Republic Act No.

7160 October 10, 1991 (a) There shall be an effective allocation among the
Setion 41(b) Amended by RA 8553 different local government units of their respective
Setion 43 Amended by RA 8553 powers, functions, responsibilities, and resources;

AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF (b) There shall be established in every local
1991 government unit an accountable, efficient, and
dynamic organizational structure and operating
Be it enacted by the Senate and House of Representatives of mechanism that will meet the priority needs and
the Philippines in Congress assembled:: service requirements of its communities;

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

GENERAL PROVISIONS local officials and employees paid wholly or mainly
from local funds shall be appointed or removed,
TITLE I according to merit and fitness, by the appropriate
BASIC PRINCIPLES appointing authority;

CHAPTER I (d) The vesting of duty, responsibility, and

The Code: Policy and Application accountability in local government units shall be
accompanied with provision for reasonably
adequate resources to discharge their powers and
Section 1. Title. - This Act shall be known and cited as the
effectively carry out their functions: hence, they
"Local Government Code of 1991".
shall have the power to create and broaden their
own sources of revenue and the right to a just share
Section 2. Declaration of Policy. - in national taxes and an equitable share in the
proceeds of the utilization and development of the
(a) It is hereby declared the policy of the State that national wealth within their respective areas;
the territorial and political subdivisions of the State
shall enjoy genuine and meaningful local autonomy
(e) Provinces with respect to component cities and
to enable them to attain their fullest development as municipalities, and cities and municipalities with
self-reliant communities and make them more
respect to component barangays, shall ensure that
effective partners in the attainment of national the acts of their component units are within the
goals. Toward this end, the State shall provide for a
scope of their prescribed powers and functions;
more responsive and accountable local government
structure instituted through a system of
(f) Local government units may group themselves,
decentralization whereby local government units
consolidate or coordinate their efforts, services, and
shall be given more powers, authority,
resources commonly beneficial to them;
responsibilities, and resources. The process of
decentralization shall proceed from the national
government to the local government units. (g) The capabilities of local government units,
especially the municipalities and barangays, shall be
enhanced by providing them with opportunities to
(b) It is also the policy of the State to ensure the
participate actively in the implementation of
accountability of local government units through the
national programs and projects;
institution of effective mechanisms of recall,
initiative and referendum.
(h) There shall be a continuing mechanism to
enhance local autonomy not only by legislative
(c) It is likewise the policy of the State to require all
enabling acts but also by administrative and
national agencies and offices to conduct periodic
organizational reforms;
consultations with appropriate local government
units, nongovernmental and people's organizations,
and other concerned sectors of the community (i) Local government units shall share with the
before any project or program is implemented in national government the responsibility in the
their respective jurisdictions.1awphil.net management and maintenance of ecological balance
within their territorial jurisdiction, subject to the
Section 3. Operative Principles of Decentralization. - The provisions of this Code and national policies;
formulation and implementation of policies and measures on
local autonomy shall be guided by the following operative (j) Effective mechanisms for ensuring the
principles: accountability of local government units to their
respective constituents shall be strengthened in
 order to upgrade continually the quality of local terms and conditions of said contracts or the law in
leadership; force at the time such rights were vested; and

(k) The realization of local autonomy shall be (e) In the resolution of controversies arising under
facilitated through improved coordination of this Code where no legal provision or jurisprudence
national government policies and programs an applies, resort may be had to the customs and
extension of adequate technical and material traditions in the place where the controversies take
assistance to less developed and deserving local place.
government units;
CHAPTER II
(l) The participation of the private sector in local General Powers and Attributes of Local Government Units
governance, particularly in the delivery of basic
services, shall be encouraged to ensure the viability Section 6. Authority to Create Local Government Units. - A
of local autonomy as an alternative strategy for local government unit may be created, divided, merged,
sustainable development; and abolished, or its boundaries substantially altered either by
law enacted by Congress in the case of a province, city,
(m) The national government shall ensure that municipality, or any other political subdivision, or by
decentralization contributes to the continuing ordinance passed by the sangguniang panlalawigan or
improvement of the performance of local sangguniang panlungsod concerned in the case of a barangay
government units and the quality of community life. located within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this Code.
Section 4. Scope of Application. - This Code shall apply to all
provinces, cities, municipalities, barangays, and other political Section 7. Creation and Conversion. - As a general rule, the
subdivisions as may be created by law, and, to the extent creation of a local government unit or its conversion from
herein provided, to officials, offices, or agencies of the one level to another level shall be based on verifiable
national government. indicators of viability and projected capacity to provide
services, to wit:
Section 5. Rules of Interpretation. - In the interpretation of
the provisions of this Code, the following rules shall apply: (a) Income. - It must be sufficient, based on
acceptable standards, to provide for all essential
(a) Any provision on a power of a local government government facilities and services and special
unit shall be liberally interpreted in its favor, and in functions commensurate with the size of its
case of doubt, any question thereon shall be population, as expected of the local government unit
resolved in favor of devolution of powers and of the concerned;
lower local government unit. Any fair and reasonable
doubt as to the existence of the power shall be (b) Population. - It shall be determined as the total
interpreted in favor of the local government unit number of inhabitants within the territorial
concerned; jurisdiction of the local government unit concerned;
and
(b) In case of doubt, any tax ordinance or revenue
measure shall be construed strictly against the local (c) Land Area. - It must be contiguous, unless it
government unit enacting it, and liberally in favor of comprises two or more islands or is separated by a
the taxpayer. Any tax exemption, incentive or relief local government unit independent of the others;
granted by any local government unit pursuant to properly identified by metes and bounds with
the provisions of this Code shall be construed strictly technical descriptions; and sufficient to provide for
against the person claiming it. such basic services and facilities to meet the
requirements of its populace.
(c) The general welfare provisions in this Code shall
be liberally interpreted to give more powers to local Compliance with the foregoing indicators shall be
government units in accelerating economic attested to by the Department of Finance (DOF), the
development and upgrading the quality of life for National Statistics Office (NSO), and the Lands
the people in the community; Management Bureau (LMB) of the Department of
Environment and Natural Resources (DENR).
(d) Rights and obligations existing on the date of
effectivity of this Code and arising out of contracts or Section 8. Division and Merger. - Division and merger of
any other source of presentation involving a local existing local government units shall comply with the same
government unit shall be governed by the original requirements herein prescribed for their creation: Provided,
however, That such division shall not reduce the income, shall be made outside the territorial boundaries of
population, or land area of the local government unit or units the local government unit concerned.
concerned to less than the minimum requirements
prescribed in this Code: Provided, further, That the income The old site, together with the improvements
classification of the original local government unit or units thereon, may be disposed of by the sale or lease or
shall not fall below its current classification prior to such converted to such other use as the sangguniang
division. concerned may deem beneficial to the local
government unit concerned and its inhabitants.
The income classification of local government units shall be
updated within six (6) months from the effectivity of this (c) Local government offices and facilities shall not
Code to reflect the changes in their financial position be transferred, relocated, or converted to other uses
resulting from the increased revenues as provided herein. unless public hearings are first conducted for the
purpose and the concurrence of the majority of all
Section 9. Abolition of Local Government Units. - A local the members of the sanggunian concerned is
government unit may be abolished when its income, obtained.
population, or land area has been irreversibly reduced to less
than the minimum standards prescribed for its creation under Section 12. Government Centers. - Provinces, cities, and
Book III of this Code, as certified by the national agencies municipalities shall endeavor to establish a government
mentioned in Section 7 hereof to Congress or to the center where offices, agencies, or branches of the national
sangguniang concerned, as the case may be. government, local government units, or government-owned
or controlled corporations may, as far as practicable, be
The law or ordinance abolishing a local government unit shall located. In designating such a center, the local government
specify the province, city, municipality, or barangay with unit concerned shall take into account the existing facilities of
which the local government unit sought to be abolished will national and local agencies and offices which may serve as
be incorporated or merged. the government center as contemplated under this Section.
The national government, local government unit or
Section 10. Plebiscite Requirement. - No creation, division, government-owned or controlled corporation concerned shall
merger, abolition, or substantial alteration of boundaries of bear the expenses for the construction of its buildings and
local government units shall take effect unless approved by a facilities in the government center.
majority of the votes cast in a plebiscite called for the
purpose in the political unit or units directly affected. Said Section 13. Naming of Local Government Units and Public
plebiscite shall be conducted by the Commission on Elections Places, Streets and Structures. -
(COMELEC) within one hundred twenty (120) days from the
date of effectivity of the law or ordinance effecting such (a) The sangguniang panlalawigan may, in
action, unless said law or ordinance fixes another date. consultation with the Philippine Historical
Commission (PHC), change the name of the following
Section 11. Selection and Transfer of Local Government Site, within its territorial jurisdiction:
Offices and Facilities. -
(1) Component cities and municipalities,
(a) The law or ordinance creating or merging local upon the recommendation of the
government units shall specify the seat of sanggunian concerned;
government from where governmental and
corporate services shall be delivered. In selecting (2) Provincial roads, avenues, boulevards,
said site, factors relating to geographical centrality, thoroughfares, and bridges;
accessibility, availability of transportation and
communication facilities, drainage and sanitation, (3) Public vocational or technical schools
development and economic progress, and other and other post-secondary and tertiary
relevant considerations shall be taken into account. schools;

(b) When conditions and developments in the local (4) Provincial hospitals, health centers, and
government unit concerned have significantly other health facilities; and
changed subsequent to the establishment of the
seat of government, its sanggunian may, after public
(5) Any other public place or building
hearing and by a vote of two-thirds (2/3) of all its
owned by the provincial government.
members, transfer the same to a site better suited to
its needs. Provided, however, That no such transfer
(b) The sanggunian of highly urbanized cities and of
component cities whose charters prohibit their
voters from voting for provincial elective officials, (e) A change of name of a public school shall be
hereinafter referred to in this Code as independent made only upon the recommendation of the local
component cities, may, in consultation with the school board concerned.
Philippine Historical Commission, change the name
of the following within its territorial jurisdiction: (f) A change of name of public hospitals, health
centers, and other health facilities shall be made
(1) City barangays, upon the only upon the recommendation of the local health
recommendation of the sangguniang board concerned.
barangay concerned;
(g) The change of name of any local government unit
(2) City roads, avenues, boulevards, shall be effective only upon ratification in a
thoroughfares, and bridges; plebiscite conducted for the purpose in the political
unit directly affected.
(3) Public elementary, secondary and
vocational or technical schools, community (h) In any change of name, the Office of the
colleges and non-chartered colleges; President, the representative of the legislative
district concerned, and the Bureau of Posts shall be
(4) City hospitals, health centers and other notified.
health facilities; and
Section 14. Beginning of Corporate Existence. - When a new
(5) Any other public place or building local government unit is created, its corporate existence shall
owned by the city government. commence upon the election and qualification of its chief
executive and a majority of the members of its sanggunian,
(c) The sanggunians of component cities and unless some other time is fixed therefor by the law or
municipalities may, in consultation with the ordinance creating it.
Philippine Historical Commission, change the name
of the following within its territorial jurisdiction: Section 15. Political and Corporate Nature of Local
Government Units. - Every local government unit created or
(1) City and municipal barangays, upon recognized under this Code is a body politic and corporate
recommendation of the sangguniang endowed with powers to be exercised by it in conformity with
barangay concerned; law. As such, it shall exercise powers as a political subdivision
of the national government and as a corporate entity
(2) City, municipal and barangay roads, representing the inhabitants of its territory.
avenues, boulevards, thoroughfares, and
bridges; Section 16. General Welfare. - Every local government unit
shall exercise the powers expressly granted, those necessarily
implied therefrom, as well as powers necessary, appropriate,
(3) City and municipal public elementary,
or incidental for its efficient and effective governance, and
secondary and vocational or technical
those which are essential to the promotion of the general
schools, post- secondary and other tertiary
welfare. Within their respective territorial jurisdictions, local
schools;
government units shall ensure and support, among other
things, the preservation and enrichment of culture, promote
(4) City and municipal hospitals, health
health and safety, enhance the right of the people to a
centers and other health facilities; and balanced ecology, encourage and support the development
of appropriate and self-reliant scientific and technological
(5) Any other public place or building capabilities, improve public morals, enhance economic
owned by the municipal government. prosperity and social justice, promote full employment
among their residents, maintain peace and order, and
(d) None of the foregoing local government units, preserve the comfort and convenience of their inhabitants.
institutions, places, or buildings shall be named after
a living person, nor may a change of name be made Section 17. Basic Services and Facilities. -
unless for a justifiable reason and, in any case, not
oftener than once every ten (10) years. The name of
(a) Local government units shall endeavor to be self-
a local government unit or a public place, street or reliant and shall continue exercising the powers and
structure with historical, cultural, or ethnic discharging the duties and functions currently vested
significance shall not be changed, unless by a
upon them. They shall also discharge the functions
unanimous vote of the sanggunian concerned and in and responsibilities of national agencies and offices
consultation with the PHC.
devolved to them pursuant to this Code. Local of seedling nurseries;
government units shall likewise exercise such other demonstration farms; quality
powers and discharge such other functions and control of copra and improvement
responsibilities as are necessary, appropriate, or and development of local
incidental to efficient and effective provisions of the distribution channels, preferably
basic services and facilities enumerated herein. through cooperatives;
interbarangay irrigation system;
(b) Such basic services and facilities include, but are water and soil resource utilization
not limited to, the following: and conservation projects; and
enforcement of fishery laws in
(1) For Barangay: municipal waters including the
conservation of mangroves;
(i) Agricultural support services
which include planting materials (ii) Pursuant to national policies
distribution system and operation and subject to supervision, control
of farm produce collection and and review of the DENR,
buying stations; implementation of community-
based forestry projects which
include integrated social forestry
(ii) Health and social welfare
programs and similar projects;
services which include
management and control of
maintenance of barangay health
communal forests with an area not
center and day-care center;
exceeding fifty (50) square
kilometers; establishment of tree
(iii) Services and facilities related to parks, greenbelts, and similar
general hygiene and sanitation,
forest development projects;
beautification, and solid waste
collection;
(iii) Subject to the provisions of
Title Five, Book I of this Code,
(iv) Maintenance of katarungang health services which include the
pambarangay; implementation of programs and
projects on primary health care,
(v) Maintenance of barangay roads maternal and child care, and
and bridges and water supply communicable and non-
systems; communicable disease control
services, access to secondary and
(vi) Infrastructure facilities such as tertiary health services; purchase
multi-purpose hall, multipurpose of medicines, medical supplies, and
pavement, plaza, sports center, equipment needed to carry out the
and other similar facilities; services herein enumerated;

(vii) Information and reading (iv) Social welfare services which

center; and include programs and projects on
child and youth welfare, family and
(viii) Satellite or public market, community welfare, women's
where viable; welfare, welfare of the elderly and
disabled persons; community-
(2) For a Municipality: based rehabilitation programs for
vagrants, beggars, street children,
(i) Extension and on-site research scavengers, juvenile delinquents,
services and facilities related to and victims of drug abuse;
agriculture and fishery activities livelihood and other pro-poor
which include dispersal of livestock projects; nutrition services; and
and poultry, fingerlings, and other family planning services;
seedling materials for aquaculture;
palay, corn, and vegetable seed (v) Information services which
farms; medicinal plant gardens; include investments and job
fruit tree, coconut, and other kinds placement information systems,
 tax and marketing information (i) Agricultural extension and on-
systems, and maintenance of a site research services and facilities
public library; which include the prevention and
control of plant and animal pests
(vi) Solid waste disposal system or and diseases; dairy farms, livestock
environmental management markets, animal breeding stations,
system and services or facilities and artificial insemination centers;
related to general hygiene and and assistance in the organization
sanitation; of farmers and fishermen's
cooperatives, and other collective
(vii) Municipal buildings, cultural organizations, as well as the
centers, public parks including transfer of appropriate technology;
freedom parks, playgrounds, and
other sports facilities and (ii) Industrial research and
equipment, and other similar development services, as well as
facilities; the transfer of appropriate
technology;
(viii) Infrastructure facilities
intended primarily to service the (iii) Pursuant to national policies
needs of the residents of the and subject to supervision, control
municipality and which are funded and review of the DENR,
out of municipal funds including enforcement of forestry laws
but not limited to, municipal roads limited to community-based
and bridges; school buildings and forestry projects, pollution control
other facilities for public law, small-scale mining law, and
elementary and secondary schools; other laws on the protection of the
clinics, health centers and other environment; and mini-
health facilities necessary to carry hydroelectric projects for local
out health services; communal purposes;
irrigation, small water impounding
projects and other similar projects; (iv) Subject to the provisions of
fish ports; artesian wells, spring Title Five, Book I of this Code,
development, rainwater collectors health services which include
and water supply systems; hospitals and other tertiary health
seawalls, dikes, drainage and services;
sewerage, and flood control; traffic
signals and road signs; and similar (v) Social welfare services which
facilities; include programs and projects on
rebel returnees and evacuees;
(ix) Public markets, relief operations; and population
slaughterhouses and other development services;
municipal enterprises;
(vi) Provincial buildings, provincial
(x) Public cemetery; jails, freedom parks and other
public assembly areas and similar
(xi) Tourism facilities and other facilities;
tourist attractions, including the
acquisition of equipment, (vii) Infrastructure facilities
regulation and supervision of intended to service the needs of
business concessions, and security the residence of the province and
services for such facilities; and which are funded out of provincial
funds including, but not limited to,
(xii) Sites for police and fire provincial roads and bridges; inter-
stations and substations and municipal waterworks, drainage
municipal jail; and sewerage, flood control, and
irrigation systems; reclamation
(3) For a Province: projects; and similar facilities;
 (viii) Programs and projects for local government unit concerned, based on national
low-cost housing and other mass policies, standards and guidelines.
dwellings, except those funded by
the Social Security System (SSS), (e) National agencies or offices concerned shall
Government Service Insurance devolve to local government units the responsibility
System p. 172 (GSIS), and the for the provision of basic services and facilities
Home Development Mutual Fund enumerated in this Section within six (6) months
(HDMF): Provided, That national after the effectivity of this Code.
funds for these programs and
projects shall be equitably As used in this Code, the term "devolution" refers to
allocated among the regions in the act by which the national government confers
proportion to the ratio of the power and authority upon the various local
homeless to the population; government units to perform specific functions and
responsibilities.
(ix) Investment support services,
including access to credit financing; (f) The national government or the next higher level
of local government unit may provide or augment
(x) Upgrading and modernization the basic services and facilities assigned to a lower
of tax information and collection level of local government unit when such services or
services through the use of facilities are not made available or, if made available,
computer hardware and software are inadequate to meet the requirements of its
and other means; inhabitants.

(xi) Inter-municipal (g) The basic services and facilities hereinabove

telecommunications services, enumerated shall be funded from the share of local
subject to national policy government units in the proceeds of national taxes
guidelines; and and other local revenues and funding support from
the national government, its instrumentalities and
(xii) Tourism development and government-owned or controlled corporations
promotion programs; which are tasked by law to establish and maintain
such services or facilities. Any fund or resource
(4) For a City: available for the use of local government units shall
be first allocated for the provision of basic services
All the services and facilities of the or facilities enumerated in subsection (b) hereof
municipality and province, and in addition before applying the same for other purposes, unless
thereto, the following: otherwise provided in this Code.

(1) Adequate communication and (h) Regional offices of national agencies or offices
transportation facilities; 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
(c) Notwithstanding the provisions of subsection (b)
national agencies and offices may establish such
hereof, public works and infrastructure projects and
field units as may be necessary for monitoring
other facilities, programs and services funded by the
purposes and providing technical assistance to local
national government under the annual General
government units. The properties, equipment, and
Appropriations Act, other special laws, pertinent
other assets of these regional offices shall be
executive orders, and those wholly or partially
distributed to the local government units in the
funded from foreign sources, are not covered under
region in accordance with the rules and regulations
this Section, except in those cases where the local
issued by the oversight committee created under
government unit concerned is duly designated as the
this Code.
implementing agency for such projects, facilities,
programs, and services.
(i) The devolution contemplated in this Code shall
include the transfer to local government units of the
(d) The designs, plans, specifications, testing of
records, equipment, and other assets and personnel
materials, and the procurement of equipment and
of national agencies and offices corresponding to the
materials at P170 from both foreign and local
devolved powers, functions, and responsibilities.
sources necessary for the provision of the foregoing
services and facilities shall be undertaken by the
 Personnel of said national agencies or offices shall filing of the expropriation proceedings and upon making a
be absorbed by the local government units to which deposit with the proper court of at least fifteen percent (15%)
they belong or in whose areas they are assigned to of the fair market value of the property based on the current
the extent that it is administratively viable as tax declaration of the property to be expropriated: Provided,
determined by the said oversight committee: finally, That, the amount to be paid for the expropriated
Provided, That the rights accorded to such personnel property shall be determined by the proper court, based on
pursuant to civil service law, rules and regulations the fair market value at the time of the taking of the
shall not be impaired: Provided, further, That property.
regional directors who are career executive service
officers and other officers of similar rank in the said Section 20. Reclassification of Lands. -
regional offices who cannot be absorbed by the local
government unit shall be retained by the national (a) A city or municipality may, through an ordinance
government, without any diminution of rank, salary passed by the sanggunian after conducting public
or tenure. hearings for the purpose, authorize the
reclassification of agricultural lands and provide for
(j) To ensure the active participation of the private the manner of their utilization or disposition in the
sector in local governance, local government units following cases: (1) when the land ceases to be
may, by ordinance, sell, lease, encumber, or economically feasible and sound for agricultural
otherwise dispose of public economic enterprises purposes as determined by the Department of
owned by them in their proprietary capacity. Agriculture or (2) where the land shall have
substantially greater economic value for residential,
Costs may also be charged for the delivery of basic commercial, or industrial purposes, as determined
services or facilities enumerated in this Section. by the sanggunian concerned: Provided, That such
reclassification shall be limited to the following
Section 18. Power to Generate and Apply Resources. - Local percentage of the total agricultural land area at the
government units shall have the power and authority to time of the passage of the ordinance:
establish an organization that shall be responsible for the
efficient and effective implementation of their development (1) For highly urbanized and independent
plans, program objectives and priorities; to create their own component cities, fifteen percent (15%);
sources of revenues and to levy taxes, fees, and charges
which shall accrue exclusively for their use and disposition (2) For component cities and first to the
and which shall be retained by them; to have a just share in third class municipalities, ten percent
national taxes which shall be automatically and directly (10%); and
released to them without need of any further action; to have
an equitable share in the proceeds from the utilization and (3) For fourth to sixth class municipalities,
development of the national wealth and resources within five percent (5%): Provided, further, That
their respective territorial jurisdictions including sharing the agricultural lands distributed to agrarian
same with the inhabitants by way of direct benefits; to reform beneficiaries pursuant to Republic
acquire, develop, lease, encumber, alienate, or otherwise Act Numbered Sixty-six hundred fifty-seven
dispose of real or personal property held by them in their (R.A. No. 6657). otherwise known as "The
proprietary capacity and to apply their resources and assets Comprehensive Agrarian Reform Law", shall
for productive, developmental, or welfare purposes, in the not be affected by the said reclassification
exercise or furtherance of their governmental or proprietary and the conversion of such lands into other
powers and functions and thereby ensure their development purposes shall be governed by Section 65 of
into self-reliant communities and active participants in the said Act.
attainment of national goals.
(b) The President may, when public interest so
Section 19. Eminent Domain. - A local government unit may, requires and upon recommendation of the National
through its chief executive and acting pursuant to an Economic and Development Authority, authorize a
ordinance, exercise the power of eminent domain for public city or municipality to reclassify lands in excess of
use, or purpose or welfare for the benefit of the poor and the the limits set in the next preceding paragraph.
landless, upon payment of just compensation, pursuant to
the provisions of the Constitution and pertinent laws:
(c) The local government units shall, in conformity
Provided, however, That the power of eminent domain may
with existing laws, continue to prepare their
not be exercised unless a valid and definite offer has been
respective comprehensive land use plans enacted
previously made to the owner, and such offer was not
through zoning ordinances which shall be the
accepted: Provided, further, That the local government unit
primary and dominant bases for the future use of
may immediately take possession of the property upon the
 land resources: Provided. That the requirements for be established and where goods, merchandise,
food production, human settlements, and industrial foodstuffs, commodities, or articles of commerce
expansion shall be taken into consideration in the may be sold and dispensed to the general public.
preparation of such plans.
Section 22. Corporate Powers. -
(d) Where approval by a national agency is required
for reclassification, such approval shall not be (a) Every local government unit, as a corporation,
unreasonably withheld. Failure to act on a proper shall have the following powers:
and complete application for reclassification within
three (3) months from receipt of the same shall be (1) To have continuous succession in its
deemed as approval thereof. corporate name;

(e) Nothing in this Section shall be construed as (2) To sue and be sued;
repealing, amending, or modifying in any manner
the provisions of R.A. No. 6657.
(3) To have and use a corporate seal;

Section 21. Closure and Opening of Roads. -

(4) To acquire and convey real or personal
property;
(a) A local government unit may, pursuant to an
ordinance, permanently or temporarily close or open
(5) To enter into contracts; and
any local road, alley, park, or square falling within its
jurisdiction: Provided, however, That in case of
permanent closure, such ordinance must be (6) To exercise such other powers as are
approved by at least two-thirds (2/3) of all the granted to corporations, subject to the
limitations provided in this Code and other
members of the sanggunian, and when necessary, an
adequate substitute for the public facility that is laws.
subject to closure is provided.
(b) Local government units may continue using,
(b) No such way or place or any part thereof shall be modify, or change their existing corporate seals:
Provided, That newly established local government
permanently closed without making provisions for
the maintenance of public safety therein. A property units or those without corporate seals may create
thus permanently withdrawn from public use may be their own corporate seals which shall be registered
with the Department of the Interior and Local
used or conveyed for any purpose for which other
real property belonging to the local government unit Government: Provided, further, That any change of
corporate seal shall also be registered as provided
concerned may be lawfully used or conveyed:
Provided, however, That no freedom park shall be hereon.
closed permanently without provision for its transfer
or relocation to a new site. (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
(c) Any national or local road, alley, park, or square
without prior authorization by the sanggunian
may be temporarily closed during an actual
emergency, or fiesta celebrations, public rallies, concerned. A legible copy of such contract shall be
posted at a conspicuous place in the provincial
agricultural or industrial fairs, or an undertaking of
public works and highways, telecommunications, capitol or the city, municipal or barangay hall.
and waterworks projects, the duration of which shall
be specified by the local chief executive concerned in (d) Local government units shall enjoy full autonomy
a written order: Provided, however, That no national in the exercise of their proprietary functions and in
or local road, alley, park, or square shall be the limitations provided in this Code and other
temporarily closed for athletic, cultural, or civic applicable laws,
activities not officially sponsored, recognized, or
approved by the local government unit concerned. Section 23. Authority to Negotiate and Secure Grants. - Local
chief executives may, upon authority of the sanggunian,
(d) Any city, municipality, or barangay may, by a duly negotiate and secure financial grants or donations in kind, in
enacted ordinance, temporarily close and regulate support of the basic services or facilities enumerated under
the use of any local street, road, thoroughfare, or Section 17 hereof, from local and foreign assistance agencies
any other public place where shopping malls, without necessity of securing clearance or approval therefor
Sunday, flea or night markets, or shopping areas may 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 concerned, for his information and guidance,
with national security implications shall be approved by the monthly reports including duly certified budgetary
national agency concerned: Provided, further, That when allocations and expenditures.
such national agency fails to act on the request for approval
within thirty (30) days from receipt thereof, the same shall be Section 26. Duty of National Government Agencies in the
deemed approved. Maintenance of Ecological Balance. - It shall be the duty of
every national agency or government-owned or controlled
The local chief executive shall, within thirty (30) days upon corporation authorizing or involved in the planning and
signing of such grant agreement or deed of donation, report implementation of any project or program that may cause
the nature, amount, and terms of such assistance to both pollution, climatic change, depletion of non-renewable
Houses of Congress and the President. resources, loss of crop land, rangeland, or forest cover, and
extinction of animal or plant species, to consult with the local
Section 24. Liability for Damages. - Local government units government units, nongovernmental organizations, and other
and their officials are not exempt from liability for death or sectors concerned and explain the goals and objectives of the
injury to persons or damage to property. project or program, its impact upon the people and the
community in terms of environmental or ecological balance,
CHAPTER III and the measures that will be undertaken to prevent or
Intergovernmental Relations minimize the adverse effects thereof.

ARTICLE I Section 27. Prior Consultations Required. - No project or

National Government and Local Government Units 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
Section 25. National Supervision over Local Government
sanggunian concerned is obtained: Provided, That occupants
Units. -
in areas where such projects are to be implemented shall not
be evicted unless appropriate relocation sites have been
(a) Consistent with the basic policy on local provided, in accordance with the provisions of the
autonomy, the President shall exercise general
Constitution.
supervision over local government units to ensure
that their acts are within the scope of their
ARTICLE II
prescribed powers and functions.
Relations with the Philippine National Police
The President shall exercise supervisory authority
Section 28. Powers of Local Chief Executives over the Units of
directly over provinces, highly urbanized cities, and
the Philippine National Police. - The extent of operational
independent component cities; through the province
supervision and control of local chief executives over the
with respect to component cities and municipalities;
police force, fire protection unit, and jail management
and through the city and municipality with respect to
personnel assigned in their respective jurisdictions shall be
barangays.
governed by the provisions of Republic Act Numbered Sixty-
nine hundred seventy-five (R.A. No. 6975), otherwise known
(b) National agencies and offices with project as "The Department of the Interior and Local Government Act
implementation functions shall coordinate with one of 1990", and the rules and regulations issued pursuant
another and with the local government units
thereto.
concerned in the discharge of these functions. They
shall ensure the participation of local government
ARTICLE III
units both in the planning and implementation of
Inter-Local Government Relations
said national projects.

Section 29. Provincial Relations with Component Cities and

(c) The President may, upon request of the local
Municipalities. - The province, through the governor, shall
government unit concerned, direct the appropriate
ensure that every component city and municipality within its
national agency to provide financial, technical, or
territorial jurisdiction acts within the scope of its prescribed
other forms of assistance to the local government
powers and functions. Highly urbanized cities and
unit. Such assistance shall be extended at no extra
independent component cities shall be independent of the
cost to the local government unit concerned.
province.
(d) National agencies and offices including
Section 30. Review of Executive Orders. -
government-owned or controlled corporations with
field units or branches in a province, city, or
municipality shall furnish the local chief executive
 (a) Except as otherwise provided under the Section 35. Linkages with People's and Non-governmental
Constitution and special statutes, the governor shall Organizations. - Local government units may enter into joint
review all executive orders promulgated by the ventures and such other cooperative arrangements with
component city or municipal mayor within his people's and non-governmental organizations to engage in
jurisdiction. The city or municipal mayor shall review the delivery of certain basic services, capability-building and
all executive orders promulgated by the punong livelihood projects, and to develop local enterprises designed
barangay within his jurisdiction. Copies of such to improve productivity and income, diversity agriculture,
orders shall be forwarded to the governor or the city spur rural industrialization, promote ecological balance, and
or municipal mayor, as the case may be, within three enhance the economic and social well-being of the people.
(3) days from their issuance. In all instances of
review, the local chief executive concerned shall Section 36. Assistance to People's and Non-governmental
ensure that such executive orders are within the Organizations. - A local government unit may, through its
powers granted by law and in conformity with local chief executive and with the concurrence of the
provincial, city, or municipal ordinances. sanggunian concerned, provide assistance, financial or
otherwise, to such people's and non-governmental
(b) If the governor or the city or municipal mayor organizations for economic, socially-oriented, environmental,
fails to act on said executive orders within thirty (30) or cultural projects to be implemented within its territorial
days after their submission, the same shall be jurisdiction.
deemed consistent with law and therefore valid.
CHAPTER V
Section 31. Submission of Municipal Questions to the Local Prequalification, Bids and Awards Committee
Provincial Legal Officer or Prosecutor. - In the absence of a
municipal legal officer, the municipal government may secure Section 37. Local Prequalification, Bids and Awards
the opinion of the provincial legal officer, and in the absence Committee (Local PBAC). -
of the latter, that of the provincial prosecutor on any legal
question affecting the municipality. (a) There is hereby created a local prequalification,
bids and awards committee in every province, city,
Section 32. City and Municipal Supervision over Their and municipality, which shall be primarily
Respective Barangays. - The city or municipality, through the responsible for the conduct of prequalification of
city or municipal mayor concerned, shall exercise general contractors, bidding, evaluation of bids, and the
supervision over component barangays to ensure that said recommendation of awards concerning local
barangays act within the scope of their prescribed powers infrastructure projects. The governor or the city or
and functions. municipal mayor shall act as the chairman with the
following as members:
Section 33. Cooperative Undertakings Among Local
Government Units. - Local government units may, through (1) The chairman of the appropriations
appropriate ordinances, group themselves, consolidate, or committee of the sanggunian concerned;
coordinate their efforts, services, and resources for purposes
commonly beneficial to them. In support of such (2) A representative of the minority party in
undertakings, the local government units involved may, upon the sanggunian concerned, if any, or if there
approval by the sanggunian concerned after a public hearing be none, one (1) chosen by said sanggunian
conducted for the purpose, contribute funds, real estate, from among its members;
equipment, and other kinds of property and appoint or assign
personnel under such terms and conditions as may be agreed
(3) The local treasurer;
upon by the participating local units through Memoranda of
Agreement.
(4) Two (2) representatives of non-
governmental organizations that are
CHAPTER IV
represented in the local development
Relations With People's and Non-Governmental
council concerned, to be chosen by the
Organizations
organizations themselves; and

Section 34. Role of People's and Non-governmental

(5) Any practicing certified public
Organizations. - Local government units shall promote the
accountant from the private sector, to be
establishment and operation of people's and non-
designated by the local chapter of the
governmental organizations to become active partners in the
Philippine Institute of Certified Public
pursuit of local autonomy.
Accountants, if any.
 Representatives of the Commission on (b) Candidates for the position of governor, vice-
Audit shall observe the proceedings of such governor, or member of the sangguniang
committee and shall certify that the rules panlalawigan, or mayor, vice-mayor or member of
and procedures for prequalification, bids the sangguniang panlungsod of highly urbanized
and awards have been complied with. cities must be at least twenty-one (21) years of age
on election day.
(b) The agenda and other information relevant to
the meetings of such committee shall be deliberated (c) Candidates for the position of mayor or vice-
upon by the committee at least one (1) week before mayor of independent component cities, component
the holding of such meetings. cities, or municipalities must be at least twenty-one
(21) years of age on election day.
(c) All meetings of the committee shall be held in the
provincial capitol or the city or municipal hall. The (d) Candidates for the position of member of the
minutes of such meetings of the committee and any sangguniang panlungsod or sangguniang bayan must
decision made therein shall be duly recorded, posted be at least eighteen (18) years of age on election
at a prominent place in the provincial capitol or the day.
city or municipal hall, and delivered by the most
expedient means to elective local officials (e) Candidates for the position of punong barangay
concerned. or member of the sangguniang barangay must be at
least eighteen (18) years of age on election day.
Section 38. Local Technical Committee. -
(f) Candidates for the sangguniang kabataan must be
(a) There is hereby created a local technical at least fifteen (15) years of age but not more than
committee in every province, city and municipality twenty-one (21) years of age on election day.
to provide technical assistance to the local
prequalification, bids and awards committees. It Section 40. Disqualifications. - The following persons are
shall be composed of the provincial, city or municipal disqualified from running for any elective local position:
engineer, the local planning and development
coordinator, and such other officials designated by (a) Those sentenced by final judgment for an offense
the local prequalification, bids and awards involving moral turpitude or for an offense
committee. punishable by one (1) year or more of imprisonment,
within two (2) years after serving sentence;
(b) The chairman of the local technical committee
shall be designated by the local prequalification, bids (b) Those removed from office as a result of an
and awards committee and shall attend its meeting administrative case;
in order to present the reports and
recommendations of the local technical committee.
(c) Those convicted by final judgment for violating
the oath of allegiance to the Republic;
TITLE II
ELECTIVE OFFICIALS
(d) Those with dual citizenship;

CHAPTER I
(e) Fugitives from justice in criminal or non-political
Qualifications and Election
cases here or abroad;

Section 39. Qualifications. - (f) Permanent residents in a foreign country or those

who have acquired the right to reside abroad and
(a) An elective local official must be a citizen of the continue to avail of the same right after the
Philippines; a registered voter in the barangay, effectivity of this Code; and
municipality, city, or province or, in the case of a
member of the sangguniang panlalawigan,
(g) The insane or feeble-minded.
sangguniang panlungsod, or sangguniang bayan, the
district where he intends to be elected; a resident
therein for at least one (1) year immediately Section 41. Manner of Election. -
preceding the day of the election; and able to read
and write Filipino or any other local language or (a) The governor, vice-governor, city mayor, city
dialect. vice-mayor, municipal mayor, municipal vice-mayor,
and punong barangay shall be elected at large in
 their respective units by the qualified voters therein. three (3) years, which shall begin after the regular
However, the sangguniang kabataan chairman for election of barangay officials on the second Monday
each barangay shall be elected by the registered of May 1994.
voters of the katipunan ng kabataan, as provided in
this Code. CHAPTER II
Vacancies and Succession
(b) The regular members of the sangguniang
panlalawigan, sangguniang panlungsod, and Section 44. Permanent Vacancies in the Offices of the
sangguniang bayan shall be elected by district, as Governor, Vice-Governor, Mayor, and Vice-Mayor. - If a
may be provided for by law. Sangguniang barangay permanent vacancy occurs in the office of the governor or
members shall be elected at large. The presidents of mayor, the vice-governor or vice-mayor concerned shall
the leagues of sanggunian members of component become the governor or mayor. If a permanent vacancy
cities and municipalities shall serve as ex officio occurs in the offices of the governor, vice-governor, mayor, or
members of the sangguniang panlalawigan vice-mayor, the highest ranking sanggunian member or, in
concerned. The presidents of the "liga ng mga case of his permanent inability, the second highest ranking
barangay and the pederasyon ng mga sangguniang sanggunian member, shall become the governor, vice-
kabataan" elected by their respective chapters, as governor, mayor or vice-mayor, as the case may be.
provided in this Code, shall serve as ex officio Subsequent vacancies in the said office shall be filled
members of the sangguniang panlalawigan, automatically by the other sanggunian members according to
sangguniang panlungsod, and sangguniang bayan. their ranking as defined herein.

(c) In addition thereto, there shall be one (1) sectoral (b) If a permanent vacancy occurs in the office of the
representative from the women, one (1) from the punong barangay, the highest ranking sanggunian
workers, and one (1) from any of the following barangay member or, in case of his permanent
sectors: the urban poor, indigenous cultural inability, the second highest ranking sanggunian
communities, disabled persons, or any other sector member, shall become the punong barangay.
as may be determined by the sanggunian concerned
within ninety (90) days prior to the holding of the (c) A tie between or among the highest ranking
next local elections as may be provided for by law. sanggunian members shall be resolved by the
The COMELEC shall promulgate the rules and drawing of lots.
regulations to effectively provide for the election of
such sectoral representatives. (d) The successors as defined herein shall serve only
the unexpired terms of their predecessors.
Section 42. Date of Election. - Unless otherwise provided by
law, the elections for local officials shall be held every three
For purposes of this Chapter, a permanent vacancy
(3) years on the second Monday of May. arises when an elective local official fills a higher
vacant office, refuses to assume office, fails to
Section 43. Term of Office. - qualify, dies, is removed from office, voluntarily
resigns, or is otherwise permanently incapacitated to
(a) The term of office of all local elective officials discharge the functions of his office.
elected after the effectivity of this Code shall be
three (3) years, starting from noon of June 30, 1992 For purposes of succession as provided in the Chapter,
or such date as may be provided for by law, except ranking in the sanggunian shall be determined on the basis of
that of elective barangay officials: Provided, That all the proportion of votes obtained by each winning candidate
local officials first elected during the local elections to the total number of registered voters in each district in the
immediately following the ratification of the 1987 immediately preceding local election.
Constitution shall serve until noon of June 30, 1992.
Section 45. Permanent Vacancies in the Sanggunian. -
(b) No local elective official shall serve for more than
three (3) consecutive terms in the same position.
(a) Permanent vacancies in the sanggunian where
Voluntary renunciation of the office for any length of
automatic succession provided above do not apply
time shall not be considered as an interruption in the
shall be filled by appointment in the following
continuity of service for the full term for which the
manner:
elective official concerned was elected.
(1) The President, through the Executive
(c) The term of office of barangay officials and
Secretary, in the case of the sangguniang
members of the sangguniang kabataan shall be for
panlalawigan and the sangguniang
 panlungsod of highly urbanized cities and period of temporary incapacity exceeds thirty (30)
independent component cities; working days.

(2) The governor, in the case of the (b) Said temporary incapacity shall terminate upon
sangguniang panlungsod of component submission to the appropriate sanggunian of a
cities and the sangguniang bayan; written declaration by the local chief executive
concerned that he has reported back to office. In
(3) The city or municipal mayor, in the case cases where the temporary incapacity is due to legal
of sangguniang barangay, upon causes, the local chief executive concerned shall also
recommendation of the sangguniang submit necessary documents showing that said legal
barangay concerned. causes no longer exist.

(b) Except for the sangguniang barangay, only the (c) When the incumbent local chief executive is
nominee of the political party under which the traveling within the country but outside his
sanggunian member concerned had been elected territorial jurisdiction for a period not exceeding
and whose elevation to the position next higher in three (3) consecutive days, he may designate in
rank created the last vacancy in the sanggunian shall writing the officer-in-charge of the said office. Such
be appointed in the manner hereinabove provided. authorization shall specify the powers and functions
The appointee shall come from the same political that the local official concerned shall exercise in the
party as that of the sanggunian member who caused absence of the local chief executive except the
the vacancy and shall serve the unexpired term of power to appoint, suspend, or dismiss employees.
the vacant office. In the appointment herein
mentioned, a nomination and a certificate of (d) In the event, however, that the local chief
membership of the appointee from the highest executive concerned fails or refuses to issue such
official of the political party concerned are authorization, the vice-governor, the city or
conditions sine qua non, and any appointment municipal vice-mayor, or the highest ranking
without such nomination and certification shall be sangguniang barangay member, as the case may be,
null and void ab initio and shall be a ground for shall have the right to assume the powers, duties,
administrative action against the official responsible and functions of the said office on the fourth (4th)
therefore. day of absence of the said local chief executive,
subject to the limitations provided in subsection (c)
(c) In case or permanent vacancy is caused by a hereof.
sanggunian member who does not belong to any
political party, the local chief executive shall, upon (e) Except as provided above, the local chief
recommendation of the sanggunian concerned, executive shall in no case authorize any local official
appoint a qualified person to fill the vacancy. to assume the powers, duties, and functions of the
office, other than the vice-governor, the city or
(d) In case of vacancy in the representation of the municipal vice-mayor, or the highest ranking
youth and the barangay in the sanggunian, said sangguniang barangay member, as the case may be.
vacancy shall be filled automatically by the official
next in rank of the organization concerned. Section 47. Approval of Leaves of Absence. -

Section 46. Temporary Vacancy in the Office of the Local Chief (a) Leaves of absence of local elective officials shall
Executive. - be approved as follows:

(a) When the governor, city or municipal mayor, or (1) Leaves of absence of the governor and
punong barangay is temporarily incapacitated to the mayor of a highly urbanized city or an
perform his duties for physical or legal reasons such independent component city shall be
as, but not limited to, leave of absence, travel approved by the President or his duly
abroad, and suspension from office, the vice- authorized representative;
governor, city or municipal vice-mayor, or the
highest ranking sangguniang barangay member shall (2) Leaves of absence of vice-governor or a
automatically exercise the powers and perform the city or municipal vice-mayor shall be
duties and functions of the local chief executive approved by the local chief executive
concerned, except the power to appoint, suspend, or concerned: Provided, That the leaves of
dismiss employees which can only be exercised if the absence of the members of the sanggunian
and its employees shall be approved by the
 vice-governor or city or municipal vice- (1) The organization of the sanggunian and
mayor concerned; the election of its officers as well as the
creation of standing committees which shall
(3) Leaves of absence of the component city include, but shall not be limited to, the
or municipal mayor shall be approved by committees on appropriations, women and
the governor; and family, human rights, youth and sports
development, environmental protection,
(4) Leaves of absence of a punong barangay and cooperatives; the general jurisdiction of
shall be approved by the city or municipal each committee; and the election of the
mayor: Provided, That leaves of absence of chairman and members of each committee;
sangguniang barangay members shall be
approved by the punong barangay. (2) The order and calendar of business for
each session;
(b) Whenever the application for leave of absence
hereinabove specified is not acted upon within five (3) The legislative process;
(5) working days after receipt thereof, the
application for leave of absence shall be deemed (4) The parliamentary procedures which
approved. include the conduct of members during
sessions;
CHAPTER III
Local Legislation (5) The discipline of members for disorderly
behavior and absences without justifiable
Section 48. Local Legislative Power. - Local legislative power cause for four (4) consecutive sessions, for
shall be exercised by the sangguniang panlalawigan for the which they may be censured, reprimanded,
province; the sangguniang panlungsod for the city; the or excluded from the session, suspended
sangguniang bayan for the municipality; and the sangguniang for not more than sixty (60) days, or
barangay for the barangay. expelled: Provided, That the penalty of
suspension or expulsion shall require the
Section 49. Presiding Officer. - concurrence of at least two-thirds (2/3)
vote of all the sanggunian members:
Provided, further, That a member convicted
(a) The vice-governor shall be the presiding officer of
by final judgment to imprisonment of at
the sangguniang panlalawigan; the city vice-mayor,
least one (1) year for any crime involving
of the sangguniang panlungsod; the municipal vice-
moral turpitude shall be automatically
mayor, of the sangguniang bayan; and the punong
expelled from the sanggunian; and
barangay, of the sangguniang barangay. The
presiding officer shall vote only to break a tie.
(6) Such other rules as the sanggunian may
adopt.lawphil™
(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 Section 51. Full Disclosure of Financial and Business Interests
shall elect from among themselves a temporary of Sanggunian Members. -
presiding officer. He shall certify within ten (10) days
from the passage of ordinances enacted and (a) Every sanggunian member shall, upon
resolutions adopted by the sanggunian in the session assumption to office, make a full disclosure of his
over which he temporarily presided. business and financial interests, or professional
relationship or any relation by affinity or
Section 50. Internal Rules of Procedure. - consanguinity within the fourth civil degree, which
he may have with any person, firm, or entity
affected by any ordinance or resolution under
(a) On the first regular session following the election
consideration by the sanggunian of which he is a
of its members and within ninety (90) days
member, which relationship may result in conflict of
thereafter, the sanggunian concerned shall adopt or
interest. Such relationship shall include:
update its existing rules of procedure.

(1) Ownership of stock or capital, or

(b) The rules of procedure shall provided for the
investment, in the entity or firm to which
following:
the ordinance or resolution may apply; and
 (2) Contracts or agreements with any present, there being a quorum, in the public interest
person or entity which the ordinance or or for reasons of security, decency, or morality. No
resolution under consideration may affect. two (2) sessions, regular or special, may be held in a
single day.
In the absence of a specific constitutional or
statutory provision applicable to this (d) In the case of special sessions of the sanggunian,
situation, "conflict of interest" refers in a written notice to the members shall be served
general to one where it may be reasonably personally at the member's usual place of residence
deduced that a member of a sanggunian at least twenty-four (24) hours before the special
may not act in the public interest due to session is held.
some private, pecuniary, or other personal
considerations that may tend to affect his Unless otherwise concurred in by two-thirds (2/3)
judgment to the prejudice of the service or vote of the sanggunian members present, there
the public. being a quorum, no other matters may be
considered at a special session except those stated
(b) The disclosure required under this Act shall be in the notice.
made in writing and submitted to the secretary of
the sanggunian or the secretary of the committee of (e) Each sanggunian shall keep a journal and record
which he is a member. The disclosure shall, in all of its proceedings which may be published upon
cases, form part of the record of the proceedings resolution of the sanggunian concerned.
and shall be made in the following manner:
Section 53. Quorum. -
(1) Disclosure shall be made before the
member participates in the deliberations on (a) A majority of all the members of the sanggunian
the ordinance or resolution under who have been elected and qualified shall constitute
consideration: Provided, That, if the a quorum to transact official business. Should a
member did not participate during the question of quorum be raised during a session, the
deliberations, the disclosure shall be made presiding officer shall immediately proceed to call
before voting on the ordinance or the roll of the members and thereafter announce
resolution on second and third readings; the results.
and
(b) Where there is no quorum, the presiding officer
(2) Disclosure shall be made when a may declare a recess until such time as a quorum is
member takes a position or makes a constituted, or a majority of the members present
privilege speech on a matter that may affect may adjourn from day to day and may compel the
the business interest, financial connection, immediate attendance of any member absent
or professional relationship described without justifiable cause by designating a member of
herein. the sanggunian to be assisted by a member or
members of the police force assigned in the
Section 52. Sessions. - territorial jurisdiction of the local government unit
concerned, to arrest the absent member and
(a) On the first day of the session immediately present him at the session.
following the election of its members, the
sanggunian shall, by resolution, fix the day, time, and (c) If there is still no quorum despite the
place of its regular sessions. The minimum numbers enforcement of the immediately preceding
of regular sessions shall be once a week for the subsection, no business shall be transacted. The
sangguniang panlalawigan, sangguniang panlungsod, presiding officer, upon proper motion duly approved
and sangguniang bayan, and twice a month for the by the members present, shall then declare the
sangguniang barangay. session adjourned for lack of quorum.

(b) When public interest so demands, special Section 54. Approval of Ordinances. -
sessions may be called by the local chief executive or
by a majority of the members of the sanggunian. (a) Every ordinance enacted by the sangguniang
panlalawigan, sangguniang panlungsod, or
(c) All sanggunian sessions shall be open to the sangguniang bayan shall be presented to the
public unless a closed-door session is ordered by an provincial governor or city or municipal mayor, as
affirmative vote of a majority of the members the case may be. If the local chief executive
 concerned approves the same, he shall affix his sangguniang bayan shall forward to the sangguniang
signature on each and every page thereof; panlalawigan for review, copies of approved
otherwise, he shall veto it and return the same with ordinances and the resolutions approving the local
his objections to the sanggunian, which may proceed development plans and public investment programs
to reconsider the same. The sanggunian concerned formulated by the local development councils.
may override the veto of the local chief executive by
two-thirds (2/3) vote of all its members, thereby (b) Within thirty (30) days after the receipt of copies
making the ordinance or resolution effective for all of such ordinances and resolutions, the sangguniang
legal intents and purposes. panlalawigan shall examine the documents or
transmit them to the provincial attorney, or if there
(b) The veto shall be communicated by the local be none, to the provincial prosecutor for prompt
chief executive concerned to the sanggunian within examination. The provincial attorney or provincial
fifteen (15) days in the case of a province, and ten prosecutor shall, within a period of ten (10) days
(10) days in the case of a city or a municipality; from receipt of the documents, inform the
otherwise, the ordinance shall be deemed approved sangguniang panlalawigan in writing of his
as if he had signed it. comments or recommendations, which may be
considered by the sangguniang panlalawigan in
(c) Ordinances enacted by the sangguniang barangay making its decision.
shall, upon approval by the majority of all its
members, be signed by the punong barangay. (c) If the sangguniang panlalawigan finds that such
an ordinance or resolution is beyond the power
Section 55. Veto Power of the Local Chief Executive. - conferred upon the sangguniang panlungsod or
sangguniang bayan concerned, it shall declare such
(a) The local chief executive may veto any ordinance ordinance or resolution invalid in whole or in part.
of the sanggunian panlalawigan, sangguniang The sangguniang panlalawigan shall enter its action
panlungsod, or sanggunian bayan on the ground that in the minutes and shall advise the corresponding
it is ultra vires or prejudicial to the public welfare, city or municipal authorities of the action it has
stating his reasons therefor in writing. taken.

(b) The local chief executive, except the punong (d) If no action has been taken by the sangguniang
barangay, shall have the power to veto any panlalawigan within thirty (30) days after submission
particular item or items of an appropriations of such an ordinance or resolution, the same shall be
ordinance, an ordinance or resolution adopting a presumed consistent with law and therefore valid.
local development plan and public investment
program, or an ordinance directing the payment of Section 57. Review of Barangay Ordinances by the
money or creating liability. In such a case, the veto Sangguniang Panlungsod or Sangguniang Bayan. -
shall not affect the item or items which are not
objected to. The vetoed item or items shall not take (a) Within ten (10) days after its enactment, the
effect unless the sanggunian overrides the veto in sangguniang barangay shall furnish copies of all
the manner herein provided; otherwise, the item or barangay ordinances to the sangguniang panlungsod
items in the appropriations ordinance of the or sangguniang bayan concerned for review as to
previous year corresponding to those vetoed, if any, whether the ordinance is consistent with law and
shall be deemed reenacted. city or municipal ordinances.

(c) The local chief executive may veto an ordinance (b) If the sangguniang panlungsod or sangguniang
or resolution only once. The sanggunian may bayan, as the case may be, fails to take action on
override the veto of the local chief executive barangay ordinances within thirty (30) days from
concerned by two-thirds (2/3) vote of all its receipt thereof, the same shall be deemed
members, thereby making the ordinance effective approved.
even without the approval of the local chief
executive concerned. (c) If the sangguniang panlungsod or sangguniang
bayan, as the case may be, finds the barangay
Section 56. Review of Component City and Municipal ordinances inconsistent with law or city or municipal
Ordinances or Resolutions by the Sangguniang Panlalawigan. ordinances, the sanggunian concerned shall, within
thirty (30) days from receipt thereof, return the
(a) Within three (3) days after approval, the same with its comments and recommendations to
secretary to the sanggunian panlungsod or the sangguniang barangay concerned for
 adjustment, amendment, or modification; in which CHAPTER IV
case, the effectivity of the barangay ordinance is Disciplinary Actions
suspended until such time as the revision called for
is effected. Section 60. Grounds for Disciplinary Actions. - An elective
local official may be disciplined, suspended, or removed from
Section 58. Enforcement of Disapproved Ordinances or office on any of the following grounds:
Resolutions. - Any attempt to enforce any ordinance or any
resolution approving the local development plan and public (a) Disloyalty to the Republic of the Philippines;
investment program, after the disapproval thereof, shall be
sufficient ground for the suspension or dismissal of the (b) Culpable violation of the Constitution;
official or employee concerned.
(c) Dishonesty, oppression, misconduct in office,
Section 59. Effectivity of Ordinances or Resolutions. - gross negligence, or dereliction of duty;

(a) Unless otherwise stated in the ordinance or the (d) Commission of any offense involving moral
resolution approving the local development plan and turpitude or an offense punishable by at least prision
public investment program, the same shall take mayor;
effect after ten (10) days from the date a copy
thereof is posted in a bulletin board at the entrance
(e) Abuse of authority;
of the provincial capitol or city, municipal, or
barangay hall, as the case may be, and in at least two
(f) Unauthorized absence for fifteen (15) consecutive
(2) other conspicuous places in the local government
working days, except in the case of members of the
unit concerned.
sangguniang panlalawigan, sangguniang panlungsod,
sangguniang bayan, and sangguniang barangay;
(b) The secretary to the sanggunian concerned shall
cause the posting of an ordinance or resolution in
(g) Application for, or acquisition of, foreign
the bulletin board at the entrance of the provincial
citizenship or residence or the status of an
capitol and the city, municipal, or barangay hall in at
least two (2) conspicuous places in the local immigrant of another country; and
government unit concerned not later than five (5)
days after approval thereof. (h) Such other grounds as may be provided in this
Code and other laws.
The text of the ordinance or resolution shall be
disseminated and posted in Filipino or English and in An elective local official may be removed from office on the
the language understood by the majority of the grounds enumerated above by order of the proper court.
people in the local government unit concerned, and
the secretary to the sanggunian shall record such Section 61. Form and Filing of Administrative Complaints. - A
fact in a book kept for the purpose, stating the dates verified complaint against any erring local elective official
of approval and posting. shall be prepared as follows:

(c) The gist of all ordinances with penal sanctions (a) A complaint against any elective official of a
shall be published in a newspaper of general province, a highly urbanized city, an independent
circulation within the province where the local component city or component city shall be filed
legislative body concerned belongs. In the absence before the Office of the President;
of any newspaper of general circulation within the
province, posting of such ordinances shall be made (b) A complaint against any elective official of a
in all municipalities and cities of the province where municipality shall be filed before the sangguniang
the sanggunian of origin is situated. panlalawigan whose decision may be appealed to
the Office of the President; and
(d) In the case of highly urbanized and independent
component cities, the main features of the (c) A complaint against any elective barangay official
ordinance or resolution duly enacted or adopted shall be filed before the sangguniang panlungsod or
shall, in addition to being posted, be published once sangguniang bayan concerned whose decision shall
in a local newspaper of general circulation within the be final and executory.
city: Provided, That in the absence thereof the
ordinance or resolution shall be published in any Section 62. Notice of hearing. -
newspaper of general circulation.
 (a) Within seven (7) days after the administrative (c) Upon expiration of the preventive suspension,
complaint is filed, the Office of the President or the the suspended elective official shall be deemed
sanggunian concerned, as the case may be, shall reinstated in office without prejudice to the
require the respondent to submit his verified answer continuation of the proceedings against him, which
within fifteen (15) days from receipt thereof, and shall be terminated within one hundred twenty
commence the investigation of the case within ten (120) days from the time he was formally notified of
(10) days after receipt of such answer of the the case against him. However, if the delay in the
respondent. proceedings of the case is due to his fault, neglect,
or request, other than the appeal duly filed, the
(b) When the respondent is an elective official of a duration of such delay shall not be counted in
province or highly urbanized city, such hearing and computing the time of termination of the case.
investigation shall be conducted in the place where
he renders or holds office. For all other local elective (d) Any abuse of the exercise of the power of
officials, the venue shall be the place where the preventive suspension shall be penalized as abuse of
sanggunian concerned is located. authority.

