department for whose use the supplies are being procured.
The award shall be decided by the Committee on Awards.
Purchases under this Section shall not exceed the amounts
specified hereunder for all items in any one (1) month for each local
government unit:
Provinces and Cities and Municipalities within the Metropolitan
Manila Area:
First and Second Class - One hundred fifty thousand pesos
(P150,000.00)
Third and Fourth Class - One hundred thousand pesos
(P100,000.00)
Fifth and Sixth Class - Fifty thousand pesos (P50,000.00)

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Municipalities:
First Class - Sixty thousand pesos (P60,000.00)
Second and Third Class - Forty thousand pesos (P40,000.00)
Fourth Class and Below - Twenty thousand pesos (P20,000.00)
Section 368. Emergency Purchase. - In cases of emergency where
the need for the supplies is exceptionally urgent or absolutely
indispensable and only to prevent imminent danger to, or loss of,
life or property, local government units may, through the local chief
executive concerned, make emergency purchases or place repair
orders, regardless of amount, without public bidding. Delivery of
purchase orders or utilization of repair orders pursuant to this
Section shall be made within ten (10) days after placement of the
same. Immediately after the emergency purchase or repair order is
made, the chief of office or department making the emergency
purchase or repair order shall draw a regular requisition to cover the
same which shall contain the following:
(a) A complete description of the supplies acquired or the work
done or to be performed;
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(b) By whom furnished or executed;
(c) Date of placing the order and the date and time of delivery or
execution;
(d) The unit price and the total contract price;
(e) A brief and concise explanation of the circumstances why
procurement was of such urgency that the same could not be
done through the regular course without involving danger to, or
loss of, life or property;
(f) A certification of the provincial or city general services or the
municipal or barangay treasurer, as the case may be, to the
effect that the price paid or contracted for was the lowest at the
time of procurement; and
(g) A certification of the local budget officer as to the existence
of appropriations for the purpose, the local accountant as to the
obligation of the amount involved, and the local treasurer as to
the availability of funds. The goods or services procured under
this Section must be utilized or availed of within fifteen (15)
days from the date of delivery or availability.

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Without prejudice to criminal prosecution under applicable laws, the
local chief executive, the head of department, or the chief of office
making the procurement shall be administratively liable for any
violation of this Section and shall be a ground for suspension or
dismissal from service.
Section 369. Negotiated Purchase. -
(a) In cases where public biddings have failed for two (2)
consecutive times and no suppliers have qualified to participate
or win in the biddings, local government units may, through the
local chief executive concerned, undertake the procurement of
supplies by negotiated purchase, regardless of amount, without
public bidding: Provided, however, That the contract covering
the negotiated purchase shall be approved by the sanggunian
concerned. Delivery of purchase orders or utilization of repair
orders pursuant to this Section shall be made within seven (7)
days after placement of the same. Immediately after the
negotiated purchase or repair order is made, the local chief
executive concerned shall draw a regular requisition to cover
the same which shall contain the following:

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(1) A complete description of the supplies acquired or the
work done or to be performed;
(2) By whom furnished or executed;
(3) Date of placing the order and the date and time of
delivery or execution;
(4) The unit price and the total contract price;
(5) A certification of the provincial or city general services
of the municipal or barangay treasurer, as the case may
be, to the effect that the price paid or contracted for was
the lowest at the time of procurement;
(6) A certification to the effect that the price paid or
contracted for was the lowest at the time of procurement;
and
(7) A certification of the local budget officer as to the
existence of appropriations for the purpose, the local
accountant as to the obligation of the amount involved,
and the local treasurer as to the availability of funds.
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(b) In case of repeat orders for regular supplies, procurement
may be made by negotiated purchase: Provided, That the repeat
order is made within three (3) months from the last
procurement of the same item: Provided, further, That the same
terms and conditions of sale are obtained for the said repeat
order.
Section 370. Procurement from Duly Licensed Manufacturer. -
Procurement may be made directly from duly licensed
manufacturers in cases of supplies of Philippine manufacture or
origin and in case there are two (2) or more manufacturers shall be
conducted to obtain the lowest price for the quality of the said
supplies.
Section 371. Procurement from Exclusive Philippine Agents or
Distributors. - Procurement may, in the case of supplies of foreign
origin, preferably be made directly from the exclusive or reputable
Philippine distributors or agents, subject to the following
conditions:
(a) That the Philippine distributor has no subdealers selling at
lower prices; and

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(b) That no suitable substitutes or substantially the same
quality are available at lower prices.
Section 372. Procurement from Government Entities. - Procurement
may be made directly from the government entities producing the
required supplies, including units or agencies of foreign
governments with which the Philippines maintains diplomatic
relations. In the latter case, prior authority from the Office of the
President shall be required.
Section 373. Annual Procurement Program. -
(a) On or before the fifteenth (15th) day of July each year, the
local chief executive shall prepare an annual procurement
program for the ensuing fiscal year which shall contain an
itemized list of the estimated quantity of supplies needed for
such year, a complete description thereof as to kind, quality,
estimated cost, and balance on hand: Provided, however, That
the total estimated cost of the approved annual procurement
program shall not exceed the total appropriations authorized
for the acquisition of supplies. The local government units may
augment the supplies and equipment provided by the Supreme

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Court to the lower courts located in their respective
jurisdictions.
(b) Except in emergency cases or where urgent indispensable
needs could not have been reasonably anticipated, no purchase
of supplies shall be made unless included in. or covered by, the
approved procurement program. (c) The conversion of excess
cash into supplies stock is hereby prohibited except to the
extent of the kind and quantity specified in the approved annual
procurement plan. A violation of this Section shall be a ground
for suspension or dismissal of any political or employee
responsible therefor.
Section 374. Establishment of an Archival System. - Every local
government unit shall provide for the establishment of archival
system to ensure the safety and protection of all government
property, public documents or records such as records of births,
marriages, property inventory, land assessments, land ownership,
tax payments, tax accounts, and business permits, and such other
records or documents of public interest in the various departments
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and offices of the provincial, city, or municipal government
concerned.
Section 375. Primary and Secondary Accountability for Government
Property. -
(a) Each head of department or office of a province, city,
municipality or barangay shall be primarily accountable for all
government property assigned or issued to his department or
office. The person or persons entrusted with the possession or
custody of government property under the accountability of any
head of department or office shall be immediately accountable
to such officer.
(b) The head of a department or office primarily accountable for
government property may require any person in possession of
the property or having custody and control thereof under him to
keep such records and make reports as may be necessary for
his own information and protection.
(c) Buildings and other physical structures shall be under the
accountability and responsibility of the provincial or city
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general services officer or the municipal mayor or punong
barangay, as the case may be. (d) Every officer primarily
accountable for government property shall keep a complete
record of all properties under his charge and render his
accounts therefor semiannually to the provincial or city general
services officer or the municipal mayor or punong barangay, as
the case may be.
Section 376. Responsibility for Proper Use and Care of Government
Property. - The person in actual physical possession of government
property or entrusted with its custody and control shall be
responsible for its proper use and care and shall exercise due
diligence in the utilization and safekeeping thereof.
Section 377. Measure of Liability of Persons Accountable for
Government Property. -
(a) The person immediately accountable for government
property shall be liable for its money value in case of the illegal,
improper or unauthorized use or misapplication thereof, by
himself or any other person for whose acts he may be
responsible, and he shall be liable for all loss, damage, or

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deterioration occasioned by negligence in the keeping or use of
property unless it is proved that he has exercised due diligence
and care in the utilization and safekeeping thereof.
(b) Unless he registers his objection in writing, an accountable
person shall not be relieved from liability by reason of his
having acted under the direction of a superior officer in using
property with which he is chargeable; but the officer directing
any illegal, unauthorized or improper use of property shall first
be required to answer therefor.
(c) In cases of loss, damage, or deterioration of government
property arising from, or attributable to, negligence in security,
the head of the security agency shall be held liable therefor.
Section 378. Credit for Loss Occurring in Transit or Due to Casualty.
- When a loss of government property occurs while the same is in
transit or is caused by fire, theft, force majeure, or other casualty,
the officer accountable therefor or having custody thereof shall
immediately notify the provincial or city auditor concerned within
thirty (30) days from the date the loss occurred or for such longer
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be, may in the particular case allow, and he shall present his
application for relief, with the available evidence in support thereof.
An officer who fails to comply with this requirement shall not be
relieved of liability or allowed credit for any such loss in the
settlement of his accounts.
A provincial, city or municipal auditor shall not allow credit for these
losses unless so expressly authorized by the Chairman of the
Commission on Audit, to the exercised only if the loss is not in
excess of fifty thousand pesos (P50,000.00). In any case when the
allowance of credit is not within the competence of the provincial,
city or municipal auditor, the application and evidence, with the
recommendation of the auditor concerned, shall be forwarded to the
Chairman of the Commission on Audit for his appropriate action.
Section 379. Property Disposal. - When property of any local
government unit has become unserviceable for any cause or is no
longer needed, it shall upon application of the officer accountable
therefor, be inspected and appraised by the provincial, city or
municipal auditor, as the case may be, or his duly authorized
representative or that of the Commission on Audit and, if found

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valueless or unusable, shall be destroyed in the presence of the
inspecting officer.
If found valuable, the same shall be sold at public auction to the
highest bidder under the supervision of the committee on awards
and in the presence of the provincial, city or municipal auditor or his
duly authorized representative. Notice of the public auction shall be
posted in at least three (3) publicly accessible and conspicuous
places, and if the acquisition cost exceeds One hundred thousand
pesos (P100,000.00) in the case of provinces and cities, and Fifty
thousand pesos (P50,000.00) in the case of municipalities, notice of
auction shall be published at least two (2) times within a reasonable
period in a newspaper of general circulation in the locality.
Section 380. Negotiated Sale of Property. - Property no longer
needed may also be disposed of at a private sale at such price as
may be determined by the committee on awards, subject to the
approval of the Commission on Audit or its duly authorized
representative when the acquisition or transfer cost of the property
exceeds Fifty thousand pesos (P50,000.00) in the case of provinces
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and cities, and Twenty-five thousand pesos (P25,000.00) in the case
of municipalities and barangays.
In case of real property, the disposal shall be subject to the approval
of the Commission on Audit regardless of the value or cost
involved.
Section 381. Transfer Without Cost. - Property which has become
unserviceable or is no longer needed may be transferred without
cost to another office, agency, subdivision or instrumentality of the
national government or another local government unit at an
appraised valuation determined by the local committee on awards.
Such transfer shall be subject to the approval of the sanggunian
concerned making the transfer and by the head of the office,
agency, subdivision, instrumentality or local government unit
receiving the property.
Section 382. Tax Exemption Privileges of Local Government Units. -
Local government units shall be exempt from the payment of duties
and taxes for the importation of heavy equipment or machineries
which shall be used for the construction, improvement, repair, and
maintenance of roads, bridges and other infrastructure projects, as

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well as garbage trucks, fire trucks, and other similar equipment:
Provided, however, That such equipment or machineries shall not
be disposed of, either by public auction or negotiated sale as
hereinabove provided, within five (5) years from the importation
thereof. In case the machinery or equipment is sold within the five-
year period, the purchasers or recipients shall be considered the
importers thereof, and shall be liable for duties and taxes computed
on the book value of such importation.
Section 383. Implementing Rules and Regulations. - The Chairman
of the Commission on Audit shall promulgate the rules and
regulations necessary to effectively implement the provisions of this
Title, including requirements as to testing, inspection, and
standardization of supply and property.
BOOK III
LOCAL GOVERNMENT UNITS
TITLE I
THE BARANGAY
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CHAPTER I
Role and Creation of the Barangay
Section 384. Role of the Barangay. - As the basic political unit, the
barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects, and activities in the
community, and as a forum wherein the collective views of the
people may be expressed, crystallized and considered, and where
disputes may be amicably settled.
Section 385. Manner of Creation. - A barangay may be created,
divided, merged, abolished, or its boundary substantially altered, by
law or by an ordinance of the sangguniang panlalawigan or
panlungsod, subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the COMELEC in the local government
unit or units directly affected within such period of time as may be
determined by the law or ordinance creating said barangay. In the
case of the creation of barangays by the sangguniang panlalawigan,
the recommendation of the sangguniang bayan concerned shall be
necessary.
Section 386. Requisites for Creation. -

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(a) A barangay may be created out of a contiguous territory
which has a population of at least two thousand (2,000)
inhabitants as certified by the National Statistics Office except
in cities and municipalities within Metro Manila and other
metropolitan political subdivisions or in highly urbanized cities
where such territory shall have a certified population of at least
five thousand (5,000) inhabitants: Provided, That the creation
thereof shall not reduce the population of the original barangay
or barangays to less than the minimum requirement prescribed
herein.
To enhance the delivery of basic services in the indigenous
cultural communities, barangays may be created in such
communities by an Act of Congress, notwithstanding the above
requirement.
(b) The territorial jurisdiction of the new barangay shall be
properly identified by metes and bounds or by more or less
permanent natural boundaries. The territory need not be
contiguous if it comprises two (2) or more islands.
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(c) The governor or city mayor may prepare a consolidation
plan for barangays, based on the criteria prescribed in this
Section, within his territorial jurisdiction. The plan shall be
submitted to the sangguniang panlalawigan or sangguniang
panlungsod concerned for appropriate action.
In the case of municipalities within the Metropolitan Manila Area
and other metropolitan political subdivisions, the barangay
consolidation plan shall be prepared and approved by the
sangguniang bayan concerned.
CHAPTER II
Barangay Officials and Offices
Section 387. Chief Officials and Offices. -
(a) There shall be in each barangay a punong barangay, seven
(7) sangguniang barangay members, the sangguniang kabataan
chairman, a barangay secretary, and a barangay treasurer.
(b) There shall also be in every barangay a lupong
tagapamayapa. The sangguniang barangay may form
community brigades and create such other positions or offices

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as may be deemed necessary to carry out the purposes of the
barangay government in accordance with the needs of public
service, subject to the budgetary limitations on personal
services prescribed under Title Five, Book II of this Code.
Section 388. Persons in Authority. - For purposes of the Revised
Penal Code, the punong barangay, sangguniang barangay members,
and members of the lupong tagapamayapa in each barangay shall
be deemed as persons in authority in their jurisdictions, while other
barangay officials and members who may be designated by law or
ordinance and charged with the maintenance of public order,
protection and security of life and property, or the maintenance of a
desirable and balanced environment, and any barangay member
who comes to the aid of persons in authority, shall be deemed
agents of persons in authority.
CHAPTER III
The Punong Barangay
Section 389. Chief Executive: Powers, Duties, and Functions. -
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(a) The punong barangay, as the chief executive of the
barangay government, shall exercise such powers and perform
such duties and functions, as provided by this Code and other
laws.
(b) For efficient, effective and economical governance, the
purpose of which is the general welfare of the barangay and its
inhabitants pursuant to Section 16 of this Code, the punong
barangay shall:
(1) Enforce all laws and ordinances which are applicable
within the barangay;
(2) Negotiate, enter into, and sign contracts for and in
behalf of the barangay, upon authorization of the
sangguniang barangay;
(3) Maintain public order in the barangay and, in pursuance
thereof, assist the city or municipal mayor and the
sanggunian members in the performance of their duties
and functions;
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(4) Call and preside over the sessions of the sangguniang
barangay and the barangay assembly, and vote only to
break a tie;
(5) Upon approval by a majority of all the members of the
sangguniang barangay, appoint or replace the barangay
treasurer, the barangay secretary, and other appointive
barangay officials;
(6) Organize and lead an emergency group whenever the
same may be necessary for the maintenance of peace and
order or on occasions of emergency or calamity within the
barangay;
(7) In coordination with the barangay development council,
prepare the annual executive and supplemental budgets of
the barangay;
(8) Approve vouchers relating to the disbursement of
barangay funds;
(9) Enforce laws and regulations relating to pollution
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(10) Administer the operation of the katarungang
pambarangay in accordance with the provisions of this
Code;
(11) Exercise general supervision over the activities of the
sangguniang kabataan;
(12) Ensure the delivery of basic services as mandated
under Section 17 of this Code;
(13) Conduct an annual palarong barangay which shall
feature traditional sports and disciplines included in
national and international games, in coordination with the
Department of Education, Culture and Sports;
(14) Promote the general welfare of the barangay; and
(15) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or
ordinance.
(b) In the performance of his peace and order functions. the
punong barangay shall be entitled to possess and carry the
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necessary firearm within his territorial jurisdiction, subject to
appropriate rules and regulations.
CHAPTER IV
The Sangguniang Barangay
Section 390. Composition. - The sangguniang barangay, the
legislative body of the barangay, shall be composed of the punong
barangay as presiding officer, and the seven (7) regular
sangguniang barangay members elected at large and sangguniang
kabataan chairman, as members.
Section 391. Powers, Duties, and Functions. -
(a) The sangguniang barangay, as the legislative body of the
barangay, shall:
(1) Enact ordinances as may be necessary to discharge the
responsibilities conferred upon it by law or ordinance and
to promote the general welfare of the inhabitants therein;
(2) Enact tax revenue ordinances, subject to the limitations
imposed in this Code;
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(3) Enact annual and supplemental budgets in accordance
with the provisions of this Code;
(4) Provide for the construction and maintenance of
barangay facilities and other public works projects
chargeable to the general fund of the barangay or such
other funds actually available for the purpose;
(5) Submit to the sangguniang panlungsod or sangguniang
bayan such suggestions or recommendations as it may
see fit for the improvement of the barangay or for the
welfare of the inhabitants thereof;
(6) Assist in the establishment, organization, and
promotion of cooperative enterprises that will improve the
economic condition and well-being of the residents;
(7) Regulate the use of multi-purpose halls, multi-purpose
pavements, grain or copra dryers, patios and other post-
harvest facilities, barangay waterworks, barangay markets,
parking areas or other similar facilities constructed with
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government funds within the jurisdiction of the barangay
and charge reasonable fees for the use thereof;
(8) Solicit or accept monies, materials and voluntary labor
for specific public works and cooperative enterprises of
the barangay from residents, land owners, producers and
merchants in the barangay; monies from grants-in-aid,
subsidies, contributions, and revenues made available to
the barangays from national, provincial, city or municipal
funds; and monies from other private agencies and
individuals: Provided, however, That monies or properties
donated by private agencies and individuals for specific
purposes shall accrue to the barangay as trust fund;
(9) Solicit or accept, in any or all the foregoing public
works and cooperative enterprises, such cooperation as is
made available by national, provincial, city, or municipal
agencies established by law to render financial, technical,
and advisory assistance to barangays and to barangay
residents: Provided, however, That in soliciting or
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need not pledge any sum of money for expenditure in
excess of amounts currently in the barangay treasury or
encumbered for other purposes;
(10) Provide compensation, reasonable allowances or per
diems as well as travel expenses for sangguniang
barangay members and other barangay officials, subject to
the budgetary limitations prescribed under Title Five, Book
II of this Code: Provided, however, That no increase in the
compensation or honoraria of the sangguniang barangay
members shall take effect until after the expiration of the
full term of all members of the sangguniang barangay
approving such increase;
(11) Hold fund-raising activities for barangay projects
without the need of securing permits from any national or
local office or agency. The proceeds from such activities
shall be tax-exempt and shall accrue to the general fund of
the barangay: Provided, That in the appropriation thereof,
the specific purpose for which such fund-raising activity
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That no fund-raising activities shall be held within a period
of sixty (60) days immediately preceding and after a
national or local election, recall, referendum, or plebiscite:
Provided, finally, That said fund-raising activities shall
comply with national policy standards and regulations on
morals, health, and safety of the persons participating
therein. The sangguniang barangay, through the punong
barangay, shall render a public accounting of the funds
raised at the completion of the project for which the fund-
raising activity was undertaken;
(12) Authorize the punong barangay to enter into contracts
in behalf of the barangay, subject to the provisions of this
Code;
(13) Authorize the barangay treasurer to make direct
purchases in an amount not exceeding One thousand
pesos (P1,000.00) at any one time for the ordinary and
essential administrative needs of the barangay;
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(14) Prescribe fines in amounts not exceeding One
thousand pesos (P1,000.00) for violation of barangay
ordinances;
(15) Provide for the administrative needs of the lupong
tagapamayapa and the pangkat ng tagapagkasundo;
(16) Provide for the organization of community brigades,
barangay tanod, or community service units as may be
necessary;
(17) Organize regular lectures, programs, or fora on
community problems such as sanitation, nutrition, literacy,
and drug abuse, and convene assemblies to encourage
citizen participation in government;
(18) Adopt measures to prevent and control the
proliferation of squatters and mendicants in the barangay;
(19) Provide for the proper development and welfare of
children in the barangay by promoting and supporting
activities for the protection and total development of
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(20) Adopt measures towards the prevention and
eradication of drug abuse, child abuse, and juvenile
delinquency;
(21) Initiate the establishment of a barangay high school,
whenever feasible, in accordance with law;
(22) Provide for the establishment of a non-formal
education center in the barangay whenever feasible, in
coordination with the Department of Education, Culture
and Sports;
(23) Provide for the delivery of basic services; and
ordinance.
Section 392. Other Duties of Sangguniang Barangay Members. - In
addition to their duties as members of the sangguniang barangay,
sangguniang barangay members may:
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(a) Assist the punong barangay in the discharge of his duties
and functions;
(b) Act as peace officers in the maintenance of public order and
safety; and
(c) Perform such other duties and functions as the punong
barangay may delegate.
Section 393. Benefits of Barangay Officials. -
(a) Barangay officials, including barangay tanods and members
of the lupong tagapamayapa, shall receive honoraria,
allowances, and such other emoluments as may be authorized
by law or barangay, municipal or city ordinance in accordance
with the provisions of this Code, but in no case shall it be less
than One thousand pesos (P1,000.00) per month for the punong
barangay and Six hundred pesos (P600.00) per month for the
sangguniang barangay members, barangay treasurer, and
barangay secretary: Provided, however, That the annual
appropriations for personal services shall be subject to the
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budgetary limitations prescribed under Title Five, Book II of this
Code;
(b) The punong barangay, the sangguniang barangay members,
the barangay treasurer, and the barangay secretary shall also:
(1) Be entitled to Christmas bonus of at least One
thousand pesos (P1,000.00) each, the funds for which shall
be taken from the general fund of the barangay or from
such other funds appropriated by the national government
for the purpose;
(2) Be entitled, during their incumbency, to insurance
coverage which shall include, but shall not be limited to
temporary and permanent disability, double indemnity,
accident insurance, death and burial benefits, in
accordance with Republic Act Numbered Sixty-nine
hundred forty-two (R.A. No. 6942), entitled "An Act
Increasing the Insurance Benefits of Local Government
Officials and Providing Funds Therefor";
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(3) Be entitled to free medical care including subsistence,
medicines, and medical attendance in any government
hospital or institution: Provided, That such hospital care
shall include surgery or surgical expenses, medicines, X-
rays, laboratory fees, and other hospital expenses;
In case of extreme urgency where there is no available
government hospital or institution, the barangay official
attendance to the nearest private clinic, hospital or
institution and the expenses not exceeding Five thousand
pesos (P5,000.00) that may be incurred therein shall be
chargeable against the funds of the barangay concerned;
(4) Be exempted during their incumbency from paying
tuition and matriculation fees for their legitimate
dependent children attending state colleges or
universities. He may likewise avail of such educational
benefits in a state college or university located within the
province or city to which the barangay belongs; and
(5) Be entitled to appropriate civil service eligibility on the
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pursuant to the rules and regulations issued by the Civil
Service Commission.
(c) Elective barangay officials shall have preference in
appointments to any government position or in any
government-owned or controlled corporations, including their
subsidiaries, after their tenure of office, subject to the requisite
qualifications and the provisions of the immediately preceding
paragraph.
(d) All duly appointed members of the barangay tanod brigades,
or their equivalent, which shall number not more than twenty
(20) in each barangay, shall be granted insurance or other
benefits during their incumbency, chargeable to the barangay
or the city or municipal government to which the barangay
belongs.
CHAPTER V
Appointive Barangay Officials
Section 394. Barangay Secretary: Appointment, Qualifications,
Powers and Duties. -
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(a) The barangay secretary shall be appointed by the punong
barangay with the concurrence of the majority of all the
sangguniang barangay members. The appointment of the
barangay secretary shall not be subject to attestation by the
(b) The barangay secretary shall be of legal age, a qualified
voter and an actual resident of the barangay concerned.
(c) No person shall be appointed barangay secretary if he is a
sangguniang barangay member, a government employee, or a
relative of the punong barangay within the fourth civil degree of
consanguinity of affinity.
(d) The barangay secretary shall:
(1) Keep custody of all records of the sangguniang
barangay and the barangay assembly meetings;
(2) Prepare and keep the minutes of all meetings of the
sangguniang barangay and the barangay assembly;
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(3) Prepare a list of members of the barangay assembly,
and have the same posted in conspicuous places within
the barangay;
(4) Assist in the preparation of all necessary forms for the
conduct of barangay elections, initiatives, referenda or
plebiscites, in coordination with the COMELEC;
(5) Assist the municipal civil registrar in the registration of
births, deaths, and marriages;
(6) Keep an updated record of all inhabitants of the
barangay containing the following items of information:
name, address, place and date of birth, sex, civil status,
citizenship, occupation, and such other items of
information as may be prescribed by law or ordinance;
(7) Submit a report on the actual number of barangay
residents as often as may be required by the sangguniang
barangay; and
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ordinance.
Section 395. Barangay Treasurer: Appointment, Qualification,
Powers and Duties. -
(a) The barangay treasurer shall be appointed by the punong
barangay with the concurrence of the majority of all the
sangguniang barangay members. The appointment of the
barangay treasurer shall not be subject to attestation by the
(b) The barangay treasurer shall be of legal age, a qualified
voter, and an actual resident of the barangay concerned.
(c) No person shall be appointed barangay treasurer if he is a
sangguniang barangay member, a government employee, or a
relative of the punong barangay within the fourth civil degree of
consanguinity or affinity.
(d) The barangay treasurer shall be bonded in accordance with
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sangguniang barangay but not exceeding Ten thousand pesos
(P10,000.00), premiums for which shall be paid by the barangay.
(e) The barangay treasurer shall:
(1) Keep custody of barangay funds and properties;
(2) Collect and issue official receipts for taxes, fees,
contributions, monies, materials, and all other resources
accruing to the barangay treasury and deposit the same in
the account of the barangay as provided under Title Five,
Book II of this Code;
(3) Disburse funds in accordance with the financial
procedures provided in this Code;
(4) Submit to the punong barangay a statement covering
the actual and estimates of income and expenditures for
the preceding and ensuing calendar years, respectively,
subject to the provisions of Title Five, Book II of this Code.
(5) Render a written accounting report of all barangay
funds and property under his custody at the end of each
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calendar year, and ensure that such report shall be made
available to the members of the barangay assembly and
other government agencies concerned;
(6) Certify as to the availability of funds whenever
necessary;
(7) Plan and attend to the rural postal circuit within his
jurisdiction; and
ordinance.
Section 396. Other Appointive Officials. - The qualifications, duties,
and functions of all other barangay officials appointed by the
punong barangay shall be governed by the provisions of this Code
and other laws or by barangay ordinances.
CHAPTER VI
Barangay Assembly
Section 397. Composition; Meetings. -
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(a) There shall be a barangay assembly composed of all
persons who are actual residents of the barangay for at least
six (6) months, fifteen (15) years of age or over, citizens of the
Philippines, and duly registered in the list of barangay
assembly members.
(b) The barangay assembly shall meet at least twice a year to
hear and discuss the semestral report of the sangguniang
barangay concerning its activities and finances as well as
problems affecting the barangay. Its meetings shall be held
upon call of the punong barangay or of at least four (4)
members of the sangguniang barangay, or upon written petition
of at least five percent (5%) of the assembly members.
(c) No meeting of the barangay assembly shall take place
unless a written notice is given one (1) week prior to the
meeting except on matters involving public safety or security,
in which case notice within a reasonable time shall be
sufficient. The punong barangay, or in his absence, the
sangguniang barangay member acting as punong barangay, or
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presiding officer in all the meetings of the assembly. The
barangay secretary, or in his absence, any member designated
by the presiding officer to act as secretary, shall discharge the
duties of secretary of the barangay assembly.
Section 398. Powers of the Barangay Assembly. - The barangay
assembly shall:
(a) Initiate legislative processes by recommending to the
sangguniang barangay the adoption of measures for the
welfare of the barangay and the city or municipality concerned;
(b) Decide on the adoption of initiative as a legal process
whereby the registered voters of the barangay may directly
propose, enact, or amend any ordinance; and
(c) Hear and pass upon the semestral report of the sangguniang
barangay concerning its activities and finances.
CHAPTER VII
Katarungang Pambarangay
Section 399. Lupong Tagapamayapa. -
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(a) There is hereby created in each barangay a lupong
tagapamayapa, hereinafter referred to as the lupon, composed
of the punong barangay, as chairman and ten (10) to twenty (20)
members. The lupon shall be constituted every three (3) years
in the manner provided herein.
(b) Any person actually residing or working, in the barangay,
not otherwise expressly disqualified by law, and possessing
integrity, impartiality, independence of mind, sense of fairness,
and reputation for probity, may be appointed a member of the
lupon.
(c) A notice to constitute the lupon, which shall include the
names of proposed members who have expressed their
willingness to serve, shall be prepared by the punong barangay
within the first fifteen (15) days from the start of his term of
office. Such notice shall be posted in three (3) conspicuous
places in the barangay continuously for a period of not less
than three (3) weeks;
(d) The punong barangay, taking into consideration any
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recommendations for appointment as may have been made
within the period of posting, shall within ten (10) days
thereafter, appoint as members those whom he determines to
be suitable therefor. Appointments shall be in writing, signed
by the punong barangay, and attested to by the barangay
secretary.
(e) The list of appointed members shall be posted in three (3)
conspicuous places in the barangay for the entire duration of
their term of office; and
(f) In barangays where majority of the inhabitants are members
of indigenous cultural communities, local systems of settling
disputes through their councils of datus or elders shall be
recognized without prejudice to the applicable provisions of
this Code.
Section 400. Oath and Term of Office. - Upon appointment, each
lupon member shall take an oath of office before the punong
barangay. He shall hold office until a new lupon is constituted on the
third year following his appointment unless sooner terminated by
resignation, transfer of residence or place of work, or withdrawal of

