Chapter 1 Local Governments
Chapter 1 Local Governments
Chapter 1 Local Governments
vs Pano
o What the national legislature expressly allows by law, a provincial board may
Art. II, Sec 25: The State shall ensure the autonomy of local governments. not disallow by ordinance or resolution.
Art. X, Sec 2: The territorial and political subdivisions shall enjoy local autonomy. o The basic relationship between the national legislature and the local
government units has not been enfeebled by the new provisions in the
Local Government Constitution strengthening the policy of local autonomy. Without meaning to
- A political subdivision of a nation or state which is constituted by law and has detract from that policy, Congress retains control of the local government
substantial control of local affairs. units although in significantly reduced degree now than under our previous
- A "body politic and corporate"-- one endowed with powers as a political subdivision Constitutions. The power to create still includes the power to destroy. The
of the National Government and as a corporate entity representing the inhabitants of power to grant still includes the power to withhold or recall. True, there are
its territory. [LGC of 1991] some notable innovations in the Constitution, like the direct conferment on
the local government units of the power to tax (Sec. 5, Art. X), which cannot
Local government units now be withdrawn by mere statute. By and large, however, the national
- The provinces, cities, municipalities and barangays. They are also the territorial and legislature is still the principal of local government units, which cannot defy
political subdivisions of the state. its will or modify or violate it. Ours is still a unitary form of government, not a
federal state. Being so, any form of autonomy granted to local governments
A. Nature of Local Government Units will necessarily be limited and confined within the extent allowed by the
central authority.
MIAA vs CA o The ordinance passed by the Sangguniang Panlalawigan on banning the
o Supremacy of the national government over local governments in taxation. operations of lotto was held unconstitutional since the National Legislature
Local governments cannot invoke the power to tax on national government has enacted a statute which allows the operation of the same.
instrumentalities. The rule is that a tax is never presumed and there must be
clear language in the law imposing the tax. Magtajas vs. Pryce Properties
o In this case, the Supreme Court ruled that airports, lands and buildings of o Local councils exercise only delegated legislative powers conferred on them
MIAA are exempt from real estate tax for the following reasons: (a) MIAA is by Congress as the national lawmaking body. The delegate cannot be
not a government-owned or -controlled corporation but an instrumentality of superior to the principal or exercise powers higher than those of the latter.
the National Government; and (b) the real properties of MIAA are owned by o The ordinance prohibiting the issuance of a business permit to, and
the Republic of the Philippines, and thus, exempt from local taxation. cancelling any business permit of any establishment allowing its premises to
o LGC Sec. 133(o) Common Limitations on the Taxing Powers of Local be used as a casino, and the ordinance prohibiting the operation of a casino,
Government Units. Unless otherwise provided therein, the exercise of were declared invalid for being contrary to P.D. 1869 (Charter of PAGCOR)
taxing powers of provinces, cities, municipalities, and barangays shall not which has the character and force of a statute.
extend to the levy of the following:
(o) Taxes, fees or charges of any kind on the National Government, its Basco vs PAGCOR
agencies and instrumentalities, and local government units. o Doctrine of Supremacy - National Government over local governments.
LGUs are subject to control by Congress. It should be stressed that
City of Manila vs. IAC municipal corporations are mere creatures of Congress which has the
o LGU powers are twofold in character: power to create and abolish municipal corporations due to its general
B. Governmental Power - Public, governmental, political; exercised in legislative powers. Congress, has the power of control over Local
administering the powers of the state and promoting the public welfare governments. And if Congress can grant the City of Manila the power to tax
and they include the legislative, judicial, public and political. certain matters, it can also provide for exemptions or even take back the
C. Municipal Power - Corporate, private and proprietary; exercised for the power.
special benefit and advantage of the community and include those o The principle of local autonomy under the 1987 Constitution simply means
which are ministerial, private and corporate. decentralization; it does not make the local governments sovereign within
o City of Manila, who owns the North Cemetery in its proprietary or private the state or an imperium in imperio
character, is liable for the tortious act committed by its agents who failed to o Local government units have no power to tax instrumentalities of the
verify and check the duration of the contract of lease of the right to use a National Government, such as PAGCOR.
burial lot.
o The City of Manila is a political body corporate and as such endowed with Atienza vs. Villarosa
the faculties of municipal corporations to be exercised by and through its city o Intent of LGC on Separation of Powers to distribute powers among elective
government in conformity with law, and in its proper corporate name. It may officials so that the legislative, which is the Sanggunian, can properly check
sue and be sued, and contract and be contracted with.
the executive, which is the Governor or Mayor and vice versa and exercise corporations because they are not created under the Corporation Code; they
their functions without any undue interference from one by the other. exist by virtue of PD 198, the special enabling charter which expressly
o LGC was enacted to implement the constitutional mandate to provide for a confers on LWDs corporate powers. COA, therefore, exercises audit
more responsive and accountable local government structure instituted jurisdiction over LWDs
through a system of decentralization with effective mechanism of recall,
initiative and referendum, allocate among the different local government B. Types of Local Government Units
units their powers, responsibilities, and resources, and provide for the
qualifications, election, appointment and removal, term, salaries, powers and Art X Sec 1: The territorial and political subdivisions of the Republic of the Philippines
functions and duties of local officials, and all matters relating to the are the provinces, cities, municipalities, and barangays. There shall be autonomous
organization and operation of the local units. regions in Muslim Mindanao and the Cordilleras as hereinafter provided.