(c) However, no investigation shall be held within Section 64. Salary of Respondent Pending Suspension. - The
ninety (90) days immediately prior to any local respondent official preventively suspended from office shall
election, and no preventive suspension shall be receive no salary or compensation during such suspension;
imposed within the said period. If preventive but upon subsequent exoneration and reinstatement, he shall
suspension has been imposed prior to the 90-day be paid full salary or compensation including such
period immediately preceding local election, it shall emoluments accruing during such suspension.
be deemed automatically lifted upon the start of
aforesaid period. Section 65. Rights of Respondent. - The respondent shall be
accorded full opportunity to appear and defend himself in
Section 63. Preventive Suspension. - person or by counsel, to confront and cross-examine the
witnesses against him, and to require the attendance of
(a) Preventive suspension may be imposed: witnesses and the production of documentary process of
subpoena or subpoena duces tecum.
(1) By the President, if the respondent is an
elective official of a province, a highly Section 66. Form and Notice of Decision. -
urbanized or an independent component
city; (a) The investigation of the case shall be terminated
within ninety (90) days from the start thereof.
(2) By the governor, if the respondent is an Within thirty (30) days after the end of the
elective official of a component city or investigation, the Office of the President or the
municipality; or sanggunian concerned shall render a decision in
writing stating clearly and distinctly the facts and the
(3) By the mayor, if the respondent is an reasons for such decision. Copies of said decision
elective official of the barangay. shall immediately be furnished the respondent and
all interested parties.
(b) Preventive suspension may be imposed at any
time after the issues are joined, when the evidence (b) The penalty of suspension shall not exceed the
of guilt is strong, and given the gravity of the unexpired term of the respondent or a period of six
offense, there is great probability that the (6) months for every administrative offense, nor
continuance in office of the respondent could shall said penalty be a bar to the candidacy of the
influence the witnesses or pose a threat to the respondent so suspended as long as he meets the
safety and integrity of the records and other qualifications required for the office.
evidence: Provided, That, any single preventive
suspension of local elective officials shall not extend (c) The penalty of removal from office as a result of
beyond sixty (60) days: Provided, further, That in the an administrative investigation shall be considered a
event that several administrative cases are filed bar to the candidacy of the respondent for any
against an elective official, he cannot be preventively elective position.
suspended for more than ninety (90) days within a
single year on the same ground or grounds existing Section 67. Administrative Appeals. - Decisions in
and known at the time of the first suspension. administrative cases may, within thirty (30) days from receipt
thereof, be appealed to the following:
 (a) The sangguniang panlalawigan, in the case of (c) A majority of all the preparatory recall assembly
decisions of the sangguniang panlungsod of members may convene in session in a public place
component cities and the sangguniang bayan; and and initiate a recall proceedings against any elective
official in the local government unit concerned.
(b) The Office of the President, in the case of Recall of provincial, city, or municipal officials shall
decisions of the sangguniang panlalawigan and the be validly initiated through a resolution adopted by a
sangguniang panlungsod of highly urbanized cities majority of all the members of the preparatory recall
and independent component cities. assembly concerned during its session called for the
purpose.
Decisions of the Office of the President shall be final and
executory. (d) Recall of any elective provincial, city, municipal,
or barangay official may also be validly initiated
Section 68. Execution Pending Appeal. - An appeal shall not upon petition of at least twenty-five percent (25%)
prevent a decision from becoming final or executory. The of the total number of registered voters in the local
respondent shall be considered as having been placed under government unit concerned during the election in
preventive suspension during the pendency of an appeal in which the local official sought to be recalled was
the event he wins such appeal. In the event the appeal results elected.
in an exoneration, he shall be paid his salary and such other
emoluments during the pendency of the appeal. (1) A written petition for recall duly signed
before the election registrar or his
CHAPTER V representative, and in the presence of a
Recall representative of the petitioner and a
representative of the official sought to be
recalled and, and in a public place in the
Section 69. By Whom Exercised. - The power of recall for loss
province, city, municipality, or barangay, as
of confidence shall be exercised by the registered voters of a
the case may be, shall be filed with the
local government unit to which the local elective official
COMELEC through its office in the local
subject to such recall belongs.
government unit concerned. The COMELEC
or its duly authorized representative shall
Section 70. Initiation of the Recall Process. - cause the publication of the petition in a
public and conspicuous place for a period of
(a) Recall may be initiated by a preparatory recall not less than ten (10) days nor more than
assembly or by the registered voters of the local twenty (20) days, for the purpose of
government unit to which the local elective official verifying the authenticity and genuineness
subject to such recall belongs. of the petition and the required percentage
of voters.
(b) There shall be a preparatory recall assembly in
every province, city, district, and municipality which (2) Upon the lapse of the aforesaid period,
shall be composed of the following: the COMELEC or its duly authorized
representative shall announce the
(1) Provincial level. - All mayors, vice- acceptance of candidates to the position
mayors, and sanggunian members of the and thereafter prepare the list of
municipalities and component cities; candidates which shall include the name of
the official sought to be recalled.
(2) City level. - All punong barangay and
sanggunian barangay members in the city; Section 71. Election on Recall. - Upon the filing of a valid
resolution or petition for recall with the appropriate local
(3) Legislative District level. - In case where office of the COMELEC, the Commission or its duly authorized
sangguniang panlalawigan members are representative shall set the date of the election on recall,
elected by district, all elective municipal which shall not be later than thirty (30) days after the filing of
officials in the district; and in cases where the resolution or petition for recall in the case of the
sangguniang panlungsod members are barangay, city, or municipal officials. and forty-five (45) days
elected by district, all elective barangay in the case of provincial officials. The official or officials
officials in the district; and sought to be recalled shall automatically be considered as
duly registered candidate or candidates to the pertinent
(4) Municipal level. - All punong barangay positions and, like other candidates, shall be entitled to be
and sangguniang barangay members in the voted upon.
municipality.
Section 72. Effectivity of Recall. - The recall of an elective The Joint Commission on Local Government Personnel
local official shall be effective only upon the election and Administration organized pursuant to Presidential Decree
proclamation of a successor in the person of the candidate Numbered Eleven Hundred thirty-six (P.D. No. 1136) is hereby
receiving the highest number of votes cast during the election abolished and its personnel, records, equipment and other
on recall. Should the official sought to be recalled receive the assets transferred to the appropriate office in the Civil Service
highest number of votes, confidence in him is thereby Commission.
affirmed, and he shall continue in office.
Section 78. Civil Service Law, Rules and Regulations, and
Section 73. Prohibition from Resignation. - The elective local Other Related Issuances. - All matters pertinent to human
official sought to be recalled shall not be allowed to resign resources and development in local government units shall
while the recall process is in progress. be governed by the civil service law and such rules and
regulations and other issuances promulgated pursuant
Section 74. Limitations on Recall. - thereto, unless otherwise specified in this Code.

(a) Any elective local official may be the subject of a Section 79. Limitation to Appointments. - No person shall be
recall election only once during his term of office for appointed in the career service of the local government if he
loss of confidence. is related within the fourth civil degree of consanguinity or
affinity to the appointing or recommending authority.
(b) No recall shall take place within one (1) year from
the date of the official's assumption to office or one Section 80. Public Notice of Vacancy; Personnel Selection
(1) year immediately preceding a regular local Board. -
election.
(a) Whenever a local executive decides to fill a
Section 75. Expenses Incident to Recall Elections. - All vacant career position, there shall be posted notices
expenses incident to recall elections shall be borne by the of the vacancy in at least three (3) conspicuous
COMELEC. For this purpose, there shall be included in the public places in the local government unit concerned
annual General Appropriations Act a contingency fund at the for a period of not less than fifteen (15) days.
disposal of the COMELEC for the conduct of recall elections.
(b) There shall be established in every province, city
TITLE III. or municipality a personnel selection board to assist
HUMAN RESOURCES AND DEVELOPMENT the local chief executive in the judicious and
objective selection or personnel for employment as
Section 76. Organizational Structure and Staffing Pattern. - well as for promotion, and in the formulation of such
Every local government unit shall design and implement its policies as would contribute to employee welfare.
own organizational structure and staffing pattern taking into
consideration its service requirements and financial (c) The personnel selection board shall be headed by
capability, subject to the minimum standards and guidelines the local chief executive, and its members shall be
prescribed by the Civil Service Commission. determined by resolution of the sanggunian
concerned. A representative of the Civil Service
Section 77. Responsibility for Human Resources and Commission, if any, and the personnel officer of the
Development. - The chief executive of every local government local government unit concerned shall be ex officio
unit shall be responsible for human resources and members of the board.
development in his unit and shall take all personnel actions in
accordance with the Constitutional provisions on civil service, Section 81. Compensation of Local Officials and Employees. -
pertinent laws, and rules and regulations thereon, including The compensation of local officials and personnel shall be
such policies, guidelines and standards as the Civil Service determined by the sanggunian concerned: Provided, That the
Commission may establish: Provided, That the local chief increase in compensation of elective local officials shall take
executive may employ emergency or casual employees or effect only after the terms of office of those approving such
laborers paid on a daily wage or piecework basis and hired increase shall have expired: Provided, further, That the
through job orders for local projects authorized by the increase in compensation of the appointive officials and
sanggunian concerned, without need of approval or employees shall take effect as provided in the ordinance
attestation by the Civil Service Commission: Provided, further, authorizing such increase: Provided, however, That said
That the period of employment of emergency or casual increases shall not exceed the limitations on budgetary
laborers as provided in this Section shall not exceed six (6) allocations for personal services provided under Title Five,
months. 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 Section 84. Administrative Discipline. - Investigation and
Classification Act of 1989". adjudication of administrative complaints against appointive
local officials and employees as well as their suspension and
The punong barangay, the sangguniang barangay member, removal shall be in accordance with the civil service law and
the sangguniang kabataan chairman, the barangay treasurer, rules and other pertinent laws. The results of such
and the barangay secretary shall be entitled to such administrative investigations shall be reported to the Civil
compensation, allowances, emoluments, and such other Service Commission.
privileges as provided under Title One Book III of this Code.
Section 85. Preventive Suspension of Appointive Local
Elective local officials shall be entitled to the same leave Officials and Employees. -
privileges as those enjoyed by appointive local officials,
including the cumulation and commutation thereof. (a) The local chief executives may preventively
suspend for a period not exceeding sixty (60) days
Section 82. Resignation of Elective Local Officials. - and subordinate official or employee under his
authority pending investigation if the charge against
(a) Resignations by elective local officials shall be such official or employee involves dishonesty,
deemed effective only upon acceptance by the oppression or grave misconduct or neglect in the
following authorities: 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.
(1) The President, in the case of governors,
vice-governors, and mayors and vice-
mayors of highly urbanized cities and (b) Upon expiration of the preventive suspension,
independent component cities; the suspended official or employee shall be
automatically reinstated in office without prejudice
to the continuation of the administrative
(2) The governor, in the case of municipal
proceedings against him until its termination. If the
mayors, municipal vice-mayors, city mayors
delay in the proceedings of the case is due to the
and city vice-mayors of component cities;
fault, neglect or request of the respondent, the time
of the delay shall not be counted in computing the
(3) The sanggunian concerned, in the case
period of suspension herein provided.
of sanggunian members; and
Section 86. Administrative Investigation. - In any local
(4) The city or municipal mayor, in the case government unit, administrative investigation may be
of barangay officials. conducted by a person or a committee duly authorized by the
local chief executive. Said person or committee shall conduct
(b) Copies of the resignation letters of elective local hearings on the cases brought against appointive local
officials, together with the action taken by the officials and employees and submit their findings and
aforesaid authorities, shall be furnished the recommendations to the local chief executive concerned
Department of the Interior and Local Government. within fifteen (15) days from the conclusion of the hearings.
The administrative cases herein mentioned shall be decided
(c) The resignation shall be deemed accepted if not within ninety (90) days from the time the respondent is
acted upon by the authority concerned within fifteen formally notified of the charges.
(15) days from receipt thereof.
Section 87. Disciplinary Jurisdiction. - Except as otherwise
(d) Irrevocable resignations by sanggunian members provided by law, the local chief executive may impose the
shall be deemed accepted upon presentation before penalty of removal from service, demotion in rank,
an open session of the sanggunian concerned and suspension for not more than one (1) year without pay, fine
duly entered in its records: Provided, however, That in an amount not exceeding six (6) months salary, or
this subsection does not apply to sanggunian reprimand and otherwise discipline subordinate officials and
members who are subject to recall elections or to employees under his jurisdiction. If the penalty imposed is
cases where existing laws prescribed the manner of suspension without pay for not more than thirty (30) days, his
acting upon such resignations. decision shall be final. If the penalty imposed is heavier than
suspension of thirty (30) days, the decision shall be
Section 83. Grievance Procedure. - In every local government appealable to the Civil Service Commission, which shall
unit, the local chief executive shall establish a procedure to decide the appeal within thirty (30) days from receipt
inquire into, act upon, resolve or settle complaints and thereof.
grievances presented by local government employees.
Section 88. Execution Pending Appeal. - An appeal shall not (b) Sanggunian members may practice their
prevent the execution of a decision of removal or suspension professions, engage in any occupation, or teach in
of a respondent-appellant. In case the respondent-appellant schools except during session hours: Provided, That
is exonerated, he shall be reinstated to his position with all sanggunian members who are also members of the
the rights and privileges appurtenant thereto from the time Bar shall not:
he had been deprived thereof.
(1) Appear as counsel before any court in
Section 89. Prohibited Business and Pecuniary Interest. - any civil case wherein a local government
unit or any office, agency, or
(a) It shall be unlawful for any local government instrumentality of the government is the
official or employee, directly or indirectly, to: adverse party;

(1) Engage in any business transaction with (2) Appear as counsel in any criminal case
the local government unit in which he is an wherein an officer or employee of the
official or employee or over which he has national or local government is accused of
the power of supervision, or with any of its an offense committed in relation to his
authorized boards, officials, agents, or office.
attorneys, whereby money is to be paid, or
property or any other thing of value is to be (3) Collect any fee for their appearance in
transferred, directly or indirectly, out of the administrative proceedings involving the
resources of the local government unit to local government unit of which he is an
such person or firm; official; and

(2) Hold such interests in any cockpit or (4) Use property and personnel of the
other games licensed by a local government government except when the sanggunian
unit; member concerned is defending the
interest of the government.
(3) Purchase any real estate or other
property forfeited in favor of such local (c) Doctors of medicine may practice their profession
government unit for unpaid taxes or even during official hours of work only on occasions
assessment, or by virtue of a legal process of emergency: Provided, That the officials concerned
at the instance of the said local government do not derive monetary compensation therefrom.
unit;
Section 91. Statement of Assets and Liabilities. - (a) Officials
(4) Be a surety for any person contracting or and employees of local government units shall file sworn
doing business with the local government statements of assets, liabilities and net worth, lists of
unit for which a surety is required; and relatives within the fourth civil degree of consanguinity or
affinity in government service, financial and business
(5) Possess or use any public property of the interests, and personnel data sheets as required by law.
local government unit for private purposes.
Section 92. Oath of Office. - (a) All elective and appointive
(b) All other prohibitions governing the conduct of local officials and employees shall, upon assumption to office,
national public officers relating to prohibited subscribe to an oath or affirmation of office in the prescribed
business and pecuniary interest so provided for form. The oath or affirmation of office shall be filed with the
under Republic Act Numbered Sixty-seven thirteen office of the local chief executive concerned. A copy of the
(R.A. No. 6713) otherwise known as the "Code of oath or affirmation of office of all elective and appointive
Conduct and Ethical Standards for Public Officials local officials and employees shall be preserved in the
and Employees" and other laws shall also be individual personal records file under the custody of the
applicable to local government officials and personnel office, division, or section of the local government
employees. unit concerned.

Section 90. Practice of Profession. - Section 93. Partisan Political Activity. - No local official or
employee in the career civil service shall engage directly or
(a) All governors, city and municipal mayors are indirectly in any partisan political activity or take part in any
prohibited from practicing their profession or election, initiative, referendum, plebiscite, or recall, except to
engaging in any occupation other than the exercise vote, nor shall he use his official authority or influence to
of their functions as local chief executives. cause the performance of any political activity by any person
or body. He may, however, express his views on current (d) Field officers of national agencies or offices
issues, or mention the names of certain candidates for public assigned in provinces, cities, and municipalities shall
office whom he supports. Elective local officials may take part not leave their official stations without giving prior
in partisan political and electoral activities, but it shall be written notice to the local chief executive
unlawful for them to solicit contributions from their concerned. Such notice shall state the duration of
subordinates or subject these subordinates to any of the travel and the name of the officer whom he shall
prohibited acts under the Omnibus Election Code. designate to act for and in his behalf during his
absence.
Section 94. Appointment of Elective and Appointive Local
Officials; Candidates Who Lost in an Election. - (a) No elective Section 97. Annual Report. - On or before March 31 of each
or appointive local official shall be eligible for appointment or year, every local chief executive shall submit an annual report
designation in any capacity to any public office or position to the sanggunian concerned on the socio-economic, political
during his tenure. and peace and order conditions, and other matters
concerning the local government unit, which shall cover the
Unless otherwise allowed by law or by the primary functions immediately preceding calendar year. A copy of the report
of his position, no elective or appointive local official shall shall be forwarded to the Department of the Interior and
hold any other office or employment in the government or Local Government. Component cities and municipalities shall
any subdivision, agency or instrumentality thereof, including likewise provide the sangguniang panlalawigan copies of their
government-owned or controlled corporations or their respective annual reports.
subsidiaries.
TITLE IV
Section 95. Additional or Double Compensation. - No elective LOCAL SCHOOL BOARDS
or appointive local official or employee shall receive
additional, double, or indirect compensation, unless Section 98. Creation, Composition, and Compensation. -
specifically authorized by law, nor accept without the consent
of Congress, any present, emoluments, office, or title of any (a) There shall be established in every province, city,
kind from any foreign government. Pensions or gratuities or municipality a provincial, city, or municipal school
shall not be considered as additional, double, or indirect board, respectively.
compensation.
(b) The composition of local school boards shall be
Section 96. Permission to Leave Station. - as follows:

(a) Provincial, city, municipal, and barangay (1) The provincial school board shall be
appointive officials going on official travel shall apply composed of the governor and the division
and secure written permission from their respective superintendent of schools as co-chairman;
local chief executives before departure. The the chairman of the education committee
application shall specify the reasons for such travel, of the sangguniang panlalawigan, the
and the permission shall be given or withheld based provincial treasurer, the representative of
on considerations of public interest, financial the "pederasyon ng mga sangguniang
capability of the local government unit concerned kabataan" in the sangguniang panlalawigan,
and urgency of the travel. the duly elected president of the provincial
federation of parents-teachers associations,
Should the local chief executive concerned fall to act the duly elected representative of the
upon such application within four (4) working days teachers' organizations in the province, and
from receipt thereof, it shall be deemed approved. the duly elected representative of the non-
academic personnel of public schools in the
(b) Mayors of component cities and municipalities province, as members;
shall secure the permission of the governor
concerned for any travel outside the province. (2) The city school board shall be composed
of the city mayor and the city
(c) Local government officials traveling abroad shall superintendent of schools as co-chairmen;
notify their respective sanggunian: Provided, That the chairman of the education committee
when the period of travel extends to more than of the sangguniang panlungsod, the city
three (3) months, during periods of emergency or treasurer, the representative of the
crisis or when the travel involves the use of public "pederasyon ng mga sangguniang
funds, permission from the Office of the President kabataan" in the sangguniang panlungsod,
shall be secured. the duly elected president of the city
 federation of parents- teachers such other sources of revenue as this Code and
associations, the duly elected other laws or ordinances may provide;
representative of the teachers'
organizations in the city, and the duly (b) Authorize the provincial, city or municipal
elected representative of the non-academic treasurer, as the case may be, to disburse funds
personnel of public schools in the city, as from the Special Education Fund pursuant to the
members; and budget prepared and in accordance with existing
rules and regulations;
(3) The municipal school board shall be
composed of the municipal mayor and the (c) Serve as an advisory committee to the
district supervisor of schools as co- sanggunian concerned on educational matters such
chairmen; the chairman of the education as, but not limited to, the necessity for and the uses
committee of the sangguniang bayan, the of local appropriations for educational purposes; and
municipal treasurer, the representative of
the "pederasyon ng mga sangguniang (d) Recommend changes in the names of public
kabataan" in the sangguniang bayan, the schools within the territorial jurisdiction of the local
duly elected president of the municipal government unit for enactment by the sanggunian
federation of parent-teacher associations, concerned.
the duly elected representative of the
teachers' organizations in the municipality,
The Department of Education, Culture and Sports shall
and the duly elected representative of the
consult the local school board on the appointment of division
non-academic personnel of public schools in
superintendents, district supervisors, school principals, and
the municipality, as members.
other school officials.

(c) In the event that a province or city has two (2) or

Section 100. Meetings and Quorum; Budget. -
more school superintendents, and in the event that
a municipality has two (2) or more district
supervisors, the co-chairman of the local school (a) The local school board shall meet at least once a
month or as often as may be necessary.
board shall be determined as follows:

(b) Any of the co-chairmen may call a meeting. A

(1) The Department of Education, Culture and Sports
shall designate the co-chairman for the provincial majority of all its members shall constitute a
quorum. However, when both co-chairmen are
and city school boards; and
present in a meeting, the local chief executive
concerned, as a matter of protocol, shall be given
(2) The division superintendent of schools shall
preference to preside over the meeting. The division
designate the district supervisor who shall serve as
superintendent, city superintendent or district
co-chairman of the municipal school board.
supervisor, as the case may be, shall prepare the
budget of the school board concerned. Such budget
(d) The performance of the duties and shall be supported by programs, projects, and
responsibilities of the abovementioned officials in activities of the school board for the ensuing fiscal
their respective local school boards shall not be year. The affirmative vote of the majority of all the
delegated. members shall be necessary to approve the budget.

Section 99. Functions of Local School Boards. - The provincial, (c) The annual school board budget shall give priority
city or municipal school board shall: to the following:

(a) Determine, in accordance with the criteria set by (1) Construction, repair, and maintenance
the Department of Education, Culture and Sports, of school buildings and other facilities of
the annual supplementary budgetary needs for the public elementary and secondary schools;
operation and maintenance of public schools within
the province, city, or municipality, as the case may
(2) Establishment and maintenance of
be, and the supplementary local cost of meeting
extension classes where necessary; and
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 (3) Sports activities at the division, district,
property constituting the Special Education Fund and municipal, and barangay levels.
Section 101. Compensation and Remuneration. - The co- Health, annual budgetary allocations for the
chairmen and members of the provincial, city or municipal operation and maintenance of health
school board shall perform their duties as such without facilities and services within the
compensation or remuneration. Members thereof who are municipality, city or province, as the case
not government officials or employees shall be entitled to may be;
necessary traveling expenses and allowances chargeable
against the funds of the local school board concerned, subject (2) To serve as an advisory committee to
to existing accounting and auditing rules and regulations. the sanggunian concerned on health
matters such as, but not limited to, the
TITLE V necessity for, and application of local
LOCAL HEALTH BOARDS appropriations for public health purposes;
and
Section 102. Creation and Composition. -
(3) Consistent with the technical and
(a) There shall be established a local health board in administrative standards of the Department
every province, city, or municipality. The of Health, create committees which shall
composition of the local health boards shall be as advise local health agencies on matters
follows: such as, but not limited to, personnel
selection and promotion, bids and awards,
(1) The provincial health board shall be grievance and complaints, personnel
headed by the governor as chairman, the discipline, budget review, operations review
provincial health officer as vice-chairman, and similar functions.
and the chairman of the committee on
health of the sangguniang panlalawigan, a Section 103. Meetings and Quorum. -
representative from the private sector or
non-governmental organizations involved in (a) The board shall meet at least once a month or as
health services, and a representative of the may be necessary.
Department of Health in the province, as
members; (b) A majority of the members of the board shall
constitute a quorum, but the chairman or the vice-
(2) The city health board shall be headed by chairman must be present during meetings where
the city mayor as chairman, the city health budgetary proposals are being prepared or
officer as vice-chairman, and the chairman considered. The affirmative vote of all the majority
of the committee on health of the of the members shall be necessary to approve such
sangguniang panlungsod, a representative proposals.
from the private sector or non-
governmental organizations involved in Section 104. Compensation and Remuneration. - The
health services, and a representative of the chairman, vice-chairman, and members of the provincial, city
Department of Health in the city, as or municipal health board shall perform their duties as such
members; and without compensation or remuneration. Members thereof
who are not government officials or employees shall be
(3) The municipal health board shall be entitled to necessary traveling expenses and allowances
headed by the municipal mayor as chargeable against the funds of the local health board
chairman, the municipal health officer as concerned, subject to existing accounting and auditing rules
vice-chairman, and the chairman of the and regulations.
committee on health of the sangguniang
bayan, a representative from the private Section 105. Direct National Supervision and Control by the
sector or non-governmental organizations Secretary of Health. - In cases of epidemics, pestilence, and
involved in health services, and a other widespread public health dangers, the Secretary of
representative of the Department of Health Health may, upon the direction of the President and in
in the municipality, as members. consultation with the local government unit concerned,
temporarily assume direct supervision and control over
(b) The functions of the local health board shall be: health operations in any local government unit for the
duration of the emergency, but in no case exceeding a
(1) To propose to the sanggunian cumulative period of six (6) months. With the concurrence of
concerned, in accordance with standards the government unit concerned, the period for such direct
and criteria set by the Department of national control and supervision may be further extended.
TITLE VI (2) The chairman of the committee on
LOCAL DEVELOPMENT COUNCILS appropriations of the sangguniang
panlalawigan;
Section 106. Local Development Councils. - (a) Each local
government unit shall have a comprehensive multi-sectoral (3) The congressman or his representative;
development plan to be initiated by its development council and
and approved by its sanggunian. For this purpose, the
development council at the provincial, city, municipal, or (4) Representatives of non-governmental
barangay level, shall assist the corresponding sanggunian in organizations operating in the province,
setting the direction of economic and social development, who shall constitute not less than one-
and coordinating development efforts within its territorial fourth (¼) of the members of the fully
jurisdiction. organized council.

Section 107. Composition of Local Development Councils. - (d) The local development councils may call upon
The composition of the local development council shall be as any local official concerned or any official of national
follows: agencies or offices in the local government unit to
assist in the formulation of their respective
(1) Members of the sangguniang barangay; development plans and public investment programs.

(2) Representatives of non-governmental Section 108. Representation of Non-governmental

organizations operating in the barangay Organizations. - Within a period of sixty (60) days from the
who shall constitute not less than one start of organization of local development councils, the non-
fourth (¼) of the members of the fully governmental organizations shall choose from among
organized council; themselves their representatives to said councils. The local
sanggunian concerned shall accredit non-governmental
(3) A representative of the congressman. organizations subject to such criteria as may be provided by
law.
(b) The city or municipal development council shall
be headed by the mayor and shall be composed of Section 109. Functions of Local Development Councils. -
the following members:
(a) The provincial, city, and municipal development
(1) All punong barangays in the city or councils shall exercise the following functions:
municipality;
(1) Formulate long-term, medium-term, and
(2) The chairman of the committee on annual socio-economic development plans
appropriations of the sangguniang and policies;
panlungsod or sangguniang bayan
concerned; (2) Formulate the medium-term and annual
public investment programs;
(3) The congressman or his representative;
and (3) Appraise and prioritize socio-economic
development programs and projects;
(4) Representatives of non-governmental
organizations operating in the city or (4) Formulate local investment incentives to
municipality, as the case may be, who shall promote the inflow and direction of private
constitute not less than one-fourth (¼) of investment capital;
the members of the fully organized council.
(5) Coordinate, monitor, and evaluate the
(c) The provincial development council shall be implementation of development programs
headed by the governor and shall be composed of and projects; and
the following members:
(6) Perform such other functions as may be
(1) All mayors of component cities and provided by law or component authority.
municipalities;
(b) The barangay development council shall exercise
the following functions:
 (1) Mobilize people's participation in local (1) Ensure that the decision of the council
development efforts; are faithfully carried out and implemented;

(2) Prepare barangay development plans (2) Act on matters requiring immediate
based on local requirements; attention or action by the council;

(3) Monitor and evaluate the (3) Formulate policies, plans, and programs
implementation of national or local based on the general principles laid down
programs and projects; and by the council; and

(4) Perform such other functions as may be (4) Act on other matters that may be
provided by law or competent authority. authorized by the council.

Section 110. Meetings and Quorum. - The local development Section 112. Sectoral or Functional Committees. - The local
council shall meet at least once every six (6) months or as development councils may form sectoral or functional
often as may be necessary. committees to assist them in the performance of their
functions.
Section 111. Executive Committee. - The local development
council shall create an executive committee to represent it Section 113. Secretariat. - There is hereby constituted for
and act in its behalf when it is not in session. The composition each local development council a secretariat which shall be
of the executive committee shall be as follows: responsible for providing technical support, documentation
of proceedings, preparation of reports and such other
(1) The executive committee of the assistance as may be required in the discharge of its
provincial development council shall be functions. The local development council may avail of the
composed of the governor as chairman, the services of any non-governmental organization or educational
representative of component city and or research institution for this purpose.
municipal mayors to be chosen from among
themselves, the chairman of the committee The secretariats of the provincial, city, and municipal
on appropriations of the sangguniang development councils shall be headed by their respective
panlalawigan, the president of the planning and development coordinators. The secretariat of
provincial league of barangays, and a the barangay development council shall be headed by the
representative of non-governmental barangay secretary who shall be assisted by the city or
organizations that are represented in the municipal planning and development coordinator concerned.
council, as members;
Section 114. Relation of Local Development Councils to the
(2) The executive committee of the city or Sanggunian and the Regional Development Council. -
municipal development council shall be
composed of the mayor as chairman, the (a) The policies, programs, and projects proposed by
chairman of the committee on local development councils shall be submitted to the
appropriations of the sangguniang sanggunian concerned for appropriate action.
panlalawigan, the president of the city or
municipal league of barangays, and a (b) The approved development plans of provinces,
representative of non-governmental highly-urbanized cities, and independent component
organizations that are represented in the cities shall be submitted to the regional
council, as members; and development council, which shall be integrated into
the regional development plan for submission to the
(3) The executive committee of the National Economic and Development Authority, in
barangay development council shall be accordance with existing laws.
composed of the punong barangay as
chairman, a representative of the Section 115. Budget Information. - The Department of Budget
sangguniang barangay to be chosen from and Management shall furnish the various local development
among its members, and a representative councils information on financial resources and budgetary
of non-governmental organizations that are allocations applicable to their respective jurisdictions to guide
represented in the council, as members. them in their planning functions.

(b) The executive committee shall exercise the TITLE VII

following powers and functions: LOCAL PEACE AND ORDER COUNCIL
Section 116. Organization. - There is hereby established in which shall decide the issue within sixty (60) days
every province, city and municipality a local peace and order from the date of the certification referred to above.
council, pursuant to Executive Order Numbered Three
hundred nine (E.O. No. 309), as amended, Series of 1988. The Section 119. Appeal. - Within the time and manner
local peace and order councils shall have the same prescribed by the Rules of Court, any party may elevate the
composition and functions as those prescribed by said decision of the sanggunian concerned to the proper Regional
executive order. Trial Court having jurisdiction over the area in dispute. The
Regional Trial Court shall decide the appeal within one (1)
TITLE VIII year from the filing thereof. Pending final resolution of the
AUTONOMOUS SPECIAL ECONOMIC ZONES disputed area prior to the dispute shall be maintained and
continued for all legal purposes.
Section 117. Establishment of Autonomous Special Economic
Zones. - The establishment by law of autonomous special CHAPTER II
economic zones in selected areas of the country shall be Local Initiative and Referendum
subject to concurrence by the local government units
included therein. Section 120. Local Initiative Defined. - Local initiative is the
legal process whereby the registered voters of a local
TITLE IX government unit may directly propose, enact, or amend any
OTHER PROVISIONS APPLICABLE TO LOCAL GOVERNMENT ordinance.
UNITS
Section 121. Who May Exercise. - The power of local initiative
CHAPTER I and referendum may be exercised by all registered voters of
Settlement of Boundary Disputes the provinces, cities, municipalities, and barangays.

Section 118. Jurisdictional Responsibility for Settlement of Section 122. Procedure in Local Initiative. -
Boundary Dispute. - Boundary disputes between and among
local government units shall, as much as possible, be settled (a) Not less than one thousand (1,000) registered
amicably. To this end: voters in case of provinces and cities, one hundred
(100) in case of municipalities, and fifty (50) in case
(a) Boundary disputes involving two (2) or more of barangays, may file a petition with the sanggunian
barangays in the same city or municipality shall be concerned proposing the adoption, enactment,
referred for settlement to the sangguniang repeal, or amendment of an ordinance.
panlungsod or sangguniang bayan concerned.
(b) If no favorable action thereon is taken by the
(b) Boundary disputes involving two (2) or more sanggunian concerned within thirty (30) days from
municipalities within the same province shall be its presentation, the proponents, through their duly
referred for settlement to the sangguniang authorized and registered representatives, may
panlalawigan concerned. invoke their power of initiative, giving notice thereof
to the sanggunian concerned.
(c) Boundary disputes involving municipalities or
component cities of different provinces shall be (c) The proposition shall be numbered serially
jointly referred for settlement to the sanggunians of starting from Roman numeral I. The COMELEC or its
the province concerned. designated representative shall extend assistance in
the formulation of the proposition.
(d) Boundary disputes involving a component city or
municipality on the one hand and a highly urbanized (d) Two (2) or more propositions may be submitted
city on the other, or two (2) or more highly in an initiative.
urbanized cities, shall be jointly referred for
settlement to the respective sanggunians of the (e) Proponents shall have ninety (90) days in case of
parties. provinces and cities, sixty (60) days in case of
municipalities, and thirty (30) days in case of
(e) In the event the sanggunian fails to effect an barangays, from notice mentioned in subsection (b)
amicable settlement within sixty (60) days from the hereof to collect the required number of signatures.
date the dispute was referred thereto, it shall issue a (f) The petition shall be signed before the election
certification to that effect. Thereafter, the dispute registrar. or his designated representatives, in the
shall be formally tried by the sanggunian concerned 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 period shall be eighteen (18) months after the approval
may be. Stations for collecting signatures may be thereof.
established in as many places as may be warranted.
Section 126. Local Referendum Defined. - Local referendum is
(g) Upon the lapse of the period herein provided, the the legal process whereby the registered voters of the local
COMELEC, through its office in the local government government units may approve, amend or reject any
unit concerned, shall certify as to whether or not the ordinance enacted by the sanggunian.
required number of signatures has been obtained.
Failure to obtain the required number defeats the The local referendum shall be held under the control and
proposition. direction of the COMELEC within sixty (60) days in case of
provinces and cities, forty-five (45) days in case of
(h) If the required number of signatures is obtained, municipalities and thirty (30) days in case of barangays.
the COMELEC shall then set a date for the initiative
during which the proposition shall be submitted to The COMELEC shall certify and proclaim the results of the said
the registered voters in the local government unit referendum.
concerned for their approval within sixty (60) days
from the date of certification by the COMELEC, as Section 127. Authority of Courts. - Nothing in this Chapter
provided in subsection (g) hereof, in case of shall prevent or preclude the proper courts from declaring
provinces and cities, forty-five (45) days in case of null and void any proposition approved pursuant to this
municipalities, and thirty (30) days in case of Chapter for violation of the Constitution or want of capacity
barangays. The initiative shall then be held on the of the sanggunian concerned to enact the said measure.
date set, after which the results thereof shall be
certified and proclaimed by the COMELEC. BOOK II
LOCAL TAXATION AND FISCAL MATTERS
Section 123. Effectivity of Local Propositions. - If the
proposition is approved by a majority of the votes cast, it
TITLE I
shall take effect fifteen (15) days after certification by the
LOCAL GOVERNMENT TAXATION
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 CHAPTER I
General Provisions
defeated.

Section 128. Scope. - The provisions herein shall govern the

Section 124. Limitations on Local Initiative. -
exercise by provinces, cities, municipalities, and barangays of
their taxing and other revenue-raising powers.
(a) The power of local initiative shall not be
exercised more than once a year.
Section 129. Power to Create Sources of Revenue. - Each local
government unit shall exercise its power to create its own
(b) Initiative shall extend only to subjects or matters
sources of revenue and to levy taxes, fees, and charges
which are within the legal powers of the sanggunian
subject to the provisions herein, consistent with the basic
to enact.
policy of local autonomy. Such taxes, fees, and charges shall
accrue exclusively to the local government units.
(c) If at any time before the initiative is held, the
sanggunian concerned adopts in toto the proposition
Section 130. Fundamental Principles. - The following
presented and the local chief executive approves the
fundamental principles shall govern the exercise of the taxing
same, the initiative shall be cancelled. However,
and other revenue-raising powers of local government units:
those against such action may, if they so desire,
apply for initiative in the manner herein provided.
(a) Taxation shall be uniform in each local
government unit;
Section 125. Limitations upon Sanggunians. - Any proposition
or ordinance approved through the system of initiative and
referendum as herein provided shall not be repealed, (b) Taxes, fees, charges and other impositions shall:
modified or amended by the sanggunian concerned within six
(6) months from the date of the approval thereof, and may (1) be equitable and based as far as
be amended, modified or repealed by the sanggunian within practicable on the taxpayer's ability to pay;
three (3) years thereafter by a vote of three-fourths (3/4) of
all its members: Provided, That in case of barangays, the (2) be levied and collected only for public
purposes;
 (3) not be unjust, excessive, oppressive, or money shops, insurance companies, stock markets,
confiscatory; stock brokers and dealers in securities and foreign
exchange, as defined under applicable laws, or rules
(4) not be contrary to law, public policy, and regulations thereunder;
national economic policy, or in the restraint
of trade; (f) "Capital Investment" is the capital which a person
employs in any undertaking, or which he contributes
(c) The collection of local taxes, fees, charges and to the capital of a partnership, corporation, or any
other impositions shall in no case be let to any other juridical entity or association in a particular
private person; taxing jurisdiction;

(d) The revenue collected pursuant to the provisions (g) "Charges" refers to pecuniary liability, as rents or
of this Code shall inure solely to the benefit of, and fees against persons or property;
be subject to the disposition by, the local
government unit levying the tax, fee, charge or other (h) "Contractor" includes persons, natural or
imposition unless otherwise specifically provided juridical, not subject to professional tax under
herein; and, Section 139 of this Code, whose activity consists
essentially of the sale of all kinds of services for a
(e) Each local government unit shall, as far as fee, regardless of whether or not the performance of
practicable, evolve a progressive system of taxation. the service calls for the exercise or use of the
physical or mental faculties of such contractor or his
Section 131. Definition of Terms. - When used in this Title, the employees.
term:
As used in this Section, the term "contractor" shall
(a) "Agricultural Product" includes the yield of the include general engineering, general building and
soil, such as corn, rice, wheat, rye, hay. coconuts, specialty contractors as defined under applicable
sugarcane, tobacco, root crops, vegetables, fruits, laws; filling, demolition and salvage works
flowers, and their by-products; ordinary salt; all contractors; proprietors or operators of mine drilling
kinds of fish; poultry; and livestock and animal apparatus; proprietors or operators of dockyards;
products, whether in their original form or not. persons engaged in the installation of water system,
and gas or electric light, heat, or power; proprietors
or operators of smelting plants, engraving, plating,
The phrase "whether in their original form or not"
and plastic lamination establishments; proprietors or
refers to the transformation of said products by the
operators of establishments for repairing, repainting,
farmer, fisherman, producer or owner through the
upholstering, washing or greasing of vehicles, heavy
application of processes to preserve or otherwise to
equipment, vulcanizing, recapping and battery
prepare said products for market such as freezing,
charging; proprietors or operators of furniture shops
drying, salting, smoking, or stripping for purposes of
and establishments for planing or surfacing and
preserving or otherwise preparing said products for
recutting of lumber, and sawmills under contract to
market;
saw or cut logs belonging to others; proprietors or
operators of dry cleaning or dyeing establishments,
(b) "Amusement" is a pleasurable diversion and
steam laundries, and laundries using washing
entertainment. It is synonymous to relaxation, machines; proprietors or owners of shops for the
avocation, pastime, or fun; repair of any kind of mechanical and electrical
devices, instruments, apparatus, or furniture and
(c) "Amusement Places" include theaters, cinemas, shoe repairing by machine or any mechanical
concert halls, circuses and other places of contrivance; proprietors or operators of
amusement where one seeks admission to entertain establishments or lots for parking purposes;
oneself by seeing or viewing the show or proprietors or operators of tailor shops, dress shops,
performances; milliners and hatters, beauty parlors, barbershops,
massage clinics, sauna, Turkish and Swedish baths,
(d) "Business" means trade or commercial activity slenderizing and building salons and similar
regularly engaged in as a means of livelihood or with establishments; photographic studios; funeral
a view to profit; parlors; proprietors or operators of hotels, motels,
and lodging houses; proprietors or operators of
(e) "Banks and other financial institutions" include arrastre and stevedoring, warehousing, or
non-bank financial intermediaries, lending investors, forwarding establishments; master plumbers,
finance and investment companies, pawnshops, smiths, and house or sign painters; printers,
bookbinders, lithographers; publishers except those subdivisions may impose in the interest of public
engaged in the publication or printing of any welfare, security, and safety;
newspaper, magazine, review or bulletin which
appears at regular intervals with fixed prices for (n) "Gross Sales or Receipts" include the total
subscription and sale and which is not devoted amount of money or its equivalent representing the
principally to the publication and advertisements; contract price, compensation or service fee,
business agents, private detective or watchman including the amount charged or materials supplied
agencies, commercial and immigration brokers, and with the services and deposits or advance payments
cinematographic film owners, lessors and actually or constructively received during the taxable
distributors. quarter for the services performed or to be
performed for another person excluding discounts if
(i) "Corporation" includes partnerships, no matter determinable at the time of sales, sales return,
how created or organized, joint-stock companies, excise tax, and value-added tax (VAT);
joint accounts (cuentas en participacion),
associations or insurance companies but does not (o) "Manufacturer" includes every person who, by
include general professional partnerships and a joint physical or chemical process, alters the exterior
venture or consortium formed for the purpose of texture or form or inner substance of any raw
undertaking construction projects or engaging in material or manufactured or partially manufactured
petroleum, coal, geothermal, and other energy product in such manner as to have been put in its
operations pursuant to an operating or consortium original condition, or who by any such process alters
agreement under a service contract with the the quality of any such raw material or
government. General professional partnership are manufactured or partially manufactured products so
partnerships formed by persons for the sole purpose as to reduce it to marketable shape or prepare it for
of exercising their common profession, no part of any of the use of industry, or who by any such
the income of which is derived from engaging in any process combines any such raw material or
trade or business. manufactured or partially manufactured products
with other materials or products of the same or of
The term "resident foreign" when applied to a different kinds and in such manner that the finished
corporation means a foreign corporation not products of such process or manufacture can be put
otherwise organized under the laws of the to a special use or uses to which such raw material
Philippines but engaged in trade or business within or manufactured or partially manufactured products
the Philippines; in their original condition could not have been put,
and who in addition alters such raw material or
(j) "Countryside and Barangay Business Enterprise" manufactured or partially manufactured products, or
refers to any business entity, association, or combines the same to produce such finished
cooperative registered under the provisions of products for the purpose of their sale or distribution
Republic Act Numbered Sixty-eight hundred ten (R.A. to others and not for his own use or consumption;
No. 6810), otherwise known as "Magna Carta For
Countryside And Barangay Business Enterprises (p) "Marginal Farmer or Fisherman" refers to an
(Kalakalan 20)"; individual engaged in subsistence farming or fishing
which shall be limited to the sale, barter or exchange
(k) "Dealer" means one whose business is to buy and of agricultural or marine products produced by
sell merchandise, goods, and chattels as a merchant. himself and his immediate family;
He stands immediately between the producer or
manufacturer and the consumer and depends for his (q) "Motor Vehicle" means any vehicle propelled by
profit not upon the labor he bestows upon his any power other than muscular power using the
commodities but upon the skill and foresight with public roads, but excluding road rollers, trolley cars,
which he watches the market; street-sweepers, sprinklers, lawn mowers,
bulldozers, graders, fork-lifts, amphibian trucks, and
(l) "Fee" means a charge fixed by law or ordinance cranes if not used on public roads, vehicles which
for the regulation or inspection of a business or run only on rails or tracks, and tractors, trailers, and
activity; traction engines of all kinds used exclusively for
agricultural purposes;
(m) "Franchise" is a right or privilege, affected with
public interest which is conferred upon private (r) "Municipal Waters" includes not only streams,
persons or corporations, under such terms and lakes, and tidal waters within the municipality, not
conditions as the government and its political being the subject of private ownership and not
comprised within the national parks, public forest,
timber lands, forest reserves or fishery reserves, but (z) "Wholesale" means a sale where the purchaser
also marine waters included between two lines buys or imports the commodities for resale to
drawn perpendicularly to the general coastline from persons other than the end user regardless of the
points where the boundary lines of the municipality quantity of the transaction.
or city touch the sea at low tide and a third line
parallel with the general coastline and fifteen (15) Section 132. Local Taxing Authority. - The power to impose a
kilometers from it. Where two (2) municipalities are tax, fee, or charge or to generate revenue under this Code
so situated on the opposite shores that there is less shall be exercised by the sanggunian of the local government
than fifteen (15) kilometers of marine waters unit concerned through an appropriate ordinance.
between them, the third line shall be equally distant
from opposite shores of their respective Section 133. Common Limitations on the Taxing Powers of
municipalities; Local Government Units. - Unless otherwise provided herein,
the exercise of the taxing powers of provinces, cities,
(s) "Operator" includes the owner, manager, municipalities, and barangays shall not extend to the levy of
administrator, or any other person who operates or the following:
is responsible for the operation of a business
establishment or undertaking; (a) Income tax, except when levied on banks and
other financial institutions;
(t) "Peddler" means any person who, either for
himself or on commission, travels from place to (b) Documentary stamp tax;
place and sells his goods or offers to sell and deliver
the same. Whether a peddler is a wholesale peddler
(c) Taxes on estates, inheritance, gifts, legacies and
or a retail peddler of a particular commodity shall be
other acquisitions mortis causa, except as otherwise
determined from the definition of wholesale dealer
provided herein;
or retail dealer as provided in this Title;
(d) Customs duties, registration fees of vessel and
(u) "Persons" means every natural or juridical being,
wharfage on wharves, tonnage dues, and all other
susceptible of rights and obligations or of being the
kinds of customs fees, charges and dues except
subject of legal relations;
wharfage on wharves constructed and maintained
by the local government unit concerned;
(v) "Residents" refer to natural persons who have
their habitual residence in the province, city, or
(e) Taxes, fees, and charges and other impositions
municipality where they exercise their civil rights
upon goods carried into or out of, or passing
and fulfill their civil obligations, and to juridical
through, the territorial jurisdictions of local
persons for which the law or any other provisions
government units in the guise of charges for
creating or recognizing them fixes their residence in
wharfage, tolls for bridges or otherwise, or other
a particular province, city, or municipality. In the
taxes, fees, or charges in any form whatsoever upon
absence of such law, juridical persons are residents
such goods or merchandise;
of the province, city, or municipality where they
have their legal residence or principal place of
business or where they conduct their principal (f) Taxes, fees or charges on agricultural and aquatic
products when sold by marginal farmers or
business or occupation;
fishermen;
(w) "Retail" means a sale where the purchaser buys
the commodity for his own consumption, (g) Taxes on business enterprises certified to by the
Board of Investments as pioneer or non-pioneer for
irrespective of the quantity of the commodity sold;
a period of six (6) and four (4) years, respectively
from the date of registration;
(x) "Vessel" includes every type of boat, craft, or
other artificial contrivance used, or capable of being
(h) Excise taxes on articles enumerated under the
used, as a means of transportation on water;
national Internal Revenue Code, as amended, and
taxes, fees or charges on petroleum products;
(y) "Wharfage" means a fee assessed against the
cargo of a vessel engaged in foreign or domestic
(i) Percentage or value-added tax (VAT) on sales,
trade based on quantity, weight, or measure
barters or exchanges or similar transactions on
received and/or discharged by vessel; and
goods or services except as otherwise provided
herein;
 (j) Taxes on the gross receipts of transportation payment of this tax. The provincial assessor shall
contractors and persons engaged in the likewise make the same requirement before
transportation of passengers or freight by hire and cancelling an old tax declaration and issuing a new
common carriers by air, land or water, except as one in place thereof, Notaries public shall furnish the
provided in this Code; provincial treasurer with a copy of any deed
transferring ownership or title to any real property
(k) Taxes on premiums paid by way or reinsurance or within thirty (30) days from the date of notarization.
retrocession;
It shall be the duty of the seller, donor, transferor, executor
(l) Taxes, fees or charges for the registration of or administrator to pay the tax herein imposed within sixty
motor vehicles and for the issuance of all kinds of (60) days from the date of the execution of the deed or from
licenses or permits for the driving thereof, except the date of the decedent's death.
tricycles;
Section 136. Tax on Business of Printing and Publication. - The
(m) Taxes, fees, or other charges on Philippine province may impose a tax on the business of persons
products actually exported, except as otherwise engaged in the printing and/or publication of books, cards,
provided herein; posters, leaflets, handbills, certificates, receipts, pamphlets,
and others of similar nature, at a rate not exceeding fifty
(n) Taxes, fees, or charges, on Countryside and percent (50%) of one percent (1%) of the gross annual
Barangay Business Enterprises and cooperatives duly receipts for the preceding calendar year.
registered under R.A. No. 6810 and Republic Act
Numbered Sixty-nine hundred thirty-eight (R.A. No. In the case of a newly started business, the tax shall not
6938) otherwise known as the "Cooperative Code of exceed one-twentieth (1/20) of one percent (1%) of the
the Philippines" respectively; and capital investment. In the succeeding calendar year,
regardless of when the business started to operate, the tax
(o) Taxes, fees or charges of any kind on the National shall be based on the gross receipts for the preceding
Government, its agencies and instrumentalities, and calendar year, or any fraction thereof, as provided herein.
local government units.
The receipts from the printing and/or publishing of books or
CHAPTER II other reading materials prescribed by the Department of
Specific Provisions on the Taxing and Other Revenue-Raising Education, Culture and Sports as school texts or references
Powers of Local Government Units shall be exempt from the tax herein imposed.

ARTICLE I Section 137. Franchise Tax. - Notwithstanding any exemption

Provinces 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
Section 134. Scope of Taxing Powers. - Except as otherwise
gross annual receipts for the preceding calendar year based
provided in this Code, the province may levy only the taxes,
on the incoming receipt, or realized, within its territorial
fees, and charges as provided in this Article.
jurisdiction.
Section 135. Tax on Transfer of Real Property Ownership.
In the case of a newly started business, the tax shall not
exceed one-twentieth (1/20) of one percent (1%) of the
(a) The province may impose a tax on the sale , capital investment. In the succeeding calendar year,
donation, barter, or on any other mode of regardless of when the business started to operate, the tax
transferring ownership or title of real property at the
shall be based on the gross receipts for the preceding
rate of not more than fifty percent (50%) of the one
calendar year, or any fraction thereon, as provided herein.
percent (1%) of the total consideration involved in
the acquisition of the property or of the fair market
Section 138. Tax on Sand, Gravel and Other Quarry
value in case the monetary consideration involved in
Resources. - The province may levy and collect not more than
the transfer is not substantial, whichever is higher.
ten percent (10%) of fair market value in the locality per cubic
The sale, transfer or other disposition of real
meter of ordinary stones, sand, gravel, earth, and other
property pursuant to R.A. No. 6657 shall be exempt
quarry resources, as defined under the National Internal
from this tax.
Revenue Code, as amended, extracted from public lands or
from the beds of seas, lakes, rivers, streams, creeks, and
(b) For this purpose, the Register of Deeds of the
other public waters within its territorial jurisdiction.
province concerned shall, before registering any
deed, require the presentation of the evidence of
The permit to extract sand, gravel and other quarry resources Section 140. Amusement Tax. -
shall be issued exclusively by the provincial governor,
pursuant to the ordinance of the sangguniang panlalawigan. (a) The province may levy an amusement tax to be
collected from the proprietors, lessees, or operators
The proceeds of the tax on sand, gravel and other quarry of theaters, cinemas, concert halls, circuses, boxing
resources shall be distributed as follows: stadia, and other places of amusement at a rate of
not more than thirty percent (30%) of the gross
(1) Province - Thirty percent (30%); receipts from admission fees.

(2) Component City or Municipality where the sand, (b) In the case of theaters or cinemas, the tax shall
gravel, and other quarry resources are extracted - first be deducted and withheld by their proprietors,
Thirty percent (30%); and lessees, or operators and paid to the provincial
treasurer before the gross receipts are divided
(3) Barangay where the sand, gravel, and other between said proprietors, lessees, or operators and
quarry resources are extracted - Forty percent (40%). the distributors of the cinematographic films.