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appointment by the punong barangay with the concurrence of the
majority of all the members of the lupon.
Section 401. Vacancies. - Should a vacancy occur in the lupon for
any cause, the punong barangay shall immediately appoint a
qualified person who shall hold office only for the unexpired portion
of the term.
Section 402. Functions of the Lupon. - The lupon shall:
(a) Exercise administrative supervision over the conciliation
panels provided herein;
(b) Meet regularly once a month to provide a forum for
exchange of ideas among its members and the public on
matters relevant to the amicable settlement of disputes, and to
enable various conciliation panel members to share with one
another their observations and experiences in effecting speedy
resolution of disputes; and
(c) Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance.
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Section 403. Secretary of the Lupon. - The barangay secretary shall
concurrently serve as the secretary of the lupon. He shall record the
results of mediation proceedings before the punong barangay and
shall submit a report thereon to the proper city or municipal courts.
He shall also receive and keep the records of proceedings submitted
to him by the various conciliation panels.
Section 404. Pangkat ng Tagapagkasundo. -
(a) There shall be constituted for each dispute brought before
the lupon a conciliation panel to be known as the pangkat ng
tagapagkasundo, hereinafter referred to as the pangkat,
consisting of three (3) members who shall be chosen by the
parties to the dispute from the list of members of the lupon.
Should the parties fail to agree on the pangkat membership, the
same shall be determined by lots drawn by the lupon chairman.
(b) The three (3) members constituting the pangkat shall elect
from among themselves the chairman and the secretary. The
secretary shall prepare the minutes of the pangkat proceedings
and submit a copy duly attested to by the chairman to the lupon
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secretary and to the proper city or municipal court. He shall
issue and cause to be served notices to the parties concerned.
The lupon secretary shall issue certified true copies of any
public record in his custody that is not by law otherwise
declared confidential.
Section 405. Vacancies in the Pangkat. - Any vacancy in the pangkat
shall be chosen by the parties to the dispute from among the other
lupon members. Should the parties fail to agree on a common
choice, the vacancy shall be filled by lot to be drawn by the lupon
chairman.
Section 406. Character of Office and Service of Lupon Members. -
(a) The lupon members, while in the performance of their
official duties or on the occasion thereof, shall be deemed as
persons in authority, as defined in the Revised Penal Code.
(b) The lupon or pangkat members shall serve without
compensation, except as provided for in Section 393 and
without prejudice to incentives as provided for in this Section
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Local Government shall provide for a system of granting
economic or other incentives to the lupon or pangkat members
who adequately demonstrate the ability to judiciously and
expeditiously resolve cases referred to them. While in the
performance of their duties, the lupon or pangkat members,
whether in public or private employment, shall be deemed to be
on official time, and shall not suffer from any diminution in
compensation or allowance from said employment by reason
thereof.
Section 407. Legal Advice on Matters Involving Questions of Law. -
The provincial, city legal officer or prosecutor or the municipal legal
officer shall render legal advice on matters involving questions of
law to the punong barangay or any lupon or pangkat member
whenever necessary in the exercise of his functions in the
administration of the katarungang pambarangay.
Section 408. Subject Matter for Amicable Settlement; Exception
Thereto. - The lupon of each barangay shall have authority to bring
together the parties actually residing in the same city or municipality
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(a) Where one party is the government, or any subdivision or
instrumentality thereof;
(b) Where one party is a public officer or employee, and the
dispute relates to the performance of his official functions;
(c) Offenses punishable by imprisonment exceeding one (1)
year or a fine exceeding Five thousand pesos (P5,000.00);
(d) Offenses where there is no private offended party;
(e) Where the dispute involves real properties located in
different cities or municipalities unless the parties thereto agree
to submit their differences to amicable settlement by an
appropriate lupon;
(f) Disputes involving parties who actually reside in barangays
of different cities or municipalities, except where such
barangay units adjoin each other and the parties thereto agree
to submit their differences to amicable settlement by an
appropriate lupon;
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(g) Such other classes of disputes which the President may
determine in the interest of Justice or upon the
recommendation of the Secretary of Justice.
The court in which non-criminal cases not falling within the
authority of the lupon under this Code are filed may, at any time
before trial motu propio refer the case to the lupon concerned
for amicable settlement.
Section 409. Venue. -
(a) Disputes between persons actually residing in the same
barangay shall be brought for amicable settlement before the
lupon of said barangay.
(b) Those involving actual residents of different barangays
within the same city or municipality shall be brought in the
barangay where the respondent or any of the respondents
actually resides, at the election of the complaint.
(c) All disputes involving real property or any interest therein
shall be brought in the barangay where the real property or the
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(d) Those arising at the workplace where the contending parties
are employed or at the institution where such parties are
enrolled for study, shall be brought in the barangay where such
workplace or institution is located.
Objections to venue shall be raised in the mediation
proceedings before the punong barangay; otherwise, the same
shall be deemed waived. Any legal question which may
confront the punong barangay in resolving objections to venue
herein referred to may be submitted to the Secretary of Justice,
or his duly designated representative, whose ruling thereon
shall be binding.
Section 410. Procedure for Amicable Settlement. -
(a) Who may initiate proceeding - Upon payment of the
appropriate filing fee, any individual who has a cause of action
against another individual involving any matter within the
authority of the lupon may complain, orally or in writing, to the
lupon chairman of the barangay.
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(b) Mediation by lupon chairman - Upon receipt of the
complaint, the lupon chairman shall within the next working day
summon the respondent(s), with notice to the complainant(s)
for them and their witnesses to appear before him for a
mediation of their conflicting interests. If he fails in his
mediation effort within fifteen (15) days from the first meeting of
the parties before him, he shall forthwith set a date for the
constitution of the pangkat in accordance with the provisions of
this Chapter.
(c) Suspension of prescriptive period of offenses - While the
dispute is under mediation, conciliation, or arbitration, the
prescriptive periods for offenses and cause of action under
existing laws shall be interrupted upon filing the complaint with
the punong barangay. The prescriptive periods shall resume
upon receipt by the complainant of the complainant or the
certificate of repudiation or of the certification to file action
issued by the lupon or pangkat secretary: Provided, however,
That such interruption shall not exceed sixty (60) days from the
filing of the complaint with the punong barangay.
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(d) Issuance of summons; hearing; grounds for disqualification
- The pangkat shall convene not later than three (3) days from
its constitution, on the day and hour set by the lupon chairman,
to hear both parties and their witnesses, simplify issues, and
explore all possibilities for amicable settlement. For this
purpose, the pangkat may issue summons for the personal
appearance of parties and witnesses before it. In the event that
a party moves to disqualify any member of the pangkat by
reason of relationship, bias, interest, or any other similar
grounds discovered after the constitution of the pangkat, the
matter shall be resolved by the affirmative vote of the majority
of the pangkat whose decision shall be final. Should
disqualification be decided upon, the resulting vacancy shall be
filled as herein provided for.
(e) Period to arrive at a settlement - The pangkat shall arrive at a
settlement or resolution of the dispute within fifteen (15) days
from the day it convenes in accordance with this section. This
period shall, at the discretion of the pangkat, be extendible for
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another period which shall not exceed fifteen (15) days, except
in clearly meritorious cases.
Section 411. Form of settlement. - All amicable settlements shall be
in writing, in a language or dialect known to the parties, signed by
them, and attested to by the lupon chairman or the pangkat
chairman, as the case may be. When the parties to the dispute do
not use the same language or dialect, the settlement shall be written
in the language known to them.
Section 412. Conciliation. -
(a) Pre-condition to Filing of Complaint in Court. - No complaint,
petition, action, or proceeding involving any matter within the
authority of the lupon shall be filed or instituted directly in court
or any other government office for adjudication, unless there
has been a confrontation between the parties before the lupon
chairman or the pangkat, and that no conciliation or settlement
has been reached as certified by the lupon secretary or pangkat
secretary as attested to by the lupon or pangkat chairman or
unless the settlement has been repudiated by the parties
thereto.
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(b) Where Parties May Go Directly to Court. - The parties may
go directly to court in the following instances:
(1) Where the accused is under detention;
(2) Where a person has otherwise been deprived of
personal liberty calling for habeas corpus proceedings;
(3) Where actions are coupled with provisional remedies
such as preliminary injunction, attachment, delivery of
personal property and support pendente lite; and
(4) Where the action may otherwise be barred by the
statute of limitations.
(c) Conciliation among members of indigenous cultural
communities. - The customs and traditions of indigenous
cultural communities shall be applied in settling disputes
between members of the cultural communities.
Section 413. Arbitration. -
(a) The parties may, at any stage of the proceedings, agree in
writing that they shall abide by the arbitration award of the
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lupon chairman or the pangkat. Such agreement to arbitrate
may be repudiated within five (5) days from the date thereof for
the same grounds and in accordance with the procedure
hereinafter prescribed. The arbitration award shall be made
after the lapse of the period for repudiation and within ten (10)
days thereafter.
(b) The arbitration award shall be in writing in a language or
dialect known to the parties. When the parties to the dispute do
not use the same language or dialect, the award shall be written
in the language or dialect known to them.
Section 414. Proceedings Open to the Public; Exception. - All
proceedings for settlement shall be public and informal: Provided,
however, That the lupon chairman or the pangkat chairman, as the
case may be, may motu proprio or upon request of a party, exclude
the public from the proceedings in the interest of privacy, decency,
or public morals.
Section 415. Appearance of Parties in Person. - In all katarungang
pambarangay proceedings, the parties must appear in person
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minors and incompetents who may be assisted by their next-of-kin
who are not lawyers.
Section 416. Effect of Amicable Settlement and Arbitration Award. -
The amicable settlement and arbitration award shall have the force
and effect of a final judgment of a court upon the expiration of ten
(10) days from the date thereof, unless repudiation of the settlement
has been made or a petition to nullify the award has been filed
before the proper city or municipal court.
However, this provision shall not apply to court cases settled by the
lupon under the last paragraph of Section 408 of this Code, in which
case the compromise or the pangkat chairman shall be submitted to
the court and upon approval thereof, have the force and effect of a
judgment of said court.
Section 417. Execution. - The amicable settlement or arbitration
award may be enforced by execution by the lupon within six (6)
months from the date of the settlement. After the lapse of such time,
the settlement may be enforced by action in the appropriate city or
municipal court.
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Section 418. Repudiation. - Any party to the dispute may, within ten
(10) days from the date of the settlement, repudiate the same by
filing with the lupon chairman a statement to that effect sworn to
before him, where the consent is vitiated by fraud, violence, or
intimidation. Such repudiation shall be sufficient basis for the
issuance of the certification for filing a complaint as hereinabove
provided.
Section 419. Transmittal of Settlement and Arbitration. - Award to
the Court. - The secretary of the lupon shall transmit the settlement
or the arbitration award to the appropriate city or municipal court
within five (5) days from the date of the award or from the lapse of
the ten-day period repudiating the settlement and shall furnish
copies thereof to each of the parties to the settlement and the lupon
chairman.
Section 420. Power to Administer Oaths. - The punong barangay, as
chairman of the lupong tagapamayapa, and the members of the
pangkat are hereby authorized to administer oaths in connection
with any matter relating to all proceedings in the implementation of
the katarungang pambarangay.

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Section 421. Administration; Rules and Regulations. - The city or
municipal mayor, as the case may be, shall see to the efficient and
effective implementation and administration of the katarungang
pambarangay. The Secretary of Justice shall promulgate the rules
and regulations necessary to implement this Chapter.
Section 422. Appropriations. - Such amount as may be necessary for
the effective implementation of the katarungang pambarangay shall
be provided for in the annual budget of the city or municipality
concerned.
CHAPTER VIII
Sangguniang Kabataan
Section 423. Creation and Election. -
(a) There shall be in every barangay a sangguniang kabataan to
be composed of a chairman, seven (7) members, a secretary,
and a treasurer.
(b) A sangguniang kabataan official who, during his term of
office, shall have passed the age of twenty-one (21) years shall
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be allowed to serve the remaining portion of the term for which
he was elected.
Section 424. Katipunan ng Kabataan. - The katipunan ng kabataan
shall be composed of all citizens of the Philippines actually residing
in the barangay for at least six (6) months, who are fifteen (15) but
not more than twenty-one (21) years of age, and who are duly
registered in the list of the sangguniang kabataan or in the official
barangay list in the custody of the barangay secretary.
Section 425. Meetings of the Katipunan ng Kabataan. - The
katipunan ng kabataan shall meet at least once every three (3)
months, or at the call of the chairman of the sangguniang kabataan
or upon written petition of at least one-twentieth (1/20) of its
members, to decide on important issues affecting the youth of the
barangay.
Section 426. Powers and Functions of the Sangguniang Kabataan. -
The sangguniang kabataan shall:
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(a) Promulgate resolutions necessary to carry out the
objectives of the youth in the barangay in accordance with the
applicable provisions of this Code;
(b) Initiate programs designed to enhance the social, political,
economic, cultural, intellectual, moral, spiritual, and physical
development of the members;
(c) Hold fund-raising activities, the proceeds of which shall be
tax-exempt and shall accrue to the general fund of the
sangguniang kabataan: Provided, however, That in the
appropriation thereof, the specific purpose for which such
activity has been held shall be first satisfied;
(d) Create such bodies or committees as it may deem
necessary to effectively carry out its programs and activities;
(e) Submit annual and end-of-term reports to the sangguniang
barangay on their projects and activities for the survival and
development of the youth in the barangay;
(f) Consult and coordinate with all youth organizations in the
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(g) Coordinate with the appropriate national agency for the
implementation of youth development projects and programs at
the national level;
(h) Exercise such other powers and perform such other duties
and functions as the sangguniang barangay may determine or
delegate; and
(i) Exercise such other powers and perform such other duties
Section 427. Meetings of the Sangguniang Kabataan. - The
sangguniang kabataan shall meet regularly once a month on the
date, time, and place to be fixed by the said sanggunian. Special
meetings may be called by the sangguniang kabataan chairman or
any three (3) of its members by giving written notice to all members
of the date, time, place and agenda of the meeting at least one (1)
day in advance. Notices of regular or special meetings shall be
furnished the punong barangay and the sangguniang barangay.
A majority of the members of the sangguniang kabataan shall
constitute a quorum.
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Section 428. Qualifications. - An elective official of the sangguniang
kabataan must be a citizen of the Philippines, a qualified voter of the
katipunan ng kabataan, a resident of the barangay for at least one
(1) year immediately prior to election, at least fifteen (15) years but
not more than twenty- one (21) years of age on the day of his
election, able to read and write Filipino, English, or the local dialect,
and must not have been convicted of any crime involving moral
turpitude.
Section 429. Term of Office. - The sangguniang kabataan chairman
and members shall hold office for a period of three (3) years, unless
sooner removed for cause as provided by law, permanently
incapacitated, die or resign from office.
Section 430. Sangguniang Kabataan Chairman. - The registered
voters of the katipunan ng kabataan shall elect the chairman of the
sangguniang kabataan who shall automatically serve as an ex
officio member of the sangguniang barangay upon his assumption
to office. As such, he shall exercise the same powers, discharge the
same duties and functions, and enjoy the same privileges as the
regular sangguniang barangay members, and shall be the chairman