Section 139. Professional Tax. - (c) The holding of operas, concerts, dramas, recitals,
painting and art exhibitions, flower shows, musical
programs, literary and oratorical presentations,
(a) The province may levy an annual professional tax
except pop, rock, or similar concerts shall be exempt
on each person engaged in the exercise or practice
from the payment of the tax hereon imposed.
of his profession requiring government examination
at such amount and reasonable classification as the
sangguniang panlalawigan may determine but shall (d) The sangguniang panlalawigan may prescribe the
in no case exceed Three hundred pesos (P300.00). time, manner, terms and conditions for the payment
of tax. In case of fraud or failure to pay the tax, the
sangguniang panlalawigan may impose such
(b) Every person legally authorized to practice his
surcharges, interest and penalties as it may deem
profession shall pay the professional tax to the
appropriate.
province where he practices his profession or where
he maintains his principal office in case he practices
his profession in several places: Provided, however, (e) The proceeds from the amusement tax shall be
That such person who has paid the corresponding shared equally by the province and the municipality
professional tax shall be entitled to practice his where such amusement places are located.
profession in any part of the Philippines without
being subjected to any other national or local tax, Section 141. Annual Fixed Tax For Every Delivery Truck or Van
license, or fee for the practice of such profession. of Manufacturers or Producers, Wholesalers of, Dealers, or
Retailers in, Certain Products. -
(c) Any individual or corporation employing a person
subject to professional tax shall require payment by (a) The province may levy an annual fixed tax for
that person of the tax on his profession before every truck, van or any vehicle used by
employment and annually thereafter. manufacturers, producers, wholesalers, dealers or
retailers in the delivery or distribution of distilled
(d) The professional tax shall be payable annually, on spirits, fermented liquors, soft drinks, cigars and
or before the thirty-first (31st) day of January. Any cigarettes, and other products as may be
person first beginning to practice a profession after determined by the sangguniang panlalawigan, to
the month of January must, however, pay the full tax sales outlets, or consumers, whether directly or
before engaging therein. A line of profession does indirectly, within the province in an amount not
not become exempt even if conducted with some exceeding Five hundred pesos (P500.00).
other profession for which the tax has been paid.
Professionals exclusively employed in the (b) The manufacturers, producers, wholesalers,
government shall be exempt from the payment of dealers and retailers referred to in the immediately
this tax. foregoing paragraph shall be exempt from the tax on
peddlers prescribed elsewhere in this Code.
(e) Any person subject to the professional tax shall
write in deeds, receipts, prescriptions, reports, ARTICLE II
books of account, plans and designs, surveys and Municipalities
maps, as the case may be, the number of the official
receipt issued to him.
 Section 142. Scope of Taxing Powers. - Except as otherwise Less than 1,000.00 18.00
provided in this Code, municipalities may levy taxes, fees, and
charges not otherwise levied by provinces. P 1,000.00 or more but less than 2,000.00 33.00
2,000.00 or more but less than 3,000.00 50.00
Section 143. Tax on Business. - The municipality may impose
taxes on the following businesses: 3,000.00 or more but less than 4,000.00 72.00
4,000.00 or more but less than 5,000.00 100.00
(a) On manufacturers, assemblers, repackers,
processors, brewers, distillers, rectifiers, and 5,000.00 or more but less than 6,000.00 121.00
compounders of liquors, distilled spirits, and wines
or manufacturers of any article of commerce of 6,000.00 or more but less than 7,000.00 143.00
whatever kind or nature, in accordance with the 7,000.00 or more but less than 8,000.00 165.00
following schedule:
8,000.00 or more but less than 10,000.00 187.00
With gross sales or receipts for the preceding Amount of Tax Per10,000.00 or more but less than 15,000.00 220.00
calendar year in the amount of: Annum
15,000.00 or more but less than 20,000.00 275.00
Less than 10,000.00 165.00
20,000.00 or more but less than 30,000.00 330.00
P 10,000.00 or more but less than 15,000.00 220.00
30,000.00 or more but less than 40,000.00 440.00
15,000.00 or more but less than 20,000.00 202.00
40,000.00 or more but less than 50,000.00 660.00
20,000.00 or more but less than 30,000.00 440.00
50,000.00 or more but less than 75,000.00 990.00
30,000.00 or more but less than 40,000.00 660.00
75,000.00 or more but less than 100,000.00 1,320.00
40,000.00 or more but less than 50,000.00 825.00
100,000.00 or more but less than 150,000.00 1,870.00
50,000.00 or more but less than 75,000.00 1,320.00
150,000.00 or more but less than 200,000.00 2,420.00
75,000.00 or more but less than 100,000.00 1,650.00
200,000.00 or more but less than 300,000.00 3,300.00
100,000.00 or more but less than 150,000.00 2,200.00
300,000.00 or more but less than 500,000.00 4,400.00
150,000.00 or more but less than 200,000.00 2,750.00
500,000.00 or more but less than 750,000.00 6,600.00
200,000.00 or more but less than 300,000.00 3,850.00
750,000.00 or more but less than 1,000,000.00 8,800.00
300,000.00 or more but less than 500,000.00 5,500.00
1,000,000.00 or more but less than 2,000,000.00 10,000.00
500,000.00 or more but less than 750,000.00 8,000.00
2,000,000.00 or more at a rate not exceeding fifty percent (50%) of one
750,000.00 or more but less than 1,000,000.00 10,000.00 percent (1%).
1,000,000.00 or more but less than 2,000,000.00 13,750.00
(c) On exporters, and on manufacturers , millers,
2,000,000.00 or more but less than 3,000,000.00 16,500.00 producers, wholesalers, distributors, dealers or
3,000,000.00 or more but less than 4,000,000.00 19,000.00 retailers of essential commodities enumerated
hereunder at a rate not exceeding one-half (½) of
4,000,000.00 or more but less than 5,000,000.00 23,100.00 the rates prescribed under subsection (a), (b) and (d)
of this Section:
5,000,000.00 or more but less than 6,500,000.00 24,375.00
6,000,000.00 or more at a rate not exceeding thirty-seven and a half (1) Rice and corn;
percent (37½%) of one percent (1%)
(2) Wheat or cassava flour, meat, dairy
(b) On wholesalers, distributors, or dealers in any products, locally manufactured, processed
article of commerce of whatever kind or nature in or preserved food, sugar, salt and other
accordance with the following schedule: agricultural, marine, and fresh water
products, whether in their original state or
not;
With gross sales or receipts for the preceding Amount of Tax Per
calendar year in the amount of: Annum (3) Cooking oil and cooking gas;
 (4) Laundry soap, detergents, and medicine; 300,000.00 or more but less than 400,000.00 6,160.00

(5) Agricultural implements. equipment and 400,000.00 or more but less than 500,000.00 8,250.00
post-harvest facilities, fertilizers, pesticides, 500,000.00 or more but less than 750,000.00 9,250.00
insecticides, herbicides and other farm
inputs; 750,000.00 or more but less than 1,000,000.00 10,250.00
1,000,000.00 or more but less than 2,000,000.00 11,500.00
(6) Poultry feeds and other animal feeds;
2,000,000.00 or more at a rate not exceeding fifty percent (50%) of one
(7) School supplies; and percent (1%)

(8) Cement. (f) On banks and other financial institutions, at a rate

not exceeding fifty percent (50%) of one percent
(d) On retailers. (1%) on the gross receipts of the preceding calendar
year derived from interest, commissions and
With gross sales or receipts for the preceding Rate of Tax Per discounts from lending activities, income from
calendar year in the amount of: Annum financial leasing, dividends, rentals on property and
profit from exchange or sale of property, insurance
P400,000.00 or less 2% premium.
more than P400,000.00 1%
(g) On peddlers engaged in the sale of any
merchandise or article of commerce, at a rate not
Provided, however, That barangays shall have the exceeding Fifty pesos (P50.00) per peddler annually.
exclusive power to levy taxes, as provided under
Section 152 hereof, on gross sales or receipts of the (h) On any business, not otherwise specified in the
preceding calendar year of Fifty thousand pesos preceding paragraphs, which the sanggunian
(P50,000.00) or less, in the case of cities, and Thirty concerned may deem proper to tax: Provided, That
thousand pesos (P30,000.00) or less, in the case of on any business subject to the excise, value-added or
municipalities. percentage tax under the National Internal Revenue
Code, as amended, the rate of tax shall not exceed
(e) On contractors and other independent two percent (2%) of gross sales or receipts of the
contractors, in accordance with the following preceding calendar year.
schedule:
The sanggunian concerned may prescribe a schedule of
With gross sales or receipts for the preceding Amount of Tax Per graduated tax rates but in no case to exceed the rates
calendar year in the amount of: Annum prescribed herein.

Less than 5,000.00 27.50 Section 144. Rates of Tax within the Metropolitan Manila
P 5,000.00 or more but less than P 10,000.00 61.60 Area. - The municipalities within the Metropolitan Manila
Area may levy taxes at rates which shall not exceed by fifty
10,000.00 or more but less than 15,000.00 104.50 percent (50%) the maximum rates prescribed in the
preceding Section.
15,000.00 or more but less than 20,000.00 165.00
20,000.00 or more but less than 30,000.00 275.00 Section 145. Retirement of Business. - A business subject to
tax pursuant to the preceding sections shall, upon
30,000.00 or more but less than 40,000.00 385.00
termination thereof, submit a sworn statement of its gross
40,000.00 or more but less than 50,000.00 550.00 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
50,000.00 or more but less than 75,000.00 880.00 receipts of the current year, the difference shall be paid
before the business is considered officially retired.
75,000.00 or more but less than 100,000.00 1,320.00
100,000.00 or more but less than 150,000.00 1,980.00 Section 146. Payment of Business Taxes. -
150,000.00 or more but less than 200,000.00 2,640.00
(a) The taxes imposed under Section 143 shall be
200,000.00 or more but less than 250,000.00 3,630.00 payable for every separate or distinct establishment
or place where business subject to the tax is
250,000.00 or more but less than 300,000.00 4,620.00 conducted and one line of business does not become
 exempt by being conducted with some other and impose rentals, fees or charges therefor in
business for which such tax has been paid. The tax accordance with the provisions of this Section.
on a business must be paid by the person conducting
the same. (b) The sangguniang bayan may:

(b) In cases where a person conducts or operates (1) Grant fishery privileges to erect fish
two (2) or more of the businesses mentioned in corrals, oysters, mussels or other aquatic
Section 143 of this Code which are subject to the beds or bangus fry areas, within a definite
same rate of tax, the tax shall be computed on the zone of the municipal waters, as
combined total gross sales or receipts of the said determined by it: Provided, however, That
two (2) or more related businesses. duly registered organizations and
cooperatives of marginal fishermen shall
(c) In cases where a person conducts or operates have the preferential right to such fishery
two (2) or more businesses mentioned in Section privileges: Provided, further, That the
143 of this Code which are subject to different rates sangguniang bayan may require a public
of tax, the gross sales or receipts of each business bidding in conformity with and pursuant to
shall be separately reported for the purpose of an ordinance for the grant of such
computing the tax due from each business. privileges: Provided, finally, That in the
absence of such organizations and
Section 147. Fees and Charges. - The municipality may cooperatives or their failure to exercise
impose and collect such reasonable fees and charges on their preferential right, other parties may
business and occupation and, except as reserved to the participate in the public bidding in
province in Section 139 of this Code, on the practice of any conformity with the above cited procedure.
profession or calling, commensurate with the cost of
regulation, inspection and licensing before any person may (2) Grant the privilege to gather, take or
engage in such business or occupation, or practice such catch bangus fry, prawn fry or kawag-kawag
profession or calling. or fry of other species and fish from the
municipal waters by nets, traps or other
Section 148. Fees for Sealing and Licensing of Weights and fishing gears to marginal fishermen free of
Measures. - any rental, fee, charge or any other
imposition whatsoever.
(a) The municipality may levy fees for the sealing and
licensing of weights and measures at such (3) Issue licenses for the operation of fishing
reasonable rates as shall be prescribed by the vessels of three (3) tons or less for which
sangguniang bayan. purpose the sangguniang bayan shall
promulgate rules and regulations regarding
(b) The sangguniang bayan shall prescribe the the issuances of such licenses to qualified
necessary regulations for the use of such weights applicants under existing laws.
and measures, subject to such guidelines as shall be
prescribed by the Department of Science and Provided, however, That the sanggunian
Technology. The sanggunian concerned shall, by concerned shall, by appropriate ordinance,
appropriate ordinance, penalize fraudulent practices penalize the use of explosives, noxious or
and unlawful possession or use of instruments of poisonous substances, electricity, muro-
weights and measures and prescribe the criminal ami, and other deleterious methods of
penalty therefor in accordance with the provisions of fishing and prescribe a criminal penalty
this Code. Provided, however, That the sanggunian therefor in accordance with the provisions
concerned may authorize the municipal treasurer to of this Code: Provided, finally, That the
settle an offense not involving the commission of sanggunian concerned shall have the
fraud before a case therefor is filed in court, upon authority to prosecute any violation of the
payment of a compromise penalty of not less than provisions of applicable fishery laws.
Two hundred pesos (P200.00).
Section 150. Situs of the Tax. -
Section 149. Fishery Rentals, Fees and Charges. -
(a) For purposes of collection of the taxes under
(a) Municipalities shall have the exclusive authority Section 143 of this Code, manufacturers, assemblers,
to grant fishery privileges in the municipal waters repackers, brewers, distillers, rectifiers and
compounders of liquor, distilled spirits and wines,
millers, producers, exporters, wholesalers, (e) The foregoing sales allocation shall be applied
distributors, dealers, contractors, banks and other irrespective of whether or not sales are made in the
financial institutions, and other businesses, locality where the factory, project office, plant, or
maintaining or operating branch or sales outlet plantation is located.
elsewhere shall record the sale in the branch or sales
outlet making the sale or transaction, and the tax ARTICLE III
thereon shall accrue and shall be paid to the Cities
municipality where such branch or sales outlet is
located. In cases where there is no such branch or Section 151. Scope of Taxing Powers. - Except as otherwise
sales outlet in the city or municipality where the sale provided in this Code, the city, may levy the taxes, fees, and
or transaction is made, the sale shall be duly charges which the province or municipality may impose:
recorded in the principal office and the taxes due Provided, however, That the taxes, fees and charges levied
shall accrue and shall be paid to such city or and collected by highly urbanized and independent
municipality. component cities shall accrue to them and distributed in
accordance with the provisions of this Code.
(b) The following sales allocation shall apply to
manufacturers, assemblers, contractors, producers, The rates of taxes that the city may levy may exceed the
and exporters with factories, project offices, plants, maximum rates allowed for the province or municipality by
and plantations in the pursuit of their business: not more than fifty percent (50%) except the rates of
professional and amusement taxes.
(1) Thirty percent (30%) of all sales
recorded in the principal office shall be ARTICLE IV
taxable by the city or municipality where Barangays
the principal office is located; and
Section 152. Scope of Taxing Powers. - The barangays may
(2) Seventy percent (70%) of all sales levy taxes, fees, and charges, as provided in this Article, which
recorded in the principal office shall be shall exclusively accrue to them:
taxable by the city or municipality where
the factory, project office, plant, or
(a) Taxes - On stores or retailers with fixed business
plantation is located.
establishments with gross sales of receipts of the
preceding calendar year of Fifty thousand pesos
(c) In case of a plantation located at a place other (P50,000.00) or less, in the case of cities and Thirty
than the place where the factory is located, said thousand pesos (P30,000.00) or less, in the case of
seventy percent (70%) mentioned in subparagraph municipalities, at a rate not exceeding one percent
(b) of subsection (2) above shall be divided as (1%) on such gross sales or receipts.
follows:
(b) Service Fees or Charges. - Barangays may collect
(1) Sixty percent (60%) to the city or reasonable fees or charges for services rendered in
municipality where the factory is located; connection with the regulations or the use of
and barangay-owned properties or service facilities such
as palay, copra, or tobacco dryers.
(2) Forty percent (40%) to the city or
municipality where the plantation is (c) Barangay Clearance. - No city or municipality may
located. issue any license or permit for any business or
activity unless a clearance is first obtained from the
(d) In cases where a manufacturer, assembler, barangay where such business or activity is located
producer, exporter or contractor has two (2) or more or conducted. For such clearance, the sangguniang
factories, project offices, plants, or plantations barangay may impose a reasonable fee. The
located in different localities, the seventy percent application for clearance shall be acted upon within
(70%) sales allocation mentioned in subparagraph seven (7) working days from the filing thereof. In the
(b) of subsection (2) above shall be prorated among event that the clearance is not issued within the said
the localities where the factories, project offices, period, the city or municipality may issue the said
plants, and plantations are located in proportion to license or permit.
their respective volumes of production during the
period for which the tax is due. (d) Other fees and Charges. - The barangay may levy
reasonable fees and charges:
 (1) On commercial breeding of fighting In the case of husband and wife, the additional tax herein
cocks, cockfights and cockpits; imposed shall be based upon the total property owned by
them and the total gross receipts or earnings derived by
(2) On places of recreation which charge them.
admission fees; and
Section 158. Juridical Persons Liable to Community Tax. -
(3) On billboards, signboards, neon signs, Every corporation no matter how created or organized,
and outdoor advertisements. whether domestic or resident foreign, engaged in or doing
business in the Philippines shall pay an annual community tax
ARTICLE V of Five hundred pesos (P500.00) and an annual additional tax,
Common Revenue-Raising Powers which, in no case, shall exceed Ten thousand pesos
(P10,000.00) in accordance with the following schedule:
Section 153. Service Fees and Charges. - Local government
units may impose and collect such reasonable fees and (1) For every Five thousand pesos (P5,000.00) worth
charges for services rendered. 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,
Section 154. Public Utility Charges. - Local government units
found in the assessment rolls of the city or
may fix the rates for the operation of public utilities owned,
municipality where the real property is situated -
operated and maintained by them within their jurisdiction.
Two pesos (P2.00); and
Section 155. Toll Fees or Charges. - The sanggunian
(2) For every Five thousand pesos (P5,000.00) of
concerned may prescribe the terms and conditions and fix the
gross receipts or earnings derived by it from its
rates for the imposition of toll fees or charges for the use of
business in the Philippines during the preceding year
any public road, pier, or wharf, waterway, bridge, ferry or
- Two pesos (P2.00).
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 The dividends received by a corporation from
men of the Armed Forces of the Philippines and members of another corporation however shall, for the purpose
the Philippine National Police on mission, post office of the additional tax, be considered as part of the
personnel delivering mail, physically-handicapped, and gross receipts or earnings of said corporation.
disabled citizens who are sixty-five (65) years or older.
Section 159. Exemptions. - The following are exempt from the
When public safety and welfare so requires, the sanggunian community tax:
concerned may discontinue the collection of the tolls, and
thereafter the said facility shall be free and open for public (1) Diplomatic and consular representatives; and
use.
(2) Transient visitors when their stay in the
ARTICLE VI Philippines does not exceed three (3) months.
Community Tax
Section 160. Place of Payment. - The community tax shall be
Section 156. Community Tax. - Cities or municipalities may paid in the place of residence of the individual, or in the place
levy a community tax in accordance with the provisions of where the principal office of the juridical entity is located.
this Article.
Section 161. Time for Payment; Penalties for Delinquency. -
Section 157. Individuals Liable to Community Tax. - Every
inhabitant of the Philippines eighteen (18) years of age or (a) The community tax shall accrue on the first (1st)
over who has been regularly employed on a wage or salary day of January of each year which shall be paid not
basis for at least thirty (30) consecutive working days during later than the last day of February of each year. If a
any calendar year, or who is engaged in business or person reaches the age of eighteen (18) years or
occupation, or who owns real property with an aggregate otherwise loses the benefit of exemption on or
assessed value of One thousand pesos (P1,000.00) or more, before the last day of June, he shall be liable for the
or who is required by law to file an income tax return shall community tax on the day he reaches such age or
pay an annual additional tax of Five pesos (P5.00) and an upon the day the exemption ends. However, if a
annual additional tax of One peso (P1.00) for every One person reaches the age of eighteen (18) years or
thousand pesos (P1,000.00) of income regardless of whether loses the benefit of exemption on or before the last
from business, exercise of profession or from property which day of March, he shall have twenty (20) days to pay
in no case shall exceed Five thousand pesos (P5,000.00). the community tax without becoming delinquent.
 Persons who come to reside in the Philippines or require such corporation to exhibit the community
reach the age of eighteen (18) years on or after the tax certificate.
first (1st) day of July of any year, or who cease to
belong to an exempt class or after the same date, (c) The community tax certificate required in the two
shall not be subject to the community tax for that preceding paragraphs shall be the one issued for the
year. current year, except for the period from January
until the fifteenth (15th) of April each year, in which
(b) Corporations established and organized on or case, the certificate issued for the preceding year
before the last day of June shall be liable for the shall suffice.
community tax for that year. But corporations
established and organized on or before the last day Section 164. Printing of Community Tax Certificates and
of March shall have twenty (20) days within which to Distribution of Proceeds. -
pay the community tax without becoming
delinquent. Corporations established and organized (a) The Bureau of Internal Revenue shall cause the
on or after the first day of July shall not be subject to printing of community tax certificates and distribute
the community tax for that year. the same to the cities and municipalities through the
city and municipal treasurers in accordance with
If the tax is not paid within the time prescribed above, there prescribed regulations.
shall be added to the unpaid amount an interest of twenty-
four percent (24%) per annum from the due date until it is The proceeds of the tax shall accrue to the general
paid. funds of the cities, municipalities and barangays
except a portion thereof which shall accrue to the
Section 162. Community Tax Certificate. - A community tax general fund of the national government to cover
certificate shall be issued to every person or corporation the actual cost of printing and distribution of the
upon payment of the community tax. A community tax forms and other related expenses. The city or
certificate may also be issued to any person or corporation municipal treasurer concerned shall remit to the
not subject to the community tax upon payment of One peso national treasurer the said share of the national
(P1.00). government in the proceeds of the tax within ten
(10) days after the end of each quarter.
Section 163. Presentation of Community Tax Certificate On
Certain Occasions. - (b) The city or municipal treasurer shall deputize the
barangay treasurer to collect the community tax in
(a) When an individual subject to the community tax their respective jurisdictions: Provided, however,
acknowledges any document before a notary public, That said barangay treasurer shall be bonded in
takes the oath of office upon election or accordance with existing laws.
appointment to any position in the government
service; receives any license, certificate. or permit (c) The proceeds of the community tax actually and
from any public authority; pays any tax or free; directly collected by the city or municipal treasurer
receives any money from any public fund; transacts shall accrue entirely to the general fund of the city or
other official business; or receives any salary or municipality concerned. However, proceeds of the
wage from any person or corporation with whom community tax collected through the barangay
such transaction is made or business done or from treasurers shall be apportioned as follows:
whom any salary or wage is received to require such
individual to exhibit the community tax certificate. (1) Fifty percent (50%) shall accrue to the
general fund of the city or municipality
The presentation of community tax certificate shall concerned; and
not be required in connection with the registration
of a voter. (2) Fifty percent (50%) shall accrue to the
barangay where the tax is collected.
(b) When, through its authorized officers, any
corporation subject to the community tax receives CHAPTER III
any license, certificate, or permit from any public Collection of Taxes
authority, pays any tax or fee, receives money from
public funds, or transacts other official business, it
Section 165. Tax Period and Manner of Payment. - Unless
shall be the duty of the public official with whom
otherwise provided in this Code, the tax period of all local
such transaction is made or business done, to
taxes, fees and 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 examining official. Such certificate shall be made of record in
this Code, all local taxes, fees, and charges shall accrue on the the books of accounts of the taxpayer examined.
first (1st) day of January of each year. However, new taxes,
fees or charges, or changes in the rates thereof, shall accrue In case the examination herein authorized is made by a duly
on the first (1st) day of the quarter next following the authorized deputy of the local treasurer, the written
effectivity of the ordinance imposing such new levies or rates. authority of the deputy concerned shall specifically state the
name, address, and business of the taxpayer whose books,
Section 167. Time of Payment. - Unless otherwise provided in accounts, and pertinent records are to be examined, the date
this Code, all local taxes, fees, and charges shall be paid and place of such examination and the procedure to be
within the first twenty (20) days of January or of each followed in conducting the same.
subsequent quarter, as the case may be. The sanggunian
concerned may, for a justifiable reason or cause, extend the For this purpose, the records of the revenue district office of
time for payment of such taxes, fees, or charges without the Bureau of Internal Revenue shall be made available to the
surcharges or penalties, but only for a period not exceeding local treasurer, his deputy or duly authorized representative.
six (6) months.
CHAPTER IV
Section 168. Surcharges and Penalties on Unpaid Taxes, Fees, Civil Remedies for Collection of Revenues
or Charges. - The sanggunian may impose a surcharge not
exceeding twenty-five (25%) of the amount of taxes, fees or Section 172. Application of Chapter. - The provisions of this
charges not paid on time and an interest at the rate not Chapter and the remedies provided hereon may be availed of
exceeding two percent (2%) per month of the unpaid taxes, for the collection of any delinquent local tax, fee, charge, or
fees or charges including surcharges, until such amount is other revenue.
fully paid but in no case shall the total thirty-six (36%)
months.
Section 173. Local Government's Lien. - Local taxes, fees,
charges and other revenues constitute a lien, superior to all
Section 169. Interests on Other Unpaid Revenues. - Where the liens, charges or encumbrances in favor of any person,
amount of any other revenue due a local government unit, enforceable by appropriate administrative or judicial action,
except voluntary contributions or donations, is not paid on not only upon any property or rights therein which may be
the date fixed in the ordinance, or in the contract, expressed subject to the lien but also upon property used in business,
or implied, or upon the occurrence of the event which has occupation, practice of profession or calling, or exercise of
given rise to its collection, there shall be collected as part of privilege with respect to which the lien is imposed. The lien
that amount an interest thereon at the rate not exceeding may only be extinguished upon full payment of the
two percent (2%) per month from the date it is due until it is delinquent local taxes fees and charges including related
paid, but in no case shall the total interest on the unpaid surcharges and interest.
amount or a portion thereof exceed thirty-six (36) months.
Section 174. Civil Remedies. - The civil remedies for the
Section 170. Collection of Local Revenue by Treasurer. - All collection of local taxes, fees, or charges, and related
local taxes, fees, and charges shall be collected by the surcharges and interest resulting from delinquency shall be:
provincial, city, municipal, or barangay treasurer, or their duly
authorized deputies.
(a) By administrative action thru distraint of goods,
chattels, or effects, and other personal property of
The provincial, city or municipal treasurer may designate the whatever character, including stocks and other
barangay treasurer as his deputy to collect local taxes, fees, securities, debts, credits, bank accounts, and interest
or charges. In case a bond is required for the purpose, the in and rights to personal property, and by levy upon
provincial, city or municipal government shall pay the real property and interest in or rights to real
premiums thereon in addition to the premiums of bond that property;
may be required under this Code.
(b) By judicial action.
Section 171. Examination of Books of Accounts and Pertinent
Records of Businessmen by Local Treasurer. - The provincial,
Either of these remedies or all may be pursued
city, municipal or barangay treasurer may, by himself or
concurrently or simultaneously at the discretion of
through any of his deputies duly authorized in writing,
the local government unit concerned.
examine the books, accounts, and other pertinent records of
any person, partnership, corporation, or association subject
Section 175. Distraint of Personal Property. - The remedy by
to local taxes, fees and charges in order to ascertain. assess,
and collect the correct amount of the tax, fee, or charge. Such distraint shall proceed as follows:
examination shall be made during regular business hours,
only once for every tax period, and shall be certified to by the
(a) Seizure - Upon failure of the person owing any Should the property distrained be not disposed of
local tax, fee, or charge to pay the same at the time within one hundred and twenty (120) days from the
required, the local treasurer or his deputy may, upon date of distraint, the same shall be considered as
written notice, seize or confiscate any personal sold to the local government unit concerned for the
property belonging to that person or any personal amount of the assessment made thereon by the
property subject to the lien in sufficient quantity to Committee on Appraisal and to the extent of the
satisfy the tax, fee, or charge in question, together same amount, the tax delinquencies shall be
with any increment thereto incident to delinquency cancelled.
and the expenses of seizure. In such case, the local
treasurer or his deputy shall issue a duly Said Committee on Appraisal shall be composed of
authenticated certificate based upon the records of the city or municipal treasurer as chairman, with a
his office showing the fact of delinquency and the representative of the Commission on Audit and the
amounts of the tax, fee, or charge and penalty due. city or municipal assessor as members.
Such certificate shall serve as sufficient warrant for
the distraint of personal property aforementioned, (f) Disposition of proceeds - The proceeds of the sale
subject to the taxpayer's right to claim exemption shall be applied to satisfy the tax, including the
under the provisions of existing laws. Distrained surcharges, interest, and other penalties incident to
personal property shall be sold at public auction in delinquency, and the expenses of the distraint and
the manner hereon provided for. sale. The balance over and above what is required to
pay the entire claim shall be returned to the owner
(b) Accounting of distrained goods. - The officer of the property sold. The expenses chargeable upon
executing the distraint shall make or cause to be the seizure and sale shall embrace only the actual
made an account of the goods, chattels or effects expenses of seizure and preservation of the property
distrained, a copy of which signed by himself shall be pending the sale, and no charge shall be imposed for
left either with the owner or person from whose the services of the local officer or his deputy. Where
possession the goods, chattels or effects are taken, the proceeds of the sale are insufficient to satisfy the
or at the dwelling or place or business of that person claim, other property may, in like manner, be
and with someone of suitable age and discretion, to distrained until the full amount due, including all
which list shall be added a statement of the sum expenses, is collected.
demanded and a note of the time and place of sale.
Section 176. Levy on Real Property. - After the expiration of
(c) Publication - The officer shall forthwith cause a the time required to pay the delinquent tax, fee, or charge,
notification to be exhibited in not less than three (3) real property may be levied on before, simultaneously, or
public and conspicuous places in the territory of the after the distraint of personal property belonging to the
local government unit where the distraint is made, delinquent taxpayer. To this end, the provincial, city or
specifying the time and place of sale, and the articles municipal treasurer, as the case may be, shall prepare a duly
distrained. The time of sale shall not be less than authenticated certificate showing the name of the taxpayer
twenty (20) days after the notice to the owner or and the amount of the tax, fee, or charge, and penalty due
possessor of the property as above specified and the from him. Said certificate shall operate with the force of a
publication or posting of the notice. One place for legal execution throughout the Philippines. Levy shall be
the posting of the notice shall be at the office of the effected by writing upon said certificate the description of the
chief executive of the local government unit in which property upon which levy is made. At the same time, written
the property is distrained. notice of the levy shall be mailed to or served upon the
assessor and the Register of Deeds of the province or city
(d) Release of distrained property upon payment where the property is located who shall annotate the levy on
prior to sale - If at any time prior to the the tax declaration and certificate of title of the property,
consummation of the sale, all the proper charges are respectively, and the delinquent taxpayer or, if he be absent
paid to the officer conducting the sale, the goods or from the Philippines, to his agent or the manager of the
effects distrained shall be restored to the owner. business in respect to which the liability arose, or if there be
none, to the occupant of the property in question.
(e) Procedure of sale - At the time and place fixed in
the notice, the officer conducting the sale shall sell In case the levy on real property is not issued before or
the goods or effects so distrained at public auction simultaneously with the warrant of distraint on personal
to the highest bidder for cash. Within five (5) days property, and the personal property of the taxpayer is not
after the sale, the local treasurer shall make a report sufficient to satisfy his delinquency, the provincial, city or
of the proceedings in writing to the local chief municipal treasurer, as the case may be, shall within thirty
executive concerned. (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 Section 179. Redemption of Property Sold. - Within one (1)
the warrant, be submitted by the levying officer to the year from the date of sale, the delinquent taxpayer or his
sanggunian concerned. representative shall have the right to redeem the property
upon payment to the local treasurer of the total amount of
Section 177. Penalty for Failure to Issue and Execute Warrant. taxes, fees, or charges, and related surcharges, interests or
- Without prejudice to criminal prosecution under the Revised penalties from the date of delinquency to the date of sale,
Penal Code and other applicable laws, any local treasurer plus interest of not more than two percent (2%) per month
who fails to issue or execute the warrant of distraint or levy on the purchase price from the date of purchase to the date
after the expiration of the time prescribed, or who is found of redemption. Such payment shall invalidate the certificate
guilty of abusing the exercise thereof by competent authority of sale issued to the purchaser and the owner shall be
shall be automatically dismissed from the service after due entitled to a certificate of redemption from the provincial,
notice and hearing. city or municipal treasurer or his deputy.

Section 178. Advertisement and Sale. - Within thirty (30) days The provincial, city or municipal treasurer or his deputy, upon
after the levy, the local treasurer shall proceed to publicly surrender by the purchaser of the certificate of sale
advertise for sale or auction the property or a usable portion previously issued to him, shall forthwith return to the latter
thereof as may be necessary to satisfy the claim and cost of the entire purchase price paid by him plus the interest of not
sale; and such advertisement shall cover a period of at least more than two percent (2%) per month herein provided for,
thirty (30) days. It shall be effected by posting a notice at the the portion of the cost of sale and other legitimate expenses
main entrance of the municipal building or city hall, and in a incurred by him, and said property thereafter shall be free
public and conspicuous place in the barangay where the real from the lien of such taxes, fees, or charges, related
property is located, and by publication once a week for three surcharges, interests, and penalties.
(3) weeks in a newspaper of general circulation in the
province, city or municipality where the property is located. The owner shall not, however, be deprived of the possession
The advertisement shall contain the amount of taxes, fees or of said property and shall be entitled to the rentals and other
charges, and penalties due thereon, and the time and place income thereof until the expiration of the time allowed for its
of sale, the name of the taxpayer against whom the taxes, redemption.
fees, or charges are levied, and a short description of the
property to be sold. At any time before the date fixed for the Section 180. Final Deed to Purchaser. - In case the taxpayer
sale, the taxpayer may stay they proceedings by paying the fails to redeem the property as provided herein, the local
taxes, fees, charges, penalties and interests. If he fails to do treasurer shall execute a deed conveying to the purchaser so
so, the sale shall proceed and shall be held either at the main much of the property as has been sold, free from liens of any
entrance of the provincial, city or municipal building, or on taxes, fees, charges, related surcharges, interests, and
the property to be sold, or at any other place as determined penalties. The deed shall succinctly recite all the proceedings
by the local treasurer conducting the sale and specified in the upon which the validity of the sale depends.
notice of sale.
Section 181. Purchase of Property By the Local Government
Within thirty (30) days after the sale, the local treasurer or his Units for Want of Bidder. - In case there is no bidder for the
deputy shall make a report of the sale to the sanggunian real property advertised for sale as provided herein, or if the
concerned, and which shall form part of his records. After highest bid is for an amount insufficient to pay the taxes,
consultation with the sanggunian, the local treasurer shall fees, or charges, related surcharges, interests, penalties and
make and deliver to the purchaser a certificate of sale, costs, the local treasurer conducting the sale shall purchase
showing the proceeding of the sale, describing the property the property in behalf of the local government unit
sold, stating the name of the purchaser and setting out the concerned to satisfy the claim and within two (2) days
exact amount of all taxes, fees, charges, and related thereafter shall make a report of his proceedings which shall
surcharges, interests, or penalties: Provided, however, That be reflected upon the records of his office. It shall be the duty
any excess in the proceeds of the sale over the claim and cost of the Registrar of Deeds concerned upon registration with
of sales shall be turned over to the owner of the property. his office of any such declaration of forfeiture to transfer the
title of the forfeited property to the local government unit
The local treasurer may, by ordinance duly approved, concerned without the necessity of an order from a
advance an amount sufficient to defray the costs of collection competent court.
by means of the remedies provided for in this Title, including
the preservation or transportation in case of personal Within one (1) year from the date of such forfeiture, the
property, and the advertisement and subsequent sale, in taxpayer or any of his representative, may redeem the
cases of personal and real property including improvements property by paying to the local treasurer the full amount of
thereon. 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 (h) Any material or article forming part of a house or
fully vested on the local government unit concerned. improvement of any real property.

Section 182. Resale of Real Estate Taken for Taxes, Fees, or CHAPTER V
Charges. - The sanggunian concerned may, by ordinance duly Miscellaneous Provisions
approved, and upon notice of not less than twenty (20) days,
sell and dispose of the real property acquired under the Section 186. Power To Levy Other Taxes, Fees or Charges. -
preceding section at public auction. The proceeds of the sale Local government units may exercise the power to levy taxes,
shall accrue to the general fund of the local government unit fees or charges on any base or subject not otherwise
concerned. specifically enumerated herein or taxed under the provisions
of the National Internal Revenue Code, as amended, or other
Section 183. Collection of Delinquent Taxes, Fees, Charges or applicable laws: Provided, That the taxes, fees, or charges
other Revenues through Judicial Action. - The local shall not be unjust, excessive, oppressive, confiscatory or
government unit concerned may enforce the collection of contrary to declared national policy: Provided, further, That
delinquent taxes, fees, charges or other revenues by civil the ordinance levying such taxes, fees or charges shall not be
action in any court of competent jurisdiction. The civil action enacted without any prior public hearing conducted for the
shall be filed by the local treasurer within the period purpose.
prescribed in Section 194 of this Code.
Section 187. Procedure for Approval and Effectivity of Tax,
Section 184. Further Distraint or Levy. - The remedies by Ordinances and Revenue Measures; Mandatory Public
distraint and levy may be repeated if necessary until the full Hearings. - The procedure for approval of local tax ordinances
amount due, including all expenses, is collected. and revenue measures shall be in accordance with the
provisions of this Code: Provided, That public hearings shall
Section 185. Personal Property Exempt from Distraint or Levy. be conducted for the purpose prior to the enactment thereof:
- The following property shall be exempt from distraint and Provided, further, That any question on the constitutionality
the levy, attachment or execution thereof for delinquency in or legality of tax ordinances or revenue measures may be
the payment of any local tax, fee or charge, including the raised on appeal within thirty (30) days from the effectivity
related surcharge and interest: thereof to the Secretary of Justice who shall render a decision
within sixty (60) days from the date of receipt of the appeal:
(a) Tools and implements necessarily used by the Provided, however, That such appeal shall not have the effect
delinquent taxpayer in his trade or employment; 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
(b) One (1) horse, cow, carabao, or other beast of
the decision or the lapse of the sixty-day period without the
burden, such as the delinquent taxpayer may select,
Secretary of Justice acting upon the appeal, the aggrieved
and necessarily used by him in his ordinary
party may file appropriate proceedings with a court of
occupation;
competent jurisdiction.
(c) His necessary clothing, and that of all his family;
Section 188. Publication of Tax Ordinances and Revenue
Measures. - Within ten (10) days after their approval,
(d) Household furniture and utensils necessary for certified true copies of all provincial, city, and municipal tax
housekeeping and used for that purpose by the
ordinances or revenue measures shall be published in full for
delinquent taxpayer, such as he may select, of a three (3) consecutive days in a newspaper of local circulation:
value not exceeding Ten thousand pesos
Provided, however, That in provinces, cities and
(P10,000.00); municipalities where there are no newspapers of local
circulation, the same may be posted in at least two (2)
(e) Provisions, including crops, actually provided for conspicuous and publicly accessible places.
individual or family use sufficient for four (4)
months; Section 189. Furnishing of Copies of Tax Ordinances and
Revenue Measures. - Copies of all provincial, city, and
(f) The professional libraries of doctors, engineers, municipal and barangay tax ordinances and revenue
lawyers and judges; measures shall be furnished the respective local treasurers
for public dissemination.
(g) One fishing boat and net, not exceeding the total
value of Ten thousand pesos (P10,000.00), by the Section 190. Attempt to Enforce Void or Suspended Tax
lawful use of which a fisherman earns his livelihood; Ordinances and revenue measures. - The enforcement of any
and 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 (1) The treasurer is legally prevented from
and employees responsible therefor. making the assessment of collection;

Section 191. Authority of Local Government Units to Adjust (2) The taxpayer requests for a
Rates of Tax Ordinances. - Local government units shall have reinvestigation and executes a waiver in
the authority to adjust the tax rates as prescribed herein not writing before expiration of the period
oftener than once every five (5) years, but in no case shall within which to assess or collect; and
such adjustment exceed ten percent (10%) of the rates fixed
under this Code. (3) The taxpayer is out of the country or
otherwise cannot be located.
Section 192. Authority to Grant Tax Exemption Privileges. -
Local government units may, through ordinances duly Section 195. Protest of Assessment. - When the local
approved, grant tax exemptions, incentives or reliefs under treasurer or his duly authorized representative finds that
such terms and conditions as they may deem necessary. correct taxes, fees, or charges have not been paid, he shall
issue a notice of assessment stating the nature of the tax, fee,
Section 193. Withdrawal of Tax Exemption Privileges. - Unless or charge, the amount of deficiency, the surcharges, interests
otherwise provided in this Code, tax exemptions or incentives and penalties. Within sixty (60) days from the receipt of the
granted to, or presently enjoyed by all persons, whether notice of assessment, the taxpayer may file a written protest
natural or juridical, including government-owned or with the local treasurer contesting the assessment;
controlled corporations, except local water districts, otherwise, the assessment shall become final and executory.
cooperatives duly registered under R.A. No. 6938, non-stock The local treasurer shall decide the protest within sixty (60)
and non-profit hospitals and educational institutions, are days from the time of its filing. If the local treasurer finds the
hereby withdrawn upon the effectivity of this Code. protest to be wholly or partly meritorious, he shall issue a
notice cancelling wholly or partially the assessment.
CHAPTER VI However, if the local treasurer finds the assessment to be
Taxpayer's Remedies wholly or partly correct, he shall deny the protest wholly or
partly with notice to the taxpayer. The taxpayer shall have
Section 194. Periods of Assessment and Collection. - 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 competent
(a) Local taxes, fees, or charges shall be assessed
jurisdiction otherwise the assessment becomes conclusive
within five (5) years from the date they became due.
and unappealable.
No action for the collection of such taxes, fees, or
charges, whether administrative or judicial, shall be
instituted after the expiration of such period: Section 196. Claim for Refund of Tax Credit. - No case or
Provided, That. taxes, fees or charges which have proceeding shall be maintained in any court for the recovery
accrued before the effectivity of this Code may be of any tax, fee, or charge erroneously or illegally collected
assessed within a period of three (3) years from the until a written claim for refund or credit has been filed with
date they became due. 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
(b) In case of fraud or intent to evade the payment
from the date the taxpayer is entitled to a refund or credit.
of taxes, fees, or charges, the same may be assessed
within ten (10) years from discovery of the fraud or
intent to evade payment. TITLE II
REAL PROPERTY TAXATION
(c) Local taxes, fees, or charges may be collected
within five (5) years from the date of assessment by CHAPTER I
administrative or judicial action. No such action shall General Provisions
be instituted after the expiration of said period:
Provided, however, That, taxes, fees or charges Section 197. Scope. - This Title shall govern the
assessed before the effectivity of this Code may be administration, appraisal, assessment, levy and collection of
collected within a period of three (3) years from the real property tax.
date of assessment.
Section 198. Fundamental Principles. - The appraisal,
(d) The running of the periods of prescription assessment, levy and collection of real property tax shall be
provided in the preceding paragraphs shall be guided by the following fundamental principles:
suspended for the time during which:
 (a) Real property shall be appraised at its current (i) "Commercial Land" is land devoted principally for
and fair market value; the object of profit and is not classified as
agricultural, industrial, mineral, timber, or residential
(b) Real property shall be classified for assessment land;
purposes on the basis of its actual use;
(j) "Depreciated Value" is the value remaining after
(c) Real property shall be assessed on the basis of a deducting depreciation from the acquisition cost;
uniform classification within each local government
unit; (k) "Economic Life" is the estimated period over
which it is anticipated that a machinery or
(d) The appraisal, assessment, levy and collection of equipment may be profitably utilized;
real property tax shall not be let to any private
person; and (l) "Fair Market Value" is the price at which a
property may be sold by a seller who is not
(e) The appraisal and assessment of real property compelled to sell and bought by a buyer who is not
shall be equitable. compelled to buy;

Section 199. Definitions. - When used in this Title: (m) "Improvement" is a valuable addition made to a
property or an amelioration in its condition,
(a) "Acquisition Cost" for newly-acquired machinery amounting to more than a mere repair or
not yet depreciated and appraised within the year of replacement of parts involving capital expenditures
its purchase, refers to the actual cost of the and labor, which is intended to enhance its value,
machinery to its present owner, plus the cost of beauty or utility or to adapt it for new or further
transportation, handling, and installation at the purposes;
present site;
(n) "Industrial Land" is land devoted principally to
(b) "Actual Use" refers to the purpose for which the industrial activity as capital investment and is not
property is principally or predominantly utilized by classified as agricultural, commercial, timber,
the person in possession thereof; mineral or residential land;

(c) "Ad Valorem Tax" is a levy on real property (o) "Machinery" embraces machines, equipment,
determined on the basis of a fixed proportion of the mechanical contrivances, instruments, appliances or
value of the property; apparatus which may or may not be attached,
permanently or temporarily, to the real property. It
includes the physical facilities for production, the
(d) "Agricultural Land" is land devoted principally to
installations and appurtenant service facilities, those
the planting of trees, raising of crops, livestock and
which are mobile, self-powered or self-propelled,
poultry, dairying, salt making, inland fishing and
and those not permanently attached to the real
similar aquacultural activities, and other agricultural
property which are actually, directly, and exclusively
activities, and is not classified as mineral, timber,
used to meet the needs of the particular industry,
residential, commercial or industrial land;
business or activity and which by their very nature
and purpose are designed for, or necessary to its
(e) "Appraisal" is the act or process of determining
manufacturing, mining, logging, commercial,
the value of property as of a specified date for a
industrial or agricultural purposes;
specific purpose;
(p) "Mineral Lands" are lands in which minerals,
(f) "Assessment" is the act or process of determining metallic or non-metallic, exist in sufficient quantity
the value of a property, or proportion thereof
or grade to justify the necessary expenditures to
subject to tax, including the discovery, listing,
extract and utilize such materials;
classification, and appraisal of properties;
(q) "Reassessment" is the assigning of new assessed
(g) "Assessment Level" is the percentage applied to values to property, particularly real estate, as the
the fair market value to determine the taxable value
result of a general, partial, or individual reappraisal
of the property; of the property;

(h) "Assessed Value" is the fair market value of the

real property multiplied by the assessment level. It is
synonymous to taxable value;
 (r) "Remaining Economic Life" is the period of time prepared, and file with the provincial, city or municipal
expressed in years from the date of appraisal to the assessor, a sworn statement declaring the true value of
date when the machinery becomes valueless; subject property, within sixty (60) days after the acquisition
of such property or upon completion or occupancy of the
(s) "Remaining Value" is the value corresponding to improvement, whichever comes earlier.
the remaining useful life of the machinery;
Section 204. Declaration of Real Property by the Assessor. -
(t) "Replacement or Reproduction Cost" is the cost When any person, natural or juridical, by whom real property
that would be incurred on the basis of current is required to be declared under Section 202 hereof, refuses
prices, in acquiring an equally desirable substitute or fails for any reason to make such declaration within the
property, or the cost of reproducing a new replica of time prescribed, the provincial, city or municipal assessor
the property on the basis of current prices with the shall himself declare the property in the name of the
same or closely similar material; and defaulting owner, if known, or against an unknown owner, as
the case may be, and shall assess the property for taxation in
(u) "Residential Land" is land principally devoted to accordance with the provision of this Title. No oath shall be
habitation. required of a declaration thus made by the provincial, city or
municipal assessor.
Section 200. Administration of the Real Property Tax. - The
provinces and cities, including the municipalities within the Section 205. Listing of Real Property in the Assessment Rolls. -
Metropolitan Manila Area, shall be primarily responsible for
the proper, efficient and effective administration of the real (a) In every province and city, including the
property tax. municipalities within the Metropolitan Manila Area,
there shall be prepared and maintained by the
CHAPTER II provincial, city or municipal assessor an assessment
Appraisal and Assessment of Real Property roll wherein shall be listed all real property, whether
taxable or exempt, located within the territorial
jurisdiction of the local government unit concerned.
Section 201. Appraisal of Real Property. - All real property,
Real property shall be listed, valued and assessed in
whether taxable or exempt, shall be appraised at the current
the name of the owner or administrator, or anyone
and fair market value prevailing in the locality where the
having legal interest in the property.
property is situated. The Department of Finance shall
promulgate the necessary rules and regulations for the
classification, appraisal, and assessment of real property (b) The undivided real property of a deceased person
pursuant to the provisions of this Code. 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
Section 202. Declaration of real Property by the Owner or
property other than that owned by a deceased may
Administrator. - It shall be the duty of all persons, natural or
be listed, valued and assessed in the name of one or
juridical, owning or administering real property, including the
more co-owners: Provided, however, That such heir,
improvements therein, within a city or municipality, or their
devisee, or co-owner shall be liable severally and
duly authorized representative, to prepare, or cause to be
proportionately for all obligations imposed by this
prepared, and file with the provincial, city or municipal
Title and the payment of the real property tax with
assessor, a sworn statement declaring the true value of their
respect to the undivided property.
property, whether 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 (c) The real property of a corporation, partnership,
declaration shall contain a description of the property or association shall be listed, valued and assessed in
sufficient in detail to enable the assessor or his deputy to the same manner as that of an individual.
identify the same for assessment purposes. The sworn
declaration of real property herein referred to shall be filed (d) Real property owned by the Republic of the
with the assessor concerned once every three (3) years Philippines, its instrumentalities and political
during the period from January first (1st) to June thirtieth subdivisions, the beneficial use of which has been
(30th) commencing with the calendar year 1992. granted, for consideration or otherwise, to a taxable
person, shall be listed, valued and assessed in the
Section 203. Duty of Person Acquiring Real Property or name of the possessor, grantee or of the public
Making Improvement Thereon. - It shall also be the duty of entity if such property has been acquired or held for
any person, or his authorized representative, acquiring at any resale or lease.
time real property in any municipality or city or making any
improvement on real property, to prepare, or cause to be
Section 206. Proof of Exemption of Real Property from Registrar of Deeds to refuse the registration of the
Taxation. - Every person by or for whom real property is document.
declared, who shall claim tax exemption for such property
under this Title shall file with the provincial, city or municipal Section 210. Duty of Official Issuing Building Permit or
assessor within thirty (30) days from the date of the Certificate of Registration of Machinery to Transmit Copy to
declaration of real property sufficient documentary evidence Assessor. - Any public official or employee who may now or
in support of such claim including corporate charters, title of hereafter be required by law or regulation to issue to any
ownership, articles of incorporation, by-laws, contracts, person a permit for the construction, addition, repair, or
affidavits, certifications and mortgage deeds, and similar renovation of a building, or permanent improvement on land,
documents. or a certificate of registration for any machinery, including
machines, mechanical contrivances, and apparatus attached
If the required evidence is not submitted within the period or affixed on land or to another real property, shall transmit a
herein prescribed, the property shall be listed as taxable in copy of such permit or certificate within thirty (30) days of its
the assessment roll. However, if the property shall be proven issuance, to the assessor of the province, city or municipality
to be tax exempt, the same shall be dropped from the where the property is situated.
assessment roll.
Section 211. Duty of Geodetic Engineers to Furnish Copy of
Section 207. Real Property Identification System. - All Plans to Assessor. - It shall be the duty of all geodetic
declarations of real property made under the provisions of engineers, public or private, to furnish free of charge to the
this Title shall be kept and filed under a uniform classification assessor of the province, city or municipality where the land
system to be established by the provincial, city or municipal is located with a white or blue print copy of each of all
assessor. approved original or subdivision plans or maps of surveys
executed by them within thirty (30) days from receipt of such
Section 208. Notification of Transfer of Real Property plans from the Lands Management Bureau, the Land
Ownership. - Any person who shall transfer real property Registration Authority, or the Housing and Land Use
ownership to another shall notify the provincial, city or Regulatory Board, as the case may be.
municipal assessor concerned within sixty (60) days from the
date of such transfer. The notification shall include the mode Section 212. Preparation of Schedule of Fair Market Values. -
of transfer, the description of the property alienated, the Before any general revision of property assessment is made
name and address of the transferee. pursuant to the provisions of this Title, there shall be
prepared a schedule of fair market values by the provincial,
Section 209. Duty of Registrar of Deeds to Appraise Assessor city and municipal assessor of the municipalities within the
of Real Property Listed in Registry. - Metropolitan Manila Area for the different classes of real
property situated in their respective local government units
(a) To ascertain whether or not any real property for enactment by ordinance of the sanggunian concerned.
entered in the Registry of Property has escaped The schedule of fair market values shall be published in a
discovery and listing for the purpose of taxation, the newspaper of general circulation in the province, city or
Registrar of Deeds shall prepare and submit to the municipality concerned or in the absence thereof, shall be
provincial, city or municipal assessor, within six (6) posted in the provincial capitol, city or municipal hall and in
months from the date of effectivity of this Code and two other conspicuous public places therein.
every year thereafter, an abstract of his registry,
which shall include brief but sufficient description of Section 213. Authority of Assessor to Take Evidence. - For the
the real properties entered therein, their present purpose of obtaining information on which to base the
owners, and the dates of their most recent transfer market value of any real property, the assessor of the
or alienation accompanied by copies of province, city or municipality or his deputy may summon the
corresponding deeds of sale, donation, or partition owners of the properties to be affected or persons having
or other forms of alienation. legal interest therein and witnesses, administer oaths, and
take deposition concerning the property, its ownership,
(b) It shall also be the duty of the Registrar of Deeds amount, nature, and value.
to require every person who shall present for
registration a document of transfer, alienation, or Section 214. Amendment of Schedule of Fair Market Values. -
encumbrance of real property to accompany the The provincial, city or municipal assessor may recommend to
same with a certificate to the effect that the real the sanggunian concerned amendments to correct errors in
property subject of the transfer, alienation, or valuation in the schedule of fair market values. The
encumbrance, as the case may be, has been fully sanggunian concerned shall, by ordinance, act upon the
paid of all real property taxes due thereon. Failure to recommendation within ninety (90) days from receipt
provide such certificate shall be a valid cause for the thereof.
Section 215. Classes of Real Property for Assessment P175,000.00 300,000.00 10%
Purposes. - For purposes of assessment, real property shall be
classified as residential, agricultural, commercial, industrial, 300,000.00 500,000.00 20%
mineral, timberland or special.
500,000.00 750,000.00 25%
The city or municipality within the Metropolitan Manila Area, 750,000.00 1,000,000.00 30%
through their respective sanggunian, shall have the power to
classify lands as residential, agricultural, commercial, 1,000,000.00 2,000,000.00 35%
industrial, mineral, timberland, or special in accordance with 2,000,000.00 5,000,000.00 40%
their zoning ordinances.
5,000,000.00 10,000,000.00 50%
Section 216. Special Classes of Real Property. - All lands, 10,000,000.00 60%
buildings, and other improvements thereon actually, directly
and exclusively used for hospitals, cultural, or scientific (2) Agricultural
purposes, and those owned and used by local water districts, Fair Market Value
and government-owned or controlled corporations rendering
Over Not Over Assessment Levels
essential public services in the supply and distribution of
water and/or generation and transmission of electric power P300,000.00 25%
shall be classified as special.
P300,000.00 500,000.00 30%
Section 217. Actual Use of Real Property as Basis for 500,000.00 750,000.00 35%
Assessment. - Real property shall be classified, valued and
assessed on the basis of its actual use regardless of where 750,000.00 1,000,000.00 40%
located, whoever owns it, and whoever uses it.
1,000,000.00 2,000,000.00 45%

Section 218. Assessment Levels. - The assessment levels to be 2,000,000.00 50%

applied to the fair market value of real property to determine
(3) Commercial / Industrial
its assessed value shall be fixed by ordinances of the
Fair Market Value
sangguniang panlalawigan, sangguniang panlungsod or
sangguniang bayan of a municipality within the Metropolitan Over Not Over Assessment Levels
Manila Area, at the rates not exceeding the following:
P300,000.00 30%
(a) On Lands: P300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
CLASS ASSESSMENT LEVELS
750,000.00 1,000,000.00 50%
Residential 20%
1,000,000.00 2,000,000.00 60%
Agricultural 40%
2,000,000.00 5,000,000.00 70%
Commercial 50%
5,000,000.00 10,000,000.00 75%
Industrial 50%
10,000,000.00 80%
Mineral 50%
(4) Timberland
Timberland 20%
Fair Market Value
Over Not Over Assessment Levels
(b) On Buildings and Other Structures:
P300,000.00 45%

<td P300,000.00 500,000.00 50%

</td 500,000.00 750,000.00 55%
(1) Residential
750,000.00 1,000,000.00 60%
Fair market Value
5,000,000.00 2,000,000.00 65%
Over Not Over Assessment Levels
2,000,000.00 70%
P175,000.00 0%
 (c) On Machineries 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
Class Assessment Levels
causes occurred, and shall take effect at the beginning of the
Agricultural 40% quarter next following the reassessment.

Residential 50%
Section 222. Assessment of Property Subject to Back Taxes. -
Commercial 80% Real property declared for the first time shall be assessed for
taxes for the period during which it would have been liable
Industrial 80% but in no case of more than ten (10) years prior to the date of
initial assessment: Provided, however, That such taxes shall
(d) On Special Classes: The assessment levels for all be computed on the basis of the applicable schedule of
lands buildings, machineries and other values in force during the corresponding period.
improvements;
If such taxes are paid on or before the end of the quarter
following the date the notice of assessment was received by
Actual Use Assessment
the owner or his representative, no interest for delinquency
Level
shall be imposed thereon; otherwise, such taxes shall be
Cultural 15% subject to an interest at the rate of two percent (2%) per
month or a fraction thereof from the date of the receipt of
Scientific 15% the assessment until such taxes are fully paid.
Hospital 15%
Section 223. Notification of New or Revised Assessment. -
Local water districts 10% When real property is assessed for the first time or when an
existing assessment is increased or decreased, the provincial,
Government-owned or controlled 10%
city or municipal assessor shall within thirty (30) days give
corporations engaged in the
written notice of such new or revised assessment to the
supply and distribution of water
person in whose name the property is declared. The notice
and/or generation and
may be delivered personally or by registered mail or through
transmission of electric power
the assistance of the punong barangay to the last known
address of the person to be served.
Section 219. General Revision of Assessment and Property
Classification. - The provincial, city or municipal assessor shall Section 224. Appraisal and Assessment of Machinery. -
undertake a general revision of real property assessments
within two (2) years after the effectivity of this Code and (a) The fair market value of a brand-new machinery
every three (3) years thereafter. shall be the acquisition cost. In all other cases, the
fair market value shall be determined by dividing the
Section 220. Valuation of Real Property. - In cases where (a) remaining economic life of the machinery by its
real property is declared and listed for taxation purposes for estimated economic life and multiplied by the
the first time; (b) there is an ongoing general revision of replacement or reproduction cost.
property classification and assessment; or (c) a request is
made by the person in whose name the property is declared, (b) If the machinery is imported, the acquisition cost
the provincial, city or municipal assessor or his duly includes freight, insurance, bank and other charges,
authorized deputy shall, in accordance with the provisions of brokerage, arrastre and handling, duties and taxes,
this Chapter, make a classification, appraisal and assessment plus charges at the present site. The cost in foreign
or taxpayer's valuation thereon: Provided, however, That the currency of imported machinery shall be converted
assessment of real property shall not be increased oftener to peso cost on the basis of foreign currency
than once every three (3) years except in case of new exchange rates as fixed by the Central Bank.
improvements substantially increasing the value of said
property or of any change in its actual use.
Section 225. Depreciation Allowance for Machinery. - For
purposes of assessment, a depreciation allowance shall be
Section 221. Date of Effectivity of Assessment or made for machinery at a rate not exceeding five percent (5%)
Reassessment. - All assessments or reassessments made after of its original cost or its replacement or reproduction cost, as
the first (1st) day of January of any year shall take effect on the case may be, for each year of use: Provided, however,
the first (1st) day of January of the succeeding year: Provided, That the remaining value for all kinds of machinery shall be
however, That the reassessment of real property due to its fixed at not less than twenty percent (20%) of such original,
partial or total destruction, or to a major change in its actual
use, or to any great and sudden inflation or deflation of real
replacement, or reproduction cost for so long as the cases. No member of the Board shall be entitled to
machinery is useful and in operation. per diems or traveling expenses for his attendance in
Board meetings, except when conducting an ocular
CHAPTER III inspection in connection with a case under appeal.
Assessment Appeals
(b) All expenses of the Board shall be charged
Section 226. Local Board of Assessment Appeals. - Any owner against the general fund of the province or city, as
or person having legal interest in the property who is not the case may be. The sanggunian concerned shall
satisfied with the action of the provincial, city or municipal appropriate the necessary funds to enable the Board
assessor in the assessment of his property may, within sixty in their respective localities to operate effectively.
(60) days from the date of receipt of the written notice of
assessment, appeal to the Board of Assessment Appeals of Section 229. Action by the Local Board of Assessment
the provincial or city by filing a petition under oath in the Appeals. -
form prescribed for the purpose, together with copies of the
tax declarations and such affidavits or documents submitted (a) The Board shall decide the appeal within one
in support of the appeal. hundred twenty (120) days from the date of receipt
of such appeal. The Board, after hearing, shall render
Section 227. Organization, Powers, Duties, and Functions of its decision based on substantial evidence or such
the Local Board of Assessment Appeals. - relevant evidence on record as a reasonable mind
might accept as adequate to support the conclusion.
(a) The Board of Assessment Appeals of the province
or city shall be composed of the Registrar of Deeds, (b) In the exercise of its appellate jurisdiction, the
as Chairman, the provincial or city prosecutor and Board shall have the power to summon witnesses,
the provincial, or city engineer as members, who administer oaths, conduct ocular inspection, take
shall serve as such in an ex officio capacity without depositions, and issue subpoena and subpoena
additional compensation. duces tecum. The proceedings of the Board shall be
conducted solely for the purpose of ascertaining the
(b) The chairman of the Board shall have the power facts without necessarily adhering to technical rules
to designate any employee of the province or city to applicable in judicial proceedings.
serve as secretary to the Board also without
additional compensation. (c) The secretary of the Board shall furnish the
owner of the property or the person having legal
(c) The chairman and members of the Board of interest therein and the provincial or city assessor
Assessment Appeals of the province or city shall with a copy of the decision of the Board. In case the
assume their respective positions without need of provincial or city assessor concurs in the revision or
further appointment or special designations the assessment, it shall be his duty to notify the
immediately upon effectivity of this Code. They shall owner of the property or the person having legal
take oath or affirmation of office in the prescribed interest therein of such fact using the form
form. prescribed for the purpose. The owner of the
property or the person having legal interest therein
(d) In provinces and cities without a provincial or city or the assessor who is not satisfied with the decision
engineer, the district engineer shall serve as member of the Board, may, within thirty (30) days after
of the Board. In the absence of the Registrar of receipt of the decision of said Board, appeal to the
Deeds, or the provincial or city prosecutor, or the Central Board of Assessment Appeals, as herein
provincial or city engineer, or the district engineer, provided. The decision of the Central Board shall be
the persons performing their duties, whether in an final and executory.
acting capacity or as a duly designated officer-in-
charge, shall automatically become the chairman or Section 230. Central Board of Assessment Appeals. - The
member, respectively, of the said Board, as the case Central Board of Assessment Appeals shall be composed of a
may be. chairman, and two (2) members to be appointed by the
President, who shall serve for a term of seven (7) years,
Section 228. Meetings and Expenses of the Local Board of without reappointment. Of those first appointed, the
Assessment Appeals. - 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
(a) The Board of Assessment Appeals of the province
portion of the term of the predecessor. In no case shall any
or city shall meet once a month and as often as may
member be appointed or designated in a temporary or acting
be necessary for the prompt disposition of appealed
capacity. The chairman and the members of the Board shall
be Filipino citizens, at least forty (40) years old at the time of (a) In the case of a province, at the rate not
their appointment, and members of the Bar or Certified exceeding one percent (1%) of the assessed value of
Public Accountants for at least ten (10) years immediately real property; and
preceding their appointment. The chairman of the Board of
Assessment Appeals shall have the salary grade equivalent to (b) In the case of a city or a municipality within the
the rank of Director III under the Salary Standardization Law Metropolitan Manila Area, at the rate not exceeding
exclusive of allowances and other emoluments. The members two percent (2%) of the assessed value of real
of the Board shall have the salary grade equivalent to the property.
rank of Director II under the Salary Standardization Law
exclusive of allowances and other emoluments. The Board Section 234. Exemptions from Real Property Tax. - The
shall have appellate jurisdiction over all assessment cases following are exempted from payment of the real property
decided by the Local Board of Assessment Appeals. tax:

There shall be Hearing Officers to be appointed by the Central (a) Real property owned by the Republic of the
Board of Assessment Appeals pursuant to civil service laws, Philippines or any of its political subdivisions except
rules and regulations, one each for Luzon, Visayas and when the beneficial use thereof has been granted,
Mindanao, who shall hold office in Manila, Cebu City and for consideration or otherwise, to a taxable person;
Cagayan de Oro City, respectively, and who shall serve for a
term of six (6) years, without reappointment until their
(b) Charitable institutions, churches, parsonages or
successors have been appointed and qualified. The Hearing
convents appurtenant thereto, mosques, non-profit
Officers shall have the same qualifications as that of the
or religious cemeteries and all lands, buildings, and
Judges of the Municipal Trial Courts.
improvements actually, directly, and exclusively used
for religious, charitable or educational purposes;
The Central Board Assessment Appeals, in the performance of
its powers and duties, may establish and organize staffs,
(c) All machineries and equipment that are actually,
offices, units, prescribe the titles, functions and duties of
directly and exclusively used by local water districts
their members and adopt its own rules and regulations.
and government owned or controlled corporations
engaged in the supply and distribution of water
Unless otherwise provided by law, the annual appropriations and/or generation and transmission of electric
for the Central Board of Assessment Appeals shall be included power;
in the budget of the Department of Finance in the
corresponding General Appropriations Act.
(d) All real property owned by duly registered
cooperatives as provided for under R.A. No. 6938;
Section 231. Effect of Appeal on the Payment of Real Property and
Tax. - Appeal on assessments of real property made under
the provisions of this Code shall, in no case, suspend the
(e) Machinery and equipment used for pollution
collection of the corresponding realty taxes on the property
control and environmental protection.
involved as assessed by the provincial or city assessor,
without prejudice to subsequent adjustment depending upon
Except as provided herein, any exemption from
the final outcome of the appeal.
payment of real property tax previously granted to,
or presently enjoyed by, all persons, whether natural
CHAPTER IV
or juridical, including all government-owned or
Imposition of Real Property Tax controlled corporations are hereby withdrawn upon
the effectivity of this Code.
Section 232. Power to Levy Real Property Tax. - A province or
city or a municipality within the Metropolitan Manila Area my
CHAPTER V
levy an annual ad valorem tax on real property such as land,
Special Levies on Real Property
building, machinery, and other improvement not hereinafter
specifically exempted.
Section 235. Additional Levy on Real Property for the Special
Education Fund. - A province or city, or a municipality within
Section 233. Rates of Levy. - A province or city or a
the Metropolitan Manila Area, may levy and collect an annual
municipality within the Metropolitan Manila Area shall fix a
tax of one percent (1%) on the assessed value of real
uniform rate of basic real property tax applicable to their
property which shall be in addition to the basic real property
respective localities as follows: tax. The proceeds thereof shall exclusively accrue to the
Special Education Fund (SEF).
Section 236. Additional Ad Valorem Tax on Idle Lands. - A benefited by public works projects or improvements funded
province or city, or a municipality within the Metropolitan by the local government unit concerned: Provided, however,
Manila Area, may levy an annual tax on idle lands at the rate That the special levy shall not exceed sixty percent (60%) of
not exceeding five percent (5%) of the assessed value of the the actual cost of such projects and improvements, including
property which shall be in addition to the basic real property the costs of acquiring land and such other real property in
tax. connection therewith: Provided, further, That the special levy
shall not apply to lands exempt from basic real property tax
Section 237. Idle Lands, Coverage. - For purposes of real and the remainder of the land portions of which have been
property taxation, idle lands shall include the following: donated to the local government unit concerned for the
construction of such projects or improvements.
(a) Agricultural lands, more than one (1) hectare in
area, suitable for cultivation, dairying, inland fishery, Section 241. Ordinance Imposing a Special Levy. - A tax
and other agricultural uses, one-half (1/2) of which ordinance imposing a special levy shall describe with
remain uncultivated or unimproved by the owner of reasonable accuracy the nature, extent, and location of the
the property or person having legal interest therein. public works projects or improvements to be undertaken,
Agricultural lands planted to permanent or perennial state the estimated cost thereof, specify the metes and
crops with at least fifty (50) trees to a hectare shall bounds by monuments and lines and the number of annual
not be considered idle lands. Lands actually used for installments for the payment of the special levy which in no
grazing purposes shall likewise not be considered case shall be less than five (5) nor more than ten (10) years.
idle lands. The sanggunian concerned shall not be obliged, in the
apportionment and computation of the special levy, to
(b) Lands, other than agricultural, located in a city or establish a uniform percentage of all lands subject to the
municipality, more than one thousand (1,000) payment of the tax for the entire district, but it may fix
square meters in area one-half (1/2) of which remain different rates for different parts or sections thereof,
unutilized or unimproved by the owner of the depending on whether such land is more or less benefited by
property or person having legal interest therein. proposed work.

Regardless of land area, this Section shall likewise apply to Section 242. Publication of Proposed Ordinance Imposing a
residential lots in subdivisions duly approved by proper Special Levy. - Before the enactment of an ordinance
authorities, the ownership of which has been transferred to imposing a special levy, the sanggunian concerned shall
individual owners, who shall be liable for the additional tax: conduct a public hearing thereon; notify in writing the
Provided, however, That individual lots of such subdivisions, owners of the real property to be affected or the persons
the ownership of which has not been transferred to the buyer having legal interest therein as to the date and place thereof
shall be considered as part of the subdivision, and shall be and afford the latter the opportunity to express their
subject to the additional tax payable by subdivision owner or positions or objections relative to the proposed ordinance.
operator.
Section 243. Fixing the Amount of Special Levy. - The special
Section 238. Idle Lands Exempt from Tax. - A province or city levy authorized herein shall be apportioned, computed, and
or a municipality within the Metropolitan Manila Area may assessed according to the assessed valuation of the lands
exempt idle lands from the additional levy by reason of force affected as shown by the books of the assessor concerned, or
majeure, civil disturbance, natural calamity or any cause or its current assessed value as fixed by said assessor if the
circumstance which physically or legally prevents the owner property does not appear of record in his books. Upon the
of the property or person having legal interest therein from effectivity of the ordinance imposing special levy, the
improving, utilizing or cultivating the same. 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
Section 239. Listing of Idle Lands by the Assessor. - The
send to each landowner a written notice thereof by mail,
provincial, city or municipal assessor shall make and keep an
updated record of all idle lands located within his area of personal service or publication in appropriate cases.
jurisdiction. For purposes of collection, the provincial, city or
municipal assessor shall furnish a copy thereof to the Section 244. Taxpayer's Remedies Against Special Levy. - Any
provincial or city treasurer who shall notify, on the basis of owner of real property affected by a special levy or any
such record, the owner of the property or person having legal person having a legal interest therein may, upon receipt of
interest therein of the imposition of the additional tax. the written notice of assessment of the special levy, avail of
the remedies provided for in Chapter 3, Title Two, Book II of
this Code.
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
Section 245. Accrual of Special Levy. - The special levy shall first (31st), except the special levy the payment of which shall
accrue on the first day of the quarter next following the be governed by ordinance of the sanggunian concerned.
effectivity of the ordinance imposing such levy.lawphil.net
The date for the payment of any other tax imposed under this
CHAPTER VI Title without interest shall be prescribed by the sanggunian
Collection of Real Property Tax concerned.

Section 246. Date of Accrual of Tax. - The real property tax for Payments of real property taxes shall first be applied to prior
any year shall accrue on the first day of January and from that years delinquencies, interests, and penalties, if any, and only
date it shall constitute a lien on the property which shall be after said delinquencies are settled may tax payments be
superior to any other lien, mortgage, or encumbrance of any credited for the current period.
kind whatsoever, and shall be extinguished only upon the
payment of the delinquent tax. Section 251. Tax Discount for Advanced Prompt Payment. - If
the basic real property tax and the additional tax accruing to
Section 247. Collection of Tax. - The collection of the real the Special Education Fund (SEF) are paid in advance in
property tax with interest thereon and related expenses, and accordance with the prescribed schedule of payment as
the enforcement of the remedies provided for in this Title or provided under Section 250, the sanggunian concerned may
any applicable laws, shall be the responsibility of the city or grant a discount not exceeding twenty percent (20%) of the
municipal treasurer concerned. annual tax due.

The city or municipal treasurer may deputize the barangay Section 252. Payment Under Protest. -
treasurer to collect all taxes on real property located in the
barangay: Provided, That the barangay treasurer is properly (a) No protest shall be entertained unless the
bonded for the purpose: Provided, further, That the premium taxpayer first pays the tax. There shall be annotated
on the bond shall be paid by the city or municipal on the tax receipts the words "paid under protest".
government concerned. The protest in writing must be filed within thirty (30)
days from payment of the tax to the provincial, city
Section 248. Assessor to Furnish Local Treasurer with treasurer or municipal treasurer, in the case of a
Assessment Roll. - The provincial, city or municipal assessor municipality within Metropolitan Manila Area, who
shall prepare and submit to the treasurer of the local shall decide the protest within sixty (60) days from
government unit, on or before the thirty-first (31st) day of receipt.
December each year, an assessment roll containing a list of all
persons whose real properties have been newly assessed or (b) The tax or a portion thereof paid under protest,
reassessed and the values of such properties. shall be held in trust by the treasurer concerned.

Section 249. Notice of Time for Collection of Tax. - The city or (c) In the event that the protest is finally decided in
municipal treasurer shall, on or before the thirty-first (31st) favor of the taxpayer, the amount or portion of the
day of January each year, in the case of the basic real tax protested shall be refunded to the protestant, or
property tax and the additional tax for the Special Education applied as tax credit against his existing or future tax
Fund (SEF) or any other date to be prescribed by the liability.
sanggunian concerned in the case of any other tax levied
under this title, post the notice of the dates when the tax may (d) In the event that the protest is denied or upon
be paid without interest at a conspicuous and publicly the lapse of the sixty day period prescribed in
accessible place at the city or municipal hall. Said notice shall subparagraph (a), the taxpayer may avail of the
likewise be published in a newspaper of general circulation in remedies as provided for in Chapter 3, Title II, Book II
the locality once a week for two (2) consecutive weeks. of this Code.

Section 250. Payment of Real Property Taxes in Installments. - Section 253. Repayment of Excessive Collections. - When an
The owner of the real property or the person having legal assessment of basic real property tax, or any other tax levied
interest therein may pay the basic real property tax and the under this Title, is found to be illegal or erroneous and the tax
additional tax for Special Education Fund (SEF) due thereon is accordingly reduced or adjusted, the taxpayer may file a
without interest in four (4) equal installments; the first written claim for refund or credit for taxes and interests with
installment to be due and payable on or before March Thirty- the provincial or city treasurer within two (2) years from the
first (31st); the second installment, on or before June Thirty date the taxpayer is entitled to such reduction or adjustment.
(30); the third installment, on or before September Thirty
(30); and the last installment on or before December Thirty-
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 constitutes a lien on the property subject to tax, superior to
may avail of the remedies as provided in Chapter 3, Title II, all liens, charges or encumbrances in favor of any person,
Book II of this Code. irrespective of the owner or possessor thereof, enforceable
by administrative or judicial action, and may only be
Section 254. Notice of Delinquency in the Payment of the Real extinguished upon payment of the tax and the related
Property Tax. - interests and expenses.

(a) When the real property tax or any other tax Section 258. Levy on Real Property. - After the expiration of
imposed under this Title becomes delinquent, the the time required to pay the basic real property tax or any
provincial, city or municipal treasurer shall other tax levied under this Title, real property subject to such
immediately cause a notice of the delinquency to be tax may be levied upon through the issuance of a warrant on
posted at the main hall and in a publicly accessible or before, or simultaneously with, the institution of the civil
and conspicuous place in each barangay of the local action for the collection of the delinquent tax. The provincial
government unit concerned. The notice of or city treasurer, or a treasurer of a municipality within the
delinquency shall also be published once a week for Metropolitan Manila Area, as the case may be, when issuing a
two (2) consecutive weeks, in a newspaper of warrant of levy shall prepare a duly authenticated certificate
general circulation in the province, city, or showing the name of the delinquent owner of the property or
municipality. person having legal interest therein, the description of the
property, the amount of the tax due and the interest thereon.
(b) Such notice shall specify the date upon which the The warrant shall operate with the force of a legal execution
tax became delinquent and shall state that personal throughout the province, city or a municipality, within the
property may be distrained to effect payment. It Metropolitan Manila Area. The warrant shall be mailed to or
shall likewise state that any time before the distraint served upon the delinquent owner of the real property or
of personal property, payment of the tax with person having legal interest therein, or in case he is out of the
surcharges, interests and penalties may be made in country or cannot be located, the administrator or occupant
accordance with the next following Section, and of the property. At the same time, written notice of the levy
unless the tax, surcharges and penalties are paid with the attached warrant shall be mailed to or served upon
before the expiration of the year for which the tax is the assessor and the Registrar of Deeds of the province, city
due except when the notice of assessment or special or municipality within the Metropolitan Manila Area where
levy is contested administratively or judicially the property is located, who shall annotate the levy on the
pursuant to the provisions of Chapter 3, Title II, Book tax declaration and certificate of title of the property,
II of this Code, the delinquent real property will be respectively.
sold at public auction, and the title to the property
will be vested in the purchaser, subject, however, to The levying officer shall submit a report on the levy to the
the right of the delinquent owner of the property or sanggunian concerned within ten (10) days after receipt of
any person having legal interest therein to redeem the warrant by the owner of the property or person having
the property within one (1) year from the date of legal interest therein.
sale.
Section 259. Penalty for Failure to Issue and Execute Warrant.
Section 255. Interests on Unpaid Real Property Tax. - In case - Without prejudice to criminal prosecution under the Revised
of failure to pay the basic real property tax or any other tax Penal Code and other applicable laws, any local treasurer or
levied under this Title upon the expiration of the periods as his deputy who fails to issue or execute the warrant of levy
provided in Section 250, or when due, as the case may be, within one (1) year from the time the tax becomes delinquent
shall subject the taxpayer to the payment of interest at the or within thirty (30) days from the date of the issuance
rate of two percent (2%) per month on the unpaid amount or thereof, or who is found guilty of abusing the exercise thereof
a fraction thereof, until the delinquent tax shall have been in an administrative or judicial proceeding shall be dismissed
fully paid: Provided, however, That in no case shall the total from the service.
interest on the unpaid tax or portion thereof exceed thirty-six
(36) months. Section 260. Advertisement and Sale. - Within thirty (30) days
after service of the warrant of levy, the local treasurer shall
Section 256. Remedies For The Collection Of Real Property proceed to publicly advertise for sale or auction the property
Tax. - For the collection of the basic real property tax and any or a usable portion thereof as may be necessary to satisfy the
other tax levied under this Title, the local government unit tax delinquency and expenses of sale. The advertisement
concerned may avail of the remedies by administrative action shall be effected by posting a notice at the main entrance of
thru levy on real property or by judicial action. the provincial, city or municipal building, and in a publicly
accessible and conspicuous place in the barangay where the
Section 257. Local Governments Lien. - The basic real real property is located, and by publication once a week for
property tax and any other tax levied under this Title two (2) weeks in a newspaper of general circulation in the
province, city or municipality where the property is located. property shall be free from lien of such delinquent tax,
The advertisement shall specify the amount of the delinquent interest due thereon and expenses of sale.
tax, the interest due thereon and expenses of sale, the date
and place of sale, the name of the owner of the real property Section 262. Final Deed to Purchaser. - In case the owner or
or person having legal interest therein, and a description of person having legal interest fails to redeem the delinquent
the property to be sold. At any time before the date fixed for property as provided herein, the local treasurer shall execute
the sale, the owner of the real property or person having a deed conveying to the purchaser said property, free from
legal interest therein may stay the proceedings by paying the lien of the delinquent tax, interest due thereon and expenses
delinquent tax, the interest due thereon and the expenses of of sale. The deed shall briefly state the proceedings upon
sale. The sale shall be held either at the main entrance of the which the validity of the sale rests.
provincial, city or municipal building, or on the property to be
sold, or at any other place as specified in the notice of the Section 263. Purchase of Property By the Local Government
sale. Units for Want of Bidder. - In case there is no bidder for the
real property advertised for sale as provided herein, the real
Within thirty (30) days after the sale, the local treasurer or his property tax and the related interest and costs of sale the
deputy shall make a report of the sale to the sanggunian local treasurer conducting the sale shall purchase the
concerned, and which shall form part of his records. The local property in behalf of the local government unit concerned to
treasurer shall likewise prepare and deliver to the purchaser a satisfy the claim and within two (2) days thereafter shall
certificate of sale which shall contain the name of the make a report of his proceedings which shall be reflected
purchaser, a description of the property sold, the amount of upon the records of his office. It shall be the duty of the
the delinquent tax, the interest due thereon, the expenses of Registrar of Deeds concerned upon registration with his office
sale and a brief description of the proceedings: Provided, of any such declaration of forfeiture to transfer the title of
however, That proceeds of the sale in excess of the the forfeited property to the local government unit
delinquent tax, the interest due thereon, and the expenses of concerned without the necessity of an order from a
sale shall be remitted to the owner of the real property or competent court.
person having legal interest therein.
Within one (1) year from the date of such forfeiture, the
The local treasurer may, by ordinance duly approved, taxpayer or any of his representative, may redeem the
advance an amount sufficient to defray the costs of collection property by paying to the local treasurer the full amount of
thru the remedies provided for in this Title, including the the real property tax and the related interest and the costs of
expenses of advertisement and sale. sale. If the property is not redeemed as provided herein, the
ownership thereof shall be vested on the local government
Section 261. Redemption of Property Sold. - Within one (1) unit concerned.
year from the date of sale, the owner of the delinquent real
property or person having legal interest therein, or his Section 264. Resale of Real Estate Taken for Taxes, Fees, or
representative, shall have the right to redeem the property Charges. - The sanggunian concerned may, by ordinance duly
upon payment to the local treasurer of the amount of the approved, and upon notice of not less than twenty (20) days,
delinquent tax, including the interest due thereon, and the sell and dispose of the real property acquired under the
expenses of sale from the date of delinquency to the date of preceding section at public auction. The proceeds of the sale
sale, plus interest of not more than two percent (2%) per shall accrue to the general fund of the local government unit
month on the purchase price from the date of sale to the concerned.
date of redemption. Such payment shall invalidate the
certificate of sale issued to the purchaser and the owner of Section 265. Further Distraint or Levy. - Levy may be repeated
the delinquent real property or person having legal interest if necessary until the full amount due, including all expenses,
therein shall be entitled to a certificate of redemption which is collected.
shall be issued by the local treasurer or his deputy.
Section 266. Collection of Real Property Tax Through the
From the date of sale until the expiration of the period of Courts. - The local government unit concerned may enforce
redemption, the delinquent real property shall remain in the collection of the basic real property tax or any other tax
possession of the owner or person having legal interest levied under this Title by civil action in any court of
therein who shall be entitled to the income and other fruits competent jurisdiction. The civil action shall be filed by the
thereof. local treasurer within the period prescribed in Section 270 of
this Code.
The local treasurer or his deputy, upon receipt from the
purchaser of the certificate of sale, shall forthwith return to Section 267. Action Assailing Validity of Tax Sale. - No court
the latter the entire amount paid by him plus interest of not shall entertain any action assailing the validity or any sale at
more than two percent (2%) per month. Thereafter, the public auction of real property or rights therein under this
Title until the taxpayer shall have deposited with the court (3) The owner of the property or the person having
the amount for which the real property was sold, together legal interest therein is out of the country or
with interest of two percent (2%) per month from the date of otherwise cannot be located.
sale to the time of the institution of the action. The amount
so deposited shall be paid to the purchaser at the auction sale CHAPTER VII
if the deed is declared invalid but it shall be returned to the Disposition of Proceeds
depositor if the action fails.
Section 271. Distribution of Proceeds. - The proceeds of the
Neither shall any court declare a sale at public auction invalid basic real property tax, including interest thereon, and
by reason or irregularities or informalities in the proceedings proceeds from the use, lease or disposition, sale or
unless the substantive rights of the delinquent owner of the redemption of property acquired at a public auction in
real property or the person having legal interest therein have accordance with the provisions of this Title by the province or
been impaired. city or a municipality within the Metropolitan Manila Area
shall be distributed as follows:
Section 268. Payment of Delinquent Taxes on Property
Subject of Controversy. - In any action involving the (a) In the case of provinces:
ownership or possession of, or succession to, real property,
the court may, motu propio or upon representation of the (1) Province - Thirty-five percent (35%) shall
provincial, city, or municipal treasurer or his deputy, award accrue to the general fund;
such ownership, possession, or succession to any party to the
action upon payment to the court of the taxes with interest
(2) Municipality - Forty percent (40%) to the
due on the property and all other costs that may have
general fund of the municipality where the
accrued, subject to the final outcome of the action.
property is located; and

Section 269. Treasurer to Certify Delinquencies Remaining

(3) Barangay - Twenty-five percent (25%)
Uncollected. - The provincial, city or municipal treasurer or
shall accrue to the barangay where the
their deputies shall prepare a certified list of all real property
property is located.
tax delinquencies which remained uncollected or unpaid for
at least one (1) year in his jurisdiction, and a statement of the
reason or reasons for such non-collection or non-payment, (b) In the case of cities:
and shall submit the same to the sanggunian concerned on or
before December thirty-first (31st) of the year immediately (1) City - Seventy percent (70%) shall accrue
succeeding the year in which the delinquencies were to the general fund of the city; and
incurred, with a request for assistance in the enforcement of
the remedies for collection provided herein. (2) Thirty percent (30%) shall be distributed
among the component barangays of the
Section 270. Periods Within Which To Collect Real Property cities where the property is located in the
Taxes. - The basic real property tax and any other tax levied following manner:
under this Title shall be collected within five (5) years from
the date they become due. No action for the collection of the (i) Fifty percent (50%) shall accrue
tax, whether administrative or judicial, shall be instituted to the barangay where the
after the expiration of such period. In case of fraud or intent property is located;
to evade payment of the tax, such action may be instituted
for the collection of the same within ten (10) years from the (ii) Fifty percent (50%) shall accrue
discovery of such fraud or intent to evade payment. equally to all component
barangays of the city; and
The period of prescription within which to collect shall be
suspended for the time during which: (c) In the case of a municipality within the
Metropolitan Manila Area:
(1) The local treasurer is legally prevented from
collecting the tax; (1) Metropolitan Manila Authority - Thirty-
five percent (35%) shall accrue to the
(2) The owner of the property or the person having general fund of the authority;
legal interest therein requests for reinvestigation
and executes a waiver in writing before the (2) Municipality - Thirty-five percent (35%
expiration of the period within which to collect; and shall accrue to the general fund of the
municipality where the property is located;
 (3) Barangays - Thirty percent (30%) shall be All expenses incident to a general revision of real property
distributed among the component assessment shall, by ordinance of the sangguniang
barangays of the municipality where the panlalawigan, be apportioned between the province and the
property is located in the following manner: municipality on the basis of the taxable area of the
municipality concerned.
(i) Fifty percent (50%) shall accrue
to the barangay where the Section 276. Condonation or Reduction of Real Property Tax
property is located; and Interest. - In case of a general failure of crops or
substantial decrease in the price of agricultural or agribased
(ii) Fifty percent (50%) shall accrue products, or calamity in any province, city or municipality, the
equally to all component sanggunian concerned, by ordinance passed prior to the first
barangays of the municipality. (1st) day of January of any year and upon recommendation of
the Local Disaster Coordinating Council, may condone or
(d) The share of each barangay shall be released, reduce, wholly or partially, the taxes and interest thereon for
without need of any further action, directly to the the succeeding year or years in the city or municipality
barangay treasurer on a quarterly basis within five affected by the calamity.
(5) days after the end of each quarter and shall not
be subject to any lien or holdback for whatever Section 277. Condonation or Reduction of Tax by the
purpose. President of the Philippines. - The President of the Philippines
may, when public interest so requires, condone or reduce the
Section 272. Application of Proceeds of the Additional One real property tax and interest for any year in any province or
Percent SEF Tax. - The proceeds from the additional one city or a municipality within the Metropolitan Manila Area.
percent (1%) tax on real property accruing to the Special
Education Fund (SEF) shall be automatically released to the Section 278. Duty of Registrar of Deeds and Notaries Public to
local school boards: Provided, That, in case of provinces, the Assist the Provincial, City or Municipal Assessor. - It shall be
proceeds shall be divided equally between the provincial and the duty of the Registrar of Deeds and notaries public to
municipal school boards: Provided, however, That the furnish the provincial, city or municipal assessor with copies
proceeds shall be allocated for the operation and of all contracts selling, transferring, or otherwise conveying,
maintenance of public schools, construction and repair of leasing, or mortgaging real property received by, or
school buildings, facilities and equipment, educational acknowledged before them.
research, purchase of books and periodicals, and sports
development as determined and approved by the Local Section 279. Insurance Companies to Furnish Information. -
School Board. Insurance companies are hereby required to furnish the
provincial, city or municipal assessor copies of any contract or
Section 273. Proceeds of the Tax on Idle Lands. - The policy insurance on buildings, structures, and improvements
proceeds of the additional real property tax on idle lands shall insured by them or such other documents which may be
accrue to the respective general fund of the province or city necessary for the proper assessment thereof.
where the land is located. In the case of a municipality within
the Metropolitan Manila Area, the proceeds shall accrue Section 280. Fees in Court Actions. - All court actions, criminal
equally to the Metropolitan Manila Authority and the or civil, instituted at the instance of the provincial, city or
municipality where the land is located. municipal treasurer or assessor under the provisions of this
Code, shall be exempt from the payment of court and
Section 274. Proceeds of the Special Levy. - The proceeds of sheriff's fees.
the special levy on lands benefited by public works, projects
and other improvements shall accrue to the general fund of Section 281. Fees in Registration of Papers or Documents on
the local government unit which financed such public works, Sale of Delinquent Real Property to Province, City or
projects or other improvements. Municipality. - All certificates, documents, and papers
covering the sale of delinquent property to the province, city
CHAPTER VIII or municipality, if registered in the Registry of Property, shall
Special Provisions be exempt from the documentary stamp tax and registration
fees.
Section 275. General Assessment Revision; Expenses Incident
Thereto. - The sanggunian of provinces, cities and Section 282. Real Property Assessment Notices or Owner's
municipalities within the Metropolitan Manila Area shall Copies of Tax Declarations to be Exempt from Postal Charges
provide the necessary appropriations to defray the expenses or Fees. - All real property assessment notices or owner's
incident to the general revision of real property assessment. copies of tax declaration sent through the mails by the
assessor shall be exempt from the payment of postal charges (c) Municipalities - Thirty-four percent (34%); and
or fees.
(d) Barangays - Twenty percent (20%)
Section 283. Sale and Forfeiture Before Effectivity of Code. -
Tax delinquencies incurred, and sales and forfeitures of Provided, however, That the share of each province, city, and
delinquent real property effected, before the effectivity of municipality shall be determined on the basis of the following
this Code shall be governed by the provisions of applicable formula:
laws then in force.
(a) Population - Fifty percent (50%);
TITLE III
SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS (b) Land Area - Twenty-five percent (25%); and
OF NATIONAL TAXES
(c) Equal sharing - Twenty-five percent (25%)
CHAPTER I
Allotment of Internal Revenue
Provided, further, That the share of each barangay with a
population of not less than one hundred (100) inhabitants
Section 284. Allotment of Internal Revenue Taxes. - Local shall not be less than Eighty thousand (P80,000.00) per
government units shall have a share in the national internal annum chargeable against the twenty percent (20%) share of
revenue taxes based on the collection of the third fiscal year the barangay from the internal revenue allotment, and the
preceding the current fiscal year as follows: balance to be allocated on the basis of the following formula:

(a) On the first year of the effectivity of this Code, (a) On the first year of the effectivity of this Code:
thirty percent (30%);
(1) Population - Forty percent (40%); and
(b) On the second year, thirty-five percent (35%);
and
(2) Equal sharing - Sixty percent (60%)

(c) On the third year and thereafter, forty percent

(b) On the second year:
(40%).
(1) Population - Fifty percent (50%); and
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 (2) Equal sharing - Fifty percent (50%)
recommendation of Secretary of Finance, Secretary of
Interior and Local Government and Secretary of Budget and (c) On the third year and thereafter:
Management, and subject to consultation with the presiding
officers of both Houses of Congress and the presidents of the (1) Population - Sixty percent (60%); and
"liga", to make the necessary adjustments in the internal
revenue allotment of local government units but in no case (2) Equal sharing - Forty percent (40%).
shall the allotment be less than thirty percent (30%) of the
collection of national internal revenue taxes of the third fiscal Provided, finally, That the financial requirements of
year preceding the current fiscal year: Provided, further, That barangays created by local government units after the
in the first year of the effectivity of this Code, the local effectivity of this Code shall be the responsibility of the local
government units shall, in addition to the thirty percent (30%) government unit concerned.
internal revenue allotment which shall include the cost of
devolved functions for essential public services, be entitled to Section 286. Automatic Release of Shares. -
receive the amount equivalent to the cost of devolved
personal services.
(a) The share of each local government unit shall be
released, without need of any further action, directly
Section 285. Allocation to Local Government Units. - The to the provincial, city, municipal or barangay
share of local government units in the internal revenue treasurer, as the case may be, on a quarterly basis
allotment shall be collected in the following manner: within five (5) days after the end of each quarter,
and which shall not be subject to any lien or
(a) Provinces - Twenty-three percent (23%); holdback that may be imposed by the national
government for whatever purpose.
(b) Cities - Twenty-three percent (23%);
 (b) Nothing in this Chapter shall be understood to government owned or controlled corporation would
diminish the share of local government units under have paid if it were not otherwise exempt.
existing laws.
Section 292. Allocation of Shares. - The share in the preceding
Section 287. Local Development Projects. - Each local Section shall be distributed in the following manner:
government unit shall appropriate in its annual budget no
less than twenty percent (20%) of its annual internal revenue (a) Where the natural resources are located in the
allotment for development projects. Copies of the province:
development plans of local government units shall be
furnished the Department of Interior and Local Government. (1) Province - Twenty percent (20%);

Section 288. Rules and Regulations. - The Secretary of (2) Component City/Municipality - Forty-
Finance, in consultation with the Secretary of Budget and five percent (45%); and
Management, shall promulgate the necessary rules and
regulations for a simplified disbursement scheme designed
(3) Barangay - Thirty-five percent (35%)
for the speedy and effective enforcement of the provisions of
this Chapter.
Provided, however, That where the natural
resources are located in two (2) or more provinces,
CHAPTER II
or in two (2) or more component cities or
Share of Local Government Units in the National Wealth municipalities or in two (2) or more barangays, their
respective shares shall be computed on the basis of:
Section 289. Share in the Proceeds from the Development and
Utilization of the National Wealth. - Local government units
(1) Population - Seventy percent (70%); and
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 (2) Land area - Thirty percent (30%)
inhabitants by way of direct benefits.
(b) Where the natural resources are located in a
Section 290. Amount of Share of Local Government Units. - highly urbanized or independent component city:
Local government units shall, in addition to the internal
revenue allotment, have a share of forty percent (40%) of the (1) City - Sixty-five percent (65%); and
gross collection derived by the national government from the
preceding fiscal year from mining taxes, royalties, forestry (2) Barangay - Thirty-five percent (35%)
and fishery charges, and such other taxes, fees, or charges,
including related surcharges, interests, or fines, and from its Provided, however, That where the natural
share in any co-production, joint venture or production resources are located in such two (2) or more cities,
sharing agreement in the utilization and development of the the allocation of shares shall be based on the
national wealth within their territorial jurisdiction. formula on population and land area as specified in
paragraph (a) of this Section.
Section 291. Share of the Local Governments from any
Government Agency or Owned or Controlled Corporation. - Section 293. Remittance of the Share of Local Government
Local government units shall have a share based on the Units. - The share of local government units from the
preceding fiscal year from the proceeds derived by any utilization and development of national wealth shall be
government agency or government-owned or controlled remitted in accordance with Section 286 of this Code:
corporation engaged in the utilization and development of Provided, however, That in the case of any government
the national wealth based on the following formula agency or government-owned or controlled corporation
whichever will produce a higher share for the local engaged in the utilization and development of the national
government unit: wealth, such share shall be directly remitted to the provincial,
city, municipal or barangay treasurer concerned within five
(a) One percent (1%) of the gross sales or receipts of (5) days after the end of each quarter.
the preceding calendar year; or
Section 294. Development and Livelihood Projects. - The
(b) Forty percent (40%) of the mining taxes, proceeds from the share of local government units pursuant
royalties, forestry and fishery charges and such other to this chapter shall be appropriated by their respective
taxes, fees or charges, including related surcharges, sanggunian to finance local government and livelihood
interests, or fines the government agency or 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 Section 298. Deferred-Payment and other Financial Schemes.
energy shall be applied solely to lower the cost of electricity - Provincial, city and municipal governments may likewise
in the local government unit where such a source of energy is acquire property, plant, machinery, equipment, and such
located. necessary accessories under a supplier's credit, deferred
payment plan, or either financial scheme.
TITLE IV
Credit Financing Section 299. Bonds and Other Long-Term Securities. - Subject
to the rules and regulations of the Central Bank and the
Section 295. Scope. - This Title shall govern the power of local Securities and Exchange Commission, provinces, cities, and
government units to create indebtedness and to enter into municipalities are hereby authorized to issue bonds,
credit and other financial transactions. debentures, securities, collaterals, notes and other
obligations to finance self-liquidating, income-producing
Section 296. General Policy. - development or livelihood projects pursuant to the priorities
established in the approved local development plan or the
public investment program. The sanggunian concerned shall,
(a) It shall be the basic policy that any local
through an ordinance approved by a majority of all its
government unit may create indebtedness, and avail
members, declare and state the terms and conditions of the
of credit facilities to finance local infrastructure and
bonds and the purpose for which the proposed indebtedness
other socio-economic development projects in
is to be incurred.
accordance with the approved local development
plan and public investment program.
Section 300. Inter-Local Government Loans, Grants, and
Subsidies. - Provinces, cities, and municipalities may, upon
(b) A local government unit may avail of credit lines
approval of the majority of all members of the sanggunian
from government or private banks and lending
concerned and in amounts not exceeding their surplus funds,
institutions for the purpose of stabilizing local
extend loans, grants, or subsidies to other local government
finances.
units under such terms and conditions as may be agreed
upon by the contracting parties.
Section 297. Loans, Credits, and Other Forms of Indebtedness
of Local Government Units. -
Local government units may, upon approval of their
respective sanggunian, jointly or severally contract loans,
(a) A local government unit may contract loans,
credits, and other forms of indebtedness for purposes
credits, and other forms of indebtedness with any
mutually beneficial to them.
government or domestic private bank and other
lending institutions to finance the construction,
Section 301. Loans from Funds Secured by the National
installation, improvement, expansion, operation, or
Government from Foreign Sources. -
maintenance of public facilities, infrastructure
facilities, housing projects, the acquisition of real
property, and the implementation of other capital (a) The President, or his duly authorized
investment projects, subject to such terms and representative, may, through any government
conditions as may be agreed upon by the local financial or other lending institution, relend to any
government unit and the lender. The proceeds from province, city, municipality, or barangay, the
such transactions shall accrue directly to the local proceeds of loans contracted with foreign financial
government unit concerned. institutions or other international funding agencies
for the purpose of financing the construction,
installation, improvement, expansion, operation, or
(b) A local government unit may likewise secure
maintenance of public utilities and facilities,
from any government bank and lending institution
infrastructure facilities, or housing projects, the
short, medium and long-term loans and advances
acquisition of real property, and the implementation
against security of real estate or other acceptable
of other capital investment projects, subject to such
assets for the establishment, development, or
terms and conditions as may be agreed upon by the
expansion of agricultural, industrial, commercial,
President and the local government unit. The
house financing projects, livelihood projects, and
proceeds from such loans shall accrue directly to the
other economic enterprises.
local government concerned.
(c) Government financial and other lending
(b) The President may likewise authorize the
institutions are hereby authorized to grant loans,
relending to local government units the proceeds of
credits, and other forms of indebtedness out of their
grants secured from foreign sources, subject to the
loanable funds to local government units for
provisions of existing laws and the applicable grant
purposes specified above.
agreements. (c) Repayment or amortization of loans
 including accrued interest thereon, may be financed city or municipality in which the project is
partly from the income of the projects or services to be implemented, a notice inviting all duly
and from the regular income of the local qualified contractors to participate in a
government unit, which must be provided for and public bidding for the projects so approved.
appropriated regularly in its annual budget until the The conduct of public bidding and award of
loan and the interest thereon shall have been fully contracts for local government projects
paid. under this Section shall be in accordance
with this Code and other applicable laws,
Section 302. Financing, Construction, Maintenance, rules and regulations.
Operation, and Management of Infrastructure Projects by the
Private Sector. - In the case of a build-operate-and-transfer
agreement, the contract shall be awarded
(a) Local government units may enter into contracts to the lowest complying bidder whose offer
with any duly prequalified individual contractor, for is deemed most advantageous to the local
the financing, construction, operation, and government and based on the present value
maintenance of any financially viable infrastructure of its proposed tolls, fees, rentals, and
facilities, under the build-operate-transfer charges over a fixed term for the facility to
agreement, subject to the applicable provisions of be constructed, operated, and maintained
Republic Act Numbered Sixty-nine hundred fifty- according to the prescribed minimum
seven (R.A. No. 6957) authorizing the financing, design and performance standards, plans,
construction, operation and maintenance of and specifications. For this purpose, the
infrastructure projects by the private sector and the winning contractor shall be automatically
rules and regulations issued thereunder and such granted by the local government unit
terms and conditions provided in this Section. concerned the franchise to operate and
maintain the facility, including the
(b) Local government units shall include in their collection of tolls, fees, rentals, and charges
respective local development plans and public in accordance with subsection (c-4) hereof.
investment programs priority projects that may be
financed, constructed, operated and maintained by In the case of a build-operate-and-transfer
the private sector under this Section. It shall be the agreement, the contract shall be awarded
duty of the local government unit concerned to to the lowest complying bidder based on
disclose to the public all projects eligible for the present value of its proposed schedule
financing under this Section, including official of amortization payments for the facility to
notification of duly registered contractors and be constructed according to the prescribed
publications in newspapers of general or local minimum design and performance
circulation and in conspicuous and accessible public standards, plans, and specifications.
places. Local projects under the build-operate-and-
transfer agreement shall be confirmed by the local (3) Any contractor who shall undertake the
development councils. prosecution of any project under this
Section shall post the required bonds to
(c) Projects implemented under this Section shall be protect the interest of the province, city, or
subject to the following terms and conditions: municipality, in such amounts as may be
fixed by the sanggunian concerned and the
(1) The provincial, city or municipal provincial, city or municipal engineer shall
engineer, as the case may be, upon formal not, as the case may be, allow any
request in writing by the local chief contractor to initiate the prosecution of
executive, shall prepare the plans and projects under this Section unless such
specifications for the proposed projects, contractor presents proof or evidence that
which shall be submitted to the sanggunian he has posted the required bond.
for approval.
(4) The contractor shall be entitled to a
(2) Upon approval by the sanggunian of the reasonable return of its investment in
project plans and specifications, the accordance with its bid proposal as
provincial, city, or municipal engineer shall, accepted by the local government unit
as the case may be, cause to be published concerned.
once every week, for two (2) consecutive
weeks in at least one (1) local newspaper In the case of a build-operate-and-transfer
which is circulated in the region, province, agreement, the repayment shall be made
 by authorizing the contractor to charge and CHAPTER I
collect reasonable tolls, fees, rentals, and General Provisions
charges for the use of the project facility
not exceeding those proposed in the bid Section 304. Scope. - This Title shall govern the conduct and
and incorporated in the contract: Provided, management of financial affairs, transactions, and operations
That the local government unit concerned of provinces, cities, municipalities, and barangays.
shall, based on reasonableness and equity,
approve the tolls, fees, rentals and charges: Section 305. Fundamental Principles. - The financial affairs,
Provided, further, That the imposition and transactions, and operations of local government units shall
collection of tolls, fees, rentals and charges be governed by the following fundamental principles:
shall be for a fixed period as proposed in
the bid and incorporated in the contract
(a) No money shall be paid out of the local treasury
which shall in no case exceed fifty (50)
except in pursuance of an appropriations ordinance
years: Provided, finally, That during the
or law;
lifetime of the contract, the contractor shall
undertake the necessary maintenance and
repair of the facility in accordance with (b) Local government funds and monies shall be
standards prescribed in the bidding spent solely for public purposes;
documents and in the contract.
(c) Local revenue is generated only from sources
expressly authorized by law or ordinance, and
In the case of a build-operate-and-transfer
agreement, the repayment shall be made collection thereof shall at all times be acknowledged
through amortization payments in properly;
accordance with the schedule proposed in
the bid and incorporated in the contract. (d) All monies officially received by a local
government officer in any capacity or on any
In case of land reclamation or construction occasion shall be accounted for as local funds, unless
of industrial estates, the repayment plan otherwise provided by law;
may consist of the grant of a portion or
percentage of the reclaimed land or the (e) Trust funds in the local treasury shall not be paid
industrial estate constructed. out except in fulfillment of the purpose for which the
trust was created or the funds received;
(5) Every infrastructure project undertaken
under this Section shall be constructed, (f) Every officer of the local government unit whose
operated, and maintained by the contractor duties permit or require the possession or custody of
under the technical supervision of the local local funds shall be properly bonded, and such
government unit and in accordance with officer shall be accountable and responsible for said
the plans, specifications, standards, and funds and for the safekeeping thereof in conformity
costs approved by it. with the provisions of law;

(d) The provincial, city, or municipal legal officer (g) Local governments shall formulate sound
shall, as the case may be, review the contracts financial plans, and local budgets shall be based on
executed pursuant to this Section to determine their functions, activities, and projects, in terms of
legality, validity, enforceability and correctness of expected results;
form.
(h) Local budget plans and goals shall, as far as
Section 303. Remedies and Sanctions. - Local government practicable, be harmonized with national
unit shall appropriate in their respective annual budgets such development plans, goals, and strategies in order to
amounts as are sufficient to pay the loans and other optimize the utilization of resources and to avoid
indebtedness incurred or redeem or retire bonds, duplication in the use of fiscal and physical
debentures, securities, notes and other obligations issued resources;
under this Title: Provided, That failure to provide the
appropriations herein required shall render their annual (i) Local budgets shall operationalize approved local
budgets inoperative. development plans;

TITLE V (j) Local government units shall ensure that their

Local Fiscal Administration respective budgets incorporate the requirements of
their component units and provide for equitable
 allocation of resources among these component (g) "Expected Results" refers to the services,
units; products, or benefits that shall accrue to the public,
estimated in terms of performance measures or
(k) National planning shall be based on local planning physical targets;
to ensure that the needs and aspirations of the
people as articulated by the local government units (h) "Fund" refers to a sum of money, or other assets
in their respective local development plans are convertible to cash, set aside for the purpose of
considered in the formulation of budgets of national carrying out specific activities or attaining certain
line agencies or offices; objectives in accordance with special regulations,
restrictions, or limitations, and constitutes as
(l) Fiscal responsibility shall be shared by all those independent fiscal and accounting entity;
exercising authority over the financial affairs,
transactions, and operations of the local government (i) "Income" refers to all revenues and receipts
units; and collected or received forming the gross accretions of
funds of the local government unit;
(m) The local government unit shall endeavor to
have a balanced budget in each fiscal year of (j) "Obligations" refers to an amount committed to
operation. be paid by the local government unit for any lawful
act made by an accountable officer for and in behalf
Section 306. Definitions. - When used in this Title, the term - of the local unit concerned;

(a) "Annual Budget" refers to a financial plan (k) "Personal Services" refers to appropriations for
embodying the estimates of income and the payment of salaries, wages and other
expenditures for one (1) fiscal year; compensation of permanent, temporary,
contractual, and casual employees of the local
(b) "Appropriation" refers to an authorization made government unit;
by ordinance, directing the payment of goods and
services from local government funds under (l) "Receipts" refers to income realized from
specified conditions or for specific purposes; operations and activities of the local government or
are received by it in the exercise of its corporate
(c) "Budget Document" refers to the instrument functions, consisting of charges for services
used by the local chief executive to present a rendered, conveniences furnished, or the price of a
comprehensive financial plan to the sanggunian commodity sold, as well as loans, contributions or
concerned; aids from other entities, except provisional advances
for budgetary purposes; and
(d) "Capital Outlays" refers to appropriations for the
purchase of goods and services, the benefits of (m) "Revenue" refers to income derived from the
which extend beyond the fiscal year and which add regular system of taxation enforced under authority
to the assets of the local government unit of law or ordinance, and, as such, accrue more or
concerned, including investments in public utilities less regularly every year.
such as public markets and slaughterhouses;
CHAPTER II
(e) "Continuing Appropriation" refers to an Local and Other Special Funds
appropriation available to support obligations for a
specified purpose or projects, such as those for the ARTICLE I
construction of physical structures or for the Receipts, Safekeeping Article and Disposition of Local Funds
acquisition of real property or equipment, even
when these obligations are incurred beyond the Section 307. Remittance of Government Monies to the Local
budget year; Treasury. - Officers of local government authorized to receive
and collect monies arising from taxes, revenues, or receipts of
(f) "Current Operating Expenditures" refers to any kind shall remit the full amount received and collected to
appropriations for the purchase of goods and the treasury of such local government unit which shall be
services for the conduct of normal local government credited to the particular account or accounts to which the
operations within the fiscal year, including goods monies in question properly belong.
and services that will be used or consumed during
the budget year; 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 (b) Loans, interests, bond issues, and other
disbursed from the local treasury. The General Fund shall contributions for specific purposes; and
consist of monies and resources of the local government
which are available for the payment of expenditures, (c) Development projects funded from the share of
obligations or purposes not specifically declared by law as the local government unit concerned in the internal
accruing and chargeable to, or payable from, any other fund. revenue allotment and such other special accounts
which may be created by law or ordinance.
Section 309. Special Funds. - There shall be maintained in
every provincial, city, or municipal treasury the following Receipts, transfers, and expenditures involving the foregoing
special funds: special accounts shall be properly taken up thereunder.

(a) Special Education Fund (SEF) shall consist of the Profits or income derived the operation of public utilities and
respective shares of provinces, cities, municipalities other economic enterprises, after deduction for the cost of
and barangays in the proceeds of the additional tax improvement, repair and other related expenses of the public
on real property to be appropriated for purposes utility or economic enterprise concerned, shall first be
prescribed in Section 272 of this Code; and applied for the return of the advances or loans made
therefor. Any excess shall form part of the general fund of the
(b) Trust Funds shall consist of private and public local government unit concerned.
monies which have officially come into the
possession of the local government or of a local CHAPTER III
government official as trustee, agent or Budgeting
administrator, or which have been received as a
guaranty for the fulfillment of some obligation. A ARTICLE I
trust fund shall only be used for the specific purpose Local Government Budgets
for which it was created or for which it came into the
possession of the local government unit.
Section 314. Form and Content. -

Section 310. Separation of Books and Depository Accounts. -

(a) Local government budgets shall primarily consists
Local accountants and treasurers shall maintain separate
of two (2) parts:
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. (1) The estimates of income; and

Section 311. Depository Accounts. - Local treasurers shall (2) The total appropriations covering the
current operating expenditures and capital
maintain depository accounts in the name of their respective
local government units with banks, preferably government- outlays.
owned, located in or nearest to their respective areas of
jurisdiction. Earnings of each depository account shall accrue (b) The budget document shall contain:
exclusively thereto.
(1) A budget message of the local chief
Section 312. Separation of Personal Money from Public executive setting forth in brief the
Funds. - Local treasurers and other accountable officers shall significance of the executive budget,
keep monies separate and distinct from local public funds in particularly in relation to the approved local
their custody and shall not make profit out of public money development plan;
or otherwise apply the same to any use not authorized by law
or ordinance. (2) A brief summary of the functions,
projects, and activities to be accomplished
ARTICLE II in pursuit of the goals and objectives of the
Special Accounts local government unit for the ensuing fiscal
year, specifically the delivery of basic
services or facilities enumerated under
Section 313. Special Accounts to be Maintained in the General
Fund. - Local government units shall maintain special Section 17 of this Code;
accounts in the general fund for the following:
(3) Summary of financial statements setting
forth:
(a) Public utilities and other economic enterprises;
 (i) The actual income and (b) Recommend the appropriate tax and other
expenditures during the revenue measures or borrowings which may be
immediately preceding year; appropriate to support the budget;

(ii) The actual income and (c) Recommend to the local chief executive
expenditures of the first two (2) concerned the level of the annual expenditures and
quarters and the estimates of the ceilings of spending for economic, social, and
income and expenditures for the general services based on the approved local
last two (2) quarters of the current development plans;
fiscal year;
(d) Recommend to the local chief executive
(iii) The estimates of income for concerned the proper allocation of expenditures for
the ensuing fiscal year from each development activity between current
ordinances and laws existing at the operating expenditures and capital outlays;
time the proposed budget is
transmitted, together with other (e) Recommend to the local chief executive
proposals; concerned the amount to be allocated for capital
outlay under each development activity or
(iv) The estimated expenditures infrastructure project;
necessary to carry out the
functions, projects, and activities (f) Assist the sangguniang panlalawigan in the review
of the local government unit for and evaluation of budget of component cities and
the ensuing fiscal year; municipalities in the case of provincial finance
committee, the barangay budgets in the case of city
(v) All essential facts regarding the or municipal finance committee, and recommend
bonded and other long-term the appropriate action thereon;
obligations and indebtedness of
the local government unit, if any; (g) Assist the sanggunian concerned in the analysis
and review of annual regular and supplemental
(vi) Summary statement of all budgets of the respective local government unit to
statutory and contractual determine compliance with statutory and
obligations due; and administrative requirements; and

(vii) Such other financial (h) Conduct semi-annual review and general
statements and data as are examination of cost and accomplishments against
deemed necessary or desirable in performance standards applied in undertaking
order to disclose in all practicable development projects.
detail the financial condition of the
local government unit. A copy of this report shall be furnished the local chief
executive and the sanggunian concerned, and shall be posted
Section 315. Submission of Detailed Statements of Income in conspicuous and publicly accessible places in the provinces,
and Expenditures. - (a) On or before the fifteenth (15th) day cities, municipalities and barangays.
of July of each year, local treasurers shall submit to their
respective local chief executives a certified statement, Section 317. Submission of Budget Proposals by Heads or
covering the income and expenditures of the preceding fiscal Departments or Offices. -
year, the actual income and expenditures of the first two (2)
quarters of the current year, and the estimated income and (a) Each head of department or office shall submit a
expenditures for the last two (2) quarters of the current year. budget proposal for his department or office to the
local chief executive on or before the fifteenth (15th)
Section 316. Local Finance Committee. - There is hereby of July of each year: Provided, That the budget
created in every province, city or municipality a local finance proposal of each department of office shall be
committee to be composed of the local planning and categorized under either economic, social or general
development officer, the local budget officer, and the local services: Provided, further, That each service shall be
treasurer. It shall exercise the following functions: covered by the budget of at least one (1)
department or office of the local government unit
(a) Determine the income reasonably projected as concerned.
collectible for the ensuing fiscal year;
 The said budget proposal shall be prepared in executive budget for the ensuing fiscal year in accordance
accordance with such policy and program guidelines with the provisions of this Title.
as the local chief executive concerned may issue in
conformity with the local development plan, the The local chief executive shall submit the said executive
budgetary ceilings prescribed by the local finance budget to the sanggunian concerned not later than the
committee, and the general requirements prescribed sixteenth (16th) of October of the current fiscal year. Failure
in this Title. to submit such budget on the date prescribed herein shall
subject the local chief executive to such criminal and
(b) Budget proposals of departments or offices shall administrative penalties as provided for under this Code and
be divided into two (2) primary categories, namely: other applicable laws.
the current operating expenditures and the capital
outlays. Such budget proposals shall contain the Section 319. Legislative Authorization of the Budget. - On or
following information: before the end of the current fiscal year, the sanggunian
concerned shall, through an ordinance, the annual budget of
(1) Objectives, functions, and projects the local government unit for the ensuing fiscal year on the
showing the general character and relative basis of the estimates of income and expenditures submitted
importance of the work to be accomplished by the local chief executive.
or the services to be rendered, and the cost
thereof; Section 320. Effectivity of Budgets. - The ordinance enacting
the annual budget shall take effect at the beginning of the
(2) Organizational charts and staffing ensuing calendar year. An ordinance enacting a supplemental
patterns indicating the list of plantilla budget, however, shall take effect upon its approval or on the
positions with their corresponding salaries, date fixed therein.
and proposals for reclassification of
positions and salary changes, as well as the The responsibility for the execution of the annual and
creation of new positions with their supplemental budgets and the accountability therefor shall
proposed salary grade, duly supported by be vested primarily in the local chief executive concerned.
proper justification;
Section 321. Changes in the Annual Budget. - All budgetary
(3) Brief description of the functions, proposals shall be included and considered in the budget
projects and activities for the ensuing fiscal preparation process. After the local chief executive
year, expected results for each function, concerned shall have submitted the executive budget to the
project and activity, and the nature of work sanggunian, no ordinance providing for a supplemental
to be performed, including the objects of budget shall be enacted, except when supported by funds
expenditures for each function, project and actually available as certified by the local treasurer or by new
activity; revenue sources.

(4) Relation of the work and financial A supplemental budget may also be enacted in times of
proposals to approved local development public calamity by way of budgetary realignment to set aside
plans; appropriations for the purchase of supplies and materials or
the payment of services which are exceptionally urgent or
(5) Estimated current operating absolutely indispensable to prevent imminent danger to, or
expenditures and capital outlays with loss of, life or property, in the jurisdiction of the local
comparative data for the last two (2) government unit or in other areas declared by the President
preceding, current, and ensuing fiscal years; in a state of calamity. Such ordinance shall clearly indicate the
and sources of funds available for appropriations, as certified
under oath by the local treasurer and local accountant and
(6) Accomplishment reports for the last two attested by the local chief executive, and the various items of
(2) preceding and current fiscal years. appropriations affected and the reasons for the change.