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of the committee on youth and sports development in the said
sanggunian.
Section 431. Powers and Duties of the Sangguniang Kabataan
Chairman. - In addition to the duties which may be assigned to him
by the sangguniang barangay, the sangguniang kabataan chairman
shall:
(a) Call and preside over all meetings of the katipunan ng
kabataan and the sangguniang kabataan;
(b) Implement policies, programs, and projects within his
jurisdiction in coordination with the sangguniang barangay;
(c) Exercise general supervision over the affairs and activities
of the sangguniang kabataan and the official conduct of its
members, and such other officers of the sangguniang kabataan
within his jurisdiction;
(d) With the concurrence of the sangguniang kabataan, appoint
from among the members of the sangguniang kabataan, the
secretary and treasurer and such other officers as may be
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(e) Exercise such other powers and perform such other duties
Section 432. Sangguniang Kabataan Secretary. - The sangguniang
kabataan secretary shall:
(a) Keep all records of the katipunan ng kabataan and
(b) Prepare and keep the minutes of all meetings of the
katipunan ng kabataan and sangguniang kabataan;
(c) Prepare all forms necessary for the conduct of registrations,
elections, initiatives, referenda, or plebiscites, in coordination
with the barangay secretary and the COMELEC; and
(d) Perform such other duties and discharge such other
functions as the chairman of the sangguniang kabataan may
prescribe or direct.
Section 433. Sangguniang Kabataan Treasurer. - The sangguniang
kabataan treasurer shall:
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(a) Take custody of all sangguniang kabataan property and
funds not otherwise deposited with the city or municipal
treasurer;
(b) Collect and receive contributions, monies, materials, and all
other sources intended for the sangguniang kabataan and
katipunan ng kabataan;
(c) Disburse funds in accordance with an approved budget of
the sangguniang kabataan;
(d) Certify to the availability of funds whenever necessary;
(e) Submit to the sangguniang kabataan and to the
sangguniang barangay certified and detailed statements of
actual income and expenditures at the end of every month; and
(f) Perform such other duties and discharge such other
functions as the chairman of the sangguniang kabataan may
direct.
Section 434. Privileges of Sangguniang Kabataan Officials. - The
sangguniang kabataan chairman shall have the same privileges
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enjoyed by other sangguniang barangay officials under this Code
subject to such requirements and limitations provided herein.
During their incumbency, sangguniang kabataan officials shall be
exempt from payment of tuition and matriculation fees while
enrolled in public tertiary schools, including state colleges and
universities. The national government shall reimburse said college
or university the amount of the tuition and matriculation fees:
Provided, That, to qualify for the privilege, the said officials shall
enroll in a state college or university within or nearest their area of
jurisdiction.
Section 435. Succession and Filling of Vacancies. -
(a) In case a sangguniang kabataan chairman refuses to
assume office, fails to qualify, is convicted of a felony,
voluntarily resigns, dies, is permanently incapacitated, is
removed from office, or has been absent without leave for more
than three (3) consecutive months, the sangguniang kabataan
member who obtained the next highest number of votes in the
election immediately preceding shall assume the office of the
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discharge the powers and duties, and enjoy the rights and
privileges appurtenant to the office. In case the said member
refuses to assume the position or fails to qualify, the
sangguniang member obtaining the next highest number of
votes shall assume the position of the chairman for the
unexpired portion of the term.
(b) Where two (2) or more sangguniang kabataan members
obtained the same next highest number of votes, the other
sangguniang kabataan members shall conduct an election to
choose the successor to the chairman from among the said
members.
(c) After the vacancy shall have been filled, the sangguniang
kabataan chairman shall call a special election to complete the
membership of said sanggunian. Such sangguniang kabataan
member shall hold office for the unexpired portion of the term
of the vacant seat.
(d) In case of suspension of the sangguniang kabataan
chairman, the successor, as determined in subsections (a) and
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(b) of this Section shall assume the position during the period
of such suspension.
CHAPTER IX
Pederasyon ng mga Sangguniang Kabataan
Section 436. Pederasyon ng mga Kabataan. -
(a) There shall be an organization of all the pederasyon ng mga
sangguniang kabataan to be known as follows:
(1) in municipalities pambayang pederasyon ng mga
(2) in cities, panlungsod na pederasyon ng mga
(3) in provinces, panlalawigang pederasyon ng mga
kabataan;
(4) in special metropolitan political subdivisions,
pangmetropolitan pederasyon ng mga sangguniang
kabataan; and
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(5) on the national level pambansang pederasyon ng mga
sangguniang kabataan.
(b) The pederasyon ng mga sangguniang kabataan shall, at all
levels, elect from among themselves the president, vice-
president and such other officers as may be necessary and
shall be organized in the following manner:
(1) The panlungsod and pambayang pederasyon shall be
composed of the sangguniang kabataan chairmen of
barangays in the city or municipality, respectively;
(2) The panlalawigang pederasyon shall be composed of
presidents of the panlungsod and pambayang pederasyon;
(3) The pangmetropolitang pederasyon shall be composed
of presidents of the panlungsod and pambayan
pederasyon;
(c) The elected presidents of the pederasyon at the provincial,
highly urbanized city, and metropolitan political subdivision
levels shall constitute the pambansang katipunan ng mga
sangguniang kabataan.
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Section 437. Constitution and By-Laws. - The term of office, manner
of election, removal and suspension of the officers of the
pederasyon ng mga sangguniang kabataan at all levels shall be
governed by the constitution and by-laws of the pederasyon in
conformity with the provisions of this Code and national policies on
youth.
Section 438. Membership in the Sanggunian. -
(a) A sangguniang kabataan chairman shall, upon certification
of his election by the COMELEC and during his tenure of office
is elected as pederasyon president, serve as an ex-officio
member of the sangguniang panlalawigan, sangguniang
panlungsod, and sangguniang bayan, as the case may be,
without need of further appointment.
(b) The vice-president of the pederasyon whose president has
been elected as president of a higher pederasyon shall serve as
ex-officio member of the sanggunian concerned without need
of further appointment.
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(c) The pederasyon president or vice-president, as the case
may be, shall be the chairman of the committee on youth and
sports development of the sanggunian concerned.
CHAPTER X
Linggo ng Kabataan
Section 439. Observance of Linggo ng Kabataan. -
(a) Every barangay, municipality, city and province shall, in
coordination with the pederasyon ng mga sangguniang
kabataan at all levels, conduct an annual activity to be known
as the Linggo ng Kabataan on such date as shall be determined
by the Office of the President.
(b) The observance of the Linggo ng Kabataan shall include the
election of the counterparts of all local elective and appointive
officials, as well as heads of national offices or agencies
stationed or assigned in the territorial jurisdiction of the local
government unit, among in-school and community youth
residing in the local government unit concerned from ages
thirteen (13) to seventeen (17). During said week, they shall
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hold office as boy and girl officials and shall perform such
duties and conduct such activities as may be provided in the
ordinance enacted pursuant to this Chapter.
TITLE II
THE MUNICIPALITY
CHAPTER I
Role and Creation of the Municipality
Section 440. Role of the Municipality. - The municipality, consisting
of a group of barangays, serves primarily as a general purpose
government for the coordination and delivery of basic, regular and
direct services and effective governance of the inhabitants within its
Section 441. Manner of Creation. - A municipality may be created,
divided, merged, abolished, or its boundary substantially altered
only by an Act of Congress and subject to the approval by a majority
of the votes cast in a plebiscite to be conducted by the COMELEC in
the local government unit or units directly affected. Except as may
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otherwise be provided in the said Act, the plebiscite shall be held
within one hundred twenty (120) days from the date of its effectivity.
Section 442. Requisites for Creation. -
(a) A municipality may be created if it has an average annual
income, as certified by the provincial treasurer, of at least Two
million five hundred thousand pesos (P2,500,000.00) for the last
two (2) consecutive years based on the 1991 constant prices; a
population of at least twenty-five thousand (25,000) inhabitants
as certified by the National Statistics Office; and a contiguous
territory of at least fifty (50) square kilometers as certified by
the Lands Management Bureau: Provided, That the creation
thereof shall not reduce the land area, population or income of
the original municipality or municipalities at the time of said
creation to less than the minimum requirements prescribed
herein.
(b) The territorial jurisdiction of a newly-created municipality
shall be properly identified by metes and bounds. The
requirement on land area shall not apply where the municipality
proposed to be created is composed of one (1) or more islands.

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The territory need not be contiguous if it comprises two (2) or
more islands.
(c) The average annual income shall include the income
accruing to the general fund of the municipality concerned,
exclusive of special funds, transfers and non-recurring income.
(d) Municipalities existing as of the date of the effectivity of this
Code shall continue to exist and operate as such. Existing
municipal districts organized pursuant to presidential
issuances or executive orders and which have their respective
set of elective municipal officials holding office at the time of
the effectivity of this Code shall henceforth be considered as
regular municipalities.
CHAPTER II
Municipal Officials in General
Section 443. Officials of the Municipal Government. -
(a) There shall be in each municipality a municipal mayor, a
municipal vice-mayor, sangguniang bayan members, a
secretary to the sangguniang bayan, a municipal treasurer, a

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municipal assessor, a municipal accountant, a municipal
budget officer, a municipal planning and development
coordinator, a municipal engineer/building official, a municipal
health officer and a municipal civil registrar.
(b) In addition thereto, the mayor may appoint a municipal
administrator, a municipal legal officer, a municipal
agriculturist, a municipal environment and natural resources
officer, a municipal social welfare and development officer, a
municipal architect, and a municipal information officer.
(c) The sangguniang bayan may:
(1) Maintain existing offices not mentioned in subsections
(a) and (b) hereof;
(2) Create such other offices as may be necessary to carry
out the purposes of the municipal government; or
(3) Consolidate the functions of any office with those of
another in the interest of efficiency and economy.
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(d) Unless otherwise provided herein, heads of departments
and offices shall be appointed by the municipal mayor with the
concurrence of the majority of all the sangguniang bayan
members, subject to civil service law, rules and regulations.
The sangguniang bayan shall act on the appointment within
fifteen (15) days from the date of its submission; otherwise, the
same shall be deemed confirmed.
(e) Elective and appointive municipal officials shall receive
such compensation, allowances and other emoluments as may
be determined by law or ordinance, subject to the budgetary
limitations on personal services as prescribed in Title Five,
Book Two of this Code: Provided, That no increase in
compensation of the mayor, vice-mayor, and sangguniang
bayan members shall take effect until after the expiration of the
full term of all the elective local officials approving such
increase.
CHAPTER III
Officials and Offices Common to All Municipalities
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ARTICLE I
The Municipal Mayor
Section 444. The Chief Executive: Powers, Duties, Functions and
Compensation. -
(a) The municipal mayor, as the chief executive of the municipal
government, shall exercise such powers and performs such
duties and functions as provided by this Code and other laws.
(b) For efficient, effective and economical governance the
purpose of which is the general welfare of the municipality and
its inhabitants pursuant to Section 16 of this Code, the
municipal mayor shall:
(1) Exercise general supervision and control over all
programs, projects, services, and activities of the
municipal government, and in this connection, shall:
(i) Determine the guidelines of municipal policies and
be responsible to the sangguniang bayan for the
program of government;
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(ii) Direct the formulation of the municipal
development plan, with the assistance of the
municipal development council, and upon approval
thereof by the sangguniang bayan, implement the
same;
(iii) At the opening of the regular session of the
sangguniang bayan for every calendar year and, as
may be deemed necessary, present the program of
government and propose policies and projects for the
consideration of the sangguniang bayan as the
general welfare of the inhabitants and the needs of the
municipal government may require;
(iv) Initiate and propose legislative measures to the
sangguniang bayan and, from time to time as the
situation may require, provide such information and
data needed or requested by said sanggunian in the
performance of its legislative functions;
(v) Appoint all officials and employees whose salaries
and wages are wholly or mainly paid out of municipal

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funds and whose appointments are not otherwise
provided for in this Code, as well as those he may be
authorized by law to appoint;
(vi) Upon authorization by the sangguniang bayan,
represent the municipality in all its business
transactions and sign on its behalf all bonds,
contracts, and obligations, and such other documents
made pursuant to law or ordinance;
(vii) Carry out such emergency measures as may be
necessary during and in the aftermath of man-made
and natural disasters and calamities;
(viii) Determine, according to law or ordinance, the
time, manner and place of payment of salaries or
wages of the officials and employees of the
municipality;
(ix) Allocate and assign office space to municipal and
other officials and employees who, by law or
ordinance, are entitled to such space in the municipal
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hall and other buildings owned or leased by the
municipal government;
(x) Ensure that all executive officials and employees
of the municipality faithfully discharge their duties
and functions as provided by law and this Code, and
cause to be instituted administrative or judicial
proceedings against any official or employee of the
municipality who may have committed as offense in
the performance of his official duties;
(xi) Examine the books, records and other documents
of all offices, officials, agents or employees of the
municipality and in aid of his executive powers and
authority, require all national officials and employees
stationed in or assigned to the municipality to make
available to him such books, records, and other
documents in their custody, except those classified
by law as confidential;
(xii) Furnish copies of executive orders issued by him
to the provincial governor within seventy-two (72)

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hours after their issuance: Provided, That
municipalities of Metropolitan Manila Area and that of
any metropolitan political subdivision shall furnish
copies of said executive orders to the metropolitan
authority council chairman and to the Office of the
President;
(xiii) Visit component barangays of the municipality at
least once every six (6) months to deepen his
understanding of problems and conditions therein,
listen and give appropriate counsel to local officials
and inhabitants, inform the component barangay
officials and inhabitants of general laws and
ordinances which especially concern them, and
otherwise conduct visits and inspections to the end
that the governance of the municipality will improve
the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and
employees appointed by him and the commutation of
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(xv) Authorize official trips outside of the municipality
of municipal officials and employees for a period not
exceeding thirty (30) days;
(xvi) Call upon any national official or employee
stationed in or assigned to the municipality to advise
him on matters affecting the municipality and to make
recommendations thereon, or to coordinate in the
formulation and implementation of plans, programs
and projects, and when appropriate, initiate an
administrative or judicial action against a national
government official or employee who may have
committed an offense in the performance of his
official duties while stationed in or assigned to the
local government unit concerned;
(xvii) Subject to availability of funds, authorize
payment of medical care, necessary transportation,
subsistence, hospital or medical fees of municipal
officials and employees who are injured while in the
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(xviii) Solemnize marriages, any provision of law to
the contrary notwithstanding;
(xix) Conduct a palarong bayan, in coordination with
the Department of Education, Culture and Sports, as
an annual activity which shall feature traditional
sports and disciplines included in national and
international games; and
(xx) Submit to the provincial governor the following
reports: an annual report containing a summary of all
matters pertaining to the management, administration
and development of the municipality and all
information and data relative to its political, social and
economic conditions; and supplemental reports when
unexpected events and situations arise at any time
during the year, particularly when man-made or
natural disasters or calamities affect the general
welfare of the municipality, province, region or
country. mayors of municipalities of the Metropolitan
Manila Area and other metropolitan political

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subdivisions shall submit said reports to their
respective metropolitan council chairmen and to the
Office of the President;
(2) Enforce all laws and ordinances relative to the
governance of the municipality and the exercise of its
corporate powers provided for under Section 22 of this
Code implement all approved policies, programs, projects,
services and activities of the municipality and, in addition
to the foregoing, shall:
(i) Ensure that the acts of the municipality's
component barangays and of its officials and
employees are within the scope of their prescribed
powers, functions, duties and responsibilities;
(ii) Call conventions, conferences, seminars or
meetings of any elective and appointive officials of the
municipality, including provincial officials and
national officials and employees stationed in or
assigned to the municipality at such time and place
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promotion of the general welfare of the local
government unit and its inhabitants;
(iii) Issue such executive orders as are necessary for
the proper enforcement and execution of laws and
ordinances;
(iv) Be entitled to carry the necessary firearm within
his territorial jurisdiction;
(v) Act as the deputized representative of the National
Police Commission, formulate the peace and order
plan of the municipality and upon its approval
implement the same and exercise general and
operational control and supervision over the local
police in the municipality in accordance with R.A. No
6975;
(vi) Call upon the appropriate law enforcement
agencies to suppress disorder, riot, lawless violence,
rebellion or sedition or to apprehend violators of the
law when public interest so requires and the
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municipal police forces are inadequate to cope with
the situation or the violators;
(3) Initiate and maximize the generation of resources and
revenues, and apply the same to the implementation of
development plans, program objectives and priorities as
provided for under Section 18 of this Code, particularly
those resources and revenues programmed for gro-
industrial development and country-wide growth and
progress, and relative thereto, shall:
(i) Require each head of an office or department to
prepare and submit an estimate of appropriations for
the ensuing calendar year, in accordance with the
budget preparation process under Title Five, Book II
of this Code;
(ii) Prepare and submit to the sanggunian for approval
the executive and supplemental budgets of the
municipality for the ensuing calendar year in the
manner provided for under Title Five, Book II of this
Code;
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(iii) Ensure that all taxes and other revenues of the
municipality are collected and that municipal funds
are applied in accordance with law or ordinance to the
payment of expenses and settlement of obligations of
the municipality;
(iv) Issue licenses and permits and suspend or revoke
the same for any violation of the conditions upon
which said licenses or permits had been issued,
pursuant to law or ordinance;
(v) Issue permits, without need of approval therefor
from any national agency, for the holding of activities
for any charitable or welfare purpose, excluding
prohibited games of chance or shows contrary to law,
public policy and public morals;
(vi) Require owners of illegally constructed houses,
buildings or other structures to obtain the necessary
permit, subject to such fines and penalties as may be
imposed by law or ordinance, or to make necessary
changes in the construction of the same when said

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construction violates any law or ordinance, or to order
the demolition or removal of said house, building or
structure within the period prescribed by law or
ordinance;
(vii) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest, and other
resources of the municipality; provide efficient and
effective property and supply management in the
municipality; and protect the funds, credits, rights and
other properties of the municipality; and
(viii) Institute or cause to be instituted administrative
or judicial proceedings for violation of ordinances in
the collection of taxes, fees or charges, and for the
recovery of funds and property; and cause the
municipality to be defended against all suits to ensure
that its interests, resources and rights shall be
adequately protected;
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(4) Ensure the delivery of basic services and the provision
of adequate facilities as provided for under Section 17 of
this Code and, in addition thereto, shall:
(i) Ensure that the construction and repair of roads
and highways funded by the national government
shall be, as far as practicable, carried out in a spatially
contiguous manner and in coordination with the
construction and repair of the roads and bridges of
the municipality and the province; and
(ii) Coordinate the implementation of technical
services rendered by national and provincial offices,
including public works and infrastructure programs in
the municipality; and
ordinance.
(c) During his incumbency, the municipal mayor shall hold
office in the municipal hall.
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(d) The municipal mayor shall receive a minimum monthly
compensation corresponding to Salary Grade twenty-seven (27)
as prescribed under R.A. No. 6758 and the implementing
guidelines issued pursuant thereto.
ARTICLE II
The Vice Mayor
Section 445. Powers, Duties and Compensation. -
(a) The vice-mayor shall:
(1) Be the presiding officer of the sangguniang bayan and
sign all warrants drawn on the municipal treasury for all
expenditures appropriated for the operation of the
sangguniang bayan;
(2) Subject to civil service law, rules and regulations,
appoint all officials and employees of the sangguniang
bayan, except those whose manner of appointment is
specifically provided in this Code;
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(3) Assume the office of the municipal mayor for the
unexpired term of the latter in the event of permanent
vacancy as provided for in Section 44, Book I of this Code;
(4) Exercise the powers and perform the duties and
functions of the municipal mayor in cases of temporary
vacancy as provided for in Section 46, Book I of this Code;
and
ordinance.
(b) The vice-mayor shall receive a monthly compensation
corresponding to Salary Grade twenty five (25) as prescribed
under R.A. No. 6758 and the implementing guidelines issued
pursuant thereto.
ARTICLE III
The Sangguniang Bayan
Section 446. Composition. -
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(a) The sangguniang bayan, the legislative body of the
municipality, shall be composed of the municipal vice mayor as
the presiding officer, the regular sanggunian members, the
president of the municipal chapter of the liga ng mga barangay,
the president of the pambayang pederasyon ng mga
sangguniang kabataan, and the sectoral representatives, as
members.
(b) In addition thereto, there shall be three (3) sectoral
representatives: one (1) from the women; and as shall be
determined by the sanggunian concerned within ninety (90)
days prior to the holding of local elections, one (1) from the
agricultural or industrial workers, and one (1) from other
sectors, including the urban poor, indigenous cultural
communities, or disabled persons.
(c) The regular members of the sangguniang bayan and the
sectoral representatives shall be elected in the manner as may
be provided for by law.
Section 447. Powers, Duties, Functions and Compensation. -
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(a) The sangguniang bayan, as the legislative body of the
municipality, shall enact ordinances, approve resolutions and
appropriate funds for the general welfare of the municipality
and its inhabitants pursuant to Section 16 of this Code and in
the proper exercise of the corporate powers of the municipality
as provided for under Section 22 of this Code, and shall:
(1) Approve ordinances and pass resolutions necessary
for an efficient and effective municipal government, and in
this connection shall:
(i) Review all ordinances approved by the
sangguniang barangay and executive orders issued
by the punong barangay to determine whether these
are within the scope of the prescribed powers of the
sanggunian and of the punong barangay;
(ii) Maintain peace and order by enacting measures to
prevent and suppress lawlessness, disorder, riot,
violence, rebellion or sedition and impose penalties
for the violation of said ordinances;
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(iii) Approve ordinances imposing a fine not
exceeding Two thousand five hundred pesos
(P2,500.00) or an imprisonment for a period not
exceeding six (6) months, or both in the discretion of
the court, for the violation of a municipal ordinance;
(iv) Adopt measures to protect the inhabitants of the
municipality from the harmful effects of man-made or
natural disasters and calamities and to provide relief
services and assistance for victims during and in the
aftermath of said disasters or calamities and their
return to productive livelihood following said events;
(v) Enact ordinances intended to prevent, suppress
and impose appropriate penalties for habitual
drunkenness in public places, vagrancy, mendicancy,
prostitution, establishment and maintenance of
houses of ill repute, gambling and other prohibited
games of chance, fraudulent devices and ways to
obtain money or property, drug addiction,
maintenance of drug dens, drug pushing, juvenile

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delinquency, the printing, distribution or exhibition of
obscene or pornographic materials or publications,
and such other activities inimical to the welfare and
morals of the inhabitants of the municipality;
(vi) Protect the environment and impose appropriate
penalties for acts which endanger the environment,
such as dynamite fishing and other forms of
destructive fishing, illegal logging and smuggling of
logs, smuggling of natural resources products and of
endangered species of flora and fauna, slash and burn
farming, and such other activities which result in
pollution, acceleration of eutrophication of rivers and
lakes, or of ecological imbalance;
(vii) Subject to the provisions of this Code and
pertinent laws, determine the powers and duties of
officials and employees of the municipality;
(viii) Determine the positions and salaries, wages,
allowances and other emoluments and benefits of
officials and employees paid wholly or mainly from

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municipal funds and provide for expenditures
necessary for the proper conduct of programs.
projects, services, and activities of the municipal
government;
(ix) Authorize the payment of compensation to a
qualified person not in the government service who
fills up a temporary vacancy or grant honorarium to
any qualified official or employee designated to fill a
temporary vacancy in a concurrent capacity, at the
rate authorized by law;
(x) Provide a mechanism and the appropriate funds
therefor, to ensure the safety and protection of all
municipal government property, public documents, or
records such as those relating to property inventory,
land ownership, records of births, marriages, deaths,
assessments, taxation, accounts, business permits,
and such other records and documents of public
interest in the offices and departments of the
municipal government;
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(xi) When the finances of the municipal government
allow, provide for additional allowances and other
benefits to judges, prosecutors, public elementary
and high school teachers, and other national
government officials stationed in or assigned to the
municipality;
(xii) Provide for legal assistance to barangay officials
who, in the performance of their official duties or on
the occasion thereof, have to initiate judicial
proceedings or defend themselves against legal
action; and
(xii) Provide for group insurance or additional
insurance coverage for barangay officials, including
members of barangay tanod brigades and other
service units, with public or private insurance
companies, when the finances of the municipal
government allow said coverage.
(2) Generate and maximize the use of resources and
revenues for the development plans, program objectives

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and priorities of the municipality as provided for under
Section 18 of this Code with particular attention to agro-
industrial development and countryside growth and
progress, and relative thereto, shall:
(i) Approve the annual and supplemental budgets of
the municipal government and appropriate funds for
specific programs, projects, services and activities of
the municipality, or for other purposes not contrary to
law, in order to promote the general welfare of the
municipality and its inhabitants;
(ii) Subject to the provisions of Book II of this Code
and applicable laws and upon the majority vote of all
the members of the sangguniang bayan, enact
ordinances levying taxes, fees and charges,
prescribing the rates thereof for general and specific
purposes, and granting tax exemptions, incentives or
reliefs;
(iii) Subject to the provisions of Book II of this Code
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sangguniang bayan, authorize the municipal mayor to
negotiate and contract loans and other forms of
indebtedness;
(iv) Subject to the provisions of Book II of this Code
the members of the sangguniang bayan, enact
ordinances authorizing the floating of bonds or other
instruments of indebtedness, for the purpose of
raising funds to finance development projects;
(v) Appropriate funds for the construction and
maintenance or the rental of buildings for the use of
the municipality and, upon the majority vote of all the
members of the sangguniang bayan, authorize the
municipal mayor to lease to private parties such
public buildings held in a proprietary capacity, subject
to existing laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on the
use of property within the jurisdiction of the
municipality:
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(vii) Adopt a comprehensive land use plan for the
municipality: Provided, That the formulation,
adoption, or modification of said plan shall be in
coordination with the approved provincial
comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the
municipality, subject to the pertinent provisions of
this Code;
(ix) Enact integrated zoning ordinances in
consonance with the approved comprehensive land
use plan, subject to existing laws, rules and
regulations; established fire limits or zones,
particularly in populous centers; and regulate the
construction, repair or modification of buildings
within said fire limits or zones in accordance with the
provisions of this Code;
(x) Subject to national law, process and approve
subdivision plans for residential, commercial, or
industrial purposes and other development purposes,

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and collect processing fees and other charges the
proceeds of which shall accrue entirely to the
municipality: Provided, however, That, where approval
by a national agency or office is required, said
approval shall not be withheld for more than thirty (30)
days from receipt of the application. Failure to act on
the application within the period stated above shall be
deemed as approval thereof;
(xi) Subject to the provisions of Book II of this Code,
grant the exclusive privilege of constructing fish
corrals or fish pens, or the taking or catching of
bangus fry, prawn fry or kawag-kawag of fry of any
species or fish within the municipal waters;
(xii) With the concurrence of at least two-thirds (2/3) of
all the members of the sangguniang bayan, grant tax
exemptions, incentives or reliefs to entities engaged
in community growth-inducing industries, subject to
the provisions of Chapter 5, Title I, Book II of this
Code.
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(xiii) Grant loans or provide grants to other local
government units or to national, provincial and
municipal charitable, benevolent or educational
institutions: Provided, That said institutions are
operated and maintained within the municipality;
(xiv) Regulate the numbering of residential,
commercial and other buildings; and
(xv) Regulate the inspection, weighing and measuring
of articles of commerce.
(3) Subject to the provisions of Book II of this Code, grant
franchises, enact ordinances authorizing the issuance of
permits or licenses, or enact ordinances levying taxes,
fees and charges upon such conditions and for such
purposes intended to promote the general welfare of the
inhabitants of the municipality, and pursuant to this
legislative authority shall:
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(i) Fix and impose reasonable fees and charges for all
services rendered by the municipal government to
private persons or entities;
(ii) Regulate any business, occupation, or practice of
profession or calling which does not require
government examination within the municipality and
the conditions under which the license for said
business or practice of profession may be issued or
revoked;
(iii) Prescribe the terms and conditions under which
public utilities owned by the municipality shall be
operated by the municipal government or leased to
private persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for
signs, signboards, or billboards at the place or places
where the profession or business advertised thereby
is, in whole or in part, conducted;
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(v) Any law to the contrary notwithstanding, authorize
and license the establishment, operation, and
maintenance of cockpits, and regulate cockfighting
and commercial breeding of gamecocks: Provided,
That existing rights should not be prejudiced;
(vi) Subject to the guidelines prescribed by the
Department of Transportation and Communications,
regulate the operation of tricycles and grant
franchises for the operation thereof within the
territorial jurisdiction of the municipality;
(vii) Upon approval by a majority vote of all the
members of the sangguniang bayan, grant a franchise
to any person, partnership, corporation, or
cooperative to establish, construct, operate and
maintain ferries, wharves, markets or
slaughterhouses, or such other similar activities
within the municipality as may be allowed by
applicable laws: Provided, That, cooperatives shall be
given preference in the grant of such a franchise.