Section 318. Preparation of the Budget by the Local Chief Section 322. Reversion of Unexpended Balances of
Executive. - Upon receipt of the statements of income and Appropriations, Continuing Appropriations. - Unexpended
expenditures from the treasurer, the budget proposals of the balances of appropriations authorized in the annual
heads of departments and offices, and the estimates of appropriations ordinance shall revert to the unappropriated
income and budgetary ceilings from the local finance surplus of the general fund at the end of the fiscal year and
committee, the local chief executive shall prepare the shall not thereafter be available for the expenditure except
by subsequent enactment. However, appropriations for
capital outlays shall continue and remain valid until fully concerned: Provided, however, That the amount of
spent, reverted or the project is completed. Reversions of appropriations for debt servicing shall not exceed
continuing appropriations shall not be allowed unless twenty percent (20%) of the regular income of the
obligations therefor have been fully paid or otherwise settled. local government unit concerned;

The balances of continuing appropriations shall be reviewed (c) In the case of provinces, cities, and municipalities,
as part of the annual budget preparation and the sanggunian aid to component barangays shall be provided in
concerned may approve, upon recommendation of the local amounts of not less than One thousand pesos
chief executive, the reversion of funds no longer needed in (P1,000.00) per barangay; and
connection with the activities funded by said continuing
appropriations subject to the provisions of this Section. (d) Five percent (5%) of the estimated revenue from
regular sources shall be set aside as an annual lump
Section 323. Failure to Enact the Annual Appropriations. - In sum appropriation for unforeseen expenditures
case the sanggunian concerned fails to pass the ordinance arising from the occurrence of calamities: Provided,
authorizing the annual appropriations at the beginning of the however, That such appropriation shall be used only
ensuing fiscal year, it shall continue to hold sessions, without in the area, or a portion thereof, of the local
additional remuneration for its members, until such government unit or other areas declared by the
ordinance is approved, and no other business may be taken President in a state of calamity.
up during such sessions. If the sanggunian still fails to enact
such ordinance after ninety (90) days from the beginning of Section 325. General Limitations. - The use of the provincial,
the fiscal year, the ordinance authorizing the appropriations city, and municipal funds shall be subject to the following
of the preceding year shall be deemed reenacted and shall limitations:
remain in force and effect until the ordinance authorizing the
proposed appropriations is passed by the sanggunian (a) The total appropriations, whether annual or
concerned. However, only the annual appropriations for supplemental, for personal services of a local
salaries and wages of existing positions, statutory and government unit for one (1) fiscal year shall not
contractual obligations, and essential operating expenses exceed forty-five percent (45%) in the case of first to
authorized in the annual and supplemental budgets for the third class provinces, cities and municipalities, and
preceding year shall be deemed reenacted and disbursement fifty-five percent (55%) in the case of fourth class or
of funds shall be in accordance therewith. lower, of the total annual income from regular
sources realized in the next preceding fiscal year.
In the implementation of such reenacted ordinance, the local The appropriations for salaries, wages,
treasurer concerned shall exclude from the estimates of representation and transportation allowances of
income for the preceding fiscal year those realized from officials and employees of the public utilities and
nonrecurring sources, like national aids, proceeds from loans, economic enterprises owned, operated, and
sale of assets, prior year adjustments, and other analogous maintained by the local government unit concerned
sources of income. No ordinance authorizing supplemental shall not be included in the annual budget or in the
appropriations shall be passed in place of the annual computation of the maximum amount for personal
appropriations. services. The appropriations for the personal
services of such economic enterprises shall be
In case the revised income estimates be less than the charged to their respective budgets;
aggregate reenacted appropriations, the local treasurer
concerned shall accordingly advise the sanggunian concerned (b) No official or employee shall be entitled to a
which shall, within ten (10) days from the receipt of such salary rate higher than the maximum fixed for his
advice, make the necessary adjustments or reductions. The position or other positions of equivalent rank by
revised appropriations authorized by the sanggunian applicable laws or rules and regulations issued
concerned shall then be the basis for disbursements. thereunder;

Section 324. Budgetary Requirements. - The budgets of local (c) No local fund shall be appropriated to increase or
government units for any fiscal year shall comply with the adjust salaries or wages of officials and employees of
following requirements: the national government, except as may be expressly
authorized by law;
(a) The aggregate amount appropriated shall not
exceed the estimates of income; (d) In cases of abolition of positions and the creation
of new ones resulting from the abolition of existing
(b) Full provision shall be made for all statutory and positions in the career service, such abolition or
contractual obligations of the local government unit creation shall be made in accordance with pertinent
 provisions of this code and the civil service law, rules hereinabove prescribed declare such ordinance inoperative in
and regulations; its entirety or in part. Items of appropriation contrary to
limitations prescribed in this Title or in excess of the amounts
(e) Positions in the official plantilla for career prescribed herein shall be disallowed or reduced accordingly.
positions which are occupied by incumbents holding
permanent appointments shall be covered by The sangguniang panlalawigan shall within the same period
adequate appropriations; advise the sangguniang panlungsod or sangguniang bayan
concerned through the local chief executive of any action on
(f) No changes in designation or nomenclature of the ordinance under review. Upon receipt of such advice, the
positions resulting in a promotion or demotion in city or municipal treasurer concerned shall not make further
rank or increase or decrease in compensation shall disbursements of funds from any of the items of
be allowed, except when the position is actually appropriation declared inoperative, disallowed or reduced.
vacant, and the filling of such positions shall be
strictly made in accordance with the civil service law, Section 328. Duration of Appropriation. - Appropriations for
rules and regulations; ordinary administrative purposes not duly obligated shall
terminate with the fiscal year and all unexpended balances
(g) The creation of new positions and salary thereof shall be automatically reverted on the thirty-first
increases or adjustments shall in no case be made (31st) day of December of each year to the general fund of
retroactive; the local government unit.

(h) The annual appropriations for discretionary ARTICLE II

purposes of the local chief executive shall not Barangay Budgets
exceed two percent (2%) of the actual receipts
derived from basic real property tax in the next Section 329. Barangay Funds. - Unless otherwise provided in
preceding calendar year. Discretionary funds shall be this Title, all the income of the barangay from whatever
disbursed only for public purposes to be supported source shall accrue to its general fund and shall, at the option
by appropriate vouchers and subject to such of the barangay concerned, be kept as trust fund in the
guidelines as may be prescribed by law. No amount custody of the city or municipal treasurer or be deposited in a
shall be appropriated for the same purpose except bank, preferably government-owned, situated in or nearest
as authorized under this Section. to its area of jurisdiction. Such funds shall be disbursed in
accordance with the provisions of this Title. Ten percent
Section 326. Review of Appropriation Ordinances of (10%) of the general fund of the barangay shall be set aside
Provinces, Highly-Urbanized Cities, Independent Component for the sangguniang kabataan.
Cities, and Municipalities within the Metropolitan Manila
Area. - The Department of Budget and Management shall Section 330. Submission of Detailed Statements of Income
review ordinances authorizing the annual or supplemental and Expenditures for the Barangay Budgets. - On or before
appropriations of provinces, highly-urbanized cities, the fifteenth (15th) day of September of each year, the
independent component cities, and municipalities within the barangay treasurer shall submit to the punong barangay a
Metropolitan Manila Area in accordance with the statement covering the estimates of income and
immediately succeeding Section. expenditures for the ensuing fiscal year, based on a certified
statement issued by the city or municipal treasurer covering
Section 327. Review of Appropriation Ordinances of the estimates of income from local sources for the barangay
Component Cities and Municipalities. - The sangguniang concerned.
panlalawigan shall review the ordinance authorizing annual
or supplemental appropriations of component cities and Section 331. Preparation of the Barangay Budget. -
municipalities in the same manner and within the same
period prescribed for the review of other ordinances. (a) Upon receipt of the statement of income and
expenditures from the barangay treasurer, the
If within ninety (90) days from receipt of copies of such punong barangay shall prepare the barangay budget
ordinance, the sangguniang panlalawigan takes no action for the ensuing fiscal year in the manner and within
thereon, the same shall be deemed to have been reviewed in the period prescribed in this Title and submit the
accordance with law and shall continue to be in full force and annual barangay budget to the sangguniang
effect. If within the same period, the sangguniang barangay for legislative enactment.
panlalawigan shall have ascertained that the ordinance
authorizing annual or supplemental appropriations has not (b) The total annual appropriations for personal
complied with the requirements set forth in this Title, the services of a barangay for one (1) fiscal year shall not
sangguniang panlalawigan shall, within the ninety-day period exceed fifty-five percent (55%) of the total annual
 income actually realized from local sources during Section 334. Barangay Financial Procedures. -
the next preceding fiscal year.
(a) The barangay treasurer shall collect all taxes,
(c) The barangay budget shall likewise be subject to fees, and other charges due and contributions
the same budgetary requirements and limitations accruing to the barangay for which he shall issue
hereinabove prescribed. official receipts, and shall deposit all collections with
the city or municipal treasury or in the depository
Section 332. Effectivity of Barangay Budgets. - The ordinance account maintained in the name of the barangay
enacting the annual budget shall take effect at the beginning within five (5) days after receipt thereof. He may
of the ensuing calendar year. An ordinance enacting a collect real property taxes and such other taxes as
supplemental budget, however, shall take effect upon its may be imposed by a province, city or municipality
approval or on the date fixed therein. that are due in his barangay only after being
deputized by the local treasurer concerned for the
The responsibility for the execution of the annual and purpose.
supplemental budgets and the accountability therefor shall
be vested primarily in the punong barangay concerned. (b) The barangay treasurer may be authorized by the
sangguniang barangay to make direct purchases
Section 333. Review of the Barangay Budget. - 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
(a) Within ten (10) days from its approval, copies of
the barangay treasurer may be authorized to hold
the barangay ordinance authorizing the annual
for the purpose shall not exceed twenty percent
appropriations shall be furnished the sangguniang
(20%) of the funds available and to the credit of the
panlungsod or the sangguniang bayan, as the case
barangay treasury.
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 (c) The financial records of the barangay shall be
provisions of this Title are complied with. If within kept in the office of the city or municipal accountant
sixty (60) days after the receipt of the ordinance, the in simplified manner as prescribed by the
sanggunian concerned takes no action thereon, the Commission on Audit. Representatives of the
same shall continue to be in full force and effect. If Commission on Audit shall audit such accounts
within the same period, the sanggunian concerned annually or as often as may be necessary and make a
shall have ascertained that the ordinance contains report of the audit to the sangguniang panlungsod or
appropriations in excess of the estimates of the sangguniang bayan, as the case may be. The
income duly certified as collectible, or that the same Commission on Audit shall prescribe and put into
has not complied with the budgetary requirements effect simplified procedures for barangay finances
set forth in this Title, the said ordinance shall be within six (6) months following the effectivity of this
declared inoperative in its entirety or in part. Items Code.
of appropriation contrary to, or in excess of, any of
the general limitations or the maximum amount CHAPTER IV
prescribed in this Title shall be disallowed or reduced Expenditures, Disbursements, Accounting and
accordingly. Accountability

(b) Within the period hereinabove fixed, the Section 335. Prohibitions Against Expenditures for Religious
sangguniang panlungsod or sangguniang bayan or Private Purposes. - No public money or property shall be
concerned shall return the barangay ordinance, appropriated or applied for religious or private purposes.
through the city or municipal budget officer, to the
punong barangay with the advice of action thereon Section 336. Use of Appropriated Funds and Savings. - Funds
for proper adjustments, in which event, the shall be available exclusively for the specific purpose for
barangay shall operate on the ordinance authorizing which they have been appropriated. No ordinance shall be
annual appropriations of the preceding fiscal year passed authorizing any transfer of appropriations from one
until such time that the new ordinance authorizing item to another. However, the local chief executive or the
annual appropriations shall have met the objections presiding officer of the sanggunian concerned may, by
raised. Upon receipt of such advice, the barangay ordinance, be authorized to augment any item in the
treasurer or the city or municipal treasurer who has approved annual budget for their respective offices from
custody of the funds shall not make further savings in other items within the same expense class of their
disbursement from any item of appropriation respective appropriations.
declared inoperative, disallowed, or reduced.
Section 337. Restriction Upon Limit of Disbursements. - appointive, or upon participation of other department heads
Disbursements in accordance with appropriations in the or officers of equivalent rank. The superior officer directing,
approved annual budget may be made from any local fund in or the department head participating in such illegal or
the custody of the treasurer, but the total disbursements improper use or application or deposit of government funds
from any local fund shall in no case exceed fifty percent (50%) or property, shall be jointly and severally liable with the local
of the uncollected estimated revenue accruing to such local treasurer, accountant, budget officer, or other accountable
fund in addition to the actual collections: Provided, however, officer for the sum or property so illegally or improperly used,
That no cash overdraft in any local fund shall be incurred at applied or deposited.
the end of the fiscal year.
Section 343. Prohibition Against Expenses for Reception and
In case of emergency arising from a typhoon, earthquake, or Entertainment. - No money shall be appropriated, used, or
any other calamity, the sanggunian concerned may authorize paid for entertainment or reception except to the extent of
the local treasurer to continue making disbursements from the representation allowances authorized by law or for the
any local fund in his possession in excess of the limitations reception of visiting dignitaries of foreign governments or
herein provided, but only for such purposes and amounts foreign missions, or when expressly authorized by the
included in the approved annual budgets. President in specific cases.

Any overdraft which may be incurred at the end of the year in Section 344. Certification, and Approval of, Vouchers. - No
any local fund by virtue of the provisions hereof shall be money shall be disbursed unless the local budget officer
covered with the first collections of the immediately certifies to the existence of appropriation that has been
succeeding fiscal year accruing to such local fund. legally made for the purpose, the local accountant has
obligated said appropriation, and the local treasurer certifies
Section 338. Prohibitions Against Advance Payments. - No to the availability of funds for the purpose. Vouchers and
money shall be paid on account of any contract under which payrolls shall be certified to and approved by the head of the
no services have been rendered or goods delivered. department or office who has administrative control of the
fund concerned, as to validity, propriety, and legality of the
Section 339. Cash Advances. - No cash advance shall be claim involved. Except in cases of disbursements involving
granted to any local official or employee, elective or regularly recurring administrative expenses such as payrolls
appointive, unless made in accordance with the rules and for regular or permanent employees, expenses for light,
regulations as the Commission on Audit may prescribe. 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
Section 340. Persons Accountable for Local Government
others, approval of the disbursement voucher by the local
Funds. - Any officer of the local government unit whose duty
chief executive himself shall be required whenever local
permits or requires the possession or custody of local
funds are disbursed.
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 In cases of special or trust funds, disbursements shall be
the nature of their duties, may likewise be similarly held approved by the administrator of the fund.
accountable and responsible for local government funds
through their participation in the use or application thereof. In case of temporary absence or incapacity of the department
head or chief of office, the officer next-in-rank shall
Section 341. Prohibitions Against Pecuniary Interest. - automatically perform his function and he shall be fully
Without prejudice to criminal prosecution under applicable responsible therefor.
laws, any local treasurer, accountant, budget officer, or other
accountable local officer having any pecuniary interest, direct Section 345. Officials Authorized to Draw Checks in
or indirect, in any contract, work or other business of the Settlement of Obligations. - Checks in obligations shall be
local government unit of which he is an accountable officer drawn by the local treasurer and countersigned by the local
shall be administratively liable therefor. administrator.

Section 342. Liability for Acts Done Upon Direction of Superior In case of temporary absence or incapacity of the foregoing
Officer, or Upon Participation of Other Department Heads or officials, these duties shall devolve upon their immediate
Officers of Equivalent Rank. - Unless he registers his objection assistants.
in writing, the local treasurer, accountant, budget officer, or
other accountable officer shall not be relieved of liability for Section 346. Disbursements of Local Funds and Statement of
illegal or improper use or application or deposit of Accounts. - Disbursements shall be made in accordance with
government funds or property by reason of his having acted the ordinance authorizing the annual or supplemental
upon the direction of a superior officer, elective or appropriations without the prior approval of the sanggunian
concerned. Within thirty (30) days after the close of each Section 351. General Liability for Unlawful Expenditures. -
month, the local accountant shall furnish the sanggunian with Expenditures of funds or use of property in violation of this
such financial statements as may be prescribed by the Title and other laws shall be a personal liability of the official
Commission on Audit. In the case of the year-end statement or employee responsible therefor.
of accounts, the period shall be sixty (60) days after the
thirty-first (31st) of December. Section 352. Posting of the Summary of Income and
Expenditures. - Local treasurers, accountants, budget officers,
Section 347. Rendition of Accounts. - Local treasurers, and other accountable officers shall, within thirty (30) days
accountants and other local accountable officers shall render from the end of the fiscal year, post in at least three (3)
their accounts within such time, in such form, style, and publicly accessible and conspicuous places in the local
content and under such regulations as the Commission on government unit a summary of all revenues collected and
Audit may prescribe. funds received including the appropriations and
disbursements of such funds during the preceding fiscal year.
Provincial, city, and municipal auditors shall certify the
balances arising in the accounts settled by them to the Section 353. The Official Fiscal Year. - The official fiscal year
Chairman of the Commission on Audit and to the local of local government units shall be the period beginning with
treasurer, accountant, and other accountable officers. Copies the first day of January and ending with the thirty-first day of
of the certification shall be prepared and furnished other December of the same year.
local officers who may be held jointly and severally liable for
any loss or illegal, improper or unauthorized use or Section 354. Administrative Issuances; Budget Operations
misappropriation of local funds or property. Manual. - The Secretary of Budget and Management jointly
with the Chairman of the Commission on Audit shall, within
Section 348. Auditorial Visitation. - The books, accounts, one (1) year from the effectivity of this Code, promulgate a
papers, and cash of local treasurer, accountant, budget Budget Operations Manual for local government units to
officer, or other accountable officers shall at all times be improve and systematize methods, techniques, and
open for inspection of the Commission on Audit or its duly procedures employed in budget preparation, authorization,
authorized representative. execution, and accountability.

In case an examination of the accounts of a local treasurer TITLE VI

discloses a shortage in cash which should be on hand, it shall Property and Supply Management in the Local Government
be the duty of the examining officer to seize the office and its Units
contents, notify the Commission on Audit, the local chief
executive concerned, and the local accountant. Thereupon, Section 355. Scope. - This Title shall govern the procurement,
the examining officer shall immediately turn over to the care, utilization, custody, and disposal of supplies, as defined
accountable officer next-in-rank in the local treasury service, herein, by local government units and the other aspects of
unless the said officer is likewise under investigation, the supply management at the local levels.
office of the treasurer and its contents, and close and render
his accounts on the date of turnover. In case the accountable Section 356. General Rule in Procurement or Disposal. -
officer next in rank is under investigation, the auditor shall Except as otherwise provided herein, acquisition of supplies
take full possession of the office and its contents, close and by local government units shall be through competitive public
render his accounts on the date of taking possession, and bidding. Supplies which have become unserviceable or no
temporarily continue the public business of such office until longer needed shall be sold, whenever applicable, at public
such time that the local treasurer is restored or a successor auction, subject to applicable rules and regulations.
has been duly designated. The local treasurer or accountable
officer found with such shortage shall be automatically
Section 357. Definition of Terms. - When used in this Title, the
suspended from office.
term

Section 349. Accounting for Revenues. - Estimated revenues

(a) "Lowest Complying and Responsible Bid" refers
which remain unrealized at the close of the fiscal year shall
to the proposal of one who offers the lowest price,
not be booked or credited to the unappropriated surplus or
meets all the technical specifications and
any other account.
requirements of the supplies desired and, as a dealer
in the line of supplies involved, maintains a regular
Section 350. Accounting for Obligations. - All lawful establishment, and has complied consistently with
expenditures and obligations incurred during a fiscal year previous commitments;
shall be taken up in the accounts of that year.
(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, Section 362. Call for Bids. - When procurement is to be made
type, or make of article originally desired or by local government units, the provincial or city general
requisitioned; services officer or the municipal or barangay treasurer shall
call bids for open public competition. The call for bids shall
(c) "Supplies" includes everything, except real show the complete specifications and technical descriptions
property, which may be needed in the transaction of of the required supplies and shall embody all terms and
public business or in the pursuit of any undertaking, conditions of participation and award, terms of delivery and
project, or activity, whether in the nature of payment, and all other covenants affecting the transaction. In
equipment, furniture, stationary materials for all calls for bids, the right to waive any defect in the tender as
construction or personal property of any sort, well as the right to accept the bid most advantageous to the
including non-personal or contractual services such government shall be reserved. In no case, however, shall
as the repair and maintenance of equipment and failure to meet the specifications or technical requirements of
furniture, as well as trucking, hauling, janitorial, the supplies desired be awarded.
security, and related services; and
Section 363. Publication of Call for Bids. - The call for bids
(d) "Terms and Conditions" refer to other shall be given the widest publicity possible, sending, by mail
requirements not affecting the technical or otherwise, any known prospective participant in the
specifications and requirements of the required locality, of copies of the call and by posting copies of the
supplies desired such as bonding, terms of delivery same in at least three (3) publicly accessible and conspicuous
and payment, and related preferences. places in the provincial capitol or city, municipal, or barangay
hall, as the case may be.
Section 358. Requirement of Requisition. - Any order for
supplies shall be filled by the provincial or city general The notice of the bidding may likewise be published in a
services officer or the municipal or barangay treasurer newspaper of general circulation in the territorial jurisdiction
concerned, as the case may be, for any office or department of the local government unit concerned when the provincial
of a local government unit only upon written requisition as or city general services officer or the municipal or barangay
hereinafter provided. treasurer, as the case may be, deems it necessary in order to
obtain the lowest responsible and complying bid.
Section 359. Officers Having Authority to Draw Requisitions. -
Requisitions shall be prepared by the head of office or The opening of bids shall only be made in the presence of the
department needing the supplies, who shall certify as to their provincial or city auditor or his duly authorized representative
necessity for official use and specify the project or activity who shall initial and secure copies of the bids and certify the
where the supplies are to be used. abstract of the bidding.

Section 360. Certification by the Local Budget Officer, Section 364. The Committee on Awards. - There shall be in
Accountant, and Treasurer. - Every requisition must be every province, city or municipality a committee on awards to
accompanied by a certificate signed by the local budget decide the winning bids and questions of awards on
officer, the local accountant, and the local treasurer showing procurement and disposal of property.
that an appropriation therefor exists, the estimated amount
of such expenditure has been obligated, and the funds are The Committee on Awards shall be composed of the local
available for the purpose, respectively. chief executive as chairman, the local treasurer, the local
accountant, the local budget officer, the local general services
Section 361. Approval of Requisitions. - Approval of the officer, and the head of office or department for whose use
requisition by the head of office or department concerned the supplies are being procured, as members. In case a head
who has administrative control of the appropriation against of office or department would sit in a dual capacity, a
which the proposed expenditure is chargeable is deemed member of the sanggunian elected from among its members
sufficient, except in case of requisition for supplies to be shall sit as a member. The committee on awards at the
carried in stock which shall be approved by the local chief barangay level shall be the sangguniang barangay. No
executive concerned: Provided, That such supplies are listed national official shall sit as a member of the committee on
or included in the annual procurement plan and the awards.
maximum quantity thereof does not exceed the estimated
consumption corresponding to a programmed three-month The results of the bidding shall be made public by
period: Provided, further, That nothing herein contained shall conspicuously posting the same in the provincial capitol or
be held as authorizing the purchase of furniture and city, municipal, or barangay hall.
equipment for stock purposes.
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 absolutely indispensable and only to prevent imminent
the contract or undertaking. danger to, or loss of, life or property, local government units
may, through the local chief executive concerned, make
Section 366. Procurement Without Public Bidding. - emergency purchases or place repair orders, regardless of
Procurement of supplies may be made without the benefit of amount, without public bidding. Delivery of purchase orders
public bidding under any of the following modes: or utilization of repair orders pursuant to this Section shall be
made within ten (10) days after placement of the same.
(a) Personal canvass of responsible merchants; 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
(b) Emergency purchase;
requisition to cover the same which shall contain the
following:
(c) Negotiated purchase;
(a) A complete description of the supplies acquired
(d) Direct purchase from manufacturers or exclusive
or the work done or to be performed;
distributors; and
(b) By whom furnished or executed;
(e) Purchase from other government entities.
(c) Date of placing the order and the date and time
Section 367. Procurement through Personal Canvass. - Upon
of delivery or execution;
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 (d) The unit price and the total contract price;
of three (3) composed of the local services officer or the
municipal or barangay treasurer, as the case may be, the local (e) A brief and concise explanation of the
accountant, and the head of office or department for whose circumstances why procurement was of such
use the supplies are being procured. The award shall be urgency that the same could not be done through
decided by the Committee on Awards. the regular course without involving danger to, or
loss of, life or property;
Purchases under this Section shall not exceed the amounts
specified hereunder for all items in any one (1) month for (f) A certification of the provincial or city general
each local government unit: 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
Provinces and Cities and Municipalities within the
procurement; and
Metropolitan Manila Area:

(g) A certification of the local budget officer as to the

First and Second Class - One hundred fifty thousand
existence of appropriations for the purpose, the
pesos (P150,000.00)
local accountant as to the obligation of the amount
involved, and the local treasurer as to the availability
Third and Fourth Class - One hundred thousand
of funds. The goods or services procured under this
pesos (P100,000.00) Section must be utilized or availed of within fifteen
(15) days from the date of delivery or availability.
Fifth and Sixth Class - Fifty thousand pesos
(P50,000.00) Without prejudice to criminal prosecution under applicable
laws, the local chief executive, the head of department, or
Municipalities: the chief of office making the procurement shall be
administratively liable for any violation of this Section and
First Class - Sixty thousand pesos (P60,000.00) shall be a ground for suspension or dismissal from service.

Second and Third Class - Forty thousand pesos Section 369. Negotiated Purchase. -
(P40,000.00)
(a) In cases where public biddings have failed for two
Fourth Class and Below - Twenty thousand pesos (2) consecutive times and no suppliers have qualified
(P20,000.00) to participate or win in the biddings, local
government units may, through the local chief
Section 368. Emergency Purchase. - In cases of emergency executive concerned, undertake the procurement of
where the need for the supplies is exceptionally urgent or supplies by negotiated purchase, regardless of
 amount, without public bidding: Provided, however, Section 371. Procurement from Exclusive Philippine Agents or
That the contract covering the negotiated purchase Distributors. - Procurement may, in the case of supplies of
shall be approved by the sanggunian concerned. foreign origin, preferably be made directly from the exclusive
Delivery of purchase orders or utilization of repair or reputable Philippine distributors or agents, subject to the
orders pursuant to this Section shall be made within following conditions:
seven (7) days after placement of the same.
Immediately after the negotiated purchase or repair (a) That the Philippine distributor has no subdealers
order is made, the local chief executive concerned selling at lower prices; and
shall draw a regular requisition to cover the same
which shall contain the following: (b) That no suitable substitutes or substantially the
same quality are available at lower prices.
(1) A complete description of the supplies
acquired or the work done or to be Section 372. Procurement from Government Entities. -
performed; Procurement may be made directly from the government
entities producing the required supplies, including units or
(2) By whom furnished or executed; agencies of foreign governments with which the Philippines
maintains diplomatic relations. In the latter case, prior
(3) Date of placing the order and the date authority from the Office of the President shall be required.
and time of delivery or execution;
Section 373. Annual Procurement Program. -
(4) The unit price and the total contract
price; (a) On or before the fifteenth (15th) day of July each
year, the local chief executive shall prepare an
(5) A certification of the provincial or city annual procurement program for the ensuing fiscal
general services of the municipal or year which shall contain an itemized list of the
barangay treasurer, as the case may be, to estimated quantity of supplies needed for such year,
the effect that the price paid or contracted a complete description thereof as to kind, quality,
for was the lowest at the time of estimated cost, and balance on hand: Provided,
procurement; however, That the total estimated cost of the
approved annual procurement program shall not
(6) A certification to the effect that the exceed the total appropriations authorized for the
price paid or contracted for was the lowest acquisition of supplies. The local government units
at the time of procurement; and may augment the supplies and equipment provided
by the Supreme Court to the lower courts located in
(7) A certification of the local budget officer their respective jurisdictions.
as to the existence of appropriations for the
purpose, the local accountant as to the (b) Except in emergency cases or where urgent
obligation of the amount involved, and the indispensable needs could not have been reasonably
local treasurer as to the availability of anticipated, no purchase of supplies shall be made
funds. unless included in. or covered by, the approved
procurement program. (c) The conversion of excess
(b) In case of repeat orders for regular supplies, cash into supplies stock is hereby prohibited except
procurement may be made by negotiated purchase: to the extent of the kind and quantity specified in
Provided, That the repeat order is made within three the approved annual procurement plan. A violation
(3) months from the last procurement of the same of this Section shall be a ground for suspension or
item: Provided, further, That the same terms and dismissal of any political or employee responsible
conditions of sale are obtained for the said repeat therefor.
order.
Section 374. Establishment of an Archival System. - Every
Section 370. Procurement from Duly Licensed Manufacturer. - local government unit shall provide for the establishment of
Procurement may be made directly from duly licensed archival system to ensure the safety and protection of all
manufacturers in cases of supplies of Philippine manufacture government property, public documents or records such as
or origin and in case there are two (2) or more manufacturers records of births, marriages, property inventory, land
shall be conducted to obtain the lowest price for the quality assessments, land ownership, tax payments, tax accounts,
of the said supplies. and business permits, and such other records or documents
of public interest in the various departments and offices of
the provincial, city, or municipal government concerned.
Section 375. Primary and Secondary Accountability for illegal, unauthorized or improper use of property
Government Property. - shall first be required to answer therefor.

(a) Each head of department or office of a province, (c) In cases of loss, damage, or deterioration of
city, municipality or barangay shall be primarily government property arising from, or attributable
accountable for all government property assigned or to, negligence in security, the head of the security
issued to his department or office. The person or agency shall be held liable therefor.
persons entrusted with the possession or custody of
government property under the accountability of Section 378. Credit for Loss Occurring in Transit or Due to
any head of department or office shall be Casualty. - When a loss of government property occurs while
immediately accountable to such officer. the same is in transit or is caused by fire, theft, force majeure,
or other casualty, the officer accountable therefor or having
(b) The head of a department or office primarily custody thereof shall immediately notify the provincial or city
accountable for government property may require auditor concerned within thirty (30) days from the date the
any person in possession of the property or having loss occurred or for such longer period as the provincial, city
custody and control thereof under him to keep such or municipal auditor, as the case may be, may in the
records and make reports as may be necessary for particular case allow, and he shall present his application for
his own information and protection. relief, with the available evidence in support thereof. An
officer who fails to comply with this requirement shall not be
(c) Buildings and other physical structures shall be relieved of liability or allowed credit for any such loss in the
under the accountability and responsibility of the settlement of his accounts.
provincial or city general services officer or the
municipal mayor or punong barangay, as the case A provincial, city or municipal auditor shall not allow credit
may be. (d) Every officer primarily accountable for for these losses unless so expressly authorized by the
government property shall keep a complete record Chairman of the Commission on Audit, to the exercised only if
of all properties under his charge and render his the loss is not in excess of fifty thousand pesos (P50,000.00).
accounts therefor semiannually to the provincial or In any case when the allowance of credit is not within the
city general services officer or the municipal mayor competence of the provincial, city or municipal auditor, the
or punong barangay, as the case may be. application and evidence, with the recommendation of the
auditor concerned, shall be forwarded to the Chairman of the
Section 376. Responsibility for Proper Use and Care of Commission on Audit for his appropriate action.
Government Property. - The person in actual physical
possession of government property or entrusted with its Section 379. Property Disposal. - When property of any local
custody and control shall be responsible for its proper use government unit has become unserviceable for any cause or
and care and shall exercise due diligence in the utilization and is no longer needed, it shall upon application of the officer
safekeeping thereof. accountable therefor, be inspected and appraised by the
provincial, city or municipal auditor, as the case may be, or
Section 377. Measure of Liability of Persons Accountable for his duly authorized representative or that of the Commission
Government Property. - on Audit and, if found valueless or unusable, shall be
destroyed in the presence of the inspecting officer.
(a) The person immediately accountable for
government property shall be liable for its money If found valuable, the same shall be sold at public auction to
value in case of the illegal, improper or unauthorized the highest bidder under the supervision of the committee on
use or misapplication thereof, by himself or any awards and in the presence of the provincial, city or
other person for whose acts he may be responsible, municipal auditor or his duly authorized representative.
and he shall be liable for all loss, damage, or Notice of the public auction shall be posted in at least three
deterioration occasioned by negligence in the (3) publicly accessible and conspicuous places, and if the
keeping or use of property unless it is proved that he acquisition cost exceeds One hundred thousand pesos
has exercised due diligence and care in the (P100,000.00) in the case of provinces and cities, and Fifty
utilization and safekeeping thereof. thousand pesos (P50,000.00) in the case of municipalities,
notice of auction shall be published at least two (2) times
(b) Unless he registers his objection in writing, an within a reasonable period in a newspaper of general
accountable person shall not be relieved from circulation in the locality.
liability by reason of his having acted under the
direction of a superior officer in using property with Section 380. Negotiated Sale of Property. - Property no longer
which he is chargeable; but the officer directing any 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 crystallized and considered, and where disputes may be
cost of the property exceeds Fifty thousand pesos amicably settled.
(P50,000.00) in the case of provinces and cities, and Twenty-
five thousand pesos (P25,000.00) in the case of municipalities Section 385. Manner of Creation. - A barangay may be
and barangays. created, divided, merged, abolished, or its boundary
substantially altered, by law or by an ordinance of the
In case of real property, the disposal shall be subject to the sangguniang panlalawigan or panlungsod, subject to approval
approval of the Commission on Audit regardless of the value by a majority of the votes cast in a plebiscite to be conducted
or cost involved. by the COMELEC in the local government unit or units directly
affected within such period of time as may be determined by
Section 381. Transfer Without Cost. - Property which has the law or ordinance creating said barangay. In the case of
become unserviceable or is no longer needed may be the creation of barangays by the sangguniang panlalawigan,
transferred without cost to another office, agency, the recommendation of the sangguniang bayan concerned
subdivision or instrumentality of the national government or shall be necessary.
another local government unit at an appraised valuation
determined by the local committee on awards. Such transfer Section 386. Requisites for Creation. -
shall be subject to the approval of the sanggunian concerned
making the transfer and by the head of the office, agency, (a) A barangay may be created out of a contiguous
subdivision, instrumentality or local government unit territory which has a population of at least two
receiving the property. thousand (2,000) inhabitants as certified by the
National Statistics Office except in cities and
Section 382. Tax Exemption Privileges of Local Government municipalities within Metro Manila and other
Units. - Local government units shall be exempt from the metropolitan political subdivisions or in highly
payment of duties and taxes for the importation of heavy urbanized cities where such territory shall have a
equipment or machineries which shall be used for the certified population of at least five thousand (5,000)
construction, improvement, repair, and maintenance of inhabitants: Provided, That the creation thereof shall
roads, bridges and other infrastructure projects, as well as not reduce the population of the original barangay
garbage trucks, fire trucks, and other similar equipment: or barangays to less than the minimum requirement
Provided, however, That such equipment or machineries shall prescribed herein.
not be disposed of, either by public auction or negotiated sale
as hereinabove provided, within five (5) years from the To enhance the delivery of basic services in the
importation thereof. In case the machinery or equipment is indigenous cultural communities, barangays may be
sold within the five-year period, the purchasers or recipients created in such communities by an Act of Congress,
shall be considered the importers thereof, and shall be liable notwithstanding the above requirement.
for duties and taxes computed on the book value of such
importation. (b) The territorial jurisdiction of the new barangay
shall be properly identified by metes and bounds or
Section 383. Implementing Rules and Regulations. - The by more or less permanent natural boundaries. The
Chairman of the Commission on Audit shall promulgate the territory need not be contiguous if it comprises two
rules and regulations necessary to effectively implement the (2) or more islands.
provisions of this Title, including requirements as to testing,
inspection, and standardization of supply and property. (c) The governor or city mayor may prepare a
consolidation plan for barangays, based on the
BOOK III criteria prescribed in this Section, within his
LOCAL GOVERNMENT UNITS territorial jurisdiction. The plan shall be submitted to
the sangguniang panlalawigan or sangguniang
TITLE I panlungsod concerned for appropriate action.
THE BARANGAY
In the case of municipalities within the Metropolitan
CHAPTER I Manila Area and other metropolitan political
Role and Creation of the Barangay subdivisions, the barangay consolidation plan shall
be prepared and approved by the sangguniang
Section 384. Role of the Barangay. - As the basic political unit, bayan concerned.
the barangay serves as the primary planning and
implementing unit of government policies, plans, programs, CHAPTER II
projects, and activities in the community, and as a forum Barangay Officials and Offices
wherein the collective views of the people may be expressed,
Section 387. Chief Officials and Offices. - (4) Call and preside over the sessions of the
sangguniang barangay and the barangay
(a) There shall be in each barangay a punong assembly, and vote only to break a tie;
barangay, seven (7) sangguniang barangay members,
the sangguniang kabataan chairman, a barangay (5) Upon approval by a majority of all the
secretary, and a barangay treasurer. members of the sangguniang barangay,
appoint or replace the barangay treasurer,
(b) There shall also be in every barangay a lupong the barangay secretary, and other
tagapamayapa. The sangguniang barangay may form appointive barangay officials;
community brigades and create such other positions
or offices as may be deemed necessary to carry out (6) Organize and lead an emergency group
the purposes of the barangay government in whenever the same may be necessary for
accordance with the needs of public service, subject the maintenance of peace and order or on
to the budgetary limitations on personal services occasions of emergency or calamity within
prescribed under Title Five, Book II of this Code. the barangay;

Section 388. Persons in Authority. - For purposes of the (7) In coordination with the barangay
Revised Penal Code, the punong barangay, sangguniang development council, prepare the annual
barangay members, and members of the lupong executive and supplemental budgets of the
tagapamayapa in each barangay shall be deemed as persons barangay;
in authority in their jurisdictions, while other barangay
officials and members who may be designated by law or (8) Approve vouchers relating to the
ordinance and charged with the maintenance of public order, disbursement of barangay funds;
protection and security of life and property, or the
maintenance of a desirable and balanced environment, and (9) Enforce laws and regulations relating to
any barangay member who comes to the aid of persons in pollution control and protection of the
authority, shall be deemed agents of persons in authority. environment;

CHAPTER III (10) Administer the operation of the

The Punong Barangay katarungang pambarangay in accordance
with the provisions of this Code;
Section 389. Chief Executive: Powers, Duties, and Functions. -
(11) Exercise general supervision over the
(a) The punong barangay, as the chief executive of activities of the sangguniang kabataan;
the barangay government, shall exercise such
powers and perform such duties and functions, as (12) Ensure the delivery of basic services as
provided by this Code and other laws. mandated under Section 17 of this Code;

(b) For efficient, effective and economical (13) Conduct an annual palarong barangay
governance, the purpose of which is the general which shall feature traditional sports and
welfare of the barangay and its inhabitants pursuant disciplines included in national and
to Section 16 of this Code, the punong barangay international games, in coordination with
shall: the Department of Education, Culture and
Sports;
(1) Enforce all laws and ordinances which
are applicable within the barangay; (14) Promote the general welfare of the
barangay; and
(2) Negotiate, enter into, and sign contracts
for and in behalf of the barangay, upon (15) Exercise such other powers and
authorization of the sangguniang barangay; perform such other duties and functions as
may be prescribed by law or ordinance.
(3) Maintain public order in the barangay
and, in pursuance thereof, assist the city or (b) In the performance of his peace and order
municipal mayor and the sanggunian functions. the punong barangay shall be entitled to
members in the performance of their duties possess and carry the necessary firearm within his
and functions; territorial jurisdiction, subject to appropriate rules
and regulations.
CHAPTER IV cooperative enterprises of the barangay
The Sangguniang Barangay from residents, land owners, producers and
merchants in the barangay; monies from
Section 390. Composition. - The sangguniang barangay, the grants-in-aid, subsidies, contributions, and
legislative body of the barangay, shall be composed of the revenues made available to the barangays
punong barangay as presiding officer, and the seven (7) from national, provincial, city or municipal
regular sangguniang barangay members elected at large and funds; and monies from other private
sangguniang kabataan chairman, as members. agencies and individuals: Provided,
however, That monies or properties
Section 391. Powers, Duties, and Functions. - donated by private agencies and individuals
for specific purposes shall accrue to the
barangay as trust fund;
(a) The sangguniang barangay, as the legislative body
of the barangay, shall:
(9) Solicit or accept, in any or all the
foregoing public works and cooperative
(1) Enact ordinances as may be necessary to
enterprises, such cooperation as is made
discharge the responsibilities conferred
available by national, provincial, city, or
upon it by law or ordinance and to promote
municipal agencies established by law to
the general welfare of the inhabitants
render financial, technical, and advisory
therein;
assistance to barangays and to barangay
residents: Provided, however, That in
(2) Enact tax revenue ordinances, subject to soliciting or accepting such cooperation, the
the limitations imposed in this Code; sangguniang barangay need not pledge any
sum of money for expenditure in excess of
(3) Enact annual and supplemental budgets amounts currently in the barangay treasury
in accordance with the provisions of this or encumbered for other purposes;
Code;
(10) Provide compensation, reasonable
(4) Provide for the construction and allowances or per diems as well as travel
maintenance of barangay facilities and expenses for sangguniang barangay
other public works projects chargeable to members and other barangay officials,
the general fund of the barangay or such subject to the budgetary limitations
other funds actually available for the prescribed under Title Five, Book II of this
purpose; Code: Provided, however, That no increase
in the compensation or honoraria of the
(5) Submit to the sangguniang panlungsod sangguniang barangay members shall take
or sangguniang bayan such suggestions or effect until after the expiration of the full
recommendations as it may see fit for the term of all members of the sangguniang
improvement of the barangay or for the barangay approving such increase;
welfare of the inhabitants thereof;
(11) Hold fund-raising activities for
(6) Assist in the establishment, barangay projects without the need of
organization, and promotion of cooperative securing permits from any national or local
enterprises that will improve the economic office or agency. The proceeds from such
condition and well-being of the residents; activities shall be tax-exempt and shall
accrue to the general fund of the barangay:
(7) Regulate the use of multi-purpose halls, Provided, That in the appropriation thereof,
multi-purpose pavements, grain or copra the specific purpose for which such fund-
dryers, patios and other post-harvest raising activity has been held shall be first
facilities, barangay waterworks, barangay satisfied: Provided, further, That no fund-
markets, parking areas or other similar raising activities shall be held within a
facilities constructed with government period of sixty (60) days immediately
funds within the jurisdiction of the preceding and after a national or local
barangay and charge reasonable fees for election, recall, referendum, or plebiscite:
the use thereof; Provided, finally, That said fund-raising
activities shall comply with national policy
(8) Solicit or accept monies, materials and standards and regulations on morals,
voluntary labor for specific public works and health, and safety of the persons
participating therein. The sangguniang (22) Provide for the establishment of a non-
barangay, through the punong barangay, formal education center in the barangay
shall render a public accounting of the whenever feasible, in coordination with the
funds raised at the completion of the Department of Education, Culture and
project for which the fund-raising activity Sports;
was undertaken;
(23) Provide for the delivery of basic
(12) Authorize the punong barangay to services; and
enter into contracts in behalf of the
barangay, subject to the provisions of this (24) Exercise such other powers and
Code; perform such other duties and functions as
may be prescribed by law or ordinance.
(13) Authorize the barangay treasurer to
make direct purchases in an amount not Section 392. Other Duties of Sangguniang Barangay
exceeding One thousand pesos (P1,000.00) Members. - In addition to their duties as members of the
at any one time for the ordinary and sangguniang barangay, sangguniang barangay members may:
essential administrative needs of the
barangay; (a) Assist the punong barangay in the discharge of
his duties and functions;
(14) Prescribe fines in amounts not
exceeding One thousand pesos (P1,000.00) (b) Act as peace officers in the maintenance of public
for violation of barangay ordinances; order and safety; and

(15) Provide for the administrative needs of (c) Perform such other duties and functions as the
the lupong tagapamayapa and the pangkat punong barangay may delegate.
ng tagapagkasundo;
Section 393. Benefits of Barangay Officials. -
(16) Provide for the organization of
community brigades, barangay tanod, or
(a) Barangay officials, including barangay tanods and
community service units as may be
members of the lupong tagapamayapa, shall receive
necessary;
honoraria, allowances, and such other emoluments
as may be authorized by law or barangay, municipal
(17) Organize regular lectures, programs, or or city ordinance in accordance with the provisions
fora on community problems such as of this Code, but in no case shall it be less than One
sanitation, nutrition, literacy, and drug thousand pesos (P1,000.00) per month for the
abuse, and convene assemblies to punong barangay and Six hundred pesos (P600.00)
encourage citizen participation in per month for the sangguniang barangay members,
government; barangay treasurer, and barangay secretary:
Provided, however, That the annual appropriations
(18) Adopt measures to prevent and control for personal services shall be subject to the
the proliferation of squatters and budgetary limitations prescribed under Title Five,
mendicants in the barangay; Book II of this Code;

(19) Provide for the proper development (b) The punong barangay, the sangguniang barangay
and welfare of children in the barangay by members, the barangay treasurer, and the barangay
promoting and supporting activities for the secretary shall also:
protection and total development of
children, particularly those below seven (7) (1) Be entitled to Christmas bonus of at
years of age; least One thousand pesos (P1,000.00) each,
the funds for which shall be taken from the
(20) Adopt measures towards the general fund of the barangay or from such
prevention and eradication of drug abuse, other funds appropriated by the national
child abuse, and juvenile delinquency; government for the purpose;

(21) Initiate the establishment of a (2) Be entitled, during their incumbency, to

barangay high school, whenever feasible, in insurance coverage which shall include, but
accordance with law; shall not be limited to temporary and
 permanent disability, double indemnity, CHAPTER V
accident insurance, death and burial Appointive Barangay Officials
benefits, in accordance with Republic Act
Numbered Sixty-nine hundred forty-two Section 394. Barangay Secretary: Appointment,
(R.A. No. 6942), entitled "An Act Increasing Qualifications, Powers and Duties. -
the Insurance Benefits of Local Government
Officials and Providing Funds Therefor"; (a) The barangay secretary shall be appointed by the
punong barangay with the concurrence of the
(3) Be entitled to free medical care majority of all the sangguniang barangay members.
including subsistence, medicines, and The appointment of the barangay secretary shall not
medical attendance in any government be subject to attestation by the Civil Service
hospital or institution: Provided, That such Commission.
hospital care shall include surgery or
surgical expenses, medicines, X-rays, (b) The barangay secretary shall be of legal age, a
laboratory fees, and other hospital qualified voter and an actual resident of the
expenses; barangay concerned.

In case of extreme urgency where there is (c) No person shall be appointed barangay secretary
no available government hospital or if he is a sangguniang barangay member, a
institution, the barangay official attendance government employee, or a relative of the punong
to the nearest private clinic, hospital or barangay within the fourth civil degree of
institution and the expenses not exceeding consanguinity of affinity.
Five thousand pesos (P5,000.00) that may
be incurred therein shall be chargeable
(d) The barangay secretary shall:
against the funds of the barangay
concerned;
(1) Keep custody of all records of the
sangguniang barangay and the barangay
(4) Be exempted during their incumbency
assembly meetings;
from paying tuition and matriculation fees
for their legitimate dependent children
(2) Prepare and keep the minutes of all
attending state colleges or universities. He
may likewise avail of such educational meetings of the sangguniang barangay and
benefits in a state college or university the barangay assembly;
located within the province or city to which
the barangay belongs; and (3) Prepare a list of members of the
barangay assembly, and have the same
(5) Be entitled to appropriate civil service posted in conspicuous places within the
eligibility on the basis of the number of barangay;
years of service to the barangay, pursuant
to the rules and regulations issued by the (4) Assist in the preparation of all necessary
Civil Service Commission. forms for the conduct of barangay
elections, initiatives, referenda or
(c) Elective barangay officials shall have preference plebiscites, in coordination with the
in appointments to any government position or in COMELEC;
any government-owned or controlled corporations,
including their subsidiaries, after their tenure of (5) Assist the municipal civil registrar in the
office, subject to the requisite qualifications and the registration of births, deaths, and
provisions of the immediately preceding paragraph. marriages;

(d) All duly appointed members of the barangay (6) Keep an updated record of all
tanod brigades, or their equivalent, which shall inhabitants of the barangay containing the
number not more than twenty (20) in each following items of information: name,
barangay, shall be granted insurance or other address, place and date of birth, sex, civil
benefits during their incumbency, chargeable to the status, citizenship, occupation, and such
barangay or the city or municipal government to other items of information as may be
which the barangay belongs. prescribed by law or ordinance;
 (7) Submit a report on the actual number of (5) Render a written accounting report of all
barangay residents as often as may be barangay funds and property under his
required by the sangguniang barangay; and custody at the end of each calendar year,
and ensure that such report shall be made
(8) Exercise such other powers and perform available to the members of the barangay
such other duties and functions as may be assembly and other government agencies
prescribed by law or ordinance. concerned;

Section 395. Barangay Treasurer: Appointment, Qualification, (6) Certify as to the availability of funds
Powers and Duties. - whenever necessary;

(a) The barangay treasurer shall be appointed by the (7) Plan and attend to the rural postal
punong barangay with the concurrence of the circuit within his jurisdiction; and
majority of all the sangguniang barangay members.
The appointment of the barangay treasurer shall not (8) Exercise such other powers and perform
be subject to attestation by the Civil Service such other duties and functions as may be
Commission. prescribed by law or ordinance.

(b) The barangay treasurer shall be of legal age, a Section 396. Other Appointive Officials. - The qualifications,
qualified voter, and an actual resident of the duties, and functions of all other barangay officials appointed
barangay concerned. by the punong barangay shall be governed by the provisions
of this Code and other laws or by barangay ordinances.
(c) No person shall be appointed barangay treasurer
if he is a sangguniang barangay member, a CHAPTER VI
government employee, or a relative of the punong Barangay Assembly
barangay within the fourth civil degree of
consanguinity or affinity. Section 397. Composition; Meetings. -

(d) The barangay treasurer shall be bonded in (a) There shall be a barangay assembly composed of
accordance with existing laws in an amount to be all persons who are actual residents of the barangay
determined by the sangguniang barangay but not for at least six (6) months, fifteen (15) years of age or
exceeding Ten thousand pesos (P10,000.00), over, citizens of the Philippines, and duly registered
premiums for which shall be paid by the barangay. in the list of barangay assembly members.

(e) The barangay treasurer shall: (b) The barangay assembly shall meet at least twice
a year to hear and discuss the semestral report of
(1) Keep custody of barangay funds and the sangguniang barangay concerning its activities
properties; and finances as well as problems affecting the
barangay. Its meetings shall be held upon call of the
(2) Collect and issue official receipts for punong barangay or of at least four (4) members of
taxes, fees, contributions, monies, the sangguniang barangay, or upon written petition
materials, and all other resources accruing of at least five percent (5%) of the assembly
to the barangay treasury and deposit the members.
same in the account of the barangay as
provided under Title Five, Book II of this (c) No meeting of the barangay assembly shall take
Code; place unless a written notice is given one (1) week
prior to the meeting except on matters involving
(3) Disburse funds in accordance with the public safety or security, in which case notice within
financial procedures provided in this Code; a reasonable time shall be sufficient. The punong
barangay, or in his absence, the sangguniang
(4) Submit to the punong barangay a barangay member acting as punong barangay, or any
statement covering the actual and assembly member selected during the meeting, shall
estimates of income and expenditures for act as presiding officer in all the meetings of the
the preceding and ensuing calendar years, assembly. The barangay secretary, or in his absence,
respectively, subject to the provisions of any member designated by the presiding officer to
Title Five, Book II of this Code. act as secretary, shall discharge the duties of
secretary of the barangay assembly.
Section 398. Powers of the Barangay Assembly. - The (e) The list of appointed members shall be posted in
barangay assembly shall: three (3) conspicuous places in the barangay for the
entire duration of their term of office; and
(a) Initiate legislative processes by recommending to
the sangguniang barangay the adoption of measures (f) In barangays where majority of the inhabitants
for the welfare of the barangay and the city or are members of indigenous cultural communities,
municipality concerned; local systems of settling disputes through their
councils of datus or elders shall be recognized
(b) Decide on the adoption of initiative as a legal without prejudice to the applicable provisions of this
process whereby the registered voters of the Code.
barangay may directly propose, enact, or amend any
ordinance; and Section 400. Oath and Term of Office. - Upon appointment,
each lupon member shall take an oath of office before the
(c) Hear and pass upon the semestral report of the punong barangay. He shall hold office until a new lupon is
sangguniang barangay concerning its activities and constituted on the third year following his appointment
finances. unless sooner terminated by resignation, transfer of
residence or place of work, or withdrawal of appointment by
CHAPTER VII the punong barangay with the concurrence of the majority of
Katarungang Pambarangay all the members of the lupon.

Section 399. Lupong Tagapamayapa. - 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
(a) There is hereby created in each barangay a
unexpired portion of the term.
lupong tagapamayapa, hereinafter referred to as the
lupon, composed of the punong barangay, as
chairman and ten (10) to twenty (20) members. The Section 402. Functions of the Lupon. - The lupon shall:
lupon shall be constituted every three (3) years in
the manner provided herein. (a) Exercise administrative supervision over the
conciliation panels provided herein;
(b) Any person actually residing or working, in the
barangay, not otherwise expressly disqualified by (b) Meet regularly once a month to provide a forum
law, and possessing integrity, impartiality, for exchange of ideas among its members and the
independence of mind, sense of fairness, and public on matters relevant to the amicable
reputation for probity, may be appointed a member settlement of disputes, and to enable various
of the lupon. conciliation panel members to share with one
another their observations and experiences in
(c) A notice to constitute the lupon, which shall effecting speedy resolution of disputes; and
include the names of proposed members who have
expressed their willingness to serve, shall be (c) Exercise such other powers and perform such
prepared by the punong barangay within the first other duties and functions as may be prescribed by
fifteen (15) days from the start of his term of office. law or ordinance.
Such notice shall be posted in three (3) conspicuous
places in the barangay continuously for a period of Section 403. Secretary of the Lupon. - The barangay secretary
not less than three (3) weeks; shall concurrently serve as the secretary of the lupon. He
shall record the results of mediation proceedings before the
(d) The punong barangay, taking into consideration punong barangay and shall submit a report thereon to the
any opposition to the proposed appointment or any proper city or municipal courts. He shall also receive and keep
recommendations for appointment as may have the records of proceedings submitted to him by the various
been made within the period of posting, shall within conciliation panels.
ten (10) days thereafter, appoint as members those
whom he determines to be suitable therefor. Section 404. Pangkat ng Tagapagkasundo. -
Appointments shall be in writing, signed by the
punong barangay, and attested to by the barangay (a) There shall be constituted for each dispute
secretary. 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 Section 408. Subject Matter for Amicable Settlement;
the lupon. Exception Thereto. - The lupon of each barangay shall have
authority to bring together the parties actually residing in the
Should the parties fail to agree on the pangkat same city or municipality for amicable settlement of all
membership, the same shall be determined by lots disputes except:
drawn by the lupon chairman.
(a) Where one party is the government, or any
(b) The three (3) members constituting the pangkat subdivision or instrumentality thereof;
shall elect from among themselves the chairman and
the secretary. The secretary shall prepare the (b) Where one party is a public officer or employee,
minutes of the pangkat proceedings and submit a and the dispute relates to the performance of his
copy duly attested to by the chairman to the lupon official functions;
secretary and to the proper city or municipal court.
He shall issue and cause to be served notices to the (c) Offenses punishable by imprisonment exceeding
parties concerned. one (1) year or a fine exceeding Five thousand pesos
(P5,000.00);
The lupon secretary shall issue certified true copies
of any public record in his custody that is not by law (d) Offenses where there is no private offended
otherwise declared confidential. party;

Section 405. Vacancies in the Pangkat. - Any vacancy in the (e) Where the dispute involves real properties
pangkat shall be chosen by the parties to the dispute from located in different cities or municipalities unless the
among the other lupon members. Should the parties fail to parties thereto agree to submit their differences to
agree on a common choice, the vacancy shall be filled by lot amicable settlement by an appropriate lupon;
to be drawn by the lupon chairman.
(f) Disputes involving parties who actually reside in
Section 406. Character of Office and Service of Lupon barangays of different cities or municipalities, except
Members. - where such barangay units adjoin each other and the
parties thereto agree to submit their differences to
(a) The lupon members, while in the performance of amicable settlement by an appropriate lupon;
their official duties or on the occasion thereof, shall
be deemed as persons in authority, as defined in the (g) Such other classes of disputes which the
Revised Penal Code. President may determine in the interest of Justice or
upon the recommendation of the Secretary of
(b) The lupon or pangkat members shall serve Justice.
without compensation, except as provided for in
Section 393 and without prejudice to incentives as The court in which non-criminal cases not falling
provided for in this Section and in Book IV of this within the authority of the lupon under this Code are
Code. The Department of the Interior and Local filed may, at any time before trial motu propio refer
Government shall provide for a system of granting the case to the lupon concerned for amicable
economic or other incentives to the lupon or settlement.
pangkat members who adequately demonstrate the
ability to judiciously and expeditiously resolve cases Section 409. Venue. -
referred to them. While in the performance of their
duties, the lupon or pangkat members, whether in
(a) Disputes between persons actually residing in the
public or private employment, shall be deemed to be
same barangay shall be brought for amicable
on official time, and shall not suffer from any
settlement before the lupon of said barangay.
diminution in compensation or allowance from said
employment by reason thereof.
(b) Those involving actual residents of different
barangays within the same city or municipality shall
Section 407. Legal Advice on Matters Involving Questions of
be brought in the barangay where the respondent or
Law. - The provincial, city legal officer or prosecutor or the
any of the respondents actually resides, at the
municipal legal officer shall render legal advice on matters
election of the complaint.
involving questions of law to the punong barangay or any
lupon or pangkat member whenever necessary in the
(c) All disputes involving real property or any interest
exercise of his functions in the administration of the
therein shall be brought in the barangay where the
katarungang pambarangay.
 real property or the larger portion thereof is this purpose, the pangkat may issue summons for
situated. the personal appearance of parties and witnesses
before it. In the event that a party moves to
(d) Those arising at the workplace where the disqualify any member of the pangkat by reason of
contending parties are employed or at the institution relationship, bias, interest, or any other similar
where such parties are enrolled for study, shall be grounds discovered after the constitution of the
brought in the barangay where such workplace or pangkat, the matter shall be resolved by the
institution is located. affirmative vote of the majority of the pangkat
whose decision shall be final. Should disqualification
Objections to venue shall be raised in the mediation be decided upon, the resulting vacancy shall be filled
proceedings before the punong barangay; otherwise, as herein provided for.
the same shall be deemed waived. Any legal
question which may confront the punong barangay (e) Period to arrive at a settlement - The pangkat
in resolving objections to venue herein referred to shall arrive at a settlement or resolution of the
may be submitted to the Secretary of Justice, or his dispute within fifteen (15) days from the day it
duly designated representative, whose ruling convenes in accordance with this section. This period
thereon shall be binding. shall, at the discretion of the pangkat, be extendible
for another period which shall not exceed fifteen
Section 410. Procedure for Amicable Settlement. - (15) days, except in clearly meritorious cases.