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(4) Regulate activities relative to the use of land, buildings
and structures within the municipality in order to promote
the general welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof
and any land within the municipality be kept and
maintained in a sanitary condition; impose penalties
for any violation thereof, or upon failure to comply
with said requirement, have the work done and require
the owner, administrator or tenant concerned to pay
the expenses of the same; or require the filling up of
any land or premises to a grade necessary for proper
sanitation;
(iii) Regulate the disposal of clinical and other wastes
from hospitals, clinics and other similar
establishments;
(iv) Regulate the establishment, operation and
maintenance of cafes, restaurants, beerhouses,
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hotels, motels, inns, pension houses, lodging houses,
and other similar establishments, including tourist
guides and transports;
(v) Regulate the sale, giving away or dispensing of
any intoxicating malt, vino, mixed or fermented
liquors at any retail outlet;
(vi) Regulate the establishment and provide for the
inspection of steam boilers or any heating device in
buildings and the storage of inflammable and highly
combustible materials within the municipality;
(vii) Regulate the establishment, operation, and
maintenance of entertainment or amusement facilities,
including theatrical performances, circuses, billiards
pools, public dancing schools, public dance halls,
sauna baths, massage parlors, and other places of
entertainment or amusement; regulate such other
events or activities for amusement or entertainment,
particularly those which tend to disturb the
community or annoy the inhabitants, or require the

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suspension or suppression of the same; or, prohibit
certain forms of amusement or entertainment in order
to protect the social and moral welfare of the
community;
(viii) Provide for the impounding of stray animals;
regulate the keeping of animals in homes or as part of
a business, and the slaughter, sale or disposition of
the same; and adopt measures to prevent and
penalize cruelty to animals; and
(ix) Regulate the establishment, operation, and
maintenance of funeral parlors and the burial or
cremation of the dead, subject to existing laws, rules
and regulations.
(5) Approve ordinances which shall ensure the efficient
and effective delivery of the basic services and facilities as
provided for under Section 17 of this Code, and in addition
to said services and facilities, shall:
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(i) Provide for the establishment, maintenance,
protection, and conservation of communal forests and
watersheds, tree parks, greenbelts, mangroves, and
other similar forest development projects;
(ii) Establish markets, slaughterhouses or animal
corrals and authorize the operation thereof, and
regulate the construction and operation of private
markets, talipapas or other similar buildings and
structures;
(iii) Authorize the establishment, maintenance and
operation of ferries, wharves, and other structures,
and marine and seashore or offshore activities
intended to accelerate productivity;
(iv) Regulate the preparation and sale of meat, poultry,
fish, vegetables, fruits, fresh dairy products, and other
foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys,
sidewalks, bridges, parks and other public places and
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approve the construction, improvement, repair and
maintenance of the same; establish bus and vehicle
stops and terminals or regulate the use of the same by
privately-owned vehicles which serve the public;
regulate garages and the operation of conveyances
for hire; designate stands to be occupied by public
vehicles when not in use; regulate the putting up of
signs, signposts, awnings and awning posts on the
streets; provide for the lighting, cleaning and
sprinkling of streets and public places;
(vi) Regulate traffic on all streets and bridges, prohibit
the putting up of encroachments or obstacles thereon,
and, when necessary in the interest of public welfare,
authorize the removal of encroachments and illegal
constructions in public places;
(vii) Subject to existing laws, provide for the
establishment, operation, maintenance, and repair of
an efficient waterworks system to supply water for the
inhabitants; regulate the construction, maintenance,

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repair and use of hydrants, pumps, cisterns and
reservoirs; protect the purity and quantity of the water
supply of the municipality and, for this purpose,
extend the coverage of appropriate ordinances over
all territory within the drainage area of said water
supply and within one hundred (100) meters of the
reservoir, conduit, canal, aqueduct, pumping station,
or watershed used in connection with the water
service; and regulate the consumption, use or
wastage of water;
(viii) Regulate the drilling and excavation of the
ground for laying of water, gas, sewer, and other
pipes and the construction, repair and maintenance of
public drains, sewers, cesspools, tunnels and similar
structures; regulate the placing of poles and the use
of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes,
live wires and other similar hazards to life and
property; and regulate the construction and use of
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private water closets, privies and other similar
structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching,
installing, repair and construction of all gas mains,
electric, telegraph and telephone wires, conduits,
meters and other apparatus; and, provide for the
correction, condemnation or removal of the same
when found to be dangerous, defective or otherwise
hazardous to the welfare of the inhabitants;
(x) Subject to the availability of funds and to existing
laws, rules and regulations, establish and provide for
the operation of vocational and technical schools and
similar post-secondary institutions and, with the
approval of the Department of Education. Culture and
Sports, fix and collect reasonable fees and other
school charges on said institutions, subject to
existing laws on tuition fees;
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(xi) Establish a scholarship fund for poor but
deserving students residing within the municipality in
schools located within its jurisdiction;
(xii) Approve measures and adopt quarantine
regulations to prevent the introduction and spread of
diseases;
(xiii) Provide for an efficient and effective system of
solid waste and garbage collection disposal and
prohibit littering and the placing or throwing of
garbage, refuse and other filth and wastes;
(xiv) Provide for the care of paupers, the aged, the
sick, persons of unsound mind, disabled persons,
abandoned minors, juvenile delinquents, drug
dependents, abused children and other needy and
disadvantaged persons, particularly children and
youth below eighteen (18) years of age and, subject to
availability of funds, establish and provide for the
operation of centers and facilities for said needy and
disadvantaged persons;
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(xv) Establish and provide for the maintenance and
improvement of jails and detention centers, institute
sound jail management programs, and appropriate
funds for the subsistence of detainees and convicted
prisoners in the municipality;
(xvi) Establish a municipal council whose purpose is
the promotion of culture and the arts, coordinate with
government agencies and non-governmental
organizations and, subject to the availability of funds,
appropriate funds for the support and development of
the same; and
(xvi) Establish a municipal council for the orderly
which shall formulate policies and adopt measures
mutually beneficial to the elderly and to the
community; provide incentives for non-governmental
agencies and entities and, subject to the availability of
funds, appropriate funds to support programs and
projects for the benefit of the elderly; and
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ordinance.
(b) The members of the sangguniang bayan shall receive a
minimum monthly compensation corresponding to Salary
Grade twenty-four (24) as prescribed under R.A. No. 6758 and
the implementing guidelines issued pursuant thereto: Provided,
That, in municipalities in Metropolitan Manila Area and other
metropolitan political subdivisions, members of the
sangguniang bayan shall receive a minimum monthly
compensation corresponding to Salary grade twenty-five (25).
TITLE III
THE CITY
CHAPTER I
Role and Creation of the City
Section 448. Role of the City. - The city, consisting of more
urbanized and developed barangays. serves as a general purpose
government for the coordination and delivery of basic, regular, and
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direct services and effective governance of the inhabitants within its
Section 449. Manner of Creation. - A city may be created, divided,
merged, abolished, or its boundary substantially altered, only by an
Act of Congress, and subject to approval by a majority of the votes
cast in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. Except as may otherwise
be provided in such Act. the plebiscite shall be held within one
hundred twenty (120) days from the date of its effectivity.
Section 450. Requisites for Creation.
(a) A municipality or a cluster of barangays may be converted
into a component city if it has an average annual income, as
certified by the Department of Finance, of at least Twenty
million (P20,000,000.00) for the last two (2) consecutive years
based on 1991 constant prices, and if it has either of the
following requisites:
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(i) a contiguous territory of at least one hundred (100)
square kilometers, as certified by the Lands Management
Bureau; or
(ii) a population of not less than one hundred fifty
thousand (150,000) inhabitants, as certified by the National
Statistics Office:
Provided, That, the creation thereof shall not reduce the
land area, population, and income of the original unit or
units at the time of said creation to less than the minimum
requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be
properly identified by metes and bounds. The requirement on
land area shall not apply where the city proposed to be created
is composed of one (1) or more islands. The territory need not
be contiguous if it comprises two (2) or more islands.
accruing to the general fund, exclusive of specific funds,
transfers, and non-recurring income.
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Section 451. Cities, Classified. - A city may either be component or
highly urbanized: Provided, however, That the criteria established in
this Code shall not affect the classification and corporate status of
existing cities.
component cities whose charters prohibit their voters from voting
for provincial elective officials. Independent component cities shall
be independent of the province. Independent component cities are
those
Section 452. Highly Urbanized Cities.
(a) Cities with a minimum population of two hundred thousand
(200,000) inhabitants as certified by the National Statistics
Office, and within the latest annual income of at least Fifty
Million Pesos (P50,000,000.00) based on 1991 constant prices,
as certified by the city treasurer, shall be classified as highly
urbanized cities.
(b) Cities which do not meet above requirements shall be
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geographically located. If a component city is located within the
boundaries of two (2) or more provinces, such city shall be
considered a component of the province of which it used to be
a municipality.
(c) Qualified voters of highly urbanized cities shall remain
excluded from voting for elective provincial officials.
Unless otherwise provided in the Constitution or this Code,
qualified voters of independent component cities shall be
governed by their respective charters, as amended, on the
participation of voters in provincial elections.
Qualified voters of cities who acquired the right to vote for
elective provincial officials prior to the classification of said
cities as highly-urbanized after the ratification of the
Constitution and before the effectivity of this Code, shall
continue to exercise such right.
Section 453. Duty to Declare Highly Urbanized Status. - It shall be
the duty of the President to declare a city as highly urbanized within
thirty (30) days after it shall have met the minimum requirements
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prescribed in the immediately preceding section, upon proper
application therefor and ratification in a plebiscite by the qualified
voters therein.
CHAPTER II
City Officials in General
Section 454. Officials of the City Government.
(a) There shall be in each city a mayor, a vice-mayor,
sangguniang panlungsod members, a secretary to the
sangguniang panlungsod, a city treasurer, a city assessor, a
city accountant, a city budget officer, a city planning and
development coordinator, a city engineer, a city health officer, a
city civil registrar, a city administrator, a city legal officer, a city
veterinarian, a city social welfare and development officer, and
a city general services officer.
(b) In addition thereto, the city mayor may appoint a city
architect, a city information officer, a city agriculturist, a city
population officer, a city environment and natural resources
officer, and a city cooperatives officer.
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The appointment of a city population officer shall be optional in
the city: Provided, however, That cities which have existing
population offices shall continue to maintain such offices for a
period of five (5) years from the date of the effectivity of this
Code, after which said offices shall become optional.
(c) The sangguniang panlungsod may:
(a) and (b) hereof;
out the purposes of the city government; or
another in the interest of efficiency and economy.
(d) Unless otherwise provided herein, heads of departments
and offices shall be appointed by the city mayor with the
concurrence of the majority of all the sangguniang panlungsod
members, subject to civil service law, rules and regulations.
The sangguniang panlungsod shall act on the appointment
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within fifteen (15) days from the date of its submission,
otherwise the same shall be deemed confirmed.
(e) Elective and appointive city officials shall receive such
compensation, allowances, and other emoluments as may be
determined by law or ordinance, subject to the budgetary
limitations on personal services prescribed under Title Five,
Book II of this Code: Provided, That, no increase in
compensation of the mayor, vice-mayor and sangguniang
panlungsod members shall take effect until after the expiration
of the full term of the said local officials approving such
increase.
CHAPTER III
Officials and Offices Common to All Cities
ARTICLE I
The City Mayor
Section 455. Chief Executive; Powers, Duties and Compensation.
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(a) The city mayor, as chief executive of the city government,
shall exercise such powers and perform such duties and
functions as provided by this Code and other laws.
purpose of which is the general welfare of the city and its
inhabitants pursuant to Section 16 of this Code, the city mayor
shall:
programs, projects, services, and activities of the city
government. and in this connection, shall:
(i) Determine the guidelines of city policies and be
responsible to the sangguniang panlungsod for the
program of government;
(ii) Direct the formulation of the city development plan,
with the assistance of the city development council,
and upon approval thereof by the sangguniang
panlungsod, implement the same;
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(iii) Present the program of government and propose
policies and projects for the consideration of the
sangguniang panlungsod at the opening of the regular
session of the sangguniang panlungsod every
calendar year and as often as may be deemed
necessary as the general welfare of the inhabitants
and the needs of the city government may require;
sangguniang panlungsod and as often as may be
deemed necessary, provide such information and data
needed or requested by said sanggunian in the
and wages are wholly or mainly paid out of city funds
and whose appointments are not otherwise provided
for in this Code, as well as those he may be
(vi) Represent the city in all its business transactions
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obligations, and such other documents upon authority
of the sangguniang panlungsod or pursuant to law or
ordinance;
(viii) Determine the time, manner and place of
payment of salaries or wages of the officials and
employees of the city, in accordance with law or
ordinance;
(ix) Allocate and assign office space to city and other
officials and employees who, by law or ordinance, are
entitled to such space in the city hall and other
buildings owned or leased by the city government;
of the city faithfully discharge their duties and
functions as provided by law and this Code, and
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city who may have committed an offense in the
performance of his official duties;
of all offices, officials, agents or employees of the city
and, in aid of his executive powers and authority,
require all national officials and employees stationed
in or assigned to the city to make available to him
such books, records, and other documents in their
custody, except those classified by law as
confidential;
(xii) Furnish copies of executive orders issued by him,
to the provincial governor in the case of component
city mayors, to the Office of the President in the case
of highly-urbanized city mayors and to their
respective metropolitan council chairmen in the case
of mayors of cities in the Metropolitan Manila Area
and other metropolitan political subdivisions, within
seventy-two (72) hours after their issuances;

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(xiii) Visit component barangays of the city at least
once every six (6) months to deepen his
understanding of problems and conditions, listen and
give appropriate counsel to, local officials and
inhabitants, inform the component barangay officials
and inhabitants of general laws and ordinances which
especially concern them, and otherwise conduct visits
and inspections to ensure that the governance of the
city will improve the quality of life of the inhabitants;
the monetary value of their leave credits in
accordance with law;
(xv) Authorize official trips of city officials and
employees outside of the city for a period not
stationed in or assigned to the city to advise him on
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recommendations thereon; coordinate with said
official or employee in the formulation and
implementation of plans, programs and projects; and,
when appropriate, initiate an administrative or judicial
action against a national government official or
employee who may have committed an offense in the
performance of his official duties while stationed in or
assigned to the city;
(xvii) Authorize payment for medical care, necessary
transportation, subsistence, hospital or medical fees
of city officials and employees who are injured while
in the performance of their duties and functions,
subject to availability of funds;
(xviii) Solemnize marriage, any provision of law to the
contrary notwithstanding;
(xix) Conduct an annual palarong panlungsod, which
shall feature traditional sports and disciplines
included in national and international games, in
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coordination with the Department of Education,
Culture and Sports; and
(xx) Submit to the provincial governor, in case of
component cities; to the Office of the President, in the
case of highly-urbanized cities; to their respective
metropolitan authority council chairmen and to the
Office of the President, in case of cities of the
Metropolitan Manila Area and other metropolitan
political subdivisions, the following reports: an annual
report containing a summary of all matters pertinent
to the management, administration and development
of the city and all information and data relative to its
political, social and economic conditions; and
supplemental reports when unexpected events and
situations arise at any time during the year,
particularly when man-made or natural disasters or
calamities affect the general welfare of the city,
province, region or country;
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governance of the city and in the exercise of the
appropriate corporate powers provided for under Section
22 of this Code, implement all approved policies,
programs, projects, services and activities of the city and,
in addition to the foregoing, shall:
(i) Ensure that the acts of the city's component
barangays and of its officials and employees are
within the scope of their prescribed powers, duties
and functions;
(ii) Call conventions, conferences, seminars, or
city, including provincial officials and national
officials and employees stationed in or assigned to
the city, at such time and place and on such subject
as he may deem important for the promotion of the
general welfare of the local government unit and its
inhabitants;
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(ii) Issue such executive orders for the faithful and
appropriate enforcement and execution of laws and
ordinances;
(v) Act as the deputized representative of the National
Police Commission, formulate the peace and order
plan of the city and upon its approval, implement the
same; and as such exercise general and operational
control and supervision over the local police forces in
the city, in accordance with R.A. No. 6975;
(vi) Call upon the appropriate law enforcement
agencies to suppress disorder, riot, lawless violence,
rebellion or sedition, or to apprehend violators of the
law when public interest so requires and the city
police forces are inadequate to cope with the
situations or the violators;
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those resources and revenues programmed for agro-
industrial development and countryside growth and
progress and, relative thereto, shall:
budget preparations process under Title Five, Book II
of this Code;
the executive and supplemental budgets of the city for
the ensuing calendar year in the manner provided for
under Title Five, Book II of this Code;
city are collected, and that city funds are applied to
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obligations of the city, in accordance with law or
ordinance;
(v) Issue permits, without need of approval therefor
from any national agency, for the holding of activities
for any charitable or welfare purpose, excluding
prohibited games of chance or shows contrary to law,
public policy and public morals;
(vi) Require owners of illegally constructed houses,
buildings or other structures to obtain the necessary
permit, subject to such fines and penalties as may be
imposed by law or ordinance, or to make necessary
changes in the construction of the same when said
construction violates any law or ordinance, or to order
the demolition or removal of said house, building or
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structure within the period prescribed by law or
ordinance;
(vii) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest, and other
resources of the city; provide efficient and effective
property and supply management in the city; and
protect the funds, credits, rights and other properties
of the city; and
(viii) Institute or cause to be instituted administrative
or judicial proceedings for violation of ordinances in
the collection of taxes, fees or charges, and for the
recovery of funds and property; and cause the city to
be defended against all suits to ensure that its
interests, resources and rights shall be adequately
protected;
this Code and, in addition thereto, shall:
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(i) Ensure that the construction and repair of roads
and highways funded by the national government
shall be, as far as practicable, carried out in a spatially
contiguous manner and in coordination with the
construction and repair of the roads and bridges of
the city, and in the case of component cities, of the
city and of the province; and
services, including public works and infrastructure
programs, rendered by national offices in the case of
highly urbanized and independent component cities,
and by national and provincial offices in the case of
component cities; and
ordinance.
(c) During his incumbency, the city mayor shall hold office in
the city hall.
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(d) The city mayor shall receive a minimum monthly
compensation corresponding to Salary Grade Thirty (30) as
prescribed under R.A. No. 6758 and the implementing
ARTICLE II
The City Vice-Mayor
Section 456. Powers, Duties and Compensation.
(a) The city vice-mayor shall:
(1) Be the presiding officer of the sangguniang panlungsod
and sign all warrants drawn on the city treasury for all
expenditures appropriated for the operation of the
sangguniang panlungsod;
panlungsod, except those whose manner of appointment
is specifically provided in this Code;
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(3) Assume the office of the city mayor for the unexpired
term of the latter in the event of permanent vacancy as
provided for in Section 44, Book I of this Code;
functions of the city mayor in cases of temporary vacancy
as provided for in Section 46, Book I of this Code; and
ordinance.
(b) The city vice-mayor shall receive a monthly compensation
corresponding to Salary Grade twenty eight (28) for a highly
urbanized city and Salary Grade twenty-six (26) for a
component city, as prescribed under R.A. No. 6758 and the
implementing guidelines issued pursuant thereto.
ARTICLE III
The Sangguniang Panlungsod
Section 457. Composition
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(a) The sangguniang panlungsod, the legislative body of the
city, shall be composed of the city vice-mayor as presiding
officer, the regular sanggunian members, the president of the
city chapter of the liga ng mga barangay, the president of the
panlungsod na pederasyon ng mga sangguniang kabataan, and
the sectoral representatives, as members.
days prior to the holding of the local elections, one (1) from
agricultural or industrial workers; and one (1) from the other
sectors, including the urban poor, indigenous cultural
(c) The regular members of the sangguniang panlungsod and
the sectoral representatives shall be elected in the manner as
may be provided for by law.
Section 458. Powers, Duties, Functions and Compensation.
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(a) The sangguniang panlungsod, as the legislative body of the
city, shall enact ordinances, approve resolutions and
appropriate funds for the general welfare of the city and its
inhabitants pursuant to Section 16 of this Code and in the
proper exercise of the corporate powers of the city as provided
for under Section 22 of this Code, and shall:
for an efficient and effective city government, and in this
connection, shall:
sangguniang barangay and executive orders issued
by the punong barangay to determine whether these
are within the scope of the prescribed powers of the
sanggunian and of the punong barangay;
for violation of said ordinances;
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exceeding Five thousand pesos (P5,000.00) or an
imprisonment for a period not exceeding one (1) year,
or both in the discretion of the court, for the violation
of a city ordinance;
city from the harmful effects of man-made or natural
disasters and calamities, and to provide relief services
and assistance for victims during and in the aftermath
of said disasters or calamities and their return to
productive livelihood following said events;

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and such other activities inimical to the welfare and
morals of the inhabitants of the city.
pollution, acceleration of eutrophication of rivers and
officials and employees of the city;
(viii) Determine the positions and the salaries, wages,

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city funds and provide for expenditures necessary for
the proper conduct of programs, projects, services,
and activities of the city government;
fills up a temporary vacancy or grant honorarium to
therefor, to ensure the safety and protection of all city
government property, public documents, or records
such as those relating to property inventory, land
ownership, records of births, marriages, deaths,
interest in the offices and departments of the city
government;
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(xi) When the finances of the city government allow,
provide for additional allowances and other benefits
to judges, prosecutors, public elementary and high
school teachers, and other national government
officials stationed in or assigned to the city;
(xii) Provide legal assistance to barangay officials
who, in the performance of their official duties or on
the occasion thereof, have to initiate judicial
proceedings or defend themselves against legal
action; and
(xiii) Provide for group insurance or additional
insurance coverage for all barangay officials,
including members of barangay tanod brigades and
other service units, with public or private insurance
companies, when the finances of the city government
allow said coverage;
and priorities of the city as provided for under Section 18

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of this Code, with particular attention to agro-industrial
development and city-wide growth and progress, and
relative thereto, shall:
(i) Approve the annual and supplemental budgets of
the city government and appropriate funds for specific
programs, projects, services and activities of the city,
or for other purposes not contrary to law, in order to
promote the general welfare of the city and its
inhabitants;
the members of the sangguniang panlungsod, enact
reliefs;
and upon the majority vote of all the members of the
sangguniang panlungsod, authorize the city mayor to

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negotiate and contract loans and other forms of
indebtedness;
the members of the sangguniang panlungsod, enact
the city; and, upon the majority vote of all the
members of the sangguniang panlungsod, authorize
the city mayor to lease to private parties such public
buildings held in a proprietary capacity, subject to
existing laws, rules and regulations;
use of property within the jurisdiction of the city;
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(vii) Adopt a comprehensive land use plan for the city:
Provided, That in the case of component cities, the
formulation, adoption or modification of said plan
shall be in coordination with the approved provincial
comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the city,
subject to the pertinent provisions of this Code;
(ix) Enact integrated zoning ordinances in
consonance with the approved comprehensive land
use plan, subject to existing laws, rules and
regulations; establish fire limits or zones, particularly
in populous centers; and regulate the construction,
repair or modification of buildings within said fire
limits or zones in accordance with the provisions of
the Fire Code;
(x) Subject to national law, process and approve
subdivision plans for residential, commercial, or
industrial purposes and other development purposes,
and to collect processing fees and other charges, the

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proceeds of which shall accrue entirely to the city:
Provided, however, That where approval of a national
agency or office is required, said approval shall not be
withheld for more than thirty (30) days from receipt of
the application. Failure to act on the application within
the period stated above shall be deemed as approval
thereof;
(xi) Subject to the provisions of Book II of this Code,
grant the exclusive privilege of constructing fish
corrals or fish pens, or the taking or catching of
bangus fry, prawn fry or kawag-kawag, or fry of any
species or fish within the city waters;
(xii) With the concurrence of at least two-thirds (2/3) of
all the members of the sangguniang panlungsod,
grant tax exemptions, incentives or reliefs to entities
engaged in community growth-inducing industries,
subject to the provisions of Chapter 5, Title I, Book II
of this Code;
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(xiii) Grant loans or provide grants to other local
government units or to national, provincial, and city
charitable, benevolent or educational institutions:
Provided, That, said institutions are operated and
maintained within the city;
(xiv) Regulate the numbering of residential,
commercial and other buildings; and
(xv) Regulate the inspection, weighing and measuring
of articles of commerce.
(3) Subject to the provisions of Book II of this Code, enact
ordinances granting franchises and authorizing the
issuance of permits or licenses, upon such conditions and
for such purposes intended to promote the general welfare
of the inhabitants of the city and pursuant to this
legislative authority shall:
services rendered by the city government to private
persons or entities;
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(ii) Regulate or fix license fees for any business or
practice of profession within the city and the
conditions under which the license for said business
or practice of profession may be revoked and enact
ordinances levying taxes thereon;
(iii) Provide for and set the terms and conditions
under which public utilities owned by the city shall be
operated by the city government, and prescribe the
conditions under which the same may be leased to
private persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for
signs, signboards, or billboards at the place or places
where the profession or business advertised thereby
is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize
and license the establishment, operation, and
maintenance of cockpits, and regulate cockfighting
and commercial breeding of gamecocks: Provided,
That existing rights should not be prejudiced;

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(vi) Subject to the guidelines prescribed by the
Department of Transportation and Communications,
regulate the operation of tricycles and grant
franchises for the operation thereof within the
territorial jurisdiction of the city;
(vii) Upon approval by a majority vote of all the
members of the sangguniang panlungsod: grant a
franchise to any person, partnership, corporation, or
cooperative to do business within the city; establish,
construct, operate and maintain ferries, wharves,
markets or slaughterhouses; or undertake such other
activities within the city as may be allowed by existing
laws: Provided, That, cooperatives shall be given
preference in the grant of such a franchise.
(4) Regulate activities relative to the use of land, buildings
and structures within the city in order to promote the
general welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance;
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(ii) Require that buildings and the premises thereof
and any land within the city be kept and maintained in
a sanitary condition; impose penalties for any
violation thereof; or, upon failure to comply with said
requirement, have the work done at the expense of the
owner, administrator or tenant concerned; or require
the filling up of any land or premises to a grade
necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other wastes
from hospitals, clinics and other similar
establishments;
(iv) Regulate the establishment, operation and
maintenance of cafes, restaurants, beerhouses,
hotels, motels, inns, pension houses, lodging houses,
and other similar establishments, including tourist
guides and transports;
(v) Regulate the sale, giving away or dispensing of
any intoxicating malt, vino, mixed or fermented
liquors at any retail outlet;

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(vi) Regulate the establishment and provide for the
inspection of steam boilers or any heating device in
buildings and the storage of inflammable and highly
combustible materials within the city;
(vii) Regulate the establishment, operation, and
maintenance of any entertainment or amusement
facilities, including theatrical performances, circuses,
billiard pools, public dancing schools, public dance
halls, sauna baths, massage parlors, and other places
for entertainment or amusement; regulate such other
events or activities for amusement or entertainment,
particularly those which tend to disturb the
community or annoy the inhabitants, or require the
suspension or suppression of the same; or, prohibit
certain forms of amusement or entertainment in order
to protect the social and moral welfare of the
community;
(viii) Provide for the impounding of stray animals;
regulate the keeping of animals in homes or as part of

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a business, and the slaughter, sale or disposition of
the same; and adopt measures to prevent and
penalize cruelty to animals; and
(ix) Regulate the establishment, operation and
maintenance of funeral parlors and the burial or
cremation of the dead, subject to existing laws, rules
and regulations.
and effective delivery of the basic services and facilities as
provided for under Section 17 of this Code, and in addition
(i) Provide for the establishment, maintenance,
protection, and conservation of communal forests and
watersheds, tree parks, greenbelts, mangroves, and
other similar forest development projects;
(ii) Establish markets, slaughterhouses or animal
corrals and authorize the operation thereof by the city
government; and regulate the construction and
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operation of private markets, talipapas or other similar
buildings and structures;
(iii) Authorize the establishment, maintenance and
operation by the city government of ferries, wharves,
and other structures intended to accelerate
productivity related to marine and seashore or
offshore activities;
(iv) Regulate the preparation and sale of meat, poultry,
fish, vegetables, fruits, fresh dairy products, and other
foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys,
sidewalks, bridges, parks and other public places and
approve the construction, improvement repair and
maintenance of the same; establish bus and vehicle
stops and terminals or regulate the use of the same by
privately-owned vehicles which serve the public;
regulate garages and the operation of conveyances
for hire; designate stands to be occupied by public
vehicles when not in use; regulate the putting up of

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signs, signposts, awnings and awning posts on the
streets; and provide for the lighting, cleaning and
sprinkling of streets; and public places;
(vi) Regulate traffic on all streets and bridges; prohibit
encroachments or obstacles thereon, and when
necessary in the interest of public welfare, authorize
the removal or encroachments and illegal
constructions in public places;
(vii) Subject to existing laws, establish and provide for
the maintenance, repair and operation of an efficient
waterworks system to supply water for the inhabitants
and to purify the source of the water supply; regulate
the construction, maintenance, repair and use of
hydrants, pumps, cisterns and reservoirs; protect the
purity and quantity of the water supply of the city and,
for this purpose, extend the coverage of appropriate
ordinances over all territory within the drainage area
of said water supply and within one hundred (100)
meters of the reservoir, conduit, canal, aqueduct,

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pumping station, or watershed used in connection
with the water service; and regulate the consumption,
use or wastage of water and fix and collect charges
therefor;
(viii) Regulate the drilling and excavation of the
ground for the laying of water, gas, sewer, and other
pipes and the construction, repair and maintenance of
public drains, sewers, cesspools, tunnels and similar
structures; regulate the placing of poles and the use
of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes.
live wires and other similar hazards to life and
property; and regulate the construction and use of
private water closets, privies and other similar
structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching,
installing, repair and construction of all gas mains,
electric, telegraph and telephone wires, conduits,
meters and other apparatus; and provide for the

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correction, condemnation or removal of the same
when found to be dangerous, defective, or otherwise
hazardous to the welfare of the inhabitants;
(x) Subject to the availability of funds and to existing
laws, rules and regulations, establish and provide for
the operation of vocational and technical schools and
similar post-secondary institutions and, with the
approval of the Department of Education, Culture and
Sports and subject to existing law on tuition fees, fix
and collect reasonable tuition fees and other school
charges in educational institutions supported by the
city government;
(xi) Establish a scholarship fund for the poor but
deserving students in schools located within its
jurisdiction or for students residing within the city;
(xii) Approve measures and adopt quarantine
diseases;
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(xiii) Provide for an efficient and effective system of
solid waste and garbage collection and disposal;
prohibit littering and the placing or throwing of
garbage, refuse and other filth and wastes;
(xiv) Provide for the care of disabled persons,
paupers, the aged, the sick, persons of unsound mind,
abandoned minors, juvenile delinquents, drug
dependents, abused children and other needy and
disadvantaged persons, particularly children and
youth below eighteen (18) years of age; and subject to
availability of funds, establish and provide for the
operation of centers and facilities for said needy and
disadvantaged persons;
(xv) Establish and provide for the maintenance and
improvement of jails and detention centers, institute a
sound jail management program, and appropriate
prisoners in the city;
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(xvi) Establish a city council whose purpose is the
promotion of culture and the arts, coordinate with
the same; and
(xvii) Establish a city council for the elderly which
shall formulate policies and adopt measures mutually
beneficial to the elderly and to the community;
provide incentives for non-governmental agencies
and entities and, subject to the availability of funds,
appropriate funds to support programs and projects
for the benefit of the elderly; and
ordinance.
(b) The members of the sangguniang panlungsod of component
cities shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-five (25) and members of

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the sangguniang panlungsod of highly-urbanized cities shall
receive a minimum monthly compensation corresponding to
Salary Grade twenty-seven (27), as prescribed under R.A. 6758
and the implementing guidelines issued pursuant thereto.
TITLE IV
THE PROVINCE
CHAPTER I
Role and Creation of the Province
Section 459. Role of the Province. - The province, composed of
cluster of municipalities, or municipalities and component cities,
and as a political and corporate unit of government, serves as
dynamic mechanism for developmental processes and effective
governance of local government units within its territorial
jurisdiction.
Section 460. Manner of Creation. - A province may be created,
divided, merged, abolished, or its boundary substantially altered,
only by an Act of Congress and subject to approval by a majority of
the votes cast in a plebiscite to be conducted by the COMELEC in
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the local government unit or units directly affected. The plebiscite
shall be held within one hundred twenty (120) days from the date of
effectivity of said Act, unless otherwise provided therein.
Section 461. Requisites for Creation.
(a) A province may be created if it has an average annual
income, as certified by the Department of Finance, of not less
than Twenty million pesos (P20,000,000.00) based on 1991
constant prices and either of the following requisites:
(i) a contiguous territory of at least two thousand (2,000)
square kilometers, as certified by the Lands Management
Bureau; or
(ii) a population of not less than two hundred fifty
thousand (250,000) inhabitants as certified by the National
Statistics Office:
Provided, That, the creation thereof shall not reduce the
land area, population, and income of the original unit or
units at the time of said creation to less than the minimum
requirements prescribed herein.

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(b) The territory need not be contiguous if it comprise two (2) or
more islands or is separated by a chartered city or cities which
do not contribute to the income of the province.
accruing to the general fund, exclusive of special funds, trust
funds, transfers and non-recurring income.
Section 462. Existing Sub-Provinces. - Existing sub-provinces are
hereby converted into regular provinces upon approval by a
majority of the votes cast in a plebiscite to be held in the said
subprovinces and the original provinces directly affected. The
plebiscite shall be conducted by the COMELEC simultaneously with
the national elections following the effectivity of this Code.
The new legislative districts created as a result of such conversion
shall continue to be represented in Congress by the duly-elected
representatives of the original districts out of which said new
provinces or districts were created until their own representatives
shall have been elected in the next regular congressional elections
and qualified.
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The incumbent elected officials of the said subprovinces converted
into regular provinces shall continue to hold office until June 30,
1992. Any vacancy occurring in the offices occupied by said
incumbent elected officials, or resulting from expiration of their
terms of office in case of a negative vote in the plebiscite results,
shall be filled by appointment by the President. The appointees shall
hold office until their successors shall have been elected in the
regular local elections following the plebiscite mentioned herein and
qualified. After effectivity of such conversion, the President shall fill
up the position of governor of the newly-created province through
appointment if none has yet been appointed to the same as
hereinbefore provided, and shall also appoint a vice-governor and
the other members of the sangguniang panlalawigan, all of whom
shall likewise hold office until their successors shall have been
elected in the next regular local elections and qualified.
All qualified appointive officials and employees in the career service
of the said subprovinces at the time of their conversion into regular
provinces shall continue in office in accordance with civil service
law, rules and regulations.
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CHAPTER II
Provincial Officials in General
Section 463. Officials of the Provincial Government.
(a) There shall be in each province a governor, a vice-governor,
members of the sangguniang panlalawigan, a secretary to the
sangguniang panlalawigan, a provincial treasurer, a provincial
assessor, a provincial accountant, a provincial engineer, a
provincial budget officer, a provincial planning and
development coordinator, a provincial legal officer, a provincial
administrator, a provincial health officer, a provincial social
welfare and development officer, a provincial general services
officer, a provincial agriculturist, and a provincial veterinarian.
(b) In addition thereto, the governor may appoint a provincial
population officer, a provincial natural resources and
environment officer, a provincial cooperative officer, a
provincial architect, and a provincial information officer.
The appointment of a provincial population officer shall be
optional in the province: Provided, however, That provinces
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which have existing population offices shall continue to
maintain such offices for a period of five (5) years from the date
of the effectivity of this Code, after which said offices shall
become optional.
(c) The sangguniang panlalawigan may:
(a) and (b) hereof;
out the purposes of the provincial government; or
another in the interest of efficiency and economy;
(d) Unless otherwise provided herein, heads of
departments and offices shall be appointed by the
governor with the concurrence of the majority of all the
sangguniang panlalawigan members, subject to civil
service law, rules and regulations. The sangguniang
panlalawigan shall act on the appointment within fifteen
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(15) days from the date of its submission; otherwise the
same shall be deemed confirmed;
(e) Elective and appointive provincial officials shall receive
such compensation, allowances, and other emoluments as may
be determined by law or ordinance, subject to the budgetary
limitations on personal services prescribed under Title Five,
Book II of this Code: Provided, That, no increase in
compensation shall take effect until after the expiration of the
full term of all the elective officials approving such increase.
Section 464. Residence and Office. - During the incumbency of the
governor, he shall have his official residence in the capital of the
province. All elective and appointive provincial officials shall hold
office in the provincial capital: Provided, That, upon resolution of
the sangguniang panlalawigan, elective and appointive provincial
officials may hold office in any component city or municipality
within the province for a period of not more than seven (7) days for
any given month.
CHAPTER III
Officials and Offices Common to All Provinces

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ARTICLE I
The Provincial Governor
Section 465. The Chief Executive: Powers, Duties, Functions, and
Compensation.
(a) The provincial governor, as the chief executive of the
provincial government, shall exercise such powers and perform
such duties and functions as provided by this Code and other
laws.
purpose of which is the general welfare of the province and its
inhabitants pursuant to Section 16 of this Code, the provincial
governor shall:
programs, projects, services, and activities of the
provincial government, and in this connection, shall:
(i) Determine the guidelines of provincial policies and
be responsible to the sangguniang panlalawigan for
the program of government;

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(ii) Direct the formulation of the provincial
development plan, with the assistance of the
provincial development council, and upon approval
thereof by the sangguniang panlalawigan, implement
the same;
(iii) Present the program of government and propose
policies and projects for the consideration of the
sangguniang panlalawigan at the opening of the
regular session of the sangguniang panlalawigan
every calendar year and as after as may be deemed
necessary as the general welfare of the inhabitants
and the needs of the provincial government may
require;
sangguniang panlalawigan and as often as may be
deemed necessary, provide such information and data
needed or requested by said sanggunian in the
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and wages are wholly or mainly paid out of provincial
funds and whose appointments are not otherwise
provided for in this Code, as well as those he may be
(vi) Represent the province in all its business
transactions and sign in its behalf all bonds,
contracts, and obligations, and such other documents
upon authority of the sangguniang panlalawigan or
(viii) Determine the time, manner and place of
payment of salaries or wages of the officials and
employees of the province, in accordance with law or
ordinance;
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(ix) Allocate and assign office space to provincial and
other officials and employees who, by law or
ordinance, are entitled to such space in the provincial
capitol and other buildings owned or leased by the
provincial government;
of the province faithfully discharge their duties and
functions as provided by law and this Code, and
province who may have committed an offense in the
performance of his official duties;
of all offices, officials, agents or employees of the
province and, in aid of his executive powers and
authority, require all national officials and employees
stationed in the province to make available to him
such books, records, and other documents in their
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custody, except those classified by law as
confidential;
(xii) Furnish copies of executive orders issued by him
to the Office of the President within seventy-two (72)
hours after their issuance;
(xiii) Visit component cities and municipalities of the
province at least once every six (6) months to deepen
his understanding of problems and conditions, listen
and give appropriate counsel to local officials and
inhabitants, inform the officials and inhabitants of
component cities and municipalities of general laws
and ordinances which especially concern them, and
otherwise conduct visits and inspections to ensure
that the governance of the province will improve the
quality of life of the inhabitants;
the monetary value of leave credits in accordance with
law;
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(xv) Authorize official trips of provincial officials and
employees outside of the province for a period not
stationed in or assigned to the province to advise him
on matters affecting the province and to make
recommendations thereon; coordinate with said
official or employee in the formulation and
implementation of plans, programs and projects; and
when appropriate, initiate an administrative or judicial
action against a national government official or
employee who may have committed an offense in the
performance of his official duties while stationed in or
assigned to the province;
(xvii) Authorize payment for medical care, necessary
transportation, subsistence, hospital or medical fees
of provincial officials and employees who are injured
while in the performance of their official duties and
functions, subject to availability of funds;

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(xviii) Represent the province in inter-provincial or
regional sports councils or committees, and
coordinate the efforts of component cities or
municipalities in the regional or national palaro or
sports development activities;
(xix) Conduct an annual palarong panlalawigan, which
shall feature traditional sports and disciplines
included in national and international games in
coordination with the Department of Education,
Culture and Sports; and
(xx) Submit to the Office of the President the following
reports: an annual report containing a summary of all
matters pertinent to the management, administration
and development of the province and all information
and data relative to its political, social and economic
conditions; and supplemental reports when
unexpected events and situations arise at any time
during the year, particularly when man-made or
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natural disasters or calamities affect the general
welfare of the province, region or country;
governance of the province and the exercise of the
appropriate corporate powers provided for under Section
22 of this Code, implement all approved policies,
programs, projects, services and activities of the province
and, in addition to the foregoing, shall:
(i) Ensure that the acts of the component cities and
municipalities of the province and of its officials and
employees are within the scope of their prescribed
powers, duties and functions;
(ii) Call conventions, conferences, seminars, or
province and its component cities and municipalities,
including national officials and employees stationed
in or assigned to the province, at such time and place
and on such subject as he may deem important for the
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promotion of the general welfare of the province and
its inhabitants;
(iii) Issue such executive orders for the faithful and
appropriate enforcement and execution of laws and
ordinances;
(v) In coordination with the mayors of component
cities and municipalities and the National Police
Commission, formulate the peace and order plan of
the province and upon its approval, implement the
same in accordance with R.A. No. 6975;
(vi) Call upon the appropriate national law
enforcement agencies to suppress disorder, riot,
lawless violence, rebellion or sedition or to apprehend
violators of the law when public interest so requires
and the police forces of the component city or
municipality where the disorder or violation is
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happening are inadequate to cope with the situation
or the violators;
those resources and revenues programmed for agro-
progress and, relative thereto, shall:
budget preparation process under Title Five, Book II
of this Code;
the executive and supplemental budgets of the
province for the ensuing calendar year in the manner
provided for under Title Five, Book II of this Code;
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province are collected, and that provincial funds are
applied to the payment of expenses and settlement of
obligations of the province, in accordance with law or
ordinance;
(v) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest and other
resources of the province, in coordination with the
mayors of component cities and municipalities;
provide efficient and effective property and supply
management in the province; and protect the funds,
credits, rights, and other properties of the province;
and
(vi) Institute or cause to be instituted administrative or
judicial proceedings for violation of ordinances in the

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collection of taxes, fees or charges, and for the
recovery of funds and property, and cause the
province to be defended against all suits to ensure
that its interests, resources and rights shall be
adequately protected.
this Code, and in addition thereto, shall:
(i) Ensure that the construction and repair of
roads and highways funded by the national
government shall be, as far as practicable,
carried out in a spatially contiguous manner and
in coordination with the construction and repair
of the roads and bridges of the province and of
its component cities and municipalities; and
services by national offices for the province and
its component cities and municipalities, including
public works and infrastructure programs of the

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provincial government and its component cities
and municipalities;
ordinance.
(c) The provincial governor shall receive a minimum monthly
compensation corresponding to Salary Grade thirty (30)
prescribed under R.A. No. 6758 and the implementing
ARTICLE II
The Provincial Vice-Governor
Section 466. Powers, Duties, and Compensation.
(a) The vice-governor shall:
(1) Be the presiding officer of the sangguniang
panlalawigan and sign all warrants drawn on the provincial
treasury for all expenditures appropriated for the operation
of the sangguniang panlalawigan;
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panlalawigan, except those whose manner of appointment
is specially provided in this Code;
(3) Assume the office of the governor for the unexpired
term of the latter in the event of permanent vacancy as
provided for in Section 44, Book I of this Code;
functions of the governor in cases of temporary vacancy
as provided for in Section 46, Book I of this Code; and
ordinance.
(b) The vice-governor shall receive a monthly compensation
corresponding to Salary Grade twenty-eight (28) as prescribed
under R.A. No. 6758 and the implementing guidelines issued
pursuant thereto.
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ARTICLE III
The Sangguniang Panlalawigan
Section 467. Composition.
(a) The sangguniang panlalawigan, the legislative body of the
province, shall be composed of the provincial vice-governor as
presiding officer, the regular sanggunian members, the
president of the provincial chapter of the liga ng mga barangay,
the president of the panlalawigang pederasyon ng mga
sangguniang kabataan, the president of the provincial
federation of sanggunian members of municipalities and
component cities and the sectoral representatives, as
members.
days prior to the holding of the local elections, one (1) from the
agricultural or industrial workers; and one (1) from other
sectors including the urban poor, indigenous cultural

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(c) The regular members of the sangguniang panlalawigan and
the sectoral representatives shall be elected in the manner as
may be provided for by law.
Section 468. Powers, Duties, Functions and Compensation.
(a) The sangguniang panlalawigan, as the legislative body of
the province, shall enact ordinances, approve resolutions and
appropriate funds for the general welfare of the province and its
inhabitants pursuant to Section 16 of this Code in the proper
exercise of the corporate powers of the province as provided
for under Section 22 of this Code, and shall:
for an efficient and effective provincial government and, in
this connection, shall:
sangguniang of component cities and municipalities
and executive orders issued by the mayors of said
component units to determine whether these are
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within the scope of the prescribed powers of the
sanggunian and of the mayor;
for the violation of said ordinances;
exceeding Five thousand pesos (P5,000.00) or
imprisonment not exceeding one (1) year, or both in
the discretion of the court, for the violation of a
provincial ordinance;
province from harmful effects of man-made or natural
disasters and calamities, and to provide relief services
and assistance for victims during and in the aftermath
of said disasters and calamities and their return to
productive livelihood following said events;
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and other activities inimical to the welfare and morals
of the inhabitants of the province;
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pollution acceleration of eutrophication of rivers and
officials and employees of the province;
(viii) Determine the positions and the salaries, wages,
provincial funds and provide for expenditures
necessary for the proper conduct of programs,
projects, services, and activities of the provincial
government;
fills up a temporary vacancy, or grant honorarium to
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therefor, to ensure the safety and protection of all
provincial government property, public documents, or
records such as those relating to property inventory,
land ownership, records of births, marriages, deaths,
interest in the offices and departments of the
provincial government; and
(xi) When the finances of the provincial government
allow, provide for additional allowances and other
benefits to judges, prosecutors, public elementary
and high school teachers, and other national
government officials stationed or assigned to the
province.
and priorities of the province as provided for under
Section 18 of this Code, with particular attention to agro-