(a) Who may initiate proceeding - Upon payment of Section 411. Form of settlement. - All amicable settlements
the appropriate filing fee, any individual who has a shall be in writing, in a language or dialect known to the
cause of action against another individual involving parties, signed by them, and attested to by the lupon
any matter within the authority of the lupon may chairman or the pangkat chairman, as the case may be. When
complain, orally or in writing, to the lupon chairman the parties to the dispute do not use the same language or
of the barangay. dialect, the settlement shall be written in the language
known to them.
(b) Mediation by lupon chairman - Upon receipt of
the complaint, the lupon chairman shall within the Section 412. Conciliation. -
next working day summon the respondent(s), with
notice to the complainant(s) for them and their (a) Pre-condition to Filing of Complaint in Court. - No
witnesses to appear before him for a mediation of complaint, petition, action, or proceeding involving
their conflicting interests. If he fails in his mediation any matter within the authority of the lupon shall be
effort within fifteen (15) days from the first meeting filed or instituted directly in court or any other
of the parties before him, he shall forthwith set a government office for adjudication, unless there has
date for the constitution of the pangkat in been a confrontation between the parties before the
accordance with the provisions of this Chapter. lupon chairman or the pangkat, and that no
conciliation or settlement has been reached as
(c) Suspension of prescriptive period of offenses - certified by the lupon secretary or pangkat secretary
While the dispute is under mediation, conciliation, or as attested to by the lupon or pangkat chairman or
arbitration, the prescriptive periods for offenses and unless the settlement has been repudiated by the
cause of action under existing laws shall be parties thereto.
interrupted upon filing the complaint with the
punong barangay. The prescriptive periods shall (b) Where Parties May Go Directly to Court. - The
resume upon receipt by the complainant of the parties may go directly to court in the following
complainant or the certificate of repudiation or of instances:
the certification to file action issued by the lupon or
pangkat secretary: Provided, however, That such (1) Where the accused is under detention;
interruption shall not exceed sixty (60) days from the
filing of the complaint with the punong barangay. (2) Where a person has otherwise been
deprived of personal liberty calling for
(d) Issuance of summons; hearing; grounds for habeas corpus proceedings;
disqualification - The pangkat shall convene not later
than three (3) days from its constitution, on the day (3) Where actions are coupled with
and hour set by the lupon chairman, to hear both provisional remedies such as preliminary
parties and their witnesses, simplify issues, and injunction, attachment, delivery of personal
explore all possibilities for amicable settlement. For property and support pendente lite; and
 (4) Where the action may otherwise be the lapse of such time, the settlement may be enforced by
barred by the statute of limitations. action in the appropriate city or municipal court.

(c) Conciliation among members of indigenous Section 418. Repudiation. - Any party to the dispute may,
cultural communities. - The customs and traditions within ten (10) days from the date of the settlement,
of indigenous cultural communities shall be applied repudiate the same by filing with the lupon chairman a
in settling disputes between members of the cultural statement to that effect sworn to before him, where the
communities. consent is vitiated by fraud, violence, or intimidation. Such
repudiation shall be sufficient basis for the issuance of the
Section 413. Arbitration. - certification for filing a complaint as hereinabove provided.

(a) The parties may, at any stage of the proceedings, Section 419. Transmittal of Settlement and Arbitration. -
agree in writing that they shall abide by the Award to the Court. - The secretary of the lupon shall
arbitration award of the lupon chairman or the transmit the settlement or the arbitration award to the
pangkat. Such agreement to arbitrate may be appropriate city or municipal court within five (5) days from
repudiated within five (5) days from the date thereof the date of the award or from the lapse of the ten-day period
for the same grounds and in accordance with the repudiating the settlement and shall furnish copies thereof to
procedure hereinafter prescribed. The arbitration each of the parties to the settlement and the lupon chairman.
award shall be made after the lapse of the period for
repudiation and within ten (10) days thereafter. Section 420. Power to Administer Oaths. - The punong
barangay, as chairman of the lupong tagapamayapa, and the
(b) The arbitration award shall be in writing in a members of the pangkat are hereby authorized to administer
language or dialect known to the parties. When the oaths in connection with any matter relating to all
parties to the dispute do not use the same language proceedings in the implementation of the katarungang
or dialect, the award shall be written in the language pambarangay.
or dialect known to them.
Section 421. Administration; Rules and Regulations. - The city
Section 414. Proceedings Open to the Public; Exception. - All or municipal mayor, as the case may be, shall see to the
proceedings for settlement shall be public and informal: efficient and effective implementation and administration of
Provided, however, That the lupon chairman or the pangkat the katarungang pambarangay. The Secretary of Justice shall
chairman, as the case may be, may motu proprio or upon promulgate the rules and regulations necessary to implement
request of a party, exclude the public from the proceedings in this Chapter.
the interest of privacy, decency, or public morals.
Section 422. Appropriations. - Such amount as may be
Section 415. Appearance of Parties in Person. - In all necessary for the effective implementation of the
katarungang pambarangay proceedings, the parties must katarungang pambarangay shall be provided for in the annual
appear in person without the assistance of counsel or budget of the city or municipality concerned.
representative, except for minors and incompetents who may
be assisted by their next-of-kin who are not lawyers. CHAPTER VIII
Sangguniang Kabataan
Section 416. Effect of Amicable Settlement and Arbitration
Award. - The amicable settlement and arbitration award shall Section 423. Creation and Election. -
have the force and effect of a final judgment of a court upon
the expiration of ten (10) days from the date thereof, unless (a) There shall be in every barangay a sangguniang
repudiation of the settlement has been made or a petition to kabataan to be composed of a chairman, seven (7)
nullify the award has been filed before the proper city or members, a secretary, and a treasurer.
municipal court.
(b) A sangguniang kabataan official who, during his
However, this provision shall not apply to court cases settled term of office, shall have passed the age of twenty-
by the lupon under the last paragraph of Section 408 of this one (21) years shall be allowed to serve the
Code, in which case the compromise or the pangkat chairman remaining portion of the term for which he was
shall be submitted to the court and upon approval thereof, elected.
have the force and effect of a judgment of said court.
Section 424. Katipunan ng Kabataan. - The katipunan ng
Section 417. Execution. - The amicable settlement or kabataan shall be composed of all citizens of the Philippines
arbitration award may be enforced by execution by the lupon actually residing in the barangay for at least six (6) months,
within six (6) months from the date of the settlement. After who are fifteen (15) but not more than twenty-one (21) years
of age, and who are duly registered in the list of the the date, time, and place to be fixed by the said sanggunian.
sangguniang kabataan or in the official barangay list in the Special meetings may be called by the sangguniang kabataan
custody of the barangay secretary. chairman or any three (3) of its members by giving written
notice to all members of the date, time, place and agenda of
Section 425. Meetings of the Katipunan ng Kabataan. - The the meeting at least one (1) day in advance. Notices of
katipunan ng kabataan shall meet at least once every three regular or special meetings shall be furnished the punong
(3) months, or at the call of the chairman of the sangguniang barangay and the sangguniang barangay.
kabataan or upon written petition of at least one-twentieth
(1/20) of its members, to decide on important issues affecting A majority of the members of the sangguniang kabataan shall
the youth of the barangay. constitute a quorum.

Section 426. Powers and Functions of the Sangguniang Section 428. Qualifications. - An elective official of the
Kabataan. - The sangguniang kabataan shall: sangguniang kabataan must be a citizen of the Philippines, a
qualified voter of the katipunan ng kabataan, a resident of
(a) Promulgate resolutions necessary to carry out the the barangay for at least one (1) year immediately prior to
objectives of the youth in the barangay in election, at least fifteen (15) years but not more than twenty-
accordance with the applicable provisions of this one (21) years of age on the day of his election, able to read
Code; and write Filipino, English, or the local dialect, and must not
have been convicted of any crime involving moral turpitude.
(b) Initiate programs designed to enhance the social,
political, economic, cultural, intellectual, moral, Section 429. Term of Office. - The sangguniang kabataan
spiritual, and physical development of the members; chairman and members shall hold office for a period of three
(3) years, unless sooner removed for cause as provided by
(c) Hold fund-raising activities, the proceeds of which law, permanently incapacitated, die or resign from office.
shall be tax-exempt and shall accrue to the general
fund of the sangguniang kabataan: Provided, Section 430. Sangguniang Kabataan Chairman. - The
however, That in the appropriation thereof, the registered voters of the katipunan ng kabataan shall elect the
specific purpose for which such activity has been chairman of the sangguniang kabataan who shall
held shall be first satisfied; automatically serve as an ex officio member of the
sangguniang barangay upon his assumption to office. As such,
(d) Create such bodies or committees as it may he shall exercise the same powers, discharge the same duties
deem necessary to effectively carry out its programs and functions, and enjoy the same privileges as the regular
and activities; sangguniang barangay members, and shall be the chairman of
the committee on youth and sports development in the said
sanggunian.
(e) Submit annual and end-of-term reports to the
sangguniang barangay on their projects and
activities for the survival and development of the Section 431. Powers and Duties of the Sangguniang Kabataan
youth in the barangay; Chairman. - In addition to the duties which may be assigned
to him by the sangguniang barangay, the sangguniang
kabataan chairman shall:
(f) Consult and coordinate with all youth
organizations in the barangay for policy formulation
and program implementation; (a) Call and preside over all meetings of the
katipunan ng kabataan and the sangguniang
kabataan;
(g) Coordinate with the appropriate national agency
for the implementation of youth development
projects and programs at the national level; (b) Implement policies, programs, and projects
within his jurisdiction in coordination with the
(h) Exercise such other powers and perform such sangguniang barangay;
other duties and functions as the sangguniang
barangay may determine or delegate; and (c) Exercise general supervision over the affairs and
activities of the sangguniang kabataan and the
official conduct of its members, and such other
(i) Exercise such other powers and perform such
officers of the sangguniang kabataan within his
other duties and functions as may be prescribed by
jurisdiction;
law or ordinance.

(d) With the concurrence of the sangguniang

Section 427. Meetings of the Sangguniang Kabataan. - The
kabataan, appoint from among the members of the
sangguniang kabataan shall meet regularly once a month on
 sangguniang kabataan, the secretary and treasurer under this Code subject to such requirements and limitations
and such other officers as may be deemed provided herein. During their incumbency, sangguniang
necessary; and kabataan officials shall be exempt from payment of tuition
and matriculation fees while enrolled in public tertiary
(e) Exercise such other powers and perform such schools, including state colleges and universities. The national
other duties and functions as may be prescribed by government shall reimburse said college or university the
law or ordinance. amount of the tuition and matriculation fees: Provided, That,
to qualify for the privilege, the said officials shall enroll in a
Section 432. Sangguniang Kabataan Secretary. - The state college or university within or nearest their area of
sangguniang kabataan secretary shall: jurisdiction.

(a) Keep all records of the katipunan ng kabataan Section 435. Succession and Filling of Vacancies. -
and sangguniang kabataan;
(a) In case a sangguniang kabataan chairman refuses
(b) Prepare and keep the minutes of all meetings of to assume office, fails to qualify, is convicted of a
the katipunan ng kabataan and sangguniang felony, voluntarily resigns, dies, is permanently
kabataan; incapacitated, is removed from office, or has been
absent without leave for more than three (3)
consecutive months, the sangguniang kabataan
(c) Prepare all forms necessary for the conduct of
member who obtained the next highest number of
registrations, elections, initiatives, referenda, or
votes in the election immediately preceding shall
plebiscites, in coordination with the barangay
assume the office of the chairman for the unexpired
secretary and the COMELEC; and
portion of the term, and shall discharge the powers
and duties, and enjoy the rights and privileges
(d) Perform such other duties and discharge such appurtenant to the office. In case the said member
other functions as the chairman of the sangguniang
refuses to assume the position or fails to qualify, the
kabataan may prescribe or direct. sangguniang member obtaining the next highest
number of votes shall assume the position of the
Section 433. Sangguniang Kabataan Treasurer. - The chairman for the unexpired portion of the term.
sangguniang kabataan treasurer shall:
(b) Where two (2) or more sangguniang kabataan
(a) Take custody of all sangguniang kabataan members obtained the same next highest number of
property and funds not otherwise deposited with votes, the other sangguniang kabataan members
the city or municipal treasurer; shall conduct an election to choose the successor to
the chairman from among the said members.
(b) Collect and receive contributions, monies,
materials, and all other sources intended for the (c) After the vacancy shall have been filled, the
sangguniang kabataan and katipunan ng kabataan; sangguniang kabataan chairman shall call a special
election to complete the membership of said
(c) Disburse funds in accordance with an approved sanggunian. Such sangguniang kabataan member
budget of the sangguniang kabataan; shall hold office for the unexpired portion of the
term of the vacant seat.
(d) Certify to the availability of funds whenever
necessary; (d) In case of suspension of the sangguniang
kabataan chairman, the successor, as determined in
(e) Submit to the sangguniang kabataan and to the subsections (a) and (b) of this Section shall assume
sangguniang barangay certified and detailed the position during the period of such suspension.
statements of actual income and expenditures at the
end of every month; and CHAPTER IX
Pederasyon ng mga Sangguniang Kabataan
(f) Perform such other duties and discharge such
other functions as the chairman of the sangguniang Section 436. Pederasyon ng mga Kabataan. -
kabataan may direct.
(a) There shall be an organization of all the
Section 434. Privileges of Sangguniang Kabataan Officials. - pederasyon ng mga sangguniang kabataan to be
The sangguniang kabataan chairman shall have the same known as follows:
privileges enjoyed by other sangguniang barangay officials
 (1) in municipalities pambayang pederasyon and sangguniang bayan, as the case may be, without
ng mga sangguniang kabataan; need of further appointment.

(2) in cities, panlungsod na pederasyon ng (b) The vice-president of the pederasyon whose
mga sangguniang kabataan; president has been elected as president of a higher
pederasyon shall serve as ex-officio member of the
(3) in provinces, panlalawigang pederasyon sanggunian concerned without need of further
ng mga kabataan; appointment.

(4) in special metropolitan political (c) The pederasyon president or vice-president, as

subdivisions, pangmetropolitan pederasyon the case may be, shall be the chairman of the
ng mga sangguniang kabataan; and committee on youth and sports development of the
sanggunian concerned.
(5) on the national level pambansang
pederasyon ng mga sangguniang kabataan. CHAPTER X
Linggo ng Kabataan
(b) The pederasyon ng mga sangguniang kabataan
shall, at all levels, elect from among themselves the Section 439. Observance of Linggo ng Kabataan. -
president, vice- president and such other officers as
may be necessary and shall be organized in the (a) Every barangay, municipality, city and province
following manner: shall, in coordination with the pederasyon ng mga
sangguniang kabataan at all levels, conduct an
(1) The panlungsod and pambayang annual activity to be known as the Linggo ng
pederasyon shall be composed of the Kabataan on such date as shall be determined by the
sangguniang kabataan chairmen of Office of the President.
barangays in the city or municipality,
respectively; (b) The observance of the Linggo ng Kabataan shall
include the election of the counterparts of all local
(2) The panlalawigang pederasyon shall be elective and appointive officials, as well as heads of
composed of presidents of the panlungsod national offices or agencies stationed or assigned in
and pambayang pederasyon; the territorial jurisdiction of the local government
unit, among in-school and community youth residing
(3) The pangmetropolitang pederasyon shall in the local government unit concerned from ages
be composed of presidents of the thirteen (13) to seventeen (17). During said week,
panlungsod and pambayan pederasyon; they shall hold office as boy and girl officials and
shall perform such duties and conduct such activities
as may be provided in the ordinance enacted
(c) The elected presidents of the pederasyon at the
provincial, highly urbanized city, and metropolitan pursuant to this Chapter.
political subdivision levels shall constitute the
pambansang katipunan ng mga sangguniang TITLE II
kabataan. THE MUNICIPALITY

Section 437. Constitution and By-Laws. - The term of office, CHAPTER I

manner of election, removal and suspension of the officers of Role and Creation of the Municipality
the pederasyon ng mga sangguniang kabataan at all levels
shall be governed by the constitution and by-laws of the Section 440. Role of the Municipality. - The municipality,
pederasyon in conformity with the provisions of this Code consisting of a group of barangays, serves primarily as a
and national policies on youth. general purpose government for the coordination and
delivery of basic, regular and direct services and effective
Section 438. Membership in the Sanggunian. - governance of the inhabitants within its territorial
jurisdiction.
(a) A sangguniang kabataan chairman shall, upon
certification of his election by the COMELEC and Section 441. Manner of Creation. - A municipality may be
during his tenure of office is elected as pederasyon created, divided, merged, abolished, or its boundary
president, serve as an ex-officio member of the substantially altered only by an Act of Congress and subject
sangguniang panlalawigan, sangguniang panlungsod, 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 otherwise be (b) In addition thereto, the mayor may appoint a
provided in the said Act, the plebiscite shall be held within municipal administrator, a municipal legal officer, a
one hundred twenty (120) days from the date of its municipal agriculturist, a municipal environment and
effectivity. natural resources officer, a municipal social welfare
and development officer, a municipal architect, and
Section 442. Requisites for Creation. - a municipal information officer.

(a) A municipality may be created if it has an average (c) The sangguniang bayan may:
annual income, as certified by the provincial
treasurer, of at least Two million five hundred (1) Maintain existing offices not mentioned
thousand pesos (P2,500,000.00) for the last two (2) in subsections (a) and (b) hereof;
consecutive years based on the 1991 constant
prices; a population of at least twenty-five thousand (2) Create such other offices as may be
(25,000) inhabitants as certified by the National necessary to carry out the purposes of the
Statistics Office; and a contiguous territory of at least municipal government; or
fifty (50) square kilometers as certified by the Lands
Management Bureau: Provided, That the creation (3) Consolidate the functions of any office
thereof shall not reduce the land area, population or with those of another in the interest of
income of the original municipality or municipalities efficiency and economy.
at the time of said creation to less than the
minimum requirements prescribed herein.
(d) Unless otherwise provided herein, heads of
departments and offices shall be appointed by the
(b) The territorial jurisdiction of a newly-created municipal mayor with the concurrence of the
municipality shall be properly identified by metes majority of all the sangguniang bayan members,
and bounds. The requirement on land area shall not subject to civil service law, rules and regulations. The
apply where the municipality proposed to be created sangguniang bayan shall act on the appointment
is composed of one (1) or more islands. The territory within fifteen (15) days from the date of its
need not be contiguous if it comprises two (2) or submission; otherwise, the same shall be deemed
more islands. confirmed.

(c) The average annual income shall include the (e) Elective and appointive municipal officials shall
income accruing to the general fund of the receive such compensation, allowances and other
municipality concerned, exclusive of special funds, emoluments as may be determined by law or
transfers and non-recurring income. ordinance, subject to the budgetary limitations on
personal services as prescribed in Title Five, Book
(d) Municipalities existing as of the date of the Two of this Code: Provided, That no increase in
effectivity of this Code shall continue to exist and compensation of the mayor, vice-mayor, and
operate as such. Existing municipal districts sangguniang bayan members shall take effect until
organized pursuant to presidential issuances or after the expiration of the full term of all the elective
executive orders and which have their respective set local officials approving such increase.
of elective municipal officials holding office at the
time of the effectivity of this Code shall henceforth CHAPTER III
be considered as regular municipalities. Officials and Offices Common to All Municipalities

CHAPTER II ARTICLE I
Municipal Officials in General The Municipal Mayor

Section 443. Officials of the Municipal Government. - Section 444. The Chief Executive: Powers, Duties, Functions
and Compensation. -
(a) There shall be in each municipality a municipal
mayor, a municipal vice-mayor, sangguniang bayan (a) The municipal mayor, as the chief executive of
members, a secretary to the sangguniang bayan, a the municipal government, shall exercise such
municipal treasurer, a municipal assessor, a powers and performs such duties and functions as
municipal accountant, a municipal budget officer, a provided by this Code and other laws.
municipal planning and development coordinator, a
municipal engineer/building official, a municipal
(b) For efficient, effective and economical
health officer and a municipal civil registrar.
governance the purpose of which is the general
welfare of the municipality and its inhabitants all bonds, contracts, and
pursuant to Section 16 of this Code, the municipal obligations, and such other
mayor shall: documents made pursuant to law
or ordinance;
(1) Exercise general supervision and control
over all programs, projects, services, and (vii) Carry out such emergency
activities of the municipal government, and measures as may be necessary
in this connection, shall: during and in the aftermath of
man-made and natural disasters
(i) Determine the guidelines of and calamities;
municipal policies and be
responsible to the sangguniang (viii) Determine, according to law
bayan for the program of or ordinance, the time, manner
government; and place of payment of salaries or
wages of the officials and
(ii) Direct the formulation of the employees of the municipality;
municipal development plan, with
the assistance of the municipal (ix) Allocate and assign office space
development council, and upon to municipal and other officials and
approval thereof by the employees who, by law or
sangguniang bayan, implement the ordinance, are entitled to such
same; space in the municipal hall and
other buildings owned or leased by
(iii) At the opening of the regular the municipal government;
session of the sangguniang bayan
for every calendar year and, as (x) Ensure that all executive
may be deemed necessary, present officials and employees of the
the program of government and municipality faithfully discharge
propose policies and projects for their duties and functions as
the consideration of the provided by law and this Code, and
sangguniang bayan as the general cause to be instituted
welfare of the inhabitants and the administrative or judicial
needs of the municipal proceedings against any official or
government may require; employee of the municipality who
may have committed as offense in
(iv) Initiate and propose legislative the performance of his official
measures to the sangguniang duties;
bayan and, from time to time as
the situation may require, provide (xi) Examine the books, records
such information and data needed and other documents of all offices,
or requested by said sanggunian in officials, agents or employees of
the performance of its legislative the municipality and in aid of his
functions; executive powers and authority,
require all national officials and
(v) Appoint all officials and employees stationed in or assigned
employees whose salaries and to the municipality to make
wages are wholly or mainly paid available to him such books,
out of municipal funds and whose records, and other documents in
appointments are not otherwise their custody, except those
provided for in this Code, as well as classified by law as confidential;
those he may be authorized by law
to appoint; (xii) Furnish copies of executive
orders issued by him to the
(vi) Upon authorization by the provincial governor within seventy-
sangguniang bayan, represent the two (72) hours after their issuance:
municipality in all its business Provided, That municipalities of
transactions and sign on its behalf Metropolitan Manila Area and that
of any metropolitan political
subdivision shall furnish copies of municipal officials and employees
said executive orders to the who are injured while in the
metropolitan authority council performance of their official duties
chairman and to the Office of the and functions;
President;
(xviii) Solemnize marriages, any
(xiii) Visit component barangays of provision of law to the contrary
the municipality at least once notwithstanding;
every six (6) months to deepen his
understanding of problems and (xix) Conduct a palarong bayan, in
conditions therein, listen and give coordination with the Department
appropriate counsel to local of Education, Culture and Sports,
officials and inhabitants, inform as an annual activity which shall
the component barangay officials feature traditional sports and
and inhabitants of general laws disciplines included in national and
and ordinances which especially international games; and
concern them, and otherwise
conduct visits and inspections to (xx) Submit to the provincial
the end that the governance of the governor the following reports: an
municipality will improve the annual report containing a
quality of life of the inhabitants; summary of all matters pertaining
to the management,
(xiv) Act on leave applications of administration and development
officials and employees appointed of the municipality and all
by him and the commutation of information and data relative to its
the monetary value of leave credits political, social and economic
according to law; conditions; and supplemental
reports when unexpected events
(xv) Authorize official trips outside and situations arise at any time
of the municipality of municipal during the year, particularly when
officials and employees for a man-made or natural disasters or
period not exceeding thirty (30) calamities affect the general
days; welfare of the municipality,
province, region or country.
(xvi) Call upon any national official mayors of municipalities of the
or employee stationed in or Metropolitan Manila Area and
assigned to the municipality to other metropolitan political
advise him on matters affecting subdivisions shall submit said
the municipality and to make reports to their respective
recommendations thereon, or to metropolitan council chairmen and
coordinate in the formulation and to the Office of the President;
implementation of plans, programs
and projects, and when (2) Enforce all laws and ordinances relative
appropriate, initiate an to the governance of the municipality and
administrative or judicial action the exercise of its corporate powers
against a national government provided for under Section 22 of this Code
official or employee who may have implement all approved policies, programs,
committed an offense in the projects, services and activities of the
performance of his official duties municipality and, in addition to the
while stationed in or assigned to foregoing, shall:
the local government unit
concerned; (i) Ensure that the acts of the
municipality's component
(xvii) Subject to availability of barangays and of its officials and
funds, authorize payment of employees are within the scope of
medical care, necessary their prescribed powers, functions,
transportation, subsistence, duties and responsibilities;
hospital or medical fees of
 (ii) Call conventions, conferences, calendar year, in accordance with
seminars or meetings of any the budget preparation process
elective and appointive officials of under Title Five, Book II of this
the municipality, including Code;
provincial officials and national
officials and employees stationed (ii) Prepare and submit to the
in or assigned to the municipality sanggunian for approval the
at such time and place and on such executive and supplemental
subject as he may deem important budgets of the municipality for the
for the promotion of the general ensuing calendar year in the
welfare of the local government manner provided for under Title
unit and its inhabitants; Five, Book II of this Code;

(iii) Issue such executive orders as (iii) Ensure that all taxes and other
are necessary for the proper revenues of the municipality are
enforcement and execution of laws collected and that municipal funds
and ordinances; are applied in accordance with law
or ordinance to the payment of
(iv) Be entitled to carry the expenses and settlement of
necessary firearm within his obligations of the municipality;
territorial jurisdiction;
(iv) Issue licenses and permits and
(v) Act as the deputized suspend or revoke the same for
representative of the National any violation of the conditions
Police Commission, formulate the upon which said licenses or
peace and order plan of the permits had been issued, pursuant
municipality and upon its approval to law or ordinance;
implement the same and exercise
general and operational control (v) Issue permits, without need of
and supervision over the local approval therefor from any
police in the municipality in national agency, for the holding of
accordance with R.A. No 6975; activities for any charitable or
welfare purpose, excluding
(vi) Call upon the appropriate law prohibited games of chance or
enforcement agencies to suppress shows contrary to law, public
disorder, riot, lawless violence, policy and public morals;
rebellion or sedition or to
apprehend violators of the law (vi) Require owners of illegally
when public interest so requires constructed houses, buildings or
and the municipal police forces are other structures to obtain the
inadequate to cope with the necessary permit, subject to such
situation or the violators; fines and penalties as may be
imposed by law or ordinance, or to
(3) Initiate and maximize the generation of make necessary changes in the
resources and revenues, and apply the construction of the same when
same to the implementation of said construction violates any law
development plans, program objectives and or ordinance, or to order the
priorities as provided for under Section 18 demolition or removal of said
of this Code, particularly those resources house, building or structure within
and revenues programmed for gro- the period prescribed by law or
industrial development and country-wide ordinance;
growth and progress, and relative thereto,
shall: (vii) Adopt adequate measures to
safeguard and conserve land,
(i) Require each head of an office mineral, marine, forest, and other
or department to prepare and resources of the municipality;
submit an estimate of provide efficient and effective
appropriations for the ensuing property and supply management
 in the municipality; and protect the (a) The vice-mayor shall:
funds, credits, rights and other
properties of the municipality; and (1) Be the presiding officer of the
sangguniang bayan and sign all warrants
(viii) Institute or cause to be drawn on the municipal treasury for all
instituted administrative or judicial expenditures appropriated for the
proceedings for violation of operation of the sangguniang bayan;
ordinances in the collection of
taxes, fees or charges, and for the (2) Subject to civil service law, rules and
recovery of funds and property; regulations, appoint all officials and
and cause the municipality to be employees of the sangguniang bayan,
defended against all suits to ensure except those whose manner of
that its interests, resources and appointment is specifically provided in this
rights shall be adequately Code;
protected;
(3) Assume the office of the municipal
(4) Ensure the delivery of basic services and mayor for the unexpired term of the latter
the provision of adequate facilities as in the event of permanent vacancy as
provided for under Section 17 of this Code provided for in Section 44, Book I of this
and, in addition thereto, shall: Code;

(i) Ensure that the construction (4) Exercise the powers and perform the
and repair of roads and highways duties and functions of the municipal mayor
funded by the national in cases of temporary vacancy as provided
government shall be, as far as for in Section 46, Book I of this Code; and
practicable, carried out in a
spatially contiguous manner and in (5) Exercise such other powers and perform
coordination with the construction such other duties and functions as may be
and repair of the roads and bridges prescribed by law or ordinance.
of the municipality and the
province; and
(b) The vice-mayor shall receive a monthly
compensation corresponding to Salary Grade twenty
(ii) Coordinate the implementation five (25) as prescribed under R.A. No. 6758 and the
of technical services rendered by implementing guidelines issued pursuant thereto.
national and provincial offices,
including public works and
ARTICLE III
infrastructure programs in the
The Sangguniang Bayan
municipality; and
Section 446. Composition. -
(5) Exercise such other powers and perform
such other duties and functions as may be
(a) The sangguniang bayan, the legislative body of
prescribed by law or ordinance.
the municipality, shall be composed of the municipal
vice mayor as the presiding officer, the regular
(c) During his incumbency, the municipal mayor shall
sanggunian members, the president of the municipal
hold office in the municipal hall.
chapter of the liga ng mga barangay, the president of
the pambayang pederasyon ng mga sangguniang
(d) The municipal mayor shall receive a minimum kabataan, and the sectoral representatives, as
monthly compensation corresponding to Salary members.
Grade twenty-seven (27) as prescribed under R.A.
No. 6758 and the implementing guidelines issued
(b) In addition thereto, there shall be three (3)
pursuant thereto.
sectoral representatives: one (1) from the women;
and as shall be determined by the sanggunian
ARTICLE II concerned within ninety (90) days prior to the
The Vice Mayor holding of local elections, one (1) from the
agricultural or industrial workers, and one (1) from
Section 445. Powers, Duties and Compensation. - other sectors, including the urban poor, indigenous
cultural communities, or disabled persons.
 (c) The regular members of the sangguniang bayan (v) Enact ordinances intended to
and the sectoral representatives shall be elected in prevent, suppress and impose
the manner as may be provided for by law. appropriate penalties for habitual
drunkenness in public places,
Section 447. Powers, Duties, Functions and Compensation. - vagrancy, mendicancy,
prostitution, establishment and
(a) The sangguniang bayan, as the legislative body of maintenance of houses of ill
the municipality, shall enact ordinances, approve repute, gambling and other
resolutions and appropriate funds for the general prohibited games of chance,
welfare of the municipality and its inhabitants fraudulent devices and ways to
pursuant to Section 16 of this Code and in the obtain money or property, drug
proper exercise of the corporate powers of the addiction, maintenance of drug
municipality as provided for under Section 22 of this dens, drug pushing, juvenile
Code, and shall: delinquency, the printing,
distribution or exhibition of
obscene or pornographic materials
(1) Approve ordinances and pass
or publications, and such other
resolutions necessary for an efficient and
activities inimical to the welfare
effective municipal government, and in this
and morals of the inhabitants of
connection shall:
the municipality;
(i) Review all ordinances approved
(vi) Protect the environment and
by the sangguniang barangay and
impose appropriate penalties for
executive orders issued by the
acts which endanger the
punong barangay to determine
environment, such as dynamite
whether these are within the
fishing and other forms of
scope of the prescribed powers of
destructive fishing, illegal logging
the sanggunian and of the punong
and smuggling of logs, smuggling
barangay;
of natural resources products and
of endangered species of flora and
(ii) Maintain peace and order by fauna, slash and burn farming, and
enacting measures to prevent and
such other activities which result in
suppress lawlessness, disorder, pollution, acceleration of
riot, violence, rebellion or sedition eutrophication of rivers and lakes,
and impose penalties for the
or of ecological imbalance;
violation of said ordinances;
(vii) Subject to the provisions of
(iii) Approve ordinances imposing a this Code and pertinent laws,
fine not exceeding Two thousand determine the powers and duties
five hundred pesos (P2,500.00) or
of officials and employees of the
an imprisonment for a period not
municipality;
exceeding six (6) months, or both
in the discretion of the court, for
(viii) Determine the positions and
the violation of a municipal
salaries, wages, allowances and
ordinance;
other emoluments and benefits of
officials and employees paid
(iv) Adopt measures to protect the wholly or mainly from municipal
inhabitants of the municipality
funds and provide for expenditures
from the harmful effects of man- necessary for the proper conduct
made or natural disasters and
of programs. projects, services,
calamities and to provide relief
and activities of the municipal
services and assistance for victims
government;
during and in the aftermath of said
disasters or calamities and their
(ix) Authorize the payment of
return to productive livelihood
compensation to a qualified person
following said events;
not in the government service who
fills up a temporary vacancy or
grant honorarium to any qualified
 official or employee designated to (i) Approve the annual and
fill a temporary vacancy in a supplemental budgets of the
concurrent capacity, at the rate municipal government and
authorized by law; appropriate funds for specific
programs, projects, services and
(x) Provide a mechanism and the activities of the municipality, or for
appropriate funds therefor, to other purposes not contrary to
ensure the safety and protection of law, in order to promote the
all municipal government property, general welfare of the municipality
public documents, or records such and its inhabitants;
as those relating to property
inventory, land ownership, records (ii) Subject to the provisions of
of births, marriages, deaths, Book II of this Code and applicable
assessments, taxation, accounts, laws and upon the majority vote of
business permits, and such other all the members of the
records and documents of public sangguniang bayan, enact
interest in the offices and ordinances levying taxes, fees and
departments of the municipal charges, prescribing the rates
government; thereof for general and specific
purposes, and granting tax
(xi) When the finances of the exemptions, incentives or reliefs;
municipal government allow,
provide for additional allowances (iii) Subject to the provisions of
and other benefits to judges, Book II of this Code and upon the
prosecutors, public elementary majority vote of all the members of
and high school teachers, and the sangguniang bayan, authorize
other national government officials the municipal mayor to negotiate
stationed in or assigned to the and contract loans and other forms
municipality; of indebtedness;

(xii) Provide for legal assistance to (iv) Subject to the provisions of

barangay officials who, in the Book II of this Code and applicable
performance of their official duties laws and upon the majority vote of
or on the occasion thereof, have to all the members of the
initiate judicial proceedings or sangguniang bayan, enact
defend themselves against legal ordinances authorizing the floating
action; and of bonds or other instruments of
indebtedness, for the purpose of
(xii) Provide for group insurance or raising funds to finance
additional insurance coverage for development projects;
barangay officials, including
members of barangay tanod (v) Appropriate funds for the
brigades and other service units, construction and maintenance or
with public or private insurance the rental of buildings for the use
companies, when the finances of of the municipality and, upon the
the municipal government allow majority vote of all the members of
said coverage. the sangguniang bayan, authorize
the municipal mayor to lease to
(2) Generate and maximize the use of private parties such public
resources and revenues for the buildings held in a proprietary
development plans, program objectives and capacity, subject to existing laws,
priorities of the municipality as provided for rules and regulations;
under Section 18 of this Code with
particular attention to agro-industrial (vi) Prescribe reasonable limits and
development and countryside growth and restraints on the use of property
progress, and relative thereto, shall: within the jurisdiction of the
municipality:
(vii) Adopt a comprehensive land engaged in community growth-
use plan for the municipality: inducing industries, subject to the
Provided, That the formulation, provisions of Chapter 5, Title I,
adoption, or modification of said Book II of this Code.
plan shall be in coordination with
the approved provincial (xiii) Grant loans or provide grants
comprehensive land use plan; to other local government units or
to national, provincial and
(viii) Reclassify land within the municipal charitable, benevolent
jurisdiction of the municipality, or educational institutions:
subject to the pertinent provisions Provided, That said institutions are
of this Code; operated and maintained within
the municipality;
(ix) Enact integrated zoning
ordinances in consonance with the (xiv) Regulate the numbering of
approved comprehensive land use residential, commercial and other
plan, subject to existing laws, rules buildings; and
and regulations; established fire
limits or zones, particularly in (xv) Regulate the inspection,
populous centers; and regulate the weighing and measuring of articles
construction, repair or of commerce.
modification of buildings within
said fire limits or zones in (3) Subject to the provisions of Book II of
accordance with the provisions of this Code, grant franchises, enact
this Code; ordinances authorizing the issuance of
permits or licenses, or enact ordinances
(x) Subject to national law, process levying taxes, fees and charges upon such
and approve subdivision plans for conditions and for such purposes intended
residential, commercial, or to promote the general welfare of the
industrial purposes and other inhabitants of the municipality, and
development purposes, and collect pursuant to this legislative authority shall:
processing fees and other charges
the proceeds of which shall accrue (i) Fix and impose reasonable fees
entirely to the municipality: and charges for all services
Provided, however, That, where rendered by the municipal
approval by a national agency or government to private persons or
office is required, said approval entities;
shall not be withheld for more
than thirty (30) days from receipt
(ii) Regulate any business,
of the application. Failure to act on
occupation, or practice of
the application within the period
profession or calling which does
stated above shall be deemed as
not require government
approval thereof;
examination within the
municipality and the conditions
(xi) Subject to the provisions of under which the license for said
Book II of this Code, grant the business or practice of profession
exclusive privilege of constructing may be issued or revoked;
fish corrals or fish pens, or the
taking or catching of bangus fry,
(iii) Prescribe the terms and
prawn fry or kawag-kawag of fry of
conditions under which public
any species or fish within the
utilities owned by the municipality
municipal waters; shall be operated by the municipal
government or leased to private
(xii) With the concurrence of at persons or entities, preferably
least two-thirds (2/3) of all the cooperatives;
members of the sangguniang
bayan, grant tax exemptions,
incentives or reliefs to entities
 (iv) Regulate the display of and fix administrator or tenant concerned
the license fees for signs, to pay the expenses of the same;
signboards, or billboards at the or require the filling up of any land
place or places where the or premises to a grade necessary
profession or business advertised for proper sanitation;
thereby is, in whole or in part,
conducted; (iii) Regulate the disposal of clinical
and other wastes from hospitals,
(v) Any law to the contrary clinics and other similar
notwithstanding, authorize and establishments;
license the establishment,
operation, and maintenance of (iv) Regulate the establishment,
cockpits, and regulate cockfighting operation and maintenance of
and commercial breeding of cafes, restaurants, beerhouses,
gamecocks: Provided, That existing hotels, motels, inns, pension
rights should not be prejudiced; houses, lodging houses, and other
similar establishments, including
(vi) Subject to the guidelines tourist guides and transports;
prescribed by the Department of
Transportation and (v) Regulate the sale, giving away
Communications, regulate the or dispensing of any intoxicating
operation of tricycles and grant malt, vino, mixed or fermented
franchises for the operation liquors at any retail outlet;
thereof within the territorial
jurisdiction of the municipality; (vi) Regulate the establishment
and provide for the inspection of
(vii) Upon approval by a majority steam boilers or any heating
vote of all the members of the device in buildings and the storage
sangguniang bayan, grant a of inflammable and highly
franchise to any person, combustible materials within the
partnership, corporation, or municipality;
cooperative to establish, construct,
operate and maintain ferries, (vii) Regulate the establishment,
wharves, markets or operation, and maintenance of
slaughterhouses, or such other entertainment or amusement
similar activities within the facilities, including theatrical
municipality as may be allowed by performances, circuses, billiards
applicable laws: Provided, That, pools, public dancing schools,
cooperatives shall be given public dance halls, sauna baths,
preference in the grant of such a massage parlors, and other places
franchise. of entertainment or amusement;
regulate such other events or
(4) Regulate activities relative to the use of activities for amusement or
land, buildings and structures within the entertainment, particularly those
municipality in order to promote the which tend to disturb the
general welfare and for said purpose shall: community or annoy the
inhabitants, or require the
(i) Declare, prevent or abate any suspension or suppression of the
nuisance; same; or, prohibit certain forms of
amusement or entertainment in
(ii) Require that buildings and the order to protect the social and
premises thereof and any land moral welfare of the community;
within the municipality be kept and
maintained in a sanitary condition; (viii) Provide for the impounding of
impose penalties for any violation stray animals; regulate the keeping
thereof, or upon failure to comply of animals in homes or as part of a
with said requirement, have the business, and the slaughter, sale or
work done and require the owner, disposition of the same; and adopt
 measures to prevent and penalize of conveyances for hire; designate
cruelty to animals; and stands to be occupied by public
vehicles when not in use; regulate
(ix) Regulate the establishment, the putting up of signs, signposts,
operation, and maintenance of awnings and awning posts on the
funeral parlors and the burial or streets; provide for the lighting,
cremation of the dead, subject to cleaning and sprinkling of streets
existing laws, rules and and public places;
regulations.
(vi) Regulate traffic on all streets
(5) Approve ordinances which shall ensure and bridges, prohibit the putting
the efficient and effective delivery of the up of encroachments or obstacles
basic services and facilities as provided for thereon, and, when necessary in
under Section 17 of this Code, and in the interest of public welfare,
addition to said services and facilities, shall: authorize the removal of
encroachments and illegal
(i) Provide for the establishment, constructions in public places;
maintenance, protection, and
conservation of communal forests (vii) Subject to existing laws,
and watersheds, tree parks, provide for the establishment,
greenbelts, mangroves, and other operation, maintenance, and
similar forest development repair of an efficient waterworks
projects; system to supply water for the
inhabitants; regulate the
(ii) Establish markets, construction, maintenance, repair
slaughterhouses or animal corrals and use of hydrants, pumps,
and authorize the operation cisterns and reservoirs; protect the
thereof, and regulate the purity and quantity of the water
construction and operation of supply of the municipality and, for
private markets, talipapas or other this purpose, extend the coverage
similar buildings and structures; of appropriate ordinances over all
territory within the drainage area
of said water supply and within
(iii) Authorize the establishment,
one hundred (100) meters of the
maintenance and operation of
reservoir, conduit, canal, aqueduct,
ferries, wharves, and other
pumping station, or watershed
structures, and marine and
used in connection with the water
seashore or offshore activities
service; and regulate the
intended to accelerate
consumption, use or wastage of
productivity;
water;
(iv) Regulate the preparation and
(viii) Regulate the drilling and
sale of meat, poultry, fish,
excavation of the ground for laying
vegetables, fruits, fresh dairy
of water, gas, sewer, and other
products, and other foodstuffs for
pipes and the construction, repair
public consumption;
and maintenance of public drains,
sewers, cesspools, tunnels and
(v) Regulate the use of streets,
similar structures; regulate the
avenues, alleys, sidewalks, bridges, placing of poles and the use of
parks and other public places and
crosswalks, curbs, and gutters;
approve the construction,
adopt measures to ensure public
improvement, repair and safety against open canals,
maintenance of the same;
manholes, live wires and other
establish bus and vehicle stops and
similar hazards to life and
terminals or regulate the use of property; and regulate the
the same by privately-owned
construction and use of private
vehicles which serve the public; water closets, privies and other
regulate garages and the operation
similar structures in buildings and the operation of centers and
homes; facilities for said needy and
disadvantaged persons;
(ix) Regulate the placing, stringing,
attaching, installing, repair and (xv) Establish and provide for the
construction of all gas mains, maintenance and improvement of
electric, telegraph and telephone jails and detention centers,
wires, conduits, meters and other institute sound jail management
apparatus; and, provide for the programs, and appropriate funds
correction, condemnation or for the subsistence of detainees
removal of the same when found and convicted prisoners in the
to be dangerous, defective or municipality;
otherwise hazardous to the
welfare of the inhabitants; (xvi) Establish a municipal council
whose purpose is the promotion of
(x) Subject to the availability of culture and the arts, coordinate
funds and to existing laws, rules with government agencies and
and regulations, establish and non-governmental organizations
provide for the operation of and, subject to the availability of
vocational and technical schools funds, appropriate funds for the
and similar post-secondary support and development of the
institutions and, with the approval same; and
of the Department of Education.
Culture and Sports, fix and collect (xvi) Establish a municipal council
reasonable fees and other school for the orderly which shall
charges on said institutions, formulate policies and adopt
subject to existing laws on tuition measures mutually beneficial to
fees; the elderly and to the community;
provide incentives for non-
(xi) Establish a scholarship fund for governmental agencies and
poor but deserving students entities and, subject to the
residing within the municipality in availability of funds, appropriate
schools located within its funds to support programs and
jurisdiction; projects for the benefit of the
elderly; and
(xii) Approve measures and adopt
quarantine regulations to prevent (6) Exercise such other powers and perform
the introduction and spread of such other duties and functions as may be
diseases; prescribed by law or ordinance.

(xiii) Provide for an efficient and (b) The members of the sangguniang bayan shall
effective system of solid waste and receive a minimum monthly compensation
garbage collection disposal and corresponding to Salary Grade twenty-four (24) as
prohibit littering and the placing or prescribed under R.A. No. 6758 and the
throwing of garbage, refuse and implementing guidelines issued pursuant thereto:
other filth and wastes; Provided, That, in municipalities in Metropolitan
Manila Area and other metropolitan political
(xiv) Provide for the care of subdivisions, members of the sangguniang bayan
paupers, the aged, the sick, shall receive a minimum monthly compensation
persons of unsound mind, disabled corresponding to Salary grade twenty-five (25).
persons, abandoned minors,
juvenile delinquents, drug TITLE III
dependents, abused children and THE CITY
other needy and disadvantaged
persons, particularly children and CHAPTER I
youth below eighteen (18) years of Role and Creation of the City
age and, subject to availability of
funds, establish and provide for
Section 448. Role of the City. - The city, consisting of more component cities whose charters prohibit their voters from
urbanized and developed barangays. serves as a general voting for provincial elective officials. Independent
purpose government for the coordination and delivery of component cities shall be independent of the province.
basic, regular, and direct services and effective governance of Independent component cities are those
the inhabitants within its territorial jurisdiction.

Section 449. Manner of Creation. - A city may be created,

divided, merged, abolished, or its boundary substantially Section 452. Highly Urbanized Cities.
altered, only by an Act of Congress, and subject to approval
by a majority of the votes cast in a plebiscite to be conducted (a) Cities with a minimum population of two
by the COMELEC in the local government unit or units directly hundred thousand (200,000) inhabitants as certified
affected. Except as may otherwise be provided in such Act. by the National Statistics Office, and within the latest
the plebiscite shall be held within one hundred twenty (120) annual income of at least Fifty Million Pesos
days from the date of its effectivity. (P50,000,000.00) based on 1991 constant prices, as
certified by the city treasurer, shall be classified as
Section 450. Requisites for Creation. highly urbanized cities.

(a) A municipality or a cluster of barangays may be (b) Cities which do not meet above requirements
converted into a component city if it has an average shall be considered component cities of the province
annual income, as certified by the Department of in which they are geographically located. If a
Finance, of at least Twenty million (P20,000,000.00) component city is located within the boundaries of
for the last two (2) consecutive years based on 1991 two (2) or more provinces, such city shall be
constant prices, and if it has either of the following considered a component of the province of which it
requisites: used to be a municipality.

(i) a contiguous territory of at least one (c) Qualified voters of highly urbanized cities shall
hundred (100) square kilometers, as remain excluded from voting for elective provincial
certified by the Lands Management Bureau; officials.
or
Unless otherwise provided in the Constitution or this
(ii) a population of not less than one Code, qualified voters of independent component
hundred fifty thousand (150,000) cities shall be governed by their respective charters,
inhabitants, as certified by the National as amended, on the participation of voters in
Statistics Office: provincial elections.