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progress and relative thereto, shall:
(i) Enact the annual and supplemental appropriations
of the provincial government and appropriate funds
for specific programs, projects, services and activities
of the province, or for other purposes not contrary to
law, in order to promote the general welfare of the
province and its inhabitants;
the members of the sangguniang panlalawigan, enact
reliefs;
the members of the sangguniang panlalawigan,
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authorize the provincial governor to negotiate and
contract loans and other forms of indebtedness;
the members of the sangguniang panlalawigan, enact
the province; and upon the majority vote of all the
members of the sangguniang panlalawigan, authorize
the provincial governor to lease to private parties
such public buildings held in a proprietary capacity,
subject to existing laws, rules and regulations;
use of property within the jurisdiction of the province;
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(vii) Review the comprehensive land use plans and
zoning ordinances of component cities and
municipalities and adopt a comprehensive provincial
land use plan, subject to existing laws; and
(viii) Adopt measures to enhance the full
implementation of the national agrarian reform
program in coordination with the Department of
Agrarian Reform;
(3) Subject to the provisions of Book II of this Code, grant
franchises, approve the issuance of permits or licenses, or
enact ordinances levying taxes, fees and charges upon
such conditions and for such purposes intended to
promote the general welfare of the inhabitants of the
province, and pursuant to this legislative authority, shall:
services rendered by the provincial government to
private persons or entities; and
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(ii) Regulate and fix the license fees for such activities
as provided for under this Code.
and effective delivery of basic services and facilities as
provided for under Section 17 of this Code, and, in addition
(i) Adopt measures and safeguards against pollution
and for the preservation of the natural ecosystem in
the province, in consonance with approved standards
on human settlements and environmental sanitation;
(ii) Subject to applicable laws, facilitate or provide for
the establishment and maintenance of waterworks
system or district waterworks for supplying water to
inhabitants of component cities and municipalities;
(iii) Subject to the availability of funds and to existing
laws, rules and regulations, provide for the
establishment and operation of vocational and
technical schools and similar post-secondary
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institutions; and, with the approval of the Department
of Education, Culture and Sports and subject to
existing laws on tuition fees, fix reasonable tuition
fees and other school charges in educational
institutions supported by the provincial government;
(iv) Establish a scholarship fund for the poor but
deserving students in schools located within its
jurisdiction or for students residing within the
province;
(v) Approve measures and adopt quarantine
diseases within its territorial jurisdiction;
(vi) Provide for the care of paupers, the aged, the sick,
persons of unsound mind, abandoned minors, abused
children, disabled persons, juvenile delinquents, drug
dependents, and other needy and disadvantaged
persons, particularly children and youth below
eighteen (18) years of age; subject to availability of
funds, establish and support the operation of centers

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and facilities for said needy and disadvantaged
persons; and facilitate efforts to promote the welfare
of families below the poverty threshold, the
disadvantaged, and the exploited;
(vii) Establish and provide the maintenance and
improvement of jails and detention centers, institute a
sound jail management program, and appropriate
prisoners in the province;
(viii) Establish a provincial council whose purpose is
the promotion of culture and the arts, coordinate with
the same;
(ix) Establish a provincial council for the elderly which
shall formulate policies and adopt measures mutually
beneficial to the elderly and to the province; and
subject to the availability of funds, appropriate funds

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to support programs and projects for the elderly; and
provide incentives for non-governmental agencies
and entities to support the programs and projects of
the elderly; and
ordinance.
(b) The members of the sangguniang panlalawigan shall receive
a minimum monthly compensation corresponding to Salary
Grade twenty-seven (27) as prescribed under R.A. No. 6758 and
the implementing guidelines issued pursuant thereto.
TITLE V
APPOINTED LOCAL OFFICIALS COMMON TO ALL MUNICIPALITIES,
CITIES AND PROVINCES
ARTICLE I
Secretary to the Sanggunian
Section 469. Qualifications, Powers and Duties.
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(a) There shall be a secretary to the sanggunian who shall be a
career official with the rank and salary equal to a head of
department or office.
(b) No person shall be appointed secretary to the sanggunian
unless he is a citizen of the Philippines, a resident of the local
government unit concerned, of good moral character, a holder
of a college degree preferably in law, commerce or public
administration from a recognized college or university, and a
first grade civil service eligible or its equivalent.
The appointment of a secretary to the sanggunian is mandatory
for provincial, city and municipal governments.
(c) The secretary to the sanggunian shall take charge of the
office of the secretary to the sanggunian and shall:
(1) Attend meetings of the sanggunian and keep a journal
of its proceedings;
(2) Keep the seal of the local government unit and affix the
same with his signature to all ordinances, resolutions, and
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other official acts of the sanggunian and present the same
to the presiding officer for his signature;
(3) Forward to the governor or mayor, as the case may be,
for approval, copies of ordinances enacted by the
sanggunian and duly certified by the presiding officer, in
the manner provided in Section 54 under Book I of this
Code;
(4) Forward to the sanggunian panlungsod or bayan
concerned, in the case of the sangguniang barangay, and
to the sangguniang panlalawigan concerned, in the case of
the sangguniang panlungsod of component cities or
sangguniang bayan, copies of duly approved ordinances,
in the manner provided in Sections 56 and 57 under Book I
of this Code;
(5) Furnish, upon request of any interested party, certified
copies of records of public character in his custody, upon
payment to the treasurer of such fees as may be
prescribed by ordinance;
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(6) Record in a book kept for the purpose, all ordinances
and resolutions enacted or adopted by the sanggunian,
with the dates of passage and publication thereof;
(7) Keep his office and all non-confidential records therein
open to the public during the usual business hours;
(8) Translate into the dialect used by the majority of the
inhabitants all ordinances and resolutions immediately
after their approval, and cause the publication of the same
together with the original version in the manner provided
under this Code; and
(9) Take custody of the local archives and, where
applicable, the local library and annually account for the
same; and
(d) Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance
relative to his position.
ARTICLE II
The Treasurer
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Section 470. Appointment, Qualifications, Powers, and Duties.
(a) The treasurer shall be appointed by the Secretary of Finance
from a list of at least three (3) ranking, eligible recommendees
of the governor or mayor, as the case may be, subject to civil
service law, rules and regulations.
(b) The treasurer shall be under the administrative supervision
of the governor or mayor, as the case may be, to whom he shall
report regularly on the tax collection efforts in the local
government unit;
(c) No person shall be appointed treasurer unless he is a citizen
of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college
degree preferably in commerce, public administration or law
from a recognized college or university, and a first grade civil
service eligible or its equivalent. He must have acquired
experience in treasury or accounting service for at least five (5)
years in the case of the city or provincial treasurer, and three
(3) years in the case of municipal treasurer.
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The appointment of a treasurer shall be mandatory for
provincial, city and municipal governments;
(d) The treasurer shall take charge of the treasury office,
perform the duties provided for under Book II of this Code, and
shall:
(1) Advise the governor or mayor, as the case may be, the
sanggunian, and other local government and national
officials concerned regarding disposition of local
government funds, and on such other matters relative to
public finance;
(2) Take custody of and exercise proper management of
the funds of the local government unit concerned;
(3) Take charge of the disbursement of all local
government funds and such other funds the custody of
which may be entrusted to him by law or other competent
authority;
(4) Inspect private commercial and industrial
establishments within the jurisdiction of the local

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government unit concerned in relation to the
implementation of tax ordinances, pursuant to the
provisions under Book II of this Code;
(5) Maintain and update the tax information system of the
local government unit;
(6) In the case of the provincial treasurer, exercise
technical supervision over all treasury offices of
component cities and municipalities; and
(e) Exercise such other powers and perform such other duties
Section 471. Assistant Treasurer.
(a) An assistant treasurer may be appointed by the Secretary of
Finance from a list of at least three (3) ranking, eligible
recommendees of the governor or mayor, subject to civil
service law, rules and regulations.
(b) No person shall be appointed assistant treasurer unless he
is a citizen of the Philippines, a resident of the local
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of a college degree preferably in commerce, public
administration, or law from a recognized college or university,
and a first grade civil service eligible or its equivalent. He must
have acquired at least five (5) years experience in the treasury
or accounting service in the case of the city or provincial
assistant treasurer and three (3) years in the case of municipal
assistant treasurer.
The appointment of an assistant treasurer shall be optional for
provincial, city and municipal governments;
(c) The assistant treasurer shall assist the treasurer and
perform such duties as the latter may assign to him. He shall
have authority to administer oaths concerning notices and
notifications to those delinquent in the payment of real property
tax and concerning official matters relating to the accounts of
the treasurer or otherwise arising in the offices of the treasurer
and the assessor.
ARTICLE III
The Assessor
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(a) No person shall be appointed assessor unless he is a citizen
concerned, of good moral character, a holder of a college
degree preferably in civil or mechanical engineering,
commerce, or any other related course from a recognized
college or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in real property
assessment work or in any related field for at least five (5) years
in the case of the city or provincial assessor, and three (3)
years in the case of the municipal assessor.
The appointment of an assessor shall be mandatory for
provincial, city and municipal governments.
(b) The assessor shall take charge of the assessor's office,
perform the duties provided under Book II of this Code, and
shall:
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(1) Ensure that all laws and policies governing the
appraisal and assessment of real properties for taxation
purposes are properly executed;
(2) Initiate, review, and recommend changes in policies
and objectives, plans and programs, techniques,
procedures and practices in the valuation and assessment
of real properties for taxation purposes;
(3) Establish a systematic method of real property
assessment;
(4) Install and maintain a real property identification and
accounting system;
(5) Prepare, install and maintain a system of tax mapping,
showing graphically all property subject to assessment
and gather all data concerning the same;
(6) Conduct frequent physical surveys to verify and
determine whether all real property within the province are
properly listed in the assessment rolls;
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(7) Exercise the functions of appraisal and assessment
primarily for taxation purposes of all real properties in the
(8) Prepare a schedule of the fair market value for the
different classes of real properties, in accordance with
Title Two under Book II of this Code;
(9) Issue, upon request of any interested party, certified
copies of assessment records of real property and all other
records relative to its assessment, upon payment of a
service charge or fee to the treasurer;
(10) Submit every semester a report of all assessments, as
well as cancellations and modifications of assessments to
the local chief executive and the sanggunian concerned;
(11) In the case of the assessor of a component city or
municipality attend, personally or through an authorized
representative, all sessions of the local board of
assessment appeals whenever his assessment is the
subject of the appeal, and present or submit any
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information or record in his possession as may be
required by the board; and
(12) In the case of the provincial assessor, exercise
technical supervision and visitorial functions over all
component city and municipal assessor, coordinate with
component city or municipal assessors in the conduct of
tax mapping operations and all other assessment
activities, and provide all forms of assistance therefor:
Provided, however, That, upon full provision by the
component city or municipality concerned to its assessor's
office of the minimum personnel, equipment, and funding
requirements as may be prescribed by the Secretary of
Finance, such functions shall be delegated to the said city
or municipal assessor; and
Section 473. Assistant Assessor.
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(a) No person shall be appointed assistant assessor unless he
of a college degree preferably in civil or mechanical
engineering, commerce, or any related course from a
recognized college or university, and a first grade civil service
eligible or its equivalent. He must have acquired experience in
assessment or in any related field for at least three (3) years in
the case of the city or provincial assistant assessor, and one (1)
year in the case of the city or provincial assistant assessor.
The appointment of an assistant assessor shall be optional for
(b) The assistant assessor shall assist the assessor and
perform such other duties as the latter may assign to him. He
shall have the authority to administer oaths on all declarations
of real property for purposes of assessments.
ARTICLE IV
The Accountant
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(a) No person shall be appointed accountant unless he is a
citizen of the Philippines, a resident of the local government
unit concerned, of good moral character, and a a certified
public accountant. He must have acquired experience in the
treasury or accounting service for at least five (5) years in the
case of the provincial or city accountant, and three (3) years in
the case of the municipal accountant.
The appointment of an accountant is mandatory for the
(b) The accountant shall take charge of both the accounting and
internal audit services of the local government unit concerned
and shall:
(1) Install and maintain an internal audit system in the local
government unit concerned;
(2) Prepare and submit financial statements to the
governor or mayor, as the case may be, and to the
sanggunian concerned;
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(3) Appraise the sanggunian and other local government
officials on the financial condition and operations of the
(4) Certify to the availability of budgetary allotment to
which expenditures and obligations may be properly
charged;
(5) Review supporting documents before preparation of
vouchers to determine completeness of requirements;
(6) Prepare statements of cash advances, liquidation,
salaries, allowances, reimbursements and remittances
pertaining to the local government unit;
(7) Prepare statements of journal vouchers and liquidation
of the same and other adjustments related thereto;
(8) Post individual disbursements to the subsidiary ledger
and index cards;
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(9) Maintain individual ledgers for officials and employees
of the local government unit pertaining to payrolls and
deductions;
(10) Record and post in index cards details of purchased
furniture, fixtures, and equipment, including disposal
thereof, if any;
(11) Account for all issued requests for obligations and
maintain and keep all records and reports related thereto;
(12) Prepare journals and the analysis of obligations and
maintain and keep all records and reports related thereto;
and
duties and functions as may be provided by law or
ordinance.
(c) The incumbent chief accountant in the office of the treasurer
shall be given preference in the appointment to the position of
accountant.
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ARTICLE V
The Budget Officer
(a) No person shall be appointed budget officer unless he is a
unit concerned, of good moral character, a holder of a college
degree preferably in accounting, economics, public
administration or any related course from a recognized college
or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in government
budgeting or in any related field for at least five (5) years in the
case of the provincial or city budget officer, and at least three
(3) years in the case of the municipal budget officer.
The appointment of a budget officer shall be mandatory for the
provincial, city, and municipal governments.
(b) The budget officer shall take charge of the budget office and
shall:
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(1) Prepare forms, orders, and circulars embodying
instructions on budgetary and appropriation matters for
the signature of the governor or mayor, as the case may
be;
(2) Review and consolidate the budget proposals of
different departments and offices of the local government
unit;
(3) Assist the governor or mayor, as the case may be, in
the preparation of the budget and during budget hearings;
(4) Study and evaluate budgetary implications of proposed
legislation and submit comments and recommendations
thereon;
(5) Submit periodic budgetary reports to the Department of
Budget and Management;
(6) Coordinate with the treasurer, accountant, and the
planning and development coordinator for the purpose of
budgeting;
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(7) Assist the sanggunian concerned in reviewing the
approved budgets of component local government units;
(8) Coordinate with the planning and development
coordinator in the formulation of the local government unit
development plan; and
(d) The appropriations for personal services of the budget
officer provided under the Department of Budget and
Management shall, upon effectivity of this Code, be transferred
to the local government unit concerned. Thereafter, the
appropriations for personal services of the budget officer shall
be provided for in full in the budget of the local government
unit.
ARTICLE VI
The Planning and Development Coordinator
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(a) No person shall be appointed planning and development
coordinator unless he is a citizen of the Philippines, a resident
of the local government unit concerned, of good moral
character, a holder of a college degree preferably in urban
planning, development studies, economics, public
administration, or any related course from a recognized college
equivalent. He must have acquired experience in development
planning or in any related field for at least five (5) years in the
case of the provincial or city planning and development
coordinator, and three (3) years in the case of the municipal
planning and development coordinator.
The appointment of a planning and development coordinator
shall be mandatory for provincial, city and municipal
governments.
(b) The planning and development coordinator shall take
charge of the planning and development office and shall:
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(1) Formulate integrated economic, social, physical, and
other development plans and policies for consideration of
the local government development council;
(2) Conduct continuing studies, researches, and training
programs necessary to evolve plans and programs for
implementation;
(3) Integrate and coordinate all sectoral plans and studies
undertaken by the different functional groups or agencies;
(4) Monitor and evaluate the implementation of the
different development programs, projects, and activities in
the local government unit concerned in accordance with
the approved development plan;
(5) Prepare comprehensive plans and other development
planning documents for the consideration of the local
development council;
(6) Analyze the income and expenditure patterns, and
formulate and recommend fiscal plans and policies for
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government unit concerned as provided under Title Five,
Book II of this Code;
(7) Promote people participation in development planning
within the local government unit concerned;
(8) Exercise supervision and control over the secretariat of
the local development council; and
(c) Exercise such other powers and perform such other
functions and duties as may be prescribed by law or
ordinance.
ARTICLE VII
The Engineer
(a) No person shall be appointed engineer unless he is a citizen
concerned, of good moral character, and a licensed civil
engineer. He must have acquired experience in the practice of
his profession for at least five (5) years in the case of the
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provincial or city engineer, and three (3) years in the case of the
municipal engineer.
The appointment of an engineer shall be mandatory for the
provincial, city and municipal governments. The city and
municipal engineer shall also act as the local building official.
(b) The engineer shall take charge of the engineering office and
shall:
(1) Initiate, review and recommend changes in policies and
objectives, plans and programs, techniques, procedures
and practices in infrastructure development and public
works in general of the local government unit concerned;
(2) Advise the governor or mayor, as the case may be, on
infrastructure, public works, and other engineering
matters;
(3) Administer, coordinate, supervise, and control the
construction, maintenance, improvement, and repair of
roads, bridges, and other engineering and public works
projects of the local government unit concerned;

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(4) Provide engineering services to the local government
unit concerned, including investigation and survey,
engineering designs, feasibility studies, and project
management;
(5) In the case of the provincial engineer, exercise
technical supervision over all engineering offices of
ARTICLE VIII
The Health Officer
(a) No person shall be appointed health officer unless he is a
unit concerned, of good moral character, and a licensed
medical practitioner. He must have acquired experience in the
practice of his profession for at least five (5) years in the case
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of the provincial or city health officer, and three (3) years in the
case of the municipal health officer.
The appointment of a health officer shall be mandatory for
(b) The health officer shall take charge of the office on health
and shall:
(1) Take charge of the office on health services, supervise
the personnel and staff of said office, formulate program
implementation guidelines and rules and regulations for
the operation of the said office for the approval of the
governor or mayor, as the case may be, in order to assist
him in the efficient, effective and economical
implementation of a health services program geared to
implementation of health-related projects and activities;
(2) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying
out activities to ensure the delivery of basic services and
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provisions of adequate facilities relative to health services
provided under Section 17 of this Code;
(3) Develop plans and strategies and upon approval
thereof by the governor or mayor as the case may be,
implement the same, particularly those which have to do
with health programs and projects which the governor or
mayor, is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(4) In addition to the foregoing duties and functions, the
health officer shall:
(i) Formulate and implement policies, plans, programs
and projects to promote the health of the people in the
(ii) Advise the governor or mayor, as the case may be,
and the sanggunian on matters pertaining to health;
(iii) Execute and enforce laws, ordinances and
regulations relating to public health;
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(iv) Recommend to the sanggunian, through the local
health board, the passage of such ordinances as he
may deem necessary for the preservation of public
health;
(v) Recommend the prosecution of any violation of
sanitary laws, ordinances or regulations;
(vi) Direct the sanitary inspection of all business
establishments selling food items or providing
accommodations such as hotels, motels, lodging
houses, pension houses, and the like, in accordance
with the Sanitation Code;
(vii) Conduct health information campaigns and
render health intelligence services;
(viii) Coordinate with other government agencies and
non-governmental organizations involved in the
promotion and delivery of health services; and
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(ix) In the case of the provincial health officer,
exercise general supervision over health officers of
(5) Be in the frontline of health services, delivery,
particularly during and in the aftermath of man-made and
natural disasters and calamities; and
ARTICLE IX
The Civil Registrar
(a) No person shall be appointed civil registrar unless he is a
degree from a recognized college or university, and a first
grade civil service eligible or its equivalent. He must have
acquired experience in civil registry work for at least five (5)
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years in the case of the city civil registrar and three (3) years in
the case of the municipal civil registrar.
The appointment of a civil registrar shall be mandatory for city
and municipal governments.
(b) The civil registrar shall be responsible for the civil
registration program in the local government unit concerned,
pursuant to the Civil Registry Law, the Civil Code, and other
pertinent laws, rules and regulations issued to implement them.
(c) The Civil Registrar shall take charge of the office of the civil
registry and shall:
thereof by the governor or mayor, as the case may be,
with civil registry programs and projects which the mayor
is empowered to implement and which the sanggunian is
empowered to provide for under this Code;
civil registrar shall:

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(i) Accept all registrable documents and judicial
decrees affecting the civil status of persons;
(ii) File, keep and preserve in a secure place the books
required by law;
(iii) Transcribe and enter immediately upon receipt all
registrable documents and judicial decrees affecting
the civil status of persons in the appropriate civil
registry books;
(iv) Transmit to the Office of the Civil Registrar-
General, within the prescribed period, duplicate
copies of registered documents required by law;
(v) Issue certified transcripts or copies of any
certificate or registered documents upon payment of
the prescribed fees to the treasurer;
(vi) Receive applications for the issuance of a
marriage license and, after determining that the
requirement and supporting certificates and
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been complied with, issue the license upon payment
of the authorized fee to the treasurer;
(vii) Coordinate with the National Statistics Office in
conducting educational campaigns for vital
registration and assist in the preparation of
demographic and other statistics for the local
government unit concerned; and
ordinance.
ARTICLE X
The Administrator
Section 480. Qualifications, Terms, Powers and Duties.
(a) No person shall be appointed administrator unless he is a
degree preferably in public administration, law, or any other
related course from a recognized college or university, and a

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first grade civil service eligible or its equivalent. He must have
acquired experience in management and administration work
for at least five (5) years in the case of the provincial or city
administrator, and three (3) years in the case of the municipal
administrator.
The term of administrator is coterminous with that of his
appointing authority.
The appointment of an administrator shall be mandatory for the
provincial and city governments, and optional for the municipal
government.
(b) The administrator shall take charge of the office of the
administrator and shall:
implement the same particularly those which have to do
with the management and administration-related programs
and projects which the governor or mayor is empowered to
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implement and which the sanggunian is empowered to
provide for under this Code;
administrator shall:
(i) Assist in the coordination of the work of all the
officials of the local government unit, under the
supervision, direction, and control of the governor or
mayor, and for this purpose, he may convene the
chiefs of offices and other officials of the local
government unit;
(ii) Establish and maintain a sound personnel program
for the local government unit designed to promote
career development and uphold the merit principle in
the local government service;
(iii) Conduct a continuing organizational development
of the local government unit with the end in view of
the instituting effective administrative reforms;
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(3) Be in the frontline of the delivery of administrative
support services, particularly those related to the
situations during and in the aftermath of man-made and
natural disasters and calamities;
(4) Recommend to the sanggunian and advise the
governor and mayor, as the case may be, on all other
matters relative to the management and administration of
the local government unit; and
duties and functions as may be prescribed by law or by
ordinance.
ARTICLE XI
The Legal Officer
Section 481. Qualifications, Terms, Powers and Duties.
(a) No person shall be appointed legal officer unless he is a
concerned, of good moral character, and a member of the
Philippine Bar. He must have practiced his profession for at

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least five (5) years in the case of the provincial and city legal
officer, and three (3) years in the case of the municipal legal
officer.
The term of the legal officer shall be coterminous with that of
his appointing authority.
The appointment of legal officer shall be mandatory for the
provincial and city governments and optional for the municipal
government.
(b) The legal officer, the chief legal counsel of the local
government unit, shall take charge of the office of legal
services and shall:
sanggunian and provide legal assistance and support to
the governor or mayor, as the case may be, in carrying out
the delivery of basic services and provisions of adequate
facilities as provided for under Section 17 of this Code;

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with programs and projects related to legal services which
the governor or mayor is empowered to implement and
which the sanggunian is empowered to provide for under
this Code;
legal officer shall:
(i) Represent the local government unit in all civil
actions and special proceedings wherein the local
government unit or any official thereof, in his official
capacity, is a party: Provided, That, in actions or
proceedings where a component city or municipality
is a party adverse to the provincial government or to
another component city or municipality, a special
legal officer may be employed to represent the
adverse party;
(ii) When required by the governor, mayor or
sanggunian, draft ordinances, contracts, bonds,
leases and other instruments, involving any interest of

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the local government unit and provide comments and
recommendations on any instrument already drawn;
(iii) Render his opinion in writing on any question of
law when requested to do so by the governor, mayor
or sanggunian;
(iv) Investigate or cause to be investigated any local
official or employee for administrative neglect or
misconduct in office, and recommend appropriate
action to the governor, mayor or sanggunian, as the
case may be;
(v) Investigate or cause to be investigated any person,
firm or corporation holding any franchise or
exercising any public privilege for failure to comply
with any term or condition in the grant of such
franchise or privilege, and recommending appropriate
action to the governor, mayor or sanggunian, as the
case may be;
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(vi) When directed by the governor, mayor, or
sanggunian, initiate and prosecute in the interest of
the local government unit concerned any civil action
on any bond, lease or other contract upon any breach
or violation thereof; and
(vii) Review and submit recommendations on
ordinances approved and execute orders issued by
component units;
(3) Recommend measures to the sanggunian and advise
the governor or mayor as the case may be on all other
matters related to upholding the rule of law;
(4) Be in the frontline of protecting human rights and
prosecuting any violations thereof, particularly those
which occur during and in the aftermath of man-made or
natural disasters or calamities; and
ordinance.
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ARTICLE XII
The Agriculturist
(a) No person shall be appointed agriculturist unless he is a
degree in agriculture or any related course from a recognized
college or university and a first grade civil service eligible or its
equivalent. He must have practiced his profession in agriculture
or acquired experience in a related field for at least five (5)
years in the case of the provincial and city agriculturist, and
three (3) years in the case of the municipal agriculturist.
The position of the agriculturist shall be mandatory for the
provincial government and optional for the city and municipal
governments.
(b) The agriculturist shall take charge of the office for
agricultural services, and shall:
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(1) Formulate measures for the approval of the sanggunian
and provide technical assistance and support to the
governor or mayor, as the case may be, in carrying out
said measures to ensure the delivery of basic services and
provisions of adequate facilities relative to agricultural
services as provided for under Section 17 of this Code;
with agricultural programs and projects which the
governor or mayor is empowered to implement and which
the sanggunian is empowered to provide for under this
Code;
agriculturist shall:
(i) Ensure that maximum assistance and access to
resources in the production, processing and
marketing of agricultural and aqua-cultural and marine
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products are extended to farmers, fishermen and local
entrepreneurs;
(ii) Conduct or cause to be conducted location-
specific agricultural researches and assist in making
available the appropriate technology arising out of
and disseminating information on basic research on
crops, preventive and control of plant diseases and
pests, and other agricultural matters which will
maximize productivity;
(iii) Assist the governor or mayor, as the case may be,
in the establishment and extension services of
demonstration forms or aqua-culture and marine
products;
(iv) Enforce rules and regulations relating to
agriculture and aqua-culture;
(v) Coordinate with government agencies and non-
governmental organizations which promote
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agricultural productivity through appropriate
technology compatible with environmental integrity;
(4) Be in the frontline of delivery of basic agricultural
services, particularly those needed for the survival of the
inhabitants during and in the aftermath of man-made and
natural disasters;
governor or mayor, as the case may be, on all other
matters related to agriculture and aqua-culture which will
improve the livelihood and living conditions of the
inhabitants; and
and functions as may be prescribed by law or ordinance;
ARTICLE XIII
The Social Welfare and Development Officer
Section 483. Qualifications, Powers and Duties
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(a) No person shall be appointed social welfare and
development officer unless he is a citizen of the Philippines, a
resident of the local government concerned, of good moral
character, a duly licensed social worker or a holder of a college
degree preferably in sociology or any other related course from
a recognized college or university, and a first grade civil service
the practice of social work for at least five (5) years in the case
of the provincial or city social welfare and development officer,
and three (3) years in the case of the municipal social welfare
and development officer.
The appointment of a social welfare and development officer is
mandatory for provincial and city governments, and optional for
municipal government.
(b) The social welfare and development officer shall take charge
of the office on social welfare and development services and
shall:
(1) Formulate measures for the approval of the sanggunian
and provide technical assistance and support to the

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governor or mayor, as the case may be, in carrying out
measures to endure the delivery of basic services and
provisions of adequate facilities relative to social welfare
and development services as provided for under Section
17 of this Code;
implement the same particularly those which have to do
with social welfare programs and projects which the
governor or mayor is empowered to implement and which
the sanggunian is empowered to provide for under this
Code;
(3) In addition to the foregoing duties, the social welfare
and development officer shall:
(i) Identify the basic needs of the needy, the
disadvantaged and the impoverished and develop and
implement appropriate measures to alleviate their
problems and improve their living conditions;
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(ii) Provide relief and appropriate crisis intervention
for victims of abuse and exploitation and recommend
appropriate measures to deter further abuse and
exploitation;
(iii) Assist the governor or mayor, as the case may be,
in implementing the barangay level program for the
total development and protection of children up to six
(6) years of age;
(iv) Facilitate the implementation of welfare programs
for the disabled, elderly, and victims of drug
addiction, the rehabilitation of prisoners and parolees,
the prevention of juvenile delinquency and such other
activities which would eliminate or minimize the ill-
effects of poverty;
(v) Initiate and support youth welfare programs that
will enhance the role of the youth in nation-building;
(vi) Coordinate with government agencies and non-
governmental organizations which have for their
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purpose the promotion and the protection of all
needy, disadvantaged, underprivileged or
impoverished groups or individuals, particularly those
identified to be vulnerable and high-risk to
exploitation, abuse and neglect;
(4) Be in the frontline or service delivery, particularly those
which have to do with immediate relief during and
assistance in the aftermath of man-made and natural
disaster and natural calamities;
matters related to social welfare and development services
which will improve the livelihood and living conditions of
the inhabitants; and
and functions as may be prescribed by law or ordinance;
ARTICLE XIV
The Environment and Natural Resources Officer
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(a) No person shall be appointed environment and natural
resources officer unless he is a citizen of the Philippines, a
resident of the local government unit concerned, of good moral
character, a holder of a college degree preferably in
environment, forestry, agriculture or any related course from a
environmental and natural resources management,
conservation, and utilization, of at least five (5) years in the
case of the provincial or city environment and natural
resources officer, and three (3) years in the case of the
municipal environment and natural resources officer.
The appointment of the environment and natural resources
officer is optional for provincial, city, and municipal
governments.
(b) The environment and natural resources management officer
shall take charge of the office on environment and natural
resources and shall:

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out measures to ensure the delivery of basic services and
provision of adequate facilities relative to environment and
natural resources services as provided for under Section
17 of this Code;
thereof, by the governor or mayor, as the case may be,
with environment and natural resources programs and
projects which the governor or mayor is empowered to
environment and natural resources officer shall:
(i) Establish, maintain, protect and preserve
communal forests, watersheds, tree parks,
mangroves, greenbelts and similar forest projects and

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commercial forest, like industrial tree farms and agro-
forestry projects;
(ii) Provide extension services to beneficiaries of
forest development projects and technical, financial
and infrastructure assistance;
(iii) Manage and maintain seed banks and produce
seedlings for forest and tree parks;
(iv) Provide extension services to beneficiaries of
forest development projects and render assistance for
natural resources-related conservation and utilization
activities consistent with ecological balance;
(v) Promote the small-scale mining and utilization of
mineral resources, particularly mining of gold;
(vi) Coordinate with government agencies and non-
governmental organizations in the implementation of
measures to prevent and control land, air and water
pollution with the assistance of the Department of
Environment and Natural Resources;

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(4) Be in the frontline of the delivery of services
concerning the environment and natural resources,
particularly in the renewal and rehabilitation of the
environment during and in the aftermath of man-made and
natural calamities and disasters;
governor or mayor, as the case may be, on all matters
relative to the protection, conservation maximum
utilization, application of appropriate technology and other
matters related to the environment and natural resources;
and
ARTICLE XV
The Architect
(a) No person shall be appointed architect unless he is a citizen

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concerned, of good moral character, a duly licensed architect.
He must have practiced his profession for at least five (5) years
in the case of the provincial or city architect, and three (3) years
in the case of the municipal architect.
The appointment of the architect is optional for provincial, city
and municipal governments.
(b) The Architect shall take charge of the office on architectural
planning and design and shall:
provision of adequate facilities relative to architectural
planning and design as provided for under Section 17 of
this Code;
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with architectural planning and design programs and
projects which the governor or mayor is empowered to
(3) In addition to foregoing duties and functions, the
architect shall:
(i) Prepare and recommend for consideration of the
sanggunian the architectural plan and design for the
local government unit or a part thereof, including the
renewal of slums and blighted areas, land reclamation
activities, the greening of land, and appropriate
planning of marine and foreshore areas;
(ii) Review and recommend for appropriate action of
the sanggunian, governor or mayor, as the case may
be, the architectural plans and design submitted by
governmental and non-governmental entities or
individuals, particularly those for undeveloped,
underdeveloped, and poorly-designed areas; and
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(iii) Coordinate with government and non-government
entities and individuals involved in the aesthetics and
the maximum utilization of the land and water within
the jurisdiction of the local government unit,
compatible with environmental integrity and ecology
balance;
(4) Be in the frontline of the delivery of services involving
architectural planning and design, particularly those
related to the redesigning of spatial distribution of basic
facilities and physical structures during and in the
aftermath of man-made and natural calamities and
disasters;
relative to the architectural planning and design as it
relates to the total socio-economic development of the
local government units; and

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ARTICLE XVI
The Information Officer
(a) No person shall be appointed information officer unless he
of a college degree preferably in journalism, mass
communication or any related course from a recognized college
equivalent. He must have experience in writing articles and
research papers, or in writing for print, television or broadcast
media of at least three (3) years in the case of the provincial or
city information officer, and at least one (1) year in the case of
municipal information officer.
The appointment of the information officer is optional for the
The term of the information officer is coterminous with that of
his appointing authority.
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(b) The information officer shall take charge of the office on
public information and shall:
to the governor or mayor, as the case may be, in providing
the information and research data required for the delivery
of basic services and provision of adequate facilities so
that the public becomes aware of said services and may
fully avail of the same;
(2) Develop plans and strategies and, upon approval
with public information and research data to support
programs and projects which the governor or mayor is
empowered to implement and which the sanggunian is
empowered to provide for under this Code;
information officer shall:
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(i) Provide relevant, adequate, and timely information
to the local government unit and its residents;
(ii) Furnish information and data on local government
units to government agencies or offices as may be
required by law or ordinance; and non-governmental
organizations to be furnished to said agencies and
organizations;
(iii) Maintain effective liaison with the various sectors
of the community on matters and issues that affect
the livelihood and the quality of life of the inhabitants
and encourage support for programs of the local and
national government;
(4) Be in the frontline in providing information during and
in the aftermath of man-made and natural calamities and
disasters, with special attention to the victims thereof, to
help minimize injuries and casualties during and after the
emergency, and to accelerate relief and rehabilitation;
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relative to public information and research data as it
relates to the total socio-economic development of the
local government unit; and
ARTICLE XVII
The Cooperatives Officer
(a) No person shall be appointed cooperative officer unless he
of a college degree preferably in business administration with
special training in cooperatives or any related course from a
eligible or its equivalent. He must have experience in
cooperatives organizations and management of at least five (5)
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years in the case of provincial or city cooperatives officer, and
three (3) years in the case of municipal cooperatives officer.
The appointment of the cooperatives officer is optional for the
provincial and city governments.
(b) The cooperatives officer shall take charge of the office for
the development of cooperatives and shall:
sanggunian, and provide technical assistance and support
provision of facilities through the development of
cooperatives, and in providing access to such services
and facilities;
(2) Develop plans and strategies and, upon approval
with the integration of cooperatives principles and
methods in programs and projects which the governor or
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mayor is empowered to implement and which the
cooperatives officer shall:
(i) Assist in the organization of cooperatives;
(ii) Provide technical and other forms of assistance to
existing cooperatives to enhance their viability as an
economic enterprise and social organization;
(iii) Assist cooperatives in establishing linkages with
government agencies and non-government
organizations involved in the promotion and
integration of the concept of cooperatives in the
livelihood of the people and other community
activities;
(4) Be in the frontline of cooperatives organization,
rehabilitation or viability-enhancement, particularly during
and in the aftermath of man-made and natural calamities
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and disasters, to aid in their survival and, if necessary
subsequent rehabilitation;
(5) Recommend to the sanggunian, and advise the
relative to cooperatives development and viability-
enhancement which will improve the livelihood and quality
of life of the inhabitants; and
ARTICLE XVIII
The Population Officer
Section 488. Qualification, Powers and Duties. -
(a) No person shall be appointed population officer unless he is
a citizen of the Philippines, a resident of the local government
degree with specialized training in population development
from a recognized college or university, and a first grade civil
service eligible or its equivalent. He must have experience in

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the implementation of programs on population development or
responsible parenthood for at least five (5) years in the case of
the provincial or city population officer, and three (3) years in
the case of the municipal population officer.
The appointment of a population officer shall be optional in the
local government unit: Provided, however, That provinces and
cities which have existing population offices shall continue to
maintain such offices for a period of five (5) years from the date
of effectivity of this Code, after which said offices shall become
optional.
(b) The population officer shall take charge of the office on
population development and shall:
provision of adequate facilities relative to the integration of
the population development principles and in providing
access to said services and facilities;

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with the integration of population development principles
and methods in programs and projects which the governor
or mayor is empowered to implement and which the
population officer shall:
(i) Assist the governor or mayor, as the case may be,
in the implementation of the Constitutional provisions
relative to population development and the promotion
of responsible parenthood;
(ii) Establish and maintain an updated data bank for
program operations, development planning and an
educational program to ensure the people's
participation in and understanding of population
development;
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(iii) Implement appropriate training programs
responsive to the cultural heritage of the inhabitants;
and
ARTICLE XIX
The Veterinarian
(a) No person shall be appointed veterinarian unless he is a
unit concerned, of good moral character, a licensed doctor of
veterinary medicine. He must have practiced his profession for
at least three (3) years in the case of provincial or city
veterinarian and at least one (1) year in the case of the
municipal veterinarian.
The appointment of a veterinarian officer is mandatory for the
provincial and city governments.
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(b) The veterinarian shall take charge of the office for veterinary
services and shall:
sanggunian, and provide technical assistance and support
provision of adequate facilities pursuant to Section 17 of
this Code;
with the veterinary-related activities which the governor or
mayor is empowered to implement and which the
veterinarian shall:
(i) Advise the governor or the mayor, as the case may
be, on all matters pertaining to the slaughter of
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animals for human consumption and the regulation of
slaughterhouses;
(ii) Regulate the keeping of domestic animals;
(iii) Regulate and inspect poultry, milk and dairy
products for public consumption;
(iv) Enforce all laws and regulations for the prevention
of cruelty to animals; and
(v) Take the necessary measures to eradicate, prevent
or cure all forms of animal diseases;
(4) Be in the frontline of veterinary related activities, such
as in the outbreak of highly-contagious and deadly
diseases, and in situations resulting in the depletion of
animals for work and human consumption, particularly
those arising from and in the aftermath of man-made and
natural calamities and disasters;
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matters relative to veterinary services which will increase
the number and improve the quality of livestock, poultry
and other domestic animals used for work or human
consumption; and
ARTICLE XX
The General Services Officer
(a) No person shall be appointed general services officer unless
he is a citizen of the Philippines, a resident of the local
of a college degree on public administration, business
administration and management from a recognized college or
university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in general
services, including management of supply, property, solid
waste disposal, and general sanitation, of at least five (5) years
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in the case of the provincial or city general services officer, and
at least three (3) years in the case of the municipal general
services officer.
The appointment of a general services officer is mandatory for
the provincial and city governments,
(b) The general services officer shall take charge of the office
on general services and shall:
provision of adequate facilities pursuant to Section 17 of
this Code and which require general services expertise
and technical support services;
with the general services supportive of the welfare of the
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inhabitants which the governor or mayor is empowered to
general services officer shall:
(i) Take custody of and be accountable for all
properties, real or personal, owned by the local
government unit and those granted to it in the form of
donation, reparation, assistance and counterpart of
joint projects;
(ii) With the approval of the governor or mayor, as the
case may be, assign building or land space to local
officials or other public officials, who by law, are
entitled to such space;
(iii) Recommend to the governor or mayor, as the case
may be, the reasonable rental rates for local
government properties, whether real or personal,
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which will be leased to public or private entities by the
local government;
(iv) Recommend to the governor or mayor, as the case
may be, reasonable rental rates of private properties
which may be leased for the official use of the local
government unit;
(v) Maintain and supervise janitorial, security,
government public buildings and other real property,
whether owned or leased by the local government
unit;
(vi) Collate and disseminate information regarding
prices, shipping and other costs of supplies and other
items commonly used by the local government unit;
(vii) Perform archival and record management with
respect to records of offices and departments of the
local government unit; and
(viii) Perform all other functions pertaining to supply
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the local government treasurer; and enforce policies
on records creation, maintenance, and disposal;
(4) Be in the frontline of general services related activities,
such as the possible or imminent destruction or damage to
records, supplies, properties, and structures and the
orderly and sanitary clearing up of waste materials or
debris, particularly during and in the aftermath of man-
made and natural calamities and disasters;
relative to general services; and
(c)Exercise such other powers and perform such other duties
TITLE VI
LEAGUES OF LOCAL GOVERNMENT UNITS AND ELECTIVE
OFFICIALS
CHAPTER I
Leagues of Local Government Units

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ARTICLE I
Liga ng Mga Barangay
Section 491. Purpose of Organization. - There shall be an
organization of all barangays to be known as the liga ng mga
barangay for the primary purpose of determining the representation
of the Liga in the sanggunians, and for ventilating, articulating and
crystallizing issues affecting barangay government administration
and securing, through proper and legal means, solutions thereto.
Section 492. Representation, Chapters, National Liga. - Every
barangay shall be represented in said liga by the punong barangay,
or in his absence or incapacity, by a sanggunian member duly
elected for the purpose among its members, who shall attend all
meetings or deliberations called by the different chapters of the liga.
The liga shall have chapters at the municipal, city, provincial and
metropolitan political subdivision levels.
The municipal and city chapters of the liga shall be composed of the
barangay representatives of municipal and city barangays
respectively. The duly elected presidents of component municipal
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and city chapters shall constitute the provincial chapter or the
metropolitan political subdivision chapter. The duly elected
presidents of highly-urbanized cities, provincial chapters, the
Metropolitan Manila chapter and metropolitan political subdivision
chapters shall constitute the National Liga ng mga Barangay.
Section 493. Organization. - The liga at the municipal, city,
provincial, metropolitan political subdivision, and national levels
directly elect a president, a vice-president, and five (5) members of
the board of directors. The board shall appoint its secretary and
treasurer and create such other positions as it may deem necessary
for the management of the chapter. A secretary-general shall be
elected from among the members of the national liga and shall be
charged with the overall operation of the liga on national level. The
board shall coordinate the activities of the chapters of the liga.
Section 494. Ex-Officio Membership in Sanggunians. - The duly
elected presidents of the liga at the municipal, city and provincial
levels, including the component cities and municipalities of
Metropolitan Manila, shall serve as ex-officio members of the
sangguniang bayan, sangguniang panlungsod, sangguniang

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panlalawigan, respectively. They shall serve as such only during
their term of office as presidents of the liga chapters, which in no
case shall be beyond the term of office of the sanggunian
concerned.
Section 495. Powers, Functions and Duties of the Liga. - The liga
shall:
(a) Give priority to programs designed for the total development
of the barangays and in consonance with the policies,
programs and projects of the national government;
(b) Assist in the education of barangay residents for people's
participation in local government administration in order to
promote united and concerted action to achieve country-wide
development goals;
(c) Supplement the efforts of government in creating gainful
employment within the barangay;
(d) Adopt measures to promote the welfare of barangay
officials;
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(e) Serve as a forum of the barangays in order to forge linkages
with government and non-governmental organizations and
thereby promote the social, economic and political well-being
of the barangays; and
(f) Exercise such other powers and perform such other duties
and functions which will bring about stronger ties between
barangays and promote the welfare of the barangay inhabitants.
ARTICLE II
League of Municipalities
organization of all municipalities to be known as league of
municipalities for the primary purpose of ventilating, articulating
and crystallizing issues affecting municipal government
administration, and securing, through proper and legal means,
solutions thereto.
The league shall form provincial chapters composed of the league
presidents for all component municipalities of the province.
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Section 497. Representation. - Every municipality shall be
represented in the league by the municipal mayor of in his absence,
by the vice-mayor or a sanggunian member duly elected for the
purpose by the members, who shall attend all meetings and
participate in the deliberations of the league.
Section 498. Powers, Functions and Duties of the League of
Municipalities. - The league of municipalities shall:
(a) Assist the national government in the formulation and
implementation of the policies, programs and projects affecting
municipalities as a whole;
(b) Promote local autonomy at the municipal level;
(c) Adopt measures for the promotion of the welfare of all
municipalities and its officials and employees;
(d) Encourage people's participation in local government
administration in order to promote united and concerted action
for the attainment of country-wide development goals;
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(e) Supplement the efforts of the national government in
creating opportunities for gainful employment within the
municipalities;
(f) Give priority to programs designed for the total development
of the municipalities in consonance with the policies, programs
and projects of the national government;
(g) Serve as a forum for crystallizing and expressing ideas,
seeking the necessary assistance of the national government,
and providing the private sector avenues for cooperation in the
promotion of the welfare of the municipalities; and
and functions as the league may prescribe for the welfare of the
municipalities.
ARTICLE III
League of Cities
organization of all cities to be known as the League of Cities for the
primary purpose of ventilating, articulating and crystallizing issues

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affecting city government administration, and securing, through
proper and legal means, solutions thereto.
The league may form chapters at the provincial level for the
component cities of a province. Highly-urbanized cities may also
form a chapter of the League. The National League shall be
composed of the presidents of the league of highly-urbanized cities
and the presidents of the provincial chapters of the league of
component cities.
Section 500. Representation. - Every city shall be represented in the
league by the city mayor or in his absence, by the city vice-mayor or
a sanggunian member duly elected for the purpose by the members,
who shall attend all meetings and participate in the deliberations of
the league.
Section 501. Powers, Functions and Duties of the League of City. -
The league of cities shall:
cities as a whole;
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(b) Promote local autonomy at the city level;
(c) Adopt measures for the promotion of the welfare of all cities
and its officials and employees;
for the attainment of country-wide development goals;
creating opportunities for gainful employment the cities;
of cities in consonance with the policies, programs and
projects of the national government;
seeking the necessary assistance of the national government
promotion of the welfare of the cities; and
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cities.
ARTICLE IV
League of Provinces
organization of all provinces to be known as the League of
Provinces for the primary purpose of ventilating, articulating and
crystallizing issues affecting provincial and metropolitan political
subdivision government administration, and securing, through
proper and legal means, solutions thereto. For this purpose, the
Metropolitan Manila Area and any metropolitan political subdivision
shall be considered as separate provincial units of the league.
Section 503. Representation. - Every province shall be represented
in the league by the provincial governor or in his absence, by the
provincial vice-governor or a sanggunian member duly elected for
the purpose by the members, who shall attend all meetings and
participate in the deliberations of the league.
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Section 504. Powers, Functions and Duties of the League of
Provinces. - The league of provinces shall:
provinces as a whole;
(b) Promote local autonomy at the provincial level;
(c) Adopt measures for the promotion of the welfare of all
provinces and its officials and employees;
for the attainment of countrywide employment within the
province;
creating opportunities for gainful employment within the
province;
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of the provinces in consonance with the policies, programs and
projects of the national government;
seeking the necessary assistance of the national government
promotion of the welfare of the provinces; and
provinces and metropolitan political subdivisions.
ARTICLE V
Provisions Common to All Leagues
Section 505. Funding.
(a) All leagues shall derive its funds from contributions of
member local government units and from fund-raising projects
and activities without the necessity of securing permits
therefor: Provided, That the proceeds from said fund-raising
projects and activities shall be used primarily to fund the

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projects for which the said proceeds have been raised, subject
to the pertinent provision of this Code and the pertinent
provisions of the Omnibus Election Code.
(b) All funds of leagues shall be deposited as trust funds with
its treasurer and shall be disbursed in accordance with the
board of director's resolutions, subject to pertinent accounting
and auditing rules and regulations: Provided, That the treasurer
shall be bonded in an amount to be determined by the board of
directors. The funds of a chapter shall be deposited as chapter
funds and funds of the national league shall be deposited as
national funds.
Section 506. Organizational Structure. - To ensure the effective and
efficient administration, the leagues for municipalities, cities and
provinces shall elect chapter-level and national-level boards of
directors and a set of officers headed by the president. A secretary-
general shall be chosen from among the national league members to
manage the day to day operation and activities of the national
league. The board of directors on the chapter or national level may
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management of the chapters and of the national league. The national
board of directors of the leagues for municipalities, cities or
provinces shall coordinate programs, projects and activities of
chapter and the national-level league.
Section 507. Constitution and By-laws of the Liga and the Leagues. -
All other matters not herein otherwise provided for affecting the
internal organization of the leagues of local government units shall
be governed by their respective constitution and by-laws which are
hereby made suppletory to the provision of this Chapter: Provided,
That said Constitution and By-laws shall always conform to the
provisions of the Constitution and existing laws.
CHAPTER II
Leagues and Federation of Local Elective Officials
Section 508. Organization.
(a) Vice-governors, vice-mayors, sanggunian members of
barangays, municipalities, component cities, highly-urbanized
cities and provinces, and other elective local officials of local
government units, including those of the Metropolitan Manila
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Area and any metropolitan political subdivisions, may form
their respective leagues or federation, subject to applicable
provisions of this Title and pertinent provisions of this Code;
(b) Sanggunian members of component cities and
municipalities shall form a provincial federation and elect a
board of directors and a set of officers headed by the president.
The duly elected president of the provincial federation of
sanggunian members of component cities and municipalities
shall be an ex-officio member of the sangguniang panlalawigan
concerned and shall serve as such only during his term of
office as president of the provincial federation of sanggunian
members of component cities and municipalities, which in no
case shall be beyond the term of office of the sanggunian
panlalawigan concerned.
Section 509. Constitution and By-laws. - The leagues or federations
shall adopt a Constitution and by-laws which shall govern their
internal organization and operation: Provided, That said
Constitution and by-laws shall always conform to the provision of
the Constitution and existing laws.