Provided, That, the creation thereof shall Qualified voters of cities who acquired the right to
not reduce the land area, population, and vote for elective provincial officials prior to the
income of the original unit or units at the classification of said cities as highly-urbanized after
time of said creation to less than the the ratification of the Constitution and before the
minimum requirements prescribed herein. effectivity of this Code, shall continue to exercise
such right.
(b) The territorial jurisdiction of a newly-created city
shall be properly identified by metes and bounds. Section 453. Duty to Declare Highly Urbanized Status. - It shall
The requirement on land area shall not apply where be the duty of the President to declare a city as highly
the city proposed to be created is composed of one urbanized within thirty (30) days after it shall have met the
(1) or more islands. The territory need not be minimum requirements prescribed in the immediately
contiguous if it comprises two (2) or more islands. preceding section, upon proper application therefor and
ratification in a plebiscite by the qualified voters therein.
(c) The average annual income shall include the
income accruing to the general fund, exclusive of CHAPTER II
specific funds, transfers, and non-recurring income. City Officials in General

Section 451. Cities, Classified. - A city may either be Section 454. Officials of the City Government.
component or highly urbanized: Provided, however, That the
criteria established in this Code shall not affect the (a) There shall be in each city a mayor, a vice-mayor,
classification and corporate status of existing cities. sangguniang panlungsod members, a secretary to
the sangguniang panlungsod, a city treasurer, a city
 assessor, a city accountant, a city budget officer, a ARTICLE I
city planning and development coordinator, a city The City Mayor
engineer, a city health officer, a city civil registrar, a
city administrator, a city legal officer, a city Section 455. Chief Executive; Powers, Duties and
veterinarian, a city social welfare and development Compensation.
officer, and a city general services officer.
(a) The city mayor, as chief executive of the city
(b) In addition thereto, the city mayor may appoint a government, shall exercise such powers and perform
city architect, a city information officer, a city such duties and functions as provided by this Code
agriculturist, a city population officer, a city and other laws.
environment and natural resources officer, and a city
cooperatives officer. (b) For efficient, effective and economical
governance the purpose of which is the general
The appointment of a city population officer shall be welfare of the city and its inhabitants pursuant to
optional in the city: Provided, however, That cities Section 16 of this Code, the city mayor shall:
which have existing population offices shall continue
to maintain such offices for a period of five (5) years (1) Exercise general supervision and control
from the date of the effectivity of this Code, after over all programs, projects, services, and
which said offices shall become optional. activities of the city government. and in this
connection, shall:
(c) The sangguniang panlungsod may:
(i) Determine the guidelines of city
(1) Maintain existing offices not mentioned policies and be responsible to the
in subsections (a) and (b) hereof; sangguniang panlungsod for the
program of government;
(2) Create such other offices as may be
necessary to carry out the purposes of the (ii) Direct the formulation of the
city government; or city development plan, with the
assistance of the city development
(3) Consolidate the functions of any office council, and upon approval thereof
with those of another in the interest of by the sangguniang panlungsod,
efficiency and economy. implement the same;

(d) Unless otherwise provided herein, heads of (iii) Present the program of
departments and offices shall be appointed by the government and propose policies
city mayor with the concurrence of the majority of and projects for the consideration
all the sangguniang panlungsod members, subject to of the sangguniang panlungsod at
civil service law, rules and regulations. The the opening of the regular session
sangguniang panlungsod shall act on the of the sangguniang panlungsod
appointment within fifteen (15) days from the date every calendar year and as often as
of its submission, otherwise the same shall be may be deemed necessary as the
deemed confirmed. general welfare of the inhabitants
and the needs of the city
(e) Elective and appointive city officials shall receive government may require;
such compensation, allowances, and other
emoluments as may be determined by law or (iv) Initiate and propose legislative
ordinance, subject to the budgetary limitations on measures to the sangguniang
personal services prescribed under Title Five, Book II panlungsod and as often as may be
of this Code: Provided, That, no increase in deemed necessary, provide such
compensation of the mayor, vice-mayor and information and data needed or
sangguniang panlungsod members shall take effect requested by said sanggunian in
until after the expiration of the full term of the said the performance of its legislative
local officials approving such increase. functions;

CHAPTER III (v) Appoint all officials and

Officials and Offices Common to All Cities employees whose salaries and
wages are wholly or mainly paid
out of city funds and whose (xii) Furnish copies of executive
appointments are not otherwise orders issued by him, to the
provided for in this Code, as well as provincial governor in the case of
those he may be authorized by law component city mayors, to the
to appoint; Office of the President in the case
of highly-urbanized city mayors
(vi) Represent the city in all its and to their respective
business transactions and sign in metropolitan council chairmen in
its behalf all bonds, contracts, and the case of mayors of cities in the
obligations, and such other Metropolitan Manila Area and
documents upon authority of the other metropolitan political
sangguniang panlungsod or subdivisions, within seventy-two
pursuant to law or ordinance; (72) hours after their issuances;

(vii) Carry out such emergency (xiii) Visit component barangays of

measures as may be necessary the city at least once every six (6)
during and in the aftermath of months to deepen his
man-made and natural disasters understanding of problems and
and calamities; conditions, listen and give
appropriate counsel to, local
(viii) Determine the time, manner officials and inhabitants, inform
and place of payment of salaries or the component barangay officials
wages of the officials and and inhabitants of general laws
employees of the city, in and ordinances which especially
accordance with law or ordinance; concern them, and otherwise
conduct visits and inspections to
ensure that the governance of the
(ix) Allocate and assign office space
city will improve the quality of life
to city and other officials and
employees who, by law or of the inhabitants;
ordinance, are entitled to such
space in the city hall and other (xiv) Act on leave applications of
buildings owned or leased by the officials and employees appointed
city government; by him and the commutation of
the monetary value of their leave
credits in accordance with law;
(x) Ensure that all executive
officials and employees of the city
faithfully discharge their duties and (xv) Authorize official trips of city
functions as provided by law and officials and employees outside of
this Code, and cause to be the city for a period not exceeding
instituted administrative or judicial thirty (30) days;
proceedings against any official or
employee of the city who may (xvi) Call upon any national official
have committed an offense in the or employee stationed in or
performance of his official duties; assigned to the city to advise him
on matters affecting the city and to
(xi) Examine the books, records make recommendations thereon;
and other documents of all offices, coordinate with said official or
officials, agents or employees of employee in the formulation and
the city and, in aid of his executive implementation of plans, programs
powers and authority, require all and projects; and, when
national officials and employees appropriate, initiate an
stationed in or assigned to the city administrative or judicial action
to make available to him such against a national government
books, records, and other official or employee who may have
documents in their custody, except committed an offense in the
those classified by law as performance of his official duties
confidential; while stationed in or assigned to
the city;
 (xvii) Authorize payment for (i) Ensure that the acts of the city's
medical care, necessary component barangays and of its
transportation, subsistence, officials and employees are within
hospital or medical fees of city the scope of their prescribed
officials and employees who are powers, duties and functions;
injured while in the performance
of their duties and functions, (ii) Call conventions, conferences,
subject to availability of funds; seminars, or meetings of any
elective and appointive officials of
(xviii) Solemnize marriage, any the city, including provincial
provision of law to the contrary officials and national officials and
notwithstanding; employees stationed in or assigned
to the city, at such time and place
(xix) Conduct an annual palarong and on such subject as he may
panlungsod, which shall feature deem important for the promotion
traditional sports and disciplines of the general welfare of the local
included in national and government unit and its
international games, in inhabitants;
coordination with the Department
of Education, Culture and Sports; (ii) Issue such executive orders for
and the faithful and appropriate
enforcement and execution of laws
(xx) Submit to the provincial and ordinances;
governor, in case of component
cities; to the Office of the (iv) Be entitled to carry the
President, in the case of highly- necessary firearm within his
urbanized cities; to their respective territorial jurisdiction;
metropolitan authority council
chairmen and to the Office of the (v) Act as the deputized
President, in case of cities of the representative of the National
Metropolitan Manila Area and Police Commission, formulate the
other metropolitan political peace and order plan of the city
subdivisions, the following reports: and upon its approval, implement
an annual report containing a the same; and as such exercise
summary of all matters pertinent general and operational control
to the management, and supervision over the local
administration and development police forces in the city, in
of the city and all information and accordance with R.A. No. 6975;
data relative to its political, social
and economic conditions; and (vi) Call upon the appropriate law
supplemental reports when enforcement agencies to suppress
unexpected events and situations disorder, riot, lawless violence,
arise at any time during the year, rebellion or sedition, or to
particularly when man-made or apprehend violators of the law
natural disasters or calamities when public interest so requires
affect the general welfare of the and the city police forces are
city, province, region or country; inadequate to cope with the
situations or the violators;
(2) Enforce all laws and ordinances relative
to the governance of the city and in the (3) Initiate and maximize the generation of
exercise of the appropriate corporate resources and revenues, and apply the
powers provided for under Section 22 of same to the implementation of
this Code, implement all approved policies, development plans, program objectives and
programs, projects, services and activities of priorities as provided for under Section 18
the city and, in addition to the foregoing, of this Code, particularly those resources
shall: and revenues programmed for agro-
industrial development and countryside
growth and progress and, relative thereto, (vii) Adopt adequate measures to
shall: safeguard and conserve land,
mineral, marine, forest, and other
(i) Require each head of an office resources of the city; provide
or department to prepare and efficient and effective property
submit an estimate of and supply management in the
appropriations for the ensuing city; and protect the funds, credits,
calendar year, in accordance with rights and other properties of the
the budget preparations process city; and
under Title Five, Book II of this
Code; (viii) Institute or cause to be
instituted administrative or judicial
(ii) Prepare and submit to the proceedings for violation of
sanggunian for approval the ordinances in the collection of
executive and supplemental taxes, fees or charges, and for the
budgets of the city for the ensuing recovery of funds and property;
calendar year in the manner and cause the city to be defended
provided for under Title Five, Book against all suits to ensure that its
II of this Code; interests, resources and rights shall
be adequately protected;
(iii) Ensure that all taxes and other
revenues of the city are collected, (4) Ensure the delivery of basic services and
and that city funds are applied to the provision of adequate facilities as
the payment of expenses and provided for under Section 17 of this Code
settlement of obligations of the and, in addition thereto, shall:
city, in accordance with law or
ordinance; (i) Ensure that the construction
and repair of roads and highways
(iv) Issue licenses and permits and funded by the national
suspend or revoke the same for government shall be, as far as
any violation of the conditions practicable, carried out in a
upon which said licenses or spatially contiguous manner and in
permits had been issued, pursuant coordination with the construction
to law or ordinance; and repair of the roads and bridges
of the city, and in the case of
(v) Issue permits, without need of component cities, of the city and of
approval therefor from any the province; and
national agency, for the holding of
activities for any charitable or (ii) Coordinate the implementation
welfare purpose, excluding of technical services, including
prohibited games of chance or public works and infrastructure
shows contrary to law, public programs, rendered by national
policy and public morals; offices in the case of highly
urbanized and independent
(vi) Require owners of illegally component cities, and by national
constructed houses, buildings or and provincial offices in the case of
other structures to obtain the component cities; and
necessary permit, subject to such
fines and penalties as may be (5) Exercise such other powers and perform
imposed by law or ordinance, or to such other duties and functions as may be
make necessary changes in the prescribed by law or ordinance.
construction of the same when
said construction violates any law (c) During his incumbency, the city mayor shall hold
or ordinance, or to order the office in the city hall.
demolition or removal of said
house, building or structure within (d) The city mayor shall receive a minimum monthly
the period prescribed by law or compensation corresponding to Salary Grade Thirty
ordinance;
 (30) as prescribed under R.A. No. 6758 and the (b) In addition thereto, there shall be three (3)
implementing guidelines issued pursuant thereto. sectoral representatives: one (1) from the women;
and as shall be determined by the sanggunian
ARTICLE II concerned within ninety (90) days prior to the
The City Vice-Mayor holding of the local elections, one (1) from
agricultural or industrial workers; and one (1) from
Section 456. Powers, Duties and Compensation. the other sectors, including the urban poor,
indigenous cultural communities, or disabled
persons.
(a) The city vice-mayor shall:

(c) The regular members of the sangguniang

(1) Be the presiding officer of the
panlungsod and the sectoral representatives shall be
sangguniang panlungsod and sign all
elected in the manner as may be provided for by
warrants drawn on the city treasury for all
law.
expenditures appropriated for the
operation of the sangguniang panlungsod;
Section 458. Powers, Duties, Functions and Compensation.
(2) Subject to civil service law, rules and
regulations, appoint all officials and (a) The sangguniang panlungsod, as the legislative
employees of the sangguniang panlungsod, body of the city, shall enact ordinances, approve
except those whose manner of resolutions and appropriate funds for the general
appointment is specifically provided in this welfare of the city and its inhabitants pursuant to
Code; 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:
(3) Assume the office of the city mayor for
the unexpired term of the latter in the
event of permanent vacancy as provided for (1) Approve ordinances and pass
in Section 44, Book I of this Code; resolutions necessary for an efficient and
effective city government, and in this
connection, shall:
(4) Exercise the powers and perform the
duties and functions of the city mayor in
cases of temporary vacancy as provided for (i) Review all ordinances approved
in Section 46, Book I of this Code; and by the sangguniang barangay and
executive orders issued by the
punong barangay to determine
(5) Exercise such other powers and perform
whether these are within the
such other duties and functions as may be
scope of the prescribed powers of
prescribed by law or ordinance.
the sanggunian and of the punong
barangay;
(b) The city vice-mayor shall receive a monthly
compensation corresponding to Salary Grade twenty
(ii) Maintain peace and order by
eight (28) for a highly urbanized city and Salary
enacting measures to prevent and
Grade twenty-six (26) for a component city, as
suppress lawlessness, disorder,
prescribed under R.A. No. 6758 and the
riot, violence, rebellion or sedition
implementing guidelines issued pursuant thereto.
and impose penalties for violation
of said ordinances;
ARTICLE III
The Sangguniang Panlungsod
(iii) Approve ordinances imposing a
fine not exceeding Five thousand
Section 457. Composition pesos (P5,000.00) or an
imprisonment for a period not
(a) The sangguniang panlungsod, the legislative body exceeding one (1) year, or both in
of the city, shall be composed of the city vice-mayor the discretion of the court, for the
as presiding officer, the regular sanggunian violation of a city ordinance;
members, the president of the city chapter of the
liga ng mga barangay, the president of the (iv) Adopt measures to protect the
panlungsod na pederasyon ng mga sangguniang
inhabitants of the city from the
kabataan, and the sectoral representatives, as harmful effects of man-made or
members.
natural disasters and calamities, and activities of the city
and to provide relief services and government;
assistance for victims during and in
the aftermath of said disasters or (ix) Authorize the payment of
calamities and their return to compensation to a qualified person
productive livelihood following not in the government service who
said events; fills up a temporary vacancy or
grant honorarium to any qualified
(v) Enact ordinances intended to official or employee designated to
prevent, suppress and impose fill a temporary vacancy in a
appropriate penalties for habitual concurrent capacity, at the rate
drunkenness in public places, authorized by law;
vagrancy, mendicancy,
prostitution, establishment and (x) Provide a mechanism and the
maintenance of houses of ill appropriate funds therefor, to
repute, gambling and other ensure the safety and protection of
prohibited games of chance, all city government property,
fraudulent devices and ways to public documents, or records such
obtain money or property, drug as those relating to property
addiction, maintenance of drug inventory, land ownership, records
dens, drug pushing, juvenile of births, marriages, deaths,
delinquency, the printing, assessments, taxation, accounts,
distribution or exhibition of business permits, and such other
obscene or pornographic materials records and documents of public
or publications, and such other interest in the offices and
activities inimical to the welfare departments of the city
and morals of the inhabitants of government;
the city.
(xi) When the finances of the city
(vi) Protect the environment and government allow, provide for
impose appropriate penalties for additional allowances and other
acts which endanger the benefits to judges, prosecutors,
environment, such as dynamite public elementary and high school
fishing and other forms of teachers, and other national
destructive fishing, illegal logging government officials stationed in
and smuggling of logs, smuggling or assigned to the city;
of natural resources products and
of endangered species of flora and (xii) Provide legal assistance to
fauna, slash and burn farming, and barangay officials who, in the
such other activities which result in performance of their official duties
pollution, acceleration of or on the occasion thereof, have to
eutrophication of rivers and lakes, initiate judicial proceedings or
or of ecological imbalance; defend themselves against legal
action; and
(vii) Subject to the provisions of
this Code and pertinent laws, (xiii) Provide for group insurance or
determine the powers and duties additional insurance coverage for
of officials and employees of the all barangay officials, including
city; members of barangay tanod
brigades and other service units,
(viii) Determine the positions and with public or private insurance
the salaries, wages, allowances and companies, when the finances of
other emoluments and benefits of the city government allow said
officials and employees paid coverage;
wholly or mainly from city funds
and provide for expenditures (2) Generate and maximize the use of
necessary for the proper conduct resources and revenues for the
of programs, projects, services, development plans, program objectives and
priorities of the city as provided for under (vi) Prescribe reasonable limits and
Section 18 of this Code, with particular restraints on the use of property
attention to agro-industrial development within the jurisdiction of the city;
and city-wide growth and progress, and
relative thereto, shall: (vii) Adopt a comprehensive land
use plan for the city: Provided,
(i) Approve the annual and That in the case of component
supplemental budgets of the city cities, the formulation, adoption or
government and appropriate funds modification of said plan shall be in
for specific programs, projects, coordination with the approved
services and activities of the city, provincial comprehensive land use
or for other purposes not contrary plan;
to law, in order to promote the
general welfare of the city and its (viii) Reclassify land within the
inhabitants; jurisdiction of the city, subject to
the pertinent provisions of this
(ii) Subject to the provisions of Code;
Book II of this Code and applicable
laws and upon the majority vote of (ix) Enact integrated zoning
all the members of the ordinances in consonance with the
sangguniang panlungsod, enact approved comprehensive land use
ordinances levying taxes, fees and plan, subject to existing laws, rules
charges, prescribing the rates and regulations; establish fire
thereof for general and specific limits or zones, particularly in
purposes, and granting tax populous centers; and regulate the
exemptions, incentives or reliefs; construction, repair or
modification of buildings within
(iii) Subject to the provisions of said fire limits or zones in
Book II of this Code and upon the accordance with the provisions of
majority vote of all the members of the Fire Code;
the sangguniang panlungsod,
authorize the city mayor to (x) Subject to national law, process
negotiate and contract loans and and approve subdivision plans for
other forms of indebtedness; residential, commercial, or
industrial purposes and other
(iv) Subject to the provisions of development purposes, and to
Book II of this Code and applicable collect processing fees and other
laws and upon the majority vote of charges, the proceeds of which
all the members of the shall accrue entirely to the city:
sangguniang panlungsod, enact Provided, however, That where
ordinances authorizing the floating approval of a national agency or
of bonds or other instruments of office is required, said approval
indebtedness, for the purpose of shall not be withheld for more
raising funds to finance than thirty (30) days from receipt
development projects; of the application. Failure to act on
the application within the period
(v) Appropriate funds for the stated above shall be deemed as
construction and maintenance or approval thereof;
the rental of buildings for the use
of the city; and, upon the majority (xi) Subject to the provisions of
vote of all the members of the Book II of this Code, grant the
sangguniang panlungsod, authorize exclusive privilege of constructing
the city mayor to lease to private fish corrals or fish pens, or the
parties such public buildings held taking or catching of bangus fry,
in a proprietary capacity, subject to prawn fry or kawag-kawag, or fry
existing laws, rules and of any species or fish within the
regulations; city waters;
 (xii) With the concurrence of at (iv) Regulate the display of and fix
least two-thirds (2/3) of all the the license fees for signs,
members of the sangguniang signboards, or billboards at the
panlungsod, grant tax exemptions, place or places where the
incentives or reliefs to entities profession or business advertised
engaged in community growth- thereby is, in whole or in part,
inducing industries, subject to the conducted;
provisions of Chapter 5, Title I,
Book II of this Code; (v) Any law to the contrary
notwithstanding, authorize and
(xiii) Grant loans or provide grants license the establishment,
to other local government units or operation, and maintenance of
to national, provincial, and city cockpits, and regulate cockfighting
charitable, benevolent or and commercial breeding of
educational institutions: Provided, gamecocks: Provided, That existing
That, said institutions are operated rights should not be prejudiced;
and maintained within the city;
(vi) Subject to the guidelines
(xiv) Regulate the numbering of prescribed by the Department of
residential, commercial and other Transportation and
buildings; and Communications, regulate the
operation of tricycles and grant
(xv) Regulate the inspection, franchises for the operation
weighing and measuring of articles thereof within the territorial
of commerce. jurisdiction of the city;

(3) Subject to the provisions of Book II of (vii) Upon approval by a majority

this Code, enact ordinances granting vote of all the members of the
franchises and authorizing the issuance of sangguniang panlungsod: grant a
permits or licenses, upon such conditions franchise to any person,
and for such purposes intended to promote partnership, corporation, or
the general welfare of the inhabitants of cooperative to do business within
the city and pursuant to this legislative the city; establish, construct,
authority shall: operate and maintain ferries,
wharves, markets or
(i) Fix and impose reasonable fees slaughterhouses; or undertake
and charges for all services such other activities within the city
rendered by the city government as may be allowed by existing laws:
to private persons or entities; Provided, That, cooperatives shall
be given preference in the grant of
such a franchise.
(ii) Regulate or fix license fees for
any business or practice of
profession within the city and the (4) Regulate activities relative to the use of
conditions under which the license land, buildings and structures within the
for said business or practice of city in order to promote the general welfare
profession may be revoked and and for said purpose shall:
enact ordinances levying taxes
thereon; (i) Declare, prevent or abate any
nuisance;
(iii) Provide for and set the terms
and conditions under which public (ii) Require that buildings and the
utilities owned by the city shall be premises thereof and any land
operated by the city government, within the city be kept and
and prescribe the conditions under maintained in a sanitary condition;
which the same may be leased to impose penalties for any violation
private persons or entities, thereof; or, upon failure to comply
preferably cooperatives; with said requirement, have the
work done at the expense of the
owner, administrator or tenant measures to prevent and penalize
concerned; or require the filling up cruelty to animals; and
of any land or premises to a grade
necessary for proper sanitation; (ix) Regulate the establishment,
operation and maintenance of
(iii) Regulate the disposal of clinical funeral parlors and the burial or
and other wastes from hospitals, cremation of the dead, subject to
clinics and other similar existing laws, rules and
establishments; regulations.

(iv) Regulate the establishment, (5) Approve ordinances which shall ensure
operation and maintenance of the efficient and effective delivery of the
cafes, restaurants, beerhouses, basic services and facilities as provided for
hotels, motels, inns, pension under Section 17 of this Code, and in
houses, lodging houses, and other addition to said services and facilities, shall:
similar establishments, including
tourist guides and transports; (i) Provide for the establishment,
maintenance, protection, and
(v) Regulate the sale, giving away conservation of communal forests
or dispensing of any intoxicating and watersheds, tree parks,
malt, vino, mixed or fermented greenbelts, mangroves, and other
liquors at any retail outlet; similar forest development
projects;
(vi) Regulate the establishment
and provide for the inspection of (ii) Establish markets,
steam boilers or any heating slaughterhouses or animal corrals
device in buildings and the storage and authorize the operation
of inflammable and highly thereof by the city government;
combustible materials within the and regulate the construction and
city; operation of private markets,
talipapas or other similar buildings
(vii) Regulate the establishment, and structures;
operation, and maintenance of any
entertainment or amusement (iii) Authorize the establishment,
facilities, including theatrical maintenance and operation by the
performances, circuses, billiard city government of ferries,
pools, public dancing schools, wharves, and other structures
public dance halls, sauna baths, intended to accelerate productivity
massage parlors, and other places related to marine and seashore or
for entertainment or amusement; offshore activities;
regulate such other events or
activities for amusement or (iv) Regulate the preparation and
entertainment, particularly those sale of meat, poultry, fish,
which tend to disturb the vegetables, fruits, fresh dairy
community or annoy the products, and other foodstuffs for
inhabitants, or require the public consumption;
suspension or suppression of the
same; or, prohibit certain forms of (v) Regulate the use of streets,
amusement or entertainment in avenues, alleys, sidewalks, bridges,
order to protect the social and parks and other public places and
moral welfare of the community; approve the construction,
improvement repair and
(viii) Provide for the impounding of maintenance of the same;
stray animals; regulate the keeping establish bus and vehicle stops and
of animals in homes or as part of a terminals or regulate the use of
business, and the slaughter, sale or the same by privately-owned
disposition of the same; and adopt vehicles which serve the public;
regulate garages and the operation construction and use of private
of conveyances for hire; designate water closets, privies and other
stands to be occupied by public similar structures in buildings and
vehicles when not in use; regulate homes;
the putting up of signs, signposts,
awnings and awning posts on the (ix) Regulate the placing, stringing,
streets; and provide for the attaching, installing, repair and
lighting, cleaning and sprinkling of construction of all gas mains,
streets; and public places; electric, telegraph and telephone
wires, conduits, meters and other
(vi) Regulate traffic on all streets apparatus; and provide for the
and bridges; prohibit correction, condemnation or
encroachments or obstacles removal of the same when found
thereon, and when necessary in to be dangerous, defective, or
the interest of public welfare, otherwise hazardous to the
authorize the removal or welfare of the inhabitants;
encroachments and illegal
constructions in public places; (x) Subject to the availability of
funds and to existing laws, rules
(vii) Subject to existing laws, and regulations, establish and
establish and provide for the provide for the operation of
maintenance, repair and operation vocational and technical schools
of an efficient waterworks system and similar post-secondary
to supply water for the inhabitants institutions and, with the approval
and to purify the source of the of the Department of Education,
water supply; regulate the Culture and Sports and subject to
construction, maintenance, repair existing law on tuition fees, fix and
and use of hydrants, pumps, collect reasonable tuition fees and
cisterns and reservoirs; protect the other school charges in
purity and quantity of the water educational institutions supported
supply of the city and, for this by the city government;
purpose, extend the coverage of
appropriate ordinances over all (xi) Establish a scholarship fund for
territory within the drainage area the poor but deserving students in
of said water supply and within schools located within its
one hundred (100) meters of the jurisdiction or for students residing
reservoir, conduit, canal, aqueduct, within the city;
pumping station, or watershed
used in connection with the water (xii) Approve measures and adopt
service; and regulate the quarantine regulations to prevent
consumption, use or wastage of the introduction and spread of
water and fix and collect charges diseases;
therefor;
(xiii) Provide for an efficient and
(viii) Regulate the drilling and effective system of solid waste and
excavation of the ground for the garbage collection and disposal;
laying of water, gas, sewer, and prohibit littering and the placing or
other pipes and the construction, throwing of garbage, refuse and
repair and maintenance of public other filth and wastes;
drains, sewers, cesspools, tunnels
and similar structures; regulate the
(xiv) Provide for the care of
placing of poles and the use of
disabled persons, paupers, the
crosswalks, curbs, and gutters;
aged, the sick, persons of unsound
adopt measures to ensure public
mind, abandoned minors, juvenile
safety against open canals,
delinquents, drug dependents,
manholes. live wires and other
abused children and other needy
similar hazards to life and
and disadvantaged persons,
property; and regulate the
particularly children and youth
 below eighteen (18) years of age; Section 459. Role of the Province. - The province, composed
and subject to availability of funds, of cluster of municipalities, or municipalities and component
establish and provide for the cities, and as a political and corporate unit of government,
operation of centers and facilities serves as dynamic mechanism for developmental processes
for said needy and disadvantaged and effective governance of local government units within its
persons; territorial jurisdiction.

(xv) Establish and provide for the Section 460. Manner of Creation. - A province may be
maintenance and improvement of created, divided, merged, abolished, or its boundary
jails and detention centers, substantially altered, only by an Act of Congress and subject
institute a sound jail management to approval by a majority of the votes cast in a plebiscite to
program, and appropriate funds be conducted by the COMELEC in the local government unit
for the subsistence of detainees or units directly affected. The plebiscite shall be held within
and convicted prisoners in the city; one hundred twenty (120) days from the date of effectivity of
said Act, unless otherwise provided therein.
(xvi) Establish a city council whose
purpose is the promotion of Section 461. Requisites for Creation.
culture and the arts, coordinate
with government agencies and (a) A province may be created if it has an average
non-governmental organizations annual income, as certified by the Department of
and, subject to the availability of Finance, of not less than Twenty million pesos
funds, appropriate funds for the (P20,000,000.00) based on 1991 constant prices and
support and development of the either of the following requisites:
same; and
(i) a contiguous territory of at least two
(xvii) Establish a city council for the thousand (2,000) square kilometers, as
elderly which shall formulate certified by the Lands Management Bureau;
policies and adopt measures or
mutually beneficial to the elderly
and to the community; provide (ii) a population of not less than two
incentives for non-governmental hundred fifty thousand (250,000)
agencies and entities and, subject inhabitants as certified by the National
to the availability of funds, Statistics Office:
appropriate funds to support
programs and projects for the
Provided, That, the creation thereof shall
benefit of the elderly; and not reduce the land area, population, and
income of the original unit or units at the
(6) Exercise such other powers and perform time of said creation to less than the
such other duties and functions as may be minimum requirements prescribed herein.
prescribed by law or ordinance.
(b) The territory need not be contiguous if it
(b) The members of the sangguniang panlungsod of comprise two (2) or more islands or is separated by a
component cities shall receive a minimum monthly chartered city or cities which do not contribute to
compensation corresponding to Salary Grade the income of the province.
twenty-five (25) and members of the sangguniang
panlungsod of highly-urbanized cities shall receive a
(c) The average annual income shall include the
minimum monthly compensation corresponding to
income accruing to the general fund, exclusive of
Salary Grade twenty-seven (27), as prescribed under
special funds, trust funds, transfers and non-
R.A. 6758 and the implementing guidelines issued
recurring income.
pursuant thereto.
Section 462. Existing Sub-Provinces. - Existing sub-provinces
TITLE IV
are hereby converted into regular provinces upon approval by
THE PROVINCE
a majority of the votes cast in a plebiscite to be held in the
said subprovinces and the original provinces directly affected.
CHAPTER I The plebiscite shall be conducted by the COMELEC
Role and Creation of the Province simultaneously with the national elections following the
effectivity of this Code.
The new legislative districts created as a result of such offices shall continue to maintain such offices for a
conversion shall continue to be represented in Congress by period of five (5) years from the date of the
the duly-elected representatives of the original districts out effectivity of this Code, after which said offices shall
of which said new provinces or districts were created until become optional.
their own representatives shall have been elected in the next
regular congressional elections and qualified. (c) The sangguniang panlalawigan may:

The incumbent elected officials of the said subprovinces (1) Maintain existing offices not mentioned
converted into regular provinces shall continue to hold office in subsections (a) and (b) hereof;
until June 30, 1992. Any vacancy occurring in the offices
occupied by said incumbent elected officials, or resulting (2) Create such other offices as may be
from expiration of their terms of office in case of a negative necessary to carry out the purposes of the
vote in the plebiscite results, shall be filled by appointment by provincial government; or
the President. The appointees shall hold office until their
successors shall have been elected in the regular local
(3) Consolidate the functions of any office
elections following the plebiscite mentioned herein and
with those of another in the interest of
qualified. After effectivity of such conversion, the President
efficiency and economy;
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 (d) Unless otherwise provided herein, heads
of departments and offices shall be
also appoint a vice-governor and the other members of the
sangguniang panlalawigan, all of whom shall likewise hold appointed by the governor with the
office until their successors shall have been elected in the concurrence of the majority of all the
sangguniang panlalawigan members,
next regular local elections and qualified.
subject to civil service law, rules and
regulations. The sangguniang panlalawigan
All qualified appointive officials and employees in the career
shall act on the appointment within fifteen
service of the said subprovinces at the time of their
(15) days from the date of its submission;
conversion into regular provinces shall continue in office in
otherwise the same shall be deemed
accordance with civil service law, rules and regulations.
confirmed;

CHAPTER II
(e) Elective and appointive provincial officials shall
Provincial Officials in General
receive such compensation, allowances, and other
emoluments as may be determined by law or
Section 463. Officials of the Provincial Government. ordinance, subject to the budgetary limitations on
personal services prescribed under Title Five, Book II
(a) There shall be in each province a governor, a of this Code: Provided, That, no increase in
vice-governor, members of the sangguniang compensation shall take effect until after the
panlalawigan, a secretary to the sangguniang expiration of the full term of all the elective officials
panlalawigan, a provincial treasurer, a provincial approving such increase.
assessor, a provincial accountant, a provincial
engineer, a provincial budget officer, a provincial Section 464. Residence and Office. - During the incumbency
planning and development coordinator, a provincial of the governor, he shall have his official residence in the
legal officer, a provincial administrator, a provincial capital of the province. All elective and appointive provincial
health officer, a provincial social welfare and officials shall hold office in the provincial capital: Provided,
development officer, a provincial general services That, upon resolution of the sangguniang panlalawigan,
officer, a provincial agriculturist, and a provincial elective and appointive provincial officials may hold office in
veterinarian. any component city or municipality within the province for a
period of not more than seven (7) days for any given month.
(b) In addition thereto, the governor may appoint a
provincial population officer, a provincial natural CHAPTER III
resources and environment officer, a provincial Officials and Offices Common to All Provinces
cooperative officer, a provincial architect, and a
provincial information officer.
ARTICLE I
The Provincial Governor
The appointment of a provincial population officer
shall be optional in the province: Provided, however,
Section 465. The Chief Executive: Powers, Duties, Functions,
That provinces which have existing population
and Compensation.
(a) The provincial governor, as the chief executive of those he may be authorized by law
the provincial government, shall exercise such to appoint;
powers and perform such duties and functions as
provided by this Code and other laws. (vi) Represent the province in all its
business transactions and sign in
(b) For efficient, effective and economical its behalf all bonds, contracts, and
governance the purpose of which is the general obligations, and such other
welfare of the province and its inhabitants pursuant documents upon authority of the
to Section 16 of this Code, the provincial governor sangguniang panlalawigan or
shall: pursuant to law or ordinance;

(1) Exercise general supervision and control (vii) Carry out such emergency
over all programs, projects, services, and measures as may be necessary
activities of the provincial government, and during and in the aftermath of
in this connection, shall: man-made and natural disasters
and calamities;
(i) Determine the guidelines of
provincial policies and be (viii) Determine the time, manner
responsible to the sangguniang and place of payment of salaries or
panlalawigan for the program of wages of the officials and
government; employees of the province, in
accordance with law or ordinance;
(ii) Direct the formulation of the
provincial development plan, with (ix) Allocate and assign office space
the assistance of the provincial to provincial and other officials and
development council, and upon employees who, by law or
approval thereof by the ordinance, are entitled to such
sangguniang panlalawigan, space in the provincial capitol and
implement the same; other buildings owned or leased by
the provincial government;
(iii) Present the program of
government and propose policies (x) Ensure that all executive
and projects for the consideration officials and employees of the
of the sangguniang panlalawigan at province faithfully discharge their
the opening of the regular session duties and functions as provided
of the sangguniang panlalawigan by law and this Code, and cause to
every calendar year and as after as be instituted administrative or
may be deemed necessary as the judicial proceedings against any
general welfare of the inhabitants official or employee of the
and the needs of the provincial province who may have committed
government may require; an offense in the performance of
his official duties;
(iv) Initiate and propose legislative
measures to the sangguniang (xi) Examine the books, records
panlalawigan and as often as may and other documents of all offices,
be deemed necessary, provide officials, agents or employees of
such information and data needed the province and, in aid of his
or requested by said sanggunian in executive powers and authority,
the performance of its legislative require all national officials and
functions; employees stationed in the
province to make available to him
(v) Appoint all officials and such books, records, and other
employees whose salaries and documents in their custody, except
wages are wholly or mainly paid those classified by law as
out of provincial funds and whose confidential;
appointments are not otherwise
provided for in this Code, as well as
(xii) Furnish copies of executive who are injured while in the
orders issued by him to the Office performance of their official duties
of the President within seventy- and functions, subject to
two (72) hours after their issuance; availability of funds;

(xiii) Visit component cities and (xviii) Represent the province in

municipalities of the province at inter-provincial or regional sports
least once every six (6) months to councils or committees, and
deepen his understanding of coordinate the efforts of
problems and conditions, listen component cities or municipalities
and give appropriate counsel to in the regional or national palaro
local officials and inhabitants, or sports development activities;
inform the officials and inhabitants
of component cities and (xix) Conduct an annual palarong
municipalities of general laws and panlalawigan, which shall feature
ordinances which especially traditional sports and disciplines
concern them, and otherwise included in national and
conduct visits and inspections to international games in
ensure that the governance of the coordination with the Department
province will improve the quality of Education, Culture and Sports;
of life of the inhabitants; and

(xiv) Act on leave applications of (xx) Submit to the Office of the

officials and employees appointed President the following reports: an
by him and the commutation of annual report containing a
the monetary value of leave credits summary of all matters pertinent
in accordance with law; to the management,
administration and development
(xv) Authorize official trips of of the province and all information
provincial officials and employees and data relative to its political,
outside of the province for a social and economic conditions;
period not exceeding thirty (30) and supplemental reports when
days; unexpected events and situations
arise at any time during the year,
(xvi) Call upon any national official particularly when man-made or
or employee stationed in or natural disasters or calamities
assigned to the province to advise affect the general welfare of the
him on matters affecting the province, region or country;
province and to make
recommendations thereon; (2) Enforce all laws and ordinances relative
coordinate with said official or to the governance of the province and the
employee in the formulation and exercise of the appropriate corporate
implementation of plans, programs powers provided for under Section 22 of
and projects; and when this Code, implement all approved policies,
appropriate, initiate an programs, projects, services and activities of
administrative or judicial action the province and, in addition to the
against a national government foregoing, shall:
official or employee who may have
committed an offense in the (i) Ensure that the acts of the
performance of his official duties component cities and
while stationed in or assigned to municipalities of the province and
the province; of its officials and employees are
within the scope of their
(xvii) Authorize payment for prescribed powers, duties and
medical care, necessary functions;
transportation, subsistence,
hospital or medical fees of (ii) Call conventions, conferences,
provincial officials and employees seminars, or meetings of any
 elective and appointive officials of under Title Five, Book II of this
the province and its component Code;
cities and municipalities, including
national officials and employees (ii) Prepare and submit to the
stationed in or assigned to the sanggunian for approval the
province, at such time and place executive and supplemental
and on such subject as he may budgets of the province for the
deem important for the promotion ensuing calendar year in the
of the general welfare of the manner provided for under Title
province and its inhabitants; Five, Book II of this Code;

(iii) Issue such executive orders for (iii) Ensure that all taxes and other
the faithful and appropriate revenues of the province are
enforcement and execution of laws collected, and that provincial funds
and ordinances; are applied to the payment of
expenses and settlement of
(iv) Be entitled to carry the obligations of the province, in
necessary firearm within his accordance with law or ordinance;
territorial jurisdiction;
(iv) Issue licenses and permits and
(v) In coordination with the mayors suspend or revoke the same for
of component cities and any violation of the conditions
municipalities and the National upon which said licenses or
Police Commission, formulate the permits had been issued, pursuant
peace and order plan of the to law or ordinance;
province and upon its approval,
implement the same in accordance (v) Adopt adequate measures to
with R.A. No. 6975; safeguard and conserve land,
mineral, marine, forest and other
(vi) Call upon the appropriate resources of the province, in
national law enforcement agencies coordination with the mayors of
to suppress disorder, riot, lawless component cities and
violence, rebellion or sedition or to municipalities; provide efficient
apprehend violators of the law and effective property and supply
when public interest so requires management in the province; and
and the police forces of the protect the funds, credits, rights,
component city or municipality and other properties of the
where the disorder or violation is province; and
happening are inadequate to cope
with the situation or the violators; (vi) Institute or cause to be
instituted administrative or judicial
(3) Initiate and maximize the generation of proceedings for violation of
resources and revenues, and apply the ordinances in the collection of
same to the implementation of taxes, fees or charges, and for the
development plans, program objectives and recovery of funds and property,
priorities as provided for under Section 18 and cause the province to be
of this Code, particularly those resources defended against all suits to ensure
and revenues programmed for agro- that its interests, resources and
industrial development and country-wide rights shall be adequately
growth and progress and, relative thereto, protected.
shall:
(4) Ensure the delivery of basic services and
(i) Require each head of an office the provision of adequate facilities as
or department to prepare and provided for under Section 17 of this Code,
submit an estimate of and in addition thereto, shall:
appropriations for the ensuing
calendar year, in accordance with
the budget preparation process
 (i) Ensure that the (3) Assume the office of the governor for
construction and repair of the unexpired term of the latter in the
roads and highways event of permanent vacancy as provided for
funded by the national in Section 44, Book I of this Code;
government shall be, as
far as practicable, carried (4) Exercise the powers and perform the
out in a spatially duties and functions of the governor in
contiguous manner and in cases of temporary vacancy as provided for
coordination with the in Section 46, Book I of this Code; and
construction and repair of
the roads and bridges of (5) Exercise such other powers and perform
the province and of its such other duties and functions as may be
component cities and prescribed by law or ordinance.
municipalities; and
(b) The vice-governor shall receive a monthly
(ii) Coordinate the compensation corresponding to Salary Grade
implementation of twenty-eight (28) as prescribed under R.A. No. 6758
technical services by and the implementing guidelines issued pursuant
national offices for the thereto.
province and its
component cities and
ARTICLE III
municipalities, including
The Sangguniang Panlalawigan
public works and
infrastructure programs of
the provincial government Section 467. Composition.
and its component cities
and municipalities; (a) The sangguniang panlalawigan, the legislative
body of the province, shall be composed of the
provincial vice-governor as presiding officer, the
(5) Exercise such other powers and perform
such other duties and functions as may be regular sanggunian members, the president of the
provincial chapter of the liga ng mga barangay, the
prescribed by law or ordinance.
president of the panlalawigang pederasyon ng mga
sangguniang kabataan, the president of the
(c) The provincial governor shall receive a minimum
provincial federation of sanggunian members of
monthly compensation corresponding to Salary
municipalities and component cities and the sectoral
Grade thirty (30) prescribed under R.A. No. 6758 and
representatives, as members.
the implementing guidelines issued pursuant
thereto.
(b) In addition thereto, there shall be three (3)
sectoral representatives: one (1) from the women;
ARTICLE II
and as shall be determined by the sanggunian
The Provincial Vice-Governor
concerned within ninety (90) days prior to the
holding of the local elections, one (1) from the
Section 466. Powers, Duties, and Compensation. agricultural or industrial workers; and one (1) from
other sectors including the urban poor, indigenous
(a) The vice-governor shall: cultural communities, or disabled persons.

(1) Be the presiding officer of the (c) The regular members of the sangguniang
sangguniang panlalawigan and sign all panlalawigan and the sectoral representatives shall
warrants drawn on the provincial treasury be elected in the manner as may be provided for by
for all expenditures appropriated for the law.
operation of the sangguniang panlalawigan;
Section 468. Powers, Duties, Functions and Compensation.
(2) Subject to civil service law, rules and
regulations, appoint all officials and (a) The sangguniang panlalawigan, as the legislative
employees of the sangguniang body of the province, shall enact ordinances,
panlalawigan, except those whose manner approve resolutions and appropriate funds for the
of appointment is specially provided in this general welfare of the province and its inhabitants
Code; pursuant to Section 16 of this Code in the proper
exercise of the corporate powers of the province as distribution or exhibition of
provided for under Section 22 of this Code, and shall: obscene or pornographic materials
or publications, and other activities
(1) Approve ordinances and pass inimical to the welfare and morals
resolutions necessary for an efficient and of the inhabitants of the province;
effective provincial government and, in this
connection, shall: (vi) Protect the environment and
impose appropriate penalties for
(i) Review all ordinances approved acts which endanger the
by the sangguniang of component environment, such as dynamite
cities and municipalities and fishing and other forms of
executive orders issued by the destructive fishing, illegal logging
mayors of said component units to and smuggling of logs, smuggling
determine whether these are of natural resources products and
within the scope of the prescribed of endangered species of flora and
powers of the sanggunian and of fauna, slash and burn farming, and
the mayor; such other activities which result in
pollution acceleration of
(ii) Maintain peace and order by eutrophication of rivers and lakes,
enacting measures to prevent and or of ecological imbalance;
suppress lawlessness, disorder,
riot, violence, rebellion or sedition (vii) Subject to the provisions of
and impose penalties for the this Code and pertinent laws,
violation of said ordinances; determine the powers and duties
of officials and employees of the
(iii) Approve ordinances imposing a province;
fine not exceeding Five thousand
pesos (P5,000.00) or imprisonment (viii) Determine the positions and
not exceeding one (1) year, or both the salaries, wages, allowances and
in the discretion of the court, for other emoluments and benefits of
the violation of a provincial officials and employees paid
ordinance; wholly or mainly from provincial
funds and provide for expenditures
(iv) Adopt measures to protect the necessary for the proper conduct
inhabitants of the province from of programs, projects, services,
harmful effects of man-made or and activities of the provincial
natural disasters and calamities, government;
and to provide relief services and
assistance for victims during and in (ix) Authorize the payment of
the aftermath of said disasters and compensation to a qualified person
calamities and their return to not in the government service who
productive livelihood following fills up a temporary vacancy, or
said events; grant honorarium to any qualified
official or employee designated to
(v) Enact ordinances intended to fill a temporary vacancy in a
prevent, suppress and impose concurrent capacity, at the rate
appropriate penalties for habitual authorized by law;
drunkenness in public places,
vagrancy, mendicancy, (x) Provide a mechanism and the
prostitution, establishment and appropriate funds therefor, to
maintenance of houses of ill ensure the safety and protection of
repute, gambling and other all provincial government property,
prohibited games of chance, public documents, or records such
fraudulent devices and ways to as those relating to property
obtain money or property, drug inventory, land ownership, records
addiction, maintenance of drug of births, marriages, deaths,
dens, drug pushing, juvenile assessments, taxation, accounts,
delinquency, the printing, business permits, and such other
 records and documents of public all the members of the
interest in the offices and sangguniang panlalawigan, enact
departments of the provincial ordinances authorizing the floating
government; and of bonds or other instruments of
indebtedness, for the purpose of
(xi) When the finances of the raising funds to finance
provincial government allow, development projects;
provide for additional allowances
and other benefits to judges, (v) Appropriate funds for the
prosecutors, public elementary construction and maintenance or
and high school teachers, and the rental of buildings for the use
other national government officials of the province; and upon the
stationed or assigned to the majority vote of all the members of
province. the sangguniang panlalawigan,
authorize the provincial governor
(2) Generate and maximize the use of to lease to private parties such
resources and revenues for the public buildings held in a
development plans, program objectives and proprietary capacity, subject to
priorities of the province as provided for existing laws, rules and
under Section 18 of this Code, with regulations;
particular attention to agro-industrial
development and country-wide growth and (vi) Prescribe reasonable limits and
progress and relative thereto, shall: restraints on the use of property
within the jurisdiction of the
(i) Enact the annual and province;
supplemental appropriations of
the provincial government and (vii) Review the comprehensive
appropriate funds for specific land use plans and zoning
programs, projects, services and ordinances of component cities
activities of the province, or for and municipalities and adopt a
other purposes not contrary to comprehensive provincial land use
law, in order to promote the plan, subject to existing laws; and
general welfare of the province
and its inhabitants; (viii) Adopt measures to enhance
the full implementation of the
(ii) Subject to the provisions of national agrarian reform program
Book II of this Code and applicable in coordination with the
laws and upon the majority vote of Department of Agrarian Reform;
all the members of the
sangguniang panlalawigan, enact (3) Subject to the provisions of Book II of
ordinances levying taxes, fees and this Code, grant franchises, approve the
charges, prescribing the rates issuance of permits or licenses, or enact
thereof for general and specific ordinances levying taxes, fees and charges
purposes, and granting tax upon such conditions and for such purposes
exemptions, incentives or reliefs; intended to promote the general welfare of
the inhabitants of the province, and
(iii) Subject to the provisions of pursuant to this legislative authority, shall:
Book II of this Code and applicable
laws and upon the majority vote of (i) Fix and impose reasonable fees
all the members of the and charges for all services
sangguniang panlalawigan, rendered by the provincial
authorize the provincial governor government to private persons or
to negotiate and contract loans entities; and
and other forms of indebtedness;
(ii) Regulate and fix the license fees
(iv) Subject to the provisions of for such activities as provided for
Book II of this Code and applicable under this Code.
laws and upon the majority vote of
(4) Approve ordinances which shall ensure age; subject to availability of funds,
the efficient and effective delivery of basic establish and support the
services and facilities as provided for under operation of centers and facilities
Section 17 of this Code, and, in addition to for said needy and disadvantaged
said services and facilities, shall: persons; and facilitate efforts to
promote the welfare of families
(i) Adopt measures and safeguards below the poverty threshold, the
against pollution and for the disadvantaged, and the exploited;
preservation of the natural
ecosystem in the province, in (vii) Establish and provide the
consonance with approved maintenance and improvement of
standards on human settlements jails and detention centers,
and environmental sanitation; institute a sound jail management
program, and appropriate funds
(ii) Subject to applicable laws, for the subsistence of detainees
facilitate or provide for the and convicted prisoners in the
establishment and maintenance of province;
waterworks system or district
waterworks for supplying water to (viii) Establish a provincial council
inhabitants of component cities whose purpose is the promotion of
and municipalities; culture and the arts, coordinate
with government agencies and
(iii) Subject to the availability of non-governmental organizations
funds and to existing laws, rules and, subject to the availability of
and regulations, provide for the funds, appropriate funds for the
establishment and operation of support and development of the
vocational and technical schools same;
and similar post-secondary
institutions; and, with the approval (ix) Establish a provincial council
of the Department of Education, for the elderly which shall
Culture and Sports and subject to formulate policies and adopt
existing laws on tuition fees, fix measures mutually beneficial to
reasonable tuition fees and other the elderly and to the province;
school charges in educational and subject to the availability of
institutions supported by the funds, appropriate funds to
provincial government; support programs and projects for
the elderly; and provide incentives
(iv) Establish a scholarship fund for for non-governmental agencies
the poor but deserving students in and entities to support the
schools located within its programs and projects of the
jurisdiction or for students residing elderly; and
within the province;
(5) Exercise such other powers and perform
(v) Approve measures and adopt such other duties and functions as may be
quarantine regulations to prevent prescribed by law or ordinance.
the introduction and spread of
diseases within its territorial (b) The members of the sangguniang panlalawigan
jurisdiction; shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-seven (27) as
(vi) Provide for the care of prescribed under R.A. No. 6758 and the
paupers, the aged, the sick, implementing guidelines issued pursuant thereto.
persons of unsound mind,
abandoned minors, abused TITLE V
children, disabled persons, juvenile APPOINTED LOCAL OFFICIALS COMMON TO ALL
delinquents, drug dependents, and MUNICIPALITIES, CITIES AND PROVINCES
other needy and disadvantaged
persons, particularly children and
youth below eighteen (18) years of
ARTICLE I the treasurer of such fees as may be
Secretary to the Sanggunian prescribed by ordinance;

Section 469. Qualifications, Powers and Duties. (6) Record in a book kept for the purpose,
all ordinances and resolutions enacted or
(a) There shall be a secretary to the sanggunian who adopted by the sanggunian, with the dates
shall be a career official with the rank and salary of passage and publication thereof;
equal to a head of department or office.
(7) Keep his office and all non-confidential
(b) No person shall be appointed secretary to the records therein open to the public during
sanggunian unless he is a citizen of the Philippines, a the usual business hours;
resident of the local government unit concerned, of
good moral character, a holder of a college degree (8) Translate into the dialect used by the
preferably in law, commerce or public majority of the inhabitants all ordinances
administration from a recognized college or and resolutions immediately after their
university, and a first grade civil service eligible or its approval, and cause the publication of the
equivalent. same together with the original version in
the manner provided under this Code; and
The appointment of a secretary to the sanggunian is
mandatory for provincial, city and municipal (9) Take custody of the local archives and,
governments. where applicable, the local library and
annually account for the same; and
(c) The secretary to the sanggunian shall take charge
of the office of the secretary to the sanggunian and (d) Exercise such other powers and perform such
shall: other duties and functions as may be prescribed by
law or ordinance relative to his position.
(1) Attend meetings of the sanggunian and
keep a journal of its proceedings; ARTICLE II
The Treasurer
(2) Keep the seal of the local government
unit and affix the same with his signature to Section 470. Appointment, Qualifications, Powers, and Duties.
all ordinances, resolutions, and other
official acts of the sanggunian and present (a) The treasurer shall be appointed by the Secretary
the same to the presiding officer for his of Finance from a list of at least three (3) ranking,
signature; eligible recommendees of the governor or mayor, as
the case may be, subject to civil service law, rules
(3) Forward to the governor or mayor, as and regulations.
the case may be, for approval, copies of
ordinances enacted by the sanggunian and (b) The treasurer shall be under the administrative
duly certified by the presiding officer, in the supervision of the governor or mayor, as the case
manner provided in Section 54 under Book I may be, to whom he shall report regularly on the tax
of this Code; collection efforts in the local government unit;

(4) Forward to the sanggunian panlungsod (c) No person shall be appointed treasurer unless he
or bayan concerned, in the case of the is a citizen of the Philippines, a resident of the local
sangguniang barangay, and to the government unit concerned, of good moral
sangguniang panlalawigan concerned, in character, a holder of a college degree preferably in
the case of the sangguniang panlungsod of commerce, public administration or law from a
component cities or sangguniang bayan, recognized college or university, and a first grade
copies of duly approved ordinances, in the civil service eligible or its equivalent. He must have
manner provided in Sections 56 and 57 acquired experience in treasury or accounting
under Book I of this Code; service for at least five (5) years in the case of the
city or provincial treasurer, and three (3) years in the
(5) Furnish, upon request of any interested case of municipal treasurer.
party, certified copies of records of public
character in his custody, upon payment to The appointment of a treasurer shall be mandatory
for provincial, city and municipal governments;
 (d) The treasurer shall take charge of the treasury or provincial assistant treasurer and three (3) years
office, perform the duties provided for under Book II in the case of municipal assistant treasurer.
of this Code, and shall:
The appointment of an assistant treasurer shall be
(1) Advise the governor or mayor, as the optional for provincial, city and municipal
case may be, the sanggunian, and other governments;
local government and national officials
concerned regarding disposition of local (c) The assistant treasurer shall assist the treasurer
government funds, and on such other and perform such duties as the latter may assign to
matters relative to public finance; him. He shall have authority to administer oaths
concerning notices and notifications to those
(2) Take custody of and exercise proper delinquent in the payment of real property tax and
management of the funds of the local concerning official matters relating to the accounts
government unit concerned; of the treasurer or otherwise arising in the offices of
the treasurer and the assessor.
(3) Take charge of the disbursement of all
local government funds and such other ARTICLE III
funds the custody of which may be The Assessor
entrusted to him by law or other competent
authority; Section 472. Qualifications, Powers and Duties.

(4) Inspect private commercial and (a) No person shall be appointed assessor unless he
industrial establishments within the is a citizen of the Philippines, a resident of the local
jurisdiction of the local government unit government unit concerned, of good moral
concerned in relation to the character, a holder of a college degree preferably in
implementation of tax ordinances, pursuant civil or mechanical engineering, commerce, or any
to the provisions under Book II of this Code; other related course from a recognized college or
university, and a first grade civil service eligible or its
(5) Maintain and update the tax information equivalent. He must have acquired experience in real
system of the local government unit; property assessment work or in any related field for
at least five (5) years in the case of the city or
(6) In the case of the provincial treasurer, provincial assessor, and three (3) years in the case of
exercise technical supervision over all the municipal assessor.
treasury offices of component cities and
municipalities; and The appointment of an assessor shall be mandatory
for provincial, city and municipal governments.
(e) Exercise such other powers and perform such
other duties and functions as may be prescribed by (b) The assessor shall take charge of the assessor's
law or ordinance. office, perform the duties provided under Book II of
this Code, and shall:
Section 471. Assistant Treasurer.
(1) Ensure that all laws and policies
(a) An assistant treasurer may be appointed by the governing the appraisal and assessment of
Secretary of Finance from a list of at least three (3) real properties for taxation purposes are
ranking, eligible recommendees of the governor or properly executed;
mayor, subject to civil service law, rules and
regulations. (2) Initiate, review, and recommend
changes in policies and objectives, plans
(b) No person shall be appointed assistant treasurer and programs, techniques, procedures and
unless he is a citizen of the Philippines, a resident of practices in the valuation and assessment of
the local government unit concerned, of good moral real properties for taxation purposes;
character, a holder of a college degree preferably in
commerce, public administration, or law from a (3) Establish a systematic method of real
recognized college or university, and a first grade property assessment;
civil service eligible or its equivalent. He must have
acquired at least five (5) years experience in the (4) Install and maintain a real property
treasury or accounting service in the case of the city identification and accounting system;
(5) Prepare, install and maintain a system of delegated to the said city or municipal
tax mapping, showing graphically all assessor; and
property subject to assessment and gather
all data concerning the same; (c) Exercise such other powers and perform such
other duties and functions as may be prescribed by
(6) Conduct frequent physical surveys to law or ordinance.
verify and determine whether all real
property within the province are properly Section 473. Assistant Assessor.
listed in the assessment rolls;
(a) No person shall be appointed assistant assessor
(7) Exercise the functions of appraisal and unless he is a citizen of the Philippines, a resident of
assessment primarily for taxation purposes the local government unit concerned, of good moral
of all real properties in the local character, a holder of a college degree preferably in
government unit concerned; civil or mechanical engineering, commerce, or any
related course from a recognized college or
(8) Prepare a schedule of the fair market university, and a first grade civil service eligible or its
value for the different classes of real equivalent. He must have acquired experience in
properties, in accordance with Title Two assessment or in any related field for at least three
under Book II of this Code; (3) years in the case of the city or provincial assistant
assessor, and one (1) year in the case of the city or
(9) Issue, upon request of any interested provincial assistant assessor.
party, certified copies of assessment
records of real property and all other The appointment of an assistant assessor shall be
records relative to its assessment, upon optional for provincial, city and municipal
payment of a service charge or fee to the governments.
treasurer;
(b) The assistant assessor shall assist the assessor
(10) Submit every semester a report of all and perform such other duties as the latter may
assessments, as well as cancellations and assign to him. He shall have the authority to
modifications of assessments to the local administer oaths on all declarations of real property
chief executive and the sanggunian for purposes of assessments.
concerned;
ARTICLE IV
(11) In the case of the assessor of a The Accountant
component city or municipality attend,
personally or through an authorized Section 474. Qualifications, Powers and Duties.
representative, all sessions of the local
board of assessment appeals whenever his (a) No person shall be appointed accountant unless
assessment is the subject of the appeal, and he is a citizen of the Philippines, a resident of the
present or submit any information or record local government unit concerned, of good moral
in his possession as may be required by the character, and a a certified public accountant. He
board; and must have acquired experience in the treasury or
accounting service for at least five (5) years in the
(12) In the case of the provincial assessor, case of the provincial or city accountant, and three
exercise technical supervision and visitorial (3) years in the case of the municipal accountant.
functions over all component city and
municipal assessor, coordinate with The appointment of an accountant is mandatory for
component city or municipal assessors in the provincial, city and municipal governments.
the conduct of tax mapping operations and
all other assessment activities, and provide
(b) The accountant shall take charge of both the
all forms of assistance therefor: Provided,
accounting and internal audit services of the local
however, That, upon full provision by the
government unit concerned and shall:
component city or municipality concerned
to its assessor's office of the minimum
personnel, equipment, and funding (1) Install and maintain an internal audit
requirements as may be prescribed by the system in the local government unit
Secretary of Finance, such functions shall be concerned;
 (2) Prepare and submit financial statements Section 475. Qualifications, Powers and Duties.
to the governor or mayor, as the case may
be, and to the sanggunian concerned; (a) No person shall be appointed budget officer
unless he is a citizen of the Philippines, a resident of
(3) Appraise the sanggunian and other local the local government unit concerned, of good moral
government officials on the financial character, a holder of a college degree preferably in
condition and operations of the local accounting, economics, public administration or any
government unit concerned; related course from a recognized college or
university, and a first grade civil service eligible or its
(4) Certify to the availability of budgetary equivalent. He must have acquired experience in
allotment to which expenditures and government budgeting or in any related field for at
obligations may be properly charged; least five (5) years in the case of the provincial or city
budget officer, and at least three (3) years in the
(5) Review supporting documents before case of the municipal budget officer.
preparation of vouchers to determine
completeness of requirements; The appointment of a budget officer shall be
mandatory for the provincial, city, and municipal
(6) Prepare statements of cash advances, governments.
liquidation, salaries, allowances,
reimbursements and remittances pertaining (b) The budget officer shall take charge of the
to the local government unit; budget office and shall:

(7) Prepare statements of journal vouchers (1) Prepare forms, orders, and circulars
and liquidation of the same and other embodying instructions on budgetary and
adjustments related thereto; appropriation matters for the signature of
the governor or mayor, as the case may be;
(8) Post individual disbursements to the
subsidiary ledger and index cards; (2) Review and consolidate the budget
proposals of different departments and
(9) Maintain individual ledgers for officials offices of the local government unit;
and employees of the local government unit
pertaining to payrolls and deductions; (3) Assist the governor or mayor, as the
case may be, in the preparation of the
(10) Record and post in index cards details budget and during budget hearings;
of purchased furniture, fixtures, and
equipment, including disposal thereof, if (4) Study and evaluate budgetary
any; implications of proposed legislation and
submit comments and recommendations
(11) Account for all issued requests for thereon;
obligations and maintain and keep all
records and reports related thereto; (5) Submit periodic budgetary reports to
the Department of Budget and
(12) Prepare journals and the analysis of Management;
obligations and maintain and keep all
records and reports related thereto; and (6) Coordinate with the treasurer,
accountant, and the planning and
(13) Exercise such other powers and development coordinator for the purpose
perform such other duties and functions as of budgeting;
may be provided by law or ordinance.
(7) Assist the sanggunian concerned in
(c) The incumbent chief accountant in the office of reviewing the approved budgets of
the treasurer shall be given preference in the component local government units;
appointment to the position of accountant.
(8) Coordinate with the planning and
ARTICLE V development coordinator in the
The Budget Officer formulation of the local government unit
development plan; and
 (c) Exercise such other powers and perform such activities in the local government unit
other duties and functions as may be prescribed by concerned in accordance with the approved
law or ordinance. development plan;

(d) The appropriations for personal services of the (5) Prepare comprehensive plans and other
budget officer provided under the Department of development planning documents for the
Budget and Management shall, upon effectivity of consideration of the local development
this Code, be transferred to the local government council;
unit concerned. Thereafter, the appropriations for
personal services of the budget officer shall be (6) Analyze the income and expenditure
provided for in full in the budget of the local patterns, and formulate and recommend
government unit. fiscal plans and policies for consideration of
the finance committee of the local
ARTICLE VI government unit concerned as provided
The Planning and Development Coordinator under Title Five, Book II of this Code;

Section 476. Qualifications, Powers and Duties. (7) Promote people participation in
development planning within the local
(a) No person shall be appointed planning and government unit concerned;
development coordinator unless he is a citizen of the
Philippines, a resident of the local government unit (8) Exercise supervision and control over
concerned, of good moral character, a holder of a the secretariat of the local development
college degree preferably in urban planning, council; and
development studies, economics, public
administration, or any related course from a (c) Exercise such other powers and perform
recognized college or university, and a first grade such other functions and duties as may be
civil service eligible or its equivalent. He must have prescribed by law or ordinance.
acquired experience in development planning or in
any related field for at least five (5) years in the case ARTICLE VII
of the provincial or city planning and development The Engineer
coordinator, and three (3) years in the case of the
municipal planning and development coordinator.
Section 477. Qualifications, Powers and Duties.