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Section 510. Funding. - The leagues and federations may derive
funds from contributions of individual league or federation members
or from fund-raising projects or activities. The local government unit
concerned may appropriate funds to support the leagues or
federation organized pursuant to this Section, subject to the
availability of funds.
BOOK IV
MISCELLANEOUS AND FINAL PROVISIONS
TITLE I
PENAL PROVISIONS
Section 511. Posting and Publication of Ordinances with Penal
Sanctions.
(a) Ordinances with penal sanctions shall be posted at
prominent places in the provincial capitol, city, municipal or
barangay hall, as the case may be, for a minimum period of
three (3) consecutive weeks. Such ordinances shall also be
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available, within the territorial jurisdiction of the local
government unit concerned, except in the case of barangay
ordinances. Unless otherwise provided therein, said ordinances
shall take effect on the day following its publication, or at the
end of the period of posting, whichever occurs later.
(b) Any public officer or employee who violates an ordinance
may be meted administrative disciplinary action, without
prejudice to the filing of the appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall transmit
official copies of such ordinances to the chief executive officer
of the Office Gazette within seven (7) days following the
approval of the said ordinance for publication purposes. The
Official Gazette may publish ordinances with penal sanctions
for archival and reference purposes.
Section 512. Withholding of Benefits Accorded to Barangay
Officials. - Willful and malicious withholding of any of the benefits
accorded to barangay officials under Section 393 hereof shall be
punished with suspension or dismissal from office of the official or
employee responsible therefor.

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Section 513. Failure to Post and Publish the Itemized Monthly
Collections and Disbursements. - Failure by the local treasurer of
the local chief accountant to post the itemized monthly collections
and disbursements of the local government unit concerned within
ten (10) days following the end of every month and for at least two
(2) consecutive weeks at prominent places in the main office
building of the local government unit concerned, its plaza and main
street, and to publish said itemization in a newspaper of general
circulation, where available, in the territorial jurisdiction of such
unit, shall be punished by a fine not exceeding Five hundred pesos
(P500.00) or by imprisonment not exceeding one (1) month, or both
such fine and imprisonment, at the discretion of the court.
Section 514. Engaging in Prohibited Business Transactions or
Possessing Illegal Pecuniary Interest. - Any local official and any
person or persons dealing with him who violate the prohibitions
provided in Section 89 of Book I hereof, shall be punished with
imprisonment for six months and one day to six years, or a fine of
not less than Three thousand pesos (P3,000.00) nor more than Ten
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thousand pesos (P10,000.00), or both such imprisonment and fine at
the discretion of the court.
Section 515. Refusal or Failure of Any Party or Witness to Appear
before the Lupon or Pangkat. - Refusal or willful failure of any party
or witness to appear before the lupon or pangkat in compliance with
a summons issued pursuant to the provisions on the Katarungang
Pambarangay under Chapter 7, Title III of this Code may be
punished by the city or municipal court as for indirect contempt of
court upon application filed therewith by the lupon chairman, the
pangkat chairman, or by any of the contending parties. Such refusal
or willful failure to appear shall be reflected in the records of the
lupon secretary or in the minutes of the pangkat secretary and shall
bar the complainant who fails to appear, from seeking judicial
recourse for the same cause of action, and the respondent who
refuses to appear, from filing any counterclaim arising out of, or
necessarily connected with the complaint.
A pangkat member who serves as such shall be entitled to an
honorarium, the amount of which is to be determined by the
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sanggunian concerned subject to the provisions in this Code cited
above.
Section 516. Penalties for Violation of Tax Ordinances. - The
sanggunian of a local government unit is authorized to prescribe
fines or other penalties for violation of tax ordinances but in no case
shall such fines be less than One thousand pesos (P1,000.00) nor
more than Five thousand pesos (P5,000.00), nor shall imprisonment
be less than one (1) month nor more than six (6) months. Such fine
or other penalty, or both, shall be imposed at the discretion of the
court. The sangguniang barangay may prescribe a fine of not less
than One hundred pesos (P100.00) nor more than One thousand
pesos (P1,000.00).
Section 517. Omission of Property from Assessment or Tax Rolls by
Officers and Other Acts. - Any officer charged with the duty of
assessing real property who willfully fails to assess, or who
intentionally omits from the assessment or tax roll any real property
which he knows to be taxable, or who willfully or negligently under
assesses any real property, or who intentionally violates or fails to
perform any duty imposed upon him by law relating to the

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assessment of taxable real property shall, upon conviction, be
punished by a fine of not less than One thousand pesos (P1,000.00)
nor more than Five thousand pesos (P5,000.00), or by imprisonment
of not less than one (1) month nor more than six (6) months, or both
such fine and imprisonment, at the discretion of the court.
The same penalty shall be imposed upon any officer charged with
the duty of collecting the tax due on real property who willfully or
negligently fails to collect the tax and institute the necessary
proceedings for the collection of the same.
Any other officer required by this Code to perform acts relating to
the administration of the real property tax or to assist the assessor
or treasurer in such administration, who willfully fails to discharge
such duties shall, upon conviction be punished by a fine of not less
than Five hundred pesos (P500.00) nor more than Five thousand
pesos (P5,000.00) or imprisonment of not less than one (1) month
nor more than six (6) months, or both such fine and imprisonment,
at the discretion of the court.
Section 518. Government Agents Delaying Assessment of Real
Property and Assessment Appeals. - Any government official who

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intentionally and deliberately delays the assessment of real property
or the filing of any appeal against its assessment shall, upon
conviction, be punished by a fine of not less than Five hundred
pesos (P500.00) nor more than Five thousand pesos (P5,000.00), or
by imprisonment of not less than one (1) month nor more than six
(6) months, or both such fine and imprisonment, at the discretion of
the court.
Section 519. Failure to Dispose of Delinquent Real Property at Public
Auction. - The local treasurer concerned who fails to dispose of
delinquent real property at public auction in compliance with the
pertinent provisions of this Code, and any other local government
official whose acts hinder the prompt disposition of delinquent real
property at public auction shall, upon conviction, be subject to a
fine of not less than One thousand pesos (P1,000.00) nor more than
Five thousand pesos (P5,000.00), or imprisonment of not less than
one (1) month nor more than six (6) months, or both such fine and
imprisonment, at the discretion of the court.
Section 520. Prohibited Acts Related to the Award of Contracts
Under the Provisions on Credit Financing. - It shall be unlawful for

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any public official or employee in the provincial, city, or municipal
government, or their relatives within the fourth civil degree of
consanguinity or affinity, to enter into or have any pecuniary interest
in any contract for the construction, acquisition, operation or
maintenance of any project awarded pursuant to the provisions of
Title Four in Book II hereof, or for the procurement of any supplies,
materials, or equipment of any kind to be used in the said project.
Any person convicted for violation of the provisions of said Title
shall be removed from office and shall be punishable by
imprisonment of not less than one (1) month, nor more than two (2)
years, at the discretion of the court, without prejudice to
prosecution under other laws.
TITLE II
PROVISIONS FOR IMPLEMENTATION
Section 521. Mandatory Review Every Five Years. - Congress shall
undertake a mandatory review of this Code at least once every five
(5) years and as often as it may deem necessary, with the primary
objective of providing a more responsive and accountable local
government structure.
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Section 522. Insurance Coverage. - The Government Service
Insurance System (GSIS) shall establish and administer an
appropriate system under which the punong barangay, the members
of the sangguniang barangay, the barangay secretary, the barangay
treasurer, and the members of the barangay tanod shall enjoy
insurance coverage as provided in this Code and other pertinent
laws. For this purpose, the GSIS is hereby directed to undertake an
actuarial study, issue rules and regulations, determine the
premiums payable, and recommend to Congress the amount of
appropriations needed to support the system. The amount needed
for the implementation of the said insurance shall be included in the
annual General Appropriations Act.
Section 523. Personnel Retirement and/or Benefits. - An official or
employee of the national government or local government unit
separated from the service as a result of reorganization effected
under this Code shall, if entitled under the laws then in force,
receive the retirement and other benefits accruing thereunder:
Provided, however, That such benefits shall be given funding
priority by the Department of Budget and Management in the case of
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national officials and employees, and the local government unit
concerned in the case of local officials and employees.
Where the employee concerned is not eligible for retirement, he
shall be entitled to a gratuity from the national government or the
local government unit concerned, as the case may be, equivalent to
an amount not lower than one (1) month salary for every year of
service over and above the monetary value of the leave credits said
employee is entitled to receive pursuant to existing laws.
Section 524. Inventory of Infrastructure and Other Community
Facilities.
(a) Each local government unit shall conduct a periodic
inventory of infrastructure and other community facilities and
undertake the maintenance, repair, improvement, or
reconstruction of these facilities through a closer cooperation
among the various agencies of the national government
operating within the province, city, or municipality concerned.
(b) No infrastructure or community project within the territorial
jurisdiction of any local government unit shall be undertaken
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without informing the local chief executive and the sanggunian
concerned.
Section 525. Records and Properties. - All records, equipment,
buildings, facilities, and other properties of any office or body of a
local government unit abolished or reorganized under this Code
shall be transferred to the office or body to which its powers,
functions, and responsibilities are substantially devolved.
TITLE III
TRANSITORY PROVISIONS
Section 526. Application of this Code to Local Government Units in
the Autonomous Regions. - This Code shall apply to all provinces,
cities, municipalities and barangays in the autonomous regions until
such time as the regional government concerned shall have enacted
its own local government code.
Section 527. Prior Approval or Clearance on Regular and Recurring
Transactions. - Six (6) months after effectivity of this Code, prior
approval of or clearance from national agencies or offices shall no
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longer be required for regular and recurring transactions and
activities of local government units.
Section 528. Deconcentration of Requisite Authority and Power. -
The national government shall, six (6) months after the effectivity of
this Code, effect the deconcentration of requisite authority and
power to the appropriate regional offices or field offices of national
agencies or offices whose major functions are not devolved to local
government units.
Section 529. Tax Ordinances or Revenue Measures. - All existing tax
ordinances or revenue measures of local government units shall
continue to be in force and effect after the effectivity of this Code
unless amended by the sanggunian concerned, or inconsistent with,
or in violation of, the provisions of this Code.
Section 530. Local Water Districts. - All powers, functions, and
attributes granted by Presidential Decree Numbered One hundred
ninety-eight (P.D. No. 198), otherwise known as "The Provincial
Water Utility Act of 1973," to the Local Water Utilities Administration
(LWUA) may be devolved in toto to the existing local water districts
should they opt or choose to exercise, in writing, such powers,

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functions and attributes: Provided, That all obligations of the local
government unit concerned to the LWUA shall first be settled prior
to said devolution.
Section 531. Debt Relief for Local Government Units. -
(a) Unremitted national collections and statutory contributions.
- All debts owed by local government units to the national
government in unremitted contributions to the Integrated
National Police Fund, the Special Education Fund, and other
statutory contributions as well as in unremitted national
government shares of taxes, charges, and fees collected by the
local government units, are hereby written off in full.
(b) Program loans. -
(1) Program loans secured by local government units
which were relent to private persons, natural or juridical,
shall likewise be written off from the books of the local
government units concerned: Provided, however, That the
national government agency tasked with the
implementation of these programs shall continue to collect
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from the debtors belonging to the private sector
concerned.
(2) Program loans granted to local government units by
national government agencies and which were utilized by
the local units for community development, livelihood, and
other small-scale projects are hereby written off in full.
(c) Settlement of debts due to government financing institutions
(GFIs), government-owned and controlled corporations
(GOCCs), and private utilities. The national government shall
assume all debts incurred or contracted by local government
units from GFIs, GOCCs, and private utilities that are
outstanding as of December 31, 1988, in accordance with the
following schemes:
(1) Debts due GFIs. - The national government may buy
outstanding obligations incurred by local government
units from government financing institutions at a
discounted rate.
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(2) Debts due GOCCs. - The national government may
settle such obligations at discounted rate through
offsetting, only to the extent of the obligations of local
governments against the outstanding advances made by
the National Treasury in behalf of the government-owned
and controlled corporations concerned.
(3) Debts Due Private Utilities. - The national government
may settle these obligations at a discounted rate by
offsetting against the outstanding obligations of such
private utilities to government-owned corporation. GOCCs
may in turn offset these obligations against the
outstanding advances made by the National Treasury in
their behalf.
In the case of obligation owed by local government units to
private utilities which are not indebted to any GOCC or
national government agency, the national government may
instead buy the obligations of the local government units
from the private utilities at a discounted rate, upon
concurrence by the private utilities concerned.

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(d) Limitations. - Obligations to the Home Development and
Mutual Fund (Pag-ibig), Medicare, and those pertaining to
premium contributions and amortization payments of salary
and policy loans to the Government Service Insurance System
are excluded from the coverage of this Section.
(e) Recovery schemes for the national government. - Local
government units shall pay back the national government
whatever amounts were advanced or offset by the national
government to settle their obligations to GFIs, GOCCs, and
private utilities. The national government shall not charge
interest or penalties on the outstanding balance owed by the
local government units.
These outstanding obligations shall be restructured and an
amortization schedule prepared, based on the capability of the
local government unit to pay, taking into consideration the
amount owed to the national government.
The national government is hereby authorized to deduct from
the quarterly share of each local government unit in the internal
revenue collections an amount to be determined on the basis of

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the amortization schedule of the local unit concerned:
Provided, That such amount shall not exceed five percent (5%)
of the monthly internal revenue allotment of the local
government unit concerned.
As incentive to debtor-local government units to increase the
efficiency of their fiscal administration, the national government
shall write off the debt of the local government unit concerned
at the rate of five percent (5%) for every one percent (1%)
increase in revenues generated by such local government unit
over that of the preceding year. For this purpose, the annual
increase in local revenue collection shall be computed starting
from the year 1988.
(f) Appropriations. - Such amount as may be necessary to
implement the provisions of this Section shall be included in
the annual General Appropriations Act.
Section 532. Elections for the Sangguniang Kabataan. -
(a) The first elections for the sangguniang kabataan to be
conducted under this Code shall be held thirty (30) days after
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the next local elections: Provided, That, the regular elections
for the sangguniang kabataan shall be held one hundred twenty
(120) days after the barangay elections thereafter.
(b) The amount pertaining to the ten percent (10%) allocation
for the kabataang barangay as provided for in Section 103 of
Batas Pambansa Blg. 337 is hereby reappropriated for the
purpose of funding the first elections mentioned above. The
balance of said funds, if there by any after the said elections,
shall be administered by the Presidential Council for Youth
Affairs for the purpose of training the newly elected
sangguniang kabataan officials in the discharge of their
functions.
(c) For the regular elections of the sangguniang kabataan,
funds shall be taken from the ten percent (10%) of the barangay
funds reserved for the sangguniang kabataan, as provided for
in Section 328 of this Code.
(d) All seats reserved for the pederasyon ng mga sangguniang
kabataan in the different sanggunians shall be deemed vacant
until such time that the sangguniang kabataan chairmen shall

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have been elected and the respective pederasyon presidents
have been selected: Provided, That, elections for the kabataang
barangay conducted under Batas Pambansa Blg. 337 at any
time between January 1, 1988 and January 1, 1992 shall be
considered as the first elections provided for in this Code. The
term of office of the kabataang barangay officials elected within
the said period shall be extended correspondingly to coincide
with the term of office of those elected under this Code.
Section 533. Formulation of Implementing Rules and Regulations. -
(a) Within one (1) month after the approval of this Code, the
President shall convene the Oversight shall formulate and issue
the appropriate rules and regulations necessary for the efficient
and effective implementation of any and all provisions of this
Code, thereby ensuring compliance with the principles of local
autonomy as defined under the Constitution.
(b) The Committee shall be composed of the following:
(1) The Executive Secretary, who shall be the Chairman;
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(2) Three (3) members of the Senate to be appointed by the
President of the Senate, to include the Chairman of the
Committee on Local Government;
(3) Three (3) members of the House of Representatives to
be appointed by the Speaker, to include the Chairman of
the Committee on Local Government;
(4) The Cabinet, represented by the following:
(i) Secretary of the Interior and Local Government;
(ii) Secretary of Finance;
(iii) Secretary of Budget and Management; and
(5) One (1) representative from each of the following:
(i) The League of Provinces;
(ii) The League of Cities;
(iii) The League of Municipalities; and
(iv) The Liga ng mga Barangay.
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(c) The Committee shall submit its report and recommendation
to the President within two (2) months after its organization. If
the President fails to act within thirty (30) days from receipt
thereof, the recommendation of the Oversight Committee shall
be deemed approved. Thereafter, the Committee shall supervise
the transfer of such powers and functions mandated under this
Code to the local government units, together with the
corresponding personnel, properties, assets and liabilities of
the offices or agencies concerned, with the least possible
disruptions to existing programs and projects. The Committee
shall likewise recommend the corresponding appropriations
necessary to effect the said transfer.
For this purpose, the services of a technical staff shall be
enlisted from among the qualified employees of Congress, the
government offices, and the leagues constituting the
Committee.
(d) The funding requirements and the secretariat of the
Committee shall be provided by the Office of the Executive
Secretary.
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(e) The sum of Five million pesos (P5,000,000), which shall be
charged against the Contingent Fund, is hereby allotted to the
Committee to fund the undertaking of an information campaign
on this Code. The Committee shall formulate the guidelines
governing the conduct of said campaign, and shall determine
the national agencies or offices to be involved for this purpose.
TITLE IV
FINAL PROVISIONS
Section 534. Repealing Clause. -
(a) Batas Pambansa Blg. 337, otherwise known as the Local
Government Code, Executive Order No. 112 (1987), and
Executive Order No. 319 (1988) are hereby repealed.
(b) Presidential Decree Nos. 684, 1191, 1508 and such other
decrees, orders, instructions, memoranda and issuances
related to or concerning the barangay are hereby repealed.
(c) The provisions of Sections 2, 3, and 4 of Republic Act No.
1939 regarding hospital fund; Section 3, a (3) and b (2) of
Republic Act No. 5447 regarding the Special Education Fund;

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Presidential Decree No. 144 as amended by Presidential Decree
Nos. 559 and 1741; Presidential Decree No. 231 as amended;
Presidential Decree No. 436 as amended by Presidential Decree
No. 558; and Presidential Decree Nos. 381, 436, 464, 477, 526,
632, 752, and 1136 are hereby repealed and rendered of no
force and effect.
(d) Presidential Decree No. 1594 is hereby repealed insofar as it
governs locally-funded projects.
(e) The following provisions are hereby repealed or amended
insofar as they are inconsistent with the provisions of this
Code: Sections 2, 16 and 29 of Presidential Decree No. 704;
Section 12 of Presidential Decree No. 87, as amended; Section
52, 53, 66, 67, 68, 69, 70, 71, 72, 73, and 74 of Presidential
Decree No. 463, as amended; and Section 16 of Presidential
Decree No. 972, as amended, and
(f) All general and special laws, acts, city charters, decrees,
executive orders, proclamations and administrative regulations,
or part or parts thereof which are inconsistent with any of the
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provisions of this Code are hereby repealed or modified
accordingly.
Section 535. Separability Clause. - If, for any reason or reasons, any
part or provision of this Code shall be held to be unconstitutional or
invalid, other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
Section 536. Effectivity Clause. - This Code shall take effect on
January first, nineteen hundred ninety-two, unless otherwise
provided herein, after its complete publication in at least one (1)
newspaper of general circulation.
Approved: October 10, 1991
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LOCAL GOVERNMENT CODE OF 1991

Republic Act No. 7160 October 10, 1991

Setion 41(b) Amended by RA 8553

Setion 43 Amended by RA 8553

AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled::

The Code: Policy and Application

Government Code of 1991".

Section 2. Declaration of Policy. -

and political subdivisions of the State shall enjoy genuine and

meaningful local autonomy to enable them to attain their fullest

development as self-reliant communities and make them more

effective partners in the attainment of national goals. Toward

accountable local government structure instituted through a

system of decentralization whereby local government units

shall be given more powers, authority, responsibilities, and

resources. The process of decentralization shall proceed from

the national government to the local government units.

(b) It is also the policy of the State to ensure the accountability

of local government units through the institution of effective

mechanisms of recall, initiative and referendum.

(c) It is likewise the policy of the State to require all national

agencies and offices to conduct periodic consultations with

appropriate local government units, nongovernmental and

people's organizations, and other concerned sectors of the

their respective jurisdictions.1awphil.net

Section 3. Operative Principles of Decentralization. - The formulation

and implementation of policies and measures on local autonomy

shall be guided by the following operative principles:

(a) There shall be an effective allocation among the different

local government units of their respective powers, functions,

responsibilities, and resources;

(b) There shall be established in every local government unit an

accountable, efficient, and dynamic organizational structure

service requirements of its communities;

(c) Subject to civil service law, rules and regulations, local

officials and employees paid wholly or mainly from local funds

shall be appointed or removed, according to merit and fitness,

by the appropriate appointing authority;

(d) The vesting of duty, responsibility, and accountability in

local government units shall be accompanied with provision for

power to create and broaden their own sources of revenue and

the right to a just share in national taxes and an equitable share

in the proceeds of the utilization and development of the

national wealth within their respective areas;

(e) Provinces with respect to component cities and

municipalities, and cities and municipalities with respect to

component barangays, shall ensure that the acts of their

component units are within the scope of their prescribed

powers and functions;

(f) Local government units may group themselves, consolidate

or coordinate their efforts, services, and resources commonly

(g) The capabilities of local government units, especially the

municipalities and barangays, shall be enhanced by providing

them with opportunities to participate actively in the

implementation of national programs and projects;

autonomy not only by legislative enabling acts but also by

administrative and organizational reforms;