The appointment of a planning and development

(a) No person shall be appointed engineer unless he
coordinator shall be mandatory for provincial, city
is a citizen of the Philippines, a resident of the local
and municipal governments.
government unit concerned, of good moral
character, and a licensed civil engineer. He must
(b) The planning and development coordinator shall have acquired experience in the practice of his
take charge of the planning and development office profession for at least five (5) years in the case of the
and shall: provincial or city engineer, and three (3) years in the
case of the municipal engineer.
(1) Formulate integrated economic, social,
physical, and other development plans and The appointment of an engineer shall be mandatory
policies for consideration of the local for the provincial, city and municipal governments.
government development council; The city and municipal engineer shall also act as the
local building official.
(2) Conduct continuing studies, researches,
and training programs necessary to evolve (b) The engineer shall take charge of the engineering
plans and programs for implementation; office and shall:

(3) Integrate and coordinate all sectoral (1) Initiate, review and recommend changes
plans and studies undertaken by the in policies and objectives, plans and
different functional groups or agencies; programs, techniques, procedures and
practices in infrastructure development and
(4) Monitor and evaluate the public works in general of the local
implementation of the different government unit concerned;
development programs, projects, and
 (2) Advise the governor or mayor, as the services program geared to implementation
case may be, on infrastructure, public of health-related projects and activities;
works, and other engineering matters;
(2) Formulate measures for the
(3) Administer, coordinate, supervise, and consideration of the sanggunian and
control the construction, maintenance, provide technical assistance and support to
improvement, and repair of roads, bridges, the governor or mayor, as the case may be,
and other engineering and public works in carrying out activities to ensure the
projects of the local government unit delivery of basic services and provisions of
concerned; adequate facilities relative to health
services provided under Section 17 of this
(4) Provide engineering services to the local Code;
government unit concerned, including
investigation and survey, engineering (3) Develop plans and strategies and upon
designs, feasibility studies, and project approval thereof by the governor or mayor
management; as the case may be, implement the same,
particularly those which have to do with
(5) In the case of the provincial engineer, health programs and projects which the
exercise technical supervision over all governor or mayor, is empowered to
engineering offices of component cities and implement and which the sanggunian is
municipalities; and empowered to provide for under this Code;

(c) Exercise such other powers and perform such (4) In addition to the foregoing duties and
other duties and functions as may be prescribed by functions, the health officer shall:
law or ordinance.
(i) Formulate and implement
ARTICLE VIII policies, plans, programs and
The Health Officer projects to promote the health of
the people in the local government
Section 478. Qualifications, Powers and Duties. unit concerned;

(a) No person shall be appointed health officer (ii) Advise the governor or mayor,
unless he is a citizen of the Philippines, a resident of as the case may be, and the
the local government unit concerned, of good moral sanggunian on matters pertaining
character, and a licensed medical practitioner. He to health;
must have acquired experience in the practice of his
profession for at least five (5) years in the case of the (iii) Execute and enforce laws,
provincial or city health officer, and three (3) years in ordinances and regulations relating
the case of the municipal health officer. to public health;

The appointment of a health officer shall be (iv) Recommend to the

mandatory for provincial, city and municipal sanggunian, through the local
governments. health board, the passage of such
ordinances as he may deem
(b) The health officer shall take charge of the office necessary for the preservation of
on health and shall: public health;

(1) Take charge of the office on health (v) Recommend the prosecution of
services, supervise the personnel and staff any violation of sanitary laws,
of said office, formulate program ordinances or regulations;
implementation guidelines and rules and
regulations for the operation of the said (vi) Direct the sanitary inspection
office for the approval of the governor or of all business establishments
mayor, as the case may be, in order to assist selling food items or providing
him in the efficient, effective and accommodations such as hotels,
economical implementation of a health motels, lodging houses, pension
 houses, and the like, in accordance (1) Develop plans and strategies and upon
with the Sanitation Code; approval thereof by the governor or mayor,
as the case may be, implement the same,
(vii) Conduct health information particularly those which have to do with
campaigns and render health civil registry programs and projects which
intelligence services; the mayor is empowered to implement and
which the sanggunian is empowered to
(viii) Coordinate with other provide for under this Code;
government agencies and non-
governmental organizations (2) In addition to the foregoing duties and
involved in the promotion and functions, the civil registrar shall:
delivery of health services; and
(i) Accept all registrable documents
(ix) In the case of the provincial and judicial decrees affecting the
health officer, exercise general civil status of persons;
supervision over health officers of
component cities and (ii) File, keep and preserve in a
municipalities; and secure place the books required by
law;
(5) Be in the frontline of health services,
delivery, particularly during and in the (iii) Transcribe and enter
aftermath of man-made and natural immediately upon receipt all
disasters and calamities; and registrable documents and judicial
decrees affecting the civil status of
(c) Exercise such other powers and perform such persons in the appropriate civil
other duties and functions as may be prescribed by registry books;
law or ordinance.
(iv) Transmit to the Office of the
ARTICLE IX Civil Registrar-General, within the
The Civil Registrar prescribed period, duplicate copies
of registered documents required
Section 479. Qualifications, Powers and Duties. by law;

(a) No person shall be appointed civil registrar unless (v) Issue certified transcripts or
he is a citizen of the Philippines, a resident of the copies of any certificate or
local government unit concerned, of good moral registered documents upon
character, a holder of a college degree from a payment of the prescribed fees to
recognized college or university, and a first grade the treasurer;
civil service eligible or its equivalent. He must have
acquired experience in civil registry work for at least (vi) Receive applications for the
five (5) years in the case of the city civil registrar and issuance of a marriage license and,
three (3) years in the case of the municipal civil after determining that the
registrar. requirement and supporting
certificates and publication thereof
The appointment of a civil registrar shall be for the prescribed period have
mandatory for city and municipal governments. been complied with, issue the
license upon payment of the
(b) The civil registrar shall be responsible for the civil authorized fee to the treasurer;
registration program in the local government unit
concerned, pursuant to the Civil Registry Law, the (vii) Coordinate with the National
Civil Code, and other pertinent laws, rules and Statistics Office in conducting
regulations issued to implement them. educational campaigns for vital
registration and assist in the
preparation of demographic and
(c) The Civil Registrar shall take charge of the office
other statistics for the local
of the civil registry and shall:
government unit concerned; and
 (3) Exercise such other powers and perform promote career development and
such other duties and functions as may be uphold the merit principle in the
prescribed by law or ordinance. local government service;

ARTICLE X (iii) Conduct a continuing

The Administrator organizational development of the
local government unit with the end
Section 480. Qualifications, Terms, Powers and Duties. in view of the instituting effective
administrative reforms;
(a) No person shall be appointed administrator
unless he is a citizen of the Philippines, a resident of (3) Be in the frontline of the delivery of
the local government unit concerned, of good moral administrative support services, particularly
character, a holder of a college degree preferably in those related to the situations during and in
public administration, law, or any other related the aftermath of man-made and natural
course from a recognized college or university, and a disasters and calamities;
first grade civil service eligible or its equivalent. He
must have acquired experience in management and (4) Recommend to the sanggunian and
administration work for at least five (5) years in the advise the governor and mayor, as the case
case of the provincial or city administrator, and may be, on all other matters relative to the
three (3) years in the case of the municipal management and administration of the
administrator. local government unit; and

The term of administrator is coterminous with that (5) Exercise such other powers and perform
of his appointing authority. such other duties and functions as may be
prescribed by law or by ordinance.
The appointment of an administrator shall be
mandatory for the provincial and city governments, ARTICLE XI
and optional for the municipal government. The Legal Officer

(b) The administrator shall take charge of the office Section 481. Qualifications, Terms, Powers and Duties.
of the administrator and shall:
(a) No person shall be appointed legal officer unless
(1) Develop plans and strategies and upon he is a citizen of the Philippines, a resident of the
approval thereof by the governor or mayor, local government concerned, of good moral
as the case may be, implement the same character, and a member of the Philippine Bar. He
particularly those which have to do with the must have practiced his profession for at least five
management and administration-related (5) years in the case of the provincial and city legal
programs and projects which the governor officer, and three (3) years in the case of the
or mayor is empowered to implement and municipal legal officer.
which the sanggunian is empowered to
provide for under this Code; The term of the legal officer shall be coterminous
with that of his appointing authority.
(2) In addition to the foregoing duties and
functions, the administrator shall: The appointment of legal officer shall be mandatory
for the provincial and city governments and optional
(i) Assist in the coordination of the for the municipal government.
work of all the officials of the local
government unit, under the (b) The legal officer, the chief legal counsel of the
supervision, direction, and control local government unit, shall take charge of the office
of the governor or mayor, and for of legal services and shall:
this purpose, he may convene the
chiefs of offices and other officials (1) Formulate measures for the
of the local government unit; consideration of the sanggunian and
provide legal assistance and support to the
(ii) Establish and maintain a sound governor or mayor, as the case may be, in
personnel program for the local carrying out the delivery of basic services
government unit designed to
and provisions of adequate facilities as for failure to comply with any term
provided for under Section 17 of this Code; or condition in the grant of such
franchise or privilege, and
(2) Develop plans and strategies and upon recommending appropriate action
approval thereof by the governor or mayor, to the governor, mayor or
as the case may be, implement the same, sanggunian, as the case may be;
particularly those which have to do with
programs and projects related to legal (vi) When directed by the
services which the governor or mayor is governor, mayor, or sanggunian,
empowered to implement and which the initiate and prosecute in the
sanggunian is empowered to provide for interest of the local government
under this Code; unit concerned any civil action on
any bond, lease or other contract
(3) In addition to the foregoing duties and upon any breach or violation
functions, the legal officer shall: thereof; and

(i) Represent the local government (vii) Review and submit

unit in all civil actions and special recommendations on ordinances
proceedings wherein the local approved and execute orders
government unit or any official issued by component units;
thereof, in his official capacity, is a
party: Provided, That, in actions or (3) Recommend measures to the
proceedings where a component sanggunian and advise the governor or
city or municipality is a party mayor as the case may be on all other
adverse to the provincial matters related to upholding the rule of
government or to another law;
component city or municipality, a
special legal officer may be (4) Be in the frontline of protecting human
employed to represent the adverse rights and prosecuting any violations
party; thereof, particularly those which occur
during and in the aftermath of man-made
(ii) When required by the or natural disasters or calamities; and
governor, mayor or sanggunian,
draft ordinances, contracts, bonds, (5) Exercise such other powers and perform
leases and other instruments, such other duties and functions as may be
involving any interest of the local prescribed by law or ordinance.
government unit and provide
comments and recommendations ARTICLE XII
on any instrument already drawn; The Agriculturist

(iii) Render his opinion in writing Section 482. Qualifications, Powers and Duties.
on any question of law when
requested to do so by the
(a) No person shall be appointed agriculturist unless
governor, mayor or sanggunian;
he is a citizen of the Philippines, a resident of the
local government unit concerned, of good moral
(iv) Investigate or cause to be character, a holder of a college degree in agriculture
investigated any local official or or any related course from a recognized college or
employee for administrative university and a first grade civil service eligible or its
neglect or misconduct in office, equivalent. He must have practiced his profession in
and recommend appropriate agriculture or acquired experience in a related field
action to the governor, mayor or for at least five (5) years in the case of the provincial
sanggunian, as the case may be; and city agriculturist, and three (3) years in the case
of the municipal agriculturist.
(v) Investigate or cause to be
investigated any person, firm or The position of the agriculturist shall be mandatory
corporation holding any franchise for the provincial government and optional for the
or exercising any public privilege city and municipal governments.
(b) The agriculturist shall take charge of the office for appropriate technology compatible
agricultural services, and shall: with environmental integrity;

(1) Formulate measures for the approval of (4) Be in the frontline of delivery of basic
the sanggunian and provide technical agricultural services, particularly those
assistance and support to the governor or needed for the survival of the inhabitants
mayor, as the case may be, in carrying out during and in the aftermath of man-made
said measures to ensure the delivery of and natural disasters;
basic services and provisions of adequate
facilities relative to agricultural services as (5) Recommend to the sanggunian and
provided for under Section 17 of this Code; advise the governor or mayor, as the case
may be, on all other matters related to
(2) Develop plans and strategies and upon agriculture and aqua-culture which will
approval thereof by the governor or mayor, improve the livelihood and living conditions
as the case may be, implement the same, of the inhabitants; and
particularly those which have to do with
agricultural programs and projects which (c) Exercise such other powers and perform such
the governor or mayor is empowered to other duties and functions as may be prescribed by
implement and which the sanggunian is law or ordinance;
empowered to provide for under this Code;
ARTICLE XIII
(3) In addition to the foregoing duties and The Social Welfare and Development Officer
functions, the agriculturist shall:
Section 483. Qualifications, Powers and Duties
(i) Ensure that maximum assistance
and access to resources in the (a) No person shall be appointed social welfare and
production, processing and development officer unless he is a citizen of the
marketing of agricultural and aqua- Philippines, a resident of the local government
cultural and marine products are concerned, of good moral character, a duly licensed
extended to farmers, fishermen social worker or a holder of a college degree
and local entrepreneurs; preferably in sociology or any other related course
from a recognized college or university, and a first
(ii) Conduct or cause to be grade civil service eligible or its equivalent. He must
conducted location-specific have acquired experience in the practice of social
agricultural researches and assist work for at least five (5) years in the case of the
in making available the appropriate provincial or city social welfare and development
technology arising out of and officer, and three (3) years in the case of the
disseminating information on basic municipal social welfare and development officer.
research on crops, preventive and
control of plant diseases and pests, The appointment of a social welfare and
and other agricultural matters development officer is mandatory for provincial and
which will maximize productivity; city governments, and optional for municipal
government.
(iii) Assist the governor or mayor,
as the case may be, in the (b) The social welfare and development officer shall
establishment and extension take charge of the office on social welfare and
services of demonstration forms or development services and shall:
aqua-culture and marine products;
(1) Formulate measures for the approval of
(iv) Enforce rules and regulations the sanggunian and provide technical
relating to agriculture and aqua- assistance and support to the governor or
culture; mayor, as the case may be, in carrying out
measures to endure the delivery of basic
(v) Coordinate with government services and provisions of adequate
agencies and non-governmental facilities relative to social welfare and
organizations which promote development services as provided for under
agricultural productivity through Section 17 of this Code;
(2) Develop plans and strategies and upon identified to be vulnerable and
approval thereof by the governor or mayor, high-risk to exploitation, abuse and
as the case may be, implement the same neglect;
particularly those which have to do with
social welfare programs and projects which (4) Be in the frontline or service delivery,
the governor or mayor is empowered to particularly those which have to do with
implement and which the sanggunian is immediate relief during and assistance in
empowered to provide for under this Code; the aftermath of man-made and natural
disaster and natural calamities;
(3) In addition to the foregoing duties, the
social welfare and development officer (5) Recommend to the sanggunian and
shall: advise the governor or mayor, as the case
may be, on all other matters related to
(i) Identify the basic needs of the social welfare and development services
needy, the disadvantaged and the which will improve the livelihood and living
impoverished and develop and conditions of the inhabitants; and
implement appropriate measures
to alleviate their problems and (c) Exercise such other powers and perform such
improve their living conditions; other duties and functions as may be prescribed by
law or ordinance;
(ii) Provide relief and appropriate
crisis intervention for victims of ARTICLE XIV
abuse and exploitation and The Environment and Natural Resources Officer
recommend appropriate measures
to deter further abuse and Section 484. Qualifications, Powers and Duties.
exploitation;
(a) No person shall be appointed environment and
(iii) Assist the governor or mayor, natural resources officer unless he is a citizen of the
as the case may be, in Philippines, a resident of the local government unit
implementing the barangay level concerned, of good moral character, a holder of a
program for the total development college degree preferably in environment, forestry,
and protection of children up to six agriculture or any related course from a recognized
(6) years of age; college or university, and a first grade civil service
eligible or its equivalent. He must have acquired
(iv) Facilitate the implementation experience in environmental and natural resources
of welfare programs for the management, conservation, and utilization, of at
disabled, elderly, and victims of least five (5) years in the case of the provincial or city
drug addiction, the rehabilitation environment and natural resources officer, and
of prisoners and parolees, the three (3) years in the case of the municipal
prevention of juvenile delinquency environment and natural resources officer.
and such other activities which
would eliminate or minimize the The appointment of the environment and natural
ill-effects of poverty; resources officer is optional for provincial, city, and
municipal governments.
(v) Initiate and support youth
welfare programs that will (b) The environment and natural resources
enhance the role of the youth in management officer shall take charge of the office
nation-building; on environment and natural resources and shall:

(vi) Coordinate with government (1) Formulate measures for the

agencies and non-governmental consideration of the sanggunian and
organizations which have for their provide technical assistance and support to
purpose the promotion and the the governor or mayor, as the case may be,
protection of all needy, in carrying out measures to ensure the
disadvantaged, underprivileged or delivery of basic services and provision of
impoverished groups or adequate facilities relative to environment
individuals, particularly those
and natural resources services as provided (4) Be in the frontline of the delivery of
for under Section 17 of this Code; services concerning the environment and
natural resources, particularly in the
(2) Develop plans and strategies and upon renewal and rehabilitation of the
approval thereof, by the governor or mayor, environment during and in the aftermath of
as the case may be, implement the same, man-made and natural calamities and
particularly those which have to do with disasters;
environment and natural resources
programs and projects which the governor (5) Recommend to the sanggunian and
or mayor is empowered to implement and advise the governor or mayor, as the case
which the sanggunian is empowered to may be, on all matters relative to the
provide for under this Code; protection, conservation maximum
utilization, application of appropriate
(3) In addition to the foregoing duties and technology and other matters related to the
functions, the environment and natural environment and natural resources; and
resources officer shall:
(c) Exercise such other powers and perform such
(i) Establish, maintain, protect and other duties and functions as may be prescribed by
preserve communal forests, law or ordinance.
watersheds, tree parks,
mangroves, greenbelts and similar ARTICLE XV
forest projects and commercial The Architect
forest, like industrial tree farms
and agro-forestry projects; Section 485. Qualifications, Powers and Duties.

(ii) Provide extension services to (a) No person shall be appointed architect unless he
beneficiaries of forest is a citizen of the Philippines, a resident of the local
development projects and government unit concerned, of good moral
technical, financial and character, a duly licensed architect. He must have
infrastructure assistance; practiced his profession for at least five (5) years in
the case of the provincial or city architect, and three
(iii) Manage and maintain seed (3) years in the case of the municipal architect.
banks and produce seedlings for
forest and tree parks; The appointment of the architect is optional for
provincial, city and municipal governments.
(iv) Provide extension services to
beneficiaries of forest (b) The Architect shall take charge of the office on
development projects and render architectural planning and design and shall:
assistance for natural resources-
related conservation and (1) Formulate measures for the
utilization activities consistent with consideration of the sanggunian and
ecological balance; provide technical assistance and support to
the governor or mayor, as the case may be,
(v) Promote the small-scale mining in carrying out measures to ensure the
and utilization of mineral delivery of basic services and provision of
resources, particularly mining of adequate facilities relative to architectural
gold; planning and design as provided for under
Section 17 of this Code;
(vi) Coordinate with government
agencies and non-governmental (2) Develop plans and strategies and upon
organizations in the approval thereof by the governor or mayor,
implementation of measures to as the case may be, implement the same,
prevent and control land, air and particularly those which have to do with
water pollution with the assistance architectural planning and design programs
of the Department of Environment and projects which the governor or mayor is
and Natural Resources; empowered to implement and which the
 sanggunian is empowered to provide for ARTICLE XVI
under this Code; The Information Officer

(3) In addition to foregoing duties and Section 486. Qualifications, Powers and Duties.
functions, the architect shall:
(a) No person shall be appointed information officer
(i) Prepare and recommend for unless he is a citizen of the Philippines, a resident of
consideration of the sanggunian the local government unit concerned, of good moral
the architectural plan and design character, a holder of a college degree preferably in
for the local government unit or a journalism, mass communication or any related
part thereof, including the renewal course from a recognized college or university, and a
of slums and blighted areas, land first grade civil service eligible or its equivalent. He
reclamation activities, the greening must have experience in writing articles and
of land, and appropriate planning research papers, or in writing for print, television or
of marine and foreshore areas; broadcast media of at least three (3) years in the
case of the provincial or city information officer, and
(ii) Review and recommend for at least one (1) year in the case of municipal
appropriate action of the information officer.
sanggunian, governor or mayor, as
the case may be, the architectural The appointment of the information officer is
plans and design submitted by optional for the provincial, city and municipal
governmental and non- governments.
governmental entities or
individuals, particularly those for The term of the information officer is coterminous
undeveloped, underdeveloped, with that of his appointing authority.
and poorly-designed areas; and
(b) The information officer shall take charge of the
(iii) Coordinate with government office on public information and shall:
and non-government entities and
individuals involved in the (1) Formulate measures for the
aesthetics and the maximum consideration of the sanggunian and
utilization of the land and water provide technical assistance and support to
within the jurisdiction of the local the governor or mayor, as the case may be,
government unit, compatible with in providing the information and research
environmental integrity and data required for the delivery of basic
ecology balance; services and provision of adequate facilities
so that the public becomes aware of said
(4) Be in the frontline of the delivery of services and may fully avail of the same;
services involving architectural planning and
design, particularly those related to the (2) Develop plans and strategies and, upon
redesigning of spatial distribution of basic approval thereof by the governor or mayor,
facilities and physical structures during and as the case may be, implement the same,
in the aftermath of man-made and natural particularly those which have to do with
calamities and disasters; public information and research data to
support programs and projects which the
(5) Recommend to the sanggunian and governor or mayor is empowered to
advise the governor or mayor, as the case implement and which the sanggunian is
may be, on all matters relative to the empowered to provide for under this Code;
architectural planning and design as it
relates to the total socio-economic (3) In addition to the foregoing duties and
development of the local government units; functions, the information officer shall:
and
(i) Provide relevant, adequate, and
(c) Exercise such other powers and perform such timely information to the local
other duties and functions as may be prescribed by government unit and its residents;
law or ordinance.
 (ii) Furnish information and data (b) The cooperatives officer shall take charge of the
on local government units to office for the development of cooperatives and shall:
government agencies or offices as
may be required by law or (1) Formulate measures for the
ordinance; and non-governmental consideration of the sanggunian, and
organizations to be furnished to provide technical assistance and support to
said agencies and organizations; the governor or mayor, as the case may be,
in carrying out measures to ensure the
(iii) Maintain effective liaison with delivery of basic services and provision of
the various sectors of the facilities through the development of
community on matters and issues cooperatives, and in providing access to
that affect the livelihood and the such services and facilities;
quality of life of the inhabitants
and encourage support for (2) Develop plans and strategies and, upon
programs of the local and national approval thereof by the governor or mayor,
government; as the case may be, implement the same,
particularly those which have to do with the
(4) Be in the frontline in providing integration of cooperatives principles and
information during and in the aftermath of methods in programs and projects which
man-made and natural calamities and the governor or mayor is empowered to
disasters, with special attention to the implement and which the sanggunian is
victims thereof, to help minimize injuries empowered to provide for under this Code;
and casualties during and after the
emergency, and to accelerate relief and (3) In addition to the foregoing duties and
rehabilitation; functions, the cooperatives officer shall:

(5) Recommend to the sanggunian and (i) Assist in the organization of

advise the governor or mayor, as the case cooperatives;
may be, on all matters relative to public
information and research data as it relates (ii) Provide technical and other
to the total socio-economic development of forms of assistance to existing
the local government unit; and cooperatives to enhance their
viability as an economic enterprise
(c) Exercise such other powers and perform such and social organization;
other duties and functions as may be prescribed by
law or ordinance. (iii) Assist cooperatives in
establishing linkages with
ARTICLE XVII government agencies and non-
The Cooperatives Officer government organizations involved
in the promotion and integration
Section 487. Qualifications, Powers and Duties. of the concept of cooperatives in
the livelihood of the people and
(a) No person shall be appointed cooperative officer other community activities;
unless he is a citizen of the Philippines, a resident of
the local government unit concerned, of good moral (4) Be in the frontline of cooperatives
character, a holder of a college degree preferably in organization, rehabilitation or viability-
business administration with special training in enhancement, particularly during and in the
cooperatives or any related course from a aftermath of man-made and natural
recognized college or university, and a first grade calamities and disasters, to aid in their
civil service eligible or its equivalent. He must have survival and, if necessary subsequent
experience in cooperatives organizations and rehabilitation;
management of at least five (5) years in the case of
provincial or city cooperatives officer, and three (3) (5) Recommend to the sanggunian, and
years in the case of municipal cooperatives officer. advise the governor or mayor, as the case
may be, on all matters relative to
The appointment of the cooperatives officer is cooperatives development and viability-
optional for the provincial and city governments. enhancement which will improve the
 livelihood and quality of life of the (3) In addition to the foregoing duties and
inhabitants; and functions, the population officer shall:

(c) Exercise such other powers and perform such (i) Assist the governor or mayor, as
other duties and functions as may be prescribed by the case may be, in the
law or ordinance. implementation of the
Constitutional provisions relative
ARTICLE XVIII to population development and
The Population Officer the promotion of responsible
parenthood;
Section 488. Qualification, Powers and Duties. -
(ii) Establish and maintain an
(a) No person shall be appointed population officer updated data bank for program
unless he is a citizen of the Philippines, a resident of operations, development planning
the local government unit concerned, of good moral and an educational program to
character, a holder of a college degree with ensure the people's participation
specialized training in population development from in and understanding of population
a recognized college or university, and a first grade development;
civil service eligible or its equivalent. He must have
experience in the implementation of programs on (iii) Implement appropriate training
population development or responsible parenthood programs responsive to the
for at least five (5) years in the case of the provincial cultural heritage of the
or city population officer, and three (3) years in the inhabitants; and
case of the municipal population officer.
(c) Exercise such other powers and perform such
The appointment of a population officer shall be other duties and functions as may be prescribed by
optional in the local government unit: Provided, law or ordinance.
however, That provinces and cities which have
existing population offices shall continue to maintain ARTICLE XIX
such offices for a period of five (5) years from the The Veterinarian
date of effectivity of this Code, after which said
offices shall become optional. Section 489. Qualifications, Powers and Duties.

(b) The population officer shall take charge of the (a) No person shall be appointed veterinarian unless
office on population development and shall: he is a citizen of the Philippines, a resident of the
local government unit concerned, of good moral
(1) Formulate measures for the character, a licensed doctor of veterinary medicine.
consideration of the sanggunian and He must have practiced his profession for at least
provide technical assistance and support to three (3) years in the case of provincial or city
the governor or mayor, as the case may be, veterinarian and at least one (1) year in the case of
in carrying out measures to ensure the the municipal veterinarian.
delivery of basic services and provision of
adequate facilities relative to the The appointment of a veterinarian officer is
integration of the population development mandatory for the provincial and city governments.
principles and in providing access to said
services and facilities; (b) The veterinarian shall take charge of the office
for veterinary services and shall:
(2) Develop plans and strategies and upon
approval thereof by the governor or mayor, (1) Formulate measures for the
as the case may be, implement the same, consideration of the sanggunian, and
particularly those which have to do with the provide technical assistance and support to
integration of population development the governor or mayor, as the case may be,
principles and methods in programs and in carrying out measures to ensure the
projects which the governor or mayor is delivery of basic services and provision of
empowered to implement and which the adequate facilities pursuant to Section 17 of
sanggunian is empowered to provide for this Code;
under this Code;
 (2) Develop plans and strategies and upon ARTICLE XX
approval thereof by the governor or mayor, The General Services Officer
as the case may be, implement the same,
particularly those which have to do with the Section 490. Qualifications, Powers and Duties.
veterinary-related activities which the
governor or mayor is empowered to (a) No person shall be appointed general services
implement and which the sanggunian is officer unless he is a citizen of the Philippines, a
empowered to provide for under this Code; resident of the local government unit concerned, of
good moral character, a holder of a college degree
(3) In addition to the foregoing duties and on public administration, business administration
functions, the veterinarian shall: and management from a recognized college or
university, and a first grade civil service eligible or its
(i) Advise the governor or the equivalent. He must have acquired experience in
mayor, as the case may be, on all general services, including management of supply,
matters pertaining to the slaughter property, solid waste disposal, and general
of animals for human consumption sanitation, of at least five (5) years in the case of the
and the regulation of provincial or city general services officer, and at least
slaughterhouses; three (3) years in the case of the municipal general
services officer.
(ii) Regulate the keeping of
domestic animals; The appointment of a general services officer is
mandatory for the provincial and city governments,
(iii) Regulate and inspect poultry,
milk and dairy products for public (b) The general services officer shall take charge of
consumption; the office on general services and shall:

(iv) Enforce all laws and regulations (1) Formulate measures for the
for the prevention of cruelty to consideration of the sanggunian and
animals; and provide technical assistance and support to
the governor or mayor, as the case may be,
(v) Take the necessary measures to in carrying out measures to ensure the
eradicate, prevent or cure all forms delivery of basic services and provision of
of animal diseases; adequate facilities pursuant to Section 17 of
this Code and which require general
(4) Be in the frontline of veterinary related services expertise and technical support
activities, such as in the outbreak of highly- services;
contagious and deadly diseases, and in
situations resulting in the depletion of (2) Develop plans and strategies and upon
animals for work and human consumption, approval thereof by the governor or mayor,
particularly those arising from and in the as the case may be, implement the same,
aftermath of man-made and natural particularly those which have to do with the
calamities and disasters; general services supportive of the welfare
of the inhabitants which the governor or
(5) Recommend to the sanggunian and mayor is empowered to implement and
advise the governor or mayor, as the case which the sanggunian is empowered to
may be, on all other matters relative to provide for under this Code;
veterinary services which will increase the
number and improve the quality of (3) In addition to the foregoing duties and
livestock, poultry and other domestic functions, the general services officer shall:
animals used for work or human
consumption; and (i) Take custody of and be
accountable for all properties, real
(c) Exercise such other powers and perform such or personal, owned by the local
other duties and functions as may be prescribed by government unit and those
law or ordinance. granted to it in the form of
donation, reparation, assistance
and counterpart of joint projects;
 (ii) With the approval of the (5) Recommend to the sanggunian and
governor or mayor, as the case advise the governor or mayor, as the case
may be, assign building or land may be, on all matters relative to general
space to local officials or other services; and
public officials, who by law, are
entitled to such space; (c)Exercise such other powers and perform such
other duties and functions as may be prescribed by
(iii) Recommend to the governor or law or ordinance.
mayor, as the case may be, the
reasonable rental rates for local TITLE VI
government properties, whether LEAGUES OF LOCAL GOVERNMENT UNITS AND ELECTIVE
real or personal, which will be OFFICIALS
leased to public or private entities
by the local government; CHAPTER I
Leagues of Local Government Units
(iv) Recommend to the governor or
mayor, as the case may be, ARTICLE I
reasonable rental rates of private Liga ng Mga Barangay
properties which may be leased for
the official use of the local
Section 491. Purpose of Organization. - There shall be an
government unit;
organization of all barangays to be known as the liga ng mga
barangay for the primary purpose of determining the
(v) Maintain and supervise representation of the Liga in the sanggunians, and for
janitorial, security, government ventilating, articulating and crystallizing issues affecting
public buildings and other real barangay government administration and securing, through
property, whether owned or proper and legal means, solutions thereto.
leased by the local government
unit; Section 492. Representation, Chapters, National Liga. - Every
barangay shall be represented in said liga by the punong
(vi) Collate and disseminate barangay, or in his absence or incapacity, by a sanggunian
information regarding prices, member duly elected for the purpose among its members,
shipping and other costs of who shall attend all meetings or deliberations called by the
supplies and other items different chapters of the liga.
commonly used by the local
government unit;
The liga shall have chapters at the municipal, city, provincial
and metropolitan political subdivision levels.
(vii) Perform archival and record
management with respect to
The municipal and city chapters of the liga shall be composed
records of offices and departments
of the barangay representatives of municipal and city
of the local government unit; and
barangays respectively. The duly elected presidents of
component municipal and city chapters shall constitute the
(viii) Perform all other functions provincial chapter or the metropolitan political subdivision
pertaining to supply and property chapter. The duly elected presidents of highly-urbanized
management heretofore cities, provincial chapters, the Metropolitan Manila chapter
performed by the local and metropolitan political subdivision chapters shall
government treasurer; and enforce constitute the National Liga ng mga Barangay.
policies on records creation,
maintenance, and disposal;
Section 493. Organization. - The liga at the municipal, city,
provincial, metropolitan political subdivision, and national
(4) Be in the frontline of general services levels directly elect a president, a vice-president, and five (5)
related activities, such as the possible or members of the board of directors. The board shall appoint
imminent destruction or damage to its secretary and treasurer and create such other positions as
records, supplies, properties, and structures it may deem necessary for the management of the chapter. A
and the orderly and sanitary clearing up of secretary-general shall be elected from among the members
waste materials or debris, particularly of the national liga and shall be charged with the overall
during and in the aftermath of man-made operation of the liga on national level. The board shall
and natural calamities and disasters; coordinate the activities of the chapters of the liga.
Section 494. Ex-Officio Membership in Sanggunians. - The absence, by the vice-mayor or a sanggunian member duly
duly elected presidents of the liga at the municipal, city and elected for the purpose by the members, who shall attend all
provincial levels, including the component cities and meetings and participate in the deliberations of the league.
municipalities of Metropolitan Manila, shall serve as ex-
officio members of the sangguniang bayan, sangguniang Section 498. Powers, Functions and Duties of the League of
panlungsod, sangguniang panlalawigan, respectively. They Municipalities. - The league of municipalities shall:
shall serve as such only during their term of office as
presidents of the liga chapters, which in no case shall be (a) Assist the national government in the formulation
beyond the term of office of the sanggunian concerned. and implementation of the policies, programs and
projects affecting municipalities as a whole;
Section 495. Powers, Functions and Duties of the Liga. - The
liga shall: (b) Promote local autonomy at the municipal level;

(a) Give priority to programs designed for the total (c) Adopt measures for the promotion of the welfare
development of the barangays and in consonance of all municipalities and its officials and employees;
with the policies, programs and projects of the
national government; (d) Encourage people's participation in local
government administration in order to promote
(b) Assist in the education of barangay residents for united and concerted action for the attainment of
people's participation in local government country-wide development goals;
administration in order to promote united and
concerted action to achieve country-wide
(e) Supplement the efforts of the national
development goals;
government in creating opportunities for gainful
employment within the municipalities;
(c) Supplement the efforts of government in creating
gainful employment within the barangay;
(f) Give priority to programs designed for the total
development of the municipalities in consonance
(d) Adopt measures to promote the welfare of with the policies, programs and projects of the
barangay officials; national government;

(e) Serve as a forum of the barangays in order to (g) Serve as a forum for crystallizing and expressing
forge linkages with government and non- ideas, seeking the necessary assistance of the
governmental organizations and thereby promote national government, and providing the private
the social, economic and political well-being of the sector avenues for cooperation in the promotion of
barangays; and the welfare of the municipalities; and

(f) Exercise such other powers and perform such (h) Exercise such other powers and perform such
other duties and functions which will bring about other duties and functions as the league may
stronger ties between barangays and promote the prescribe for the welfare of the municipalities.
welfare of the barangay inhabitants.
ARTICLE III
ARTICLE II League of Cities
League of Municipalities
Section 499. Purpose of Organization. - There shall be an
Section 496. Purpose of Organization. - There shall be an organization of all cities to be known as the League of Cities
organization of all municipalities to be known as league of for the primary purpose of ventilating, articulating and
municipalities for the primary purpose of ventilating, crystallizing issues affecting city government administration,
articulating and crystallizing issues affecting municipal and securing, through proper and legal means, solutions
government administration, and securing, through proper thereto.
and legal means, solutions thereto.
The league may form chapters at the provincial level for the
The league shall form provincial chapters composed of the component cities of a province. Highly-urbanized cities may
league presidents for all component municipalities of the also form a chapter of the League. The National League shall
province. be composed of the presidents of the league of highly-
urbanized cities and the presidents of the provincial chapters
Section 497. Representation. - Every municipality shall be of the league of component cities.
represented in the league by the municipal mayor of in his
Section 500. Representation. - Every city shall be represented absence, by the provincial vice-governor or a sanggunian
in the league by the city mayor or in his absence, by the city member duly elected for the purpose by the members, who
vice-mayor or a sanggunian member duly elected for the shall attend all meetings and participate in the deliberations
purpose by the members, who shall attend all meetings and of the league.
participate in the deliberations of the league.
Section 504. Powers, Functions and Duties of the League of
Section 501. Powers, Functions and Duties of the League of Provinces. - The league of provinces shall:
City. - The league of cities shall:
(a) Assist the national government in the formulation
(a) Assist the national government in the formulation and implementation of the policies, programs and
and implementation of the policies, programs and projects affecting provinces as a whole;
projects affecting cities as a whole;
(b) Promote local autonomy at the provincial level;
(b) Promote local autonomy at the city level;
(c) Adopt measures for the promotion of the welfare
(c) Adopt measures for the promotion of the welfare of all provinces and its officials and employees;
of all cities and its officials and employees;
(d) Encourage people's participation in local
(d) Encourage people's participation in local government administration in order to promote
government administration in order to promote united and concerted action for the attainment of
united and concerted action for the attainment of countrywide employment within the province;
country-wide development goals;
(e) Supplement the efforts of the national
(e) Supplement the efforts of the national government in creating opportunities for gainful
government in creating opportunities for gainful employment within the province;
employment the cities;
(f) Give priority to programs designed for the total
(f) Give priority to programs designed for the total development of the provinces in consonance with
development of cities in consonance with the the policies, programs and projects of the national
policies, programs and projects of the national government;
government;
(g) Serve as a forum for crystallizing and expressing
(g) Serve as a forum for crystallizing and expressing ideas, seeking the necessary assistance of the
ideas, seeking the necessary assistance of the national government and providing the private
national government and providing the private sector avenues for cooperation in the promotion of
sector avenues for cooperation in the promotion of the welfare of the provinces; and
the welfare of the cities; and
(h) Exercise such other powers and perform such
(h) Exercise such other powers and perform such other duties and functions as the league may
other duties and functions as the league may prescribe for the welfare of the provinces and
prescribe for the welfare of the cities. metropolitan political subdivisions.

ARTICLE IV ARTICLE V
League of Provinces Provisions Common to All Leagues

Section 502. Purpose of Organization. - There shall be an Section 505. Funding.

organization of all provinces to be known as the League of
Provinces for the primary purpose of ventilating, articulating (a) All leagues shall derive its funds from
and crystallizing issues affecting provincial and metropolitan contributions of member local government units and
political subdivision government administration, and from fund-raising projects and activities without the
securing, through proper and legal means, solutions thereto. necessity of securing permits therefor: Provided,
For this purpose, the Metropolitan Manila Area and any That the proceeds from said fund-raising projects
metropolitan political subdivision shall be considered as and activities shall be used primarily to fund the
separate provincial units of the league. projects for which the said proceeds have been
raised, subject to the pertinent provision of this
Section 503. Representation. - Every province shall be Code and the pertinent provisions of the Omnibus
represented in the league by the provincial governor or in his Election Code.
 (b) All funds of leagues shall be deposited as trust cities and municipalities, which in no case shall be
funds with its treasurer and shall be disbursed in beyond the term of office of the sanggunian
accordance with the board of director's resolutions, panlalawigan concerned.
subject to pertinent accounting and auditing rules
and regulations: Provided, That the treasurer shall Section 509. Constitution and By-laws. - The leagues or
be bonded in an amount to be determined by the federations shall adopt a Constitution and by-laws which shall
board of directors. The funds of a chapter shall be govern their internal organization and operation: Provided,
deposited as chapter funds and funds of the national That said Constitution and by-laws shall always conform to
league shall be deposited as national funds. the provision of the Constitution and existing laws.

Section 506. Organizational Structure. - To ensure the Section 510. Funding. - The leagues and federations may
effective and efficient administration, the leagues for derive funds from contributions of individual league or
municipalities, cities and provinces shall elect chapter-level federation members or from fund-raising projects or
and national-level boards of directors and a set of officers activities. The local government unit concerned may
headed by the president. A secretary-general shall be chosen appropriate funds to support the leagues or federation
from among the national league members to manage the day organized pursuant to this Section, subject to the availability
to day operation and activities of the national league. The of funds.
board of directors on the chapter or national level may create
such other positions as may be deemed necessary for the BOOK IV
management of the chapters and of the national league. The MISCELLANEOUS AND FINAL PROVISIONS
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.
TITLE I
Section 507. Constitution and By-laws of the Liga and the
PENAL PROVISIONS
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 Section 511. Posting and Publication of Ordinances with Penal
constitution and by-laws which are hereby made suppletory Sanctions.
to the provision of this Chapter: Provided, That said
Constitution and By-laws shall always conform to the (a) Ordinances with penal sanctions shall be posted
provisions of the Constitution and existing laws. 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.
CHAPTER II
Such ordinances shall also be published in a
Leagues and Federation of Local Elective Officials
newspaper of general circulation, where available,
within the territorial jurisdiction of the local
Section 508. Organization.
government unit concerned, except in the case of
barangay ordinances. Unless otherwise provided
(a) Vice-governors, vice-mayors, sanggunian therein, said ordinances shall take effect on the day
members of barangays, municipalities, component following its publication, or at the end of the period
cities, highly-urbanized cities and provinces, and of posting, whichever occurs later.
other elective local officials of local government
units, including those of the Metropolitan Manila
(b) Any public officer or employee who violates an
Area and any metropolitan political subdivisions,
ordinance may be meted administrative disciplinary
may form their respective leagues or federation,
action, without prejudice to the filing of the
subject to applicable provisions of this Title and
appropriate civil or criminal action.
pertinent provisions of this Code;
(c) The secretary to the sanggunian concerned shall
(b) Sanggunian members of component cities and
transmit official copies of such ordinances to the
municipalities shall form a provincial federation and
chief executive officer of the Office Gazette within
elect a board of directors and a set of officers
seven (7) days following the approval of the said
headed by the president. The duly elected president
ordinance for publication purposes. The Official
of the provincial federation of sanggunian members
Gazette may publish ordinances with penal sanctions
of component cities and municipalities shall be an
for archival and reference purposes.
ex-officio member of the sangguniang panlalawigan
concerned and shall serve as such only during his
Section 512. Withholding of Benefits Accorded to Barangay
term of office as president of the provincial
federation of sanggunian members of component Officials. - Willful and malicious withholding of any of the
benefits accorded to barangay officials under Section 393 penalty, or both, shall be imposed at the discretion of the
hereof shall be punished with suspension or dismissal from court. The sangguniang barangay may prescribe a fine of not
office of the official or employee responsible therefor. less than One hundred pesos (P100.00) nor more than One
thousand pesos (P1,000.00).
Section 513. Failure to Post and Publish the Itemized Monthly
Collections and Disbursements. - Failure by the local treasurer Section 517. Omission of Property from Assessment or Tax
of the local chief accountant to post the itemized monthly Rolls by Officers and Other Acts. - Any officer charged with
collections and disbursements of the local government unit the duty of assessing real property who willfully fails to
concerned within ten (10) days following the end of every assess, or who intentionally omits from the assessment or tax
month and for at least two (2) consecutive weeks at roll any real property which he knows to be taxable, or who
prominent places in the main office building of the local willfully or negligently under assesses any real property, or
government unit concerned, its plaza and main street, and to who intentionally violates or fails to perform any duty
publish said itemization in a newspaper of general circulation, imposed upon him by law relating to the assessment of
where available, in the territorial jurisdiction of such unit, taxable real property shall, upon conviction, be punished by a
shall be punished by a fine not exceeding Five hundred pesos fine of not less than One thousand pesos (P1,000.00) nor
(P500.00) or by imprisonment not exceeding one (1) month, more than Five thousand pesos (P5,000.00), or by
or both such fine and imprisonment, at the discretion of the imprisonment of not less than one (1) month nor more than
court. six (6) months, 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 The same penalty shall be imposed upon any officer charged
any person or persons dealing with him who violate the with the duty of collecting the tax due on real property who
prohibitions provided in Section 89 of Book I hereof, shall be willfully or negligently fails to collect the tax and institute the
punished with imprisonment for six months and one day to necessary proceedings for the collection of the same.
six years, or a fine of not less than Three thousand pesos
(P3,000.00) nor more than Ten thousand pesos (P10,000.00), Any other officer required by this Code to perform acts
or both such imprisonment and fine at the discretion of the relating to the administration of the real property tax or to
court. assist the assessor or treasurer in such administration, who
willfully fails to discharge such duties shall, upon conviction
Section 515. Refusal or Failure of Any Party or Witness to be punished by a fine of not less than Five hundred pesos
Appear before the Lupon or Pangkat. - Refusal or willful (P500.00) nor more than Five thousand pesos (P5,000.00) or
failure of any party or witness to appear before the lupon or imprisonment of not less than one (1) month nor more than
pangkat in compliance with a summons issued pursuant to six (6) months, or both such fine and imprisonment, at the
the provisions on the Katarungang Pambarangay under discretion of the court.
Chapter 7, Title III of this Code may be punished by the city or
municipal court as for indirect contempt of court upon Section 518. Government Agents Delaying Assessment of Real
application filed therewith by the lupon chairman, the Property and Assessment Appeals. - Any government official
pangkat chairman, or by any of the contending parties. Such who intentionally and deliberately delays the assessment of
refusal or willful failure to appear shall be reflected in the real property or the filing of any appeal against its assessment
records of the lupon secretary or in the minutes of the shall, upon conviction, be punished by a fine of not less than
pangkat secretary and shall bar the complainant who fails to Five hundred pesos (P500.00) nor more than Five thousand
appear, from seeking judicial recourse for the same cause of pesos (P5,000.00), or by imprisonment of not less than one
action, and the respondent who refuses to appear, from filing (1) month nor more than six (6) months, or both such fine
any counterclaim arising out of, or necessarily connected with and imprisonment, at the discretion of the court.
the complaint.
Section 519. Failure to Dispose of Delinquent Real Property at
A pangkat member who serves as such shall be entitled to an Public Auction. - The local treasurer concerned who fails to
honorarium, the amount of which is to be determined by the dispose of delinquent real property at public auction in
sanggunian concerned subject to the provisions in this Code compliance with the pertinent provisions of this Code, and
cited above. any other local government official whose acts hinder the
prompt disposition of delinquent real property at public
Section 516. Penalties for Violation of Tax Ordinances. - The auction shall, upon conviction, be subject to a fine of not less
sanggunian of a local government unit is authorized to than One thousand pesos (P1,000.00) nor more than Five
prescribe fines or other penalties for violation of tax thousand pesos (P5,000.00), or imprisonment of not less than
ordinances but in no case shall such fines be less than One one (1) month nor more than six (6) months, or both such
thousand pesos (P1,000.00) nor more than Five thousand fine and imprisonment, at the discretion of the court.
pesos (P5,000.00), nor shall imprisonment be less than one
(1) month nor more than six (6) months. Such fine or other
Section 520. Prohibited Acts Related to the Award of Section 524. Inventory of Infrastructure and Other
Contracts Under the Provisions on Credit Financing. - It shall Community Facilities.
be unlawful for any public official or employee in the
provincial, city, or municipal government, or their relatives (a) Each local government unit shall conduct a
within the fourth civil degree of consanguinity or affinity, to periodic inventory of infrastructure and other
enter into or have any pecuniary interest in any contract for community facilities and undertake the
the construction, acquisition, operation or maintenance of maintenance, repair, improvement, or
any project awarded pursuant to the provisions of Title Four reconstruction of these facilities through a closer
in Book II hereof, or for the procurement of any supplies, cooperation among the various agencies of the
materials, or equipment of any kind to be used in the said national government operating within the province,
project. Any person convicted for violation of the provisions city, or municipality concerned.
of said Title shall be removed from office and shall be
punishable by imprisonment of not less than one (1) month, (b) No infrastructure or community project within
nor more than two (2) years, at the discretion of the court, the territorial jurisdiction of any local government
without prejudice to prosecution under other laws. unit shall be undertaken without informing the local
chief executive and the sanggunian concerned.
TITLE II
PROVISIONS FOR IMPLEMENTATION Section 525. Records and Properties. - All records, equipment,
buildings, facilities, and other properties of any office or body
Section 521. Mandatory Review Every Five Years. - Congress of a local government unit abolished or reorganized under
shall undertake a mandatory review of this Code at least once this Code shall be transferred to the office or body to which
every five (5) years and as often as it may deem necessary, its powers, functions, and responsibilities are substantially
with the primary objective of providing a more responsive devolved.
and accountable local government structure.
TITLE III
Section 522. Insurance Coverage. - The Government Service TRANSITORY PROVISIONS
Insurance System (GSIS) shall establish and administer an
appropriate system under which the punong barangay, the Section 526. Application of this Code to Local Government
members of the sangguniang barangay, the barangay Units in the Autonomous Regions. - This Code shall apply to all
secretary, the barangay treasurer, and the members of the provinces, cities, municipalities and barangays in the
barangay tanod shall enjoy insurance coverage as provided in autonomous regions until such time as the regional
this Code and other pertinent laws. For this purpose, the GSIS government concerned shall have enacted its own local
is hereby directed to undertake an actuarial study, issue rules government code.
and regulations, determine the premiums payable, and
recommend to Congress the amount of appropriations
Section 527. Prior Approval or Clearance on Regular and
needed to support the system. The amount needed for the
Recurring Transactions. - Six (6) months after effectivity of
implementation of the said insurance shall be included in the
this Code, prior approval of or clearance from national
annual General Appropriations Act.
agencies or offices shall no longer be required for regular and
recurring transactions and activities of local government
Section 523. Personnel Retirement and/or Benefits. - An units.
official or employee of the national government or local
government unit separated from the service as a result of
Section 528. Deconcentration of Requisite Authority and
reorganization effected under this Code shall, if entitled
Power. - The national government shall, six (6) months after
under the laws then in force, receive the retirement and
the effectivity of this Code, effect the deconcentration of
other benefits accruing thereunder: Provided, however, That
requisite authority and power to the appropriate regional
such benefits shall be given funding priority by the
offices or field offices of national agencies or offices whose
Department of Budget and Management in the case of
major functions are not devolved to local government units.
national officials and employees, and the local government
unit concerned in the case of local officials and employees.
Section 529. Tax Ordinances or Revenue Measures. - All
existing tax ordinances or revenue measures of local
Where the employee concerned is not eligible for retirement,
government units shall continue to be in force and effect
he shall be entitled to a gratuity from the national
after the effectivity of this Code unless amended by the
government or the local government unit concerned, as the
sanggunian concerned, or inconsistent with, or in violation of,
case may be, equivalent to an amount not lower than one (1)
the provisions of this Code.
month salary for every year of service over and above the
monetary value of the leave credits said employee is entitled
Section 530. Local Water Districts. - All powers, functions,
to receive pursuant to existing laws.
and attributes granted by Presidential Decree Numbered One
hundred ninety-eight (P.D. No. 198), otherwise known as (2) Debts due GOCCs. - The national
"The Provincial Water Utility Act of 1973," to the Local Water government may settle such obligations at
Utilities Administration (LWUA) may be devolved in toto to discounted rate through offsetting, only to
the existing local water districts should they opt or choose to the extent of the obligations of local
exercise, in writing, such powers, functions and attributes: governments against the outstanding
Provided, That all obligations of the local government unit advances made by the National Treasury in
concerned to the LWUA shall first be settled prior to said behalf of the government-owned and
devolution. controlled corporations concerned.

Section 531. Debt Relief for Local Government Units. - (3) Debts Due Private Utilities. - The
national government may settle these
(a) Unremitted national collections and statutory obligations at a discounted rate by
contributions. - All debts owed by local government offsetting against the outstanding
units to the national government in unremitted obligations of such private utilities to
contributions to the Integrated National Police Fund, government-owned corporation. GOCCs
the Special Education Fund, and other statutory may in turn offset these obligations against
contributions as well as in unremitted national the outstanding advances made by the
government shares of taxes, charges, and fees National Treasury in their behalf.
collected by the local government units, are hereby
written off in full. In the case of obligation owed by local
government units to private utilities which
(b) Program loans. - are not indebted to any GOCC or national
government agency, the national
(1) Program loans secured by local government may instead buy the
government units which were relent to obligations of the local government units
private persons, natural or juridical, shall from the private utilities at a discounted
likewise be written off from the books of rate, upon concurrence by the private
the local government units concerned: utilities concerned.
Provided, however, That the national
government agency tasked with the (d) Limitations. - Obligations to the Home
implementation of these programs shall Development and Mutual Fund (Pag-ibig), Medicare,
continue to collect from the debtors and those pertaining to premium contributions and
belonging to the private sector concerned. amortization payments of salary and policy loans to
the Government Service Insurance System are
(2) Program loans granted to local excluded from the coverage of this Section.
government units by national government
agencies and which were utilized by the (e) Recovery schemes for the national government. -
local units for community development, Local government units shall pay back the national
livelihood, and other small-scale projects government whatever amounts were advanced or
are hereby written off in full. offset by the national government to settle their
obligations to GFIs, GOCCs, and private utilities. The
(c) Settlement of debts due to government financing national government shall not charge interest or
institutions (GFIs), government-owned and penalties on the outstanding balance owed by the
controlled corporations (GOCCs), and private local government units.
utilities. The national government shall assume all
debts incurred or contracted by local government These outstanding obligations shall be restructured
units from GFIs, GOCCs, and private utilities that are and an amortization schedule prepared, based on
outstanding as of December 31, 1988, in accordance the capability of the local government unit to pay,
with the following schemes: taking into consideration the amount owed to the
national government.
(1) Debts due GFIs. - The national
government may buy outstanding The national government is hereby authorized to
obligations incurred by local government deduct from the quarterly share of each local
units from government financing government unit in the internal revenue collections
institutions at a discounted rate. an amount to be determined on the basis of the
amortization schedule of the local unit concerned:
Provided, That such amount shall not exceed five
 percent (5%) of the monthly internal revenue correspondingly to coincide with the term of office
allotment of the local government unit concerned. of those elected under this Code.

As incentive to debtor-local government units to Section 533. Formulation of Implementing Rules and
increase the efficiency of their fiscal administration, Regulations. -
the national government shall write off the debt of
the local government unit concerned at the rate of (a) Within one (1) month after the approval of this
five percent (5%) for every one percent (1%) Code, the President shall convene the Oversight shall
increase in revenues generated by such local formulate and issue the appropriate rules and
government unit over that of the preceding year. For regulations necessary for the efficient and effective
this purpose, the annual increase in local revenue implementation of any and all provisions of this
collection shall be computed starting from the year Code, thereby ensuring compliance with the
1988. principles of local autonomy as defined under the
Constitution.
(f) Appropriations. - Such amount as may be
necessary to implement the provisions of this (b) The Committee shall be composed of the
Section shall be included in the annual General following:
Appropriations Act.
(1) The Executive Secretary, who shall be
Section 532. Elections for the Sangguniang Kabataan. - the Chairman;

(a) The first elections for the sangguniang kabataan (2) Three (3) members of the Senate to be
to be conducted under this Code shall be held thirty appointed by the President of the Senate,
(30) days after the next local elections: Provided, to include the Chairman of the Committee
That, the regular elections for the sangguniang on Local Government;
kabataan shall be held one hundred twenty (120)
days after the barangay elections thereafter. (3) Three (3) members of the House of
Representatives to be appointed by the
(b) The amount pertaining to the ten percent (10%) Speaker, to include the Chairman of the
allocation for the kabataang barangay as provided Committee on Local Government;
for in Section 103 of Batas Pambansa Blg. 337 is
hereby reappropriated for the purpose of funding (4) The Cabinet, represented by the
the first elections mentioned above. The balance of following:
said funds, if there by any after the said elections,
shall be administered by the Presidential Council for
(i) Secretary of the Interior and
Youth Affairs for the purpose of training the newly
Local Government;
elected sangguniang kabataan officials in the
discharge of their functions.
(ii) Secretary of Finance;
(c) For the regular elections of the sangguniang
(iii) Secretary of Budget and
kabataan, funds shall be taken from the ten percent
(10%) of the barangay funds reserved for the Management; and
sangguniang kabataan, as provided for in Section
328 of this Code. (5) One (1) representative from each of the
following:
(d) All seats reserved for the pederasyon ng mga
sangguniang kabataan in the different sanggunians (i) The League of Provinces;
shall be deemed vacant until such time that the
sangguniang kabataan chairmen shall have been (ii) The League of Cities;
elected and the respective pederasyon presidents
have been selected: Provided, That, elections for the (iii) The League of Municipalities;
kabataang barangay conducted under Batas and
Pambansa Blg. 337 at any time between January 1,
1988 and January 1, 1992 shall be considered as the (iv) The Liga ng mga Barangay.
first elections provided for in this Code. The term of
office of the kabataang barangay officials elected (c) The Committee shall submit its report and
within the said period shall be extended recommendation to the President within two (2)
 months after its organization. If the President fails to hereby repealed and rendered of no force and
act within thirty (30) days from receipt thereof, the effect.
recommendation of the Oversight Committee shall
be deemed approved. Thereafter, the Committee (d) Presidential Decree No. 1594 is hereby repealed
shall supervise the transfer of such powers and insofar as it governs locally-funded projects.
functions mandated under this Code to the local
government units, together with the corresponding (e) The following provisions are hereby repealed or
personnel, properties, assets and liabilities of the amended insofar as they are inconsistent with the
offices or agencies concerned, with the least provisions of this Code: Sections 2, 16 and 29 of
possible disruptions to existing programs and Presidential Decree No. 704; Section 12 of
projects. The Committee shall likewise recommend Presidential Decree No. 87, as amended; Section 52,
the corresponding appropriations necessary to effect 53, 66, 67, 68, 69, 70, 71, 72, 73, and 74 of
the said transfer. Presidential Decree No. 463, as amended; and
Section 16 of Presidential Decree No. 972, as
For this purpose, the services of a technical staff amended, and
shall be enlisted from among the qualified
employees of Congress, the government offices, and (f) All general and special laws, acts, city charters,
the leagues constituting the Committee. decrees, executive orders, proclamations and
administrative regulations, or part or parts thereof
(d) The funding requirements and the secretariat of which are inconsistent with any of the provisions of
the Committee shall be provided by the Office of the this Code are hereby repealed or modified
Executive Secretary. accordingly.

(e) The sum of Five million pesos (P5,000,000), which Section 535. Separability Clause. - If, for any reason or
shall be charged against the Contingent Fund, is reasons, any part or provision of this Code shall be held to be
hereby allotted to the Committee to fund the unconstitutional or invalid, other parts or provisions hereof
undertaking of an information campaign on this which are not affected thereby shall continue to be in full
Code. The Committee shall formulate the guidelines force and effect.
governing the conduct of said campaign, and shall
determine the national agencies or offices to be Section 536. Effectivity Clause. - This Code shall take effect on
involved for this purpose. January first, nineteen hundred ninety-two, unless otherwise
provided herein, after its complete publication in at least one
TITLE IV (1) newspaper of general circulation.
FINAL PROVISIONS
Approved: October 10, 1991
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; 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